BHP's Procurement Team Unlocking Efficiency in Mining

BHP’s Western Australian Iron Ore (WAIO) haul trucks are set to deliver tens of millions of dollars in additional revenue each year.

This is thanks to a targeted engineering fix developed through collaboration between procurement, engineering and suppliers.

The WAIO haul truck fleet is tipping around an extra 127,000 tonnes of iron ore a month. This equates to about 1.52 million tonnes a year.

It is being achieved with the help of newly designed and developed hoist cylinders fitted under the trays of the trucks.

Previously, some trucks within WAIO were unable to fully empty their loads because the trays were limited by how high they could hoist and tip.

Thanks to innovation from the South Flank Operations and Engineering teams, the newly produced hoist cylinders allow the trays to tip higher.

This technical adjustment reduces the number of times product is carried back in the trucks by 54%.

Collaborating with global suppliers

Working with JC Cylinders, a China-based supplier, the Engineering and Global Procurement teams designed a fit-for-purpose engineering solution.

This cross-functional group successfully trialled the design before scaling implementation at South Flank.

Rashpal Bhatti, BHP Group Procurement Officer, says: “These bespoke cylinder hoists have been a tipping point for haul truck productivity, resulting in a 54% reduction in the number of times product is carried back in the truck.

“It’s a small solution with a big impact – we’re tipping the productivity uplift to unlock tens of millions of dollars in additional revenue every year.

“We see every dollar we spend as a lever for performance and progress. This is how we can help proactively create the conditions for long-term competitiveness and true operational innovation.

“The scale of our global procurement spend gives us a unique opportunity to shape how we innovate across our supply chain and achieve solutions that deliver cost reduction, productivity, resilience and safety.”

Rashpal leads the global procurement business from Adelaide, Australia, where he manages the company’s global spend.

This initiative serves as another example of how BHP is helping to improve the performance of global mining operations.

Driving smarter mining operations

The company is also using AI to find practical ways to improve safety, reliability and performance while meeting rising demand for critical minerals.

From supporting teams in identifying new mineral deposits to running large processing plants and transport networks, AI is moving beyond experimentation.

It is becoming part of day-to-day operations across the global portfolio.

“AI is no longer a future concept for BHP. It is increasingly part of how we run our operations.

“Our focus is on applying it in practical, governed ways that support our teams in achieving safer, more productive and more reliable outcomes,” says Johan van Jaarsveld, BHP Chief Technical Officer.

According to Johan, the focus is on practical application.

This approach ensures that the technology supports teams in achieving reliable outcomes rather than just existing as a conceptual tool.

Digital value chain transformation

BHP is deploying AI throughout its mining value chain to manage operational complexity and variability.

Key applications include several strategic areas that enhance the entire mining process.

• Exploration and resource discovery is enhanced by AI analysing decades of geological data to help geoscientists identify promising areas earlier and reduce exploration risk, while keeping final decisions with human experts.
• Processing plant optimisation is utilised at the Escondida copper mine in Chile, where AI-powered digital models help operators predict how ore variability and setting changes affect plant performance, enabling virtual testing ahead of real-world implementation.
• System reliability is improved through computer vision systems that monitor conveyors, crushers and rail networks in Chile and Western Australia to detect issues such as spillage or foreign objects, triggering early alerts and automatic responses that prevent equipment damage and downtime.
• Safety reporting is streamlined via a voice-to-text mobile app that lets field workers instantly log hazards with automatic geotagging and historical data linkage, enabling faster risk assessments and prioritised safety responses.

Together, these AI tools help teams maintain safe, continuous operations at scale while reducing risk and improving efficiency.