Australia’s BHP retains title as world’s most valuable Mining, Metals & Minerals brand valued at US$7.4 billion
BHP (brand value up 48% to US$7.4 billion) remains the world’s most valuable Mining, Metals & Minerals brand, according to a new report from the world’s leading brand valuation consultancy, Brand Finance. The ‘big Australian’ is benefiting from a combination of surging commodity prices around the world and the opening of the new South Flank mine in Western Australia. Together with the adjacent pre-existing mines, it will form the largest operating iron ore hub in the world, producing approximately as much iron ore as South Africa, Canada and the United States combined.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The Mining, Metals & Minerals industry’s top 50 most valuable and strongest brands in the world are included in the annual Brand Finance Mining, Metals & Minerals 50 ranking.
Mining is one of the few sectors that has prospered during the COVID-19 pandemic; the sector is in the best financial and operational health it has seen for some time. The sector’s core objective of extraction remains as important as ever, however other factors are becoming increasingly important such as ESG. Addressing ESG has the potential to give brands a credible path to build long term brand strength and business value.
Savio D’Souza, Valuation Director at Brand Finance
Rio Tinto is world’s strongest mining brand with AA+ rating
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
Rio Tinto (brand value up 10% to US$3.3 billion) has become the world’s strongest brand in the Mining, Metals & Minerals ranking with a Brand Strength Index (BSI) score of 78.3 out of 100 and a corresponding brand rating of AA+. While Rio Tinto is an Australian brand, its primary business is focused on selling ore to China, and has recently appointed former Canadian ambassador to China, Dominic Barton as Chairman of the Rio Tinto board. This represents an understanding by the business that the brand’s reputation amongst Chinese decision-makers is incredibly important to the business and is reflected in the high brand strength that Rio Tinto has achieved amongst broader geo-political instability between China and Australia.
Posco jumps three positions to become 3rd most valuable mining brand
Posco (brand value up 53% to US$4.5 billion) is one of this year’s big winnings in the mining rankings, jumping three positions, from 6th to 3rd as it grew its brand value significantly faster than most competitors. The South Korean miner’s brand value growth was driven by a combination of effective recovery from COVID-19, and its leadership in the construction of a new lithium facility projected to benefit from increased demand for EV’s globally.
Research amongst informed public indicates an increase in Posco’s reputation this year. As a result, it’s brand strength index increased by 14 points from 59.0 to 73.0, the biggest gain in the industry, and improving its ranking from 19th to 10th strongest brand and earning a brand rating upgrade from A to AA.
Gerdau is up 82% to be fastest growing mining brand in the world, just ahead of Teck (up 72%) and Ma'aden (up 69%)
Gerdau (brand value up 82% to US$534 million) is the fastest growing brand in these rankings. While the higher commodity prices have been a major driver of this brand value increase, it coincides with Gerdau’s long-term vision to diversify it’s business portfolio with products and services to its core steel business.
Teck (brand value up 72% to US$751 million) is the second fastest growing mining brand this year. Teck is rebalancing its portfolio of high-quality assets to low-carbon metals and is positioning itself to be leader in ESG and operational excellence. This positioning is reflected in its sector leading ESG ratings and having the highest reputation amongst Canadian mining companies in Brand Finance’s annual informed public research.
Ma'aden (brand value up 69% to US$503 million) is the 3rd fastest growing mining brand in the world. As Saudi Arabia’s national mining champion, Ma’aden is the most valuable mining brand in the Middle East, driven by a record year in 2021 which saw their sales increase 44% year on year, consolidating their position as the most valuable mining & metals brand in both Saudi Arabia and the wider MENA region. It has a very reputation in its home country and is on the path to build Familiarity and Reputation in key international markets as it implements its ambitious growth strategy. The company is the third pillar of Saudi industry, alongside oil and petrochemicals, and its growth has seen it named among the top 20 largest global mining companies by market capitalization.