BHP
| File:BHP logo.svg Logo of BHP Group Limited | |
| Company type | Public |
|---|---|
| Industry | Mining, Metals, Petroleum |
| Founded | August 1885 |
| Founder | Charles Rasp, Syndicate of Seven (including George McCulloch) |
| Headquarters | Melbourne, Victoria , Australia |
Area served | Worldwide |
| Products | Iron ore, copper, coal, gold, uranium, nickel, potash |
| Website | bhp |
BHP Group Limited, originally established as the Broken Hill Proprietary Company, is a publicly traded Australian multinational corporation specializing in mining and metals. It was founded in August 1885 and maintains its headquarters in Melbourne, Victoria.
By 2024, BHP stands as the largest mining enterprise worldwide based on market capitalization and ranks third globally by revenue. The company primarily concentrates on the extraction and sale of iron ore, copper, and coal.
The entity known as BHP Billiton emerged in June 2001 following the merger between the Australian Broken Hill Proprietary Company Limited (BHP) and the Anglo–Dutch firm Billiton plc. This merger resulted in a dual-listed company trading on both the Australian Securities Exchange and the London Stock Exchange.
In 2015, certain assets were separated from BHP Billiton to form South32, while the remaining streamlined business rebranded simply as BHP. By 2018, BHP Billiton Limited and BHP Billiton plc transitioned into BHP Group Limited and BHP Group plc respectively. In January 2022, BHP withdrew its listing from the London Stock Exchange, consolidating its presence solely on the Australian Securities Exchange. As of 2022, BHP holds the distinction of being Australia's largest corporation and the leading mining company globally by market value. In 2023, it was positioned at number 90 on the Forbes Global 2000 list.
Billiton
Billiton Maatschappij was established on 29 September 1860 when its shareholders ratified its articles of association at the Groot Keizershof hotel located in The Hague, Netherlands. Shortly thereafter, the company secured mineral rights for Billiton (Belitung) and Bangka Islands within the Netherlands Indies archipelago near eastern Sumatra.
Initially, Billiton focused on tin and lead smelting operations within the Netherlands, later expanding during the 1940s into bauxite mining activities in both Indonesia and Suriname. In 1970, ownership transferred to Shell. The company also developed a tin smelting and refining facility in Phuket, Thailand, known as Thaisarco (Thailand Smelting And Refining Company, Limited).
In 1994, South African firm Gencor acquired Billiton’s mining division but excluded its downstream metal processing units. Billiton was spun off from Gencor in 1997 and subsequently merged with Gold Fields in 1998. That same year, Billiton plc entered the ranks of the FTSE 100 Index. The merger between Billiton plc and Broken Hill Proprietary Company Limited (BHP) occurred in 2001, forming BHP Billiton.
Broken Hill Proprietary Company
The Broken Hill Proprietary Company Limited (BHP), often referred to as "the Big Australian," was incorporated on 13 August 1885 to operate a silver and lead mine at Broken Hill, located in western New South Wales, Australia. The company’s shares were first offered publicly on 10 August 1885.[1] The inaugural shipment of ore was processed at Spotswood, Victoria, yielding 35,605 ounces of silver which attracted considerable attention from investors.
The initial claim over the Broken Hill deposit was made by Charles Rasp along with a group known as the Syndicate of Seven, which included George McCulloch. As exploration expenses increased, some original participants sold their holdings, leaving nine shareholders at the point of significant success; among them were Rasp, McCulloch, W. R. Wilson, and William Jamieson.[2]
John Darling, Jr. became a director in 1892 and served as chairman from 1907 to 1914.[3]
Prompted by New South Wales Minister Arthur Hill Griffith in 1915, BHP expanded into steel production with the establishment of Newcastle Steelworks. This strategic move addressed technical challenges related to processing lower-grade sulphide ores found at Broken Hill. The identification of iron ore near Spencer Gulf combined with advancements in froth flotation technology allowed for effective extraction of metals from tailings.[4] During World War II, although targeted by Japanese attacks, Newcastle steelworks continued operations.[5]
Operations at Newcastle ceased in 1999,[6] with its long products steel segment spun off as OneSteel in 2000.[7]
In the 1950s, BHP ventured into petroleum exploration which expanded significantly following oil and natural gas discoveries in Bass Strait during the subsequent decade.[8]
BHP broadened its international mining footprint through projects such as Papua New Guinea’s Ok Tedi copper mine—an operation that later faced legal disputes over environmental concerns.[9] More prosperous undertakings included securing majority ownership (57.5%) of Chile’s Escondida copper mine and developing Canada’s Ekati Diamond Mine. BHP managed Ekati from its inception in 1998 until divesting its interest to Dominion Diamond Corporation in 2013 amid production declines.[10]
BHP Billiton
The merger between BHP and Billiton in 2001 resulted in the creation of BHP Billiton. The following year, flat steel products were separated to establish BHP Steel, which was rebranded as BlueScope in 2003.
In March 2005, BHP Billiton initiated a US$7.3 billion acquisition bid for WMC Resources, securing ownership of the Olympic Dam mine in South Australia—rich in copper, gold, and uranium—as well as nickel operations located in Western Australia and Queensland, along with a fertiliser manufacturing plant in Queensland. By August 2005, the company had achieved full ownership.
On 8 November 2007, BHP Billiton proposed an all-share offer to acquire its competitor Rio Tinto, but the offer was declined due to perceived undervaluation. A hostile takeover attempt was announced in February 2008 but was ultimately withdrawn in November amid the impact of the 2008 financial crisis.
Share prices reached a peak of A$48.90 in May 2008 amid speculation regarding a substantial stake purchase by Chinese firm Chinalco. Declining nickel prices led BHP Billiton to halt operations at the Ravensthorpe Nickel Mine in January 2009 and close the Pinto Valley mine in the United States, resulting in approximately 6,000 job losses.
In December 2009, the company sold the Ravensthorpe mine to Canadian firm First Quantum Minerals for US$340 million, reflecting a significant impairment charge of US$3.6 billion.
After acquiring Athabasca Potash for US$320 million in January 2010, BHP Billiton was projected to meet around 15% of global potash demand by 2020.
BHP Billiton launched a hostile bid valued at US$40 billion for PotashCorp in August 2010, aiming to broaden its portfolio beyond resources sensitive to carbon exposure such as coal and iron ore. However, opposition from the Government of Saskatchewan and a block under the Investment Canada Act led to the withdrawal of this offer in November 2010.
On 22 February 2011, BHP Billiton acquired Chesapeake Energy's Fayetteville shale assets for $4.75 billion, with plans to invest heavily to triple gas output over the next decade. This expansion continued with the purchase of Petrohawk Energy for $12.1 billion in July 2011 to further enhance shale gas holdings.
In August 2012, due to an economic slowdown in China, BHP Billiton postponed its planned US$20 billion expansion of the Olympic Dam copper project and suspended approvals for major developments. As part of scaling back its Australian resource ambitions, it divested the Yeelirrie Uranium Project to Canadian company Cameco.
On 19 August 2014, BHP Billiton announced plans to establish an independent metals and mining entity by separating selected aluminium, coal, manganese, nickel, and silver assets. This new company became known as South32, listed on the Australian Securities Exchange, JSE, and London Stock Exchange.
In 2015, subsidiaries located in Southern Africa were spun off into South32. Additionally, BHP Billiton paid a $25 million penalty to the U.S. Securities and Exchange Commission due to violations of the Foreign Corrupt Practices Act linked to its hospitality activities at the 2008 Beijing Olympics involving government officials from countries where it operated.
August 2016 marked a significant downturn for BHP Billiton with an annual loss amounting to $6.4 billion. Later that year, the company announced plans to increase investments within its petroleum sector.
In February 2017, BHP Billiton committed $2.2 billion towards BP’s Gulf of Mexico platform. That same year saw labor unrest at Chile’s Escondida copper mine triggered by wage freezes and reduced bonuses; these disputes resulted in strikes and shipment delays that contributed to a 4% rise in copper prices.
In April 2017, activist hedge fund Elliott Advisors suggested spinning off U.S.-based petroleum assets and restructuring stock listings; however, opposition from the Australian government led BHP Billiton to dismiss this proposal citing excessive costs and associated risks.
BHP
In May 2017, BHP Billiton underwent a rebranding, shortening its name to BHP, first in Australia and subsequently worldwide, replacing the tagline "The Big Australian" with "Think Big." This transformation process had commenced in late 2015.
By August 2017, BHP announced intentions to divest its US shale oil and gas assets, engaging Barclays and Citi to manage the sale. In July 2018, the company finalized an agreement to sell these shale holdings to BP for $10.5 billion, marking a strategic move to return capital to shareholders. Subsequently, in September 2018, BHP completed the disposal of its Fayetteville Onshore gas assets in the United States to Merit Energy.
In August 2021, BHP declared its withdrawal from the oil and gas industry by merging its hydrocarbon operations with Woodside Energy, Australia's leading independent gas producer. At the same time, BHP planned to delist from the London Stock Exchange and consolidate its listing exclusively on the Australian Securities Exchange; this transition was completed in January 2022.
In April 2023, BHP expanded its copper and gold mining portfolio by acquiring Oz Minerals for $9.6 billion, while maintaining most of Oz Minerals’ workforce in South Australia.
For the fiscal year 2021-2022, BHP reported net profits exceeding $34 billion—a 34% increase—on revenues of $65 billion, up 14%. The coal segment recovered strongly with profits approaching $9 billion after previously posting losses, while iron ore earnings amounted to $21.7 billion despite a decline of $4.6 billion. This robust profit growth supported a record dividend distribution totaling $7.6 billion for the half-year ending December 31.
In April 2024, BHP submitted a £31 billion bid to acquire Anglo American plc; however, the offer was dismissed as "highly unattractive." A subsequent revised proposal was also rejected in May 2024.
By July 2024, BHP partnered with Lundin Mining to jointly acquire Filo Corp. for $3.2 billion via a Canadian plan of arrangement and establish a 50/50 joint venture focused on developing the Filo del Sol and Josemaria projects.
Corporation
Up until January 2022, BHP operated as a dual-listed company consisting of Australian BHP Billiton Limited and British BHP Billiton plc, which were separately listed but governed as one entity with unified boards and executive management. Its global headquarters were situated in Melbourne, Australia, complemented by UK headquarters in London. Significant offices were also maintained across the United States, Canada, Chile, Malaysia, and Singapore.
BHP's securities were traded on several stock exchanges:
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On 19 November 2018, the entities BHP Billiton Limited and BHP Billiton plc were renamed as BHP Group Limited and BHP Group plc respectively.
Senior management
American executive Paul Anderson was appointed in 1998 to lead a restructuring of BHP that ultimately resulted in merging with London-based Billiton. Brian Gilbertson succeeded as CEO in July 2002 but resigned within six months due to disagreements with the board.
Chip Goodyear took over leadership early in 2003 and served until his retirement in September 2007. Marius Kloppers then assumed the CEO position. In 2013, Andrew Mackenzie—previously head of Non-Ferrous operations—became CEO. On January 1, 2020, Mike Henry, formerly responsible for Australian mining operations, replaced Mackenzie as chief executive officer.
Business trends
Significant financial indicators for BHP (fiscal year ending 31 December) demonstrate its market trajectory:
| Revenue (USD billion) |
EBIT (USD billion) |
Total Assets (USD billion) |
Market cap (USD billion) | |
|---|---|---|---|---|
| 2000 | 8.65 | 0.32 | ... | 18.81 |
| 2005 | 26.72 | 9.48 | 41.84 | 101.19 |
| 2010 | 52.79 | 20.12 | 88.85 | 255.71 |
| 2011 | 71.73 | 31.91 | 102.92 | 186.61 |
| 2012 | 70.47 | 24.86 | 129.27 | 205.15 |
| 2013 | 53.86 | 21.85 | 139.17 | 180.33 |
| 2014 | 56.76 | 22.55 | 151.41 | 127.84 |
| 2015 | 44.63 | 8.76 | 124.58 | 69.19 |
| 2016 | 28.56 | 2.94 | 118.95 | 96.48 |
| 2017 | 35.74 | 12.63 | 117.00 | 122.68 |
| 2018 | 43.12 | 16.25 | 111.99 | 121.93 |
| 2019 | 44.28 | 16.61 | 100.86 | 137.78 |
| 2020 | 38.92 | 14.07 | 105.73 | 165.00 |
| 2021 | 56.92 | 25.15 | 108.92 | 152.29 |
| 2022 | 65.09 | 34.27 | 95.16 | 157.01 |
| 2023 | 53.81 | 23.55 | 101.29 | 172.85 |
Operations
BHP manages mining operations across Australia, North America, and South America, concentrating on five principal commodities:
New South Wales
- Mount Arthur coal mine
Queensland
- Broadmeadow (50%) – BHP Mitsubishi Alliance
- Goonyella (50%) – BHP Mitsubishi Alliance
- Hay Point coal terminal
- Peak Downs (50%) – BHP Mitsubishi Alliance
- Saraji (50%) – BHP Mitsubishi Alliance
- Caval Ridge (50%) – BHP Mitsubishi Alliance
South Australia
Western Australia
- Area C mine
- Eastern Range mine
- Jimblebar mine
- Kalgoorlie
- Kambalda
- Kwinana Beach
- Leinster, Western Australia
- Mount Keith Mine
- Mount Whaleback mine
- Nickel West
- Nimingarra Iron Ore Mine, co-owned with Itochu and Mitsubishi Corporation
- North West Shelf Venture (holding 16.67% in LNG phase, 8.33% in domestic gas phase)
- Orebodies 18, 23 and 25 mine
- Port Hedland
- South Flank mine
- Yandi mine
- Yarrie mine
Brazil
- Samarco: a joint venture equally held with Vale (company). This operation was linked to the Bento Rodrigues dam disaster, recognized as the most severe environmental accident in Brazilian mining history, resulting from the failure of two iron ore tailings dams at Bento Rodrigues, Mariana.
Canada
- Jansen potash development project located in Saskatchewan
Chile
- Pampa Norte area includes:
- Cerro Colorado mine (closed temporarily since 2023)
- Spence mine
- Minera Escondida featuring:
- Escondida mine
- Filo Corp project:
- Filo del Sol (planned collaborative development with Lundin Mining)
Peru
- Non-operated asset: Antamina Mine
BHP Foundation
Supported by BHP, the BHP Foundation had sponsored 38 initiatives across 65 nations as of October 2023, with Australian programs emphasizing Indigenous empowerment and youth development through partnerships with organisations such as Reconciliation Australia.
Impact on climate
BHP is identified as one of the 90 fossil fuel enterprises accountable for approximately two-thirds of the world's greenhouse gas emissions since the onset of industrialization. Its total emissions up to 2010 were estimated at 7,606 million tonnes of CO2 equivalent, representing roughly 0.52% of global industrial emissions, positioning it as the 19th-largest corporate emitter. According to company disclosures, around 10% of these emissions originate from its direct operations, while the remaining 90% are linked to products sold. BHP has tracked its direct greenhouse gas emissions since 1996 but encountered criticism in 2013 for resisting carbon pricing initiatives in Australia. In June 2024, BHP revealed advancements toward achieving a 30% reduction in emissions by 2030 compared to 2020 levels, incorporating carbon offset strategies within its $4 billion framework.
For the fiscal year ending June 2020, BHP reported combined direct and indirect CO2 equivalent emissions totaling 15,800 kilotonnes.
| Jun 2015 | Jun 2016 | Jun 2017 | Jun 2018 | Jun 2019 | Jun 2020 |
|---|---|---|---|---|---|
| 38,300 | 18,000 | 16,300 | 17,000 | 15,800 | 15,800 |
Ok Tedi environmental catastrophe
The Ok Tedi environmental catastrophe caused extensive damage along the Ok Tedi River and Fly River in Papua New Guinea's Western Province from approximately 1984 until 2013. In 1999, BHP revealed that for over ten years it had discharged more than 90 million tons of mining waste annually into the river system, severely affecting downstream communities, agriculture, and fishery resources. The pollution extended over significant stretches of both the Ok Tedi and Fly Rivers and across a broad area. BHP’s CEO Paul Anderson admitted that the mining operation conflicted with the company’s environmental principles and expressed regret over their involvement. During the 1990s, affected populations in the lower Fly Region, including the Yonggom community, pursued legal action against BHP, culminating in a $28.6 million settlement outside court. Environmental specialists estimate that full remediation efforts could require up to three centuries.
Bento Rodrigues dam failure
In 2015, BHP was implicated in the Bento Rodrigues tailings dam failure, recognized as Minas Gerais state's most severe environmental disaster in Brazil. On November 5th, a tailings dam near Mariana—managed by Samarco, a joint venture between BHP and Vale—collapsed catastrophically. The ensuing mudslide obliterated Bento Rodrigues town, resulted in 19 fatalities, injured over fifty individuals, and caused substantial ecological harm along the Rio Doce river and Atlantic coastline. Investigations identified construction and design deficiencies as primary causes of the collapse. By June 2018, Samarco alongside Vale and BHP reached an agreement with Brazilian authorities to pause a $7 billion civil lawsuit for two years while addressing a larger federal lawsuit valued at $55 billion seeking restitution for social, environmental, and economic damages.
Overexploitation of aquifers in Atacama Desert
BHP has been accused of extracting water beyond authorized limits from aquifers in the Atacama Desert region, leading to significant declines in groundwater levels and adversely affecting local communities’ livelihoods; many residents were compelled to relocate as a result. In January 2021, Chile’s Supreme Court upheld indigenous groups’ objections concerning BHP’s water use and impacts on wetlands. Subsequently, by July that year, the court ordered BHP to recommence the permitting process for operations at Cerro Colorado. In 2023, this mine ceased activities after its permit to draw water from the Lagunillas aquifer expired without renewal. BHP’s subsidiary Pampa Norte has plans to initiate development work by 2028 with intentions to reopen Cerro Colorado around 2030 utilizing seawater desalination technology to extend its lifespan by two decades.
Starting in 2022, indigenous Atacameño communities filed lawsuits against BHP's Minera Escondida, Albemarle, and Minera Zaldívar concerning damage to the Monturaqui-Negrillar-Tilopozo Aquifer, with Chile’s Consejo de Defensa del Estado joining these legal actions. Minera Escondida contended that due to slow groundwater movement, extraction impacts had yet to manifest downstream and attributed most damage primarily to other companies involved. The litigation concluded in December 2024 through a conciliation agreement requiring BHP’s Minera Escondida along with other defendants to provide economic, social, and environmental reparations to the indigenous Comunidad de Peine while addressing harm caused to Tilopozo meadows as well as La Punta and La Brava lakes.
Cultural challenges
Between 2019 and 2021, BHP documented six incidents of sexual assault alongside 73 cases involving sexual harassment. Research conducted by The Western Mine Workers' Alliance revealed that approximately two-thirds of female FIFO mining employees encountered verbal sexual harassment, with 36% of women and 10% of men reporting such experiences within the previous year. In response to these findings, BHP dismissed or permanently barred 48 individuals from its operational sites.
Additional major incidents
On 16 November 2007, a helicopter operated by BHP Billiton crashed in Angola amid adverse weather conditions, resulting in the deaths of all five passengers, including high-ranking company officials. The accident took place close to the Alto Cuilo diamond exploration camp located in Lunda Norte. Subsequently, BHP Billiton halted its activities in Angola.