BHP considered spinning off its iron ore and coal divisions

According to Reuters, BHP Group considered spinning off its Australian iron ore and coal divisions as part of a long-term strategic shift toward future-facing commodities like copper and potash.

Similar restructurisation

The plan mirrored BHP’s 2015 South32 spin-off, with an Australian listing likely before management ultimately decided not to proceed. Sources suggest the timing wasn’t right, as iron ore and coal remain crucial cash generators, funding BHP’s Escondida copper complex in Chile and Jansen potash development in Canada.

What Changed?

• Iron ore is 60% of BHP’s profits—a spin-off would be a historic shift. Greening the business was a driver, but corporate sustainability targets are evolving globally.
• The Anglo American bid fell through, impacting BHP’s copper strategy.
• New chair Ross McEwan just took over, and CEO Mike Henry’s successor hunt is underway.

New opportunities

A spin-off could free up capital for new growth opportunities, such as a potential deal with Teck Resources Limited. However, with major copper and potash investments still requiring significant capital, any move is likely further down the road.