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BT eyes over £2bn windfall from selling old copper amid AI demand

Created at 31 Aug · 2:16 PM1 source↑ Market-relevant
IN SHORT

BT is poised to gain over £2 billion from selling its old copper cabling within the next decade. Soaring copper prices, driven by AI data centers and electrification, are making this legacy asset highly valuable as BT transitions to full-fibre broadband.

Key Numbers

£2bn+estimated windfall from selling old copper
£99mupfront payment received by BT in 2024
£105mupfront payment received by BT in 2023
20,000 tonnescopper covered by forward sale agreements per period
nearly 10,000 tonnescopper recovered in the year to March
22,347 tonnestotal copper sold since 2023
200,000 tonnescopper Openreach expects to recover by 2030s
50mmetric tonnes demand projected by 2035
30%fall in copper theft in 2024

Who's Involved

BT
telecoms company set to profit from selling old copper
EMR
UK's largest cable granulation company and BT's recycling partner
Mike McTighe
Chair of Openreach, acknowledging financial benefit of copper market surge
Abby Chicken
Head of sustainability at Openreach, highlighting copper's strategic importance
Openreach
BT's subsidiary rolling out full-fibre broadband and managing copper recovery

↳ Why This Matters

The sale of old copper infrastructure by BT highlights how the global demand for essential materials, particularly driven by the AI boom and energy transition, can unlock significant value from legacy assets, impacting corporate balance sheets and contributing to the supply of critical resources.

Key facts

  • BT anticipates a windfall exceeding £2 billion from selling its old copper network over the next decade.
  • Copper prices have hit record highs, driven by demand from AI data centers, electronics, and the renewable energy sector.
  • BT has secured forward sale agreements with EMR for thousands of tonnes of stripped copper, receiving substantial upfront payments.
  • The company recovered a record amount of copper in the past year, with expectations to extract up to 200,000 tonnes by the 2030s.
  • Soaring copper prices and projected future supply crunches could see BT's entire copper tonnage valued at over £2 billion.

BT is on track to generate over £2 billion in the next decade by selling off its old copper network infrastructure, a move significantly boosted by the current surge in copper prices. This windfall is largely attributed to the escalating demand for copper driven by the AI market, the broader 'electrification of everything,' and the expansion of renewable energy industries.

Copper recently reached its highest-ever closing price, nearing $14,500 per metric tonne, fueled by global shortage concerns. BT has a recycling partnership with EMR, the UK's largest cable granulation firm. Under forward sale agreements, BT has already received substantial upfront payments, including £99 million in 2024 and £105 million previously, for thousands of tonnes of stripped copper.

In the year ending March, BT recovered a record nearly 10,000 tonnes of copper, more than tripling the amount from the previous year. Since beginning its copper stripping and selling program in 2023, the company has sold a total of 22,347 tonnes. Openreach, BT's infrastructure division, anticipates recovering up to 200,000 tonnes of high-grade recycled copper as it transitions customers to full-fibre broadband through the 2030s.

With current market prices and projected demand growth—expected to double to 50 million metric tonnes by 2035—BT's entire copper tonnage could be valued at over £2 billion. Abby Chicken, head of sustainability at Openreach, emphasized copper's strategic importance in the modern economy and the environmental benefits of recycling this critical resource.

The high value of copper has also led to an increase in theft. To combat this, Openreach has implemented anti-theft measures, including coating cables with a synthetic DNA tracer called SelectaDNA. This technology has contributed to a reported 30% decrease in copper cable theft in 2024.

Frequently asked questions

Copper prices are being driven by the 'electrification of everything,' essential for AI data centers, electronics, and the renewable energy industry, coupled with fears of a global shortage.

BT has already sold 22,347 tonnes since 2023 and expects to recover up to 200,000 tonnes through the 2030s, with forward sale agreements covering about 20,000 tonnes over four-year periods each.

Openreach is using measures such as coating underground cables with a synthetic DNA and UV tracer called SelectaDNA to deter thieves.

What Happens Next

01BT will continue its full-fibre broadband rollout to 30 million homes by the end of the decade.
02Openreach expects to recover up to 200,000 tonnes of copper through the 2030s.
03BT's contract with EMR for copper sales initially runs until 2028.
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How It Developed

BT is set to receive an estimated £2bn-plus windfall from selling old copper cabling over the next decade.
Copper prices have reached record highs due to increased demand from AI data centers, electronics, and renewables.
BT has a recycling deal with EMR, receiving £99m upfront in 2024 and £105m previously for surplus copper.
Forward sale agreements cover approximately 20,000 tonnes of copper over four-year periods.
BT recovered a record nearly 10,000 tonnes in the year to March, a significant increase from previous years.
The total copper recovered since 2023 is 22,347 tonnes.
Openreach expects to recover up to 200,000 tonnes of copper through the 2030s.
The market value of BT's copper tonnage could exceed £2bn at current prices, with demand projected to double by 2035.

Sources

T1
BT on track for estimated £2bn windfall from selling old copper amid AI boomThe Guardian

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