Leaked internal documents show BHP has allocated no funding for major Pilbara renewable projects until 2031, even though the WA iron ore business generates $US14.4 billion in annual pre-tax profit.
Cost drove the retreat: management halted a board-approved $400 million Jimblebar solar-and-battery project for cash prioritization, then dropped a larger $1.3 billion solar, wind and battery plan after diesel truck prices fell to $3 million from $5 million.
BHP instead bought 62 new diesel trucks for Jimblebar and extended 51 trucks at Newman, locking in diesel use at key WA mines into the late 2030s and potentially 2041 while expanding a gas-fired power plant.
The shift clashes with 2023 board advice that urgent decarbonisation underpinned BHP's licence to operate and that slow progress in the Pilbara risked reputational damage; those operations produce about 30% of BHP's global emissions.
The delay leaves BHP without a clear post-2030 pathway for its 2050 net-zero goal and highlights how Australia's weak carbon settings let miners defer action far longer than stricter policy regimes such as Chile's.
Is BHP's climate U-turn a strategic blunder risking Australia's future in the green resource economy?
How can the world’s largest miner justify buying new diesel trucks while shelving its own solar farms?
BHP Retreats from Pilbara Decarbonisation: Major Delays Threaten Australia’s Climate Goals
Overview
BHP has announced a major shift in its decarbonisation strategy for its Western Australian iron ore operations, following an internal review that found its existing plan was no longer achievable due to slow technological progress by truck manufacturers. As a result, BHP is delaying or potentially cancelling key projects, including the electrification of its truck and rail fleets, and reducing the urgency to source renewable energy by 2030. This move means BHP will continue to rely on more carbon-intensive methods, taking advantage of Australia’s Safeguard Mechanism, which allows the company to postpone climate action without significant financial impact.