Page 91 - Annual Report 2020

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La Guajira
province,
Colombia

Puerto Bolivar Strategic Report

Caribbean Sea

Uribia
Riohacha
Maicao
COLOMBIA Gulf of Venezuela Governance at BHP
Cerrejón

Maracaibo
VENEZUELA

Cerrejón Port Rail

s1009_v1 Remuneration Report
Coal

Cerrejón (Colombia)
Overview Key developments during FY2020
We have a 33.33 per cent interest in Cerrejón, which owns, FY2020 concluded with stable safety and operational performance
operates and markets (through an independent company) one of at Cerrejón. Production declined by 23 per cent to 7 Mt in FY2020,
the world’s largest open-cut energy coal mines, located in the La due to a temporary shutdown and workforce reduction during the
Guajira province of Colombia. Cerrejón is an equal partnership joint COVID-19 pandemic and focus on higher-quality products due to Directors’ Report
venture with Anglo American and Glencore. Cerrejón has lease market adjustment. Cerrejón reduced its operational costs by
agreements for several mining areas and owns integrated rail and 15 per cent, which allowed it to remain cash flow neutral in spite
port facilities. Coal product is marketed through an independent of the decline in coal price.
company and is exported mainly to European, North American and Cerrejón supported the local community of La Guajira during the
South American customers; a minor proportion is exported to Asia. COVID-19 emergency by providing drinking water, food parcels and
Cerrejón makes an important contribution to the Colombian medical equipment, including the donation of a laboratory to carry
economy and to the region of La Guajira, employing local people, out COVID-19 molecular testing in the community. Cerrejón
contributing through taxes and royalties and investing in social and continues to engage with communities and ensure its stakeholders
environmental initiatives. Cerrejón is also working with local are informed about the protocols and controls they have in place
Indigenous groups to address concerns raised by them in relation to keep the workforce and communities safe.
to the impacts of Cerrejón’s operations on their communities. Financial Statements
Looking ahead
Cerrejón is focused on stability of throughput with current
installed capacity, targeting higher calorific value coal and market
diversification. Production is expected to be approximately 7 Mt
in FY2021. Additional information

BHP Annual Report 2020 89 Shareholder information