BHP Group (NYSE:BHP), the world’s largest publicly traded mining company, is reportedly contemplating the separation of its Australian iron ore and coal divisions. This potential move is part of a mid-term growth strategy, as per Reuters.
The company’s shares saw a minor increase of approximately 0.7% following the report.
BHP Group’s potential spinoff of these divisions is reportedly part of a strategic shift towards commodities that are more focused on the future, such as potash and copper. This would not be the first time the company has made such a move, as it previously separated from South32 (OTC:SOUHY) in 2015.
The most likely scenario for this potential separation would be an Australian listing, according to two of the sources.
The consideration of this move comes at a time when BHP Group is making significant efforts to make its business more environmentally friendly.
The company is also preparing for its bid for Anglo American (JO:AGLJ) in 2023 and 2024. The sources requested anonymity due to the sensitive nature of the issue.
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