BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and Poland-based KGHM Polska Miedz (OTCPL:KGHPF,WSE:KGH) have formed a global alliance to scout and develop new copper projects and pool resources.
Under a memorandum of understanding (MOU) announced on Tuesday (September 8), the world’s largest mining company and the EU’s top producer of mined copper have created a framework through which they plan to exchange technical data, evaluate early stage assets and compare operating practices.
The agreement expands on their existing joint operations in Chile and seeks to establish a structure to scout projects beyond their current geographical footprints in Europe, Australia and the Americas.
“The world will need more copper, driven by traditional economic growth, the energy transition, and digital investments,” BHP CEO Brandon Craig said in a statement. “The MoU provides a structure for BHP and KGHM teams to come together and explore new avenues to find and unlock copper growth opportunities.”
KGHM, the world’s second largest silver producer, operates major mines in Poland alongside assets located in the US, Canada and Chile. The state-controlled producer is now seeking to broaden its development pipeline as global competition for high-grade copper deposits intensifies.
“The signed MoU provides a structured framework for further discussions and opens the way for an in-depth analysis of potential areas of cooperation,” KGHM President Remigiusz Paszkiewicz said.
Physical supply constraints continue to tighten across key copper-producing hubs. BloombergNEF projects that the global deficit will reach 7 million metric tons by 2035.
Production in Chile dropped 5.8 percent year-on-year in the first quarter of 2026 amid falling ore grades, while operational setbacks at Indonesia’s Grasberg mine and guidance cuts at the Kamoa-Kakula joint venture in the Democratic Republic of Congo have further squeezed global balances of the red metal.
Partnering with KGHM supports BHP’s target to produce 2 million metric tons of copper annually by the mid-2030s.
Copper recently displaced iron ore as BHP’s primary profit driver, generating US$18 billion in underlying earnings to account for 54 percent of the company’s total underlying EBITDA.
Alongside the joint venture framework, BHP is deploying capital across its wholly owned assets.
In July, the firm secured environmental approval for a US$1.3 billion initial upgrade at its Escondida mine in Chile and awarded an engineering contract to expand smelting facilities at its Olympic Dam operation in South Australia.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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