Page 73 - Annual Report 2020

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Indigenous peoples
We recognise and respect the rights of Indigenous peoples and Case study:
acknowledge the connection they have to the natural environment, Sustainability at Escondida and Spence
which can be tangible and intangible. We recognise our activities Strategic Report
impact on Indigenous peoples and we are committed to working
together to ensure BHP is an enabling partner with Indigenous
peoples with a genuine understanding of their views and interests.
BHP’s Indigenous Peoples Policy Statement articulates our
approach to engagement and support for Indigenous peoples and
our commitment to the ICMM Position Statement on Indigenous
Peoples and Mining. Our Indigenous Peoples Strategy guides the
implementation of our Policy Statement.
We commenced a review of our Indigenous Peoples Policy Governance at BHP
Statement and Strategy in early FY2020. This review involved
consultation with Indigenous leaders and analysis of leading
practice to understand changes in policy and practice since our
approach was articulated in 2014. We plan to publish updated
guidance in FY2021. In FY2020, we met our public target to have
active Regional Indigenous Peoples Plans in place across relevant
regions. Each plan includes our approach to governance,
economic empowerment and social and cultural support with
Indigenous stakeholders globally and has been developed to
respect Indigenous rights, align with respective regulatory Remuneration Report
requirements and reflect local Indigenous stakeholder needs.
Aligned with the economic empowerment pillar of our Regional
Indigenous Peoples Plan for South America, in FY2020 we
conducted employability studies across Indigenous communities
and completed an Indigenous employee identification survey of
our workforce. In FY2020 in Minerals Australia we saw a 28 per cent Continued sustainability improvements at our Escondida and
growth in BHP’s direct spend with Indigenous businesses across Spence copper operations in Chile in FY2020 have placed
our operated assets, increasing to AU$98 million of which them on track to be 100 per cent powered by renewable
AU$42.4 million was with BHP Considered Traditional Owner energy sources by the mid-2020s and have eliminated the
businesses. We also increased by 44 per cent the number of extraction of groundwater for operational supply purposes Directors’ Report
Indigenous businesses we directly procured from in Minerals at Escondida 10 years ahead of schedule.
Australia and the number of BHP Considered Traditional Owner
(1)
businesses by 37 per cent. Minerals Americas secured four renewable power agreements
We strive for a sustainable approach to our operations and to work for the operations during the year, to replace two coal-based
power purchase agreements, which accounted for 8 per cent
in partnership with Indigenous communities to ensure they benefit of Chile’s power demand.
from our presence over the long term, and that each stage of
development is informed by their views. Our relationships are The renewable power contracts will displace 3 million tonnes
based on regular and extensive discussions on a range of issues of CO 2 per year from 2022 and reduce 70 per cent of Minerals
including our extractive activities and broader support for Americas’ greenhouse gas emissions, equivalent to the annual
Indigenous peoples, including employment and local procurement emissions of around 700,000 combustion engine cars.
opportunities. We seek to avoid or minimise impacts to cultural The contracts will also reduce power costs despite the Financial Statements
heritage, through planning and ongoing consultation with US$780 million provision in BHP’s December 2019 half-year
Indigenous communities. Our processes provide opportunities for financial results related to the early termination of the existing
Indigenous stakeholders to identify those sites, places, structures coal-based power purchase agreements. In August 2020,
and objects that are culturally or traditionally significant and to be as part of the project optimisation, Escondida and Spence
consulted and engaged in relation to decisions regarding the negotiated more competitive terms for the early termination.
protection and management of those sites. Taking this into account, the new contracts offer a 22 per cent
In October 2019, BHP submitted an application for a government power unit cost reduction from FY2022 onwards.
approval related to Aboriginal heritage sites at our South Flank With the growing use of desalination, Escondida ceased
project under construction in the Pilbara region of Western groundwater extraction for operational supply purposes from
Australia. The approval was granted in May 2020 following extensive the high Andean aquifers during the year, a move that had Additional information
consultation with the Traditional Owners, the Banjima people. been originally scheduled for FY2030. By investing in
Nonetheless, consistent with our approach to cultural heritage, BHP desalination capability to shift from groundwater to seawater
confirmed in June 2020 that it would not disturb the sites covered usage, we are taking pressure off the Atacama Desert water
by the approval without further consultation with the Traditional resources surrounding the mines. This is important because,
Owners. BHP supports the Western Australian Government’s current with the expected gradual decline of grades at Escondida and
process to reform and update its cultural heritage legislation. BHP Spence over the coming years, the mines will need more water
has made submissions to the Government in support of this reform. and power to maintain production.
In Chile, our Indigenous affairs and environment teams work These initiatives demonstrate how BHP can deliver both
closely with Indigenous stakeholders to identify sites of cultural social value and financial value – by securing more
significance, as outlined in the Minerals Americas Indigenous sustainable power sources, eliminating groundwater usage
Peoples Plan. As part of the approvals for the Cerro Colorado and reducing operating costs. Shareholder information
environmental assessment, we have cultural heritage monitoring
commitments that we execute in partnership with the relevant More information on how Escondida is breaking the
Indigenous communities and these continued to be monitored water-energy nexus, see our case study at bhp.com.
during FY2020.

More information on community is available at
bhp.com/sustainability.
(1) Refers to any business, formal collaboration or joint venture that is at least 50 per cent owned by an Aboriginal Traditional Owner(s) from one of the lands or waters
upon which BHP holds interests in connection with its mining businesses specific to this contract’s asset, unless otherwise defined in a native title agreement or other
formal agreement.
BHP Annual Report 2020 71