Copper prices reached record levels in early 2026. The metal peaked near US$14,500 per tonne in January. Prices currently stabilise around US$13,000 per tonne. This trend supports major mining stocks in Australia and overseas. Supply deficits drive the market. Analysts forecast a 20 per cent price increase for the 2026 calendar year.
Demand stems from artificial intelligence infrastructure and energy transitions. Data centres require significant copper volumes for power and cooling. Traditional IT systems use less metal than AI processing units. AI systems demand four to six times more copper per unit. Global power grid expansions also consume large quantities of the metal.
Australian Producers Lead Market Gains
BHP Group reports record copper production for the first half of the financial year. The company increased its fiscal year 2026 guidance. It expects to produce between 1.9 and 2.0 million tonnes. The Escondida mine in Chile achieved record concentrator throughput. Copper now contributes 51 per cent of the total earnings for the group.
BHP Chief Executive Mike Henry provided details on the performance. “This half marks a milestone for BHP with copper contributing the largest share of our overall earnings,” Henry said. The company declared a dividend of 73 US cents. The share price reached a record high of $54.20 in February. Capital flows toward the sector as prices remain elevated.
BHP Group Ltd’s share performance
Rio Tinto and Sandfire Expand Operations
Rio Tinto produced 883,000 tonnes of copper in 2025. This figure represents an 11 per cent increase from the previous year. The Oyu Tolgoi mine in Mongolia drives this growth. The company targets production of 800,000 to 870,000 tonnes for 2026. It continues to develop the Kennecott underground mine in Utah.
Sandfire Resources recorded a share price return of 99.9 per cent over 12 months. The company focuses on pure-play copper strategies. It operates the Motheo mine in Botswana and assets in Western Australia. Capstone Copper also reported a 50.6 per cent share price appreciation. These firms provide leverage to price movements in the base metal.
Rio Tinto’s Oyu Tolgoi mine in Mongolia
Global Giants Increase Capital Expenditure
Freeport-McMoRan projects capital expenditures of US$4.3 billion for 2026. This represents an increase from US$3.9 billion in 2025. The company advances the Bagdad mine expansion in Arizona. It also recovers production at the Grasberg complex in Indonesia. Net income reached US$406 million for the fourth quarter.
Freeport Chief Executive Kathleen Quirk discussed the strategic positioning. “Freeport is strongly positioned for the future as a leading producer of copper,” Quirk stated. The company targets an annual production increase of 800 million pounds through leaching initiatives. It maintains an investment-grade balance sheet with US$4.3 billion in cash.
Southern Copper and Zijin Mining Growth
Southern Copper holds the largest copper reserves among listed miners. It produced 959,000 tonnes of copper in 2025. The company operates low-cost open-pit mines in Mexico and Peru. It maintains a structural advantage through integrated smelting capacity. Reserve estimates stand at 51.1 million tonnes as of December 2024.
Zijin Mining Group offers high-growth production profiles. The company aligns with strategic metal priorities in China. It generates solid cash flow to support global expansion. International journalistic reports highlight the broad footprint of the group. Investors monitor the acquisition pipeline for further volume growth.
Southern Copper’s share performance
Supply Deficits and Strategic Stockpiling
The International Copper Study Group expects a 150,000-tonne deficit in 2026. Refined production will grow by only 0.9 per cent this year. Processing bottlenecks limit the availability of copper concentrate. The United States and China continue to build strategic raw-material reserves. US inventories exceeded 590,000 tonnes in February 2026.
Stockpiling activities reflect concerns over supply security and trade tariffs. Project Vault in the United States involves a US$12 billion program. It aims to establish strategic reserves for critical minerals. Chinese grid operators plan investments of 4 trillion yuan through 2030. These factors maintain upward pressure on global commodity prices.
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Market Outlook and Performance Statistics
- Copper price 12-month increase: 25.52 per cent.
- BHP copper EBITDA: US$12.3 billion.
- Sandfire Resources’ annual return: 99.9 per cent.
- Global data centre copper demand: 4-6x increase.
- Projected 2026 price average: US$11,975 per tonne.
The global copper market remains in a state of tight balance. Analysts monitor the transition from surplus to potential shortage. Financial institutions project price levels of US$15,000 per tonne by 2035. Mining companies prioritise technology to improve recovery rates. Higher processing efficiency provides a competitive advantage in the current environment.
