We’re pursuing options to divest our interests in metallurgical coal at BHP Mitsui Coal (BMC), thermal coal at New South Wales Energy Coal (NSWEC) and Cerrejón in Colombia.

BHP’s portfolio is shifting towards higher quality coking coals. Within our current portfolio, metallurgical and thermal coal assets will not attract the investment necessary to maximise their value.

Divesting our interests in BMC, NSWEC and Cerrejón is the best way to maximise their value to the community and the benefits they bring to lives and livelihoods.

The proposed divestment of BHP’s metallurgical coal assets in Queensland and thermal coal assets in NSW and Colombia does not mean they are not valuable or viable.

Energy coal is expected to remain an important part of the energy mix, and metallurgical coal is expected to remain essential to steelmaking, for many decades to come.

We are exploring what the future looks like for these operations – whether that’s starting a new, specialised company to own and operate them or undertaking a trade sale.

These outcomes were flagged as part of the review:

• Demerger: The establishment of a new, ASX and LSE-listed company which would hold BHP’s interests in BMC, NSWEC and Cerrejón. The divestment of these assets from BHP and the process to establish the new listed company would be similar to what happened with South32.

• Trade sale: The purchase of all or selected assets by a third party or the transfer of asset ownership via a swap.

This process will take time and we recognise the impact uncertainty has. We expect the divestment process could take one to two years in total.

We know that a global pandemic and trade uncertainty makes this a particularly challenging time. And that any extra uncertainty caused by this decision is not easy to manage. Despite the unknowns, our workforce and stakeholders can be confident that BHP is committed an up-front and transparent process.

For now, it’s business as usual and nothing changes. Along with our joint venture partners, we will continue to safely operate our sites.

Over many years, the value of these assets has been realised through the work of BHP’s skilled and dedicated people and the support of the communities in which we operate.

We will work closely with our employees and support the communities we’re a part of.

For now, it’s business as usual and nothing changes. The skills, experience and site-specific knowledge our workforce brings is vital to the effective operation of each site.

The Divestment Review is not a barrier to building your skill set and progressing your career. Work with your line leader to plan what the year looks like for you.