BHP Group Ltd.

BHP Group Ltd. is a senior copper and iron producer headquartered in Melbourne, Australia, operating primarily in Australia and South America. The company's portfolio consists of 13 projects, comprising 7 operating mines, 3 development, 1 advanced exploration, and 2 suspended projects. Key assets include Copper South Australia (Olympic Dam, Carrapateena, Prominent Hill) and Western Australia Iron Ore (WAIO). The business model is centered on an integrated system of large, long-life, low-cost assets connected by proprietary infrastructure, enabling significant economies of scale. A core operational differentiator is the BHP Operating System (BOS), a unique management framework that empowers the workforce to drive continuous improvement in safety, productivity, and efficiency by working on the system, not just within it. This approach is underpinned by principles of serving the customer, pursuing operating perfection, and empowering people. Technological adoption is a key advantage, with artificial intelligence and advanced data analytics applied to optimize resource recovery, enhance processing plant performance, and reduce energy and water consumption. For example, AI tools are used to improve post-blasting fragmentation and increase revenue. The enterprise maintains a centralized marketing and procurement function to maximize commercial value and manage supply chain risk. The portfolio is structured for resilience against market volatility, with a focus on assets that are critical for global economic growth and decarbonization trends. This strategic positioning is designed to deliver stable, long-term value creation for all stakeholders.

Strategic direction is anchored in responsibly managing a resilient, long-term portfolio and growing value through operational excellence, resource discovery, and disciplined capital allocation. The Capital Allocation Framework (CAF) is a central pillar, prioritizing a strong balance sheet, funding maintenance capital, and ensuring a minimum 50% dividend payout before allocating excess cash to growth, debt reduction, or additional shareholder returns. Growth is pursued through a dual approach: unlocking productivity from existing assets and securing new options in future-facing commodities. This includes advancing a pipeline of organic development projects and leveraging early-stage entry opportunities through dedicated units like BHP Ventures, which targets game-changing technologies, and the BHP Xplor accelerator program, which nurtures early-stage exploration companies. The strategy also involves actively refining the portfolio by divesting non-core assets to concentrate on higher-quality products that command premium pricing and align with long-term demand trends. Social value creation is integrated into strategic decision-making, viewed as essential for maintaining a social license to operate and securing access to future opportunities.

The Board of Directors consists of 10 members and maintains gender balance, with 40% female representation. Governance is structured through 4 standing committees: Nomination and Governance, Risk and Audit, Sustainability, and People and Remuneration, which provide oversight on key strategic and operational matters. The Chief Executive Officer, Mike Henry, brings over 30 years of global industry experience to the role. A structured Board renewal process ensures a balance of experience and fresh perspectives, with 2 new independent Non-executive Directors appointed in FY2024. The corporate culture is guided by a refreshed set of values launched in May 2024: 'Do what’s right', 'Seek better ways', and 'Make a difference'. These values are embedded through leadership development initiatives such as the Senior Leadership Forum and BHP Distinctive Leaders programs, which are designed to build capability and drive performance. The Group Company Secretary is directly accountable to the Board, advising on all matters of governance process.

The sustainability framework is built on 6 pillars, each with a 2030 goal. The decarbonization strategy includes a medium-term target to reduce operational GHG emissions by at least 30% by FY2030 from an FY2020 baseline and a long-term goal of achieving net zero operational GHG emissions by CY2050. This is supported by collaborations with industry partners to develop technologies like electric smelting furnaces. Environmental stewardship is advanced through a 2030 goal to create nature-positive outcomes by having at least 30% of stewarded land and water under conservation, restoration, or regenerative practices, guided by the BHP Healthy environment goal roadmap. The organization has an aspirational goal to achieve a gender-balanced employee workforce by the end of CY2025, reaching 37.1% female participation in FY2024. A key social commitment involves strengthening Indigenous partnerships, demonstrated by an 83% increase in Indigenous procurement spend to over US$600 million in FY2024. Workplace safety is paramount, with a strategy to eliminate sexual harassment, which is defined as a material health and safety risk, and a Fatality Elimination Program to strengthen critical risk controls.

The corporate structure is actively managed through strategic acquisitions and divestitures to align with long-term objectives. In May 2023, the company completed the acquisition of OZ Minerals to consolidate a significant resource base. The portfolio was further refined through the divestment of the Blackwater and Daunia mines in April 2024. An agreement was announced in July 2024 to form a 50/50 joint venture with Lundin Mining to advance the Filo del Sol and Josemaria projects. The company operates a significant joint venture, the BHP Mitsubishi Alliance (BMA), in which it holds a 50% interest. It also holds non-operated interests in other entities, including a 33.75% stake in Antamina and a 50% interest in Samarco. Major institutional shareholders with holdings of 5% or more include BlackRock Group, Citigroup Global Markets, State Street Corporation, and The Vanguard Group Inc., providing a stable investor base.