Australian miner BHP Group has decided to shelve a plan it had been mulling to separate its Australian iron ore and coal divisions as part of its medium-term growth strategy to focus on other commodities such as potash and copper, according to a report by Reuters.
The sources reporting this issue stated that BHP Group was heavily focused on green steel operations in 2023 and 2024, showcased by its bid for UK-based miner Anglo American in 2023, which fell through in 2024. The miner’s projection was that an independent copper and potash unit would have more leeway to evaluate other acquisition options, such as Canada-based miner Teck Resources.
According to the sources, this plan was scrapped following the failure to acquire Anglo American. This acquisition would have helped the copper business of BHP grow and provide the cash flow necessary for development of the Escondida copper complex in Chile and the Jansen potash project in Canada. A global step back from environment goals also discouraged the miner from pushing hard on the green steel business.
Although BHP Group has decided not to go through with its plan, even the consideration of such an issue demonstrates what great lengths the miner would go to in order to recalibrate its future direction towards green steel.