Page 329 - Annual Report 2020

Water consumption Entrainment may show variability due to the type and location
Prior to FY2019, water consumption was included within the of ore during any given reporting period. The category of ‘other’
reporting of water outputs. In the ICMM Guidelines, consumption for consumption includes water consumed, for example as a result
(the volume of water used by the operated asset and not returned of potable water consumption at operated assets. Strategic Report
to the water environment or a third party) is a separate reporting The increased focus on consumption will assist with increased
category. Available data for evaporation and entrainment from the and improved data accuracy for entrainment and evaporation,
FY2017 and FY2018 reporting periods was moved to the consumption and assist with identifying opportunities to reduce, where possible,
category from FY2019 in order to allow representative year-on-year losses such as those associated with evaporation.
comparisons. This data is shown in section 6.6.3. The operated assets in FY2020 that consumed the most water
In FY2020, evaporation and entrainment were the most significant were Escondida, WAIO and Queensland Coal. Entrainment of water
contributors to consumption, representing more than 91 per cent in tailings is the largest contributor to consumption at Escondida,
of total consumption, slightly less than in FY2019 due to a reduction whereas evaporation is the key driver of consumption at WAIO and
in evaporation. Queensland Coal. It should be noted that in any given reporting
Evaporation consumption is inherently linked with climatic period, consumption and discharges volumes might be higher than Governance at BHP
conditions during the reporting period. Evaporation data is withdrawals as evaporation can occur from water that has been
estimated or simulated using average climatic conditions and captured and stored during previous periods.
therefore consumption due to evaporation should remain relatively FY2020 Consumption by asset
stable but may vary due to climatic conditions outside of BHP’s
control. The Minerals Council of Australia has indicated there will Per million megalitres
be some updates in the WAF guidance with respect to reporting 1.0
of evaporation. The new guidance states that evaporation should
be reported by source water quality type (instead of as Type 1). 8
This change is to better align the WAF with other global water
metrics. Classifying the quality of evaporated water by the source 6
water quality allows the consumptive use of lower-quality water Remuneration Report
to be better represented in the water account. BHP has reported 4
evaporation in line with this intended update to the WAF.
2
0
Escondida Western Australia Iron Ore Queensland Coal (BMA/BMC) Nickel West Olympic Dam Pampa Norte NSW Energy Coal Legacy sites Petroleum Potash Canada

● Evaporation ● Entrainment ● Other Directors’ Report

Financial Statements

6

Additional information

BHP Annual Report 2020 327 Shareholder information