BHP Capex Seen Rising at Vicuna; Safer at Escondida

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0758 GMT - The budget for the Vicuna copper project BHP is developing with Lundin Mining is likely to rise above the current phase-one estimate of $7 billion-$8 billion, Barclays says following an analyst roundtable with BHP's CEO and CFO. "It was clear from the discussion that a higher number is likely," Barclays says. The budget for a new concentrator at BHP's Escondida mine is seen as "less at risk," the bank says. At its FY26 results, BHP increased its capex estimate for the concentrator project by 14%, to $5.4 billion-$6.3 billion, but the increase mainly reflects a larger project scope, says Barclays. "BHP feels relatively more comfortable about the capex risks" there, it says.

 

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