BHP, Australia’s largest miner, has revealed a $12.6 billion profit, benefiting from soaring iron ore prices and rampant Chinese demand for the core ingredient in steel.

The Big Australian also announced its intention to divest all of its thermal coal mines globally as well as some of its metallurgical coal mines in Queensland.

BHP will pay a full-year dividend of US$1.20 per share.

Chief Financial Officer Peter Beaven says plans to sell its thermal coal assets are probably better in the hands of somebody else.

“It’s tidying up a portion of our portfolio,” Mr Beaven tells Brooke Corte.

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