BHP holds onto copper division under new CEO's long-term strategy
BHP has decided to keep its copper division rather than spin it off, keeping its place as a major producer of industrial metals. The move comes under new leadership, with Brandon Craig taking over as CEO in early 2025 after more than 25 years at the company.
Craig previously ran BHP's operations in the Americas, including the Escondida copper mine. His appointment initially caused a small drop in share price, with BHP's stock falling 1.83% to €30.05 at the time of the announcement. Since then, however, the company's shares have risen by nearly 14% this year.
Under Craig's leadership, BHP has faced challenges. The company's market value has fallen by 15-20%, dropping from around $150 billion to between $120-130 billion by March 2026. This decline contrasts with the 5-10% annual growth seen from 2020 to 2024. Factors contributing to the drop include lower commodity prices for iron ore and copper, supply chain disruptions from geopolitical tensions, higher operational costs tied to energy transitions, and reduced demand from China. Despite these pressures, BHP remains focused on growth. The Jansen potash project in Canada is set to begin production in mid-2027. The company also plans to expand its copper, iron ore, and potash operations, particularly in the U.S., Chile, and Argentina. Former CEO Mike Henry will stay on to support the transition until November 2026. BHP expects copper demand to stay strong in the long term, driven by the global shift to cleaner energy. The company's strategy centres on organic growth rather than breaking up its existing divisions.
BHP's decision to retain its copper business keeps it as a key player in industrial metals. With production at Jansen starting in 2027 and a focus on expanding core operations, the company is positioning itself for long-term demand. The next few years will test whether this approach can reverse recent market declines.
