Fortescue's Strategic Copper Push in Peru: Assessing the Potential of New Acquisitions and Partnerships

Fortescue Ltd. has made a bold pivot into the copper market, a move that could redefine its role in the global energy transition. By acquiring Alta Copper and advancing the Cañariaco Copper Project in northern Peru, the Australian mining giant is positioning itself to capitalize on surging demand for copper driven by electrification and renewable energy infrastructure. This analysis evaluates Fortescue's strategic entry into the copper sector, its recent acquisitions, and the long-term implications for its growth trajectory.

Acquiring Alta Copper: A Strategic Bet on Peru's Copper Potential

In 2025, Fortescue completed its acquisition of the remaining 64% stake in Alta Copper for C$1.40 per share, valuing the Toronto-listed developer at approximately C$139 million. This all-cash transaction, structured as a court-approved plan of arrangement, grants Fortescue full ownership of the Cañariaco Copper Project, one of the largest undeveloped copper deposits in the Americas. The project contains 1.1 billion tonnes of measured and indicated resources at 0.42% copper equivalent, with a preliminary economic assessment (PEA) projecting a post-tax net present value (NPV) of $1.01 billion at a copper price of $3.50 per pound.

The acquisition aligns with Fortescue's broader pivot toward copper, a metal critical to decarbonization efforts. As global demand for copper is projected to exceed 25 million tons by 2025-driven by electric vehicles, solar panels, and wind turbines-Fortescue's entry into Peru's copper market positions it to benefit from a structural supply deficit. Peru, the world's second-largest copper producer, is expected to supply over 39% of global mined copper alongside Chile by 2025, making the Cañariaco Project a strategic asset.

Financing and Development of the Cañariaco Project

Fortescue has already demonstrated its commitment to advancing the Cañariaco Project. In May 2025, its subsidiary Nascent Exploration participated in a non-brokered private placement, raising Cdn$1.5 million to fund working capital and exploration activities. This follows Fortescue's earlier pre-emptive investment in 2023 to maintain its stake in Alta Copper according to company reports. The company plans to conduct additional drilling and community engagement to align the project with Australian reporting standards within three years. A feasibility study is slated for 2027, with production potentially commencing in the late 2020s.

The project's infrastructure advantages-proximity to the national power grid, low strip ratios, and existing environmental permits-enhance its economic viability. Moreover, the Cañariaco Project's location in a mining-friendly region of Peru, combined with Fortescue's expertise in Latin American operations, reduces development risks.

Broader Copper Strategy: Partnerships and Innovation

Beyond Peru, Fortescue is diversifying its copper portfolio through partnerships. A notable example is its collaboration with Strategic Energy Resources (SER) on the Canobie Project in northwest Queensland. Fortescue committed $3 million to fund a 2,500-meter diamond drilling program and advanced geophysical surveys, including magnetotelluric (MT) and gravity techniques, to identify iron-oxide copper-gold (IOCG) mineralization. Under the farm-in agreement, Fortescue can earn up to 80% of the project by investing $8 million over six years. The Canobie Project, located near the Gidyea Suture Zone-a region associated with major copper-gold deposits-highlights Fortescue's focus on high-potential exploration targets.

Fortescue's copper strategy is also intertwined with its decarbonization goals. The company has partnered with green technology firms like BYD, LONGi, and Envision Energy to electrify its mining fleet and develop renewable energy projects. Additionally, its acquisition of Nabrawind, a Spanish wind technology firm, underscores its commitment to reducing emissions in the Pilbara region. These initiatives align with Fortescue's Real Zero emissions target by 2030 and position it as a leader in sustainable resource extraction.

Market Positioning and Competitive Landscape

Peru's copper market is highly competitive, dominated by multinationals like BHP, Freeport-McMoRan, and Glencore. However, Fortescue's entry through the Cañariaco Project offers a unique advantage: a large, undeveloped asset with strong economic potential. The project's NPV of $1.01 billion and 16.3% internal rate of return (IRR) at $3.50 per pound copper make it one of the most attractive copper projects in the Americas.

Globally, copper demand is expected to outstrip supply, with Peru and Chile accounting for over 39% of production by 2025. Fortescue's investments in Peru and Queensland position it to benefit from this imbalance while leveraging its expertise in green energy and ESG-aligned operations. The company's focus on innovation-such as machine learning models for exploration and hydrogen-based direct reduction technology for green iron production-further strengthens its competitive edge.

Long-Term Implications for Fortescue

Fortescue's copper strategy is not just about securing supply; it's about redefining its role in the energy transition. By acquiring Alta Copper and advancing the Cañariaco Project, the company is diversifying its revenue streams beyond iron ore and aligning with the decarbonization megatrend. The project's potential to produce 173 million pounds of copper annually over 28 years could significantly boost Fortescue's earnings and market valuation.

Moreover, Fortescue's partnerships with green technology firms and renewable energy projects highlight a long-term vision of integrating copper production with renewable energy infrastructure. This synergy between resource extraction and decarbonization could create a flywheel effect, where copper demand from electrification drives further investment in green technologies.

Conclusion

Fortescue's strategic push into the copper market, anchored by the Cañariaco Project and partnerships like the Canobie venture, positions it to capitalize on the energy transition's demand surge. With robust resource estimates, favorable infrastructure, and a clear alignment with global decarbonization goals, the company is well-positioned to become a major player in the copper sector. As the world races to electrify its economy, Fortescue's copper assets could prove to be a cornerstone of its long-term growth.