BHP considered to spin off its Australian iron ore and coal divisions to prioritize future-facing commodities such as copper and potash, sources have revealed. This move would separate businesses that account for 60% of profits while also reducing carbon exposure, following the model established by South32 in 2015.

Discussions took place during BHP's preparations for its bid for Anglo American and during the leadership transition; however, the plan was ultimately shelved due to the reliance on cash flow from these units. A spin-off could have attracted Australian investors through franking credits while allowing the copper and potash unit to pursue potential mergers.

The strategy remains dependent on BHP's capacity to finance major projects such as Escondida and Jansen before considering a transformation.