BHP’S incoming CEO Brandon Craig has signalled that acquisitions will remain part of the mining giant’s growth strategy, with copper firmly in focus, said Bloomberg News.
Citing Craig’s presentation at the Bank of America Global Metals, Mining & Steel conference in Miami on Tuesday, the newswire said BHP would pursue “value-accretive” opportunities rather than expansion for its own sake.
“We’ll continue disciplined, consistent growth — developing the pipeline already in front of us and staying ready to act when value-accretive opportunities emerge,” he said.
Craig takes over from Mike Henry on July 1 and is widely regarded by the BHP board as a continuity appointment, said Bloomberg.
His priorities include stepped-up exploration, partnerships with peers to unlock value in adjoining operations, and bolt-on acquisitions where the financial case is compelling. “One of my priorities will be ensuring we have options to grow well beyond 2035,” he said.
Copper has become BHP’s most important earnings driver, with income from the electrification metal overtaking that from iron ore in the six months to 31 December.
The comments come as global miners shift into a more assertive expansion mode following years of capital restraint in the aftermath of an earlier era of costly overspending. Under Henry, BHP made two unsuccessful bids for Anglo American.
Craig’s remarks were measured, however, with dealmaking sentiment in banking circles clouded by uncertainty stemming from the Middle East conflict.
His emphasis on bolt-on transactions and partnerships suggests BHP is unlikely in the near term to pursue the kind of transformative deal that defined Henry’s tenure — at least until conditions improve.
