BHP South Flank Project and Banjima People

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 In 2021, BHP officially launched its South Flank project in Western Australia. The
new mining site is the world’s largest iron ore operation, and it is projected to produce
70 million tonnes of iron ore annually (BHP, 2022). Although it is a big milestone for
Australia’s mining industry, it pervades the Banjima people’s land and culture.

The Banjima people are a group of Aboriginal Australians, who reside in the
Pilbara region of Karratha, Roebourne, Onslow and Port Hedland (BNTAC). They share
a long-established culture and a strong bond to the ancient landscape of the region.
Specifically, they speak the Ngayarda subgroup of the Pama-Nyungan languages,
which has been historically conserved by its native speakers (BNTAC). In 2014, the
Banjima people’s rights and interests were officially recognised by Australian law
through the Native Title determination.

Definitively, the land of the Banjima people is rich in natural resources which play
a significant economic importance to the Australian economy. This makes it a
development hotspot for mining companies to expand their operation. In the case of
BHP, they have been extracting iron ore in this region for many decades. Most recently,
BHP has invested 2.9 billion in capital expenditure for the South Flank project, which
extends its operation in the Pilbara region (BHP, 2022). This contributes to the support
activities of the firm, specifically the Procurement aspect of Porter’s Value Chain (Saud
Z, 2018). Evidently, the South Flank project will allow BHP to extract more minerals as
there is a substantial increase in land inputs. Notably, the increase in production
capacity will generate more value for the resource-based economy in the region.

There is no doubt that the actions of BHP have disturbed and disrupted the lives
of the Banjima people. During a senate inquiry in 2018, Banjima elders claim that they
have to “trade away their heritage” to compensate for the South Flank project (Allam L,
2020). They claim that their negotiation with mining companies has been forced due to
the imbalance of power (Allam L, 2020). Simply, the elders didn’t have a choice or say

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about the limits of BHP’s actions in the region, instead, they were pressured to accept
the proposed deal by the mining company. Shockingly, the WA government has given
approval to BHP for the destruction of up to 86 heritage sites in the central Pilbara
(Allam L, 2020). These include sites of arts, rock shelters and artefacts that have been
occupied for over 40,000 years. Although the South Flank project is contributing to the
financial interest of the company and the regional economy, it clashes with the cultural
interest of the Banjima people.

This has led to the establishment of the Heritage Advisory Council to consult
appropriate heritage management practices to guide BHP’s operations (BHP, 2020).
This demonstrates that BHP puts a strong emphasis on corporate social responsibility,
CSR, because they are responding to the issues raised by the local communities. For
instance, BHP’s annual report states that its land use is “responsive to the aspirations of
Traditional Owners and in compliance with the law” (BHP, 2022). This builds upon the
20-year relationship between BHP and the Banjima, which ensures shared economic
development in the region (BHP, 2020). Importantly, the Banjima people are not only
the benefactors of the CSR, instead it also generates symbolic value for the end
customer. This is because the end customer indulges the fact that BHP recognises the
traditional owners of the land they operate in. It makes them credible customers, who
respect the heritage, lore, language and custom of the indigenous people.

Additionally, the South Flank project is boosting indigenous employment in the

mining industry. Specifically, more than 70% of the Mining Area C of the South Flank
project is employed by Aboriginal Australians (BHP, 2022). This contributes to the
support activities of Human Resource Management (Saud Z, 2018). For instance, the
work is completed by locals, who have expertise in the surrounding area and
environment. Moreover, it creates a diverse team of individuals from all backgrounds,
which promotes creative and innovative ideas. As BHP employs more suitable
candidates for the job, the productivity and performance of their employees increase.

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 Despite the controversy around the South Flank project initially, BHP was able to
successfully execute the project in a respectful and cooperative manner. The project
boosts procurement and human resource management values, and it endorses its CSR.

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Bibliography:
Allam, L. (2020) Banjima people caught up in BHP's Pilbara mine expansion say they
were forced to 'trade away' heritage, The Guardian. Guardian News and Media.
Available
at:https://www.theguardian.com/australia-news/2020/aug/20/banjimapeople-
caught-up-in-bhps-pilbara-mine-expansion-say-they-were-forced-to-tradeaway-
heritage (Accessed: October 3, 2022).

Banjima Country & Community (no date) BNTAC. BNTAC. Available at:
https://bntac.org.au/photogallery/banjima-country-community (Accessed: October
3, 2022).

Banjima elders to advise on South Flank Heritage (2020) BHP. BHP. Available at:
https://www.bhp.com/news/media-centre/releases/2020/09/banjima-elders-to-adv
ise-on-south-flank-heritage (Accessed: October 3, 2022).

BHP Annual Report 2022 (2022) BHP. BHP. Available

at:https://www.bhp.com/investors/ annual-reporting (Accessed: October 3, 2022).

Saud, Z. (2018) Porter's value chain: Understanding how value is created within
organizations, Mindtools. Mindtools. Available at:https://www.mindtools.com/
pages/article/newSTR_66.htm (Accessed: October 3, 2022).

South Flank (2022) BHP. BHP. Available at: https://www.bhp.com/careers/get-to -know-

our-business/south-flank (Accessed: October 3, 2022).

WA Iron Ore to double spend with Pilbara Traditional Owners and Indigenous
Businesses (2022) BHP. BHP. Available at:https://www.bhp.com/news/articles/
2022/05/wa-iron-ore-to-double-indigenous-business-spend (Accessed:October 3,
2022).

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