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How we engage with our partners at non-operated joint ventures

BHP holds interests in companies and joint ventures that we do not operate. We engage with our joint venture partners around sustainable development through formal governance structures and technical exchanges.

Non-operated petroleum joint ventures

In our current non-operated petroleum joint ventures, we have processes in place to identify and manage risks within the rights afforded by the respective joint operating agreements. This includes (as permitted by the relevant operator and/or joint venture arrangements) verification of risk control strategies through field visits, review and analysis of the operator’s performance data, participation in operator audits and sharing of BHP risk management strategies and processes.

Non-operated minerals joint ventures

Our non-operated minerals joint ventures include Antamina (33.75 per cent), Cerrejón (33.33 per cent), Resolution (45 per cent) and Samarco (50 per cent).

Following a review of governance at our non-operated minerals joint ventures (NOJV), we have focused on the following actions.

Risk management and processes: a global standard has been developed that defines the requirements applicable to all of our NOJVs. These minimum requirements are consistent with BHP’s standards for our operated assets, and establish a framework for identification and management of NOJV risks, including identification of governance risks. We are working closely with our NOJV partners to establish priority areas, communication strategies and work plans in line with this global standard.

Accountability and structure: the management of all of our NOJVs has been centralised in our Minerals Americas asset group. We have created a NOJV leadership team and supporting team, who are a single point of accountability with responsibility for all NOJVs.

People: we have added to the capabilities of our teams to manage the risk and opportunities at each NOJV. Further resources have been allocated to provide functional support, and for projects, governance, and planning. This dedicated NOJV team of subject matter experts provide support to the NOJVs, enabling strong management of risk and performance and contributing to discussions on governance improvement and value generation opportunities.

Our focus for FY2018 is on our governance processes for NOJVs, including:

  • reviewing the effectiveness of risk management processes to drive improvements and share good practices;
  • further development and implementation of specific standards for NOJVs, based on best-practice governance benchmarking;
  • improving governance and assurance processes across the NOJVs.

Risk management and processes: we have developed a global standard, which defines the requirements for managing BHP’s interest in our NOJVs. These minimum requirements include a framework for identification and management of risks to BHP from NOJVs, which is consistent with the risk management framework for identifying and managing risks across BHP.  The global standard covers matters such as audits and input on succession planning for NOJV leadership positions.  We are working closely with our NOJV partners  with a view to establishing priority areas, communication strategies and work plans in line with this global standard.

Accountability and structure: the oversight of all our NOJVs has been centralised in our Minerals Americas asset group. We have created a NOJV leadership team and supporting team, who are a single point of accountability with responsibility for all NOJVs.

People: we have added to the capabilities of our teams to oversee the risks and opportunities at each NOJV. Further resources have been allocated to provide functional support, and for projects, governance and planning. This dedicated NOJV team of subject matter experts provides support to the NOJVs. These experts also contribute to discussions on governance improvement and value generation opportunities.

Our focus for FY2018 is on our governance processes for our NOJVs, including further development and implementation of specific standards for how BHP interacts with our NOJVs, based on best-practice governance benchmarking, and working with our NOJV partners to improve governance and assurance processes.

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