BHP Group Limited, through a wholly‑owned subsidiary, entered into a non‑binding letter of intent with Faraday Copper Corp. on February 20 2026 to explore a transaction in which Faraday would acquire 100 % of BHP’s San Manuel copper property in Arizona. The San Manuel mine, which operated from 1955 to 1999 and was once the largest underground copper mine in the United States, sits adjacent to Faraday’s Copper Creek project and contains a significant mineral inventory that could be redeveloped.
Under the terms of the letter, BHP will receive a 30 % equity interest in Faraday and the right to participate in any future equity raises by Faraday over a two‑year period, up to a maximum of $20 million. The agreement also allows BHP to negotiate a definitive purchase and sale agreement once due diligence and approvals are completed, with a closing expected by the end of the third quarter of 2026.
The San Manuel site is strategically positioned to become a new copper hub in Arizona. By leveraging existing infrastructure at San Manuel and the proximity to Copper Creek, the transaction could unlock the property’s remaining mineral resources and accelerate development of a consolidated copper district.
BHP’s decision aligns with its broader copper strategy. Copper now represents the largest contributor to BHP’s underlying EBITDA for the first time in the half‑year ended December 31 2025, and the company has raised its FY26 group copper guidance to 1.9–2.0 million tonnes, with a target of 2.5 million tonnes by FY35. The San Manuel acquisition would deepen BHP’s U.S. copper footprint and diversify its asset base.
Faraday Copper is an exploration‑stage company that has not yet generated revenue. The company has secured permits for its Copper Creek project and reported positive exploration results, positioning it to redevelop San Manuel and expand its copper district. The partnership would give BHP exposure to Faraday’s development pipeline while providing Faraday with a strategic partner and capital source.
BHP’s Chief Development Officer, Catherine Raw, said the partnership would “create a pathway to bring on additional U.S. copper supply to the market, supporting the U.S. objective of greater copper supply‑chain resilience and economic development in the Pinal County region.” CEO Mike Henry added that BHP’s focus on “operational excellence, distinctive social value creation and growth in copper and potash” underpins the company’s confidence in the deal and its broader copper strategy.
The letter of intent is non‑binding and subject to customary closing conditions, including due diligence, regulatory approvals and shareholder consent. Once those conditions are satisfied, BHP and Faraday will negotiate a definitive agreement to formalize the transaction.
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