BHP (ASX: BHP) offered to buy Anglo (LON:AAL) last week, though Anglo rejected the proposal that would create the world’s biggest copper miner, saying it undervalues the company.
“The deal has increased the valuation of copper assets and highlights that major mining companies believe the price for copper will be significantly higher than current levels and they are willing to pay a premium to acquire existing copper production today,” Hudbay CEO Peter Kukielski told Reuters.
Three-month copper prices on the London Metal Exchange CMCU3 hit a two-year high above $10,200 a metric ton on Tuesday, although have since retreated to $9,750.
Hudbay is currently building Copper World, where it anticipates approximately 92,000 metric tons of average copper production over the first ten years. Total initial cost for phase 1 is expected to be C$1.3 billion ($950.6 million).
Kukielski said Hudbay will launch the process to bring in…
