Mining giant BHP has reported better-than-expected annual earnings, helped by record copper prices that have made the metal a more important contributor to the company’s profits than iron ore.

The world’s largest listed mining company also announced its highest annual dividend in four years, reflecting the strength of its financial performance.

BHP said copper has overtaken iron ore as its biggest earnings driver.

The shift is significant because copper is increasingly important to industries involved in electricity networks, renewable energy, electric vehicles and artificial intelligence infrastructure.

Growing demand for these technologies has strengthened expectations for long-term copper consumption.

The company is also planning to expand its copper production substantially over the next decade.

Chief Executive Brandon Craig said BHP’s project pipeline could increase copper output by as much as 40 percent by 2035, although production is expected to decline in the short term before new projects come online.

The strong results come at a time when mining companies are reassessing their portfolios in response to changing demand for raw materials.

Investors are particularly interested in companies with access to commodities needed for the energy transition and the expansion of digital infrastructure.

BHP’s results therefore underline the growing importance of copper to the mining industry.

Analysts expect demand for the metal to remain strong as governments and businesses invest in electricity infrastructure, technology and cleaner energy, potentially making copper an increasingly important source of growth for major mining companies.

Source: The Business Times