BHP, the world’s leading company, recently reported its half-year results, setting records and marking a historic turning point in the industry. It’s the first time in the industry that copper has surpassed iron ore as its primary revenue source. This shift marks a major change in the economy, as red metal has become the backbone of next-generation technology.
The primary driver of this surge is the rapid growth of Artificial Intelligence. AI data centres require significant electricity, necessitating a massive expansion of power grids and cooling systems, all of which rely heavily on copper. Amid the ongoing push for clean energy and electric vehicles, copper prices jumped 32%. By which BHP’s underlying profit climb 22% to $6.20 billion, comfortably beating expectations.
While iron ore has been BHP’s “cash cow,” its dominance is fading as prices hit a seven-month low and production costs rise. Copper now costs for 51% of the group’s operating earnings. Investors celebrate the announcement, sending BHP’s shares to an all-time high of 7% following the announcement. Stakeholders were also rewarded with a surprise dividend of 73 cents per share, significantly higher than market expectations, complementing Global Retail Tops $30T in 2025 Despite AI Pressures.
Going forward, BHP is doubling down on its copper strategy. CEO Mike Henry said the company didn’t feel pressured to acquire competitors because it has strong organic growth options. This includes a massive $18 billion investment plan in Argentina to develop new copper and gold projects. By aligning its business with the AI boom and the green energy transition, BHP has successfully transformed itself from a traditional iron miner into an essential supplier for the high-tech future.
