With returns on its Broken Hill mining operations diminishing in the early part of the twentieth century, BHP decided to diversify. With the iron ore-rich Middle-back Ranges nearby diversifying into the steel business seemed an obvious move for the company. BHP's general manager of the day Guillaume Delprat visited the US and Europe in 1911 to investigate the feasibility of such a move. Further investigation into the merit of the proposal came up trumps when a report prepared by an eminent consultant David Baker found there was tremendous scope for such a move. The ace in the hole was the size and scope of ore reserves in the Middleback Ranges.
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