MINING giant BHP showcased its copper growth ambitions during a shareholder briefing on Monday, whilst steering clear of questions about potential major acquisitions, said Reuters.
CEO Mike Henry and CFO Vandita Pant fielded selected investor queries in their first major engagement since last week’s blockbuster Anglo American-Teck Resources merger, said the newswire.
“The copper growth story for BHP is one of the big stories,” Henry said. “We have made so much progress…We now have four big copper growth basins on top of the 28% copper growth that we have seen in recent years.”
These include the Vicuna joint venture with Lundin Mining in Argentina, the Resolution partnership with Rio Tinto in the US, Chile’s Escondida operation, and South Australian copper assets, said Reuters.
However, Henry avoided addressing whether BHP might pursue Toronto-listed NGEX Minerals, which operates in Argentina’s Vicuna district. The company also remained silent on broader merger and acquisition prospects.
The $53bn Anglo-Teck tie-up has sparked speculation about further industry consolidation, coming just over a year after BHP abandoned its own $49bn Anglo bid.
Henry highlighted the US’s investment appeal, noting power costs were half those of Australia. “The United States…was focused on drawing in mining investment, as Australia reviews productivity,” he said.
He also acknowledged challenges at BHP’s Jansen potash project in Canada, acknowledging that anticipated returns would face pressure following increased capital expenditure estimates and delayed production timelines announced in July.
Industry watchers suggest BHP is concentrating on expanding existing copper assets rather than pursuing major acquisitions during its current leadership transition period, said Reuters.