The world’s largest mining company, BHP, has suspended billions of dollars’ worth of decarbonisation projects in Australia’s Pilbara region — even as internal documents warned that slow emissions reduction could undermine the company’s reputation and its “licence to operate.” This emerges from materials leaked to the media.
Hundreds of internal documents obtained by the Australian Broadcasting Corporation and Guardian Australia show that BHP froze renewable energy and electrification plans in Western Australia while publicly positioning itself as a climate leader. The projects relate to BHP’s iron ore business in the Pilbara, which generated $14.4 billion in pre-tax profit in the last financial year and accounts for more than a third of the company’s Australian emissions.
“Urgent decarbonisation in line with BHP’s public commitments is effectively core to the company’s licence to operate, maintain and grow,” reads a 2023 document signed by BHP Australia President Geraldine Slattery. The same memorandum warned of “reputational consequences” should progress on reducing Pilbara emissions prove too slow.
According to the leaked materials, BHP halted a board-approved $400 million project to build a solar power station and energy storage system at the Jimblebar iron ore mine shortly after it was approved in 2023, citing “cash flow prioritisation.” A larger $1.3 billion proposal — encompassing solar, wind, and battery capacity to power electric haul trucks and trains — was subsequently also deferred in its current form. Financial documents indicate that no major expenditure is planned before 2031.
At the same time, BHP purchased 62 new diesel trucks for Jimblebar following a sharp drop in prices, locking in fossil fuel use at the operation until at least the late 2030s and potentially until 2041.
The company says it remains committed to achieving net-zero emissions by 2050. Critics argue, however, that the delay in Pilbara electrification undermines confidence in that target. Rival Fortescue continues to pursue aggressive electrification and renewable energy plans in the region, despite broader industry scepticism about timelines and technology readiness.
The gap between BHP’s public commitments and its actual actions raises serious questions about its climate credentials. For the mining industry, this is a signal that even the largest players struggle to fund the green transition when forced to choose between dividends and decarbonisation.
Source: Guardian Australia
Image: BHP
