A new snapshot analysis of BHP’s significant coal expansion plans for Central Queensland highlights the company’s lack of consistency on climate commitments and calls into question its ongoing criticism of QLD’s tiered coal royalties system.
The briefer, compiled by Lock the Gate Alliance using publicly available information supplied by BHP itself, will be used to brief investors and encourage them to push BHP to responsibly phase down coal mining and curtail its planned expansions. The analysis is available here.
LTGA will team up with Market Forces to provide copies of the report to attendees at BHP’s Annual General Meeting at the Ritz-Carlton, 650 Lonsdale St, Melbourne, at 9am today (Thursday October 23). Attendees will also be handed chocolate koalas and the theme song for “Blinky Bill” will be played to highlight BHP’s plans to clear 1,169 ha of koala habitat for its Saraji East project. There will be a parallel demonstration in Brisbane at BHP’s Head Office.
The analysis’ key findings include:
Expansions:
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BHP is building one new coal mine and expanding two others in Central Queensland. If the Albanese Government grants approval to all three projects, they will collectively mine 1.3 billion tonnes of new coal, which will unleash 3.5 billion tonnes of climate pollution.
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The new projects would produce 36% of all new coal from planned projects in QLD, making BHP the largest proponent of proposed coal projects in QLD.
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They would drain 900 billion litres of water combined.
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The largest of these, the Peak Downs Continuation Project, would be responsible for more than three billion tonnes of climate pollution, and would mine coal for 93 years - well beyond Australia’s emissions reduction targets.
Existing operations (including Saraji South*):
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BHP is the joint owner of five coal mines in Central QLD. In FY24, these 5 coal mines produced ~35Mt of product coal, and were responsible for approximately 97 million tonnes of CO2e from the combustion of coal.
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Last year, BHP’s jointly owned QLD coal mines were collectively responsible for about 16% of all coal mined in the state.This makes BHP the largest coal mining company in QLD (by coal production).
Lock the Gate Alliance QLD Coordinator and report author Maggie Mckeown said, “BHP’s massive planned coal expansion flies in the face of the company’s own climate goals of net zero by 2050 for both direct (scope 1 and 2) and downstream emissions (scope 3).
“We’re calling out BHP for trying to work two sides of the same street - selling a shonky climate plan to shareholders and at the same time pushing huge new coal mines and expansions. Analysis shows BHP’s coal plans are totally incompatible with a safe climate that keeps warming to 1.5 degrees - which threatens communities across the globe.
“The burning of fossil fuels like coal is the main driver of climate change, which is already wreaking havoc on Queensland communities. New coal mines cannot proceed in a world that is teetering on the brink of climate collapse.
“These coal mines also expose the hollowness of recent claims by BHP targeting QLD’s tiered coal royalty system. If QLD’s coal royalties really were to blame for BHP’s decision to mothball a mine and sack workers, it would not be pursuing three new coal expansions in the state.”
Will van de Pol, Chief Executive, Market Forces said, "BHP claims it's committed to building a better world, and if so, it must drop its destructive coal expansion plans and manage down production in line with the climate goals of the Paris Agreement."
"Investors need to bring BHP into line and secure a responsibly managed coal phase out that protects shareholder value, as well as workers, communities and the environment."
ENDS
Background:
BHP’s three planned Central QLD projects are are:
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Peak Downs Mine Continuation Project: 1.13 billion tonnes of coal, three billion tonnes of climate pollution, mining coal for 93 years out to 2116. (source here)
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Saraji East Mining Lease Project. An entirely new “greenfield” coal mine. 110 million tonnes of coal, mining until 2045. (source here)
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Saraji Mine Grevillea Pit Continuation Project: 33 million tonnes of coal, mining until 2055 (source here)
*Saraji South was included in the analysis because it will continue operating until November and will be placed in care and maintenance - not closed and rehabilitated.
Lock the Gate’s analysis comes after new research identified BHP as one of the world’s biggest climate polluters, having contributed 11.162 billion tonnes of carbon dioxide to the world’s total carbon emissions between 1955 and 2023. This represents 0.55% of the global total and puts BHP at 29th out of 180 corporate and state entities around the world that have together contributed the most to global warming since 1854 (See appendix 1).