12 Mar BHP ranked world’s most valuable mining brand
BHP has retained its title as the world’s most valuable mining brand, with a value of US$5.8 billion, according to the latest Mining, Iron & Steel report by business valuation consultancy Brand Finance.
The Australian major topped the brand value rankings, which reflect the net economic benefit the brand’s owner would achieve by licensing the brand in the open market, despite recording a 3% drop in brand value following a turbulent 2019.
BHP was involved in a $5 billion lawsuit following the Samarco dam disaster in Brazil in 2015 which killed 19 people, and the firm’s coal output fell 13% in late 2019 due to the Australian bushfire crisis.
Brand Finance also referred to BHP’s exposure to fluctuating global trade and softening demand in the Chinese market. “The future of BHP looks bright, however, as iron prices – the brand’s main commodity and source of income – are expected to remain high throughout 2020.”
Mining companies are already bracing themselves for a difficult year because of the global pandemic coronavirus. Brand Finance director Savio D’Souza said he expects the coronavirus crisis to affect three key areas in the industry: operations, supply chain, and global demand.