Mining brands forge ahead with overall uptick in brand value
More than half of the brands in this year’s ranking of the world’s most valuable mining brands witnessed a rise in brand value, according to a new report by Brand Finance, the world’s leading brand valuation consultancy. This was largely attributed to an increase in prices for raw materials such as iron ore.
Based on Brand Finance’s first-ever mining specific research this year, 28 of 39 brands from 2023’s rankings recorded an increase in brand value of at least 4%, with the largest brand value increase by US brand Alcoa reaching an impressive 127% to USD1 billion. Completing the upbeat picture, 11 entrants entered the rankings this year, consisting of mining brands from the US, China and South Korea.
BHP strikes gold, overtaking Glencore as world’s most valuable mining brand while laying claim to strongest mining brand title
BHP (brand value up 17% to USD6.1 billion) is now the world’s most valuable mining brand. The brand takes the crown from Swiss brand Glencore (brand value down 1% to USD5.9 billion), with both brands swapping places from 2023’s rankings. BHP’s performance in brand value can be attributed to factors such as improved brand strength and higher revenues from higher iron ore and copper prices, as well as contributions of new mines Prominent Hill and Carrapateena. BHP is also the world’s strongest mining brand, owed to favourable scores from respondents, particularly on perceptions of its strong leadership and commitment to sustainability and corporate social responsibility.
Chinese mining brands led by Jiangxi Copper hit pay dirt with seven new entrants to dominate rankings
Despite facing a struggling economy, Chinese mining brands stayed resilient, introducing seven new entrants to this year’s rankings including Chinalco (brand value at USD1.4 billion) and CMOC (brand value at USD1.3 billion). China is now the nation with highest number of ranked brands – totalling 11 of the 50 most valuable mining brands in the world. The US follows closely behind, with mining brands in the nation adding three new entrants to their ranks to total eight brands in the rankings this year. Jiangxi Copper leads the Chinese entrants as most valuable Chinese mining brand and world’s 4th most valuable mining brand, although its brand value dipped 9% to USD4.1 billion.
Lustre of raw metal prices sees metals mining brands shine as largest brand value performers
Higher raw metal prices, such as that for iron and aluminium, saw metals mining brands Alcoa, JSW Steel and Ternium, record the largest brand value gains among brands listed in the rankings – with US aluminium mining brand Alcoa leading the charge with a 127% increase to USD1 billion. Completing the trio of largest brand value increases, India’s JSW Steel came in second (brand value up 77% to USD1.1 billion) followed by Mexico’s Ternium (brand value up 55% to USD714 million).
Savio D’Souza, Valuation Director at Brand Finance, commented:
“Amidst the global energy transition and prioritisation to secure critical mineral supplies, the mining industry plays an increasingly important role in the shift to cleaner energy sources. Mining brands are poised for a promising future as they build resilience through their commitment to sustainability and continue to meet the changing needs of their stakeholders.”
South Korea’s Posco attains highest sustainability perceptions value of USD513 million
Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index which determines the role of sustainability in driving brand consideration across sectors. In the mining sector, sustainability is responsible for driving 8.3% of customer consideration. Brand Finance’s perceptual data also offers insight into which brands global consumers believe to be most committed to sustainability.
For individual brands, the Index displays the proportion of brand value attributable to sustainability perceptions. This Sustainability Perceptions Value (SPV) is the financial value contingent on a brand’s reputation for acting sustainably. From here, Brand Finance’s perceptual research is analysed alongside CSRHub’s environmental, social and governance (ESG) performance data to determine a brand’s ‘gap value’. This is the value at risk, or value to be gained, arising from the difference between sustainability perceptions and actual performance.
The 2024 Sustainability Perceptions Index finds that in the mining sector, South Korean brand Posco has the highest SPV of USD513 million. Posco’s perceptual and performance scores on sustainability were above the mining sector average across all ESG dimensions.