Tag Archives: Escondida

BHP and JX Metals partner on GHG emission reduction plan for copper supply chain

12th July 2023Base metals, Environmental, Mineral processing, Sustainable miningBHP, copper, copper concentrate, Escondida, Green Enabling Partnership, greenhouse gas emissions, JX Metals Corporation, Norsepower, Pan Pacific Copper, Rag Udd, sulphuric acid, Vandita PantDaniel Gleeson

JX Metals Corporation (JX Metals) and BHP have signed a memorandum of understanding (MoU) to pursue the development of a “Green Enabling Partnership” aimed at supporting both parties’ ambitions of reducing greenhouse gas (GHG) emissions in the copper supply chain and making the copper supply chain more sustainable.

Through the Green Enabling Partnership, JX Metals and BHP aim to support the continued development of a responsible copper supply chain through enhancing traceability and material origin verification across industry, from producers to downstream consumers such as copper product manufacturers, as well as the semiconductor, information technology and automobile industries.

In addition, the Green Enabling Partnership proposes to advocate for circular economy and GHG emissions reduction through copper concentrates and sulphuric acid supply between both parties, promote knowledge sharing in areas of estimating and reducing carbon footprint of electrolytic copper, and engaging in research and development to support improved material processing and energy efficient smelting operations.

JX Metals and BHP have a long-standing relationship dating back to 1985 with the commissioning of Escondida, BHP’s largest copper mine. This relationship has been strengthened in recent years through various collaboration opportunities – for example, BHP has supplied copper concentrates extracted from its mines in Chile to JX Metals’ smelters in Japan, and in turn, utilised sulphuric acid produced in JX Metals’ smelting processes for solvent extraction in its mines.

“JX Metals’ partnerships in the downstream copper supply chain are expanding in scope,” JX Metals Director and Deputy Chief Executive Officer, Kazuhiro Hori, said. “Our efforts to produce more sustainable copper are centered on green hybrid smelting at the Saganoseki Smelter and Refinery, and partnerships with upstream sectors are essential to reduce our Scope 3 GHG emissions reported by JX Metals in copper concentrate production and transportation. We will respond to our stakeholders’ needs by enhancing our ESG efforts in upstream sectors through this partnership with BHP, a vital responsibility for JX Metals.”

In 2022, Pan Pacific Copper (a member of JX Metal’s group), partnered with BHP and Norsepower, a global manufacturer of wind propulsion equipment for shipping, in an effort to reduce carbon emissions from the marine transportation of copper concentrates and sulphuric acid.

BHP’s Chief Commercial Officer, Vandita Pant, said: “At BHP, we pride ourselves on identifying and implementing innovative sustainability. We recognise that solutions are not developed in silos, and partnership and collaboration with our customers and partners across the value chain often bring about the best and most sustainable outcomes in pursuit of these goals. We look forward to working with JX Metals on the Green Enabling Partnership that aims to support further GHG emissions reduction in the supply chain for copper, one of the most critical minerals in the journey towards global net zero ambitions.”

President of BHP Americas, Rag Udd, said: “In a world in which the demand for copper is on the rise, improving the sustainability of producing processes is a non-negotiable. The copper of our mines produced in Chile are fundamental for decarbonising the value chain and for providing the resources the world needs to enable the energy transition. BHP has made significant progress in increasing the sustainability and ESG standards of its copper production, and we always aim to deliver high-quality and responsibly produced copper. I’m sure that this partnership will benefit our customers and will allow us to go even further in our effort to decarbonise through innovative production processes.”

Monadelphous Group secures work with BHP in Western Australia, Chile

20th December 2022Base metals, Energy minerals, Equipment maintenance, Mine operation news, Mining services, Steel and iron oreBHP, Buildtek, Chile, Escondida, Iron ore, Kathleen Valley, Liontown Resources, Lithium, Monadelphous, Western AustraliaDaniel Gleeson

Monadelphous Group has secured new contracts and contract extensions in the resources, energy and infrastructure sectors totalling approximately A$110 million ($74 million).

The company says it has been reappointed to the BHP WAIO Site Engineering Panel for a three-year period to continue providing multi-disciplinary services at BHP’s mine site and port operations in the Pilbara region of Western Australia.

Monadelphous has also been awarded a five-year contract to provide pipeline maintenance services in the Queensland coal seam gas market.

In Chile, Monadelphous’ maintenance and construction services business, Buildtek, has secured several contracts with Minera Escondida. This includes two contracts at the Escondida copper mine, majority-owned by BHP, for improvements to the water capture and drainage system and repairs associated with the oxide tank. A contract has also been secured for repairs and improvements to water storage tanks at the Puerto Coloso Filter Plant. All work is expected to be completed in 2023.

Additionally, the company has secured a contract with Liontown Resources for the supply and fabrication of structural steel and platework for the Kathleen Valley lithium project in Western Australia. The work is expected to be completed by mid-2023.

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, it is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate. First production is expected in the June quarter of 2024.

Escondida, Spence and Olympic Dam production practices recognised with Copper Mark

1st December 2021Base metals, Comminution of minerals, Environmental, Mineral processing, Mining industry recognition, Power supply for mines, Sustainable mining, Water managementAustralia, BHP, copper, Copper Mark, desalinated water, Escondida, ESG, Jennifer Purdie, Michèle Brülhart, Michiel Hovers, Olympic Dam, Rag Udd, SpenceDaniel Gleeson

BHP’s Chilean operations Escondida and Spence, and Olympic Dam in Australia, have been awarded the Copper Mark, recognising responsible production practices after an independent assurance process, the miner says.

The Copper Mark is an assurance framework specific to the copper industry, developed to ensure value chain participants demonstrate best practice in responsible production and contribute to the United Nations Sustainable Development Goals. Copper Mark is a voluntary program that independently assesses participants in 32 critical areas including environment, community, human rights and governance issues for mining, smelting and refining operations.

The Copper Mark uses the Risk Readiness Assessment (RRA) of the Responsible Minerals Initiative (RMI) and the Joint Due Diligence Standard for Copper, Lead, Nickel and Zinc, as the basis for evaluating participants’ performance.

BHP submitted Letters of Commitment for Escondida (pictured), Spence and Olympic Dam to the Copper Mark Responsible Production Framework on October 31, 2020. The Copper Mark was awarded to Olympic Dam on September 21, 2021, while Spence and Escondida were each awarded theirs on November 2, 2021.

BHP’s Group Sales and Marketing Officer, Michiel Hovers, said: “Long-term sustainability credentials are important to our customers and increasingly important to end consumers of copper products, such as buyers of electric vehicles and copper intensive consumer durables.”

BHP’s Mineral Americas President, Rag Udd, added: “Copper Mark is a step forward in developing an industry-wide approach to transparency and standards for the copper value chain and reinforces the value BHP places on responsible, sustainable production.

“Copper is a future-facing commodity and our operations have an important role to play in providing high quality and sustainable copper that is essential to the energy transition. Escondida, the largest copper producer in the world, operates 100% with desalinated water and, along with Spence, is aiming to achieve 100% renewable power by the mid-2020s.

“It is important to our customers, investors, employees, communities and governments to ascertain the ethical and sustainable production of copper along the value chain.”

BHP Olympic Dam Asset President, Jennifer Purdie, said the team was thrilled that Olympic Dam has become the first site in Australia to be awarded the Copper Mark.

“Olympic Dam is a multi-generational orebody and one of the world’s most significant deposits of copper, gold, silver and uranium,” she said. “The Copper Mark accreditation provides an industry-wide approach to transparency and sustainability in the copper value chain and provides our customers with confidence in the copper they purchase. Award of the Copper Mark will help us to keep sustainably delivering jobs, investment and economic and social value.”.

The Copper Mark’s Executive Director, Michèle Brülhart, said: “We are delighted to welcome Escondida, Spence and Olympic Dam among the recipients of the Copper Mark. We are particularly pleased to see the first Australian site to receive the Copper Mark with Olympic Dam while we continue to grow our footprint in the world’s main copper producing country, Chile. We congratulate the three sites for their achievement and their commitment to responsible production practices.”

Monadelphous Group banks engineering work with BHP, Rio and Codelco

23rd June 2021Base metals, Mine operation news, Mining services, Steel and iron oreBHP, Buildtek, Chile, Chuquicamata, Codelco, copper, El Teniente, Escondida, Fagioli, Gudai-Darri, Iron Bridge, Iron ore, Monadelphous, NMT International, Olympic Dam, Rio Tinto, Southern Australia, Western AustraliaDaniel Gleeson

Monadelphous Group Ltd has secured several new construction and maintenance contracts in the resources sector totalling around A$215 million ($163 million).

Included within this slate of new work is a contract for smelter campaign maintenance works at the BHP owned Olympic Dam copper mine in South Australia. Monadelphous said work will commence immediately and is expected to be completed in December 2021.

Monadelphous has also been awarded a two-year extension to its existing maintenance services contract at Olympic Dam. The contract scope includes civil, structural, mechanical, building maintenance and electrical services, as well as the addition of underground rail maintenance services.

In the iron ore sector in the Pilbara region of Western Australia, Monadelphous has been awarded several contracts, including several sustaining capital contracts under its panel agreements with BHP and Rio Tinto; and a contract with Rio for the provision of construction and support services associated with the Gudai-Darri iron ore project, with work expected to be completed by the end of 2021.

In Chile, the company’s maintenance and construction services business, Buildtek, has secured a number of new contracts, including a three-year contract with Codelco for the operations and maintenance of water infrastructure at the Chuquicamata underground mine in Calama. Buildtek has been providing these services on this site since 2018.

In addition, the engineering company has secured two new contracts with Codelco for maintenance activities associated with the concentrator plant at El Teniente mine in Rancagua; and a contract with BHP Minera Escondida for the construction of modularised pump stations and associated infrastructure of the Escondida copper mine in Coloso.

Finally, Monadelphous, in collaboration with global heavy lifting services company Fagioli, has secured a contract with NMT International (Australia) to deliver specialist heavy lifting and haulage services at the Iron Bridge magnetite project, a joint venture between Fortescue Metals Group subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB. The strategic collaboration with Fagioli enables Monadelphous’ specialist Heavy Lift business to increase capacity and broaden capability for the Australian resources and energy markets, it said.

BHP commits Escondida, Spence and Olympic Dam ops to reaching Copper Mark

2nd November 2020Base metals, Environmental, Mine operation news, Mining industry recognition, Mining safety, Sustainable mining, Water managementBHP, Copper Mark, Escondida, Michiel Hovers, Olympic Dam, SpenceDaniel Gleeson

BHP has issued a Letter of Commitment to the Copper Mark Responsible Production Framework that will see its Escondida and Spence operations in Chile, plus its Olympic Dam mine in Australia, fall in line with the voluntary program.

The Copper Mark is a credible assurance framework to demonstrate the copper industry’s responsible production practices and contribution to the United Nations Sustainable Development Goals, BHP said. The program is designed to hold the copper industry accountable to responsible practices in critical areas including environment, community, human rights and governance issues, according to BHP Group Sales and Marketing Officer, Michiel Hovers.

“We know that our long-term sustainability credentials are important to our customers and increasingly important to end consumers of copper products, such as buyers of electric vehicles and copper intensive consumer durables,” Hovers said. “The Copper Mark accreditation is an important step in developing an industry-wide approach to transparency and standards for the copper value chain.”

This year, the Oyu Tolgoi mine, in Mongolia, and the Kennecott operation, in the US, were both awarded the Copper Mark. Freeport McMoRan has also pledged to fall in line with the program at six of its operations.

Hovers added: “The Copper Mark is an independent and credible certification, and will further reinforce the value responsible production of the copper products that we sell to our customers.”

BHP has set targets to reduce its emissions by 30% by 2030, along with a goal of net zero emissions by 2050, Hovers said. In Chile, at Escondida, the company is also aiming to operate using 100% renewable power and 100% desalinated water.

“We know that copper is essential to the energy transition, but equally important to our customers, our investors, our employees, our communities, and our stakeholders across the copper value chain is ethical and sustainable production of copper – where production is in line with the UN’s sustainable development goals,” Hovers said.

BHP’s operated copper assets involved in this transition – Escondida, Spence and Olympic Dam – represented 1.5 Mt of copper production in the miner’s 2020 financial year.

BHP weighs trolley assist and IPCC as part of decarbonisation efforts

10th September 2020Base metals, Bulk handling, Environmental, Mining equipment, Mining industry recognition, Power supply for mines, Steel and iron ore, Sustainable miningAustralia, BHP, carbon emissions, Chile, Climate change, decarbonisation, Electrification, Escondida, in-pit crushing and conveying, IPCC, LNG, Mike Henry, Newcastlemax, Paris Agreement, Queensland coal, renewables, Scope 1 emissions, Scope 2 emissions, Scope 3 emissions, Spence, steelmaking, trolley assistDaniel Gleeson

BHP has provided an update on its progress on climate action, new climate commitments and how it integrates climate change into corporate strategy and portfolio decisions in a new report.

The company’s climate change approach focuses on reducing operational greenhouse gas emissions, investing in low emissions technologies, promoting product stewardship, managing climate-related risk and opportunity, and partnering with others to enhance the global policy and market response, it says.

“BHP supports the aim of the Paris Agreement to limit global warming to well below 2°C above pre-industrial levels, and pursue efforts to limit warming to 1.5°C,” the company clarified.

It explained: “BHP has been active in addressing climate risks for more than two decades, and has already established its long-term goal of achieving net zero operational (Scope 1 and 2) emissions by 2050 and its short-term target of maintaining operational emissions at or below financial year (FY) 2017 levels by FY2022, using carbon offsets as required.”

In the past year, BHP has made progress on this aim, announcing that the Escondida and Spence copper mines in Chile will move to 100% renewable energy by the mid-2020s, and, last week, awarding new renewable energy contracts for its Queensland coal assets, and the world’s first LNG-fuelled Newcastlemax bulk carrier tender.

BHP’s climate change briefing and 2020 climate change report outline how the company will accelerate its own actions and help others to do the same, it said. Today’s update sets out:

A medium-term target to reduce operational greenhouse gas emissions by at least 30% from adjusted FY2020 levels by FY2030;
Scope 3 actions to contribute to decarbonisation in its value chain. This includes supporting the steelmaking industry to develop technologies and pathways capable of 30% emissions intensity reduction with widespread adoption expected post-2030 and, in terms of transportation, supporting emissions intensity reduction of 40% in BHP-chartered shipping of products;
Strengthened linking of executive remuneration to delivery of BHP’s climate plan; and
Insight into the performance of BHP’s portfolio in a transition to a 1.5°C scenario.

The report also outlined some examples of emission reduction projects the miner is considering, which will be weighed as part of the maintenance capital category of its capital allocation framework. This includes solar power installations; alternative material movement technologies such as overland conveyors and in-pit crush and convey solutions; and trolley assist to displace diesel for haul trucks.

The company expanded on this in its report: “The path to electrification of mining equipment will likely include solutions such as trolley assist, in-pit crush and convey, overland conveyors and battery solutions.

“Diesel displacement represents a higher risk, higher capital step towards decarbonisation, so a phased approach to execution is proposed with particular emphasis on Minerals Americas-operated assets that are further advanced on the decarbonisation journey. Taking a transitional approach to electrification provides flexibility to allow for the potential for rapid development of emerging technologies and to resolve the complexities of integrating these technologies into existing operations.

“During FY2021, we will seek to collaborate further with International Council on Mining and Metals members, industry and original equipment manufacturers to progress research and development to reduce costs and assess any potential impacts from electrified mining equipment solutions to replace current diesel options.”

BHP Chief Executive Officer, Mike Henry, said of the report: “I’m pleased today to show how we are accelerating our own actions and helping others to do the same in addressing climate change. We see ourselves as accountable to take action. We recognise that our investors, our people and the communities and nations who host our operations or buy our products have increasing expectations of us – and are responsive to these.

“Our approach to climate change is defined by a number of key requirements. Our actions must be of substance. They must be real, tangible actions to drive emissions down. We must focus on what we can control inside our business, and work with others to help them reduce emissions from the things that they control. To create long-term value and returns over generations, we must continue to generate value and returns within the strong portfolio we have today, while shaping our portfolio over time to benefit from the megatrends playing out in the world including decarbonisation and electrification.

“Our portfolio is well positioned to support the transition to a lower carbon world aligned with the Paris Agreement. Our commodities are essential for global economic growth and the world’s ability to transition to and thrive in a low carbon future. Climate change action makes good economic sense for BHP and enables us to create further value.”

Autonomous haulage under review at Escondida, Spence, BHP says

18th August 2020Automation, Base metals, Explosives and blasting, IoT, Mine operation news, Mining equipment, Mining services, Steel and iron oreautonomous drills, BHP, copper, Daunia, Eastern Ridge, Escondida, Goonyella Riverside, Newman East, SpenceDaniel Gleeson

Having approved three more autonomous haulage projects across its iron ore and coal portfolio since late 2019, BHP is now taking aim at its Chile copper operations, with the potential for automated trucks currently being studied at Escondida and Spence, the company says.

Alongside the potential for autonomous trucks, drills are being converted to autonomous operation at Escondida and Spence, according to the company.

The news came within the company’s financial year 2020 results presentation today, which showed BHP generated underlying EBITDA of $22.1 billion and attributable profit of $8 billion over the 12-month period.

Since late 2019, BHP has announced and is implementing three additional autonomous haulage projects at mine sites across its coal and iron ore segments.

At the Daunia coal mine in central Queensland, it announced the introduction of 34 autonomous trucks in July 2020, with the first trucks set to begin operating in February 2021 and the rollout to be completed early in 2022.

At the Newman East (Eastern Ridge) iron ore mine in Western Australia, the first of 20 autonomous trucks began operating in July 2020, with the rollout expected to be completed by the end of this year.

At the Goonyella Riverside mine in Queensland, the first coal site to implement autonomous haul trucks, the deployment of 86 autonomous trucks is expected to be completed early in 2022, it said.

“We will continue to assess the value case for potential expansion of this technology to our other Australian iron ore and coal mine sites,” the company said in the results statement today.

Monadelphous set to take on more BHP work in Australia, Chile

18th August 2020Base metals, Bulk handling, Equipment maintenance, Mining maintenance, Mining services, Steel and iron oreAntofagsta, BHP, Buildtek, Chile, Escondida, Finucane Island, Iron ore, Jimblebar, Minera Escondida, Monadelphous, Nelson Point, Port HedlandDaniel Gleeson

Monadelphous Group has gained a further foothold in numerous BHP majority-owned projects as part of its latest construction and maintenance contract awards in the resources and energy sectors that come with a combined value of around A$100 million ($72 million).

Under its recently awarded WAIO Site Engineering Panel Framework Agreement with BHP, the company has been awarded the following contracts in the Pilbara region of Western Australia:

A contract for the supply and installation of the Jimblebar Transfer Station project, with work expected to be completed by December 2020; and
A contract for the refurbishment of Car Dumper 3 at Nelson Point, Port Hedland, with work expected to be undertaken during the second half of 2020.

Further, Monadelphous has also been awarded a contract under its WAIO Asset Panel Framework Agreement with BHP for the Port Availability Improvement project to provide multidisciplinary brownfield modification works to conveyors and transfer chutes across the Nelson Point and Finucane Island facilities, in Western Australia. The work is expected to be completed in the second half of the 2021.

Then, in Chile, Monadelphous has secured several new contracts through its maintenance and construction services business, Buildtek, which it acquired late last year.

This includes two contracts with Minera Escondida BHP, for the construction and assembly of a communications tower and associated infrastructure at the Escondida copper mine, as well as an upgrade to the conveyor system feeding the Filter Plant Warehouse at Coloso Port, both in the Antofagasta region.

These contract awards were announced the day before Monadelphous released its 2020 financial year results, which showed the company generated A$1.65 billion of revenue in the 12 months and produced a net profit after tax result of A$36.5 million.

Tailings, waste management automation solutions up next for RCT in South America

10th June 2020Automation, Base metals, Communications in mining, IoT, Mine operation news, Mining equipment, Mining safety, Mining services, Mining software, Water managementAndina, BHP, Chile, Codelco, ControlMaster, El Teniente, Escondida, Hexagon Mining, Komatsu WD600, Muirhead, Phil Goode, RCT, Sandvik LH517, teleremoteDaniel Gleeson

Having made a name for itself in South America innovating on projects for Codelco, Antofagasta Minerals, Anglo American, BHP, and many others, RCT says it is now delivering solutions for miners in the region in tailings and waste management situations.

The Australia-based company is working with various customers in the region to safeguard their operations in this field with the ControlMaster® range of automation and control solutions, it said.

RCT’s experience in South America dates back two decades.

It all began with the company’s foundation solution, Muirhead® protection systems. These were requested by a client wanting to get more longevity from their bulldozers and loaders which were machine re-builds, according to the company.

Since this initial project, the company has helped deliver fit-for-purpose solutions, encompassing all its brands, to big name clients.

“The South American mining region, in general, is well-known for its copper and gold mines, all of which are located in areas exposed to extreme weather conditions (the heat and the cold) in addition to some being positioned in high altitude locations, making for some precarious working conditions for miners,” RCT said.

“Therefore, RCT’s premier automation and control solutions – ControlMaster have and continue to be in demand in both surface and underground mining operations in the region. While RCT’s Line-of-Sight and Teleremote options dominate the surface mining market, the full automation range is in strong demand for underground mining operations.”

This journey for these solutions began in the early 2000s after RCT completed an audit for ControlMaster Line-of-Sight controllers at BHP’s Escondida mine, in Chile. The company wanted a proven solution to safeguard bulldozer operators manning the run of mine pad feeders and crushers. RCT was able to retrofit the mobile machines with the technology that removed the operators from the cab of the machine and allowed them to operate it from a safe location – ultimately solving the issue for the client, the company said.

By 2008, RCT collaborated with Hexagon Mining to engineer and deliver a bespoke solution to Codelco’s Andina mine that allowed the miner to operate safer and for longer in the lead up to the winter shut down, reducing the number of days they had to stop work. This R&D project saw the delivery of a ControlMaster Teleremote solution, paired with a Muirhead Speed Limiter and combined with Hexagon Mining’s MineOps Geofencing systems installed on a Komatsu WD600 wheel dozer.

It was RCT’s project at Codelco’s El Teniente in 2018 that cemented its reputation in the region, the company says.

RCT’s ControlMaster Automation solution helped El Teniente successfully and safely mine ore-rich mud in what, it says, is believed to be a world-first mining method in these conditions. This feat was facilitated by RCT’s specialised department, RCT Custom, which delivered the bespoke solution to minimise the risk involved in mining in these conditions.

This project required RCT to retrofit its ControlMaster solutions that were previously installed on Codelco’s mobile machines operating at its Andina surface mine site before integrating the refurbished equipment, installing them on working production loaders (Sandvik LH517s) into the existing mine network.

“The solution removed the operator from the cab of the loader and allowed them to control the machine from the comfort and safety of an Automation Station located in an underground control room of the mine,” RCT said. “RCT’s solution allowed El Teniente to recover mud ore reserves that were previously deemed too dangerous to access due to the mud flow into these areas. In addition to this, the loaders were able to tram faster, avoid walls and obstacles after being automated, which significantly increased productivity and reduced machined damage and unplanned downtime.”

RCT’s Commercial Executive, Phil Goode, said it was this project that earned RCT a strong technical reputation.

This project was also monumental for the company as it further reiterated the need for RCT to have more of a local presence and compelled the company to open an office in Santiago, Chile, last year. The team, comprised of five multilingual staff, are working hard to support our existing and new clients in the region.

“Having a team working locally helps RCT to better function in Chile and other South American, Spanish speaking countries,” Goode said. “Technically we have always been very good, but the office allows us to understand the business culture and provide that next level of support to our clients.

“Most importantly, it allows us to provide the first rate level of customer service and after sales support we have built a solid reputation on delivering to all of our clients around the world.”

Currently RCT’s solutions are being delivered in tailings and waste management situations with the company working with various customers in the region to safeguard their operations in this field with the ControlMaster range of solutions, RCT said.

BHP builds its ‘green’ copper credentials at Escondida, Spence

21st October 2019Base metals, Environmental, Mine operation news, Mining services, Power supply for mines, Sustainable mining, Water managementBHP, carbon emissions, Chile, Colbún, copper, Daniel Malchuk, desalination, ENEL Generación Chile, Escondida, hydro, renewables, solar, Spence, windDaniel Gleeson

BHP says new renewable energy contracts it has recently signed in Chile will reduce energy prices for its Escondida and Spence copper mines by around 20% and help displace up to 3 Mt/y of CO2 emissions from these operations.

These agreements not only benefit BHP’s business but generate strong environmental and social value, according to Daniel Malchuk, President Operations for BHP’s Minerals Americas business.

BHP operates and own 57.5% of the Escondida mine, a leading producer of copper concentrate and cathodes from a copper porphyry deposit, in the Atacama Desert in northern Chile. Spence, which is 100% owned by BHP, is also in northern Chile.

He said: “Population growth and higher living standards combined with greater electrification are expected to push up demand for copper. This means that copper in products such as electric cars and renewable energy infrastructure, which are vital to the world’s sustainable growth, must be produced to the highest environmental aspirations.”

The new energy contracts, along with BHP’s investment in desalinated water in Chile, demonstrate social value in action and help drive the wider agenda for sustainable green copper, according to Malchuk.

Social value is one strategic pillar the company embeds in all its decision-making and informs the way in which it provides resources and generates long-term, sustainable value. This was the subject of BHP Chief External Affairs Officer, Geoff Healy’s speech in London earlier this month.

Malchuk said the company has negotiated four new power contracts that will meet its energy requirements at Escondida and Spence from 100% renewable energy sources by the mid-2020s.

“When fully operational, these renewable supply arrangements will eliminate virtually all of Escondida and Spence Scope 2 emissions (emissions from purchased energy), effectively displacing up to 3 Mt of CO2 annually compared to the fossil fuel contracts they replace,” he said. “This is the equivalent to annual emissions from about 700,000 combustion engine cars and accounts for around 70% of BHP’s Minerals Americas total greenhouse gas emissions.”

These actions also support Chile’s wider “Energia 2025” power policy target for 20% of all Chilean energy to come from renewable sources by 2025.

Following a competitive tender process, Escondida and Spence agreed separate 15-year contracts for 3 TWh/y and 10-year contracts for 3 TWh/year with ENEL Generación Chile and Colbún respectively. The ENEL contracts will begin in August 2021 and the Colbún contracts in January 2022, BHP said, with power supplied from solar, wind and hydro sources.

Malchuk said: “These contracts are practical examples of our commitment to social value that are linked to a sound business case. We estimate the agreements will reduce energy prices at our Escondida and Spence copper mine operations by around 20%, provide our operations flexibility and security of supply, and strengthen our ability to deliver sustainable copper across our supply chain.”

On top of this, the company has confirmed that its Spence operations will begin using desalinated water as the main source of supply from mid-2020 upon completion of a 1,000 l/s capacity desalination plant. This was part of a plan the company outlined in 2017 to grow the Spence operation.

This is on top of the more than $4 billion, 2,500-l/s desalination plant the company built at Escondida.

Malchuk said: “Water is a precious commodity that is critical to our operations in Chile and to the communities where we operate in the Atacama Desert, one of the driest regions in the world. We recognise our operations have an impact on the environment given the immense amount of water they consume.”

He added: “Our Water Stewardship position statement, launched last month, outlines our vision for a water secure world by 2030. It sets out our actions to improve water management within our operations and contribute to more effective water governance beyond the mine gate.

“We strongly support the UN Sustainable Development Goals on access to clean and affordable water. That’s why we will set public targets and engage industry, communities and governments to improve governance, transparency and collaboration in water management.”