BHP strikes deal with AI explorer KoBold Metals

by Finploris
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Commodities, that sounds in a world dominated by electromobility and hightech kind of old-fashioned. But nothing works without raw materials. Whether it’s lithium, copper or even iron ore. The development of the electrical infrastructure depends on the supply of raw materials.

The world’s largest producer of commodities in the world is based in Australia. It is BHP. BHP’s products are essential for the world to continue to grow. Therefore, the company will team up with billionaire-backed AI exploration firm KoBold Metals to look for battery minerals like copper and nickel in Western Australia before expanding to other global locations.

Globally, shallow ore deposits have largely been discovered, and remaining resources are likely deeper underground and harder to see from the surface.

Keenan Jennings, vice-president of BHP Metals Exploration

The Silicon Valley-based startup is using artificial intelligence to find new sources of metals that power electric vehicles and renewable energy technologies. KoBold Metals has been backed by Breakthrough Energy Ventures, a climate and technology fund founded by Microsoft’s Bill Gates, Amazon’s Jeff Bezos and Bloomberg’s Michael Bloomberg. 

KoBold’s technology, what’s been described as a Google Maps for the Earth’s crust, helps miners to decide where to acquire land and drill. The algorithms can locate resources that may have eluded more traditionally-minded geologists.

We need new approaches to find the next generation of essential minerals, and this alliance will combine historical data, artificial intelligence, and geoscience expertise to uncover what has previously been hidden.

Keenan Jennings, vice-president of BHP Metals Exploration

BHP continues to benefit from strong demand from China and the rest of the world. The share currently has a dividend yield of around ten percent. The decline in the price of iron ore has put the share under pressure. However, this appears to be an overreaction of the market.

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