Business & Finance
BT projected to gain over £2bn from selling legacy copper cables
High global copper prices, fueled by the expansion of AI data centers and renewable energy, are boosting the value of decommissioned infrastructure in the UK.
The short version
- UK telecoms firm BT is on track for an estimated £2 billion-plus windfall over the next decade by recycling and selling legacy copper cabling.
- The surge in value is driven by record-high global copper prices, spurred by the rapid growth of artificial intelligence data centers and renewable energy infrastructure.
- The copper is being recovered by BT's subsidiary, Openreach, as it transitions the UK's telephone and broadband network to full-fibre connections.
Key facts
- BT is extracting copper cabling through its subsidiary Openreach, which expects to recover up to 200,000 tonnes of the metal through the 2030s.[The Guardian]
- Global copper prices reached a record closing high of $14,294 per metric tonne amid rising demand and global shortage fears.[The Guardian]
- BT has a recycling agreement running through 2028 with EMR, the UK's largest cable granulation company.[The Guardian]
- BT recently received a £99 million upfront payment under a forward sale agreement, following a previous upfront payment of £105 million.[The Guardian]
- To combat a rise in metal thefts targeting infrastructure, Openreach has deployed synthetic DNA and UV tracers to coat underground cabling.[The Guardian]
What remains uncertain
- The precise financial windfall remains subject to future market price volatility, though current prices value the total projected tonnage above £2 billion.[The Guardian]
Sources
- BT on track for estimated £2bn windfall from selling old copper amid AI boomThe Guardian - World