BHP Group will broaden plans to exit coal operations and review opportunities to shed aging oil and gas assets under new CEO Mike Henry’s more urgent push to reshape the world’s top miner’s portfolio for a low-emissions future.
The producer aims to sell, or spinoff, its 80% share in the BHP Mitsui Coal joint venture, which owns two coking coal operations in Australia, along with exiting thermal coal mines and some oil and gas operations, the company said Tuesday when reporting annual profits held steady at $9.1-billion, boosted by higher iron ore prices.
Henry, installed as CEO in January, is focusing BHP on supplying higher-quality iron ore and coking coal to capture China’s shift to prioritise premium raw materials for its steel sector. At the same time, he’s laying the ground for a longer-term transition to favour growth in copper and nickel to meet expected rising demand from renewable energy and the electrification of transport.
“The world is rapidly changing with decarbonisation of energy sources, population growth and the drive for higher living standards in the developing world,” the company said. “It will require us to continue to be active portfolio managers.”