Tag Archives: BHP

New CORE Innovation Hub opens in Newman, Western Australia

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The CORE Innovation Hub Newman has officially opened its doors at Parnawarri, in Western Australia, becoming the first business innovation centre in Newman to support the local mining equipment technology and services (METS) industry.

The specialist METS business hub, co-working and education space supports start-ups, small and medium businesses and industry working across the mining sector, according to BHP, with the new satellite hub allowing businesses to take advantage of CORE Innovation Hub’s  national mining and resources ecosystem, where they will be able to connect with potential partners, work with industry experts and expand their business network.

The Newman facility comes on top of the original CORE Innovation Hub in Perth and a second one in Adelaide. The plans for Newman were announced last year.

Newman Innovation Hub Lead, Natalie Jones, said: “This initiative is a huge investment into the future of Newman and the surrounding Pilbara region. The hub will help drive our local regional businesses forward in Newman, across the Pilbara and beyond.”

BHP is a major sponsor of this hub along with the Department of Jobs, Tourism, Science and Innovation and METS Ignited Australia.

BHP eyes South Australian copper basin consolidation with latest OZ Minerals offer

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BHP has submitted a revised non-binding indicative proposal to the Board of OZ Minerals Limited (OZL) that, subject to a successful four-week due dilligence period, could see the major miner acquire the mid-tier base metal-focused miner.

The offer to acquire 100% of OZ Minerals by way of a scheme of arrangement for a cash price of A$28.25/share ($18.9/share) is a 13% increase on the offer BHP previously put forwad and was rejected by the OZ Minerals Board. It, according to BHP, represents the best and final price the mining major is willing to offer under, in the absence of a competing proposal.

The OZ Minerals Board has confirmed to BHP that it intends to unanimously recommend the revised proposal to OZ Minerals shareholders as being in their best interests in the absence of a superior proposal, subject to the parties entering into a binding scheme implementation agreement (SIA) following completion of BHP’s confirmatory due diligence and an independent expert concluding that the revised proposal is in the best interests of OZ Minerals shareholders, it said.

The proposed transaction, valuing OZ Minerals at an enterprise value of A$9.6 billion, is expected to deliver significant value creation for both BHP and OZ Minerals shareholders, BHP says, explaining that OZ Minerals shareholders would receive an offer price significantly above trading levels and average broker price targets, prior to BHP’s initial proposal on August 5, 2022. At the same time, BHP shareholders would gain increased exposure to future-facing commodities, adding copper and nickel resources that are essential to support the global megatrends of decarbonisation and electrification.

The deal would also create a South Australian copper basin, which, according to BHP, could unlock potential operational synergies due to the proximity of OZ Minerals’ Carrapateena and Prominent Hill operations with BHP’s existing Olympic Dam asset (pictured) and Oak Dam development resource.

The West Musgrave project, meanwhile, will add a large greenfield nickel option to BHP’s Nickel West premier nickel sulphide resource position in Western Australia.

BHP has now entered into a Confidentiality and Exclusivity Deed with OZ Minerals in relation to the revised proposal. This has seen OZ Minerals grant BHP four weeks to undertake exclusive confirmatory due diligence and negotiate a binding SIA reflecting the key terms of the revised proposal. The four-week period is expected to commence on or around November 21, 2022.

BHP CEO, Mike Henry, said: “BHP’s proposal represents a highly compelling offer for OZ Minerals shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

“The combination of BHP and OZ Minerals’ assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.”

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “BHP’s revised proposal is a clear reflection of OZ Minerals’ unique set of highly strategic, quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel
assets in strong demand due to global electrification. We look forward to working with BHP in a collaborative way to progress the revised proposal in the best interests of OZ Minerals’ and its stakeholders.”

BHP partners with Curtin Uni and Greening Australia to capture dust at Port Hedland

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BHP has partnered with Curtin University and Greening Australia to trial vegetation barriers to capture dust and improve air quality in the West End of Port Hedland as part of the BHP Pilbara Air Quality Program.

Phase one, which involved around 80,000 seedlings planted, was recently completed with an additional 80,000 seedlings scheduled for phase two, which will begin in a few months.

Over the years as the plants grow and develop, they will create a dust barrier between the operations of BHP’s business and the community.

We’ve partnered with Indigenous owned and operated nursery, IBN Services, in Port Hedland to provide the specifically selected plants for the project.

“This is an important contract for our business,” Evelyn Kroczek, Manager IBN Services said. “We’re very involved with the land and the country and we want to help look after it.”

In addition, Indigenous-owned landscaping company, Yurra, has been contracted to manage ground works. Justin Bryne, Manager Yurra, said: “We’ve worked with Greening Australia to formulate the design and look at the plant mixes and what we think will grow well. We’re also providing the local supervision as well as the project management.”

If these trials prove successful, vegetation barriers could be strategically used across the West End and adjacent to BHP’s other operations to capture dust from industry and natural sources and help improve overall air quality, the company said.

Rio Tinto, BHP, Fortescue devise pilot program to tackle sexual harassment, bullying and racism

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Rio Tinto, BHP and Fortescue are launching a pilot program aimed at helping to eliminate disrespectful behaviour in the resources industry including sexual harassment, bullying and racism.

The launch comes after the three companies formed a partnership in October last year as part of their combined response to reports of unacceptable sexual harassment in the mining industry.

The three companies have worked together with leading experts to design and develop the industry-first program aimed at educating new entrants to the sector, they said.

The evidence-based program will educate participants about the impact of sexual harassment, bullying and racism, including how to recognise and report these behaviours.

The Building Safe and Respectful Workplaces pilot program project, managed by the Australian Minerals and Energy Skills Alliance (AUSMESA), will be delivered on November 15 and 16 by experienced facilitators from Griffith University. The pilot program will be completed by 30 volunteers who are currently undertaking apprenticeships or traineeships with the three companies.

The results of the pilot will be fully evaluated and feedback from the participants will be used to finalise the learning program.

It is intended the program will be delivered from early in 2023 with a particular focus on new entrants to the mining industry.

As part of an ongoing commitment to educate about respectful behaviour, the companies will engage across industry and education providers on how to broaden the reach of the program.

It is anticipated the training course will be made available to other industries in the future through a range of education pathways.

Rio Tinto Iron Ore Chief Executive, Simon Trott, said: “The launch of this pilot is a key milestone in our broader commitment to create a workplace culture that is safe, respectful and inclusive. Building awareness through education on how we can create safer work environments through the prevention and elimination of sexual harassment, bullying and racism is vital to ensuring those joining our industry feel safe.

“We’re proud to be collaborating with experts in this field, in partnership with industry leaders, and we look forward to the findings from the pilot and the opportunity to share with broader industry for the benefit of all Australians.”

BHP WA Iron Ore Asset President, Brandon Craig, said: “Programs such as this help educate the next generation of workers to ensure our workplaces are safe, respectful and inclusive. While we know there is more to do, this pilot is part of our redoubled efforts to eliminate sexual harassment, and is in addition to a range of other measures including improved security at accommodation villages, additional public disclosures, specialised resources and company-wide training.

“We’re proud to be working with leading industry partners to deliver this important program as we work together to eliminate disrespectful behaviours from our industry.”

Fortescue Chief Operating Officer Iron Ore, Dino Otranto, said: “At Fortescue, safety is our first priority and we have zero tolerance for inappropriate behaviour. We remain firmly committed to ensuring that Fortescue has safe and inclusive workplaces, and that the mining industry as a whole is a safe and welcoming place for everyone who works within it.

“We’re pleased to be working with our industry peers towards the common goal of ensuring that sexual harassment, bullying and other inappropriate behaviours do not occur in the mining industry.”

Monadelphous banks work with Fortescue Metals and BHP

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Monadelphous has secured new contracts and contract extensions in the resources and energy sectors totalling approximately A$150 million ($96 million), including work with Fortescue Metals Group and BHP.

The company has been engaged to provide construction services at the Iron Bridge Magnetite Project, an unincorporated joint venture between Fortescue subsidiary FMG Iron Bridge and Formosa Steel IB, in the Pilbara of Western Australia. The work, which includes the provision of structural, mechanical and electrical and instrumentation services at the wet process plant, is expected to be completed by the end of 2022.

Monadelphous has also secured the following work with BHP:

  • A contract for the remediation of balance machines at the Finucane Island and Nelson Point ports in Port Hedland in Western Australia, with work expected to be completed by mid-2024;
  • A 12-month extension to its existing contract to provide general maintenance and shutdown services at BHP’s Western Australian iron ore operations;
  • A 12-month extension to its existing maintenance, shutdown and project services contract across BHP’s Nickel West operations in Western Australia; and
  • A two-year contract to provide construction services under the Olympic Dam Construction Panel Framework Agreement at Olympic Dam in South Australia.

Thiess to continue providing mining solutions to BMA’s Caval Ridge mine

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Thiess says its mining services contract with BHP Mitsubishi Alliance (BMA) for the Caval Ridge operations in Queensland, Australia, has been extended for potentially another five years.

The contract, which starts on December 1, 2022, for a potential term of up to five years, has revenue to Thiess valued up to A$600 million ($389 million), it said.

Under this contract, Thiess will continue to provide mining services at the Caval Ridge mine, operating and maintaining mining equipment to move overburden to support BMA’s production requirements.

Thiess Executive Chair and CEO, Michael Wright, said: “Thiess has been providing mining solutions to BMA at Caval Ridge since December 2017. Importantly, our team continues to have a clear commitment and focus on fostering diversity and respectful workplaces, with almost 30% of the workforce being female and 10% being Indigenous.

“We continue to seek opportunities to bring under-represented groups into the mining industry, and delivering sustainable mining solutions for our clients and stakeholders.”

Thiess Executive General Manager Australia East, Cluny Randell, said: “We’re very proud to build on our safe and strong performance at Caval Ridge, and extend our deep working relationship with BMA. We will continue to drive long-term economic value by creating local jobs and regional supply opportunities, and supporting the communities where we operate.”

Caval Ridge is one of nine metallurgical coal mines in Queensland’s Bowen Basin. It is a part of BMA, the 50:50 joint venture between BHP and Mitsubishi Development.

BHP partners with Neoen on Olympic Dam renewable power pact

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BHP says it has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from its 2026 financial year.

The agreement, which is based on current forecast demand, will allow Olympic Dam to record a net zero emission position for the contracted volume of supply, according to BHP.

The PPA is expected to supply 70 MW of electricity to Olympic Dam and will support Neoen to construct the 203 MW Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained, BHP said. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid.

In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia, to support the PPA, which will also assist in improving the stability of the South Australian electricity grid.

Goyder South Stage 1, consisting of Goyder South 1a and 1b, is the first stage of Neoen’s flagship project known as Goyder Renewables Zone – a hybrid wind, solar and storage project located in mid-north South Australia. Goyder South has development approval for a total of 1,200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity – making it South Australia’s largest renewable project.

BHP Olympic Dam Asset President, Jennifer Purdie, said: “The world needs South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP is focused on producing that copper more sustainably.”

“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid.”

This latest agreement follows commitments BHP has made in recent years, which have seen renewable electricity contribute to powering BHP facilities in Western Australia, South Australia, Queensland and Chile.

This PPA continues the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2 from its operated assets) by at least 30% from adjusted 2020 financial year levels by its 2030 financial year.

BHP’s Chief Commercial Officer, Vandita Pant, said: “BHP is consciously working towards our target of at least a 30% reduction in our operational emissions by FY2030. Renewable energy partnerships, such as this agreement with Neoen, are important steps towards that outcome, and our longer-term 2050 net zero goal.”

Louis de Sambucy, Neoen Australia’s Managing Director, said: “We are delighted to provide BHP with this highly innovative solution. We are convinced that our ability to combine our assets and our energy management capabilities to create bespoke commercial offers will be a key element of success for our future developments.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, added: “We thank BHP for their vote of confidence. Thanks to its storage assets and deep expertise, Neoen is now able to offer 24/7 energy to its customers. This first baseload PPA is a significant step forward for Neoen and will serve as a template for future contracts, opening up new market opportunities in Australia and in the rest of the world.”

Neoen, BHP says, is one of the world’s leading independent producers of exclusively renewable energy, having close to 5.6 GW of solar, wind and storage capacity in operation or under construction across numerous countries.

BHP pursuing ‘radical transparency and systematic collaboration’ policy, Agar says

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James Agar, BHP’s Group Procurement Officer, has called for systematic collaboration and radical transparency within the mining sector when he addressed the main session at the International Mining and Resources Conference (IMARC), in Australia, this morning.

Agar said the industry needs to reflect on the experience of COVID-19 and use it to strengthen the industry’s resilience from supply chain constraints.

“As a result of COVID, global demand vanished almost overnight,” he said. “What we learnt is that we can’t do it alone, we need to work collaborative and we need to be more transparent with our partners.”

Despite coming out the other side after the worst of COVID lockdowns, the global economic outlook has not improved, Agar mentioned.

“Labour markets are tight globally, with no sign of easing soon,” he said. “The energy crisis in Europe is profound and will continue to drive volatility in energy markets.”

As a result, BHP is pursuing a policy of “radical transparency and systematic collaboration” to ease pressures facing Australia’s largest miner.

Agar explained that this means building relationships with all stakeholders that support BHP’s operations, no matter the size of the partner.

“At BHP, we know we haven’t always been perfect in this regard,” he said.

International Mining is a media sponsor of IMARC, which runs from November 2-4 in Sydney, Australia

Rio Tinto and BHP team up to tackle tailings dewatering

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BHP and Rio Tinto have formed a partnership agreement to accelerate the development of technology that, they say, could significantly increase water recovery from mine tailings, and, in turn, reduce potential safety risks and environmental footprints associated with tailings storage facilities.

The first project will involve testing the application of an innovative large-volume filter unit at a BHP copper mine in Chile, which would remove up to 80% of the water in the tailings stream before it is deposited in a storage facility.

Rio Tinto will bring its experience from implementing smaller-scale tailings filters for bauxite residues at alumina refineries since 2005. Both organisations will work in collaboration with leading technology and equipment providers, technical experts, research groups and the academic sector, they say.

Manufacture of the filter unit is already underway. The pilot construction is due to begin in early 2023 and operations are scheduled to commence in early 2024. The pilot will test the potential of a large-scale tailings filter unit for scalability and cost-effectiveness across global mining operations.

Removing more water from tailings would reduce potential risks associated with moisture in storage facilities, reduce the footprint required by such facilities and create opportunities to productively re-use tailings, for example, as raw material for glass, construction or agriculture industries, the companies say.

The additional water recovered from tailings by filtration could be re-used in processing facilities, reducing overall water consumption.

BHP Chief Technical Officer, Laura Tyler, said: “The world will need more critical minerals in the decades to come to support economic development and decarbonisation pathways. It is important that we keep working together across the global mining sector to raise standards and make sure our operations are as safe and sustainable as they can be. Responsible management of tailings and improved water use is a big part of that.”

Rio Tinto Chief Technical Officer, Mark Davies, said: “It is in everyone’s interest that we, as an industry, find safer and more sustainable ways to manage tailings. As two of the leading companies in the sector, we want to bring our combined knowledge and expertise to address this challenge.”

Tailings usually takes the form of a liquid slurry made of fine metal or mineral particles and water – created when mined ore is crushed and finely ground in a milling process to enable the metals and minerals of interest to be extracted.

BHP collaborates with CIMIC’s UGL and QRRS on ‘flat pack’ rail cars for the Pilbara

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An industry-first initiative to construct 140 ‘flat pack’ iron ore cars over the next four years in Perth, Western Australia, will develop capability and boost the state’s manufacturing sector, through a collaboration between BHP, UGL, QRRS and supported by the State Government, BHP says.

In an initial trial, BHP has shipped ore car components from QRRS’s factory in China to UGL’s Bassendean facility as ‘flat packs’, where the UGL team has assembled, welded and commissioned the cars before delivering them to BHP’s Pilbara operations.

For over a decade, iron ore cars have traditionally been built offshore. On average, BHP orders several hundred each year.

To date, five iron ore cars have been completed and delivered to the Pilbara. A further 15 are due to be built and delivered by February 2023. At least 12 UGL jobs have been sustained through the project, according to BHP.

Following the trial’s early success, BHP has committed to constructing an additional 120 cars over the next four years in Western Australia.

BHP says it is continuing to build local content through manufacturing and maintenance opportunities to ensure the local ore car supply chain is sustainable and competitive.

BHP’s Asset President WA Iron Ore, Brandon Craig, said: “BHP makes a significant contribution to the WA economy, and we want to keep building and strengthening that contribution through more local manufacturing.

“We are taking the first important step by working together with the expert teams at UGL and QRRS to build ore cars right here in WA.

“Through this investment, we will support the WA manufacturing sector to strengthen its capability and create new opportunities for business growth and local employment.

“This is a terrific initiative that we’ve been able to develop with our partners and the West Australian Government, and we thank them for their support.”

Premier of Western Australia, Mark McGowan MLA, said: “This project is a testament to the work of our Iron Ore Railcar Wagons Manufacturing and Maintenance Action Group, which is committed to boosting local manufacturing and securing local jobs.”

Doug Moss, UGL Managing Director, said: “We are proud to be the only Australian manufacturer of freight locomotives and we’re pleased to extend this capability through the re-introduction of rail ore car assembly into Australia, and particularly in Western Australia.

“We look forward to continuing this program with BHP and creating a strong and sustainable ore car assembly capability in the state.”

UGL is CIMIC Group’s specialist end-to-end engineering and services provider.

Zhang Quanyong, QRRS Managing Director, said: “As a long-term supplier of BHP, QRRS will continue to support all projects that BHP is involved in. We are pleased to take this partnership further and supply more good products and service to BHP.”