Internal documents from BHP, obtained by Four Corners and Guardian Australia, indicate that the company has shelved or delayed several renewable energy and electrification projects at its iron ore operations in Western Australia's Pilbara region. The documents also show the company has continued to purchase diesel-powered haulage trucks, extending the use of diesel at some sites until the late 2030s or beyond.
BHP attributes the delays to the lack of commercially ready battery-electric technology, a position disputed by competitor Fortescue.
"The real issue is no longer technology readiness. The real issue is whether companies are prepared to stop delaying and start deploying." — Fortescue CEO Dino Otranto
Project Delays and Cancellations
The internal documents detail the following specific project changes:
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Jimblebar Solar Farm: A planned 70-megawatt (some sources state 50MW) solar farm with a 20MW battery at the Jimblebar mine was approved by the board in June 2023 but was halted shortly afterward. BHP cited cash prioritization as the reason.
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Large-Scale Renewables Project: A larger $1.3 billion project combining solar, wind, and battery storage was placed on hold. Documents from August 2025 state the project "will not progress in its current form." Capital funding for major renewable energy projects in the Pilbara is not allocated until at least 2031.
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Beneficiation Plant: BHP cancelled a plan to build a beneficiation plant near the Jimblebar mine in June 2025. The plant was designed to improve iron ore purity and could have reduced annual scope-three emissions by an estimated 1.7 million tonnes of CO2. Internal assessments rated the project as having "excellent social value," but BHP stated it was shelved due to "marginal economics and competition for capital."
Continued Investment in Diesel Equipment
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New Diesel Trucks (Jimblebar): BHP purchased 62 new diesel haulage trucks for the Jimblebar mine at a cost of over $500 million. This locks in diesel use at that mine until at least the late 2030s, potentially 2041.
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Extending Diesel Fleet Life (Newman): At the Newman mine, BHP extended the operational life of 51 existing diesel trucks. The documents do not specify a timeline for introducing electric vehicles at that site.
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Gas-Fired Power Expansion: BHP is expanding its gas-fired power plant in the Pilbara.
BHP's Emissions Reduction Progress and Goals
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Targets: BHP has publicly committed to a 30% reduction in emissions by 2030 and net-zero emissions by 2050. The company had previously stated it expected electric trucks to be operational in the Pilbara by 2027.
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Reported Progress: BHP reports having reduced its emissions by 36% from 2020 levels. Company representatives state that the 2030 global emissions reduction target is on track, primarily due to renewable energy use at its Chilean copper mines, not its Australian operations.
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Internal Assessment: An internal memo from May 2025 reportedly stated that BHP's current decarbonization plan has a "low probability of success," citing slow technological advancement by truck manufacturers and that "the urgency to source renewables generation and storage services by 2030 has diminished."
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Financial Context: BHP's Pilbara iron ore operations account for approximately 30% of the company's global emissions and generated $14.4 billion in pre-tax profit last financial year. Analysis indicates that under Australia's Safeguard Mechanism, BHP could delay action for another 15 years without a "material" financial impact.
Differing Industry Views on Technology Readiness
The primary point of contention between BHP and rival miner Fortescue concerns the readiness of zero-emission mining technology.
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BHP's Position: BHP has stated that much zero-emission technology for mining is "not yet ready to be deployed." The company specifically argues that 240-ton battery-electric haul trucks are "not advanced enough to scale to an operational fleet." BHP reports it is partnering with manufacturers to trial two 240-ton battery-electric haul trucks and four battery-electric locomotives.
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Fortescue's Position: Fortescue disputes this assessment, stating the technology is available. Fortescue aims to have its first electric truck running in September and targets full decarbonization of its Pilbara operations by 2030. Fortescue reports having 1.4 GW of solar, 1 GWh of battery storage, and 133 MW of wind either operational or under construction.
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Other Views: Tim Buckley of Climate Energy Finance has stated BHP's actions in the Pilbara "are not aligned with the science." An analysis published by Mandala Partners shows BHP reduced emissions by 36% over five years while Fortescue's emissions rose 24%. Tim Buckley noted that Fortescue's increase was partly due to opening a new mine and increased production, while BHP's reduction included impacts from an acquisition and decarbonization of a Chilean mine.
Policy Debate: Fuel Tax Credits and Safeguard Mechanism
The company's delayed decarbonization plans have fueled a political debate over the diesel fuel tax credit scheme and the Safeguard Mechanism.
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Fuel Tax Credits: Analysis provided to the Guardian indicates BHP received an estimated $622 million in fuel tax credits for the last financial year, including approximately $379 million for its Western Australian iron ore mines. The scheme, introduced in 1982, allows businesses to claim back federal fuel tax on off-road diesel use. The mining industry now receives about half of the total credits, with the annual cost projected to be $11.2 billion by 2026-27.
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Safeguard Mechanism: Analysis suggests BHP paid less than $9 million under the Safeguard Mechanism for excess emissions last financial year.
Political Positions:
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Minister Chris Bowen (Climate Change and Energy): Stated he has communicated expectations to major emitters and that the government did not change the fuel credits scheme in the recent budget, downplaying immediate reform.
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Minister Tim Ayres: Defended the Safeguard Mechanism, stating it reduced emissions by 5.5 million tonnes since reform.
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Minister Madeleine King (Resources): Expressed no concern, stating BHP is "doing their job" and is committed to cutting emissions under the Safeguard Mechanism.
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Senator David Pocock (Independent): Criticized the discrepancy between the size of the fuel tax credits received and the payments made under the Safeguard Mechanism.
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MP Kate Chaney (Independent): Called for tightening the Safeguard Mechanism and reforming the fuel tax credit scheme for large, profitable companies.
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MP Jerome Laxale (Labor): Stated it is "reasonable to expect more" from the resources sector and supports changes to the diesel fuel tax credits scheme.
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Labor Environment Action Network (Lean): Has proposed capping diesel fuel tax credits at $50 million per company; over 270 local ALP branches have passed motions supporting this.
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Fortescue: Supports changes to the fuel tax credit scheme.
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Chamber of Minerals and Energy of Western Australia (Aaron Morey): Argued that no mining operation globally runs a fully electrified haulage fleet at the scale and complexity of the Pilbara, as the technology does not yet exist.