BHP Group has announced that it would sell its oil and gas business to Woodside Petroleum Ltd. The deal will effectively end the company’s operation in the sector. BHP, the world’s biggest miner, plans to quit the fossil fuel industry to focus on “future-facing” commodities. The move is a pivotal decision by CEO Mike Henry, who has been seeking to focus on metals and minerals since taking the helm in January 2020.
Iron ore and copper, crucial metals for the green-energy transition, account for the lion’s share of BHP’s profits. The company will also focus on expanding its nickel production and divest its thermal coal operations. BHP is also set to commence the first stage of construction of the Jansen potash mine in Saskatchewan, Canada. The mine is expected to start production in 2027 and make BHP one of the world’s top potash producers. BHP’s shares jumped 9.8% in London after the announcements.
