Page 89 - Annual Report 2020

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Prince Albert
Saskatchewan, Strategic Report
Canada
Wolverine
Burr
Saskatoon
Jansen
Young
Boulder Yorkton
Stalwart Governance at BHP
Holdfast Melville
Moose Jaw Regina Regina

Assiniboia Weyburn

BHP Potential Projects BHP Land Permits
Extent of Mine Integrity Prairie Evaporite 1,100m
s1010_v1 Remuneration Report
Potash

Potash is a potassium-rich salt mainly used in fertiliser to improve
the quality and yield of agricultural production. As an essential Non-operated minerals joint ventures
nutrient for plant growth, potash is a vital link in the global food
supply chain. The demands on that supply chain are intensifying; BHP holds interests in companies and joint ventures that we do
there will be more people to feed in future, as well as rising calorific not operate. Our non-operated minerals joint ventures (NOJVs)
intake comprising more varied diets. The strains this will place on include Antamina (33.75 per cent ownership), Resolution Copper
finite land supply mean sustainable increases in crop yields will be (45 per cent ownership), Cerrejón (33.33 per cent ownership) Directors’ Report
crucial and potash fertilisers will be critical in replenishing our soils. and Samarco (50 per cent ownership).
Jansen Potash Project (Canada) For more information on Samarco and Fundação Renova,
Overview refer to section 1.8.
BHP holds exploration permits and mining leases covering
approximately 9,600 square kilometres in the province of We engage with our NOJV partners and operator companies through
Saskatchewan, Canada. The Jansen Potash Project is located our NOJV team, which seeks to sustainably maximise returns
approximately 140 kilometres east of Saskatoon. We currently through managing risk. While NOJVs have their own operating and
own 100 per cent of the Project. management standards, we seek to enhance governance processes
Jansen’s large resource endowment provides the opportunity to and influence operator companies to adopt international standards
develop it in stages, with anticipated initial capacity of between (within the limits of the relevant joint venture agreements). Financial Statements
4.3 and 4.5 Mtpa for Jansen Stage 1, with sequenced brownfield Since the creation of the NOJV team, our focus has been to
expansions of up to 12 Mtpa (4 Mtpa per stage). reinforce strong practices in governance, risk management and
Key developments during FY2020 value optimisation.
Focus in FY2020 was on safely installing new work platforms, called During the COVID-19 pandemic, BHP supported some of the
Galloways, into the two 7.3-metre diameter service and production work by the operator at certain of our NOJVs to address risks
shafts to enable the installation of the final watertight composite associated with the pandemic, including temporary shutdowns
concrete and steel liners from a depth of approximately 900 and restart. Subject matter experts from NOJV partners (including
metres. At the end of FY2020, the current scope of work was BHP) provided input to relevant NOJV operators in relation to
86 per cent complete. HSE, communications and community engagement issues during
the pandemic.
The service shaft and production shaft are 1,005 metres and 975 Additional information
metres deep, respectively. Jansen is intended to mine the Lower Throughout FY2020, we continued positively influencing the
Patience Lake potash formation, which lies between 935 metres NOJVs to align with international standards (including ISO 31000).
and 940 metres. This included analysing and challenging completeness of their risk
Looking ahead profile and prioritising management of those risks.
Future work will include continuing to install the watertight The NOJV team also continued to support the NOJVs to improve
their operating performance and cost competitiveness in a
composite concrete and steel final liners. In June 2020, final shaft challenging environment, delivering significant capital optimisation
lining work for the Jansen Potash Project, which was reduced to across the Antamina, Cerrejón and Resolution joint ventures and
focus on one shaft as part of our COVID-19 response plan to reduce strengthening the capital returns from each of the operations.
our on-site interprovincial workforce, was resumed in both shafts.
BHP continues to assess the impacts of COVID-19 and the Shareholder information
temporary reduction in construction activity. Timing for completion More information on the health, safety and environment
performance at our NOJVs is available at bhp.com
of the shafts continues to be under review.
We will continue the selection of a port option on the North
American west coast from which Jansen’s potash would be
exported. As with all decisions relating to the deployment of
capital, the next steps of the Project will be assessed in line with
our Capital Allocation Framework.

BHP Annual Report 2020 87