Copper has overtaken iron ore – Here are the top copper shares to target

A new report from Betashares has revealed that copper now represents a larger share of the earnings generated by Australia’s listed mining companies than iron ore. 

According to the report, based on the FY26 earnings of 42 mining/materials companies in the S&P/ASX 200 Resources Index (ASX: XJR): 

• 34.4% of earnings came from copper
• 33.4% came from iron ore

Why is this significant?

Australia’s mining industry is entering a new phase. 

Iron ore has long been the dominant source of earnings for Australia’s major miners, but in FY26, copper edged ahead for the first time across the listed mining sector. 

The shift reflects both stronger copper prices and the growing importance of copper to Australia’s largest miners, as demand rises from electrification, power infrastructure, and AI-related investment.

Importantly for investors, this doesn’t mean Australia is producing more copper than iron ore, or that copper is a bigger commodity by tonnes, exports, or total sales. 

It’s specifically about earnings/profit contribution.

Why is this happening?

Copper has benefited from demand associated with AI infrastructure, electricity grids, data centres, and the clean-energy transition. 

BetaShares said the strength in AI and clean-energy investment has been supporting copper prices, while weaker Chinese demand has limited iron-ore prices.

Copper is one of the most important materials in building global AI infrastructure and for the green energy transition. Data centres, power distribution, wiring. All of it uses copper at extraordinary scale. So, while Australian investors cannot buy the AI companies directly through a local index, Australia’s mining sector is now one of the ways to benefit from these buildouts.

How to target copper shares

This structural shift is apparent in Australia’s biggest mining companies. 

Blue-chip stocks like BHP Group Ltd (ASX: BHP) are gradually shifting their growth strategies towards copper, rather than relying as heavily on iron ore for future growth.

In FY26, copper generated more than half of BHP’s underlying EBITDA for the first time, despite the company continuing to produce record amounts of iron ore.

This makes BHP a viable option for investors looking for copper exposure. 

Other copper shares worth considering for direct exposure include: 

• Sandfire Resources Ltd (ASX: SFR) – global mineral exploration and development company, largely focused on copper
• Capstone Copper Corp (ASX: CSC) – operates as a copper producer with a diversified portfolio of operating assets focused in the Americas
• Kaoko Metals Ltd (ASX: KAO) – exploration and development company, which acquires and explores mineral projects, primarily copper and gold in Namibia

Foolish takeaway 

Copper has overtaken iron ore as the largest contributor to earnings across Australia’s listed mining sector, reflecting stronger copper prices and rising demand from AI, electrification, and energy infrastructure. 

As major miners such as BHP increasingly focus their growth strategies on copper, investors have several ways to gain exposure, from diversified blue-chip miners to more copper-focused companies. 

The post Copper has overtaken iron ore – Here are the top copper shares to target appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.