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Mining major BHP has reaffirmed its positive long-term view of the industry, despite trade tensions. Speaking at the company’s annual general meeting, CEO Andrew Mackenzie said that while BHP’s foundations were strong, the company remained conscious of the geopolitical landscape.
“Current trade tensions are weighing on consumer confidence and have the potential to impact demand for our key commodities. With our strong balance sheet, low cost operations, and successful capital allocation framework, we are confident that we are well positioned to weather any future volatility.”
Mackenzie noted that the company’s long-term view remained positive, as industrialisation and urbanization, along with decarbonisation and electrificiation, are expected to generate demand for energy, metals and fertilisers for decades to come. “We are confident we have the right assets, in the right commodities, to meet this demand,” he said.
BHP has set aside $8-billion for capital expenditure in both 2020 and 2021, with chairperson Ken MacKenzie saying the company’s focus would remain on its five core commodities. “These assets are low cost, produce high quality products and have strong development potential. We also have a set of attractive options within our portfolio across a range of commodities and geographies. “We are confident our portfolio is true to our strategy. We are in the right commodities and have the best assets to deliver value to shareholders in the short, medium and long term,” MacKenzie said.