BHP.US CEO: Copper demand surge will require thousands of billions of dollars of investment, or drive industry M&A
1min read Intelligence Finance learned that BHP Group (BHP.US) CEO Mike Henry said that the surge in copper demand over the next 10 years would require $250bn of investment, which would help drive further consolidation in the industry. Henry said in an interview: "As you go through time, the companies that have a strong balance sheet like BHP and deep technical capabilities will grow in size. These companies will be the winners of the next few decades. "
Henry pointed out that copper demand would grow by 70% to 100% by 2050, which is a key factor in the energy transition. In July, BHP suddenly acquired Filo Corp. and teamed up with Lundin Mining Corp. to buy copper assets in South America for $3bn.
BHP had abandoned its $49bn bid for Anglo American in May, focusing on acquiring Anglo's copper mines. Once a company makes a "no offer" statement, it must abandon its bid for six months under the Takeover Panel's rules. Henry declined to comment on whether BHP would make a new offer for Anglo.