BHP has entered into a non-binding agreement with Faraday Copper to investigate reviving the dormant San Manuel copper mine in Arizona.
BHP chief development officer Catherine Raw said the brownfield project could rapidly deliver new copper resources to the market.
“BHP looks forward to working with Faraday to create a pathway to bring on additional US copper supply to the market,” Raw said. “This would support the US objective of greater copper supply chain resilience, as well as economic development in the Pinal County region.”
The letter of intent outlines a potential deal in which Faraday would acquire full ownership of the San Manuel site from a BHP subsidiary. In exchange, BHP is set to receive a 30 per cent equity share in Faraday, alongside relevant marketing and shareholder privileges.
In addition, BHP has committed to backing Faraday in future equity-raising efforts over the next two years, capping its total contribution at $US20 million.
The companies intend to evaluate options for establishing a new copper hub in the US by merging the San Manuel asset with Faraday’s neighbouring Copper Creek property. This consolidation aims to capitalise on existing infrastructure and shared borders to improve capital efficiency.
The San Manuel underground mine previously operated from 1955–99, ranking as a major domestic copper source before closing amid a slump in commodity prices. A substantial deposit of minerals was left untouched at the site.
The deal relies on customary approvals, definitive agreements and the completion of due diligence.
