BHP Share Price History
02 Aug, 2020
(Bloomberg) -- Authorities in Chile are cracking down on water use by mines in the driest desert on earth, threatening future supply in the top copper-producing nation.On Friday, Chile’s environmental agency SMA charged BHP Group’s Escondida for allegedly drawing more water than allowed for almost 15 years in a move that could result in the loss of its permit, closure or a fine. Just to the south, state-owned Codelco has suspended a planned expansion of its Salvador mine until it can resolve a suit filed by the State Defense Council against the project’s proposed use of water.Mines that dot the parched Atacama desert are coming under increasing scrutiny for their use of water, with lithium giant Soc. Quimica & Minera de Chile SA facing a Supreme Court ruling after community complaints. Even in central Chile, scare water supplies have restricted output at Anglo American Plc’s Los Bronces mine and Codelco’s El Teniente.At Escondida, the regulator accuses the world’s biggest copper mine of a serious decline in the water table, alleging the operation failed to lower extraction at four control points since 2005 and reached triple the acceptable threshold in 2019. BHP has 10 days to present a compliance program in response to the charge.Escondida rejected the allegations, saying in an emailed statement that it ceased extraction from aquifers at the end of 2019 and now runs exclusively with desalinated water.“Escondida has never exceeded the restriction of 25 centimeters established as maximum acceptable decrease of the aquifer level in the monitoring area of the wetlands of Tilopozo,” it said.The suit against Salvador’s expansion threatens future supply given the project is needed to replenish falling ore grades at Codelco’s smallest and least profitable operation.(Updates with comment from Escondida)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
31 Jul, 2020
Australian miners Rio Tinto and Fortescue post record iron ore shipments as China industrial recovery continues
Australian mining giants Rio Tinto and Fortescue Metals Group have joined BHP Group in reporting record shipments of iron ore, the bulk of it to China, as an infrastructure and property construction boom in the world's second largest economy drives a rebound in steel production.The companies have reported record earnings on the back of the iron ore shipments, even though exports of other minerals like aluminium and copper remain in the doldrums as the coronavirus pandemic saps global demand.Australia's record iron ore exports to China, combined with a surge in shipments of coking and thermal coal, indicate trade in the key industrial ingredients has not suffered because of a diplomatic spat between the two countries.Rio Tinto reported on Thursday its iron ore shipments to China in the first half of the year rose 3 per cent compared to the same period a year-earlier.This pushed earnings up 2 per cent and allowed the Anglo-Australian miner to promise a US$2.5 billion dividend payout for shareholders.Announcing its fourth quarter fiscal results, Fortescue projected that iron ore shipments to China would rise 6 per cent to 178 million tonnes for the full financial year ended in June, exceeding its target of 177 million tonnes. Full-year results will be announced in a few weeks.The miner said exports were buoyed by strong Chinese steel production of 499 million tonnes in the first six months of the year, 1.4 per cent higher than the same period last year.Rio Tinto chief executive Jean-Sebastien Jacques said China had effectively absorbed the additional iron ore diverted from weaker steel markets in Europe and Asia."The main market for our high-quality iron ore is China, which compared to the broader global economy has recovered exceedingly well," Jacques said while announcing company results on Wednesday."China's steel production and demand for iron ore in 2019 was strong and this has continued despite disruptions in the first quarter."In 2020, [China's] crude steel production has again exceeded the 1 billion tonne annualised run rate and June production was a new all-time high record."Steel markets in Europe, the United States, Japan, South Korea and Taiwan were still weak, Rio Tinto said.BHP also said last week it had met production targets for iron ore, thanks to China's economic recovery."In China, blast furnace utilisation rates have increased from around 80 per cent earlier in February 2020 to above 90 per cent in June 2020," BHP said in its financial year review."We continue to believe that if China can avoid a second wave of Covid-19, steel and pig iron production can both rise in the 2020 calendar year versus the prior year."Rio Tinto said Australia's contract-based iron ore shipments were strong, despite impacts from the coronavirus outbreak, allowing it to outperform other major miners such as Vale in Brazil, which has suffered from production restrictions and delays.But Vale, which has recently suffered setbacks including the Brumadinho dam collapse at its Corrego do Feijao mine, also saw profit recover in the second quarter thanks to higher iron ore prices. It said on Wednesday it would pay dividends that have been suspended since the dam accident last January.The continued demand for iron ore in China means Rio Tinto is committed to developing new iron ore projects at Simandou blocks 3 and 4 in Guinea, along with Chinese partner Chinalco Mining and the country's government.The diversified miner said it had drawn up plans to commission China-based design institutes to update and re-engineer the infrastructure of the project, which was approved in 2010."The Chinese are pretty active and they want to see a pathway to develop the two blocks," Jacques said.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
27 Jul, 2020
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A Brazilian mayor, part of a 200,000-strong group claim against miner BHP over a 2015 burst dam, has told an English court that suing the Anglo-Australian giant in Brazil would be like David fighting Goliath - without the biblical ending. Mario Antonio Coelho, mayor of Brazil's Barra Longa municipality, has told a jurisdictional hearing in Manchester that bringing the 5 billion pound ($6.3 billion) case in England over Brazil's worst environmental disaster is the only route to proper justice, court documents show. Duarte Junior, the mayor of Mariana, who has travelled to Manchester, northern England, with Rio Doce's mayor Silverio da Luz, urged BHP to listen to Brazilians.
For the Krenak indigenous people who live along the Rio Doce in southeastern Brazil, the waterway was their community's lifeblood, a source of food and spiritual presence, where children were baptized and learned to swim. Five years later, the tribe says survival remains a struggle, despite living hundreds of kilometers downstream from the burst dam, and mourn a revered river they have long known as "Uatu": a sacred, omnipresent relative. "Uatu has died," Djanira Krenak, a 70-year-old Krenak matriarch and pajé, or spiritual leader, told Reuters in a video call -- her first, on a borrowed phone.
23 Jul, 2020
Tesla Inc boss Elon Musk urged miners to produce more nickel, a key ingredient in the batteries that power the company's electric cars, warning the current cost of batteries remained a big hurdle to the company's growth. "Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way," Musk said on a post-earnings call on Wednesday. Nickel makes batteries energy dense so cars can run further on a single charge, and Tesla needs the metal more than ever as it looks to ramp up production of trucks and solar projects that use a lot of nickel.
22 Jul, 2020
(Bloomberg) -- More than 200,000 Brazilians are asking British judges for the right to sue BHP Group, the world’s biggest mining company, in U.K. courts over the deadly collapse of a dam five years ago.Residents, businesses and local governments say BHP bears ultimate responsibility for the collapse of the Fundão Dam, which killed 19 people and caused lasting environmental damage. The facility was run by a company jointly owned by a BHP unit and Vale SA.At an eight-day hearing starting Wednesday in Manchester, U.K., judges will rule on whether British courts have jurisdiction over the case. If it goes ahead, it would be the biggest class action in U.K. history with the local groups seeking a total of 5 billion pounds ($6.33 billion).This is the latest in a series of group claims brought in the U.K. against British companies for the actions of their foreign units in developing countries. Melbourne-based BHP’s shares are listed in both the U.K. and Australia.In a landmark ruling last year, the U.K. Supreme Court allowed Zambian villagers to sue mining company Vedanta Resources Plc in Britiain over pollution caused by a mine, opening the door to similar claims. Last month, thousands of Nigerians sought permission to sue Royal Dutch Shell Plc in London over damage caused by oil spills in the Niger Delta.“Until there is a change in corporate behavior, I think this type of litigation is likely to increase,” said Tom Goodhead, a lawyer representing the plaintiffs at law firm PGMBM.But BHP said that the Manchester case duplicates legal proceedings in Brazil and shouldn’t be allowed to go ahead.“BHP’s overarching position remains that the proceedings do not belong in the U.K.,” BHP said in a statement.Safety warningsThe Fundão Dam was used to store iron ore tailings, a toxic waste produced during the processing of mined mineral. Its collapse destroyed entire villages, polluted rivers and devastated natural habitats.The joint venture, Samarco, allegedly ignored safety warnings as it increased iron ore production and tailings storage at the dam, PGMBM said in court filings ahead of the hearing. BHP representatives had been informed of serious structural failings in a report two years earlier, the claimants said.BHP said it is committed to supporting ongoing remediation and compensation through the Renova Foundation, an out-of-court compensation scheme, to which the company made a provision of $1.7 billion.The Renova Foundation had announced it was suspending payments to thousands of victims it alleged had provided false information, but a Brazilian judge ordered the Foundation to resume aid last week.Thousands of individual claims against Samarco are ongoing in Brazil.An appeal is currently pending against the dismissal of a class action filed in New York on behalf of Samarco bondholders, while a separate class action by BHP investors has been filed in Australia, according to company filings. Brazilian prosecutors are also continuing to challenge the dismissal of some criminal charges in the case, BHP said in a February statement.Other cases linked to large-scale environmental damage have taken decades to be processed in the Brazilian courts, and the claimants are hoping to obtain quicker results in the U.K. The current proceedings in the British courts don’t target Vale.Work to reopen the joint venture in Brazil has been slowed, in part because of measures to respond to Covid-19, BHP said in a separate statement this week.(Updated with additional information about the Renova Foundation in 12th paragraph and details of other legal proceedings in 14th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Anglo-Australian miner BHP has dismissed as pointless and wasteful a 5 billion pound ($6.3 billion) English lawsuit by 200,000 Brazilian people and groups over the 2015 collapse of a dam that led to Brazil's worst environmental disaster. "These applications are ... brought because the attempt to export and duplicate the work being done in Brazil, including the litigation, to England, is pointless and wasteful," BHP said in legal documents. The hearing will establish whether the case can be tried in England, although the judge is expected to reserve judgment until around September.
Australian shares closed lower on Wednesday, dragged down by the healthcare sector, as a record surge in COVID-19 cases in the country dented investor sentiment. Australia recorded 501 new coronavirus infections in the past 24 hours, its highest since the epidemic took hold in March, with Victoria state, of which Melbourne is the capital, accounting for almost 97% of the new cases. "The fact that metro Melbourne, which is about 5 million people, has already been in a lockdown for the last couple of weeks and still not seeing a drop in cases is probably something to be a little concerned about," said Steven Daghlian, market analyst at CommSec.
21 Jul, 2020
U.K. stocks advanced on Tuesday, as investors cheered the European Union’s €750 billion coronavirus recovery plan and positive vaccine developments.
BHP Group (BHP) reports record iron ore production in the year ended Jun 30, 2020 driven by Western Australia Iron Ore operations.
The deal provided support to fragile broader sentiment and, along with encouraging results from several COVID-19 vaccine trials, kept safe havens such as the greenback under pressure. The Australian dollar clung on above 70 U.S. cents after the central bank offered few surprises in minutes from last month's meeting or a speech from Governor Philip Lowe. Lowe said Australia's monetary policy would remain accommodative for as long as necessary and added that although he would prefer a cheaper Aussie dollar, its 27% recovery from March lows was supported by fundamentals.
BHP Group on Tuesday posted a 7% rise in fourth-quarter iron ore output, but warned the resurgence of COVID-19 outbreaks threatened the short-term demand outlook for its key commodities and widened its production guidance range for next year. Mining companies are banking on the recent uptick in industrial activity in China, the world's top metals consumer, to support prices and insulate them from uncertainty over demand elsewhere, as global coronavirus cases continue to spike. The world's biggest listed miner met guidance for its iron ore production of a record 67 million tonnes for the quarter, up 4%, and 248 million tonnes for the financial year, reflecting strong demand from top consumer China.
18 Jul, 2020
(Bloomberg) -- The Mt Arthur coal mine in Australia is one of the world’s best. It’s got plenty of reserves and the low-cost supplies produced there are easily shipped to Southeast Asia, where there’s insatiable appetite for the fuel.Yet owner BHP Group has a problem: It’s struggling to find a buyer willing to pay the right price.The world’s biggest mining company’s unsuccessful effort over the past year to offload the asset highlights the predicament producers are in. To bow to mounting investor pressure to exit the most polluting fuel, BHP may need to sell a profitable mine for much less than it believes it’s worth.Activists have for years said that miners could face a cliff-edge moment by holding onto assets for too long -- and that now seems to be happening in thermal coal. While the mines generate plenty of cash and will have customers for years to come, investors increasingly don’t want to hold shares in companies digging the fuel, which accounts for about 30% of carbon emissions.What’s happening in coal may be a warning to other mining and oil and gas companies about how quickly assets can drop in value as investors rally behind the Paris climate accord. It also presents a risk for resource companies that invest in projects based on the coming decades, rather than years.Coal-asset values have collapsed quickly. Rio Tinto Group sold its last coal mines for almost $4 billion just two years ago amid strong interest from big miners and private equity groups. Now rivals BHP and Anglo American Plc risk paying the price of waiting too long.“We could have exited a few years back, and we probably would have got a better price, but we’ve also made good cash flows from what are good assets,” Anglo American Chief Executive Officer Mark Cutifani said. “How we exit is more important to me, in terms of stakeholders and reputation, than getting an absolute number on the bottom line.”Burning coal is the top contributor to carbon dioxide emissions, causing tens of thousands of deaths a year. While Europe is rapidly turning its back on the fuel, Asian countries like India and China are building hundreds of new power plants and global demand is expected to hold up over the next two decades.But major miners realize their earnings from coal will ultimately be outweighed by the risk of too many investors dumping their stock. Even Glencore Plc, one of the staunchest defenders of the fuel, agreed to cap output and plans to separate the business should it spook too many shareholders.There are signs the pool of potential buyers of thermal coal mines is shrinking. BHP rejected early offers from parties including Yancoal Australia Ltd. and Adani Group’s local unit for Mt Arthur that missed its own valuation, Bloomberg reported this week. Anglo American has decided it would be better to spin off its South African coal business rather than finding a buyer with enough cash.“Who else is going to buy a massive thermal coal mine at this point in time? Is any other mining house going to come in, I doubt it,” said Tim Buckley, a Sydney-based director of energy finance studies at the Institute for Energy Economics and Financial Analysis. “Private equity is unfortunately the only answer.”Writing DownColombia’s giant Cerrejon mine shows how tough it may be to offload assets. Owned by Glencore, Anglo and BHP, it mainly ships coal to Europe, where the market has been hit by cheap gas prices. Glencore has already written down the asset by $435 million and there are few obvious buyers for such a mine.With thermal-coal asset values dropping so heavily in recent years, there’s potentially not much more room for prices to drop, said Nick Stansbury, head of commodity research at Legal & General Investment Management, which manages more than 1.2 trillion pounds ($1.5 trillion) of assets. Still, it might make more sense to sell them for less than they’re worth, rather than face investor backlash for holding onto them.More shareholders “are adopting policies that say ‘I don’t want to own companies that produce thermal coal, it is so unaligned with Paris, it is so inconsistent with my investment values,’” Stansbury said. “Companies that aren’t Paris aligned are going to be increasingly bad investments, not because the cash flows are at risk, but because the cost of capital is going up.”For some diversified miners, the fuel represents little more than a rounding error on overall earnings. Thermal coal accounts for a small fraction of BHP’s and Anglo American’s profits. It’s much more important for Glencore -- the biggest thermal coal shipper gets about one-third of its mining profit from the commodity and has been the most resistant to investor pressure.Glencore billionaire CEO Ivan Glasenberg agreed to cap production to “still have investors.” The company’s management is also prepared to spin off its coal unit should it start to detract from the value placed on its other mines, according to people familiar with the matter, who asked not to be identified as the matter is private.That would allow it to focus on mining copper, cobalt and nickel, which are seen essential to green technologies.“Unlike oil and gas, Big Mining does not require complete reinvention,” Deutsche Bank AG said in a note. “In-house energy transition opportunities are available, but M&A would help to improve the opportunity set for some of the companies.”Still, investor attitudes can change quickly. Two years ago, Anglo American said investors supported the view that the company was best positioned to keep running coal mines the world needs, with local communities set to benefit from better access to health care, water and non-mining related jobs. Now, investors increasingly disagree.“For us, our thermal coal assets are high quality and well located, but they are our shortest life assets on average, so it’s a rational economic decision and our likely exit is via a demerger,” Anglo’s Cutifani said. “But simply selling assets is not necessarily the best decision for the planet. That’s the reality.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
16 Jul, 2020
(Bloomberg) -- BHP Group has rejected early offers for its Australian thermal coal business that missed the miner’s own valuation as the year-long hunt for a buyer continues, according to people familiar with the matter.Yancoal Australia Ltd. and Adani Group’s Australian unit are among those to have had approaches for the Mt Arthur mine rebuffed, said the people, who asked not to be identified discussing private information. BHP may step up its search for a buyer in the coming months, according to some of the people.While there’s strong interest in thermal coal assets from private equity, there’s much less appetite among major miners to add production of the fuel. BHP itself is looking to exit the business as growing climate change concerns have weakened its long-term demand outlook and ratcheted up pressure from investors to ditch the dirtiest fossil fuel.BHP last year tapped Macquarie Group Ltd. to work on the potential sale of the wholly owned Mt Arthur asset and also tasked JPMorgan Chase & Co. with finding a buyer for its one-third stake in the Cerrejon thermal coal operation in Colombia, people familiar with the matter said in August.“Yancoal considers acquisitive growth opportunities as they arise, such as BHP’s thermal coal assets, and is committed to only acquiring appropriately priced assets of genuine future value,” a spokesperson for the Sydney-based company said in a statement.Adani’s Australian unit and BHP, which generates about 3% of its revenues from Mt Arthur and Cerrejon, both declined to comment.BHP will remain a major exporter of metallurgical coal for steel-making, with nine Australian mines.Mt Arthur, among Australia’s largest coal operations, may be worth about $1 billion, Credit Suisse Group AG said in a note last week.Thermal coal is “a small part of the portfolio,” BHP Chief Executive Officer Mike Henry said on an earnings call in February. “We see the downside scenarios as being greater than the upside, so if somebody presented an offer for us to exit for value, we’d consider that.”Executives, including Henry, have also said BHP would be happy to retain the asset rather than sell at a low price.Mt Arthur is forecast to have had production in the 12 months ended on June 30 of between 15 million and 17 million tons. BHP is scheduled to report output data next week.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
15 Jul, 2020
More than 200,000 Brazilian people and groups will next week kick off a 5 billion-pound ($6.3 billion) lawsuit against Anglo-Australian miner BHP in Britain over a 2015 dam failure that led to Brazil's worst environmental disaster. An initial, eight-day hearing will establish whether the case can be heard in Britain, although the judge is expected to reserve judgment until later in the year. BHP spokesman Neil Burrows said the claim did not belong in Britain because it duplicated proceedings in Brazil and the ongoing work of the Renova Foundation, an entity created by the miner and its partners to manage reparations and repairs.
The board of Cornerstone Capital Resources Inc on Tuesday rejected BHP-backed SolGold Plc's takeover offer for the second time, saying it undervalued the Canadian copper and gold miner. "For the second time, the Board is unanimous that SolGold's proposal substantially undervalues Cornerstone," Chairman Greg Chamandy, who has a 10% stake in the company, said in a statement. About 65% of Cornerstone shareholders have said they will not support SolGold's second offer.
14 Jul, 2020
Chile's Candelaria copper mine, run by the Canadian firm Lundin Mining Corp, on Tuesday rejected claims by the mine supervisors´ union that it is planning to lay off workers, saying the claim relates to the offer of an early retirement package for older workers. Candelaria said the measure was part of an "optimization programme" to ensure the sustainability of its operation in Chile's northern Atacama region. Copper production out of Chile has not yet been significantly impacted since the coronavirus outbreak started in March.