BHP Group is to merge its oil and gas operations with Woodside Petroleum Ltd as the biggest miner positions itself for a global shift away from fossil fuels and prepares to plow US$5.7 billion into a massive new fertilizer mine in Canada.
After the deal, BHP shareholders are to own about 48 percent of Woodside, the miner said in a statement yesterday.
The company also said that it would eradicate its dual-listing structure and move to a single primary listing in Australia.
Photo: Reuters
BHP chief executive officer Mike Henry, who took over in January last year, is pivoting toward what the firm calls “future facing” commodities — metals and minerals vital to global efforts to reduce emissions, electrify cities and feed people.
The announcements also help clarify question marks for investors, who have been waiting for years for a decision on Jansen, while the company has said previously its dual listing was up for discussion.
BHP generates the bulk of its profits from iron ore and copper — a metal that is central to a green-energy transition — and benefited from soaring prices for both commodities over the past year.
The company reported record free-cash flow for the year through June and said that it would pay a final dividend of US$10.1 billion.
Underlying profit rose 88 percent to US$17.08 billion for the year.
The commodities giant is getting out of oil and gas as the fossil-fuel industry grapples with global pressure from investors and governments over climate action, prompting some larger oil rivals to shrink their core production and add renewable energy assets.
While BHP has said it expects demand to remain strong for at least another decade, the company wants to avoid getting stuck with assets that are expected to become more difficult to sell.
BHP has also finally approved the first stage of construction of the Jansen potash mine in Saskatchewan, Canada, after years of wavering over the huge price tag.
The operation, expected to start production in 2027, is to make it one of the world’s top producers of the crop nutrient.
“Potash provides BHP with increased leverage to key global mega-trends, including rising population, changing diets, decarbonization and improving environmental stewardship,” the company said.
It is also the latest sign that the biggest miners are ready to open their wallets to invest in new mines after years of austerity.
The industry has been focused on shareholder returns and debt reduction after being penalized by investors for overspending.
Smaller rival Rio Tinto Group last month announced that it plans to spend US$2.4 billion building a lithium mine in Serbia as it also seeks to expand in battery metals.
BHP has already spent about US$4.5 billion on Jansen and dug two 1,000m shafts, but held off on a final development decision as it weighed the risks of the large investment.
Potash prices have jumped this year amid strong demand, as well as worries about supply after Belarus, one of a handful of producing nations, was hit by sanctions.
The Jansen approval follows BHP’s announcement last month that it agreed to buy a nickel mine developer in Canada.
It is also expanding existing nickel operations in Australia and building a stake in a copper company in Ecuador.
In Italy’s storied gold-making hubs, jewelers are reworking their designs to trim gold content as they race to blunt the effect of record prices and appeal to shoppers watching their budgets. Gold prices hit a record high on Thursday, surging near US$5,600 an ounce, more than double a year ago as geopolitical concerns and jitters over trade pushed investors toward the safe-haven asset. The rally is putting undue pressure on small artisans as they face mounting demands from customers, including international brands, to produce cheaper items, from signature pieces to wedding rings, according to interviews with four independent jewelers in Italy’s main
Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry, which has refused to rule out any options to counter excessive foreign exchange volatility. Takaichi later softened her stance, saying she did not have a preference for the yen’s direction. “People say the weak yen is bad right now, but for export industries, it’s a major opportunity,” Takaichi said on Saturday at a rally for Liberal Democratic Party candidate Daishiro Yamagiwa in Kanagawa Prefecture ahead of a snap election on Sunday. “Whether it’s selling food or
CONCERNS: Tech companies investing in AI businesses that purchase their products have raised questions among investors that they are artificially propping up demand Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday said that the company would be participating in OpenAI’s latest funding round, describing it as potentially “the largest investment we’ve ever made.” “We will invest a great deal of money,” Huang told reporters while visiting Taipei. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.” Huang did not say exactly how much Nvidia might contribute, but described the investment as “huge.” “Let Sam announce how much he’s going to raise — it’s for him to decide,” Huang said, referring to OpenAI
The global server market is expected to grow 12.8 percent annually this year, with artificial intelligence (AI) servers projected to account for 16.5 percent, driven by continued investment in AI infrastructure by major cloud service providers (CSPs), market researcher TrendForce Corp (集邦科技) said yesterday. Global AI server shipments this year are expected to increase 28 percent year-on-year to more than 2.7 million units, driven by sustained demand from CSPs and government sovereign cloud projects, TrendForce analyst Frank Kung (龔明德) told the Taipei Times. Demand for GPU-based AI servers, including Nvidia Corp’s GB and Vera Rubin rack systems, is expected to remain high,
RSS