BHP, via a wholly owned subsidiary, has reached definitive agreements to sell 100% of its San Manuel property in Arizona, US, to Faraday Copper.
The agreement provides for BHP to receive a 30% equity interest in Faraday on a fully diluted basis once the deal closes.
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In addition, BHP will obtain shareholder and offtake rights and can participate in future equity fundraising by Faraday.
Deal completion is anticipated in the quarter ending 30 September 2026, contingent on regulatory clearances and approval by Faraday shareholders.
Following completion, and accounting for shares from a private placement due in March 2026, BHP’s holding is expected to total around 32.5% of Faraday on a non-diluted basis.
The transaction paves the way for Faraday to develop a combined copper operation in Arizona, integrating infrastructure and mineral assets at San Manuel with its adjacent Copper Creek project.
Faraday’s plans for the site remain subject to additional technical evaluation and further regulatory approvals.
According to the parties, the consolidated effort is intended to encourage future investment, create employment and support domestic US copper supply.
BHP continues to maintain interests in other Arizona copper assets including those at Resolution and Globe-Miami.
BofA Securities is serving as financial adviser to BHP on the transaction, with legal support from Stikeman Elliott and Snell & Wilmer.
Last month, BHP, Rio Tinto and Caterpillar started testing two Cat 793 XE Early Learner battery-electric haul trucks at the Jimblebar iron ore mine in Western Australia’s Pilbara region.
The collaboration aims to examine how battery-electric vehicles could contribute to cutting greenhouse gas emissions in large-scale mining.
