Anglo American generated $2.9 billion in copper earnings at a 60% margin during the first half of 2026, as CEO Duncan Wanblad warned that rising capital intensity and extended project timelines are making new copper supply increasingly expensive to bring online.

The London-based miner produced 344,000 tonnes of copper in the six months to June 30 and remains on track to meet full-year guidance of 700,000 to 760,000 tonnes. Copper contributed approximately 70% of the company’s $4.1 billion in EBITDA, underscoring the metal’s dominance following Anglo’s portfolio restructuring.

Revenue from continuing operations rose 11% to $9.93 billion, while underlying EBITDA increased 35% to $4.00 billion. The board declared an interim dividend of $0.23 per share, up from $0.07 a year earlier.

“The capital intensity of mining has risen well ahead of inflation and mining project development timelines are continuing to extend,” Wanblad said during the July 30 results presentation. Capital intensity inflation is running at almost double the consumer price index, he explained.

“As capital inflation continues, the economics of many growth projects are at risk without higher prices, and this is why we believe the copper price has to be structurally higher,” Wanblad stated.

Project development timelines have stretched dramatically. In the 1990s, it took about seven years from orebody discovery to production. Over the last decade, that has extended to almost 18 years. “If that carries on, the cycles will take longer to move from trough to peak and we’ll see much bigger swings in price,” he said.

Anglo is advancing two major copper integration projects the company describes as among the lowest capital intensity opportunities of scale in the industry.

The planned integration of Collahuasi and Quebrada Blanca could add an incremental 175,000 tonnes of copper production annually at a capital expenditure of $2 billion — or $11,000 per tonne of copper growth. “It sits right in that sweet spot: low capital intensity, relatively low execution risk, high confidence and near-term copper growth at real scale,” Wanblad said.

The Los Bronces and Andina joint mine plan, finalized with Chile’s Codelco in June, is expected to deliver 120,000 tonnes of additional copper annually, split equally between the partners. The integration is projected to unlock 2.7 million tonnes of additional copper over 21 years, creating at least $5 billion in pre-tax shared value.

Anglo’s $53 billion all-stock merger with Teck Resources remains on schedule for completion between September 2026 and March 2027, with Chinese antitrust approval the final outstanding regulatory hurdle.

“We are unlocking the full potential of Anglo American – anchored in copper, premium iron ore and crop nutrients – with a focus on delivering material value for our shareholders,” Wanblad said in a statement. “This performance stands us in very good stead as we progress the merger to form Anglo Teck – a global metals and minerals champion”.

The company reported a first-half net loss of $858 million, narrowing from $1.88 billion a year earlier, largely reflecting a writedown on its steelmaking coal business following its agreed sale to Dhilmar for up to $3.9 billion.

Net debt declined to $8.2 billion from $8.6 billion at the end of 2025. Copper unit costs fell 12% to $1.36 per pound, helped by stronger by-product credits.

“We have every confidence that we are making the right choices in terms of realising full value from our portfolio, both now and looking towards completion of our compelling combination with Teck,” Wanblad said.