Terry McCrann on BHP: Welcome home to the big Aussie

MINING giant BHP is coming home to Australia and is back on track in both name and thinking after taking a left turn 15 years ago, writes Terry McCrann.

BHP is coming home to Australia.

When it merged with the British-South African Billiton at the turn of the century, it aimed to become the “Global Australian”. Australia just wasn’t going to be big enough for it in the 21st century.

Now in both name and operational direction, it wants to go back to being “The Big Australian”.

BHP RETURNS TO ROOTS IN NAME CHANGE

That doesn’t mean it won’t still have major operations overseas. It runs one of the biggest copper mines in the world in Chile. At least for the moment, it has its huge — and controversial — oil shale business in the US.

But the operational heart of tomorrow’s BHP will once again be its mammoth iron ore mines in Western Australia, its coal mines in Queensland, and oil and gas off northern Australia.

A promotional image for the new BHP brand campaign.

If BHP prospers, so does Australia. It’s probably our single biggest export earner.

Since the turn of the century, it has paid close to $100 billion in taxes and royalties in Australia.

It is absolutely critical to Australia’s prosperity that both continue — something that would have been put at risk if Wall St raider Elliott Management had managed to steal its main market listing, and board and management, away to London.

The return to its 19th century BHP roots also doesn’t mean it won’t employ foreigners. Both its top two executives come from overseas, one’s Scottish the other South African.

BHP will continue to get its top management from the global talent pool. But once “got” — apart from those where it makes sense to locate overseas — they will have to come to Melbourne.

And in coming to Melbourne, they will be responsible to a board that’s mainly Australian; and the board in turn is directly answerable to local shareholders and Australian governments.

BHP took a left turn in 2002. It’s now back on track in both name and thinking.

Originally published as Terry McCrann on BHP: Welcome home to the big Aussie