Why do we own BHP Group? 

BHP is the world’s largest diversified mining company, producing essential resources such as iron ore (used to make steel), copper (used in electricity networks, renewable energy and electric vehicles), metallurgical coal (used in steelmaking), and potash (used in fertiliser). Its operations span Australia and overseas, supplying materials for construction, infrastructure, energy, and food production. BHP’s portfolio is built around large, long-life mining assets, giving investors exposure to resources that are critical to both the global economy today and future growth. 

BHP’s strength comes from the scale and quality of its operations. The company has a leading position in iron ore, which provides a reliable source of earnings, while copper offers exposure to long-term growth trends such as electrification and the shift to cleaner energy. BHP is also developing its Jansen potash project in Canada, marking its entry into fertiliser production and providing future exposure to global agriculture. This mix of commodities helps balance the natural ups and downs of resource markets, as demand for different materials can change over time. 

BHP’s size, high-quality assets, and disciplined approach provide a strong foundation for long-term investors. While earnings can move with commodity prices and global growth, the company’s focus on large, low-cost operations and essential resources supports resilience through the cycle. With exposure to materials needed for building, electrification, and food production, BHP remains well-positioned to deliver long-term value for shareholders. 

ASX-listed BHP Group is a direct holding in Evidentia Quality Core, which is held in the Partners Medium Term, Long Term, and Multi-Asset Income Portfolios.