BHP

BHP is an Australian multinational mining and metals company headquartered in Melbourne. Its modern identity developed from the Broken Hill Proprietary Company, established in 1885 after the discovery of the exceptionally rich silver, lead and zinc deposits at Broken Hill in New South Wales. The company initially built its business around mining and mineral processing, but over time expanded into steelmaking, petroleum, coal, copper, uranium, nickel, potash, diamonds and natural gas. The name BHP is commonly associated with the phrase “the Big Australian,” reflecting the company’s long history and scale within Australian industry. The other major strand of BHP’s history is Billiton, a Dutch mining enterprise founded in 1860. Billiton began with mineral rights and tin-related activities in the East Indies and later developed bauxite, aluminium and other mining interests. After a series of ownership and corporate changes, Billiton became a major international resources group. In June 2001, the Australian BHP and Anglo-Dutch Billiton combined to create BHP Billiton through a dual-listed company structure. The arrangement preserved separate legal entities in Australia and the United Kingdom while operating under common management and a unified brand. During the 2000s, BHP Billiton pursued large-scale growth and diversification. It acquired WMC Resources in 2005, adding the Olympic Dam copper, uranium and gold operation and other Australian assets. It also sought to expand through major international transactions, including unsuccessful bids for Rio Tinto and PotashCorp. The company bought Chesapeake Energy’s Fayetteville shale assets and Petrohawk Energy in 2011, greatly increasing its exposure to United States shale gas. These moves were later followed by a more disciplined approach to capital allocation as commodity prices weakened and large projects became more difficult to justify. BHP’s portfolio was reshaped substantially after the global financial crisis and during the subsequent commodity-cycle downturn. It closed or sold selected nickel and petroleum assets, delayed the planned expansion of Olympic Dam, and separated a group of aluminium, coal, manganese, nickel and silver operations into South32 in 2015. The demerger left BHP with a more concentrated portfolio, especially in iron ore, copper, coal and petroleum. In 2018, the former BHP Billiton legal entities were renamed BHP Group Limited and BHP Group plc, while the public-facing brand was shortened to BHP. In January 2022, the group ended its London Stock Exchange listing and became solely listed in Australia. BHP’s principal activities include extracting, processing and marketing iron ore, copper and metallurgical coal, with additional interests historically or currently connected to energy and other minerals. Its major assets have included the Escondida copper mine in Chile, in which BHP holds a majority interest, and extensive iron ore operations in Western Australia. The company sells commodities to industrial customers and participates in global supply chains for steelmaking, electrical infrastructure, construction, energy systems and manufacturing. The company has also faced significant operational, environmental, labour and regulatory controversies. Its Ok Tedi copper operation in Papua New Guinea was associated with severe environmental degradation and litigation by indigenous communities. A 2015 United States Securities and Exchange Commission settlement concerned BHP’s hospitality program for government and state-owned-enterprise officials during the 2008 Beijing Olympic Games. Labour disputes have periodically affected production, including a major strike at Escondida in Chile in 2017. BHP therefore combines the scale and market reach of a global mining major with the social, environmental and commodity-price risks inherent in extractive industries.

BHP’s origins lie in the Broken Hill mining district of western New South Wales. Charles Rasp identified and pegged a mineral claim in 1883, and the Broken Hill Proprietary Company was incorporated in August 1885 to develop the deposit. The mine produced silver, lead and zinc and gave the company its original name. BHP gradually built expertise in mineral treatment and processing, then moved beyond Broken Hill as ore characteristics and industrial opportunities changed. In 1915, BHP entered steelmaking, establishing operations centred on Newcastle in New South Wales. The move was encouraged by the availability of iron ore in South Australia and advances in mineral-processing techniques that improved the recovery of valuable metals from sulphide ores. The Newcastle steelworks became an important part of Australian heavy industry, although the company later separated or closed much of its steel business. The long-products operation was spun off as OneSteel in 2000, while the flat-steel business became BHP Steel and subsequently BlueScope. BHP also entered petroleum exploration in the 1950s. Discoveries in Bass Strait during the 1960s made oil and natural gas an important diversification from mining. The company expanded overseas into copper, diamonds, coal, uranium and other commodities. Its international mining portfolio included the Ok Tedi copper operation in Papua New Guinea, where environmental damage led to litigation and sustained criticism, as well as the Escondida copper mine in Chile, which became one of the world’s largest copper-producing operations. BHP also entered Canada’s Ekati diamond mine before selling its interest in 2013. Billiton supplied the second foundation of the modern group. Founded in the Netherlands in 1860, it began with tin and lead-related activities and later developed bauxite mining and aluminium interests in Indonesia and Suriname. Shell acquired Billiton in 1970, and its mining division later passed through Gencor before Billiton returned as an independent public company. Billiton plc joined the FTSE 100 Index in 1997. Its merger with BHP in 2001 created BHP Billiton, a large dual-listed international resources company. The combined group expanded during the commodity boom. It acquired WMC Resources in 2005, bringing Olympic Dam and other mineral assets into the portfolio. In 2007 and 2008 it pursued Rio Tinto in an attempted all-share transaction, but withdrew the bid in November 2008 as the financial crisis and falling commodity prices changed the risk assessment. BHP subsequently closed or reduced several operations, including Ravensthorpe nickel, and sold the mine in 2009. It also pursued potash through the acquisition of Athabasca Potash and made an unsuccessful 2010 bid for PotashCorp, which was opposed and ultimately rejected by the Canadian government. In 2011, BHP expanded its United States petroleum position by buying Chesapeake Energy’s Fayetteville shale assets and acquiring Petrohawk Energy. The group later adopted a more selective investment strategy. It deferred the major Olympic Dam expansion in 2012, sold the Yeelirrie uranium project, and announced in 2014 that a selection of non-core assets would form a new company. That company, South32, was demerged in 2015. The same period brought regulatory scrutiny over BHP’s Olympic Games hospitality program, ending in a US securities settlement. The group continued to simplify its structure and portfolio. BHP Billiton Limited and BHP Billiton plc were renamed BHP Group Limited and BHP Group plc in 2018, while the brand became BHP. In 2022, the group relinquished its London listing and became solely listed in Australia. Its contemporary business is centred on large-scale iron ore, copper and metallurgical coal operations, with the company presenting copper and other commodities connected to electrification and the energy transition as important areas of long-term strategic interest.

1. 2022Sole Australian listing

   BHP ended its London Stock Exchange listing and became solely listed on the Australian Securities Exchange.

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2. 2018Legal entities renamed BHP Group

   BHP Billiton Limited and BHP Billiton plc adopted the names BHP Group Limited and BHP Group plc.

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3. 2015South32 demerged

   A group of aluminium, coal, manganese, nickel and silver assets was separated into South32.

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4. 2011Petrohawk acquired

   BHP Billiton acquired Petrohawk Energy, expanding its US shale-gas portfolio.

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5. 2005WMC Resources acquired

   The acquisition added Olympic Dam and other Australian copper, uranium, nickel and fertiliser interests.

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6. 2001BHP Billiton formed

   BHP and Billiton combined through a dual-listed company structure.

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7. 2000Long-products steel business separated

   BHP’s long-products steel operations were spun off as OneSteel.

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8. 1960Bass Strait petroleum development

   Oil and natural gas discoveries in Bass Strait strengthened BHP’s petroleum business and broadened its resource base.

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9. 1915Entry into steelmaking

   BHP began steel manufacturing, with major operations based at Newcastle in New South Wales.

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10. 1885Broken Hill Proprietary Company incorporated

    The Broken Hill Proprietary Company was established to develop the silver, lead and zinc deposit at Broken Hill.

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11. 1883Broken Hill claim identified

    Charles Rasp pegged a mineral claim at Broken Hill, establishing the geological and commercial basis for the company that followed.

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A large, diversified but increasingly focused mining major supplying essential commodities for steelmaking, electrification, infrastructure and industrial production.

• Iron oreBulk commodities

  Iron ore is one of BHP’s central businesses, principally produced through large-scale operations in Western Australia. The material is mined, processed and sold as a feedstock for steelmaking. BHP’s iron ore position is built around integrated mines, processing facilities, rail systems and port infrastructure, allowing it to supply international steel producers.

• CopperBase metals

  Copper is a core BHP commodity and is produced principally through major operations including Escondida in Chile and Olympic Dam in South Australia. Copper serves electrical, construction, industrial and transportation markets. BHP has increasingly positioned the metal as strategically important because of its role in electrification and energy infrastructure.

• Metallurgical coalBulk commodities

  BHP has historically operated metallurgical coal mines in Queensland and other coal-producing regions. Metallurgical coal is used in blast-furnace steelmaking, distinguishing it from thermal coal used primarily for power generation. Coal has been a significant part of BHP’s portfolio, although the company has pursued portfolio simplification and asset divestments over time.

• Petroleum and natural gasEnergy commodities

  BHP developed petroleum through Australian exploration, including Bass Strait, and later expanded into US shale gas and Gulf of Mexico projects. The business has included oil, natural gas and related production assets. Petroleum became less central as BHP refocused on a smaller set of mining commodities and pursued changes to its hydrocarbons portfolio.

• Uranium and goldMinerals

  Uranium and gold have been produced or recovered as part of BHP’s broader mineral portfolio, particularly through Olympic Dam, which contains copper, uranium, gold and silver. BHP has also evaluated and sold selected uranium interests as it concentrated its portfolio around larger strategic commodities.

• 2015Demerger of South32M&A

  BHP Billiton reviewed its portfolio and identified aluminium, coal, manganese, nickel and silver operations as businesses better managed in a separate company.

  What changed. The selected assets were separated into South32, which became an independently listed mining company.

  Aftermath. BHP emerged with a more focused portfolio centred on its larger-scale iron ore, copper, coal and petroleum interests.

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• 2012Defer major growth projectsStrategy

  Rising capital requirements and changing commodity conditions made several large expansion projects less attractive, including the planned Olympic Dam expansion.

  What changed. BHP delayed the Olympic Dam expansion, slowed selected iron ore and potash growth options, and froze approval of major new expansion projects.

  Aftermath. The decision signalled a shift from aggressive expansion toward capital discipline and portfolio selectivity.

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• 2010Withdraw PotashCorp bidM&A

  BHP sought to diversify into potash and made a large cash offer for PotashCorp, but the proposal faced opposition from the Saskatchewan government and the Canadian federal government.

  What changed. BHP withdrew its offer in November 2010 after the Canadian government moved toward rejecting the transaction.

  Aftermath. The failed transaction demonstrated the political and regulatory limits on cross-border acquisitions of strategically important resource companies.

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• 2008Withdraw Rio Tinto takeover bidM&A

  BHP had proposed acquiring Rio Tinto in an all-share transaction, but the global financial crisis and declining commodity-market conditions increased the perceived risks of the deal.

  What changed. BHP withdrew the proposal in November 2008.

  Aftermath. The withdrawal avoided combining two major mining groups during a period of severe financial-market uncertainty and marked a retreat from the transaction-led expansion strategy.

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• 2015Olympic Games hospitality program enforcement actionControversy

  The US Securities and Exchange Commission alleged that BHP Billiton failed to maintain adequate controls over a hospitality program that invited government and state-owned-enterprise officials to the 2008 Beijing Olympic Games. BHP agreed to pay a US$25 million penalty without admitting or denying the SEC’s findings.

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• 1990Ok Tedi environmental controversyControversy

  BHP’s involvement in the Ok Tedi copper mine in Papua New Guinea became associated with extensive environmental degradation and legal action brought by indigenous communities. The episode became a major example of the environmental and social risks connected with large-scale mining.

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• 2023BHP begins Nickel West review

  BHP announced a review of its Nickel West operations in Western Australia amid weak nickel market conditions and subsequently placed the business into temporary suspension.

  Pricing
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• 2022BHP ends London Stock Exchange listing

  BHP completed the move to a solely Australian Securities Exchange-listed structure, ending its long-standing dual-listed arrangement.

  Other
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• 2022BHP completes unification of its corporate structure

  BHP completed the unification of its formerly dual-listed company structure, leaving BHP Group Limited as the single parent company.

  M&A
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• 2022BHP exits petroleum through merger with Woodside

  BHP completed the merger of its petroleum portfolio with Woodside Petroleum, receiving shares in the enlarged Woodside business and sharpening its focus on minerals.

  M&A
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• 2021BHP approves first stage of Jansen potash project

  BHP sanctioned the first stage of the Jansen potash project in Saskatchewan, Canada, establishing potash as a major new growth platform.

  Product launch
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• 2017Escondida strike disrupts copper shipments

  Workers at the Escondida copper mine struck during contract negotiations, leading BHP to declare force majeure on shipments and contributing to a rise in copper prices.

  Other
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• 2015South32 is separated from BHP Billiton

  Selected aluminium, coal, manganese, nickel and silver assets were demerged into the separately listed South32 group.

  M&A
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• 2012BHP delays Olympic Dam expansion

  BHP postponed its large Olympic Dam copper expansion and announced a freeze on approving major new expansion projects while it evaluated less capital-intensive alternatives.

  Other
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• 2008BHP Billiton withdraws Rio Tinto takeover proposal

  The company abandoned its proposed acquisition of Rio Tinto as the global financial crisis increased the risks to shareholder value.

  M&A
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• 2005BHP Billiton completes acquisition of WMC Resources

  BHP Billiton acquired WMC Resources, gaining control of Olympic Dam and additional nickel, uranium and fertiliser interests.

  M&A
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• 2001BHP and Billiton combine to form BHP Billiton

  The Australian Broken Hill Proprietary Company and Anglo-Dutch Billiton completed their combination, creating a global mining group operated through a dual-listed structure.

  M&A
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1. BHP
2. BHP corporate website
3. SEC Charges BHP Billiton with FCPA Violations
4. Fundão dam failure at Samarco
5. BHP begins Nickel West review
6. BHP completes unification of its corporate structure
7. BHP exits petroleum through merger with Woodside
8. BHP approves first stage of Jansen potash project