It is Copper that BHP is after in Anglo American bid. Anglo American produces roughly 1/2 of what BHP produces. A combination would boost BHP's copper production by >50%.
I think it serves to diversify BHP's reliance on iron ore in view of (1) China's subpar economy and shifting towards higher grade ore (2) emergence of new competition in Simandou mine ahead in 2025 and reducing large reliance on China.
And with copper in deficit and a critical mineral in electrification needs, it is hedging its bets.
BHP had considered lithium before, but copper was always going to be a more widely used resource.
BHP has behaved less correlated with iron ore pricing in recent times, because of the rise of copper.
