A truck carrying iron ore moves along a road at the Fortescue Metals Group (FMG) Christmas Creek iron ore mine located south of Port Hedland in the Pilbara region of Western Australia, November 17, 2015. Picture taken November 17, 2015.
A truck carrying iron ore moves along a road at the Fortescue Metals Group (FMG) Christmas Creek iron ore mine located south of Port Hedland in the Pilbara region of Western Australia, November 17, 2015. Picture taken November 17, 2015.

The BHP Group, which has reported a 2% rise in its annual underlying profit, will be concentrating on bolstering its copper business through ongoing and future projects.

In spite of losing the $49 billion bid for Anglo American, the Australian multinational mining company is ramping up its efforts to increase its footprint in South Australia, aimed at raising production to over 500,000 metric tonnes. BHP is also expanding its global copper assets, while reinforcing its position in Chile and Argentina, Reuters reported.

"In copper, we are in a very good position today," BHP CEO Mike Henry told investors during the presentation of the group's full-year results, Mining Weekly reported. "We have a pathway towards well over two-million tonnes a year of copper production, so our strong position is set to become even stronger."

The move is driven by the critical need for copper in the transition to clean energy. The main source of its income, iron ore, is encountering challenges due to rising supply and decreasing economic growth of China.

BHP posted a strong underlying attributable profit of $13.66 billion for the fiscal year, surpassing both the previous year's and the market's forecasts. Even after suffering a substantial $5.7 billion loss due to impairments, the company's stock increased by 2% in the first trading day, which outdid the flat Australian benchmark index, reported Mining Weekly.

"They have clearly laid out capex and growth expectations for copper where they are still looking at copper as a key commodity, clearly," said Andy Foster, a portfolio manager at Argo Investments, Reuters reported. "It's just been so hard to execute large-scale acquisitions so you have to make the most of your existing assets and then look at other opportunities."

Currently, copper makes up around 30% of BHP's earnings, but this percentage is expected to rise. The company is targeting over 500,000 metric tons annually by the early 2030s in South Australia, as part of its efforts to enhance copper output significantly. This is a significant increase from the 322,000 tons produced in the previous financial year.