BHP: Decarbonizing Large-Scale Mining

BHP has taken a leading role in mining decarbonization, with ambitious targets to reduce its operational emissions. Based on the experience of its operations in Latin America, what have been the main factors enabling progress in this process, and what challenges still need to be overcome to accelerate the transition toward lower-emission mining?

BHP’s decarbonization strategy is guided by clear public targets: to reduce operational greenhouse-gas emissions—Scopes 1 and 2 from operated assets—by at least 30% by FY2030 relative to FY2020, and to achieve net-zero operational emissions by 2050. In Latin America, and particularly in Chile, this objective is strategic because of copper’s role in electrification, digitalization and the global energy transition.

In Chile, BHP has had 100% renewable electricity supply since FY2022 through long-term contracts. In FY2024, this supply represented 6.8 TWh of renewable electricity and contributed to reducing operational emissions at Escondida and Spence by approximately 70%, displacing close to 3 million tonnes of CO₂ per year.

Progress has been made possible by a combination of strategic decisions, operational discipline and technological innovation: competitive clean-energy contracts, new solar generation and storage solutions, and the progressive development of alternatives to reduce diesel use in mining equipment and across the value chain.

The main challenge is to accelerate solutions that are scalable, competitive and reliable for energy-intensive operations, while maintaining security of supply and effective coordination among companies, technology providers, communities and authorities.

Reducing continental-water consumption is one of the main challenges for large-scale mining. Based on BHP’s experience, how can water-security strategies be reconciled with efficient energy management, particularly in operations that incorporate large-scale desalination and water-transport processes?

For large-scale mining, water security is an essential condition for operating responsibly in areas with high water stress, such as northern Chile. The challenge is to reduce pressure on continental sources without losing competitiveness or operational reliability, integrating water, energy and infrastructure management from the design stage.

BHP has invested close to US$4 billion over the past 15 years to advance the use of desalinated water and reduce dependence on continental aquifers. Escondida operates exclusively with desalinated water, with a plant with maximum capacity of 3,800 liters per second and pumping systems that transport water from the coast to operations located more than 3,000 meters above sea level. At Spence, the concentrator also operates exclusively with seawater.

Desalination has become enabling infrastructure for sustainable mining development, but it entails greater energy requirements associated with intake, treatment and pumping. Reconciling water security and energy efficiency therefore requires process optimization, greater recirculation, more efficient pumping, and progress in storage and energy-management solutions.

Experience shows that the way forward is not to treat water and energy as separate challenges, but as an integrated system: producing more copper with less pressure on water resources, lower energy intensity, and greater collaboration with technology partners, authorities, communities and the industry.

As one of the world’s leading producers of copper and other strategic minerals, how does BHP assess Latin America and the Caribbean’s role in supplying critical minerals for the energy transition? What conditions does it consider priorities for the region to strengthen its competitiveness and consolidate its leadership over the coming decades?

BHP’s growth strategy is linked to megatrends such as electrification, decarbonization, urbanization and digitalization. In this context, copper has a strategic role: BHP estimates that global demand could grow by around 70% by 2050, exceeding 50 million tonnes per year. Latin America, especially Chile and Peru, has a central role because of its resource base, mining experience, human capital and capacity to develop world-class operations.

For BHP, this opportunity requires responsible growth: investing in high-quality assets, extending the life of existing operations, improving productivity and incorporating technologies that reduce environmental impacts and increase operational efficiency.

To consolidate its leadership, the region needs to enable responsible, timely and competitive projects by strengthening permitting, infrastructure, talent, innovation and trust-based relationships with communities and territories. The objective is for Latin America to responsibly supply the critical minerals the world needs for the energy transition while generating economic and social value in the countries where it operates.