Technology companies have held talks about buying stakes in Anglo American to secure the copper their data centres need, chief executive Duncan Wanblad told the FT's mining summit. No stake has been agreed yet.
At a glance
- Tech firms are weighing equity stakes against long-term offtake deals as ways to secure copper supply.
- Anglo's $53 billion merger with Teck still awaits final clearance from China.
- Anglo may shut its Brazil nickel business if the EU blocks its sale to MMG.
Background
Data centres, power grids and electric vehicles all need large amounts of copper, while new mines take many years to build. Buyers worried about shortages can sign offtake agreements, contracts to buy a mine's future output, or take an ownership stake in a producer to secure supply.
What happened
Anglo American has held talks with technology companies interested in buying equity in the miner, MINING.COM reported. Chief executive Duncan Wanblad told the Financial Times' Metals and Mining Summit in London on Thursday that discussions were "absolutely being had".
No stakes have been taken, but there has been "deep expressions of interest". The question for tech buyers is whether to lock in long-term offtake directly or take equity to secure a share of future supply. "Given the scarcity issue that we've been speaking about, a lot of people are looking for ways to secure supply," Wanblad said.
Why tech firms want in
Copper is tight and expensive. Cash copper on the London Metal Exchange (LME) settled at a record $14,822 a tonne on Monday. Comex copper traded near $6.52 a pound on Thursday, within 6% of its September record, after falling for three days on US inflation data.
Anglo's planned merger with Teck Resources would make it one of the five largest copper producers, with output of about 1.2 million tonnes a year. The combined group would control around 5% of global copper supply.
What comes next
China holds the key to the Teck deal. Its market regulator has asked Anglo to commit to steady copper concentrate supplies to Chinese smelters as a condition for approval, Reuters reported on October 2. Canada, the EU, the US, Japan, Chile and South Korea have already approved the deal, and the companies expect to close it by March 2027.
Anglo is also trying to sell its Brazil nickel assets to MMG for $500 million. Wanblad said the business will likely be shut if the European Union blocks the sale.
Our read
Outlook: bullish. Tech companies seeking to lock in supply shows strong long-term demand for copper. Near-term prices still depend on US interest rates and Chinese demand.
What to watch
- Whether any technology company takes a stake in Anglo American or signs a copper offtake.
- China's decision on the Anglo-Teck merger.
- The EU's ruling on the sale of Anglo's Brazil nickel assets to MMG.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-10-02: Reuters reports China wants concentrate supply commitments before approving Anglo-Teck.
- 2026-10-12: LME cash copper settles at a record $14,822 a tonne.
- 2026-10-15: Wanblad tells the FT summit that tech firms have shown deep interest in Anglo stakes.
Demand Drivers
Data-centre builders are now looking upstream to secure copper directly from miners.
Supply Drivers
Scarcity of copper supply is pushing buyers to secure future output through stakes or offtakes.
Government Policies
China wants guaranteed concentrate supply for its smelters before clearing the Anglo-Teck merger.
What could lift prices
- LME cash copper set a record $14,822 a tonne on Monday.
- New buyers from the tech sector add a fresh source of long-term demand.
What could weigh on prices
- Comex copper fell for three straight days on renewed Fed rate hike bets.
- Talks with tech firms have not yet produced any deal.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | Its approval is the last hurdle for the Anglo-Teck merger. |
| Brazil | Medium | Anglo's nickel mines there could close if the MMG sale is blocked. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Mining | Positive | Tech interest offers miners new sources of capital and committed buyers. |
Who gains, who loses
- Anglo American: Interest from tech firms could bring new investors and long-term buyers.
- Other copper consumers: Tech firms locking in supply could leave less copper for everyone else.
Other ways this could play out
- If a tech company takes a stake, other miners could see similar approaches.
- If China delays its approval, the Anglo-Teck merger could miss its March 2027 target.
Price risks
- A Fed rate hike could cool copper prices despite strong long-term demand.
- Weaker Chinese demand would ease the scarcity tech firms are worried about.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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