BHP Signs LOI with Faraday Copper for San Manuel Mine Restart, Up to $20m Investment
BHP signed a non-binding LOI with Faraday Copper to sell its San Manuel copper mine in Arizona for a 30% Faraday stake and up to $20m equity investment over two years. The deal follows BHP’s $4.3bn silver streaming agreement with Wheaton Precious Metals, boosting drive to expand U.S. metals supply.
1. LOI Terms
BHP has signed a non-binding letter of intent with Faraday Copper to transfer 100% ownership of its San Manuel copper mine in Arizona. Under the agreement, BHP will receive a 30% equity stake in Faraday and may invest up to $20 million over two years via future equity raises.
2. Strategic Drivers
Restarting San Manuel aligns with U.S. goals to strengthen domestic copper supply chains and supports regional economic development in Pinal County. BHP leadership says the partnership enhances long-term access to copper critical for renewable energy and electric vehicle markets.
3. Silver Streaming Transaction
This copper collaboration follows BHP’s $4.3 billion upfront silver streaming deal with Wheaton Precious Metals, the largest such transaction to date. The streaming agreement diversifies BHP’s revenue streams and provides significant capital for additional supply expansion initiatives.
4. Market Impact
BHP shares rose in early trading, outperforming broader indices as investors respond to its expanded U.S. metal assets strategy. Analysts note the LOI’s non-binding status but view the potential restart as positive for BHP’s long-term copper portfolio.