​Potential mergers could consolidate global copper production under two major players

If the proposed mergers between BHP and Anglo American, as well as Rio Tinto and Glencore, are successful, the two resulting entities could control up to 16 percent of global copper production.

BHP, the world’s largest mining company, made a 49 billion USD bid for Anglo American last year, though the offer was repeatedly rejected. However, recent reports from the Financial Times indicate that BHP has decided to delay the merger, despite Anglo American agreeing to divest its diamond, platinum, and coal assets in South Africa, Brazil, and Australia. This restructuring appears to be in line with BHP's strategic goals, with copper projects now expected to represent 60 percent of Anglo American’s total portfolio. If the deal proceeds, the combined entities would produce approximately 1.9 million tons of copper annually.

Similarly, discussions regarding a merger between Glencore and Rio Tinto took place last year. Should these two companies merge, their combined annual copper output would total 1.6 million tons.

At current market valuations, both the BHP-Anglo and Rio Tinto-Glencore joint ventures are estimated to be worth around 160 billion USD each, further cementing their potential influence on global copper production.