The head of one of the world’s largest mining companies says he’s betting big on Canada.
In an interview with BNN Bloomberg on Tuesday, BHP Group Ltd. CEO Mike Henry touted his company’s recent dealmaking in Canada, pointing to a joint venture with Lundin Mining Corp. to acquire Toronto-listed miner Filo Corp.’s copper assets in South America.
“We are in path of growing copper production by 24 per cent over three years,” said Henry, a Canadian with over three decades of experience in the mining industry.
Australia-based BHP has also tapped Canada for its potash. The $14 billion Jansen potash project in Saskatchewan is expected to become one of the world’s largest potash mines once production begins at the end of 2026.
“Canada is a great place to invest, and I can’t speak highly enough of the effort of the Saskatchewan government,” Henry said. “Shareholders in the company will benefit from our investment in potash for decades to come.”
Dividend cut on China weakness
Henry’s comments came after BHP announced it was trimming its interim dividend to an eight-year low as weakened iron ore demand out of China ate into the company’s first-half profits.
But Henry said he expects Chinese demand for iron ore, mainly used to produce steel, to peak this decade.
“Every major economy as it develops goes through a steel intensive phase of economic development,” he said.
“In due course you will see a peak in steel demand in China… as a result of that you will face shrinking iron ore demand long-term.”
Looking ahead, Henry said BHP is focusing on the “next place to be,” which he said is copper, adding that as China enters its next economic development phase and the world moves towards the clean energy transition, demand for the metal will increase.
