Bhp Group Ltd · ASX:BHP
Bhp — Corporate Update (March 2018)
27 slides from Bhp's corporate update, March 2018
Slide 1: Non-Operated Joint Ventures and Renova Foundation update
Non-Operated Joint Ventures and Renova Foundation update Bryan Quinn Asset President Joint Ventures Dan McLaughlin Senior Manager HSE Melinda Buckland Senior Manager Community March 2018 Rio Doce bank stabilisation and revegetation
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: Contents
Contents Bryan Quinn • Welcome and introduction • Minerals Non-Operated Joint Ventures (NOJVs) • Legal developments in Brazil • Renova Foundation • Q and A Melinda Buckland • Community resettlements • Mediated Indemnity Program (PIM) • Q and A Dan McLaughlin • Tailings management • River remediation
Slide 4: Minerals Non-Operated Joint Ventures (NOJVs)
Minerals Non-Operated Joint Ventures (NOJVs) Created 1 November 2016 Strategy Actively steward BHP’s reputation and social licence to operate as a shareholder in Minerals Non-operated Joint Venture operations Objective Enhance the governance and overall performance of the NOJVs Project BHP (42.75%)
Slide 5: NOJV progress on actions
NOJV progress on actions Accountability and people • Redefined BHP’s role in NOJV governance and the competencies needed to be successful • Established a single point of accountability and a team of functional experts • Implementing NOJV excellence (training, prioritization, planning, process improv
Slide 6: Negotiation with prosecutors continues
Negotiation with prosecutors continues Preliminary Agreement • On 18 January 2017 the Federal Prosecutors Office entered into a Preliminary Agreement with Samarco, Vale and BHP Billiton Brasil outlining process and timeline to settle the BRL 20 billion(1), BRL 155 billion(2) and other related collec
Slide 7: Renova Foundation is building momentum but still faces challenges
Renova Foundation is building momentum but still faces challenges Staffing has grown to 500 (with over 2000 contractors) to meet the demands of the 42 remediation and compensation programs • Roberto Waack continues as CEO • Executive Team expanded to include a third director with responsibility for
Slide 8: Renova Foundation Governance Framework
Renova Foundation Governance Framework Inter- federative Expert Panel Committee Board Advisory Fiscal Committee Committee 11 Technical Chambers Internal governance External governance Ombudsman Compliance Executive Independent Auditor IUCN Panel (EY) BHP NOJV and Renova Foundation update March 2018
Slide 9: Renova programs cover 39 municipalities
Renova programs cover 39 municipalities MÉDIO RIO DOCE FOZ - LITORAL CALHA RIO DOCE ALTO RIO DOCE MARIANA BAIXO RIO DOCE BHP NOJV and Renova Foundation update March 2018 9
Slide 10: BHP continues to support Renova
BHP continues to support Renova BHP provides professional and technical expertise through its team in Belo Horizonte • 3 Board nominees – Wilson Brumer (former BHP Billiton Brasil President) – Flavio Bulcao (current BHP Brasil executive) – Ian Wood (former BHP executive) • Representatives on all Boa
Slide 11: Program expenditure to date is US$1.04 billion
Program expenditure to date is US$1.04 billion (1) The majority of program expenditure to date has been for environmental remediation Program expenditure to date Programs to date (US$ million) (US$ million) Socioeconomic Programs 1,040 385, 655, 37% 63% Socioenvironmental Programs 538 399 Programs t
Slide 12: Program expenditure to date by categories
Program expenditure to date by categories (1) Program expenditure to date People and communities (US$ million) Identification and indemnification Education and culture Health and wellness Tailings containment 179 Traditional and indigenous Reconstruction and communities infrastructure Mediated Compe
Slide 13: Community resettlements
Community resettlements Resettlements are progressing although there have been delays • The three communities of Bento Rodrigues (225 families), Paracatu de Baixo (140 families), Gesteira (20 families) and people living in homes that were severely impacted in other rural areas (55 families) are in v
Slide 14: Bento Rodrigues
Bento Rodrigues Current • 225 families • Land purchased • Bill approved to amend the Master Plan of Mariana • Community assembly approved the Urban Plan on 8 February • The meeting was attended by 80% of the community who voted 179 – 1 in favour of the option developed by Renova following extensive
Slide 15: Paracatu de Baixo Gesteira
Paracatu de Baixo Gesteira Current Current • 140 families • 20 families • Site approved by local communities • Negotiations with the land owner for the preferred site continue • 100% of the 9 parcels of land for the new village has now been to be difficult acquired • Request from AEDAS (technical as
Slide 16: Compensation for water interruption
Compensation for water interruption GOVERNADOR Registration to claim compensation for PERIQUITO VALADARES GALILEIA 1 interruption to water though the Mediated NAQUE TUMIRITINGA BELO ORIENTE 2 MARILÂNDIA Indemnity Program (PIM Water) closed on SANTANA DO PARAÍSO RESPLENDOR 31 December 2017 IPATINGA 3
Slide 17: General damages compensation is progressing
General damages compensation is progressing Working towards completing compensation payments for all other impacts through PIM General Damages program by 30 June 2018 • Renova expects to settle most cases by this date, however a number of judicial claims are expected to follow after the PIM program
Slide 18: Access and support is key
Access and support is key Renova is making every effort to accelerate payments and support vulnerable people • Renova has established teams of people to resolve process issues and accelerate payments • Access to the program is being facilitated by – standalone offices – a mobile unit which services
Slide 19: Supporting local economies
Supporting local economies The Framework Agreement requires Renova to devise and execute a program to prioritise local contracting, with a view to stimulating use of local workforce and local supplier networks • Funds have been established to support small companies to increase their competitiveness
Slide 20: Tailings contained
Tailings contained • The 2018 Wet Season has seen heavy rainfall but all structures in the Germano site remain stable. The monitoring system is working as designed • New Santarém dam commissioning started on 2 January 2018 and is progressing as planned. Close monitoring continues • No tailings remob
Slide 21: Turbidity at historical levels for 2018 wet season
Turbidity at historical levels for 2018 wet season S3 and S4 Dikes downstream turbidity levels over 100 NTU three times during February BHP NOJV and Renova Foundation update March 2018 21
Slide 22: River remediation is progressing well
River remediation is progressing well October 2016 December 2016 January 2017 February 2017 Rio Doce bank stabilisation and revegetation BHP NOJV and Renova Foundation update March 2018 22
Slide 23: Managing tailings for long term sustainability (I)
Managing tailings for long term sustainability (I) Tailings management along the river will include a range of measures to remove, stabilise or monitor tailings deposits • Renova is focused on remediation actions that provide the fastest and most sustainable path to recovery of river water quality a
Slide 24: Managing tailings for long term sustainability (II)
Managing tailings for long term sustainability (II) • Dredging activities in Candonga Dam involve the building of structures to manage and contain tailings, which requires proper design and construction to avoid risk of structural failure or ineffectiveness in reaching environmental outcomes • Techn
Slide 25: Fishing bans remain in place
Fishing bans remain in place Our goal is to enable impacted people to return to pre-event livelihoods in the Rio Doce basin and the coast so they are no longer dependent on financial aid • Two fishing bans are in place which do not allow fisherfolk in the river and the coast to return to their custo
Slide 26: Working to lift the bans sooner
Working to lift the bans sooner BHP is supporting Renova by assessing technical studies and other legal and regulatory actions and measures that could be taken to accelerate lifting of the bans • Espirito Santo (coastal) – compile available data and undertake further studies to address information g
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