News Wrap

IN THIS morning’s News Wrap: BHP chairman says 'unusual' oil exposure to stay; Rio Tinto driverless trains complete first port to pit haul; and Freeport is said poised to sign Grasberg accord in Indonesia.

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BHP chairman says 'unusual' oil exposure to stay

BHP chairman Ken MacKenzie has vowed that investors will soon be treated to a "sizeable amount" of shareholder returns, and says BHP must continue to justify its "unusual" exposure to conventional oil assets, according to the Australian Financial Review. 

Speaking at an Australian Shareholders Association event on Wednesday evening, MacKenzie conceded it was "a bit unusual" for a mining company to also own oil assets in Australia, the US and Mexico.

With BHP close to selling its unconventional oil and gas assets in US shale, some shareholders like Elliott Management have pondered whether the time might be right for BHP to divest or demerge its entire petroleum division.