Australia’s mining stocks set to extend rally on rising copper demand
Copper prices hit a record high of US$14,700 per tonne in September 2026, driven by strong demand from AI data centers. BHP's copper earnings surpassed iron ore revenue for the first time, with US$18.2 billion in FY26. BHP and Rio Tinto are increasing copper investments. Sandfire Resources' share price rose over 90% in a year. Analysts expect continued copper demand growth.
How this was made
The 30-second read
Why it matters
The price surge reshapes revenue expectations for copper‑focused miners, especially BHP and Rio Tinto.
Market read
Copper’s record price underpins a rally in Australian mining stocks, with BHP leading the upside.
What to watch
Potential supply constraints from major copper mines outside Australia could amplify price volatility.
Background
Copper prices hit a record $14,700/tonne in September 2026, driven by AI‑related data‑center construction.
Ticker impact
BHP reported FY26 copper earnings of $18.2 bn, overtaking iron ore for the first time.
upward pressure as investors re‑price higher copper exposure
New earnings mix shift signals stronger growth outlook; copper price at historic highs.
Rio Tinto is increasing its copper exposure amid rising demand.
moderate upside as market values expanded copper portfolio
Company’s strategic shift aligns with sector tailwinds, but no specific earnings disclosed.
Market effects
Australian mining sector likely to outperform as copper demand from AI data centers accelerates.
ASX mining index may outpace broader market in the near term.
Higher copper prices could boost global commodity sentiment and benefit other copper producers.
Counterpoint
If AI data‑center build‑out slows or alternative materials emerge, copper demand could plateau, limiting upside.
Key entities
- companyBHP
Australian mining giant shifting earnings mix toward copper.
- companyRio Tinto
Major miner expanding copper exposure.
