BHP Billiton PLC, the world's largest mining company, has reportedly suspended a crucial decarbonization project in Western Australia's Pilbara region, which was designed to significantly cut carbon emissions from its iron ore operations. According to internal documents obtained through a joint investigation, the company has been systematically delaying emission reduction efforts while publicly promoting its climate leadership.
The shelved project includes an iron ore processing facility that could have reduced annual carbon emissions by 1.7 million tons, equivalent to taking over 350,000 cars off the road each year. The documents reveal that despite internal warnings that delays could harm the company's reputation and jeopardize its operating licenses, the related investment plans were halted. Earlier, a $40 million solar and battery project approved by BHP Billiton PLC's board in mid-2023 was also suspended by management shortly after approval, citing cash flow priorities.
In contrast, BHP Billiton PLC is reported to be procuring a large number of new diesel trucks. One document indicates the company purchased 62 new Caterpillar diesel trucks after a price drop, locking in fossil fuel use in the Pilbara region until at least the late 2030s, potentially extending to 2041. This move starkly contrasts with its successful large-scale decarbonization efforts in its Chilean copper operations.
The documents further disclose that a larger $1.3 billion renewable energy plan, including solar, wind, and battery storage facilities, has also been paused. Funding documents show no significant allocations for this project are planned before 2031. In a May 2025 memo, BHP Billiton PLC acknowledged the low success rate of its current decarbonization plan and openly discussed options to delay the electrification of its truck and rail fleets until 2035 or 2040.
In response to these allegations, BHP Billiton PLC stated that its progress toward net-zero emissions depends on technological breakthroughs for equipment like trucks and trains, noting that 240-ton battery-electric truck technology is not yet mature enough for operational deployment. However, its competitor Fortescue maintains that existing technology is sufficient and has made substantial investments in renewable energy facilities in the Pilbara region.
Experts warn that BHP Billiton PLC, as Australia's largest single emitter, risks undermining national climate targets through its delayed actions. Tim Buckley of the Climate Energy Finance think tank pointed out that BHP Billiton PLC's annual reports indicate its global emissions are projected to increase, not decrease, from the 2025 fiscal year to 2030.