How digital and technology is transforming how we work

Summary

• Technology is already making BHP safer, smarter and more productive, delivering significant financial value through AI, automation and data-led decision-making.
• BHP develops practical solutions with its assets and operations, giving frontline teams ownership and enabling successful technology to be improved and scaled globally.
• The next opportunity is to move beyond individual applications to integrated, pit-to-port systems, unlocking greater safety, productivity, efficiency and value across the enterprise.

Technology and digital implementation is already generating significant value at BHP. By the end of FY2026, technology initiatives were delivering incremental EBITDA at an annual run rate of almost US$500 million. We aim to increase that to beyond US$650 million by the end of FY2027.

In this first instalment of a three-part series, BHP Digital Officer Mikko Tepponen discusses our digital strategy and what we have achieved to date. Many of our solutions have been ‘single point’ applications – the first wave of value creation. In future instalments we will investigate how we can achieve a step change in safety, performance and value creation as we mature our technology program from ‘single point’ applications to optimising the enterprise system.

How digital and technology is transforming how we work

We have a once-in-a-generation opportunity to transform BHP through strategic technology deployment. We are determined to take it.

The strategic deployment of technology can make us safer. It can improve the speed and accuracy of our decision-making. It can accelerate productivity and process efficiencies. It can shorten innovation cycles and catalyse cultural change. It can help us locate more of the resources needed for the future.

Put simply, it can make BHP an even better business, enabling us to unlock more of the resources the world needs – more safely, productively and sustainably.

BHP’s ‘all of company’ digital strategy

We implemented our digital strategy at the end of FY2025 with a clear and direct purpose: to transform BHP through digital solutions – drive our performance forward with momentum – and create a safer, smarter, and more sustainable future.

Our strategy aims to:

• Support the reduction of High Potential Incidents.
• Integrate data, AI and automation into day‑to‑day decisions to improve performance and reduce our unit costs.
• Rapidly identify, build and scale modern technology solutions, in partnership with people working on the frontline.
• Transform our culture by driving pace and adaptability, making digital tools and capabilities easier for everyone across BHP to access and use.

We already know that technology targeting our highest safety risks supports our goal to eliminate fatalities and harm to people. AI-led predictive and prescriptive maintenance will improve reliability and cost. And by optimising production across the value chain, we will continue to deliver high-quality products to our customers.

We deliver our digital strategy in partnership with our assets and operations, creating practical, fit-for-purpose solutions. This gives people ownership of the technology and enables them to continuously improve and scale each solution at the operation’s frontline.

The numbers speak for themselves

In our FY2026 financial results, technology initiatives delivered around US$150 million in EBITDA.

Excitingly, by the end of the year, the program was delivering incremental EBITDA at an annual run rate of almost $500 million. We are projecting this to grow to over US$650 million by the end of FY2027.

 

Where will it come from?

More definitive resource characterisation through the use of AI.

Better haulage cycles through greater autonomous truck usage.

Better regulation of feedstock consistency and throughput in the crushing and screening part of the mining process.

Improved copper recoveries through advances in extraction technology.

Improved efficiency from better rail technology to reduce queuing and stoppages during ore transportation.

Reliability improvements and cost savings from AI-led predictive and preventative maintenance applications across our mining operations.

We see enormous opportunity

Many of our technology gains to date have been from ‘single point’ applications, essentially the first wave of value creation. We are scaling these initiatives across our global operations to capture more value.

Applying technology to integrate the entire supply chain – from pit to port – means we will be able to optimise the whole system more dynamically. That will liberate more productive hours, which means more production, leading to lower cost.

Let me give you a few examples of what we have achieved so far.

Using AI to remove oversized rocks from ore processing

Oversized rocks can cause significant damage to critical equipment when we are processing ore. By identifying these rocks early and removing them, we can prevent damage before it occurs and reduce equipment downtime.

We have cameras mounted on diggers at our iron ore operations in the Pilbara to continuously capture images of material being loaded into trucks. The images are analysed using AI models trained to identify oversized rocks, with operators receiving real-time alerts when potential issues are detected.

We use this same system on conveyor belts in the Pilbara to automatically detect rocks larger than 200mm before they cause damage. When an oversized rock is detected, the conveyor belt stops automatically, and controllers coordinate with site teams to safely remove the material.

We have seen a reduction in crusher events, improved ore throughput, reduced equipment downtime and lower maintenance requirements since these monitoring systems have been introduced, driving value to our bottom-line. By reducing the need for manual intervention, we’ve also greatly improved people’s safety.

Improving efficiencies in our equipment movement

At our Port Hedland facilities in WA, stackers and reclaimers move and manage ore before it is loaded onto ships. These are massive machines and every movement matters.

Previously, when these machines needed to reposition, they followed a set sequence. One move had to finish before the next began.

With the introduction of smart relocation technology, our teams have improved how these sequences work. Some equipment movements can now happen at the same time. Edge detection systems have been introduced on the equipment to avoid collisions. Safety remains paramount but the equipment is moving more efficiently.

The impact? We’ve removed waiting time so our equipment can spend more time doing what it was built to do, resulting in better ore throughput and introducing significant value to BHP.