BHP is scaling back decarbonization projects at its iron ore operations – media reports

Mining company BHP Group is scaling back key decarbonization projects at its iron ore operations in Western Australia. Bloomberg reports this, citing leaked internal documents reviewed by The Guardian and Four Corners.

In doing so, the company is slowing down the climate strategy it had positioned as central to its long-term growth plans, the agency notes.

According to the documents, BHP has postponed a project approved by the board of directors to build a solar power plant and battery storage facility at the Jimblebar mine, and has also delayed a 500-megawatt solar, wind, and battery storage system project. In addition, the company has abandoned plans for a low-emission iron ore processing plant.

According to a BHP spokesperson, by the middle of last year, the company had reduced emissions by 36% compared to the 2020 baseline. This progress was driven by shifting 70% of total electricity consumption to renewable sources. However, many technologies the industry will need to achieve net-zero emissions—particularly in heavy earthmoving equipment and bulk transport machinery—are not yet ready for deployment.

According to a company representative, BHP is working with partners to develop electric haul trucks and locomotives to support the accelerated adoption of this technology.

Companies across various sectors, Bloomberg notes, have recently taken steps to water down their emissions reduction commitments amid rising costs, a lack of available technologies, or political pressure. Rio Tinto Group, BHP’s biggest competitor, lowered its projected decarbonization costs through 2030 to $1–2 billion last December, down from a previous estimate of $6 billion.

It is worth noting that BHP Group was able to increase iron ore production by nearly 1 million tons in 2025 thanks to the implementation of AI-based solutions. Computer vision technology reduced downtime and improved efficiency.