BHP PLC is being tipped as a possible bidder for rival Glencore PLC (LSE:GLEN) after Bloomberg reported the mining giant was looking for a transformative deal.
Other possible targets mentioned included US copper giant Freeport McMoran or a big chunk of Brazilian miner Vale.
Sources close to the miner pointed out that there were serious flaws in the suggestions with Glencore having substantial coal assets at a time when BHP is divesting its fossil fuel business including coal.
Freeport and Vale meanwhile have expensive legacy issues, but the idea that BHP is looking at buying again seemed to be the message.
The news follows a solid production statement from the soon-to--be only Aussie listed miner.
That will happen next week when shareholders meet to vote on whether to unify the business under its Australian parent company.
Output rose 4% and 21% respectively in the iron ore and nickel operations in the final quarter of 2021, though copper production fell 3% due to smelter maintenance at Olympic Dam.
Production guidance for the 2022 financial year remains unchanged for iron ore, energy coal and nickel, added BHP though copper production is trending towards the low end of the guidance range, reflecting lower production guidance for Pampa Norte.
Metallurgical coal guidance has been reduced as a result of significant wet weather impacts and COVID-19 related labour constraints.
Mike Henry, chief executive, noted that inflation was a concern but said cost control remained strong across the business.
“Unit cost guidance remains intact bar a change to metallurgical coal which is a function of the lowering of production guidance as a result of significant wet weather and in anticipation of Omicron headwinds in the early part of the second half of the financial year.”