Slide 1: News Release: Tailings Facilities Management
NEWS RELEASE Release Time IMMEDIATE For personal use only Date 7 June 2019 Release Number 13/19 Tailings Facilities Management BHP will be hosting an investor briefing today on the management of tailings storage facilities across the portfolio. The purpose of the briefing is to provide an update on
Slide 2: Media and Investor Relations contacts
Media Relations Investor Relations Email: media.relations@bhp.com Email: investor.relations@bhp.com Australia and Asia Australia and Asia For personal use only Gabrielle Notley Tara Dines Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Tel: +61 3 9609 2222 Mobile: + 61 499 249 005 United Kingdom and So
Slide 3: ESG briefing: Tailings dams, June 2019
Escondida For personal use only ESG briefing: Tailings dams June 2019
Slide 4: Disclaimer
Disclaimer For personal use only 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 divest
Slide 5: Key messages
Key messages For personal use only 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 r
Slide 6: Part 1: Introduction to tailings dams
For personal use only Part 1: Introduction to tailings dams
Slide 7: 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? For personal use only Escondida Tailings Storage Facility, Chile • A dam is a barrier constructed for the retention of water, water containing any other substa
Slide 8: 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 For personal use only Design, construction and operation of tailings dams need to account for possible changes over their long life cycle Site selection La
Slide 9: Principal design methods
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Principal design methods For personal use only There are a range of options for tailings dams design, determined in consideration of a range of factors There are 3 broad types of tail
Slide 10: 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 For personal use only Maintaining dam integrity requires ongoing focus on appropriate engineering design, quality construction, operating
Slide 11: 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 For personal use only Tailings dam classification informs design and management of dam facilities and assessment of dam risk • BHP primarily classi
Slide 12: 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 For personal use only Consequence is based on the most significant, possible outcome in any of the categories, regardless of probability Classifica
Slide 13: 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 For personal use only There are a range of terms used to describe causes for dam failures. Typically, there is not one cause alone tha
Slide 14: 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 For personal use only This study represents one of the most recent analyses of dam failure trends Tailings dam failures1, 2 (Number o
Slide 15: Part 2: Tailings facilities in the portfolio and BHP's dam risk review
For personal use only Part 2: Tailings facilities in the portfolio and BHP's dam risk review
Slide 16: 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 For personal use only Within the tailings facilities portfolio there are 67 operated tailings facilities Classification is based on the
Slide 17: 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 For personal use only Classification is based on the modelled, hypothetical most significant failure mode without controls – not on the
Slide 18: 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 For personal use only Within the tailings facilities portfolio there are 9 non-operated tailings facilities Classification is bas
Slide 19: 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 For personal use only Classification is based on the modelled, hypothetical most significant failure mode without control
Slide 20: 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 For personal use only The Dam Risk Review was undertaken to assess the management of tailings facilities following the failure of the Fundão dam at Samarco
Slide 21: BHP Dam Risk Review: Dam integrity review findings
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Dam Risk Review For personal use only Dam integrity review findings • The Review identified no immediate concerns regarding dam integrity. • Tailings dams are however dynamic stru
Slide 22: 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 For personal use only Asset level actions At the Asset level, the following actions have been taken: >400 Dam Risk Review actions assigned to BHP assets • Design:
Slide 23: 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 For personal use only Group level actions1 At the Group level, the following actions have been taken: • Accountability: The Resource Engineering Centre of Excellen
Slide 24: Part 3: Approach to dam risk management at BHP's operations
Elliot Lake For personal use only Part 3: Approach to dam risk management at BHP’s operations
Slide 25: 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 For personal use only Maintaining dam integrity requires appropriate engineering design, quality construction, ongoing operating dis
Slide 26: 1. Dam integrity
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 1. Dam integrity For personal use only Dam integrity is an ongoing process of continuous assessment that must be maintained for the life of a tailings dam Critical components to maint
Slide 27: 2. Dam governance
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 2. Dam governance For personal use only Effective governance encompasses a range of aspects from change management to document management to appropriately qualified personnel with cle
Slide 28: 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 For personal use only Given tailings dams are dynamic structures, effective monitoring, surveillance and review is central to ongoing dam integr
Slide 29: 3. Monitoring, surveillance and review: Dam Safety Reviews
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future 3. Monitoring, surveillance and review For personal use only Dam Safety Reviews CDA process for DSRs • Type of owner/budget 1. Define roles, and responsibilities and • Dam Safety Revi
Slide 30: 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 For personal use only Emergency preparedness and response is a key element in our approach to dam risk management Classification is based on the
Slide 31: Part 4: The future: Advancing the science and independent oversight
For personal use only Part 4: The future: Advancing the science and independent oversight
Slide 32: BHP Tailings Taskforce
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future BHP Tailings Taskforce For personal use only Prior to Brumadinho we already had a significant focus on looking at how we could deliver a step change reduction in tailings risk. Brumad
Slide 33: 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 For personal use only Accelerating the pathway to safer, more sustainable management We get there through R&D in …with the approach to de-risk technol
Slide 34: 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 For personal use only Building a portfolio view on BHP R&D investment WORKSTREAMS INDICATIVE OPPORTUNITIES Characterisation • Tailing Liquefaction 3 year R
Slide 35: 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 For personal use only WORKSTREAMS Characterisation Monitoring Innovation RESEARCH • Liquefaction Risk • CalTech Digital Twin • Zero Waste Mining
Slide 36: Industry collaboration
Introduction to tailings dams Tailings facilities in the portfolio Approach to dam risk management at BHP The future Industry collaboration For personal use only BHP welcomes a common, international and independent body to oversee integrity of construction and operation of all tailings storage facil
Slide 37: Case Study: North American Closed Sites tailings facilities
For personal use only Case Study: North American Closed Sites tailings facilities Copper Cities Selbaie
Slide 38: North American Closed Sites tailings portfolio
North American Closed Sites tailings portfolio For personal use only 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
Slide 39: North American Closed Sites tailings portfolio
North American Closed Sites tailings portfolio For personal use only 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 Clas
Slide 40: North American Closed Sites dam governance
North American Closed Sites dam governance For personal use only 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 accountabili
Slide 41: Dam safety reviews (DSRs)
Dam safety reviews1 (DSRs) For personal use only 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. Ambrosi
Slide 42: Example of an emergency drill: Elliot Lake
Example of an emergency drill: Elliot Lake For personal use only 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 em
Slide 43: For personal use only
For personal use only
Slide 44: Appendix
For personal use only Appendix
Slide 45: Comparison ANCOLD and CDA Dam Classifications
Comparison ANCOLD and CDA Dam Classifications For personal use only 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
Slide 46: For personal use only
For personal use only