As Dave put it you guys killed it right. These numbers are really really impressive. Shareholders should be happy. But
looking at the outlook I'm actually very curious about how positive you are in China. We had some pretty horrible domestic
activity numbers out yesterday. The PPACA seems to be pivoting a bit. We've got these twin drags right of property of Covid 0. So
tell me what you're seeing that economists are not. Well so look thanks for the question it was a strong set of
results. If we turn to the outlook really what we're saying is that against the backdrop of slowing global growth we think
China is going to be a tailwind on on growth. We can see positive growth support policy settings in China as
they come out of coal with lockdowns. But a stimulus in the months ahead. We think that over the next six to 12 months China
if anything is going to provide some stability to global growth and we'll help offset some of the slowing that we see elsewhere.
At the same time though you're still building this warchest for these future facing medals but it's tough going in finding
opportunities. Right. You were rebuffed by Alice Mills. You outbid by Twiggy earlier in the year for the nickel project.
Where are you seeing opportunities. The prices still too elevated at this point.
So we are seeking to grow in future facing commodities specifically potash nickel and copper. Last year we triggered
the first phase of the Jensen Project in Canada. So Jensen stage 1 five point seven billion U.S. dollars. It'll be our first
project in potash but it opens up a pipeline of really attractive future growth in that commodity. I come to copper
nickel. BHP holds the world's largest endowment of copper. Second largest endowments of nickel sulphide which is the more
attractive of the types of nickel that are out there. And we're looking to accelerate the development of new options within the
resources that we have. We've increased exploration spend where we've become more commercially nimble and in getting told
positions in some undeveloped resources mandate does remain a lever. But as you saw with neurons last year we will remain
super disciplined on this front as tall as minerals we put in front of them a a non-binding indicative offer very compelling
offer we think for for their shareholders. Over 30 percent premium to last trading day over 40 percent premium to 30 day
view up. Very disappointingly they've chosen not to engage. But as I said it's one of many options for us to look to grow in
these in these really attractive quantities. What are the other options. Her company.
Because it doesn't seem to be a lot of compelling politically stable options out there. So would you go back to Oz Minerals.
Well so on Indian copper as I said BHP holds the world's largest endowment of copper. We have the world's largest copper mine and
Eskom data. Over the past twelve months we've looked to accelerate studies where we bring this this great underlying
productivity performance that where we're unlocking in the business together with innovation and technology to see how we
can unlock more of our copper units more quickly at attractive returns. We're doing something similar in nickel. Now as to
exactly where copper growth lies in the portfolio it's between the Eskom data mine the Spence mine where we recently undertook
a 50 year expansion and the Olympic Dam mine now close to Olympic Dam. We have a deposit called Oak Dam recently
discovered. Drilling continues underway at that deposit and so far it's it's
positive. So between those three we do have good growth ahead of us over the next five years basis.
Existing investments. And beyond that time horizon I'm confident we're going to be
able to develop more options between existing assets exploration and early stage entry.
Mike David here that you're out then on the copper market do you think we'll need more of this stuff these next twelve months or
do we have to start paring back our expectations because of the growth outlook. Well so long term outlook for copper is really
strong both for copper nickel and and of course potash. And that's off the back of these unstoppable global trends of
decarbonisation electrification population growth increasing standards of living.
All three of those commodities play to those semantics. Now what happens over the next 12 months really does depend on
that global growth outlook that we were speaking about earlier. We believe China is going to provide a bit of a growth tailwind
but we do expect we'll see slowing global growth elsewhere over the short to medium term. We expect there's going to be a bit of
oversupply in copper but then towards the tail end of the decade we expect the market to move back into balance the world to need
more copper projects and that to be supportive of of pricing. Mike I want to ask you about Queensland. I know the issues
played to open a metallurgical coal mine there. That's going to run for 90 years. Can you maybe explain that a bit more about
how is this compatible with with net zero targets and do you really plan on really opening it.
Oh OK. So I should be clear. I think what you're referring to is the Blackwater s project and there was recently a bit of press
over the fact that there was a process underway to seek relevant regulatory approvals to proceed with an investment. That's very
different from triggering an investment than the way these these approvals processes work. Is there multiple years in the in the
making. So that's an effort that we had underway previously. There's recently been some changes in Queensland has seen us
pull back on further major investments there for now. But that's not because we see the prospects for certain types of coal for
steelmaking as not being attractive going forward. We believe that for certain qualities of of steelmaking coal the type that
BHP is now focused on that actually there's going to be increased demand as steelmakers seek to decarbonise because
whilst in the long term there will be certain steelmaking technologies that don't require coal for the foreseeable future
it's going to be about taking existing approaches to steelmaking making them more efficient. That's going to require better
qualities of coking coal. And that's the bulk of what BHP produces in the coal space currently.
And you've pledged four billion dollars to be spent on that decolonisation process between now and 2030. Can you give us
details on how that money's going to be deployed. Sure. So this is something BHP has been focused on for many many
years now. We already have one of the lowest emissions intensities for an operational emissions perspective in the
industry. We've committed to reducing by a further 30 percent in absolute terms by 2030. So even as we grow the underlying
business we're saying we're committed to to to lowering operational emissions by 30 percent.
We achieved a big improvement over the past 12 months down by over 20 percent. And what's allowing us to do that is a shift
towards renewable power to supply operations. And we made some bold moves in Chile a few years back that are now paying off in
terms of reducing the emissions footprint there. We've made some good inroads in Australia as well. And what we're saying is that
to get to that full 30 percent which by the way is a floor rather than a ceiling. So we're saying at least 30 percent by
2030. That's going to require four billion dollars. We are focused on
returns. I've said previously that right now our plans show negative five hundred million dollars for that four billion
dollar spend. Our accountability is to improve the underlying economics of
that. And so far that's looking looking positive. Where's the money
going to go. It's going to go into moving to renewable power. The early stages of removing diesel from our our truck fleets on
onsite and our operational emissions are 40 percent power 40 percent diesel 20 percent other. And it's really in the power in
the diesel category and in the near term that we're going to be looking to to invest that capital and bettering that. And the
supercycle that have your views changed on that since we last spoke. I think I just asked you that in February. Look the views
for the battery metals complex haven't changed. We see that as being attractive long term. There's certain metals or
opportunities there in that we see as being more compelling for BHP and specifically nickel.
And so we have just as we spoke about in copper earlier we're looking to develop more options in our nickel portfolio. And
that comes through the existing asset that we have in Nickel West as well as through exploration and early stage entry. So
we've we've taken a number of steps forward on that in the past year and we remain very optimistic about nickel as we are with
copper and potash.