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PrintMr Andrew Mackenzie boss of BHP Billiton believes gas will one day overtake iron ore as the mining giant's biggest earner. But for now the world's biggest mining company is concentrating on expanding its potash portfolio in Canada to cash in on the world's need for food.
While China's demand for steel has made West Australian iron ore the biggest contributor to BHP, Mr Mackenzie sees a point in the future when gas will make up a larger part of the business.
He said that "Yeah, of course I can see a point. It depends on China, it depends on the choices that the world makes in terms of energy, it depends on the competitiveness of Australian gas versus gas elsewhere."
The AGM was peppered with questions about how the company which is focused on its four pillars of iron ore, petroleum, copper and coal is positioning itself for a future affected by climate change and reduced carbon emissions.
Mr Mackenzie said that "We have to think quite quickly about how we adapt our portfolio in light of many of the issues that were raised at this AGM. But there was flexibility in the portfolio to adapt quickly.”
BHP makes most of its money from its iron ore, petroleum and copper divisions. Iron ore delivered revenues of more than AUD 20 billion in 2012 to 2013 compared to AUD 13 billion from the petroleum and potash division. It comes as global oil and gas companies look to capitalise on an expected lift in gas demand from China and Japan.
BHP and joint venture partner ExxonMobil recently received federal environmental approval to build the world's largest floating liquefied natural gas operation in the remote Scarborough gas field 220 kilometers offshore in north Western Australia.
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