BHP & Kobrea Alliance: Backing Junior Explorers

Kobrea’s Western Malargüe Copper Projects in the Mendoza Province of Argentina will see further exploration after a strategic alliance with BHP.

BHP is the world’s largest mining company by market capitalisation and is committing a minimum of US$5m to exploration expenditures across a two-year project generation phase.

Kobrea holds a large land package with more than 12 porphyry copper and copper-gold projects on the Neogene Porphyry Belt.

James Hedalen, CEO of Kobrea, says: "This alliance with BHP Metals Exploration represents a transformational milestone for Kobrea and demonstrates confidence in the Western Malargüe Copper Projects and the work our technical team has completed to date."

The Kobrea-BHP alliance 

After forming a strategic alliance with Kobrea, BHP will make an upfront payment of US$3m and a further US$5m for a two year project.

Kobrea says it will act as lead operator for the project generation phase, managing the investment.

After the initial two-year plan, BHP can choose to assume lead operatorship.

Alongside this venture, BHP can designate up to four separate projects, earning a 75% interest in each.

These projects will require a minimum investment of US$40m in exploration expenditure across eight years.

BHP’s alliance with Kobrea will seek to advance copper mining in Argentina, after Kobrea secured the right to earn a 100% interest in the Western Malargüe copper projects in 2024.

BHP's copper mining strategy

BHP is one of the world’s largest copper producers and holds operations across more than 90 locations.

The company says that it grew copper production by around 30% between 2021 and 2025.

Through its BHP Xplor initiative, the company offers a nine-month program with US$500,000 in equity-free funding, industry connections and commercial support for mining companies.

The globally offered programme has supported 31 companies to date across its annual cohorts.

Although the Xplor initiative is designed for smaller projects, the Kobrea partnership highlights a wider strategy for BHP in sourcing new copper opportunities.

Forming external partnerships to build future project pipelines is a growing trend in the mining industry.

Mitch Thomas, CEO of junior copper explorer Solis Minerals, says: “We’re seeing increased M&A activity, especially in South America, as companies recognise the challenges in permitting and developing new greenfield projects.

“For juniors, this creates a strong incentive to advance high-quality assets to a stage where they become attractive takeover targets.”