BHP eyes opportunities in China's green push

China's commitment to a green energy transition is fueling optimism among multinational mining companies like BHP, which believes the shift will drive substantial long-term demand for commodities such as copper, its CEO said during the China Development Forum held recently in Beijing.

Mike Henry, CEO of the world's largest listed miner, said China's robust manufacturing base, scientific prowess and ongoing urbanization positioned the country to remain a global economic powerhouse. He highlighted the nation's shift toward sustainable growth as a significant opportunity for the mining industry.

"With its strong foundations in manufacturing, scientific research and urbanization, China is poised to continue its role as a global economic powerhouse," he said.

"As China transitions to more sustainable growth models, there is an opportunity for industries, including mining, to contribute to that effort."

The mining company expressed strong confidence in continued growth, driven by China's commitment to high-quality development and its energy transition initiatives.

While acknowledging China's broader economic transition, Henry highlighted a new demand driver: the explosive growth of data centers required to power the global AI ecosystem. He stressed copper's critical role in these facilities, particularly for power networks, circuit boards and cooling systems.

"Lesser known is the essential role copper will play in the development of the global AI ecosystem, which is attracting so much attention and investment around the world," Henry said.

BHP estimates that copper demand from data centers alone will balloon sixfold by 2050, reaching nearly 3 million metric tons annually from around half a million tons currently. At current prices, this represents a market worth approximately 200 billion yuan ($27.54 billion), it said.

Many think tanks and academic institutes believe copper has an essential role in the expansion of data centers, and in the expansion of electrical grids to meet new demand. Its usage includes electric connectors, busbars and heat exchangers.

Morgan Stanley forecasts demand from data centers will grow rapidly, accounting for up to 3.3 percent of copper demand by 2027, while BloombergNEF estimates approximately 427 million tons of copper will be needed by 2050, accounting for more than a third of global copper demand by mid-century.

Henry expressed optimism about the opportunities for collaboration between investors, governments, refiners and miners. He highlighted BHP's commitment to working with Chinese partners like China Baowu Steel Group Corp and HBIS Group on technologies to reduce emissions in steelmaking, and with copper customers to ensure reliable supply.

Chinese steelmakers have been showing deep commitment to reducing their carbon intensity, pursuing opportunities like hydrogen injection, as well as applying technology measures like carbon capture, utilization and storage.

"At BHP, we are optimistic this can be done. Working alongside our refining partners in China and other parts of the world, we can find new ways to get copper supply heading in the right direction again," he said.