Mining large BHP names new boss because it shifts focus to eco-friendly copper

BHP has named Brandon Craig as its new chief executive as the world’s largest mining company shifts its focus away from coal and towards copper production.

Craig, who has spent 25 years at BHP and is currently head of operations in the Americas, will succeed Mike Henry, who has spent six years running the Australian mining giant.

Craig has run key copper assets in China and Argentina, having previously run BHP’s Australian ore business. 

Copper is an important component in electric vehicles and power generation, so is in growing demand as businesses and consumers seek alternatives to fossil fuels. 

Over Henry’s tenure, BHP established itself as the world’s largest copper producer and reduced its exposure to coal.

In its most recent set of results, BHP said copper had contributed the largest share of its overall earnings in the six months to 31 December. It marked the first time it surpassed iron ore.

BHP is doubling down on copper production with the appointment of its new CEO 

Henry also moved its primary listing away from London and became a ‘simpler company’. BHP chair Ross McEwan said he had transformed BHP ‘into a safer and more productive company, financially strong and sharply focused on shareholder value and social value.’

Craig, who will step into the role on 1 July, said he would look to maintain Henry’s approach but told reporters that BHP’s future lies in the US, Chile and Argentina.

He said that he planned to keep BHP a diversified miner and would focus on organic growth across copper, iron ore, potash and coal, but did not rule out mergers or acquisitions.

Henry failed in his two attempts to take over rival Anglo American to boost the miner’s copper portfolio.

Any opportunities ‘would have to be incredibly compelling to compete with that set of options that we have,’ Craig said.

Craig also said a key focus would be improving relationships with governments and customers, after being locked into a battle with China’s Mineral Resources Group, which banned its steel mills from buying some of its products.

‘I do think it’s really, really important that we continue to strengthen the relationships with our customers, particularly in China,’ and said the firm’s leadership would visit the country in a few weeks.

London-listed BHP shares were up 1.17 per cent after the announcement.