BHP CEO Ragnar Udd expects copper demand to rise to 50 million tonnes by 2050 from from 32 million tonnes now, driven by urbanisation, decarbonisation and digitisation. Iron ore prices also remain competitive above $100 a tonne, while India stands out as “one of the most exciting countries in terms of growth.”
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BHP CEO Ragnar Udd expects copper demand to rise to 50 million tonnes by 2050 from from 32 million tonnes now, driven by urbanisation, decarbonisation and digitisation. Iron ore prices also remain competitive above $100 a tonne, while India stands out as “one of the most exciting countries in terms of growth.”
Speaking to CNBC-TV18, Udd said, “In terms of copper, we remain very bullish based on very strong demand globally and supply looking to be in balance, or even potentially a bit of a shortfall.” Iron ore, meanwhile, is expected to hold steady with prices “just over $100 a dry metric tonne,” supported by sustained steel demand in China.
On the impact of tariffs, Udd said BHP’s exposure remains limited as only 3% of its revenue comes from the US. “We actually haven’t seen an impact on our operations associated with copper tariffs…China’s copper demand increased by 8% over the last calendar year, which meant that we were able to sell freely anywhere in the world,” he said.
Copper production has been performing strongly across BHP’s operations, with key growth projects underway in Chile, Argentina, South Australia, and through its Resolution Copper joint venture with Rio Tinto. The miner expects copper demand to rise sharply from 32 million tonnes this year to 50 million tonnes by 2050, driven by urbanisation, decarbonisation, and digitisation.
In iron ore, Udd highlighted the strong profitability of BHP’s Western Australian business, which produces 290 million tonnes annually and generates about $7 more free cash flow per tonne compared to its nearest competitor, adding up to nearly $2 billion in additional cash each year. Steel demand is expected to grow at about 0.6% annually, with China maintaining its billion-tonne production mark for the next few years before a gradual decline in the 2040s.
On India, Udd struck an optimistic note, calling it “probably one of the most exciting countries in terms of growth that we’re seeing.” He said India is set to become the fourth-largest economy this year, with strong domestic consumption, abundant labour, and rising ambition. Tariff concerns are unlikely to significantly impact growth, as only about 1% of India’s GDP is exposed to exports vulnerable to such measures. BHP, he added, is working closely with India in both copper and steel.
Watch accompanying video for entire conversation.
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