27 August 2024
A review of BHP’s Opportunities Agreements with the First Nations communities surrounding our Jansen potash project in Saskatchewan, Canada has been the catalyst for a significant refocus on setting accountable performance indicators critical for achievement of outcomes and supporting opportunities for cultural transformation.
These Opportunities Agreements are designed to enhance our mutual capacity and provide an avenue to build local employment, business opportunities and the skills and capabilities of Indigenous peoples. The first of these innovative agreements for BHP was developed in 2012. As of March 2024, BHP has Opportunities Agreements in place with the six First Nations surrounding the Jansen site.1
Our approach to the development of these agreements has been based on a foundation of open engagement with First Nations communities. Despite this desire for transparency, challenges have emerged, particularly during early construction of the Jansen site. One key challenge has been a lack of meaningful employment and business opportunities for First Nations peoples and businesses. BHP’s five-year review of the Opportunities Agreements (2019–2020) concluded that a more robust mechanism to establish accountability and track the achievement of successful outcomes was needed to ensure successful implementation in the future.
The review led to a re-alignment of the priorities focused on within the Opportunities Agreements between BHP and First Nations partners, which included several beneficial outcomes, such as:
- A commitment to tangible targets and proactive development
- BHP proactively implemented transparent performance metrics (Key Performance Indicators) and a commitment to year-on-year increases in Indigenous contracting opportunities, which were key to re-establishing trust between all parties involved.
- Financial success as evidence of performance
- As of March 2023, we have awarded three new contracts in partnership with local First Nations communities.
- Since sanctioning Jansen Stage 1 in August 2021, a total of CAD$850 million in contracts have been awarded to Indigenous businesses in the region.
The Jansen potash project highlights the significance of Opportunities Agreements, serving as a reminder of the need to deliver on our undertakings to First Nations partners. Our re-focus on supporting opportunities for cultural transformation and a proactive emphasis on performance indicators has led to positive progress in the number of Indigenous employees represented in our Canadian workforce, and reinforced the importance of clear accountability and responsibility.
The process of co-creating these Opportunities Agreements coupled with learnings from previous agreements and our five year review, has helped to create opportunities to contribute social value, and enhanced capacity-building for BHP internally and with First Nations partners. Another advantage for BHP is the reduction of investment risks through transparency and a commitment to build shared understanding between the company and First Nations communities and other community partners and stakeholders.
As our Jansen potash project progresses into its operational phase, with first production expected in late 2026, these Opportunities Agreements will play a crucial role in improving and safeguarding the mutual value of these relationships into the future.
1 Including, for example, the Kawacatoose, Day Star, Muskowekwan, Beardy's, Okemasis, and Fishing Lake First Nations groups.
Image: Simon Thomas, Vice President Projects, with five of the First Nation Chiefs of the Jansen Opportunities Agreements
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