Page 290 - Annual Report 2020

6.4.2 Mineral Resources and Ore Reserves

The statement of Mineral Resources and Ore Reserves presented These include:
in this Annual Report has been produced in accordance with the • standard BHP procedures for public reporting aligned with
Australian Securities Exchange (ASX) Listing Rules Chapter 5 2014 current regulatory requirements;
and the Australasian Code for Reporting of Exploration Results, • independent audits of new and materially changed estimates;
Mineral Resources and Ore Reserves, December 2012 (JORC Code). • annual reconciliation performance metrics to validate reserves
The JORC Code requires the use of reasonable investment estimates for operating mines;
assumptions when reporting reserves. As a result, management • internal technical assessments of resource and reserve
predicts sales prices, based on supply and demand forecast and estimates are conducted on a frequency that is informed by
current and long-term historical average price trends. asset materiality and annual risk reviews.
The Ore Reserves tabulated are held within existing, permitted The Technical Centre of Excellence manages assurance and
mining tenements. BHP’s mineral leases are of sufficient duration functional leadership for and reporting of Mineral Resources
(or convey a legal right to renew for sufficient duration) to enable and Ore Reserves supported by the above controls.
all reserves on the leased properties to be mined in accordance
with current production schedules. Our Ore Reserves may include Mineral Resources and Ore Reserves are presented in the
areas where some additional approvals remain outstanding, but accompanying tables.
where, based on the technical investigations we carry out as part
of our planning process and our knowledge and experience of the
approvals process, we expect that such approvals will be obtained
as part of the normal course of business and within the time frame
required by the current life of mine schedule.
The information in this Annual Report relating to Mineral Resources
and Ore Reserves is based on and fairly represents information
and supporting documentation compiled by Competent Persons
(as defined in the JORC Code). All Competent Persons have, at
the time of reporting, sufficient experience relevant to the style
of mineralisation and type of deposit under consideration and to
the activity they are undertaking to qualify as a Competent Person.
At the reporting date, each Competent Person listed in this Annual
Report is an employee of BHP or a company in which BHP has
a controlling interest (unless otherwise noted) and is a Member
or Fellow of the AusIMM or AIG or a Recognised Professional
Organisation. Each Competent Person consents to the inclusion
in this Annual Report of the matters based on his or her information
in the form and context in which it appears.
All Mineral Resources and Ore Reserves presented are reported
in 100 per cent terms (unless otherwise stated) and represent
estimates at 30 June 2020. Tonnes are reported as dry metric
tonnes (unless otherwise stated). All tonnes and grade/quality
information have been rounded, hence small differences may
be present in the totals. The Measured and Indicated Mineral
Resources are inclusive of those Mineral Resources modified
to produce the Ore Reserves. The information contained in this
document differs in certain respects from that reported to the SEC.
Reserve reporting requirements for SEC filings in the United States
are specified in Industry Guide 7, with economic assumptions
based on current economic conditions that may differ to the JORC
Code’s reasonable investment assumptions. Accordingly, a SEC
pricing assumptions test is performed with reserve estimates
derived under the JORC Code compared to those derived
assuming ‘current economic conditions’. Reserves disclosed
in the United States will differ if the SEC pricing assumption test
indicates reserves lower than those reported under the JORC
Code in Australia and the United Kingdom and/or Inferred Mineral
Resources are included in the mine plan. BHP applies assurance
arrangements and internal controls to verify the estimates and
estimation process for Mineral Resources and Ore Reserves.

288 BHP Annual Report 2020