BHP CEO standing down after six years in charge, with Brandon Craig to replace
Updated ,first published
Global miner BHP is taking precautions against Australia’s skyrocketing diesel fuel prices and supply chain insecurity, but the higher costs will be reflected in commodity prices, the resources giant’s outgoing chief executive Mike Henry and his new boss Brandon Craig say.
Henry will hand over the top job at BHP to Craig in July, resigning from a six-year role as chief executive of one of the world’s largest mining companies.
Craig, a mining engineer with more than 25 years of experience at BHP, was announced as the new CEO on Wednesday; This was a surprise choice for some, who thought BHP’s Australian Minerals President Geraldine Slattery and Chief Financial Officer Vandita Pant were well-placed candidates.
The change at BHP coincides with another CEO appointment in Australia’s multi-billion dollar resources industry; Woodside Energy, the nation’s largest oil and gas producer, has given the top job to Liz Westcott.
Westcott, a former senior executive at American oil giant ExxonMobil and power utility EnergyAustralia, has been Woodside’s interim CEO since Meg O’Neill left in December to lead London-based global energy giant BP.
South African-born Craig is currently BHP’s president of the Americas, overseeing the global resources giant’s Canadian, US and South American operations.
He ran the Pilbara iron ore business before winning what BHP chairman Ross McEwan described as a “robust” succession process.
Both Craig and Westcott assume their roles at a critical time: The war in Iran has caused turmoil in world energy markets, causing oil, fuel and natural gas prices to soar.
Craig said the quality of BHP’s mines provides protection against geopolitical shocks.
“It’s a pretty interesting time, no doubt,” he said of the global instability facing the company and the world more broadly. “I think the really critical thing is to continue to focus on building really strong relationships with both governments and customers.”
Outgoing CEO Henry said the company was closely monitoring supply chain security but said higher diesel prices would lead to higher input costs.
“Our own [diesel] to store, [and] Solid supplier relationships. “We continue to do business as usual with higher input costs, but it’s something we monitor every day and look at how things are going in the world around us,” Henry said, adding that higher input costs will be reflected in part “in how commodity prices play out.”
Meanwhile, Perth-based Woodside is in the midst of a major expansion drive in the US, where it is building a giant terminal designed to export liquefied gas from Louisiana.
Woodside chairman Richard Goyder said Westcott’s track record of strategic leadership and service delivery made him the board’s top choice for the role. “Liz’s extensive industry experience and strategic vision will be invaluable in leading Woodside at this important moment in its history,” he said.
McEwan said Craig’s appointment followed a formal succession process.
“When Mike told me of his intention to resign, the board considered a number of high-quality candidates,” McEwan said. “Brandon’s experience and skills are an excellent choice for our next CEO. He is clear on strategy and how we can continue to drive performance at BHP. We are excited.”
It’s time for CEO changes in resource giants. BHP’s biggest rival, Rio Tinto, also re-strengthened its leadership by appointing former iron ore chief Simon Trott as chief executive to replace Jakob Stausholm last August.
Henry, who has led BHP since 2020, said he was proud of his achievements and left the company well positioned for growth.
The Canadian-born executive has shifted BHP’s focus to “future-proof” commodities such as copper, nickel and potash, positioning the company to benefit from a boom in minerals that will support the world’s energy transition from fossil fuels.
He oversaw BHP simplifying its structure as a duel-listed company in 2022, spinning off its oil business in a merger with Woodside, selling off lower-tier coal assets and buying Oz Minerals to boost copper production.
The allure of the red metal prompted Henry to do a double-take at Anglo American and its copper portfolio. Both attempts resulted in BHP’s withdrawal: first in May and then another last-ditch attempt in November last year.
Analysts at RBC Capital Markets reacted positively to Craig’s appointment. “[He] “He is a long-serving BHP executive with deep operational experience in both iron ore and copper and has played a central role in driving BHP’s current growth pipeline,” they said.
“Alongside ongoing capital discipline, we expect a continued focus on large, low-cost premium assets and growth in forward-looking commodities, particularly copper and potash.”
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