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BHP set to detail copper growth plans on Chile roadshow, experts state

BHP Group is likely to expand strategies next week to invest at least $7 billion over the coming years to recuperate more metal from the world's. most significant copper mine, Escondida in Chile, financiers and analysts. stated on Thursday.

The world's greatest noted miner will be hosting analysts. and financiers on a roadshow of its Escondida and Spence copper. operations from Nov. 17-20. BHP did not react to an ask for. remark about the discussion.

Copper is key to BHP's development plans as a necessary metal. for the global shift to cleaner energy, but its yearly. production is set to fall by around 300,000 metric heaps to 1.6. million tons by the end of the decade.

To keep output constant, BHP requires to show how it will extract. more copper from decreasing ore grades at Escondida and validate. greater costs, which it has estimated at between $7 billion. and $12 billion over numerous years, according to UBS' analysis. of BHP figures.

The cost to construct whatever is increasing. That's the. reality, said Andy Forster of Argo Investments.

Those costs include a brand-new concentrator at Escondida which. analysts approximate in between $5 billion and $6.5 billion alone.

BHP has approximated capital spending consisting of expedition in. the existing fiscal year at $10 billion, increasing to $11 billion. usually medium term. It is uncertain just how much of this Chilean. spend is consisted of because existing capital spending outlook.

BHP has actually made it extremely public that they are still quite. positive on the long term fundamentals of copper. That does imply. capex and that does mean that we will need to transition to a. duration of incentive rates, said RBC expert Kaan Peker.

Peker sees copper prices trending up towards $5 a pound or. greater. LME copper last traded at $8,966 a load ($ 4 a pound).

There are 4 main ways to broaden copper output in Chile:. replacing the aging Los Colorados concentrator, debottlenecking. its Laguna and Spence concentrators, and using leaching. technologies to unlock sulphide resources, BHP has said.

Buying Anglo American is still BHP's best near-term. alternative for copper, UBS said.

UK takeover laws prevent BHP from making another technique. for Anglo up until late this month, after it was rebuffed earlier. this year.

Anglo is making great development with its restructuring and is. anticipated to spin out Amplats after lead to Mar/Apr -25. In our. viewpoint, BHP (and others) are most likely to re-evaluate Anglo after. this, UBS said.

BHP has not eliminated a restored quote.

(source: Reuters)