By Alexander Miller, consultant in energy and commodities markets, for Eurasia Business News, September 10, 2025. Article n°1779
A record-breaking mining megadeal in 2025 is drawing global attention to copper, which is increasingly sought after due to surging demand from artificial intelligence (AI) infrastructure and rising military spending. The recently announced $50 billion merger between Anglo American and Teck Resources creates Anglo Teck, a key player now controlling about 10% of world copper output. This wave of consolidation follows a powerful market rally driven by the metal’s essential role in electrification, defense, and advanced technology systems.
Key Details of the Megadeal
Anglo American and Teck Resources will merge as equals; Anglo shareholders will hold about 62.4% and Teck shareholders 37.6% of the new entity. This merger deal will form the Anglo Teck group, a global critical minerals champion and top five global copper producer, headquartered in Canada and expected to offer investors more than 70% exposure to copper.
Anglo Teck’s combined operations will feature six world-class copper assets, supported by premium iron ore and zinc portfolios, with headquarters in Vancouver and public listings across major exchanges.
The company forecasts annual pre-tax synergies of $800 million after four years, and up to $1.4 billion in annual revenue synergies over the long term, mainly from their adjacent copper mines in Chile.
Why AI and Wars Matter for Copper
Artificial Intelligence: The development and deployment of AI rely on vast new data centers, advanced semiconductors, and superconducting technology—each requiring extensive copper wiring for power and cooling, making the metal indispensable for these projects.
Military Spending: Modern defense systems, vehicles, communications, and renewable energy platforms for militaries all depend on copper for reliability and performance. Increased defense budgets worldwide amid wars in Ukraine, Middle East and tensions in East Asia are creating new demand for copper.
This combination of technological growth and geopolitical tension is pushing copper demand far beyond what mines currently supply, driving prices higher and prompting giants like Anglo Teck to scale up resource development.
Strategic Importance for Global Markets
Copper’s role in energy transition, electrification, AI, and security is causing supply bottlenecks and making mergers appealing for miners seeking to expand scale and efficiency.
The deal signals a long-term confidence in copper prices, expected to rise as technology and military needs intensify.
Regulatory approval is needed, but both boards strongly support the merger, anticipating benefits across North America, Latin America, Southern Africa, and Europe.
This megamerger represents a pivotal moment in mining, with AI and defense as powerful new engines behind soaring global copper consumption and industry consolidation.
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