On November 1 2016, BHP created the Non-Operated Joint Ventures (NOJV) Asset within Minerals Americas. The purpose of the NOJV Asset is to maximize shareholder value by establishing effective engagement with our Joint Venture partners and companies in line with Our Charter.
The NOJV are independently managed and have their own governance framework, as defined in each NOJV agreement. While BHP has the right to manage its interest in each NOJV, we do not control the decision making of operation, which is made by their own management. As a shareholder and within the corresponding governance framework, BHP has governance responsibilities and the opportunity to participate in strategic decisions.
Therefore the way we work and manage these assets is very different from our operated BHP operations. In the NOJV asset we need to:
- understand the full potential for each Joint Venture and determine how we can effectively engage to achieve it;
- recognise that we do not make management decisions but rather work to earn the right to influence the operation management and work effectively with shareholder partners, to achieve full potential;
- have transparency over JV company's risks and opportunities, in an active feedback process, whilst maintaining the JV company's management independence;
- facilitate the sharing and adoption of good practices;
- provide confidence to BHP leadership that our portfolio of NOJVs is working on the right controls and plans that deliver shareholder value,
The asset has committed to focusing on key aspects including:
- Accountability and Structure: A single point of accountability with responsibility for all non-operated joint ventures in Minerals Americas (Antamina, Resolution, Cerrejón and Samarco);
- People: We will resource our teams to reflect the risk and opportunity at each joint venture, whilst ensuring appropriate technical and cultural expertise proximate to the operation. Specific roles within the global functional structures will be assigned to support our portfolio;
- Risk Management and Processes: A process will be implemented to verify the material equivalence of risk management practices; and
- Governance: work with shareholder partners to ensure governance processes are robust and working effectively.
The portfolio of joint ventures includes Antamina (copper mine in Peru), Cerrejon (coal mine in Colombia), Nimba (iron ore project in Guinea), Resolution (copper project in United States of America), Samarco (iron ore mine in Brazil) as well as the Renova Foundation (designed to remediate damages caused by the Fundao Dam breach in Brazil).
We partner with Anglo American, Glencore, Mitsubishi, Newmont, Rio Tinto, Teck and Vale.