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• BHP Group has agreed to sell its San Manuel copper property in Arizona to Faraday Copper.
• As part of the transaction, BHP will receive a 30% equity stake in Faraday Copper.
• The deal positions both companies to work toward a potential restart of copper production at San Manuel.
• The transaction supports efforts to strengthen U.S. copper supply chain resilience.

BHP Group (ASX:BHP), trading at A$54.02, is adding another piece to its copper presence in North America through this San Manuel deal. The company gains an ownership interest in Faraday Copper while consolidating copper assets in Arizona. For investors, this move comes after a period of recent share price appreciation, with the stock up 7.3% over the past week and 18.1% year to date.

Looking ahead, the San Manuel property provides BHP with exposure to a possible future production site in the U.S. without directly operating the asset at this time. The collaboration with Faraday Copper may create potential for infrastructure and environmental efficiencies and could support regional economic activity if redevelopment proceeds.

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ASX:BHP Earnings & Revenue Growth as at Feb 2026

3 things going right for BHP Group that this headline doesn't cover.

This San Manuel deal fits into a wider copper-focused push at BHP. Recent guidance points to copper production of 1.0 to 1.1 million tonnes in FY 2027, with an additional 400,000 tonnes of incremental production targeted over 2027 to 2031. Rather than pursuing every project on its own balance sheet, BHP is using a partner-operator model here, trading ownership of the property for a 30% stake in Faraday and rights to support future equity raises up to US$20 million. That gives BHP exposure to a potential U.S. copper hub with road, rail, gas and power access, while Faraday focuses on project execution at San Manuel and Copper Creek. For you as an investor, this sits alongside other copper-linked moves, such as the US$4.3b silver stream on Antamina, where BHP has retained full exposure to core copper output. Together, these transactions show BHP tying its portfolio more tightly to copper, while using partnerships to share capital and operational risk with smaller counterparties.

How This Fits Into The BHP Group Narrative

• The San Manuel and Faraday agreement lines up with the narrative focus on copper growth projects and long-life assets in large resource districts.
• Relying on a partner to advance a key U.S. project introduces project execution and permitting risk that sits outside BHP’s direct operational control, which could test the narrative’s emphasis on cost leadership and disciplined delivery.
• The potential creation of a U.S. copper hub with consolidated infrastructure and streaming-style deals like Antamina may not be fully reflected in earlier commentary that focused mainly on iron ore, Jansen and existing copper operations.

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The Risks and Rewards Investors Should Consider

• ⚠️ The San Manuel transaction is based on a non binding agreement and still depends on shareholder and regulatory approvals, so there is a risk the deal timeline slips or terms change.
• ⚠️ Concentration in copper and exposure to project partners in Arizona and Peru add another layer of operational and permitting risk alongside existing exposure to iron ore and large projects like Jansen.
• 🎁 The equity stake in Faraday gives BHP upside if a consolidated Copper Creek and San Manuel district proves successful, without committing all the development capital itself.
• 🎁 Recent results showing US$27,902 million of sales and US$5,640 million of net income, together with increased copper guidance and new streaming deals, indicate BHP is using its balance sheet and cash flow to reshape the portfolio around higher priority commodities.

What To Watch Going Forward

You may want to watch how quickly the non binding letter of intent with Faraday Copper moves to a definitive agreement, and whether closing by the end of Q3 2026 remains on track. Progress on technical studies and permitting at San Manuel and Copper Creek will be important to see if a restart is realistic. It is also worth tracking how this Arizona hub concept fits alongside BHP’s wider copper targets for FY 2027 and beyond, and how management allocates capital across other options in Chile, Peru and future deals competing for funding with Rio Tinto, Glencore and Teck Resources. Finally, monitor future commentary around U.S. copper supply chain resilience, as that policy backdrop could influence timelines and the eventual shape of the project.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BHP.AX.

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