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The latest data from Brand Finance, the leading brand valuation consultancy, reveals that the overall brand value in the mining industry has increased. BHP Group has overtaken Glencore to become the most valuable Mining, Metals & Minerals brand. Furthermore, Chinese mining brands, led by Jiangxi Copper, dominate the rankings, demonstrating the resilience of China’s mining industry. Finally, in response to the global energy transition trend, sustainable development in mining is increasingly crucial.
The brand value of BHP Group (ASX:BHP, LSE:BHP, NYSE:BHP) has surged by 17% to $6.1 billion, surpassing Glencore’s $5.9 billion (a slight 1% decrease from the previous year) to become the new global leader in valuable mining brands. BHP Group’s rise is attributed to the growth in company revenue from commodities such as iron ore and copper, as well as the contributions from its expansion into new mines, such as Prominent Hill and Carrapateena in South Australia.
In general, the brand value of mining brands in 2023 has seen an upward trend. Among the 39 brands tracked by Brand Finance, 28 have experienced year-on-year growth rates of no less than 4%. The highest growth is seen in the brand value of Alcoa (NYSE:AA), a U.S. aluminum producer, which has increased by 127% to $1 billion.
The report also highlights Chinese mining brands. Despite the challenging economic conditions, China’s mining industry is rapidly rising and its global influence is growing. Jiangxi Copper’s brand value has decreased by 9% year-on-year to $4.1 billion, yet it remains the most valuable mining brand in China and ranks fourth globally. Other Chinese companies newly included in the list this year include Aluminum Corporation of China (brand value of $1.4 billion) and CMOC Group (brand value of $1.3 billion).
Of the 50 most valuable mining brands globally, Chinese companies account for 11, the highest number. The United States follows closely, with three new entrants this year, bringing the total number of U.S. brands to eight.
In addition to brand value, Brand Finance has also released the Sustainability Perception Value (SPV) index for 2024. The results show that South Korean brand POSCO has the highest SPV at $513 million, followed by BHP Group at $500 million. Savio D’Souza, Brand Finance’s Valuation Director, notes that in the context of the global energy transition and ensuring the security of critical mineral supplies, the role of mining in these matters will become increasingly important.
