BHP Signs Letter of Intent with Faraday to Restart San Manuel Copper Mine
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy BHP?
Source: seekingalpha
- Copper Mine Restart Plan: BHP has signed a non-binding letter of intent with Faraday Copper to evaluate restarting the San Manuel copper mine in Arizona, aiming to combine it with Faraday's Copper Creek project to create a larger copper development hub, which is expected to enhance U.S. copper supply capabilities.
- Equity Exchange Agreement: Under the proposed terms, Faraday would acquire BHP's San Manuel property in exchange for a 30% equity interest, along with corresponding shareholder and marketing rights, which will help Faraday strengthen its market position.
- Investment Commitment: BHP has agreed to participate in any Faraday equity raises for two years, investing up to $20 million, which not only provides financial support to Faraday but also demonstrates BHP's confidence in the copper market.
- Historical Context: The San Manuel mine was the largest underground copper mine in the U.S., operating from 1955 to 1999, and was closed due to low copper prices; the restart plan aims to restore its historical significance and support the resilience of the U.S. copper supply chain.
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Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 71.850
Low
49.50
Averages
56.50
High
68.00
Current: 71.850
Low
49.50
Averages
56.50
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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