BHP’s top WA exec Tim Day says miner so far unscathed by copper tariffs, cedes ‘the uncertainty is difficult’

BHP’s top executive in WA is less concerned with the financial fallout of US President Donald Trump’s latest copper tariff threats than the frustration of trying to do business in an “uncertain world”. Iron ore boss Tim Day also confirmed BHP’s vice president Australia Geraldine Slattery would be heading to China next week to represent the Big Australian, as US levies threaten the economic prowess of its biggest customer. Mr Day on Wednesday said “there was not a lot” in the likely impact of Mr Trump’s proposed 50 per cent tariff on copper imports into the US, which do not yet have an effective date. “We’re not exposed to the US hell of a lot, so there’s not a lot in it. As we understand that more, we’re trying to try to figure out what it means for us overall,” he told media. The US President had overnight confirmed higher-than-expected copper levies on imports into the US, telling news outlet CNBC “I believe the tariff on copper, we’re going to make it 50 per cent.” BHP’s biggest copper asset is the Escondida mine, owned alongside fellow mining giant Rio Tinto, and is believed to send most of its product to customers in Asia rather than the US. The duo could end up being net beneficiaries of the copper tariffs. Rio runs the Kennecott copper mine in US state of Utah and is developing the Resolution copper project in conjunction with BHP across state lines in Arizona. Resolution in April received fast-track status from the Trump Administration amid years of the project’s progress being bogged down in environmental and indigenous approvals. Copper futures swiftly surged to a record $US5.89 ($9.03)a pound on speculation supplies of the red metal could become tighter in the US, and therefore be a boon for local production. The Australian Stock Exchange’s well-acknowledged lack of pure copper plays meant only a few local stocks were caught up in the market moves. West Perth-based miner Sandfire Resources initially plunged more than 5 per cent to $11.22, before paring back the decline to 3.15 per cent. Despite the share price fall, a Sandfire spokesman said the company has no direct sales into the US. Sandfire is also developing a copper mine in the US state of Montana, but it is still at an early stage. Capstone Copper stock lost more than 4 per cent to $9.23. Mac Copper was relatively unaffected at $18.24. While seemingly unconcerned about the financial fallout of tariffs, BHP’s iron ore CEO indicated the lack of information was presenting more of a challenge. “The uncertainty is difficult for business, so uncertainty makes it difficult. So on any topic, when you’re in an uncertain world, it makes it more difficult to address. So that is true, but as we navigate that, we’ll digest it and try and understand where we go with that,” he said. Keeping up operational performance and staying “at the front of the pack” were ways Mr Day said BHP was tackling the new world order. “We’ll have a representative, Geraldine, going to China next week. In terms of what it means, obviously we’ve got to navigate it together as a country, but also as a business.” Minerals Council of Australia, which counts BHP as a key member, denounced the looming spectre of copper tariffs. “These measures disrupt global trade, undermine investment confidence, and increase costs for consumers including in the United States,” chief executive Tania Constable said. “While Australia’s direct copper exports to the United States are limited, trade restrictions imposed on other key trading partners have the potential of disrupting global supply chains, increasing costs, and creating uncertainty for Australian exporters.”

BHP’s top WA exec Tim Day says miner so far unscathed by copper tariffs, cedes ‘the uncertainty is difficult’

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