What Fortescue's Acquisition Means for Copper Supply Chains

Mining companies around the world are making strategic decisions to strengthen their portfolios and gain competitive positions in the critical minerals race.

Sustainable mining-focused company Fortescue has completed the acquisition of Alta Copper in order to solidify its standing.

In doing this, Fortescue is preparing itself for responsible copper mining as the material becomes a key commodity. 

The increasing role of copper

The global critical minerals race is constantly gaining more ground, as mining companies around the world aim to modernise their operations in order to meet demand, or diversify their portfolios to gain a competitive edge. Though every nation has a different list of critical minerals, depending on their production capabilities and material priorities, the rising demand for copper cannot be ignored.

Copper is increasingly being classified as a critical mineral, due to its significant role in the clean energy transition, electric vehicles and national infrastructure. As a result, it is growing in value due to its role in economic and national security. It is used in construction, electrical wiring, is used for electrical conductivity, crucial in modern technology. It is versatile, highly conductive and malleable, making it a key commodity.

It is for this reason that Fortescue has acquired Alta Copper.

"Copper is a core pillar of Fortescue’s growth and diversification strategy and the acquisition of Alta Copper builds on our existing critical minerals exploration activity," explains Gus Pichot, Fortescue Growth and Energy Chief Executive Officer.

An innovative company

Fortescue is the technology, energy and metals group that is working to decarbonise the industry, demonstrating how to blend sustainability with profitability. For more than 20 years, the company has been creating and using cutting edge technology to unlock value across its operations. Now, it is using its expertise and innovation to tackle climate change.

It is consistently working to eliminate its Scope 1 and 2 emissions throughout its operations – having recently purchased electric locomotives to travel between its Pilbara sites – and is diversifying into the extraction of green metals. 

To solidify its role in the critical minerals race, Fortescue has completed its acquisition of Alta Copper, bringing the company and its resources into its asset portfolio. Now, it can apply its low-carbon emissions technology to the extraction of copper. 

A worthy asset

Alta Copper has a focus on its 100% owned Cañariaco advanced staged copper project, comprising 91 square kilometres of land in Peru. As a result of the acquisition, Fortescue is now the 100% owner of the copper project, which is located within an emerging porphyry copper corridor. 

This reflects a strong strategic asset building of Fortescue, as the project is made up of highly prospective tenure which hosts several deposits. The company has had a presence in Latin America since 2018 and has significant technical, permitting and community engagement expertise. As a result, its takeover of the project should be relatively seamless and unlock high value. 

“In particular, the Cañariaco Copper Project strengthens Fortescue’s copper portfolio and provides exposure to a significant undeveloped resource within an emerging porphyry corridor in Northern Peru," Gus continues.

“Our immediate focus will be on technical reviews, community engagement and advancing the studies required to inform future development decisions.”

By securing this resource for future operations, Fortescue is strengthening its portfolio capabilities and may lead the way in responsible copper mining.