it is set to merge its petroleum assets with petroleum exploration and production company Woodside, paving the way for a global energy colossus. The merger, which is yet to be approved by shareholders and regulators, will be owned 52 per cent by Woodside shareholders, while existing BHP investors will owning the remaining 48 per cent.
If the epic tie-up does go ahead, it would create the largest ASX-listed energy company, which would reach the global top 10 in terms of production volumes.
BHP chief executive Mike Henry noted that the union would strengthen the talents, skills and technology of the two companies “to build a resilient future as the world’s needs evolve”. “BHP’s products are essential to global economic growth and decarbonisation,” he said. “The world is going to need more copper and nickel for more renewable power and electric vehicles, iron ore and high-quality metallurgical coal to produce steel for infrastructure – and that includes infrastructure for decarbonisation – and potash for sustainable global food production.”
When inquired if BHP intends to call it quits on hard coking coal, Henry noted that since the commodity is expected to be in demand from steel mills for the foreseeable future, the mining company hopes to seek highest quality in its production with the aim of reducing their carbon footprint. “The ability to produce steel without any coal whatsoever, that’s going to take a fair amount of time to unfold,” he added.
Meanwhile, in anticipation of the merger announcement, environmental campaigners gathered outside BHP’s Perth headquarters to protest. According to Anthony Collins, a campaigner with 350 Perth, the purpose of the gathering is to demonstrate the fact that simply dumping BHP’s fossil fuel projects at the feet of Woodside is just not going to cut it. “Rather than take responsibility for the highly polluting petroleum business sites BHP has built, this is a cynical attempt to simply walk away,” he said. “Ultimately, Woodside is acting as BHP’s ‘useful idiot’; taking on a burden that BHP has decided is too toxic to touch.”
