BHP Group, the world’s biggest mining company, is conducting a strategic review of the Brazilian copper and gold assets it acquired with the takeover Oz Minerals, Mining Weekly reports.
The $6.4-billion purchase of Oz Minerals included an untapped gold deposit and four small, but high-grade, copper-gold mines in the state of Para.
The takeover was a part of BHP's strategy to move towards key green-energy transition minerals. According to the company, the so-called “future-facing” metals, which also include nickel and fertilizer ingredient potash, are central to its growth as iron ore use plateaus and the world moves away from fossil fuels.
“It’s about understanding the resources and the opportunities. We haven’t operated before in Brazil,” said Carla Wilson, BHP's Brazil’s country manager. “But it’s clearly a region of future facing commodities, which BHP is very focused on: copper, nickel.”
Until the acquisition, BHP’s presence in Brazil was confined to Samarco, an iron ore producer. The company still faces the consequences of a 2015 deadly dam collapse, including a lawsuit in the UK and the renegotiation of a compensation settlement with Brazilian authorities, both potentially involving billions of dollars.
Samarco just got approval for its judicial recovery plan, in a years-long debt restructuring triggered by the disaster. Wilson said BHP is focused in repairing the damage caused and getting output back to full capacity by 2028. Samarco’s iron-ore pellets command a premium as they are used to produce low-carbon steel.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
