Nexa Eyes BHP’s Brazilian Copper and Gold Assets Amid Expansion Push

Nexa Resources (NYSE:NEXA) is reportedly in advanced discussions to acquire Brazilian mining assets from BHP Group Ltd (ASX:BHP), according to Brazil’s largest financial daily, Valor Economico. The deal would expand Nexa’s portfolio with additional copper and gold projects, key metals for the electric vehicle and renewable energy sectors.

The talks, guided by Santander (BME:SAN), come as BHP reassesses its global portfolio following its $6.3 billion acquisition of Oz Minerals in May 2023. That purchase was aimed at securing critical minerals needed for the global energy transition. However, BHP has since indicated plans to streamline its assets, potentially divesting smaller, non-core holdings, particularly outside its core iron ore operations, which remain central to its Brazil strategy.

While no official details have been disclosed, sources suggest the assets in question were previously owned by Oz Minerals. BHP’s limited interest in selling iron ore projects contrasts with growing industry focus on copper and gold, which are seeing increased demand due to electrification trends and macroeconomic uncertainty.

Luxembourg-based Nexa Resources has significant mining operations in Brazil and Peru, with zinc and copper as its primary products. An acquisition of BHP’s Brazilian copper and gold assets would further solidify Nexa’s position in Latin America’s mining sector and align with its long-term strategic growth goals.

The potential deal underscores a broader trend of consolidation and portfolio optimization among major miners, as companies look to balance capital allocation with exposure to high-growth minerals essential to the green energy transition. Industry observers will be watching closely for confirmation of the transaction and its potential impact on regional mining dynamics.