We have a strong portfolio that we will continue to shape for the future
As we look to the future, we remain confident the world will continue to need the commodities we produce. However, we also recognise that the world is dynamic
and changing.
Global trends such as the electrification of transport, decarbonisation of power, population growth and rising standards of living are
expected to drive demand for copper, nickel and potash future facing commodities even as growth in demand for iron ore, metallurgical coal and oil and gas slows.
And, we are actively managing our portfolio to protect and grow value. This includes creating more options in future facing commodities for long-term growth
and tending to our current portfolio to maximise the value of our assets.
Through our rigorous approach to capital allocation, we will create and secure
more options through innovation, exploration, early stage entry and well-timed acquisitions of attractive resources and assets.
We have already made some
progress here, adding copper and nickel options to our portfolio earlier in the year, and we are progressing towards a final investment decision on our potash project in Canada next year.
In terms of our existing portfolio, we recently announced steps to optimise our coal portfolio through focusing on high-quality hard coking coal and divesting
our other coal operations.
And, as part of our balanced approach to investing in Petroleum, we recently grew our working interest in Shenzi but we also
shared our intent to divest from more mature, later life assets, including our non-operated interest in the Bass Strait joint venture.
As we shape our
portfolio for the future, it is incredibly important that we deliver exceptional safety, operational and financial performance.
In the face of market
uncertainty and slowing rates of growth in commodity demand, a greater proportion of value growth will come from an unrelenting focus on being great at what we do.
We remain committed to the capital discipline we have demonstrated in recent years and will further build upon our technical and operational capability. The
revised shape of the Executive Leadership Team will bring operational and technical excellence to the fore, along with our focus on our portfolio and social value.
Momentum is with us and we are well-positioned for the year ahead
In the near term, we expect that the global economy will take some time to stabilise and recover from COVID-19.
Given the variable nature of the pace and structure of the recovery around the world and exacerbated by global trade tensions, the outlook for commodity
markets remains uncertain. However, the strength and consistency of the economic recovery underway in China does provide a measure of confidence and optimism.
BHPs performance in the past year illustrates the resilience of our portfolio, balance sheet, people and relationships. We are very well positioned to
weather uncertainty and to emerge from COVID-19 stronger, faster-paced and more focused.