Latest news with #RossMcEwan
Yahoo
04-04-2025
- Business
- Yahoo
BHP Group considered iron ore and coal divisions spin-off
BHP Group deliberated a potential spin-off of its Australian iron ore and coal divisions, reported Reuters, citing sources familiar with the matter. This move aligns with BHP's medium-term growth strategy and shift towards 'future-facing commodities' such as potash and copper. The discussions over the spin-off come at a time when BHP is intensifying efforts to make its operations more environmentally friendly, while preparing for leadership changes and bidding for Anglo American in 2023 and 2024, which was later shelved. Despite the considerations, BHP has chosen not to advance with the spin-off plans at present. The deliberations offer an insight into the extent of change BHP is willing to consider under its new leadership. The potential separation would have been transformative for BHP, distancing the company from its long-standing iron ore mining operations in Australia, which date back to 1885 and currently generate around 60% of its profits. Additionally, divesting coal assets would also reduce BHP's carbon footprint. Ross McEwan, former head of National Australia Bank, has recently taken over as BHP chair, and the search for a successor to CEO Mike Henry is set to commence. Henry and former CFO David Lamont had engaged with investors regarding the separation of BHP's future growth from its maturing businesses. However, the conclusion was that the timing was not right, given the substantial cash flow needed from the Australian divisions to fund capital projects such as the Escondida copper mine in Chile and the Jansen potash project in Canada. The spin-off, according to one source, would generate cash and franking credits, likely attracting significant Australian investor interest. It would also provide BHP's copper and potash unit with greater flexibility to explore new partnerships, potentially with companies such as Teck Resources. The plan's complexity is heightened by BHP's missed opportunity to acquire Anglo, which would have strengthened its copper division and cash flow. Moreover, the urgency to 'green' the business has waned as many companies globally have retreated from environmental commitments, the report stated. "The whole strategy is contingent on copper and potash being self-sustaining businesses, both of which have large capital requirements for at least the next five years," explained a source. In March 2025, BHP signed an agreement with Cobre to invest up to $25m (A$39.65m) in exploring copper-silver deposits at the Kitlanya projects in Botswana. "BHP Group considered iron ore and coal divisions spin-off" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
02-04-2025
- Business
- Reuters
Exclusive: BHP considered spinning off iron ore, coal divisions
MELBOURNE, April 2 (Reuters) - The world's biggest listed miner BHP Group ( opens new tab considered spinning off its Australian iron ore and coal divisions as part of a medium-term growth strategy, three sources with knowledge of the matter told Reuters. As part of a planned focus on future-facing commodities potash and copper, BHP weighed separating out the divisions, as it did with South32 ( opens new tab in 2015, with an Australian listing most likely, two of the sources said. The consideration was underway as BHP was pushing hard to green its business and preparing its bid for Anglo American (AAL.L), opens new tab in 2023 and 2024, they said, asking to remain anonymous because the issue was sensitive. BHP declined to comment. Such a move would radically reshape BHP, divorcing it from more than half a century of iron ore mining in Australia, where it was incorporated in 1885. Iron ore accounts for approximately 60% of its profits. Unbundling coal with iron ore would also remove the bulk of its carbon exposure. BHP would, however, keep its South Australian copper assets, backing its strategy to be a leading supplier of the metal needed for the energy transition. While BHP opted not to progress with its plans for now, the discussions are an insight into the scale of transformation the miner would consider as it recalibrates its future direction with a change in senior leadership. Former National Australia Bank head Ross McEwan assumed his role as new BHP chair this week, following the departure of Ken MacKenzie, and the contest for a successor to CEO Mike Henry - in his fifth year in the top job - is about to begin. Henry and CFO David Lamont, who stood down from the role in February 2024, discussed with investors the plan to separate BHP's future growth from its declining growth businesses towards the end of the decade. Ultimately they decided it was not the right time because BHP still required the huge amounts of cash generated by the two Australian divisions to fund capital spending at its Escondida copper complex in Chile and its Jansen potash development in Canada. BHP's view was a spin-off of iron ore and coal would generate cash and franking credits that benefit Australian tax-payers, meaning there could be considerable Australian interest in any flotation, one of the people said. In addition, a freed-up copper and potash unit would have more scope to seek out fresh combinations, such as with Teck Resources ( opens new tab, the people said. The plan was complicated by BHP's failure to purchase Anglo, which would have bulked up the copper business and helped with cash flow, while the incentive to green its business has become less strong as many corporations across the world step back from environment goals. That suggests any move down that path may be further off. "The whole strategy is contingent on copper and potash being self-sustaining businesses, both of which have large capital requirements for at least the next five years," another of the people said.
Bloomberg
12-02-2025
- Business
- Bloomberg
Meet the Chemist Warehouse Billionaires
Good morning it's Georgie here in Sydney, here's what you need to know this Thursday morning. Today's must-reads: • Meet the billionaires created in Australia's pharmacy mega-merger • BHP appoints Ross McEwan as chairman • The future of the Australian housing market Chemist Warehouse starts trading this morning on the ASX after it merged with publicly traded Sigma Healthcare. The tie up will create one of Australia's largest pharmacy chains and wholesalers and make its Melbourne founders Jack Gance and his brother Sam — and Mario Verrocchi big winners.
Reuters
12-02-2025
- Business
- Reuters
BHP says McEwan to replace MacKenzie as chair
Feb 12 (Reuters) - Mining group BHP ( opens new tab said on Wednesday that Ross McEwan, a current board director, would be its new chairman after Ken MacKenzie retires on March 31. MacKenzie was with BHP for nine years and has been chair for the last eight. He oversaw BHP's recovery from the Samarco dam disaster, the unification to a single Australian listing, an entry into Canadian potash and a workforce that is approaching gender equity. McEwan has been an independent non-executive director at BHP since April 2024 and was previously CEO of National Australia Bank ( opens new tab and the Royal Bank of Scotland ( He is currently a director at plumbing and bathroom products supplier Reece ( opens new tab and at defence technology company QinetiQ Group (QQ.L), opens new tab.
