BHP shelved ‘urgent’ Pilbara climate plans: reports

BHP (ASX: BHP) is said to have delayed billions of dollars in Pilbara decarbonization projects despite internally warning that slow emissions cuts could damage its reputation and undermine its “licence to operate,” leaked company documents show.

Hundreds of internal records obtained by the Australian Broadcasting Corporation (ABC) and The Guardian Australia indicate the world’s largest miner paused renewable energy and electrification plans in Western Australia even as executives publicly promoted BHP as a climate leader. 

The documents centre on the company’s Pilbara iron ore business, which generated $14.4 billion in pre-tax profit last fiscal year and accounts for more than one-third of BHP’s Australian emissions.

“Urgent decarbonization, in line with BHP’s public commitments, effectively underpins [the company’s] licence to operate, sustain and grow,” a 2023 document signed by BHP Australia president Geraldine Slattery said. The same memo warned that “slow emissions reduction progress” in the Pilbara carried “reputational impacts.”

Cash priorities

The leaks reveal BHP halted a board-approved $400-million solar-and-battery project at its Jimblebar iron ore mine shortly after approval in 2023, citing “cash prioritization requirements.” A larger $1.3-billion renewable energy proposal — including solar, wind and battery infrastructure intended to support electric haul trucks and trains — was later shelved in its existing form, with funding documents showing no major spending planned before 2031.

At the same time, BHP purchased 62 new diesel trucks for Jimblebar after prices fell sharply, locking in fossil fuel use at the operation until at least the late 2030s and potentially 2041, the documents show.

MINING.COM reached out to BHP for comment but did not receive a response by publication time.

The company has said it remains committed to net zero emissions by 2050, but critics say delaying electrification in the Pilbara weakens the credibility of that target and complicates Australia’s broader emissions goals. 

Rival Fortescue (ASX: FMG) continues pursuing aggressive electrification and renewable energy plans in the region, despite industry scepticism about timelines and technology readiness.