Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 2-Calm, considered Henry to steer BHP through choppy times

Published 14/11/2019, 06:30 pm
UPDATE 2-Calm, considered Henry to steer BHP through choppy times
BHP
-
BHPB
-
HG
-

(Updates to advise media subscribers pictures are available with this story)

MELBOURNE, Nov 14 (Reuters) - Calm and considered, incoming BHP Group Ltd BHP.AX BHPB.L chief executive Mike Henry is seen as a safe pair of hands to steer the world's largest mining company through what he says are uncertain times.

A Canadian with 30 years experience in mining, including 16 at BHP and the past three at the helm of BHP's Australian business, Henry was named on Thursday as the sucessor to Andrew MacKenzie.

While less well known to the investment community than some of BHP's other senior executives, Henry, 53, has a reputation as a thoughtful, ethical, diligent leader, more a safe pair of hands than an aggressive company builder.

"He's smart and dedicated and will apply himself with great diligence to the role. Mike leads by example," said a former colleague who worked with Henry for several years.

"He's a really straight up and down guy. He doesn't play games and for a guy in that position, he has his ego totally in check," said the source, who asked not to be named.

As head of BHP's Australian operations, Henry has been responsible for the global miner's vast iron ore, coal, copper and nickel assets in the country, leading nearly 40,000 people.

"He seems like a pretty good appointment. Obviously he has a number of years of experience within BHP running a very large part of the organisation from a profitability point of view.. So the level of experience is definitely there," said Ausbil Chief Investment Officer Paul Xiradis.

BHP highlighted Henry's role in developing a BHP-wide operating system that has delivered big cost savings, as well championing diversity - doubling the number of female employees and boosting indigenous employment.

At a news conference on Thursday, Henry stressed the importance of safety, a key issue for BHP after it took a reputational hit from a Brazilian dam collapse in 2015, and said he would look to unlock more value from the company's assets.

"We do live in an uncertain world," he said.

"That's why...(we) need to be driving performance within the core business because that discipline, that performance will be what will allow us to navigate an uncertain world in the right way that will continue to grow value."

Henry, who has experience in Europe, North America and Asia and lives with his wife in Melbourne, will still need to win over some Australian fund managers, who would have preferred an outside appointment.

Some investors also cited a less than smooth performance of BHP's Australian operations after a runaway iron ore train last year had to be forcibly derailed, and underpeformance at the Olympic Dam copper mine in South Australia.

For Henry, who will take over on Jan. 1, 2020, it's "day -45"

"I need to get my feet under the desk, I want to spend time out engaging with our global operations, hearing from our people."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.