Copper-bottomed merger will create mining giant

HARGREAVES LANSDOWN

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ANGLO AMERICAN and Canada’s Teck Resources have agreed to join forces. On completion, it promises to be the largest transaction the mining industry has seen in a decade. Following significant efforts to rebalance the portfolio, this step continues Anglo's shift towards copper.

The combined group is set to become the world’s second-largest publicly listed producer. Copper has an impressive track record of demand growth. Trends such as electrification and the build-out of artificial intelligence infrastructure could see that accelerate.

But many of the world’s richest ore bodies have already been mined. That raises questions about whether supply can keep pace.