Page 274 - Annual Report 2020
P. 274

Nickel mining operations
          The following table contains additional details of our mining operations. This table should be read in conjunction with the production table
          (refer to section 6.3.1) and reserves table (refer to section 6.4.2).

          Mine &    Means of                     Title, leases          Mine type &             Facilities,
          location  access    Ownership  Operator  or options  History  mineralisation style  Power source  use & condition
          Nickel West
          Mt Keith mine and concentrator
          485 km north  Private road  BHP 100%  BHP  Mining leases   Commissioned    Open-cut  On-site third   Concentration
          of Kalgoorlie,  Nickel                 granted by   in 1995 by WMC  Disseminated   party gas-fired  plant with a
          Western   concentrate                  Western     Acquired in 2005  textured magmatic   turbines with   nominal capacity:
          Australia  transported                 Australian   as part of WMC   nickel-sulphide   backup from   11 Mtpa of ore
                    by road to                   Government  acquisition  mineralisation   diesel engine
                    Leinster for                 Key leases expire      associated with    generation
                    drying and                   between 2029           a metamorphosed   Contracts
                    on- shipping                 and 2036               ultramafic intrusion  expire in
                                                 Renewals at                          December
                                                 government                           2023
                                                 discretion                           Natural gas
                                                                                      sourced and
                                                                                      transported
                                                                                      under separate
                                                                                      long-term
                                                                                      contracts
          Leinster mine complex and concentrator
          375 km north  Public road  BHP 100%  BHP   Mining leases   Production   Open-cut and   On-site third   Concentration plant
          of Kalgoorlie,  Nickel                 granted by   commenced    underground  party gas-fired  with a nominal
          Western   concentrate                  Western     in 1979    Steeply dipping   turbines with   capacity: 3 Mtpa
          Australia  shipped by                  Australian   Acquired in 2005  disseminated and   back up from   of ore
                    road and rail to             Government  as part of WMC   massive textured   diesel engine
                    Kalgoorlie                   Key leases    acquisition  nickel-sulphide   generation
                    Nickel Smelter               expire between   Perseverance   mineralisation   Contracts
                                                 2025 and 2040  underground   associated with   expire in
                                                 Renewals of   mine ceased   metamorphosed   December
                                                 principal    operations    ultramafic lava flows  2023
                                                 mineral lease    during 2013  and intrusions  Natural gas
                                                 in accordance                        sourced and
                                                 with Nickel                          transported
                                                 (Agnew)                              under separate
                                                 Agreement                            long-term
                                                                                      contracts
          Cliffs mine
          481 km north  Private road  BHP 100%  BHP  Mining leases   Production   Underground  Supplied from  Mine site
          of Kalgoorlie,  Nickel ore             granted by   commenced    Steeply dipping   Mt Keith
          Western   transported by               Western     in 2008    massive textured
          Australia  road to Leinster            Australian   Acquired in 2005  nickel-sulphide
                    or Mt Keith for              Government  as part of WMC   mineralisation
                    further                      Key leases    acquisition  associated with
                    processing                   expire between         metamorphosed
                                                 2025 and 2028          ultramafic lava flows
                                                 Renewals at
                                                 government
                                                 discretion
          Nickel smelters, refineries and processing plants

          Smelter, refinery                        Title, leases             Nominal
          or processing plant  Location  Ownership  Operator  or options  Product  production capacity  Power source
          Nickel West
          Kambalda
          Nickel concentrator  56 km south  BHP 100%  BHP  Mineral leases   Concentrate   1.6 Mtpa ore  On-site third party gas-fired
                        of Kalgoorlie,             granted by   containing   Ore sourced    turbines supplemented
                        Western                    Western     approximately    through tolling    by access to grid power
                        Australia                  Australian   13% nickel   and concentrate   Contracts expire
                                                   Government                purchase      in December 2023
                                                   Key leases expire         arrangements    Natural gas sourced and
                                                   in 2028                   with third parties    transported under separate
                                                                             in Kambalda region  long-term contracts
          Kalgoorlie
          Nickel smelter  Kalgoorlie,   BHP 100%  BHP   Freehold title   Matte containing   110 ktpa matte  On-site third party gas-fired
                        Western                    over the property approximately 65%     turbines supplemented
                        Australia                              nickel                      by access to grid power
                                                                                           Contracts expire in
                                                                                           December 2023
                                                                                           Natural gas sourced and
                                                                                           transported under separate
                                                                                           long-term contracts
          Kwinana
          Nickel refinery  30 km south  BHP 100%  BHP   Freehold title   London Metal   82.5 ktpa nickel matte Power is sourced from the
                        of Perth,                  over the property Exchange (LME)        local grid, which is supplied
                        Western                                grade nickel                under a retail contract
                        Australia                              briquettes,
                                                               nickel powder
                                                               Also intermediate
                                                               products, including
                                                               copper sulphide,
                                                               cobalt-nickel-sulphide,
                                                               ammonium-sulphate

          272  BHP Annual Report 2020
   269   270   271   272   273   274   275   276   277   278   279