BHP has recorded a strong financial year ending 30 June 2023, underpinned by consistent production and capital and cost discipline as BHP dealt with lower commodity prices and inflationary pressures, CEO Mike Henry announced.
BHP has reported a revenue of US$53.8 billion, a decrease of 17% from last year’s revenue of US$65.1 billion. The company has attributed the decrease in revenue to the significantly lower prices across iron ore, metallurgical coal, and copper.
According to the company, it experienced an effective inflation rate of ~10% during the fiscal year, and it expects the lag effect of inflation to continue into FY24, notably in labour expenses.
Henry stated that BHP’s balance sheet is strong and purposefully positioned to support portfolio expansion in commodities the world requires for population, growth, urbanisation, and decarbonisation.
Additionally, BHP achieved production records at Western Australia Iron Ore (WAIO), Olympic Dam, and Spence, with full-year production guidance achieved for copper, iron ore, metallurgical coal, energy coal, and nickel.
He reported that potash investment in Canada is on track, with the first production at Jansen scheduled for the latter half of 2025. Additionally, he unveiled plans to develop a new copper province in South Australia following the OZ Minerals acquisition.
BHP is also investing in new ideas, technologies, and countries via exploration and early-stage copper and nickel prospects to capitalise on future growth potential.
“We continue to build an inclusive, high-performance, culture and a more sustainable business which are key to our future competitiveness and ability to deliver sector-leading returns. Today, more than 35% of our employees are female and we have increased Indigenous employee representation globally,” Henry stated.
The company reported that around 48% of its external hires in FY23 were female, and a 29.7% representation of women in leadership.
Moreover, BHP has increased its Indigenous employee representation globally, including 8.6% in Australia, 9.7% in Chile, and 7.7% in Canada.
“We are taking action to reduce our operational GHG emissions through renewable electricity supplies and supporting the development of electric trucks, trains and light vehicles. As of today, BHP has among the lowest absolute operational GHG emissions of the major mines,” Henry said.
In June 2023, BHP provided an update on its approach to accomplishing its operational decarbonisation target and goal. It is on track to fulfil its FY30 target of reducing Scope 1 and Scope 2 emissions from operated assets by at least 30% from FY20 levels.
To achieve its Scope 3 targets, BHP has formed seven collaborative relationships with steelmakers responsible for 19% of reported global steel output.
“Commodity demand has remained relatively robust in China and India even as developed world economies have slowed substantially. In the near term, China’s trajectory is contingent on the effectiveness of recent policy measures. We expect buoyant growth in India with strong construction activity underpinning an expansion in steelmaking capacity. More broadly, there is increased recognition of the importance of critical minerals and strategies across the globe to incentivise investment in supply and demand, which provides opportunities and challenges,” Henry stated.
In fulfilling its commitment to responsible supply chains, BHP has launched the BHP Responsible Minerals Program, a fit-for-purpose program for minerals and metals supply chains under OECD guidance.
Additionally, Henry reported two fatalities during its operations.
“The tragic deaths of two of our colleagues during the year have been deeply felt. Our absolute priority remains eliminating fatalities and serious injuries at BHP,” he added.
