BHP quietly scrapped plan to build Pilbara plant that would have drastically cut emissions
Summary
BHP stopped plans to build a plant near its Jimblebar mine that would have improved iron ore quality and greatly cut emissions. This project, along with other climate-related initiatives, was canceled or delayed despite being seen as beneficial for reducing pollution and aligning with BHP’s climate goals.Key Facts
- BHP planned to build a beneficiation plant near Jimblebar mine to improve iron ore quality and lower emissions.
- The plant would have reduced emissions by 1.7 million tonnes annually, equal to removing over 350,000 cars from the road.
- Higher quality iron ore helps steelmakers cut their emissions more cheaply.
- BHP stopped the project in June 2025, citing economic concerns and competition for investment.
- The company also paused a 50MW solar and battery project and delayed a nearly 500MW renewable energy system.
- BHP continues acquiring diesel trucks despite promises to switch to electric vehicles in Pilbara.
- Documents revealed BHP’s delays raise questions about Australia’s safeguard mechanism, a policy requiring large polluters to reduce emissions intensity.
- The Australian government updated the safeguard mechanism in 2023, demanding yearly emission intensity reductions of up to 4.9%.
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