Page 90 - Annual Report 2020

1.9.3 Minerals Americas continued
Non-operated minerals joint ventures

Santa District
Chimbote Chingas
District

Casma District Huari
Huaraz
Antamina
La Gramita Mine

Puerto Huarmey

Las Zorras

Huari
Province, Barranca
Ancash,
Peru District
Antamina Mine Port Hwy

Copper

Antamina (Peru)
Overview innovative solutions in line with the technology roadmap. In addition,
We own 33.75 per cent of Antamina, a large, low-cost copper and Antamina will continue to embed a culture of diversity and inclusion
zinc mine in north central Peru. Antamina is a joint venture between in its strategy and monitor the MEIA process, seeking final approval
BHP (33.75 per cent), Glencore (33.75 per cent), Teck Resources in a reasonable timeframe and community engagement. Once the
(22.5 per cent) and Mitsubishi Corporation (10 per cent), and MEIA process is finalised, it is anticipated Antamina will update its
is operated independently by Compañía Minera Antamina S.A. reserve and resource statement to reflect an approved life extension
Antamina by-products include molybdenum and silver. to CY2036.
Key developments during FY2020 Resolution Copper (United States)
Antamina continues to focus its efforts on safety and health Overview
improvements. Copper production for FY2020 decreased by BHP holds a 45 per cent interest in the Resolution Copper project in
15 per cent to 125 kt and zinc decreased by 10 per cent to 88 kt the US state of Arizona, which is operated by Rio Tinto (55 per cent
reflecting lower copper head grades and the impact of operating interest). Resolution Copper is one of the largest undeveloped
with a reduced workforce following a six-week shutdown during copper projects in the world and has the potential to become the
the June 2020 quarter in response to COVID-19. largest copper producer in North America. The Resolution Copper
During FY2020, Antamina continued with a strong focus on deposit lies more than 1,600 metres beneath the surface. Resolution
developing a robust technology roadmap to secure a more Copper is working with regulators and the community to plan the
sustainable operation in the long term and to maintain cost development of the resource and obtain the necessary permits.
competitiveness. Antamina has progressed studies to debottleneck Key developments during FY2020
the operation through mine mechanisation projects and the first
phase is expected to be completed in the next three years. The shaft No. 9 sinking project involves deepening the historic
Antamina announced its intent to submit its Modified Environmental shaft from its current depth at 1,460 metres below the surface
to a final depth of 2,086 metres and linking it with the existing
Impact Assessment (MEIA) for its life extension project from CY2028 No. 10 shaft via development activities underground. This project
to CY2036, which includes extension of current approved tailings is on track with respect to schedule and budget. In December 2019,
capacity, additional waste dumps and new pit design. it passed the one-mile (1,600 metre) mark with zero safety events;
Antamina’s operations were suspended between 13 April and a major milestone for shaft sinking works in the United States.
26 May 2020 due to COVID-19 implications. Strict controls were
applied during the demobilisation to safeguard the health of workers The multi-year National Environmental Policy Act permitting
and local communities. At the end of FY2020, its operations were process and community engagement are progressing positively.
at a ramp-up stage, while complying with government COVID-19 The US Forest Service released the Draft Environmental Impact
requirements and applying sector international standards for health Statement on 9 August 2019 and the comment period closed
and safety. on 7 November 2019.
During the COVID-19 emergency, Antamina intensified its Resolution continued to move forward to identify the best
contribution to local communities, helping the Regional Government development pathway for the project as the PFS-A study progressed.
to strengthen its capabilities to cope with the pandemic, providing BHP’s share of project expenditure for FY2020 was US$103 million.
medical equipment, launching initiatives for local farmers and Looking ahead
entrepreneurs to support the local economy (through the program
Reactiva Ancash), and distributing food aid. We remain focused on supporting Resolution Copper on optimising
Looking ahead the project and working with the operator, Rio Tinto, to develop
the project in a manner that creates sustainable benefits for
Copper production of between 120 and 140 kt, and zinc production all stakeholders.
of between 140 and 160 kt is expected for FY2021.
Antamina will remain focused on improving productivity and
reducing unit cash costs by identifying new technologies and

88 BHP Annual Report 2020