[Ferro-Alloys.com] The 2019 Brand Finance Mining, Iron & Steel 25 report has once again named BHP as the world’s most valuable mining brand with a value of $6bn and an AA strength rating.

 

Until relatively recently, it is fair to say that mining companies paid little more than cursory attention to their brand and reputation. Maximising ore volumes, creating value for shareholders and nurturing the bottom line, these were business imperatives. How they were perceived by wider society, less so.

 

“The mining sector is a traditional sector where brands have an entrenched and conventional view about how they should operate,” says Richard Haigh, head of mining practice at consultancy Brand Finance. “In the past this has meant that mining brands have largely ignored brand and reputation.”

 

In today’s technology-driven, hyper-connected world, however, brand valuation and brand-related financial analysis in mining is becoming increasingly important for regulatory and strategic reasons.

 

“As with many other traditional sectors, the mining industry is having to embrace the global shifts that are taking place, notably the rise of technology, environmental issues and new entrants in the market,” says Haigh. “In order to combat these shifts, and to ensure brands stay ahead of their competitors, companies within the resources sector are embracing global branding matters.”

 

Think big: BHP top mining brand ranking for second consecutive year

 

One of the Oxford English Dictionary definitions of a brand is “a particular identity or image regarded as an asset”. For BHP, maximising this ‘asset’ meant launching the ‘Think Big’ rebranding campaign in May 2017, in order to demonstrate the company’s role in Australia’s economy and community, and engage more successfully with other key stakeholders, beyond customers, to improve brand value.

 

It has been a resounding success. The Anglo-Australian multinational has just topped the Brand Finance Mining, Iron & Steel 25 report for the second consecutive year. The report calculates overall brand value – the net economic benefit that a licensor would achieve by licensing the brand in the open market – and also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity and business performance.

 

BHP, formerly BHP Billiton, remains the standout brand in the 2019 ranking. Growing 17% to a value of $6bn and maintaining its AA brand strength rating, the company held its position as the world’s most valuable and strongest mining brand, as well as Australasia’s most valuable B2B brand.

 

“BHP has managed to cement its position as the world’s most valuable and strongest mining brand by investing significant effort in charting out a forward-looking brand vision based around growth and security, despite the risk of global financial challenges,” explains Haigh. “Its major rebranding exercise continues to derive strong results as BHP has increased its brand value 51% since 2017.

 

“BHP’s rebranding exercise came at exactly the right time for the company following a turbulent few years involving numerous scandals that tainted the brand’s reputation, including the Samarco mine disaster of 2015, allegations of tax avoidance and investments that returned poor performances.”(mining-technology)