On July 8, BHP Group fell 3.1% in pre-market trading, trading at $77.79/share, with turnover of $237,600. The decline was driven by mounting capital allocation concerns following the approval of a massive copper mine expansion in Chile.

BHP secured approval from Chile's Antofagasta Environmental Assessment Commission for early-stage works on the Escondida copper mine expansion, involving sulfide leaching and electricity upgrades costing approximately $1.3 billion. The overall investment is projected at $10.7 billion to $14.7 billion. The company had previously recorded a $2.3 billion impairment on its Jansen Stage 2 potash project in Canada after cost estimates rose to $6.9 billion from $4.9 billion, intensifying short-term capital pressure.

Adding to headwinds, approximately 150 to 200 workers at BHP's Port Hedland facility in Western Australia reportedly plan an eight-hour strike on July 16 over pay and conditions, threatening an estimated $120 million in revenue. The broader Diversified Metals and Mining sector traded lower, with Rio Tinto down 3.47% and Teck Resources down 3.7%.

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