| Date | Subject |
|---|
18/2/2021
13:22 | grupo guitarlumber: Rio Tinto confirms $9bn dividend in a week of bumper returns for mining shareholders
MiningMajor Commodities
By Andrew Fawthrop 17 Feb 2021
Rio Tinto, BHP and Glencore have each confirmed big dividends this week, as mining companies benefited from a price surge for major commodities in 2020
Rio Tinto Pilbara Cape Lambert iron ore
Iron ore at Rio Tinto's Cape Lambert operation in Pilbara, Western Australia (Credit: Rio Tinto)
Rio Tinto has confirmed its largest-ever annual payout to shareholders, in a week when rivals BHP and Glencore also upped their own dividends in response to solid returns across the mining industry in 2020.
In total, the Anglo-Australian miner issued payments of $9bn for the full year, equivalent to 557 cents per share and 72% of its underlying earnings for the 12-month period. It includes a $5bn final ordinary dividend and a $1.5bn special dividend announced today (17 February).
Rio benefited from a surge in prices for iron ore – its biggest commodity focus – during the year, buoyed by strong demand for the steelmaking ingredient in China as the country emerged first from the depths of the coronavirus downturn.
Its underlying earnings from iron ore increased by 18% year-on-year to $11.4bn – accounting for more than 90% of total earnings from all product segments.
“Safe and well-run operations, together with world-class assets, great people, capital discipline and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders,” said chief executive Jakob Stausholm.
BHP and Glencore further boost 2020 mining dividends
Yesterday, rival BHP issued a $5.1bn dividend alongside its half-year results on the back of strong earnings driven by the price surge for iron ore and copper. Analysts suggest an even bigger windfall could be on the cards later in the year when the firm posts its full-year update, assuming commodity markets maintain strong performance.
“Our outlook for global economic growth and commodity demand remains positive, with policymakers in key economies signalling a durable commitment to growth and signalling ambitions to tackle climate change,” said BHP chief executive Mike Henry.
“These factors, combined with population growth and rising living standards, are expected to drive continuing growth in demand for energy, metals and fertilisers.”
Glencore resumed its dividend with a $1.6bn payment, having paused shareholder returns in August amid uncertainty surrounding the pandemic.
For the Swiss mining giant, 2020 was the last of its dividends to be paid out under the tenure of long-standing chief executive Ivan Glasenberg as he prepares to leave his role at the head of Glencore. The South African industry veteran retains a roughly 9% ownership interest in the company, however.
While the impact of the pandemic caused huge disruption to global industry and commodity markets last year, diversified mining companies have been boosted by growing demand for some of their core products, like iron ore and copper, as major economies prepare to build their way out of the economic downturn with large infrastructure projects.
Some analysts and financial planners, including at JP Morgan Chase, have suggested a new commodity “supercycle221; may getting underway, with crude oil also enjoying a price resurgence after a dire 12 months amid record demand loss for petroleum fuels.
“Lower interest rates and high levels of government spending should both stimulate economic activity and increase demand for commodities,” noted analysts at Hargreaves Lansdowne. “Meanwhile years of financial restraint post 2015/16 mean miners haven’t necessarily spent as much as they might have on new mines.
“That combination of increased demand and lower investment in new supply could be explosive for commodity prices, and excellent news for miner’s profits.
“Ultimately, it’s difficult if not impossible to say with any degree of certainty which direction commodities will take. However, we certainly see an argument for miners being on track for better times ahead.”
A difficult year for Rio Tinto, despite financial gains
Rio Tinto reported underlying earnings of $12.4bn for 2020, up 20% year-on-year, with consolidated revenues up 3% to $44.6bn and net debt falling from $3.65bn to $664m.
Yet despite the strong financial performance, it was also a damaging year for the company, which suffered a big reputational blow when it destroyed the Juukan Gorge aboriginal heritage site in Pilbara, Western Australia during a mine expansion in May.
The incident prompted a parliamentary inquiry and ultimately cost former chief executive Jean-Sébastien Jacques his job, along with two other senior executives.
Newly-appointed Rio Tinto CEO Jakob Stausholm said: “It has been an extraordinary year – our successful response to the Covid-19 pandemic and strong safety performance were overshadowed by the tragic events at the Juukan Gorge, which should never have happened.”
The mining company recently reshuffled its executive structure under the new boss, with a primary aim of rebuilding trust with project stakeholders following the episode.
Scope 3 emissions on the agenda
In today’s update, Rio outlined new targets for addressing its Scope 3 emissions – those caused by the end use of the products it sells, and the hardest to abate.
It said it plans to achieve net-zero emissions from the shipping of its goods by 2050, and align with the International Maritime Organisation (IMO) goal of a 40% reduction in shipping intensity by 2030.
Rio also plans to work with partners in the steelmaking sector on pathways to decarbonise the manufacturing process and invest in technologies that can advance this process.
Glencore recently set its own targets for tackling Scope 3 emissions, as part of a broader push to eliminate the entirety of its carbon footprint by 2050. It confirmed in its financial update yesterday that this climate strategy will be put to shareholders for an advisory vote at its forthcoming annual general meeting in April.
Carlota Garcia-Manas, senior responsible investment analyst at Royal London Asset Management (RLAM), welcomed this move, saying it “constitutes another big step in the transformation of this company and reinforces the value of shareholder engagements”. She added: “Glencore is one of a few companies leading the way” on climate action.
|
03/2/2021
14:35 | gibbs1: nsenergy
BHP signs renewable power purchase agreement to reduce emissions from nickel refinery
MiningPowerNickel
By James Murray 02 Feb 2021
The world’s biggest miner said the PPA will supply up to 50% of the electricity needs for its Nickel West Kwinana Refinery's in Western Australia
BHP nickel refinery
The agreement, which will last 10 years, will help BHP reduce emissions from electricity use at the refinery by up to 50% by 2024 (Credit: BHP)
BHP has signed a renewable power purchase agreement (PPA) to reduce emissions from its Nickel West Kwinana Refinery in Western Australia.
The world’s biggest miner said the PPA will supply up to 50% of the refinery’s electricity needs from Risen Energy’s 132-megawatt (MW) Merredin Solar Farm – the largest of its kind in Western Australia.
The agreement, which will last 10 years, will help BHP reduce emissions from electricity use at the refinery by up to 50% by 2024 and effectively displace an estimated 364,000 tonnes of CO2 over the life of the contract.
Nickel refinery PPA is first renewable energy PPA signed by BHP in Western Australia
This is the first renewable energy PPA signed by BHP in Western Australia and follows similar agreements covering its operations in Queensland in 2020 and in Chile in 2019.
BHP Nickel West asset president Eddy Haegel said: “This contract will further increase the sustainability of the nickel produced by Nickel West. It will reduce the refinery’s electricity emissions by 50 per cent, diversify our energy supply, and reduce the refinery’s electricity bill.
“Nickel is a future-facing commodity that is essential to creating the high performing lithium-ion batteries used in battery electric vehicles (BEV). Consequently, the demand for nickel and especially the nickel produced by Nickel West is set to grow dramatically.”
Haegel claims the sustainable production of nickel is also “essential to meet this future demand” as the customers purchasing BEVs “want to know that the inputs to the manufacturing of these vehicles are also sustainable”.
“Nickel West is already one of the most sustainable nickel producers in the world but has committed to significantly reduce CO2 emissions further,” he added.
“This contract, combined with our high-quality nickel deposits, and our integrated value chain further improves our position as one of the lowest carbon nickel miners in the world.”
Renewable PPA to contribute to BHP’s 2030 emissions target
BHP said the PPA will also contribute to its medium-term, science-based target to reduce scope 1 and 2 emissions by 30% by 2030.
The miner made the announcement in September last year following increased pressure on fossil fuel companies to operate in a more sustainable, environmentally-friendly manner.
Reacting to BHP’s PPA agreement with Risen Energy, Bill Johnston, Western Australian minister for mines, petroleum and energy, said: “Congratulations to everyone at BHP Nickel West for taking this important step forward to reduce their operation’s carbon footprint.
“BHP’s Kwinana nickel refinery is a key contributor to Western Australia’s future battery industry and is helping global efforts to decarbonise.
“The McGowan government is supportive of mining and resources companies that embrace clean energy solutions.”
|
20/1/2021
06:39 | grupo guitarlumber: SYDNEY--BHP Group Ltd. said it produced more iron ore but less coal, copper and petroleum in the first half of its fiscal year, as it flagged an impairment charge of between $1.15 billion and $1.25 billion against an Australian coal unit.
BHP, the world's largest mining company by value, also raised its projection for annual iron-ore output following the restart of its Samarco joint venture operations with Vale SA in Brazil, which had been suspended for five years following a deadly waste-dam collapse.
The miner reported iron-ore production of 128.4 million metric tons for the six months through December, up 6% on the same period a year earlier.
The miner said it now expects to produce between 245 million and 255 million tons of iron ore in the year through June, up from an earlier forecast of between 244 million and 253 million tons.
BHP's increased output in the first half was tied to record production at its Jimblebar operation in its Western Australia mining hub, which more than offset weather-related disruptions.
Its first-half production of metallurgical coal, used in steel, totaled 19.2 million tons, down 5% on a year ago. BHP cited plant maintenance work and said it expects stronger volumes in its second fiscal half.
"We continue to monitor for any potential impacts on volumes from restrictions on coal imports into China," BHP said.
BHP downgraded its full-year output projection for energy coal, to 21 million-23 million from 22 million-24 million tons, because of a strike at the Cerrejón mine in Colombia. First-half energy coal output was down 30% year-on-year, at 8.2 million tons.
BHP said the post-tax impairment charge of $1.15 billion-$1.25 billion would be recorded as an exceptional item in relation to New South Wales Energy Coal and associated deferred tax assets.
"This reflects current market conditions for Australian thermal coal, the strengthening Australian dollar, changes to the mine plan and updated assessment of the likelihood of recovering tax losses," BHP said.
Its copper mines produced less because of pandemic-related restrictions at operations in South America, as well as some maintenance, BHP said. Copper output for the half was 841,300 tons, down 5% on a year ago.
Still, BHP said it recorded strong throughput at Escondida, the world's biggest copper mine, and that its Spence copper-mine expansion project reached first production in December.
Petroleum output was meantime down 12% year-on-year at 50.5 million barrels of oil equivalent because of natural field decline and weather disruptions in the Gulf of Mexico.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
January 19, 2021 17:04 ET (22:04 GMT)
|
30/12/2020
15:00 | grupo: letsmakesome
30 Dec '20 - 14:55 - 835 of 836
0 0 0
Just came across this article with is very interesting:
Https://www.afr.com/companies/mining/soaring-bhp-spread-blamed-on-australian-optimism-20200313-p549q1
'30pc more dividend': BHP’s spread with London widens
Peter KerResources reporter
Mar 16, 2020 – 12.00pm
A record premium for BHP's Australian shares compared with the value of the company's London stock is seen by some local investors as proof that Australian investors are more optimistic amid the coronavirus turmoil than their counterparts abroad.
BHP's Australian shares have consistently traded at a premium to its London stock over the past four years, and analysts have traditionally been split over whether the biggest cause is currency gyrations, Australian tax laws around franking or the fact that BHP plays a bigger role in local indices than European ones.
While those factors are constant, none of them explain the surge in the premium paid for BHP's Australian shares last week amid extraordinary market conditions and high trading volumes.
BHP's Australian shares were trading at a premium – calculated by changing both share prices into a common currency such as US dollars – of 16 per cent on December 31.
But that had blown out to 26.6 per cent by the close of trading in London on March 13; a far cry from October 2015 when BHP's London shares traded at a small premium to the Australian stock.
Friday's premium would have been the highest since BHP's dual listed structure was established almost 20 years ago, were it not for the previous day, March 12, when BHP's Australian shares were worth a staggering 41 per cent more than the London stock when trading closed in London.
"(It) points to international investors being significantly more bearish on the global economy and global cyclicals than Australian domestic investors," said Jarrod Bakker from MST Financial.
BHP's London listed shares had lost 40.68 per cent of their value between December 31 and Friday's close. BHP's Australian stock lost 31.35 per cent of their value over the same period.
Equal rights
The blowout in the BHP "spread" was seized on by several hedge funds last week, who urged their clients to exchange their Australian-listed BHP shares for the miner's London stock.
BHP's London and Australian stock have equal rights over the company's assets, with the only difference for investors being local tax laws.
''If you have the luxury of being able to invest globally, very rarely in the past 20 years have you had a better opportunity to set up the spread, or switch your Aussie position into the London line, especially income investors, because you get 30 per cent more dividend for the same dollar investment,'' said one firm in a note to clients.
Rio Tinto also has a dual-listed structure with both Australian and London listed stock, and the premium paid for Rio's Australian shares has expanded from the historically high level of 18 per cent on December 31 to near record levels at 24 per cent on Friday.
The expanded premium for BHP and Rio's Australian stock has come despite the Australian dollar weakening against the British currency this year.
A weakening Australian dollar traditionally weakens the premium paid for BHP and Rio's Australian shares.
"Over the past two decades, the BHP and Rio Tinto spreads have closely followed the sterling to Australian dollar exchange rate. However since September 2019, there has been a notable divergence from the exchange rate," said Shaw and Partners analyst Peter O'Connor.
"BHP should be thinking opportunistically whether this is a good time for a buyback of the London listed stock".
pker@afr.com
|
30/12/2020
14:46 | grupo: The company's shares trade on the following exchanges:[88]
BHP Billiton Limited and BHP Billiton Plc were renamed BHP Group Limited and BHP Group Plc, respectively, on 19 November 2018.[89]
BHP Billiton Limited
Australia (ASX: BHP)
US (NYSE: BHP)
BHP Billiton plc
UK (LSE: BLT)
US (NYSE: BBL)
South Africa (JSE: BIL)
Must admit i would not hasten to give you an explanation although part of the difference might be there being two different companies and a multitude of currences
RDSA and rdsb share are affected in similar ways, tax tratments on dividendends might well be a factor
letsmakesome
30 Dec '20 - 14:17 - 832 of 832
0 0 0
Does anyone know why there is a significant divergence of almost 25% compared to the Australian listing?
AUD 43 (GBP 24.25) vs GBP 19.70 (U.K. listing)
|
20/12/2020
20:18 | adrian j boris: BHP selects DNV GL as Verification Body and Classification Society for Trion FPU
Oil & GasUpstreamDeepwater
By NS Energy Staff Writer 17 Dec 2020
The work also includes several independent analyses from DNV GL to be conducted during the front-end engineering design and detailed design phase of the project
BHP-PR-ill-s1288pxl_tcm8-193697
BHP selects DNV GL as Verification Body and Classification Society for Trion FPU. (Credit: DNV GL.)
DNV GL will verify that the new infrastructure built for the BHP Trion project is compliant with local and global safety, as well as other requirements. The Verification Body and Classification contract specifies DNV GL, the leading independent expert in risk management and quality assurance, to participate in design review activities and site surveillance during construction, commissioning, and installation of the floating production unit (FPU).
DNV GL announced it has been awarded a multidisciplinary contract by BHP Billiton Petróleo Operaciones de México, S. De R.L. De C.V. (BHP) to provide classification, verification, and independent analysis of the Trion FPU. Located approximately 19 miles (35 kilometers) south of the U.S./Mexico border and approximately 112 miles (200 kilometers) from the Mexican coastline, the FPU will be installed in a water depth of approximately 8,200 feet (2,500 meters). BHP holds a 60% interest in the development and PEMEX a 40% interest.
“The Trion oil field development is historic in the Mexican gulf and a milestone for all of us involved,” said Frank Ketelaars, Regional Manager, Americas, DNV GL – Oil & Gas. “It is indeed a recognition of DNV GL for our competence in professionally executing mega projects of this scale internationally. DNV GL is honored to be the Classification Society involved in such a significant project, and we look forward to the growth of our partnership with BHP for years to come.”
The contracted verification scope DNV GL will carry out includes full project compliance to the Mexican offshore regulations, NOMs (Official Mexican) standards and BHP’s safety case requirements. The scope of work also includes several independent analyses from DNV GL to be conducted during the front-end engineering design and detailed design phase of the project.
“I am delighted BHP has recognized that we possess the technical expertise and knowledge, particularly with respect to local regulatory requirements, to assure the safety and compliance for this deepwater project,” concluded Ketelaars. “We have worked with BHP on many different projects around the world and this contract win is a sign of the strength of our relationship with BHP in the Americas.”
Source: Company Press Release
|
01/12/2020
06:51 | the grumpy old men: BHP seals deal with Shell to fuel LNG-powered ship fleet
December 1, 2020 — 4.10pm
Mining giant BHP has awarded Shell a landmark contract to supply fuel for the world's first fleet of liquefied natural gas-powered Newcastlemax bulk carriers as it seeks to lower shipping emissions.
As part of the company's pledge to slash emissions across its supply chain, BHP this year said it would charter five vessels from Eastern Pacific Shipping, powered by liquefied natural gas (LNG) instead of bunker fuel, to carry 10 million tonnes of iron ore a year from Australia to China from 2022.
BHP has awarded Shell a contract to fuel the world's first fleet of LNG-powered bulk carriers.
BHP has awarded Shell a contract to fuel the world's first fleet of LNG-powered bulk carriers.Credit:Robert Peet
Using carriers powered by LNG rather than diesel would eliminate NOx (nitrogen oxide) and SOx (sulphur oxide) emissions, and sharply reduce carbon dioxide emissions, according to the miner.
BHP chief commercial officer Vandita Pant said awarding the contract to Shell marked a significant step in the company's ambitions of reducing the carbon footprint across its shipping supply chain.
"LNG-fuelled vessels are forecast to help BHP reduce carbon dioxide-equivalent emissions by 30 per cent on a per-voyage basis compared to a conventional fuelled voyage between WA and China, and contribute to our 2030 goal to support 40 per cent emissions-intensity reduction of BHP-chartered shipping of our products," Ms Pant said.
BHP 'sets new bar' with carbon cuts targeting steel mills, shippers
The contract, which BHP said was the result of a tender process including several potential LNG suppliers, comes as the resources industry faces pressure from some of the world's biggest investors to expand their carbon-reduction ambitions to take responsibility for emissions caused by the transport and end-use of their resources around the world, known as "Scope 3" emissions. BHP earlier this year became the first major resources company to commit to Scope 3 targets, aiming for a 30 per cent reduction in the emissions intensity of customers like steel mills and power plants that purchase their products, as well as the 40 per cent cut across its chartered shipping.
Shell Energy executive vice-president Steve Hill congratulated BHP on reducing emissions in their maritime supply chain with the world's first LNG-fuelled Newcastlemax bulk carriers.
"Decarbonisation of the shipping industry must begin today and LNG is the cleanest fuel currently available in meaningful volumes," he said.
"This LNG bunkering contract strengthens the bunkering market in the region and we look forward to working with BHP and other customers in the maritime sector on their journey to a net-zero emissions future."
In the shipping industry's biggest overhaul in decades, new emissions standards were introduced this year slashing sulphur levels permitted in maritime fuel. The changes prompted exporters including BHP to seek out cleaner alternatives to heavy fuel known as bunker fuel, which, until now, has been the shipping industry's main fuel source. The United Nations International Maritime Organisation has also set goals to halve carbon dioxide emissions generated by shipping by 2050 compared to 2008 levels.
Mining
BHP Billiton
Nick Toscano
Business reporter for The Age and Sydney Morning Herald.
|
18/8/2020
05:59 | waldron: TOP NEWS: BHP Lowers Dividend As Revenue Falls Short Of Consensus
Tue, 18th Aug 2020 05:15
Alliance News
(Alliance News) - Anglo-Australian mining firm BHP Group PLC said Tuesday it lowered its annual dividend, as profit and revenue declined on lower prices and an increase in the closure of mines and rehabilitation provisions, as a result of Covid-19.
For the year to the end of June, pretax profit dropped by 10% to USD13.51 billion from USD15.05 billion the year before, as revenue declined by 4.3% to USD42.39 billion from USD44.29 billion.
BHP's revenue performance came in short of company-compiled expectations, which stood at USD43.07 billion.
Profit from operations decreased by 11% to USD14.42 billion from USD16.11 billion the prior year, while underlying earnings before interest, taxes, depreciation and amortisation slipped by 5% to USD22.07 billion from USD23.16 billion.
The underlying Ebitda was just ahead of consensus expectations, which had the figure at USD22.01 billion.
BHP said its performance was hurt by lower prices, particularly in coal, copper and petroleum, lower volumes including a decline in copper grades and petroleum fields, and a rise in the closure and rehabilitation provisions for closed mines.
BHP declared an annual dividend of 120 US cents, down 10% from 130 cents the year before, as net debt as at June 30 was USD12.04 billion, up 28% year-on-year from USD9.45 billion.
Looking ahead, BHP said it expects petroleum output for its current financial year to be in the range of 95 million to 102 million barrels of oil equivalent, reflecting a 6% to 13% fall from 109 million barrels of oil equivalent produced for the 2020 financial year.
Copper production is set to be between 1.48 million and 1.65 million tonnes, a 5% to 14% drop from 1.72 million tonnes. Iron ore output is expected to be between 244 million and 253 million tonnes, reflecting a 2% drop to 2% rise from 248 million tonnes produced in the 2020 financial year.
The metallurgical coal forecast is between 40 million and 44 million tonnes, marking a 3% fall to 7% increase from 41 million tonnes. Finally, energy coal is expected to be between 22 million to 24 million tonnes, reflecting a 5% drop to 4% increase from 23 million tonnes.
"BHP delivered a strong set of results for the 2020 financial year that reflect the strength, resilience and quality of our people and our portfolio. In a year marked by the challenges of the global Covid-19 pandemic, social unrest in Chile and commodity price volatility, we were safer, more reliable and lower cost," said Chief Executive Officer Mike Henry.
"We are moving to concentrate our coal portfolio on high quality coking coals, with greatest potential upside for quality premiums as steel makers seek to improve blast furnace utilisation and reduce emissions intensity. In oil and gas, we will continue to invest in opportunities that are resilient under a range of price scenarios, and which are aligned to our strengths. We will seek to divest oil and gas assets that are mature or which are likely to realise greater value under different ownership," Henry added.
Shares in BHP were marginally higher at AUD39.87 on Tuesday in Sydney.
By Dayo Laniyan; dayolaniyan@alliancenews.com
|
15/8/2020
09:21 | la forge: NSENERGY
Shareholders ask BHP to put activities near Australian cultural heritage sites on standby
Mining
By Andrew Fawthrop 13 Aug 2020
Amid growing concerns over the protection of native and aboriginal heritage sites in Australia, BHP has been asked to pause a planned mine expansion until legislation is reformed
BHP iron ore western australia
BHP plans to expand its iron ore operations in Western Australia (Credit: BHP)
A shareholder group called on BHP to halt any mining activities that could damage cultural heritage sites in Australia “until relevant laws are strengthened”.
The resolution – submitted today (13 August) by the Australasian Centre for Corporate Responsibility (ACCR) – follows the destruction in May of the 46,000-year-old Juukan Gorge aboriginal cave shelters by miner Rio Tinto in Western Australia.
It calls on BHP, one of the world’s largest mining companies, to introduce a moratorium on operations that would “disturb, destroy or desecrate cultural heritage sites” in the country until legislation to protect these regions has been reformed.
The company currently holds permits to expand a mining project that could potentially disrupt up to 40 locations designated to be culturally significant to an aboriginal group in Western Australia.
ACCR’s resolution is supported by the First Nations Heritage Protection Alliance, a coalition of more than 20 indigenous organisations from across Australia, representing every major aboriginal or native group in the country.
BHP has vowed not to disturb Pilbara cultural heritage sites without ‘extensive consultation’ with land owners
Following the Juukan Gorge incident – for which Rio Tinto has since apologised and faced a parliamentary enquiry into its actions – pressure has mounted for an accelerated reform of heritage-protection laws.
Western Australia’s Aboriginal Heritage Act has not been updated since 1972 and is currently in the process of being redrafted.
“Investors simply can’t stand by and allow another Juukan Gorge disaster to take place,” said ACCR executive director Brynn O’Brien. “Investors in BHP have the opportunity to ensure the company takes a cautious, best-practice approach in dealing with indigenous cultural heritage, by issuing a moratorium on any further destruction until laws are strengthened.
“We believe it’s necessary that this shareholder resolution receives strong support – or is proactively adopted by BHP’s board – because there is far too much at stake to allow any further destruction of indigenous cultural sites.”
In May, BHP secured permits to expand its South Flank iron ore project in Pilbara, Western Australia, in a region that is home to 40 cultural heritage sites linked to the Banjima aboriginal group.
Despite the miner’s insistence that it “will not disturb the sites identified without further extensive consultation with the Banjima people”, the ACCR has pressed BHP to formalise this commitment by adopting the resolution.
“Decisions about cultural heritage should be based on principles, not on a PR response to a crisis,” said O’Brien.
In addition to the moratorium, the shareholder motion calls on BHP to remove “gag orders” preventing aboriginal land owners from speaking publicly about activities on their land, as well as for greater disclosure on the lobbying efforts of industry associations to which it belongs on issues of cultural heritage.
ACCR calls for fresh review of trade-association memberships
In a separate resolution, the ACCR also asks BHP to review the activity of its trade associations, and to suspend its membership with any that are found to be lobbying for Covid-19 stimulus measures that are inconsistent with the goals of the Paris Agreement.
Such advocacy might include fast-tracked approvals for fossil-fuel projects or “aggressive deregulation”, according to ACCR director of climate and the environment Dan Gocher.
“Global leaders have a once in a generation opportunity to accelerate decarbonisation through widespread economic stimulus measures,” he added. “If BHP is unwilling or unable to ensure that its industry associations support that transition, then it must suspend its membership.”
Last year, more than a quarter of BHP shareholders voted in favour of a resolution calling for the miner to end its membership of trade associations that have lobbied for policies inconsistent with the climate goals set out in the Paris Agreement.
BHP has pledged to invest $400m over five years to develop technologies that will help it lower its emissions footprint, with a target of reaching net zero by 2050.
|
14/8/2020
08:28 | grupo guitarlumber: Shareholders ask BHP to put activities near Australian cultural heritage sites on standby
Mining
By Andrew Fawthrop 13 Aug 2020
Amid growing concerns over the protection of native and aboriginal heritage sites in Australia, BHP has been asked to pause a planned mine expansion until legislation is reformed
BHP iron ore western australia
BHP plans to expand its iron ore operations in Western Australia (Credit: BHP)
A shareholder group called on BHP to halt any mining activities that could damage cultural heritage sites in Australia “until relevant laws are strengthened”.
The resolution – submitted today (13 August) by the Australasian Centre for Corporate Responsibility (ACCR) – follows the destruction in May of the 46,000-year-old Juukan Gorge aboriginal cave shelters by miner Rio Tinto in Western Australia.
It calls on BHP, one of the world’s largest mining companies, to introduce a moratorium on operations that would “disturb, destroy or desecrate cultural heritage sites” in the country until legislation to protect these regions has been reformed.
The company currently holds permits to expand a mining project that could potentially disrupt up to 40 locations designated to be culturally significant to an aboriginal group in Western Australia.
ACCR’s resolution is supported by the First Nations Heritage Protection Alliance, a coalition of more than 20 indigenous organisations from across Australia, representing every major aboriginal or native group in the country.
BHP has vowed not to disturb Pilbara cultural heritage sites without ‘extensive consultation’ with land owners
Following the Juukan Gorge incident – for which Rio Tinto has since apologised and faced a parliamentary enquiry into its actions – pressure has mounted for an accelerated reform of heritage-protection laws.
Western Australia’s Aboriginal Heritage Act has not been updated since 1972 and is currently in the process of being redrafted.
“Investors simply can’t stand by and allow another Juukan Gorge disaster to take place,” said ACCR executive director Brynn O’Brien. “Investors in BHP have the opportunity to ensure the company takes a cautious, best-practice approach in dealing with indigenous cultural heritage, by issuing a moratorium on any further destruction until laws are strengthened.
“We believe it’s necessary that this shareholder resolution receives strong support – or is proactively adopted by BHP’s board – because there is far too much at stake to allow any further destruction of indigenous cultural sites.”
In May, BHP secured permits to expand its South Flank iron ore project in Pilbara, Western Australia, in a region that is home to 40 cultural heritage sites linked to the Banjima aboriginal group.
Despite the miner’s insistence that it “will not disturb the sites identified without further extensive consultation with the Banjima people”, the ACCR has pressed BHP to formalise this commitment by adopting the resolution.
“Decisions about cultural heritage should be based on principles, not on a PR response to a crisis,” said O’Brien.
In addition to the moratorium, the shareholder motion calls on BHP to remove “gag orders” preventing aboriginal land owners from speaking publicly about activities on their land, as well as for greater disclosure on the lobbying efforts of industry associations to which it belongs on issues of cultural heritage.
ACCR calls for fresh review of trade-association memberships
In a separate resolution, the ACCR also asks BHP to review the activity of its trade associations, and to suspend its membership with any that are found to be lobbying for Covid-19 stimulus measures that are inconsistent with the goals of the Paris Agreement.
Such advocacy might include fast-tracked approvals for fossil-fuel projects or “aggressive deregulation”, according to ACCR director of climate and the environment Dan Gocher.
“Global leaders have a once in a generation opportunity to accelerate decarbonisation through widespread economic stimulus measures,” he added. “If BHP is unwilling or unable to ensure that its industry associations support that transition, then it must suspend its membership.”
Last year, more than a quarter of BHP shareholders voted in favour of a resolution calling for the miner to end its membership of trade associations that have lobbied for policies inconsistent with the climate goals set out in the Paris Agreement.
BHP has pledged to invest $400m over five years to develop technologies that will help it lower its emissions footprint, with a target of reaching net zero by 2050.
|
PLUS1
