Leaked documents reveal doubts over BHP's ability to hit net zero

A BHP mining truck driving in a supplied video from the mining company. (BHP) Internal documents show BHP's WA iron ore mines are only forecast to reduce emissions by around 1 per cent by 2030. It comes as the company delays renewable energy projects in the Pilbara, including a fleet of electric trucks and trains. The company said it remains committed to achieving net zero emissions by 2050. Link copiedShareShare articleBHP's vast WA iron ore operations are forecast to cut emissions by just 1 per cent by 2030, leaked internal documents reveal, raising doubts inside the company about whether it can meet its pledge to reach net zero by 2050. The documents, obtained exclusively by Four Corners and Guardian Australia, focus on BHP's operations in WA. Given those mines account for 30 per cent of BHP's global emissions, big cuts would be needed in the Pilbara to achieve the 2050 goal. The mining giant's delay in the rollout of renewable energy and its first fleet of electric trucks and trains has raised doubts inside the company about it meeting its ambitious climate goal. "Solutions are still being sought to achieve net zero," it said in a memo from May last year. Separately the document said delaying climate action into the 2040s "risks achieving 2050 goal". In another document, BHP staff noted its decision to stick with diesel trucks at one Pilbara mine was "inconsistent with the trajectory for greenhouse gas abatement and pathways to net zero". Tim Buckley from think tank Climate Energy Finance said BHP was not currently on track to meet net zero operational emissions by 2050. "Their actions are not aligned with the science," he said. BHP said its global emissions have already fallen 36 per cent since 2020. This is largely due to converting its Chilean copper mines to renewable energy. "BHP continues to focus on delivering our operational emissions target and long-term net zero goal," the company said in a statement. The leaked documents also give an insight into how the mining giant thinks about the contentious diesel fuel rebate. The federal government is under pressure from a loose coalition of unions, economists, green groups and crossbench MPs who argue the rebate is slowing the transition to zero emission technology in the mining sector. The documents show BHP does explicitly link the diesel fuel rebate to how quickly it cuts emissions at its WA iron ore mines. An internal memo from May last year, signed by BHP's head of Australian operations, Geraldine Slattery, discusses how delays in adopting electric trucks and trains, powered by renewable energy, will affect the company. The memo, titled "Decarbonisation Plan" said one risk of not acting was that there could be "material changes in diesel prices". It said an example of this would be the federal government's diesel fuel excise being "revoked". The rebate gives mining companies the excise they pay on diesel back in the form of a tax credit. BHP relies on diesel to power trains that support its operations in the Pilbara. (Four Corners: Ryan Sheridan) "The removal of the diesel fuel rebate would provide a strong incentive to decarbonise," said economist Ross Garnaut, who authored two landmark government reviews on the economics of climate change. Prior to the federal budget in May, the Albanese government was strongly considering major reform to the rebate, according to Tim Buckley, who was involved in the discussions. That changed when fuel prices spiked with the latest outbreak of conflict in the Middle East. "All of a sudden fuel security became the number one issue and we were told it had been taken off the table," Mr Buckley said. The company's WA iron ore operations account for 30 per cent of its global emissions. (Four Corners: Ryan Sheridan) Those in favour of reforming the rebate, which costs the federal budget $11 billion every year, are now targeting the ALP national conference in July as the next opportunity to push for reform. Federal Energy Minister Chris Bowen recently reaffirmed the government's support for the diesel fuel rebate in parliament, pointing out that farmers also make use of the policy. BHP is the mining industry's largest diesel user and received an estimated $622 million in fuel tax credits from the federal government last financial year, including $379m for its WA iron ore mines. BHP has strongly opposed any changes to the rebate. The company does plan to test electric trucks — it received two in December — but it wouldn't say if its trial had begun yet. In a statement BHP told Four Corners much of the zero-emission technology needed by the mining industry to decarbonise was "not yet ready to be deployed". It said the technology for large haul trucks was "not advanced enough to scale to an operational fleet". These comments are at odds with some of the leaked internal documents. One document from last year shows BHP staff were considering deploying electric trucks at its yet to be built M

Leaked documents reveal doubts over BHP's ability to hit net zero

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Leaked documents reveal doubts over BHP's ability to hit net zero

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