The BHP Group Ltd (ASX: BHP) share price is rising today amid news of a new copper deal.
BHP shares are climbing 0.73% and are currently trading at $49.76. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.05% today.
Let's take a look at what could be weighing on the BHP share price today.
Image source: Getty Images
What's going on?
BHP has entered a deal with Canadian company Mundoro Capital Inc. (TSXV: MUN) to explore copper in Serbia.
In a release overnight, Mundoro said it had entered into a "definitive agreement" with a wholly owned subsidiary of BHP. This will provide BHP with the right to earn an option in three copper exploration areas held by Mundoro.
The copper projects are located within and near the Timok Magmatic Complex in Serbia.
Commenting on the news, Mundoro CEO Teo Dechev said:
Mundoro welcomes BHP as an exploration partner that recognizes the potential of further exploration in the western Tethyan Belt.
The news comes after BHP entered a scheme implementation deed to potentially acquire 100% of copper miner OZ Minerals Limited (ASX: OZL) in late December. The proposal is subject to approval by Oz Minerals shareholders at a meeting likely to be held in late March or early April 2023.
The copper price edged higher overnight amid stronger demand from China. Copper lifted 0.3% to US $9,356 a tonne. In a research note this morning, ANZ senior economist Catherine Birch said:
Copper edged higher as supply risks added to the positive tone as investors look to stronger demand from China.
The reopening of the world's second largest economy is expected to unleash a wave of pent-up demand.
BHP is also a major iron ore producer. The iron ore price has fallen 0.18% to US$121.94 a tonne, trading economics data shows. The share price of fellow iron ore giant Rio Tinto Limited (ASX: RIO) is down 0.1% today, while Fortescue Metals Group Limited (ASX: FMG) shares are climbing 0.4%.
BHP share price snapshot
The BHP share price has soared nearly 23% in the last year. In the past month, BHP shares have climbed 7.8%.
BHP has a market capitalisation of about $252 billion based on the current share price.
