BHP

Mike Henry says nations across the world are desperate to encourage new mines, adding to his short-term optimism around China. But can Australia keep up ...

But Henry is confident that BHP has the scale, the skills and the portfolio of prospects to navigate this complexity over what should be decades of demand for its commodities. The sale of Daunia and Blackwater, which was foreshadowed by The Australian Financial Review last April, came as BHP delivered a widely expected fall in earnings for the December half, as iron ore and copper came off their recent peaks. [James Thomson](/by/james-thomson-1446yx)is a Chanticleer columnist based in Melbourne. But he’s hopeful that central bankers are about to get some relief. “There’s a great opportunity for us here to capitalise on, but other nations are seeking to eat our lunch. But Henry also says a critical minerals strategy in his native Canada is similarly aggressive, and nations throughout Asia are working overtime to encourage miners to invest.

Mining giant BHP has posted a fall in profits amid tough global economic conditions but is positive on...

In Western Australia, BHP is planning to lift iron ore production to 330 million tonnes per year as the world's lowest cost major iron ore producer. Profit from operations in the half fell more than a quarter (27 per cent) to $US10.8b ($A15.6b) on lower prices for iron ore, bad weather hitting coal production and higher royalties paid on coal in Queensland and inflation. But BHP was positive about the demand outlook in the second half of FY23 and into FY24, with China offsetting weakness in Europe and the United States. Elsewhere, BHP is growing iron ore production from record levels in the Pilbara and expanding in copper, uranium and nickel with the acquisition of OZ Minerals on track for early May. He said BHP would also pursue the NSW government to recoup the cost of thermal coal production for domestic users from the Mt Arthur mine after the state reserved supplies for power generation. BHP is seeking buyers for the Blackwater and Daunia metallurgical coal mines as the significant shift in state royalties "increases our risk and worsens the economics of these mines", chief executive Mike Henry said on Tuesday.

“Commodity prices are down — this is a cyclical industry after all,” chief executive Mike Henry told the Financial Times. “But the underlying performance of the ...

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Mining giant BHP owes it to their workers to provide ongoing community support in two central Queensland communities...

"And I call on BHP to make a commitment to providing ongoing community support - especially to the town of Blackwater which has supported the Blackwater mine for over 50 years of its operation by BHP." "BHP has long been the biggest coal mine operator in central Queensland and I believe they owe it to their workforce and the communities that have sustained them to provide some ongoing support," he said in a statement. The global mining giant is looking for buyers for its Blackwater and Daunia metallurgical coal mines in the state's Central Highlands and Isaac regions, blaming the state's coal royalties regime.

Mining giant BHP announces its intention to sell two central Queensland mines, one of which has been operating for 50 years.

He said he wanted to see the BHP guarantee worker entitlements and ongoing support to the communities affected, particularly in the Blackwater township which had been entwined with the mine for 50 years. He said the sale of the mines would affect families and businesses in the regions. The mining giant sold two metallurgical coal mines, South Walker Creek and Poitrel, in 2021, before the coal royalty hike. "[The decision] is consistent with BHP's strategy to focus our portfolio on the highest quality metallurgical coal assets sought-after by global steelmakers to support greater efficiency and lower emissions in their operations," Mr Neves said. Mining giant BHP is selling two of its central Queensland coal mines, citing a drop in profits and increased royalties in the state. The company announced on Tuesday it would be looking for buyers for its open-cut metallurgical coal mines, Daunia and Blackwater.

BHP chief executive Mike Henry says elite coking coal mines will have a long-term place in BHP's portfolio despite his decision to sell two more Queensland ...

Connect with Peter on [[email protected]](mailto:[email protected]) Daunia is the smallest volumetric producer of the mines BHP and Mitsubishi own in the Bowen Basin and it has the shortest mine life; Daunia’s 86 million tonnes of reserves is less than a tenth of the coal reserves available at Peak Downs. Blackwater uses different railways and ports to the rest of the mines in the BHP Mitsubishi joint venture and also produces the types of coal that BHP is no longer interested in producing. BHP launched a sale process on Tuesday for the Daunia and Blackwater coking coal mines less than a year after completing the sale of Queensland’s Poitrel and South Walker Creek coking coal mines to Blackwater has long loomed as the mine BHP and Mitsubishi were most likely to sell next, because it is about 200 kilometres south of the Moranbah hub where the joint venture’s other mines are located. [lobbied the Queensland government to amend legislation](https://www.afr.com/companies/mining/bhp-clears-way-for-more-qld-coal-divestments-20220411-p5acqm) to make it easier to sell mines owned under BHP and Mitsubishi’s joint venture.

Mining giant BHP has revealed plans to sell off two more of its Australian coal mines as it posted a sharp fall in half-year profit and cut its dividend.

However, Henry on Tuesday said BHP was increasingly confident that China would be a “stabilising force” for demand in 2023, offsetting slower growth in Europe and the US. “About 80 per cent of the reduction was lower commodity pries and 20 per cent was wage and cost inflation ... Henry stressed that BHP was committed to continuing to mine metallurgical coal from its six remaining Queensland mines, saying high-quality coals will be vital to helping steel-makers decarbonise by improving the efficiency of their blast furnaces. [Sign up to get it every weekday morning](/link/follow-20170101-p56j4t). Shareholders will receive an interim dividend of US90¢ a share ($1.30), down from $US1.50 the miner paid out at the same time last year. Since 2021, BHP has sold off one of its last-remaining thermal coal mines, a series of metallurgical coal mines and its entire global oil and gas division.

Please refer to the Important Notice at the end of this article¹. Six months ago, at the time of our full year results for the financial year 2022, ...

However, such was the scale of the starts ramp–up in the multi–year upswing that led up to the pandemic, the developers account for 58% of the stock of floor space underway. In financial 2022, the differential ranged from +$218/t to –$245/t and from +$140/t to –$21/t in the first half of financial 2023. 4 Paris–aligned” means a societal pathway aligned to the aims of the Paris Agreement. The rate of increase in the US producer price index (PPI) for mining machinery and equipment manufacturing moderated in the first half of financial year 2023 (+15.6% on a 12–month smoothed basis, +13.5% YoY for the month of December–2022, with the YoY rate peaking in May–2022 at 21.0%). Forward–looking statements may be identified by the use of terminology, including, but not limited to , “intend”, “aim”, “project”, “see”, “anticipate”, “estimate”, “plan”, “objective”, “believe”, “expect”, “commit”, “may”, “should”, “need”, “must”, “will’, “would”, “continue”, “forecast”, “guidance”, “trend” or similar words, and are based on the information available as at the date of this article and/or the date of BHP’s scenario analysis processes. Yet according to data assembled by S&P Global Market Intelligence, capex for copper production at miners is expected to decline in real terms between calendar 2022 and calendar 2024, (noting that inflation leads to some uplift in nominal terms), which would put real capex at just 54% of the super–cycle peak. We assess that the emerging technologies that are expected to feature in a low carbon end–state for the industry, such as green hydrogen enabled DRI–EAF and DRI–ESF, are some decades away from being deployed at scale. Moving on to the supply side fundamentals, overall seaborne supply was just 290 mt in calendar 2022, –1.7% YoY and –22 Mt from calendar 2019 levels. The metallurgical coal market has experienced both feast and famine in the pandemic era, with periods of loss–making for some producers in calendar 2020 and the first half of 2021 having given way to fly–up and then scarcity pricing for much of the time since. Half–on–half average prices were –28% lower than the second half of financial 2022. On (1) and (2), we see the composition of housing activity in the first half of calendar 2023 being relatively less steel–intensive, as developers prioritise the re–start and completion of idled projects. The resilience was front–loaded to the first half though (+14.2% YTD YoY as of June) with the inevitable slowdown underway in earnest by the beginning of the December quarter.

Australian mining giant BHP is optimistic China and India's growth will boost commodity demand, even as the company reported a steep drop in half-year ...

"We have a few of those in South America. 1 while [copper](https://www.cmegroup.com/markets/metals/base/copper.contractSpecs.html) hit $3.29 a pound on Sept. His comments come as the miner recorded a 16% revenue drop in the six months ended December, from $30.53 billion to $25.71 billion. [iron ore](https://tradingeconomics.com/commodity/ironore62) prices fell to a low of $80.03 per metric ton on Nov. "We believe that Chinese growth and Indian growth are going to provide a bit of a counterbalance and support overall growth over the next six to 12 months, and beyond," CEO Mike Henry told CNBC's "Street Signs Asia" on Tuesday. - "We believe that Chinese growth and Indian growth are going to provide a bit of a counterbalance and support overall growth over the next six to 12 months, and beyond," CEO Mike Henry said.

Diversified mining firm BHP has registered a 32% slump in underlying attributable profit for the half-year ended 31 December 2022.

We will look to maximise the value of these assets via trade sale.” BHP CEO Mike Henry: “Significant wet weather in our coal assets impacted production and unit costs, as did challenges in securing sufficient labour. BHP said in a press statement: “Whilst high-quality assets with growth potential, the Daunia and Blackwater mines would struggle to compete for capital under our capital allocation framework, including given our choices for deploying capital globally, and we are seeking to divest these assets to an operator who is more likely to prioritise the necessary investments for continued successful operation. In a statement, it said: “The lag effect of inflation and continued labour market tightness is expected to impact our cost base into the 2024 financial year.” “We expect these factors to abate in the second half and for unit costs to fall, in line with revised guidance.” [BHP](https://www.globaldata.com/company-profile/bhp) [has registered a 32% slump in underlying attributable profit](https://www.bhp.com/news/media-centre/releases/2023/02/bhp-results-for-the-half-year-ended-31-december-2022) for the half-year ended 31 December 2022, due to a decline in iron ore and copper prices.

Australian miners like BHP and Alumina Limited have been buoyed by strong demand signals in China.

But it was 40 per cent lower than the same time last year and BHP made a discretionary cut to the payout ratio, which was 69 per cent; down from 78 per cent in February last year. About $US1.95 billion of that $US3.3 billion is expected to be spent in 2023. “There is a great opportunity for us here to capitalise on. Analyst consensus suggests Rio Tinto will give shareholders a total of $US4.82 per share for the 12 months to December 31; down from $US10.20 last year. there is going to be a shortage of alumina,” he said. “China is coming back post-COVID, which I think will add to impetus in growth and demand,” he said. Connect with Peter on [[email protected]](mailto:[email protected]) BHP shareholders will receive a US90¢ interim dividend on the back of Tuesday’s $US6.59 billion ($9.53 billion) half-year profit, which was driven lower by weak iron ore prices caused by Beijing’s strict pandemic management policies. Mr Henry said BHP wanted to have a long future as a coking coal miner, but divestment of the two mines was part of a strategy to limit ownership to mines that produce the highest quality coal with the lowest carbon footprint. “It is like a slingshot like it was in the rest of the world post-COVID, it is coming back strongly. “We are now seeing uptick in new loans, uptick in house prices, uptick in business sentiment surveys and mobility data, so there is a lot there that is giving us that confidence that we will see an acceleration of the Chinese domestic economy,” he said. Resources giants say a Chinese economic revival is clearly under way with BHP chief Mike Henry declaring “green shoots” in the lending and property sectors that could stoke demand for commodities, while Alumina Limited chief Mike Ferraro likened the recovery to “a slingshot”.

BHP boss Mike Henry is rallying the dual-listed mining giant's stakeholders following the company's rare bummer of an earnings update.

During the six-month period, iron ore prices fell to a low of $80.03 per metric ton on Nov 1 while copper hit $3.29 a pound on Sept. Get the latest Stockhead news delivered free to your inbox BHP’s had a stupendous run as well, attributing the declines to lower iron ore and copper prices. Get the latest Stockhead news delivered free to your inbox. By proceeding, you confirm you understand that we handle personal information in accordance with our Privacy Policy By proceeding, you confirm you understand that we handle personal information in accordance with our Privacy Policy.

BHP's plan to divest the Daunia and Blackwater mines in Queensland follows a 32 per cent drop in half-year profits.

“And so those assets we see as having both sides through the energy transition. “The sales that we’ve announced … Chief executive officer Mike Henry yesterday made it clear other operations that are considered of a higher quality have a place in the company’s long-term plans. “Which is that as the world and the steel industry seek to decarbonise and in fact accelerate on that effort, a key route for steelmakers to be able to reduce their carbon intensity will be through more efficient blast furnace operations. “Based on all of those factors, we determined that Blackwater and Daunia would struggle to compete for capital and may be better suited to a different owner.” “Whilst high-quality assets with growth potential, the Daunia and Blackwater mines would struggle to compete for capital under our current capital allocation framework, including given our choices for deploying capital globally,” BHP said in its report.

BHP's Blackwater mine would be a “logical fit” for Coronado Global Resources, but not if the price is too high.

We want to retain a strong balance sheet and make it very accretive.” “It makes a lot of sense simply because of the proximity. Connect with Peter on [[email protected]](mailto:[email protected]) So, I think it is a logical fit. However, that doesn’t mean we will pay any price. “We have synergies when it comes to blending the products, and we have synergies on customers as well.