Can you give us updates from BHP in Brazil since 2023?

BHP Brasil has maintained a strong focus on the reparation and compensation process following Samarco’s Fundão tailings dam failure in 2015. More than R$37 billion has been allocated towards financial compensation and reparation activities, and around half of this amount has gone directly to over 430,000 impacted individuals. The reparation efforts are vast and complex but progressing well. For example, the resettlements of Novo Bento Rodrigues and Paracatu are now in their final stages, with over 90% of the cases completed and more than 260 families living in their new homes, with water treatment stations, a health centre, a church, a football field.

Since December 2019, the impacted riverbanks and floodplains have been vegetated, river margins stabilised and in general, water quality and sediment qualities have returned to historic levels.  On the operational side, Samarco has safely ramped up to 30% of its original production capacity. Samarco is in project execution to increase production capacity to 60% by early 2025. 

How does Brazil fit into BHP's global strategy?

In Brazil, Samarco produces high-quality iron ore pellets used for low-carbon steelmaking, which fits well with the global transition toward a low-carbon economy and is becoming more important as industries adopt greener technologies. Another major focus for BHP in Brazil is potash. We are developing the Jansen project in Canada, expected to be one of the largest potash mines in the world, critical for addressing the planet's growing food security needs. Brazil is projected to be one of our top three markets for potash due to its significant agricultural industry and reliance on fertilizers.

Can you discuss BHP's sustainability and ESG philosophy?

Sustainability is integral to BHP's business strategy and long-term vision globally and in Brazil. Our Environmental, Social, and Governance (ESG) commitments are embedded in every facet of our operations. For example, social value goals are not just buzzwords; they are integrated into our capital allocation and decision-making processes. From a diversity and inclusion standpoint, BHP has made impressive strides in gender equality. Currently, 43% of employees and 40% of leaders in the Americas are women. This shift is crucial not just because it is the right thing to do, but because we know that diverse and inclusive teams perform better, make better decisions, and have better safety outcomes.

We are committed to reducing operational greenhouse gas emissions (GHG) by 30% by FY2030 compared to FY2020 levels and achieving net-zero emissions by 2050. In FY2024, BHP reduced operational emissions by 32% since FY2020 baseline, primarily by increasing the use of renewable electricity. As a recent example, our BMA coal operations in Queensland, Australia, has just signed an agreement to be 100% powered by renewable energy by FY2027. Decarbonization is central to our strategy. Mining plays a crucial role in enabling the transition to cleaner energy. For example, copper is essential for wind turbines, solar panels, and electrical grids; nickel is essential for batteries in electric vehicles (EVs); and iron ore is needed for constructing new, sustainable infrastructure. Potash will be critical for sustainable agriculture and feeding the world's growing population.

What are the priorities for BHP in Brazil and globally for the next year?

Our top priority in Brazil remains ensuring the full and fair reparation of those affected by the Samarco dam failure. This involves supporting the Renova Foundation to complete the resettlements, compensate individuals, as well as continue implementing long-term environmental monitoring and compensatory initiatives such as sanitation projects to further improve water quality in the Rio Doce. At the same time, we are committed to supporting Samarco to safely and sustainably ramp up operations. Globally, our focus is on potash development, particularly the Jansen project in Canada. This project is now 52% complete for its first phase, with the second phase being developed in parallel. Once fully operational by 2026/2027, the Jansen mine will become one of the world's largest potash producers. With its massive agricultural sector, Brazil is expected to be one of the top three consumers of our potash products, playing a crucial role in global food security. BHP will continue advancing its goals related to decarbonization, sustainable mining practices, and achieving net-zero emissions.