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South32 has emerged as a leading bidder for BHP Group's West Musgrave copper nickel project, a key asset in BHP's nickel portfolio. The potential sale is part of ASX:BHP's broader effort to sell non core assets and reshape its portfolio. Rival interest appears to have eased, with Sandfire Resources reportedly stepping back from the process.

ASX:BHP enters this phase of portfolio reshaping with its shares at A$49.19 and a 29.5% return over the past year, 32.0% over three years and 74.9% over five years. The West Musgrave project carries significant capital requirements and rehabilitation liabilities, so any transaction will matter for how BHP allocates capital across its core operations.

For investors, the progress of talks with South32 will be worth tracking, as it could influence BHP's exposure to battery related metals relative to iron ore and other commodities. The outcome may also have implications for how major ASX listed miners position around copper and nickel assets in the years ahead.

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2 things going right for BHP Group that this headline doesn't cover.

Quick Assessment

⚖️ Price vs Analyst Target: At A$49.19, BHP trades about 6% below the A$52.22 analyst price target, which sits within the expected range. ❌ Simply Wall St Valuation: Shares are described as trading about 27% above estimated fair value, so the valuation screen currently looks stretched. ❌ Recent Momentum: The 30 day return of roughly 3.8% decline shows the share price has recently been under some pressure.

There is only one way to know the right time to buy, sell or hold BHP Group. Head to Simply Wall St's company report for the latest analysis of BHP Group's Fair Value.

Key Considerations

📊 The potential sale of West Musgrave would shift BHP's exposure away from this capital intensive copper nickel project and may change its mix of battery related metals. 📊 Watch how any sale price compares with the A$49.19 share price, the A$52.22 analyst target and BHP's 17.2x P/E versus the 15.2x industry average. ⚠️ The identified risk around an unstable dividend track record is worth keeping in mind if West Musgrave proceeds affect cash flows or future capital returns.

Dig Deeper

For the full picture including more risks and rewards, check out the complete BHP Group analysis. Alternatively, you can visit the community page for BHP Group to see how other investors believe this latest news will impact the company's narrative.

Story Continues

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BHP.AX.

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