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Copper surges towards record highs amid optimistic demand outlook – by Tina Teng (Euro News – May 15, 2024)

https://www.euronews.com/

Renewable energy, electric cars, and artificial intelligence (AI) are bolstering the demand outlook for copper, leading to a surge in the price of the industrial metal towards a new record high.

Copper prices have been soaring since the beginning of this year, rising by 29% year-to-date. Copper futures at COMEX traded at $5 per pound as of 15 May, marking the highest level since March 2022 when the base metal’s price reached an all-time high.

BHP’s takeover offer to Anglo American has brought attention to the prosperous copper mine sector. The transition towards green energy, the rise of electric cars, and the AI boom have all contributed to a surge in demand for copper. However, underinvestment in base metal mining could exacerbate the issue of undersupply in the coming years.

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BHP CEO Mike Henry says mining company will remain disciplined as it chases Anglo American acquisition – by Niall McGee (Globe and Mail – May 15, 2024)

https://www.theglobeandmail.com/

The Canadian head of BHP Group Ltd. says the world’s biggest mining company will remain disciplined as it chases an acquisition of struggling competitor Anglo American PLC, as concerns arise about the complexity and timelines around its US$43-billion takeover offer.

Speaking at a mining conference in Miami, BHP chief executive Mike Henry said that his company’s twice-rejected proposal remains “quite compelling,” and he signalled the Australian miner won’t overpay in its efforts to win over Anglo’s board. “We have a very, very hard-won reputation for discipline when it comes to capital allocation and we do not take that lightly,” he said.

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Anglo goes for bold breakup plan in move to fend off BHP – by Thomas Biesheuvel and William Clowes (Bloomberg News – May 14, 2024)

https://www.bnnbloomberg.ca/

Anglo American Plc will exit diamond, platinum and coal mining in a massive restructuring designed to fend off a £34 billion (US$43 billion) bid from rival BHP Group and turn itself into a copper giant.

Anglo’s hand was forced by BHP’s approach — which it has twice rejected — but the move also responds to pressure from shareholders to shed less profitable businesses and focus on the copper assets that are the envy of the industry. It leaves a much simpler company — and a potentially more attractive one to suitors.

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Anglo American rejects BHP’s new takeover offer, potentially ending one of industry’s biggest merger efforts – by Eric Reguly (Globe and Mail – May 14, 2024)

https://www.theglobeandmail.com/

BHP Group’s effort to become the world’s biggest copper miner ran into another roadblock after smaller rival Anglo American rejected BHP’s second takeover proposal. BHP on Monday said its new proposal represented a 15-per-cent increase to the opening share exchange offer. If the improved offer had been accepted, Anglo shareholders’ ownership of the enlarged group would have gone to 16.6 per cent from 14.8 per cent.

“BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders,” Mike Henry, the Canadian chief executive officer of BHP, said in a statement. “We are disappointed that second proposal has been rejected.”

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Indigenous group to take fight against Arizona copper mine to Supreme Court – by Clark Mindock (Reuters – May 14, 2024)

https://www.reuters.com/

May 14 (Reuters) – A Native American group said on Tuesday it will take its fight against Rio Tinto’s proposed Arizona copper mine to the U.S. Supreme Court, after a federal appeals court refused to reconsider whether the U.S. government may have improperly transferred land to the developer.

The group said they would ask the high court to weigh in after the San Francisco-based 9th U.S. Circuit Court of Appeals rejected a longshot bid to have the full 29-judge court reconsider earlier decisions not to block a land grant for the project. The court did not provide an explanation for its decision.

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Osisko Metals’ update reveals 3.2B lb red metal asset at Copper Mountain – by Staff (Northern Miner – May 6, 2024)

https://www.northernminer.com/

A resource update for Osisko Metals‘ (TSXV: OM; US-OTC: OMZNE) Copper Mountain deposit in Quebec increases the copper-equivalent metal content by 30% over the previous estimate, making it the largest undeveloped copper asset in eastern North America, the company says.

The update puts the deposit at 495 million indicated tonnes grading 0.30% copper, 0.016% molybdenum, and 1.75 grams silver per tonne (0.37% copper equivalent), Osisko said in a news release Monday. That resource contains 3.2 billion lb. copper, 180 million lb. molybdenum, and 27.9 million oz. silver.

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José Raúl Mulino’s presidential win in Panama boosts First Quantum’s Cobre Panama prospects – by Niall McGee (Globe and Mail – May 7, 2024)

https://www.theglobeandmail.com/

The election of a pro-business president in Panama is raising hopes that Canadian miner First Quantum Minerals Ltd.’s pained prospects in the country might improve. First Quantum’s Cobre Panama mine was ordered to close late last year by outgoing president Laurentino Cortizo after the country’s Supreme Court ruled that its mining contract was unconstitutional. Mr. Cortizo’s term ends on June 30.

The winner of Sunday’s election was José Raúl Mulino. His campaign focused heavily on various initiatives aimed at boosting the economy. He became a candidate late in the campaign when former Panamanian president Ricardo Martinelli was barred from running after being convicted of money laundering.

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South African Unions Urge Anglo Shareholders To Reject BHP Bid – by Antony Sguazzin (Bloomberg News – May 7, 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — South Africa’s biggest labor union federation urged local shareholders, including the powerful Public Investment Corp., to oppose BHP Group Ltd.’s bid to buy Anglo American Plc. The Congress of South African Trade Unions, which includes the National Union of Mineworkers among its members, said a deal wouldn’t be in the national interest. South African shareholders hold about 26% of Anglo, with the PIC owning 8.4%, according to data compiled by Bloomberg.

BHP’s proposal to acquire Anglo on April 25 raised the ire of some members of South Africa’s government, including Mines Minister Gwede Mantashe. The Australian company responded by deploying a senior team including its chief executive officer to South Africa to win over government officials, regulators and local Anglo shareholders.

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What’s Anglo Worth? For Now It’s Less than the Sum of Its Parts – by Mark Burton (Bloomberg News – May 2, 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — As BHP Group considers its next move, there’s one big question facing the mining world’s bankers, analysts and executives at rival producers: What’s Anglo American Plc actually worth? Anglo’s shares are trading about 8% above the price implied by BHP’s initial proposal, which was swiftly and firmly rejected, and Bloomberg reported on the weekend that the larger firm was considering an improved offer.

But how high can BHP go? The world’s biggest miner needs to thread the needle with an offer that can win over Anglo investors while maintaining the support of its own shareholders — especially given the company’s history of disastrous dealmaking.

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Mike Henry, the Canadian boss of mining giant BHP, faces a reputational make-or-break takeover attempt – by Eric Reguly (Globe and Mail – May 3, 2024)

https://www.theglobeandmail.com/

Mike Henry’s long career at BHP, the world’s biggest mining company, did not rock the resources world. In his various roles – he has been CEO since 2020 – he was competent, capable and cautious, according to former employees and executives at rival companies, making him more evolutionary than revolutionary.

Today, Mr. Henry seems to be breaking form to unleash a potential revolution at BHP. A leak last week forced the company to reveal a takeover proposal for rival Anglo American that implied a value of US$39-billion. Anglo promptly rejected the bid, which can now be declared hostile, as undervalued, opportunistic and complicated.

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Ecuador court puts nail in $3bn copper project’s coffin – by Cecilia Jamasmie (Mining.com – May 1, 2024)

https://www.mining.com/

Ecuador’s constitutional court has decided not to process appeals aimed at resuming activities at the disputed $3 billion Llurimagua copper-molybdenum project, in the country’s northern Imbabura province.

The 982-million-tonne copper asset, about 80 km northeast of Ecuador’s capital of Quito, was initially being advanced by the country’s national mining company, Enami EP, with the help of Chile’s Codelco.

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BHP Woos South Africa in Pursuit of $39 Billion Anglo Takeover – by William Clowes, Clara Ferreira Marques and Thomas Biesheuvel (Bloomberg News – May 1, 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — BHP Group Ltd. has deployed a senior team including its chief executive officer to South Africa as the world’s largest miner ramps up efforts to win over government officials, regulators and local shareholders, all of whom could yet determine the outcome of its proposed tie-up with rival Anglo American Plc.

The executives have already begun conversations with key stakeholders, focusing on explaining the detail of the existing $39 billion proposal — currently back on the drawing board after it was rapidly rejected by its target — and its benefits, according to people familiar with the matter. Melbourne-based CEO Mike Henry has flown to South Africa and was in the country on Thursday, the people said.

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Glencore studying an approach for Anglo American, sources say – by Clara Denina, Pratima Desai and Felix Njini (Reuters – May 2, 2024)

https://www.reuters.com/

Commodities group Glencore (LON: GLEN) is studying an approach for Anglo American (LON: AAL) two sources said, a development that could spark a bidding war for the 107-year old mining company.

Glencore has not yet approached Anglo, one of the sources said. The discussions are internal and preliminary at this stage and may not result in an approach, the source added. “We do not comment on market rumour or speculation,” a Glencore spokesperson said.

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EU Policy. More than 70% of key resources imperilled by climate – report – by Marta Pacheco (Euro News – April 30, 2024)

https://www.euronews.com/

Global production of crucial raw materials may be at risk of disruption due to climate change and businesses need to find adaptation solutions in order to timely deliver clean technologies for the green transition. More than 70% of copper, cobalt and lithium, key critical raw materials needed for the clean energy transition driven by the EU, are at risk of facing supply disruption due to climate change, according to a new analysis.

Countries leading cobalt and lithium production — Australia, Chile, the Democratic Republic of Congo (DRC), and Peru — are experiencing a rise in drought, putting at risk 74% of cobalt and lithium production by 2050, a report by the multinational PricewaterhouseCoopers (PwC) published today (April 30) revealed.

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OPINION: Copper is the new oil and Big Mining sees the metal as its lifeblood – by Eric Reguly (Globe and Mail – April 27, 2024)

https://www.theglobeandmail.com/

Australia’s BHP, the world’s biggest mining company, considered a bid for smaller player Anglo American about five years ago. BHP coveted only Anglo’s copper, and was put off by the prospect of dismantling a highly complex company to nail the prize. So it passed.

Big mistake. Copper since then has become the new oil, and no big mining house can prosper without the metal considered critical to the transition to a low-carbon future. Everyone wants copper and the price is soaring as supply proves incapable of meeting demand.

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