Page 87 - Annual Report 2020

1.9.3 Minerals Americas 1

The Minerals Americas asset group includes projects, operated assets and non-operated joint ventures in
Canada, Chile, Peru, the United States, Colombia and Brazil.
Operated assets Strategic Report

PERU
Chile

BOLIVIA
Cerro
Colorado Governance at BHP
Iquique
Pica
Pacific Ocean
CHILE
Tocopilla
Calama
Spence
Mejillones
ARGENTINA
Antofagasta Remuneration Report
Minera Escondida
Mine

s1006_v1
Copper

Our operated copper assets in the Americas, Escondida and Pampa Key developments during FY2020
Norte are open-cut mines. At these mines, overburden is removed Escondida copper production in FY2020 increased by 4 per cent Directors’ Report
after blasting, using truck and shovel. Ore is then extracted and to 1,185 kilotonnes (kt), supported by record average concentrator
further processed into high-quality copper concentrate or throughput of 371 kilotonnes per day (ktpd), which offset expected
cathodes. Copper concentrate is obtained through a grinding and grade decline, stoppages associated with the social unrest and
flotation process, while copper cathodes are produced through COVID-19 impacts.
a leaching, solvent extraction and electrowinning process. Copper
concentrate is transported to the port via pipeline, while cathodes The Escondida Water Supply Expansion (EWSE) project was
are transported by either rail or road. From the ports, copper completed on time and budget in December 2019. Following the
is exported to our customers around the world. completion of the EWSE project, Escondida has eliminated water
drawdown from aquifers for operational supply 10 years ahead
For the majority of the June 2020 quarter, our Chilean assets of its FY2030 target.
operated with a reduction in their operational workforces of
approximately 35 per cent to incorporate measures in response The Centre of Integrated Operations (CIO) was inaugurated in Financial Statements
to COVID-19. We have implemented a comprehensive plan for July 2019 in BHP’s Santiago office and has since provided remote
COVID-19, including various hygiene and health controls and control services to the mine and process areas of Escondida and
a proactive testing regime for people before entering sites and Spence. The CIO enables an operation that is safer and more
boarding transportation. productive by reducing people on-site and allowing them to work
in a collaborative space.
We will continue to maintain operational measures that protect
the health and wellbeing of our workforce while COVID-19 remains Looking ahead
a major health risk, in line with Our Charter values. As a result, we Production of between 940 and 1,030 kt is expected for FY2021,
anticipate continuing to operate our Chilean assets with a reduced with a decline in copper grade of concentrator feed of approximately
workforce until these controls can be relaxed. 4 per cent. Lower volumes reflect the need to continue to balance
Escondida (Chile) mine development and production requirements, with processing Additional information
capacity at concentrators and leaching plants, as a result of a
Overview reduced operational workforce due to COVID-19. It is expected that
We own 57.5 per cent of the Escondida mine, a leading producer of production levels are likely to be impacted in FY2022 as a result of
copper concentrate and cathodes located in the Atacama Desert in reduced operational workforce and material movement in FY2021.
northern Chile. Escondida’s two pits feed three concentrator plants, Guidance of an annual average of 1,200 kt of copper production over
as well as two leaching operations (oxide and sulphide). the next five years remains unchanged.
The BHP Operating System deployment and automated truck trial
initiatives are expected to be completed in FY2021. In addition,
Escondida will be undertaking studies on different material handling
technologies to build an integrated suite of material handling projects
that aims to combine innovative and disruptive technology and Shareholder information
equipment solutions to increase mine productivity and improve
costs competitiveness.
We expect these initiatives will allow Escondida to operate with
a medium-term unit cost of less than US$1.10 per pound despite
the continuation of grade decline and the increasing water costs.

BHP Annual Report 2020 85