MELBOURNE, Sept 15 (Reuters) - The world's biggest
mining company, BHP, touted its solid copper potential
and flagged the investment appeal of the United States on
Monday, but was silent on the prospect of major buyouts, as top
executives briefed shareholders.
CEO Mike Henry and Chief Financial Officer Vandita Pant
answered select questions in the first major opportunity to talk
to investors since last week's blockbuster tieup of one-time
target Anglo American and Teck Resources ( TECK ).
Their answers focused on growth potential from BHP's
Argentinian copper assets, the United States' investment allure,
and production delays at BHP's Jansen potash project in Canada.
It was unclear if all questions submitted by shareholders
were asked. BHP did not immediately reply to a request for
comment on how it chose the questions to answer.
"The copper growth story for BHP is one of the big stories,"
Henry said. "We have made so much progress...We now have four
big copper growth basins on top of the 28% copper growth that we
have seen in recent years."
Those basins include the Vicuna 50-50 joint venture with
Lundin Mining ( LUNMF ) in Argentina, the U.S. Resolution tie-up
with Rio Tinto, Escondida in Chile and BHP's South
Australian copper operations.
Henry sidestepped a question whether the miner was
interested in buying Toronto-listed NGEX Minerals ( NGXXF )
which is also active in Argentina's Vicuna district. NGEX did
not respond to a request for comment outside office hours.
The question of big ticket mergers and acquisitions was not
tackled. The $53-billion Ango-Teck tie-up announced last week is
widely expected to spur more M&A action, in a breakthrough after
years of failed consolidation efforts in the mining sector.
The deal came just over a year after BHP scrapped a
$49-billion bid for Anglo that would in a single acquisition
have beefed up the Australian miner's holding in copper, seen as
essential to the energy transition.
Investors and bankers told Reuters last week that they did
not expect BHP to gatecrash the current deal, since it is
focusing on expanding its own copper assets during a time of
leadership renewal.
Henry also said the United States, with half the power costs
of Australia, was focused on drawing in mining investment, as
Australia reviews productivity.
He also conceded that BHP's anticipated internal rate of
return from its Jansen investment would come under pressure
after it raised capital expenditure estimates in July and pushed
back first production.