BHP chief to 'stick up for globalisation' as trade tensions bite
LONDON - The head of the world's biggest miner BHP said he will "stick up for globalisation" and is more worried about the damage trade tensions are inflicting on the world economy than their impact on demand for the commodities BHP produces.
BHP on Tuesday posted annual profit of $9.12-billion, a bumper figure built largely on selling iron-ore, coal and copper to China, the world's largest importer of commodities
BHP shares were trading 1.6% lower by 11:30 GMT, as despite record dividends, analysts said they had expected even better results.
CEO Andrew Mackenzie told reporters in London protectionism was an act of economic self-harm.
"Economically this is causing disruption and the partial unravelling of global supply chains," Mackenzie said. "We're not completely immune to some form of downturn and that's why we're nervous."
Asked whether commodity cycles had peaked, he said he did not know, adding the company was "anxious but ready".
Prices of iron-ore, which represents nearly 50% of BHP's core earnings, have fallen as the impact eases of supply disruption at the start of the year caused by a dam disaster in Brazil and extreme weather in Australia.
Trade tensions between the United States and China have also impacted market sentiment.
Mackenzie said he would stick up for the benefits of globalisation and opposed moves towards greater intervention such as removing the independence of central banks.
"The people advocating this are committing economic self-harm," he said.
U.S. President Donald Trump has repeatedly criticised the US Fed, accusing it of undermining the administration's economic policies.
Comments
Research Reports
Projects
Latest News
Showroom
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
