Global mining and metals company, BHP believes it is set to “benefit from a flight to quality” assets in the face of global volatility and policy uncertainty.
The company, listed in Australia, London, and on the JSE, said on Thursday morning in its third quarter operational review that, year-to-date as of the end of March, it has delivered record group production in both copper and iron ore. It said it is on track to achieve full-year production in line with its guidance.
BHP CEO, Mike Henry, said the company is “poised to benefit from a flight to quality with tier one assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle” in the face of global volatility and policy uncertainty.
However, he did caution that the anticipated slowdown in economic growth across the globe caused by US President Donald Trump’s imposition of wide-ranging tariffs could impact the company.
“Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant. China's ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook,” said Henry.
While Trump has paused implementation of higher-than-expected tariffs as announced on his April 2 “Liberation Day” for three months, he is being relentless in his war against China, and that country faces a total 245% in import duties to the US. China is the world's largest consumer of several minerals, especially those crucial for the global transition to renewable energy, such as copper – and is the globe’s largest consumer of that metal.
Henry noted that BHP saw solid production of copper, iron ore, steelmaking coal, and its potash project in Canada was tracking to plan. “BHP’s performance in FY25 to date demonstrates the resilience of our business,” he said.
BHP recently vied for Anglo American’s hand in a protracted and, ultimately, failed bid. Last May, BHP offered R727 billion to buy Anglo out, which Nedbank stated was viewed by analysts as a bid to expand its portfolio of copper mines, as Anglo coveted copper mines in Peru and Chile.
Copper is a key metal in the drive to renewable energy.
After BHP’s first bid was rejected, it returned to the table with a 10% increase on the initial price. Anglo rejected both bids as too low and indicated that it was concerned about BHP’s proposed structuring of its business, which it said presented execution risks.
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