Brandon Craig will become the chief executive of BHP on July 1, replacing Mike Henry, who will step down after six and a half years in the role.
Mr Craig is currently BHP's president for the Americas, leading its growth strategy in future-facing commodities across Canada, the US and South America.
He previously led BHP's Western Australian iron ore business, with BHP crediting him on Wednesday with improving operational performance and increasing its lead as the lowest-cost, highest-margin major iron ore producer in the world.
"It is an honour and a privilege to succeed Mike Henry as CEO of BHP," said Mr Craig, who has been with BHP since 1999.
"I look forward to continuing to take this great company forward."
Mr Craig will receive a base salary of $US1.9 million ($2.7 million), with the potential to make a maximum of $US12.5 million ($17 million) a year more from bonuses.
Mr Henry will continue to provide support to Mr Craig through November 30.
He said it had been a privilege to serve as CEO of BHP and to have worked with so many talented people.
Under Mr Henry's leadership, BHP sold off its petroleum business to Woodside Energy, unified its dual-listed structure and strengthened its copper exposure.
RBC Capital Markets analyst Kaan Peker said the appointment was a positive for the company, describing Mr Craig as a long-tenured BHP executive with deep operational experience across both iron ore and copper.
In early trading, BHP shares were up 0.4 per cent to $49.92.
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