Page 83 - Annual Report 2020

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Western
Australia
Port Hedland Strategic Report
Finucane Island Nelson Point
South Hedland Goldsworthy Rail Line
Karratha
Yarrie
Great Marble Bar
Northern
Highway
Port Hedland – Newman Rail Line
Chichester Governance at BHP
Deviation
Karijini
National Yandi
Park
Mining Area C
South Flank Orebody Orebody 18
24/25
Mt Whaleback Newman Jimblebar
Orebody 29/30/35
Existing operations Port
Port Hedland – Newman Rail Line Goldsworthy Rail Line
s1002_v1 Remuneration Report
Iron ore asset

Western Australia Iron Ore Key developments during FY2020
Overview Construction of the South Flank project started in July 2018
Western Australia Iron Ore (WAIO) is an integrated system of four and by the end of FY2020 was overall 76 per cent complete.
processing hubs and five mines connected by more than 1,000 WAIO achieved record production in FY2020 of 248 million
kilometres of rail infrastructure and port facilities in the Pilbara tonnes (Mt) (compared to 238 Mt in FY2019), with higher volumes
region of northern Western Australia. reflecting record production at Jimblebar and Yandi. Weather Directors’ Report
WAIO’s Pilbara reserve base is relatively concentrated, allowing impacts from Tropical Cyclone Blake and Tropical Cyclone Damien
development to be planned around integrated mining hubs that were offset by strong performance across the supply chain, with
are connected to the mines and satellite orebodies by conveyors significant improvements in productivity and reliability following a
or spur lines. This enables the value of installed infrastructure series of targeted maintenance programs over the past four years.
to be maximised by using the same processing plant and rail We continue to be a low-cost iron ore producer with cost
infrastructure for a number of orebodies. reductions and volume creep enabled through the BHP Operating
Ore is crushed, beneficiated (where necessary) and blended at System, debottlenecking initiatives across the supply chain, and
each processing hub – Newman operations, Yandi, Mining Area C technology and improvements in our maintenance strategies.
and Jimblebar – to create high-grade lump and fines products. Iron WAIO continues to focus on operating safely, implementing a series
ore products are then transported along the Port Hedland–Newman of preventative measures designed to minimise the spread of Financial Statements
rail line to the Finucane Island and Nelson Point port facilities at COVID-19. To meet border controls introduced by the Western
Port Hedland. Australian Government, more than 900 employees and contractors
There are four main WAIO joint ventures (JVs): Mt Newman, Yandi, in business critical roles have temporarily relocated to Western
Mt Goldsworthy and Jimblebar. BHP’s interest in each of the joint Australia, including the majority of people in specialist roles who
ventures is 85 per cent, with Mitsui and ITOCHU owning the are based interstate, such as train drivers and train load out
remaining 15 per cent. The joint ventures are unincorporated, operators. These employees remain in Western Australia.
except Jimblebar. In October 2019, BHP submitted an application for a government
BHP, Mitsui and ITOCHU are also participants in the POSMAC approval related to Aboriginal heritage sites at our South Flank
JV, a joint venture with a subsidiary of POSCO that involves project under construction in the Pilbara region of Western
the sublease of parts of one of WAIO’s existing mineral leases. Australia. The approval was granted in May 2020 following Additional information
The ore from the POSMAC JV is sold to the Mt Goldsworthy JV. extensive consultation with the Traditional Owners, the Banjima
people. Nonetheless, consistent with our approach to cultural
All ore is transported by rail on the Mt Newman JV and Mt heritage, BHP confirmed in June 2020 that it would not disturb
Goldsworthy JV rail lines to the port facilities. WAIO’s port facilities the sites covered by the approval without further consultation
at Nelson Point are owned by the Mt Newman JV and Finucane with the Traditional Owners. BHP supports the Western Australian
Island is owned by the Mt Goldsworthy JV. Government’s current process to reform and update its cultural
heritage legislation. BHP has made submissions to the Government
in support of this reform.
Looking ahead
South Flank remains on track to deliver first ore in CY2021
and is expected to produce 80 million tonnes per annum (Mtpa), Shareholder information
replacing volumes from Yandi, as Yandi reaches its end of mine life.
For more information about South Flank,
refer to section 6.5.
WAIO continues to focus on productivity and debottlenecking,
while transitioning critical supply chain projects to deliver strong
returns and operational stability. Underpinning this success will
be the embedment of our transformation programs, labour
productivity and operational efficiencies across our business.

BHP Annual Report 2020 81