The Conversation (0)
In an article for the Wall Street Journal, Rhiannon Hoyle notes that BHP Billiton (NYSE:BHP) is making a shift towards copper with its huge Olympic Dam project in Australia, marking a “new investment strategy” for the company.
In an article for the Wall Street Journal, Rhiannon Hoyle notes that BHP Billiton (NYSE:BHP) is making a shift towards copper with its huge Olympic Dam project in Australia, marking a “new investment strategy” for the company.
According to the publication:
From Australia’s Outback to the Andes, BHP is rethinking how it spends the vast earnings generated from supplying the world with raw materials used in everything from bridges to skyscrapers. Off the table are any major new investments in producing iron ore and coal, which have long been the company’s cash cows. Instead, BHP is turning more to copper and petroleum, while spinning off other businesses from aluminum to manganese into a new company that may be valued at as much as US$18 billion.
The new approach will come under scrutiny Thursday when BHP hosts its annual meeting with Australian shareholders, many of whom feel the company isn’t doing enough to boost returns. BHP Chief Executive Andrew Mackenzie also plans at a strategy briefing for investors in Sydney four days later to flesh out plans to refocus more on copper.