Own BHP shares? Here's how the ASX 200 miner could shift to renewables

October 30, 2023 04:17 PM AEDT | By Team Kalkine Media

Google News:

Own BHP shares? Here's how the ASX 200 miner could shift to renewables — Image source: shutterstock

Recent News

Nike and Skims reportedly push back launch of joint brand

Datadog is a top 2nd-half pick at BofA

Macklem flags sharp export declines, inflation risks amid U.S. tariffs

Uber and Lyft stock fall after Waymo applies for NYC testing permit

BHP Group Ltd (ASX: BHP) shares are displaying strength, outperforming the broader market despite ongoing challenges in the sector. The ASX 200 miner is exploring the possibility of transitioning towards renewable energy as part of its post-coal mining plans, sparking interest among investors. Here's an overview of BHP's approach and potential transition into renewables.

BHP's Mt Arthur Coal Mine and Closure Plans: In the past year, BHP revealed its intentions to secure mining permits for the Mt Arthur coal mine in New South Wales, located in the Hunter Valley, with plans to operate until 2030. These plans faced scrutiny, particularly with the temporary introduction of a coal price cap at $125 per tonne, which is set to expire on July 1, 2024.

The Potential for Renewable Energy: Reports suggest that BHP's post-mining plans for Mt Arthur may include a transition to renewable energy. Closure planning documents submitted to the NSW government indicate that the site could be repurposed for hydropower generation after coal mining concludes in 2030. While alternative plans involve converting the site into grazing land and forests, economic considerations and feedback from the local community favor options that sustain economic activity and diversification.

BHP stated that a significant portion of feedback from consultations emphasized the preference for beneficial land uses generating ongoing economic activity, with a focus on diversification outcomes. While specific proposals are yet to be approved, BHP is actively exploring various options for the Mt Arthur site post-coal mining.

Renewable Energy Projects on the Table: BHP is considering the possibility of major renewable energy projects at the Mt Arthur site, such as pumped hydro energy storage stations and solar generation. These projects align with the global transition to cleaner and sustainable energy sources. While no official approvals have been sought for these projects, BHP's open stance on renewable energy indicates a potential shift in the company's operations and strategic focus.

BHP's Recent Performance: Despite ongoing challenges in the mining sector, BHP shares have shown resilience and have gained approximately 21% over the past year. This performance coincided with improvements in the iron ore market, where the price per tonne exceeded US$100, further contributing to BHP's positive performance.

Conclusion: BHP's exploration of renewable energy projects and potential transition post-coal mining underscores the evolving dynamics in the energy and mining sector. As the company continues to study and assess various options for the Mt Arthur site, including renewable energy ventures, investors are keenly watching BHP's strategic moves and their potential impact on the stock's performance.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.