BHP Eyes 30% Stake in Faraday Copper to Revive Arizona Mine

The agreement outlines a transaction where Faraday Copper would acquire BHP's San Manuel property. In return, the global mining giant would receive a 30% equity interest in Faraday, along with commensurate shareholder and marketing rights. As part of the strategic partnership, BHP has also committed to participating in Faraday’s future equity raises for the next two years, with a total investment cap of $20 million.

Consolidating Arizona's Copper Resources

The collaboration focuses on the synergy between the idled San Manuel site and the nearby Copper Creek project. San Manuel, which operated from 1955 to 1999, formerly held the title of the largest underground copper mine in the United States. While operations ceased decades ago during a period of depressed commodity prices, substantial mineral inventory remains in the ground, according to the companies.

Catherine Raw, BHP’s chief development officer, stated that the deal is designed to strengthen the U.S. copper supply chain while stimulating economic growth in Pinal County. By merging these assets, the companies intend to leverage existing infrastructure to meet rising demand for the red metal, which is essential for the global energy transition.