Slide 1: ESG briefing: Tailings dams
Escondida ESG briefing: Tailings dams June 2019
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operat
Slide 3: Key messages
Key messages Introduction There are three broad design types for tailings dams: upstream, downstream and centerline • Environmental conditions and the nature of tailings need to be considered when designing mine tailing storage. to tailings • Dam consequence or classification ratings are based on th
Slide 4: Part 1: Introduction to tailings dams
Part 1: Introduction to tailings dams
Slide 5: What are tailings dams?
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future What are tailings dams? Escondida Tailings Storage Facility, Chile • A dam is a barrier constructed for the retention of water, water containing any other substance, fluid waste, or t
Slide 6: Life cycle of tailings dams
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Life cycle of tailings dams Design, construction and operation of tailings dams need to account for possible changes over their long life cycle Site selection Landform and design Cons
Slide 7: Principal design methods
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Principal design methods There are a range of options for tailings dams design, determined in consideration of a range of factors There are 3 broad types of tailings dam. The selectio
Slide 8: Factors that influence tailings dam integrity
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Factors that influence tailings dam integrity Maintaining dam integrity requires ongoing focus on appropriate engineering design, quality construction, operating discipline and effect
Slide 9: Tailings dam classification systems
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Tailings dam classification systems Tailings dam classification informs design and management of dam facilities and assessment of dam risk • BHP primarily classifies dams according to
Slide 10: Tailings dam classification systems
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Tailings dam classification systems Consequence is based on the most significant, possible outcome in any of the categories, regardless of probability Classification is based on the m
Slide 11: Common terms used to describe failure mechanisms
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Common terms used to describe failure mechanisms There are a range of terms used to describe causes for dam failures. Typically, there is not one cause alone that contributes to a fai
Slide 12: Industry-wide statistics of tailings dam failures
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Industry-wide statistics of tailings dam failures This study represents one of the most recent analyses of dam failure trends Tailings dam failures1, 2 (Number of records) 30 Groundwa
Slide 13: Part 2: Tailings facilities in the portfolio and BHP's dam risk review
Part 2: Tailings facilities in the portfolio and BHP's dam risk review
Slide 14: Operated tailings facilities in the portfolio
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Operated tailings facilities in the portfolio1 Within the tailings facilities portfolio there are 67 operated tailings facilities Classification is based on the modelled, hypothetical
Slide 15: Operated tailings facilities in the portfolio
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Operated tailings facilities in the portfolio1 Classification is based on the modelled, hypothetical most significant failure mode without controls – not on the current physical stabi
Slide 16: Non-operated JV tailings facilities in the portfolio
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Non-operated JV tailings facilities in the portfolio1 Within the tailings facilities portfolio there are 9 non-operated tailings facilities Classification is based on the modelled, hy
Slide 17: Tailings facilities with extreme or very high classifications
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Tailings facilities with extreme or very high classifications Classification is based on the modelled, hypothetical most significant failure mode without controls – not on the current
Slide 18: BHP Dam Risk Review – 2016
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Dam Risk Review – 2016 The Dam Risk Review was undertaken to assess the management of tailings facilities following the failure of the Fundão dam at Samarco • The Review assessed
Slide 19: BHP Dam Risk Review
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Dam Risk Review Dam integrity review findings • The Review identified no immediate concerns regarding dam integrity. • Tailings dams are however dynamic structures and maintaining
Slide 20: BHP Dam Risk Review: Asset level actions
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Dam Risk Review Asset level actions At the Asset level, the following actions have been taken: >400 Dam Risk Review actions assigned to BHP assets • Design: Revise dam break analy
Slide 21: BHP Dam Risk Review: Group level actions
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Dam Risk Review Group level actions1 At the Group level, the following actions have been taken: • Accountability: The Resource Engineering Centre of Excellence has been allocated
Slide 22: Part 3: Approach to dam risk management at BHP's operations
Elliot Lake Part 3: Approach to dam risk management at BHP’s operations
Slide 23: Approach to dam risk management at BHP operations
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Approach to dam risk management at BHP operations1 Maintaining dam integrity requires appropriate engineering design, quality construction, ongoing operating discipline and effective
Slide 24: 1. Dam integrity
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 1. Dam integrity Dam integrity is an ongoing process of continuous assessment that must be maintained for the life of a tailings dam Critical components to maintaining dam integrity i
Slide 25: 2. Dam governance
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 2. Dam governance Effective governance encompasses a range of aspects from change management to document management to appropriately qualified personnel with clear accountabilities We
Slide 26: 3. Monitoring, surveillance and review
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 3. Monitoring, surveillance and review Given tailings dams are dynamic structures, effective monitoring, surveillance and review is central to ongoing dam integrity and governance. Th
Slide 27: 3. Monitoring, surveillance and review
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 3. Monitoring, surveillance and review Dam Safety Reviews CDA process for DSRs • Type of owner/budget 1. Define roles, and responsibilities and • Dam Safety Reviews are systematic, de
Slide 28: 4. Emergency preparedness and response
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 4. Emergency preparedness and response Emergency preparedness and response is a key element in our approach to dam risk management Classification is based on the modelled, hypothetica
Slide 29: Part 4: The future: Advancing the science and independent oversight
Part 4: The future: Advancing the science and independent oversight
Slide 30: BHP Tailings Taskforce
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Tailings Taskforce Prior to Brumadinho we already had a significant focus on looking at how we could deliver a step change reduction in tailings risk. Brumadinho however has furth
Slide 31: BHP tailings technology strategy
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP tailings technology strategy Accelerating the pathway to safer, more sustainable management We get there through R&D in …with the approach to de-risk technology key workstreams… o
Slide 32: BHP tailings technology R&D
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP tailings technology R&D Building a portfolio view on BHP R&D investment WORKSTREAMS INDICATIVE OPPORTUNITIES Characterisation • Tailing Liquefaction 3 year R&D on critical state l
Slide 33: Collaborative research and innovation
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Collaborative research and innovation WORKSTREAMS Characterisation Monitoring Innovation RESEARCH • Liquefaction Risk • CalTech Digital Twin • Zero Waste Mining (tailings avoidance, r
Slide 34: Industry collaboration
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Industry collaboration BHP welcomes a common, international and independent body to oversee integrity of construction and operation of all tailings storage facilities across the indus
Slide 35: Case Study: North American Closed Sites tailings facilities
Case Study: North American Closed Sites tailings facilities Copper Cities Selbaie
Slide 36: North American Closed Sites tailings portfolio
North American Closed Sites tailings portfolio Bullmoose (NOJV) Selbaie & Poirier • The North American Closed Sites portfolio consists of 32 operated Tailings Storage Facilities distributed Elliot Lake across 19 mine sites at locations in the US (Arizona, California, New Mexico, Utah) and Canada (Br
Slide 37: North American Closed Sites tailings portfolio
North American Closed Sites tailings portfolio Classification is based on the modelled, hypothetical most significant failure mode without controls – not on the current physical stability of the dam. • North American Closed Sites account for over half of BHP’s operated CDA Classification of Closed S
Slide 38: North American Closed Sites dam governance
North American Closed Sites dam governance A clear approach to dam governance is in place across the North Americans Closed Sites portfolio • Dam Owners have been assigned for each key Head of grouping of sites specifically to provide a single Closed Sites point of accountability for all aspects con
Slide 39: Dam safety reviews (DSRs)
Dam safety reviews1 (DSRs) Canada Elliot Lake – Initial DSR in 1999; MB subsequent DSR completed in 2007 and 2013. Planned updates based on Other US BC AB SK QC consequence classification rating in Lisbon – DSR completed April 2019 ON Canadian Dam Association framework. Ambrosia Lake – DSR completed
Slide 40: Example of an emergency drill: Elliot Lake
Example of an emergency drill: Elliot Lake The Emergency Response Drill for Elliot Lake involved a two-step process so that the community was engaged, aware and available First step: a community emergency planning workshop • The purpose of the workshop was to introduce BHP’s emergency planning proce
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Slide 42: Appendix
BHP Appendix
Slide 43: Comparison ANCOLD and CDA Dam Classifications
Comparison ANCOLD and CDA Dam Classifications CDA (2007) ANCOLD Guidelines on Tailings Dams (2012) EXTREME Extreme VERY HIGH High A High B HIGH High C SIGNIFICANT Significant LOW Low CDA does not have this category Very Low Tailings dams June 2019 43
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