BHP Group Drops 3.13% Amid Restructuring Rumors

On April 3, 2025, BHP Group's stock experienced a 3.13% drop in pre-market trading, reflecting investor concerns and market dynamics.

BHP Group, the world's largest listed mining company, has been considering a strategic move to split its Australian iron ore and coal divisions. This potential restructuring is part of a broader plan to focus on key commodities such as potash and cobalt, similar to its 2015 decision to spin off South32. The most likely outcome would be for these divisions to be listed on the Australian stock exchange.

This strategic shift comes as BHP is pushing for greener operations and preparing for potential acquisitions, such as the Anglo American Resources Group in 2023 and 2024. If implemented, this move would fundamentally reshape BHP's product portfolio and business landscape, potentially distancing the company from its over 50-year history of iron ore mining in Australia. Approximately 60% of BHP's profits come from iron ore, and separating coal from iron ore would significantly reduce the company's carbon emissions.

However, BHP has decided not to proceed with this plan at the moment. The discussions provide insight into the scale of transformation the mining company is considering as it reorients its future direction through leadership changes. The company will retain its copper assets in South Australia to support its strategy of becoming a leading supplier of metals needed for the energy transition.