By Melanie Burton
MELBOURNE, March 18 (Reuters) – Mining giant BHP Group on Wednesday promoted senior executive Brandon Craig to CEO, succeeding Mike Henry, who will step down after more than six years at the helm, as the industry undergoes a generational shift amid a rush for copper.
Craig, 53, serves as president for BHP’s Americas division and led its Western Australia iron ore business for three years, giving him top-level experience across BHP’s two most important businesses as demand soars for the minerals it retrieves.
A naturalised Australian, Craig holds a Master’s in Business Leadership and a Bachelor of Engineering (Mechanical) from the University of Natal, in South Africa.
“He’s run the iron ore business, and the Americas is probably the most important business for BHP in the years ahead,” said Andy Forster of Sydney-based Argo Investments. “I reckon he’s super impressive.”
Craig will step into the role on July 1 amid a generational refresh of leadership among major miners grappling with challenges and opportunities from elevated geopolitical risk, artificial intelligence, and a rush to nurture new supply chains for minerals deemed critical to the energy transition.
In the past six months, gold miners Barrick Mining and Newmont Corporation have replaced their CEOs, as has BHP spinoff South32, while Rio Tinto’s new CEO Simon Trott is less than a year into the top job.
The push to get at key metal copper is also driving a wave of large-scale consolidation that is changing the face of major companies.
Under Henry’s stewardship, BHP became the world’s top producer of copper, the most cost-effective conductive metal that is key to the energy transition.
The timing of Craig’s appointment was surprising to some, after insiders late last year said Henry still had plenty of energy for the role. “I thought Mike might be around for longer,” Forster said.
HENRY’S LEGACY
In his tenure as CEO, Henry has overseen a major reshaping of BHP’s portfolio, including an exit from petroleum, the scrapping of its dual-listing in the UK, and a shift toward commodities such as potash and copper, which accounted for the majority of BHP’s profits for the first time in its most recent half-year results.
“Henry was the first CEO in years to leave behind a cupboard full of options for the next leader,” said analyst Glyn Lawcock of Barrenjoey in Sydney.
“If you think about what Mike walked into, the cupboard was bare,” he said. “They had tried to put options on the table with shale but it didn’t work. Grades were declining at Escondida,” he said, referring to the copper mine in Chile that is the world’s largest.
“He leaves behind now a vision for copper South Australia, a whole new copper precinct in Argentina and a pathway back to a million tons a year at Escondida,” he said.
Henry also oversaw several failed attempts at buying Anglo American to expand BHP’s long-term copper exposure.
Speculation last year had grown that BHP would appoint its first female CEO, with bets on experienced petroleum executive and head of Australia Geraldine Slattery, who was pipped at the post by mining engineer Craig.
(Reporting by Melanie Burton in Melbourne and Roshan Thomas in Bengaluru; Editing by Cynthia Osterman, Sonali Paul and Jamie Freed)
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