Company Profile: BHP Billiton

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BHP Billiton is one of the world's largest mining and resource companies with roughly 72,000 employees in more than a dozen countries. The company is headquartered in Melbourne, Australia and listed on the Australian Securities Exchange (as BHP Billiton Ltd.) and on the London Stock Exchange and the Johannesburg Stock Exchange (as BHP Billiton Plc).

History

BHP Billiton was formed in 2001 as a result of a merger between Broken Hill Proprietary (BHP) and Billiton. Billiton originated as a tin mine on Indonesia's Belitung Island in the 1860s, while BHP was first incorporated in 1885 as a silver, lead, and zinc producer in Broken Hill, Australia. The two companies merged in June 2001 to become one of the world's largest diversified resource companies.

2019 Financial Summary

For the 2019 fiscal year, ending June 30, 2019, BHP reported modest growth over the prior year with 44.3 billion in revenue, compared to 43.1 billion in 2018:

  • Net Operating Cash Flow: $17.8 billion
  • Earnings per share: $1.60
  • Dividend per share: $1.33
  • Earnings before interest, tax, depreciation, and amortization (EBITDA): $23.1 billion

Products

BHP Billiton is among the world's largest producers of coal, copper, iron ore, petroleum, and potash. During fiscal year 2019, BHP produced 238 million metric tons of iron ore, 1.69 million metric tons of copper, 121 million barrels of petroleum, and 70 million metric tons of coal.

Coal

The BHP Mitsubishi Alliance (BMA) is an equal partnership between BHP and Mitsubishi Development at Queensland Coal, where BHP also owns an 80% stake in BHP Mitsui Coal (BMC) with minority partner Mitsui and Co. BMA is Australia's largest coal producer.

In Colombia, BHP owns one-third interest in Cerrejon, which includes a coal mine and rail and port facilities that export to North America, the rest of South America, Europe, and Asia.

Copper

BHP has copper assets in Chile, Peru, and Australia.

In Chile, BHP owns 100% of two operations and 57.5% of a third. Pampa Norte, wholly owned by BHP, includes the Spence and Cerro Colorado operations, which produce copper cathodes. BHP owns the majority of the Escondida mine, a copper porphyry deposit with gold anbd silver as well.

In Australia, BHP operates Olympic Dam, an underground mine containing one of the world's largest deposits of copper, in addition to gold and uranium.

Iron Ore

BHP Billiton's iron ore operations are concentrated in Western Australia and Brazil.

In Australia, four mining hubs—Newman, Yandi, Mining Area C, and Jimblebar—produce fine and lump iron ore. More than 620 miles of rail infrastructure and port facilities connect the hubs with BHP's five adjacent mines.

The Samarco operation in Brazil annually produced more than 21 million metric tons of iron ore pellets and 1 million metric tons of concentrates until a dam break in 2015. BHP and Vale, which share equal ownership in Samarco, continue repair efforts as of 2020.

Petroleum

BHP has petroleum assets throughout Australia, in the Gulf of Mexico in the United States, and Algeria, Trinidad and Tobago, and the United Kingdom. These assets include conventional oil and gas exploration, development, and production operations.

In Australia, BHP has interest in operations at Bass Strait, the North West Shelf Project, Pyrenees, Macedon, and Minerva. The operations in the Gulf of Mexico includes two fields off the coast of Louisiana.

Potash

BHP's Jansen Potash Project includes 100% mining rights to about 3,700 square miles in Saskatchewan, Canada. As of 2020, it was being developed in stages with the hope that it could produce about 4 million metric tons annually.

BHP Billiton Group Registered Offices

BHP Billiton Limited in Australia is located at BHP Billiton Centre, 180 Lonsdale Street, Melbourne VIC 3000. It can be reached by phone at (300) 554-757 from within Australia or at +61 3 9609 3333 from outside Australia.

BHP Billiton Plc in England is located at Neathouse Place, London SW1V 1BH. It can be reached by phone at +44 20 7802 4000.

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Article Sources

  1. BHP. "About Us." Accessed March 20, 2020.

  2. BHP. "Our History." Accessed March 20, 2020.

  3. BHP. "BHP Results for the Year Ended 30 June 2019." Accessed March 24, 2020.

  4. BHP. "Annual Report 2019." Page 7. Accessed March 24, 2020.

  5. BHP. "Minerals Australia." Accessed March 24, 2020.

  6. BHP. "Minerals Americas." Accessed March 24, 2020.

  7. BHP. "Supporting Samarco and Renova Foundation." Accessed March 24, 2020.

  8. BHP. "Petroleum." Accessed March 24, 2020.