BHP has quietly scrapped plans for an iron ore processing facility in the Pilbara that would have cut emissions by 1.7 million tonnes a year, according to leaked documents seen by the Guardian and Four Corners. The Jimblebar beneficiation plant, which was well advanced in its planning stages in 2025, would have produced higher quality iron ore sought by steelmakers under pressure to reduce their own pollution.
The project was internally rated as having “excellent social value” and being “well-aligned” with BHP’s shareholder-endorsed climate plan and decarbonisation targets. It would have reduced scope-three emissions—those released by customers—by the equivalent of taking more than 350,000 cars off the road annually, or about three-quarters of the emissions from BHP’s entire Western Australian iron ore division.
However, in June 2025, BHP cancelled all further work on the plant, citing marginal economics and competition for capital from other projects. The decision is the latest in a series of shelved or delayed emissions-reduction initiatives, including a 50MW solar and 20MW battery project that had board approval, and a larger 500MW renewable energy system.
BHP has also continued to acquire polluting diesel trucks for its Pilbara operations despite pledging to electrify its fleet, and has explored options to delay major investments needed to meet its net-zero by 2050 target. The company spent US$60 million on reducing potential scope-three emissions in 2024-25 and is assessing other methods to cut steelmaking emissions, including carbon capture and electric smelting furnaces.
The cancellation comes as Chinese steelmakers face growing government pressure to cut emissions, including expansion of the national emissions trading scheme to steel production and requirements to increase green energy use. The European Union’s carbon border adjustment mechanism is also making emissions-intensive Chinese steel more costly, putting pressure on Australia’s A$100 billion iron ore exports to China.
