BHP Group is one of the world's largest diversified resource companies with operations across several continents. The company, with a market capitalization of around $176 billion, operates under a Dual Listed Company structure with two parent companies (BHP Group Limited and BHP Group Plc). It operates as single economic entity, sharing the same board and management team with common headquarters in Melbourne, Australia.
BHP Group owns and operates large, long-life, low-cost and expandable assets worldwide. Further, its asset portfolio is well diversified – by commodity, geography and market. The company’s strong cost discipline over the past five years has led to a decline of 20% in its unit costs across major assets. A diversified portfolio, lower costs and continued focus on technology and innovation provides it an edge over peers. Moreover, population growth and rising living standards are expected to continue generating demand for energy, metals and fertilizers for years to come, which will drive BHP Group’s growth.
The company has more than 72,000 employees and contractors, who work in over 90 locations worldwide. The company engages in exploration, development, and production of oil and gas properties; and mining of copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical and energy coal. It also engages in the mining, smelting, and refining of nickel and potash development activities.
Its products are sold worldwide, with sales and marketing led through Singapore and Houston, United States. It manages product distribution through global logistics chain, including freight and pipeline transportation. It sells products through direct supply agreements with customers and on global commodity exchanges. Its segments are-
The Petroleum segment (9% of fiscal 2020 revenues) is engaged in the exploration, development and production of oil and gas.
The Copper segment (25%) is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold.
The Iron Ore segment (48%) is engaged in mining of iron ore.
The Coal segment (15%) is engaged in mining of metallurgic and thermal coal.