Copper Surges Past Iron Ore as Key Driver of Growth for Australian Miners

Copper has surpassed iron ore as the key driver of growth for Australia's major miners, with BHP and Rio Tinto reporting their largest interim and final dividends in four years due to a surge in copper prices.

Rio and BHP are trading at all-time highs, with new BHP CEO Brandon Craig highlighting the company's copper growth projects in Chile, South Australia, and Argentina as attractive opportunities given copper prices have reached US$14,000/t.

This marks a significant shift from iron ore, which has been relatively stable over the past year. However, BHP notes that higher-cost iron ore supply will continue to support prices, with 260Mt of production losing money above US$80/t, a level that could provide a floor for prices in the market.

Fortescue Metals Group, which relies heavily on iron ore revenue, has seen its shares fall 19% year-to-date and posted a lower dividend for FY26, falling short of consensus forecasts.