Although BHP mines and processes many metals including aluminium, copper, nickel, titanium and also owns diamond mines, the main recent focus for investors has been BHP's Olympic Dam uranium operations and specifically with regard to the potential of Uranium exports to China.

Australia and China have recently ratified an agreement, paving the way for Australia to export uranium to China. The timing and amount of uranium to exported will be a matter for commercial negotiation, however it is clear that China intends to step up the construction of nuclear power plants to meet its already considerable and fast-growing energy needs.

Uranium exports are very carefully controlled due to the possibility of rogue nations carrying out enrichment for weaponry purposes, and these controls on their own already create artificially high pricing for uranium. Demand from China, which is likely to be very significant and of the order of several billions of dollars, should elevate uranium prices further.

The only issue is how the actual Chinese investment in Australian uranium plays out  BHP stands to benefit both from exports and also from elevated Uranium prices, but there is also the possibility of Chinese wholly-owned Uranium facilities in Australia which might mean that the benefit to BHP may not be as significant.

Either way, BHP is likely to be a great long-term investment. The earth's mineral resources are finite. The question mark for many investors may simply be one of environmental ethics. The Graham Investor will remain interested in BHP, however, because of the international aspect.