wetlands

Shared water challenges

Working together on water challenges in the regions where we operate.

BHP released its Water Stewardship Position Statement in FY2019, which outlines our vision for a water secure world by 2030, an aim consistent with the United Nations Sustainable Development Goals.

 

In our Position Statement, we commit to set public, context-based business level targets that aim to improve our management of water and support shared approaches to water management within the regions where we operate. This approach is designed to ensure local water resources are conserved and resilient so they can continue to support healthy ecosystems, maintain cultural and spiritual values and sustain economic activity.

A key step in this commitment is to complete a Water Resource Situational Analysis (WRSA) in relation to each of our operated assets to understand the water challenges within our regions. These WRSAs, alongside internal catchment risk assessments, inform our context-based water targets (CBWTs). For more information on how BHP has engaged Indigenous peoples regarding Water, please refer to our Water Resource Situational Analysis webpage.

What is a Water Resource Situational Analysis (WRSA)? 

A Water Resource Situational Analysis (WRSA) is a holistic assessment and summary of the sustainability, governance, and social, cultural, spiritual, environmental and economic values of water (fresh or marine) within a defined catchment area.

Read more

Catchment risks

Each of our operated assets has identified and assessed risks (threats and opportunities) within the catchments where we operate.

Water is a ‘blue thread’ connecting our operations to the people and environments around them. We have assessed risks that could arise from our water-related interactions and use this information to improve our management. For example, this information may lead us to improve our understanding of hydrogeology or stakeholder values within a catchment, or to change our water management practices addressing a potential environmental impact. This understanding has also been used to inform the setting of our CBWTs.

For more information on the water-related risks our operated assets manage refer to the Water Webpage. For information on BHP’s Risk Framework refer to the BHP Annual Report 2024 Operating and Financial Review, 8 – How we manage risk.

Water webpage

Context-Based Water Targets

Targets that aim to address the shared challenges and opportunities within the catchments where we operate.

Context-based water targets aim to help address the water challenges shared by BHP and other stakeholders in the regions where we operate. These targets are based on what we heard from others and our own assessment of water-related threats and opportunities. 

Our targets include actions to address our own operational water performance and actions that are intended for the collective benefit of stakeholders and Indigenous peoples in the region. 

While targets are ideally measurable, this is not always practicable owing to the variable nature of these challenges. Sometimes we have to build knowledge and a shared understanding before we can set quantitative targets. This is particularly true when the actions are for the collective benefit of others or for complex water-dependent ecosystems.

Preferred practice for water targets and nature targets more broadly, is changing as the global community builds understanding on how to set meaningful and effective corporate targets and the practical steps needed to get there.  BHP has moved from a global, singular water target to targets that consider local context and stakeholder priorities. We are proud of the water targets we present here, but also expect our methods and metrics will evolve further as the scientific and corporate sustainability global community test and evaluate better ways to set targets that drive performance.

For more information on our approach to context-based water targets refer to the White Paper we prepared to share our experience to date.

 
Read the white paper

We have developed CBWTs for our operating assets presented below that will apply until FY2030. Progress on the CBWTs and milestones are described on our main Water webpage.

  • BMA
  • Escondida and Pampa Norte
  • Nickel West
  • Olympic Dam
  • WAIO

Context

The Water Resources Situational Analysis (WRSA) for the Central Queensland region describes the hydrological setting for the region, and the shared water challenges and opportunities recognised by people of the region.

The water-related activities and risks for BMA are summarised on the BHP website.

Targets

1 Some water allocations at BMA are not made available for sale ‘in year’ and are retained for strategic contingency purposes as ‘carry over’. Unutilised ‘carry over’ is subject to ongoing assessment throughout the year as to what can be made available. At 30 June, any unused ‘carry over’ amounts are incorporated into the following financial years ‘in year’ water for the total river scheme’s announced allocations by the Resource Operator.

Why these targets

BMA operates five metallurgical coal mines in the Fitzroy Basin in the Central Queensland region. The Fitzroy Basin is the second largest seaward draining basin in Australia. The river flows through the lands of 17 Indigenous groups, supports major agricultural and mineral activity and flows into the southern Great Barrier Reef lagoon. The Fitzroy Partnership for River Health, which brings together government, industry, and research representatives, provides an important platform for shared understanding (including via an annual ecosystem health report card) and collaboration.

The WRSA recognised the lack of water for economic and social wellbeing and the need to support ecosystems as a key challenge shared by stakeholders in the region.  We will implement initiatives to our water distribution and coal processing facilities so that we can make more use of mine-affected water, reduce our take of regional water supplies, and improve our water efficiency. This will mean we use less water for each tonne of product produced. As our water supply is dependent on rainfall, significantly less rainfall than median conditions may impact our ability to reduce operational water sourced from water allocations.

The internal improvement measures will allow us to return some of our allocated water each year so that others in the region can use it, supporting our commitment to improve access to water.

Progress on target implementation

BMA’s FY2024 short-term milestone was achieved. 3.05GL of water allocations was traded on the temporary water trading market in FY2024.

Context

The Water Resource Situational Analyses (WRSAs) for the High Andes of the Tarapaca and Antofagasta region and the coastal zones of Bahia de Mejillones and Bahia San Jorge, all in northern Chile, describe the hydrological setting for these regions, and the shared water challenges and opportunities recognised by people of the region.

The water-related activities and risks for Escondida and Pampa Norte are summarised on the BHP website.

Targets

 

Why these targets

Escondida and Pampa Norte (which includes the Spence and Cerro Colorado mines) have three copper mines in the arid Andes of northern Chile, and ports and desalination facilities in the coastal zone that lies west of the mines.    

We aim to remove our operational reliance on groundwater from arid areas and support the recovery of wetlands impacted by groundwater withdrawal. Since 2015, we have reduced and ultimately ceased our withdrawal of groundwater for operational use by Escondida, and it is now supplied by desalinated ocean water that is generated using renewable energy. Cerro Colorado closed temporarily in FY2024 and alternatives to reopen will be evaluated through a new project, which will not consider the use of groundwater as an operational water source. Spence will replace water supplied from groundwater with water from coastal desalination by FY2028. Achieving Target 1 will complete our transition away from terrestrial water use in water scarce areas of Chile. 

The use of desalinated ocean water is growing in northern Chile and there are now more than 20 major desalination plants along this coastline. Desalination facilities are not known to have broad regional effects but the cumulative effects of this rapid growth on marine ecosystems are not yet clear. Target 2 will minimise BHP’s use of marine water and contribution to the cumulative effects.     

Both WRSAs identified that the environmental threats and resilience of the high Andes and coastal marine regions need to be understood better. We will continue to research the water and ecosystems in these regions and will share our knowledge on these and the effectiveness of management methods where it may contribute to the health of these natural systems.

Progress on target implementation

Pampa Norte’s FY2024 short-term milestone was achieved. Extraction for operational use at Cerro Colorado ceased in December 2023.

Context

The Northern Goldfields Water Resources Situational Analysis (WRSA) describes the hydrological setting for the region, and the shared water challenges and opportunities recognised by people of the region.

The water-related activities and risks for Nickel West are summarised on the BHP website.

Targets

Why these targets

Nickel West operates two nickel mines in the Northern Goldfields region of Western Australia. The region is semi-arid and characterised by low vegetation and extensive salt lakes. Some 11.5 per cent of the permanent population are Indigenous Peoples who maintain strong cultural connections to the waters of their country. Mining is the main industry in this area.

The WRSA identified water resource sustainability and the appropriate use of the variable water qualities in the Northern Goldfields as key shared challenges. The WRSA also recognised that a framework for Indigenous people, industry, government and other stakeholders to co-manage water resources was a key step to address the future challenges. This framing informed the selection of the current target, with BHP working with regional stakeholders to build the knowledge base of water resources. 

Since the release of the Western Australia CBWT and associated milestones, local native title holders are now leading the process to establish Northern Goldfields catchment regional water working groups. On 11 July 2024, BHP announced that Nickel West would be temporarily suspended from October 2024.

Given this, the current CBWT and our commitment to develop a target associated with ‘action to improve BHP's water performance’, are planned to be reviewed in FY2025. Until the temporary suspension comes into effect, we will continue to prioritise water efficiency and the use of poorer quality water within our existing operations.

Progress on target implementation

Nickel West’s FY2024 short-term milestone has not yet been achieved. Northern Goldfields catchment regional water working groups are being established by local native title holders. Nickel West actively collaborated in this process throughout FY2024.

Context

The Water Resources Situational Analysis (WRSA) for the Central and Northern Arid Lands of South Australia describes the hydrological setting for the region, and the shared water challenges and opportunities recognised by people of the region.

The water-related activities and risks for Olympic Dam are summarised on the BHP website.

Targets

Why these targets

Olympic Dam operates a copper mine and processing facility in the Arid Lands region of South Australia. The only permanent waters in the Arid Lands are groundwater from the Great Artesian Basin aquifer (GAB) and the mound springs (named for mineral deposits around their mounts) formed by seeping groundwater.  Broad lakes also form temporarily after occasional large rainfall events. Several Indigenous groups maintain their enduring connection to the lands and waters of the region. Pastoralism, mining, and petroleum extraction are the main industries.

The WRSA found that a key shared challenge was impacts to the ecosystems and cultural values of the mound springs caused by extraction from the GAB. The achievement of Target 1 will reduce the draw of water from the borefield (Wellfield A), which has the most effect on the flow from the mound springs, while we partner with the South Australian Government on the Northern Water Supply Project to cease drawing from Wellfield A altogether.

Target 2 states that we will contribute to the understanding and direct protection of the mound spring ecosystems in our own landholdings and more broadly. Helping others with these key activities is an important opportunity for collective action recognised in the WRSA.

BHP plans to review the suitability of the existing Olympic Dam WRSA and CBWTs, following the creation of the Copper South Australia asset, inclusive of Olympic Dam, Carrapateena and Prominent Hill.

Progress on target implementation

Olympic Dam’s FY2024 short-term milestone was achieved. Daily abstraction from Wellfield A remained below 5ML/d throughout FY2024.

Context

The Pilbara Water Resources Situational Analysis (WRSA) describes the hydrological setting for the Pilbara region, and the shared water challenges and opportunities recognised by people of the region.

The water-related activities and risks for WAIO are summarised on the BHP website.

Targets

Why these targets

WAIO operates three iron ore mining hubs, a rail system and a port in the Pilbara region of Western Australia. Wherever WAIO operates in the Pilbara, it does so on the traditional lands and waters of Indigenous peoples. The Pilbara has seen considerable growth in resource development activity, which includes a large increase in groundwater extraction for mine dewatering – a key challenge identified by the Pilbara WRSA. BHP will aim to minimise our effect on the groundwater resource by prioritising at least half of WAIO surplus water to be used beneficially, for example, by returning it to nearby groundwater aquifers. This will involve the building and operation of large water distribution networks and Managed Aquifer Recharge borefields, subject to required external approvals.

The Pilbara WRSA also revealed that stakeholders recognise shared access to the data held across many water-involved organisations in the Pilbara is a vital step for sustainable water resource management. We will work with interested groups to develop a data sharing platform that all can use.

Progress on target implementation

WAIO’s FY2024 short-term milestone was achieved, following the initiation of a collaborative scoping study for a regional water data sharing solution. BHP funding has been committed to support shared environmental analytics incorporating a catchment scale integrated groundwater database in the Pilbara.

Footnotes

All targets and milestones refer to the end of the quoted year.   

FY refers to the Australian financial year, which runs from 1 July to 30 June. 

All baselines are subject to adjustment for any material acquisitions and divestments, and to reflect progressive refinement of relevant methodologies, for example in water reporting. 

Surplus water is groundwater abstraction to allow mining below the water table that is surplus to operational water use requirements. 

Beneficial use is water used in ways that contribute to environmental resilience, social benefit or economic growth.  For example, water returned into aquifers to reduce pressure on regional groundwater resources; or transfer of surplus water to another operational use to avoid or reduce the need for additional natural water resources. 

Threatened ecological communities are those nationally listed threatened ecological communities determined by the process under the Australian Commonwealth Environment Protection and Biodiversity Conservation Act 1999.  

CBWTs will be developed for New South Wales Energy Coal and Legacy Assets in future. 

Sustainability case studies, organisational boundary, definitions and disclaimers, and downloads

Prior year versions of some of the listed documents are available on the Past reports page.