But they are now questioning the procedure

Square Jaw, short hair, high forehead and clear look, Marius Kloppers resembles Russian spies of the James Bond films. The same angelic air and small measured voice that hide a determination. The CEO of BHP Billiton is a killer. But he prefers the Chequebook to the Kalashnikov. His Kingdom is that of large mines such as the city of Paris to activate monsters wheeled high and six-storey buildings. The Escondida mine, to the Chile, which provides its only 10 of all copper of the planet, or to Olympic Dam, in Australia, which contains in a single site of money, gold, copper and uranium. A world where one invests $ 10 billion each year to open new mines or buy to others.

Since Billiton, British company mines in South Africa, has joined its fate to the Australian BHP, in 2001, all became the largest mining group in the world, active both in metals such as copper that in iron, oil, aluminium, or diamond. Marius Kloppers is therefore the darling of analysts, who applaud a company displays a turnover of $ 50 billion, which is able to reach an operating margin of almost 40 and its entry into the closed club of the ten largest world stock market capitalization.

But now that the machine seems to be halted. Despite his chequebook and his charming smile, Marius has tripped, and three times. In 2008, it seemed to his dream by marrying with her neighbor and competitor, the Anglo-Australian Rio Tinto. He launched a hostile takeover bid of $ 68 billion on the world champion of copper and iron ore. The determination. A little more than a year later, BHP provides cover for Rio Tinto to unite their assets in the greater West Australian iron ore in a joint venture. An operation estimated at the astronomical sum of 116 billion. This time, these are the European and Chinese regulatory authorities up to the niche. New surrender. Finally, last summer, the Group turned to a new trade, potash, needed to produce fertilizers. He launched an offer to purchase nearly $ 40 billion on a company publicly traded Canadian Potash Corp., world number one of the specialty. The Canadian Government said no.

Also, when Marius Kloppers applied last week to its shareholders in Perth, in the West of the Australia, for the annual general meeting, it was preceded since the eve of a new reputation as a "triple looser. As these three failed operations still cost nearly $ 1 billion in fees of bankers and lawyers. Course, shareholders were given to the promise of a new share buyback, as another of make them money. But they are now questioning the procedure. Should we change driver and strategy "Pas question, said Jacques Nasser, President of BHP Billiton". We will continue to grow for the acquisition of the best assets of the world. It is our obligation.

Yet, it won't be easy. Because these beautiful cases were all overturned for the same reason: customers do not want. Craft highly cyclical and capital-intensive, the minor is concentrated more rapidly than its countless customers. There are a handful of major suppliers of copper for millions of users around the world. In the ore of iron, BHP Billiton, Rio Tinto and Brazilian Vale monopolize more three-quarters of maritime trade, about half the consumption (the rest is produced locally). Their power on the price is therefore very powerful. BHP Billiton was married to Rio Tinto, they would have controlled the majority of the Chinese imports of iron ore. We understand the emotion of Beijing.

A little appreciated lobbying

Major steelmakers customers on the other hand little appreciated the intense lobbying by Marius Kloppers to finish with the opacity of the rates of iron ore. So far, the bulk of sales was through contracts long-term negotiated annually between metallurgists and miners on the basis of international comparison. This gives visibility to the steel industry, as if the "spot" course, set on the day the day is lower, they can buy this little regulated market. The tenacious South African managed to impose closest quarterly market prices "spot." His dream is obviously that the prices are, as in the case of copper, traded on a transparent and volatile futures market. The spectre of Steelworkers. So that now, any movement of the giant is seen as an attempt to strengthen his power over the fixing of prices.

In the case of potash, the Canadian Government has blocked the operation for similar reasons. Through a joint company, the country master the selling price and the production of potash. What to keep small producers. Farmers have also expressed their concern at the arrival of a giant in a world already very occurred - the Canada, the Russia and the Belarus have the bulk of trade in potash. In short, States don't want of the BHP Billiton ogre.

This does not preclude Marius Kloppers stay right in his boots. "Our strategy is to invest in large sites, to lower production costs and long service life, which must be diverse, as well by subject first by country and by market", said before its shareholders. It is the strategy succeeded so well in the group. For a minor to this size, it is essential to not depend on a cycle, such as copper, which courses can be divided by three in one year. Therefore, it must be present also in less cyclical areas, such as fertilizer or oil, or with different clients. It is this diversity of assets which enabled BHP Billiton through the economic crisis as a flower. If one-third of its profits derived from the iron, a quarter has oil and another quarter of base metals (copper, zinc).

How to go further If some investors still evoke the hypothesis of a return to Rio Tinto, many are betting on a building in the oil and gas. In this area, it is a challenger and does not fear to any client. And there is something urgent, because if iron is gold today with China, the end of its programme of investment in infrastructure could turn it into a lead and plummeting revenues from the large miners. Marius Kloppers has therefore not finished to shake the Earth.

Find Philippe Escande blog on blogs.lesechos.fr/escandeblogs.lesechos.fr/escande