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Rehabilitation of mining and resources projects Senate Environment and Communications References Committee 12 May 2017 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 Contents Executive summary About BHP Billiton Meeting our rehabilitation responsibilities Examples of closure and rehabilitation in practice Additional biodiversity support activities 1 2 3 7 9 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Executive summary Executive summary BHP Billiton is one of Australia’s largest companies, with substantial positions in iron ore, metallurgical and thermal coal, copper and oil and gas.
Founded in Australia over 130 years ago, we maintain an extensive presence with major assets in New South Wales, Queensland, South Australia, on and offshore Western Australia, and offshore Victoria.

We acknowledge that the nature of mining operations can have significant environmental impacts if not effectively managed.

Our long history grants us a clear perspective on the importance of managing our assets throughout their entire lifecycle and the need to plan for closure and rehabilitation effectively.
Closure and rehabilitation planning touches many areas of our operations and is an important consideration throughout the lifecycle of our assets.

Progressively rehabilitating land no longer required for our activities is integral to managing our impacts on land and biodiversity.

Our operations are required to maintain rehabilitation plans that support life of asset and closure management.

These plans guide how we rehabilitate disturbed areas.
Each of our operated assets has a closure and rehabilitation plan and a corresponding financial assessment to manage closure-related risks over the life of the asset.

Our internal audit function tests the effectiveness of these plans and their alignment to the closure-planning framework.

We believe that the existing division of responsibilities between the Commonwealth and the States and Territories in regulating mine closure and rehabilitation remains appropriate.
Nonetheless, there is an opportunity for State and Territory governments to work together to harmonise approaches that could lead to improved transfers of knowledge of leading rehabilitation practice across the country.

1 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton About BHP Billiton About BHP Billiton BHP Billiton is among the world’s top producers of major commodities, including iron ore, metallurgical coal, and copper.
We also have substantial interests in oil, gas and energy coal.

Figure 1: Our presence in Australia We have an extensive presence in Australia, dating back 130 years.

Our Australian Assets include iron ore and nickel assets in Western Australia, a copper, gold and uranium asset in South Australia, metallurgical coal assets in Queensland, energy coal assets in New South Wales, and offshore oil and gas assets in north- western and south-eastern Australia (see Figure 1).
Our strategy is to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market.

We operate in a dynamic, globally competitive environment.

Our strategy has delivered strong performance over time, which has created sustainable value for our shareholders, customers, employees and the communities in which we operate.
In everything we do, we are guided by Our BHP Billiton Charter values of:  Sustainability – putting health and safety first, being environmentally responsible and supporting our communities Integrity – doing what is right and doing what we say we will do   Respect – embracing openness, trust, teamwork, diversity and relationships that are mutually beneficial  Performance – achieving superior business results by stretching our capabilities  Simplicity – focusing our efforts on the things that matter most  Accountability – defining and accepting responsibility and delivering on our commitments.
Our BHP Billiton Charter embodies our common purpose, our values, how we measure our success and the basis for our decision-making.

Supporting Our Charter is our BHP Billiton Code of Business Conduct, which helps guide our daily work.

It demonstrates how to practically apply the commitments and values set out in Our Charter and is reflected in many of the standards and procedures we apply throughout our organisation.
BHP Billiton is proud of the contribution it makes to the Australian economy and the benefits this contribution brings to Australia’s standard of living.

We have paid US$58 billion in Australian taxes and royalties over the last ten years.

In 2015-16, we paid US$2.5 billion in wages and benefits to our approximately 16,000 Australian employees, and US$8 billion in payments to our suppliers and contractors in Australia.
We also invested US$179 million in voluntary social investment, including community programs and activities across the globe.

2 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Meeting our rehabilitation responsibilities Meeting our rehabilitation responsibilities Our approach BHP Billiton recognises that both standards and community expectations for rehabilitation have evolved over time.
We strive to set the standard in environmentally responsible mining, including in rehabilitation and closure.

We are also committed to continuously improving our rehabilitation and closure processes though refining our onsite activities and the performance standards we set for ourselves.

Closure is a key component of our asset planning and is considered throughout all stages of operations at BHP Billiton.

When we first plan a mine, we also plan for rehabilitation.
This recognises that closure is an inevitable part of the natural resources extraction lifecycle.

It is also an acknowledgement that the nature of mining operations can have significant environmental impacts.

Minimising these impacts is critical to fulfilling our environmental responsibility and maintaining the trust of the communities in which we operate.
Our approach to closure and rehabilitation is driven by:  Our Charter values – as the leading value in Our Charter, sustainability is at the heart of everything we do.

As the mining lifecycle extends from exploration through to rehabilitation and closure, many of our operations are intergenerational and will continue operating over decades or even centuries.

This enables us to create enduring social, environmental and economic value wherever we operate.
  Internal frameworks and controls relating to health, safety, community, environmental practice, resource planning and development, mine management, risk management and assurance, climate change, and finance.

Industry leading practice – we are involved, either directly or through industry association membership, in the development and promotion of leading practice guidance on mine closure and rehabilitation.
Examples include the Integrated Mine Closure Planning Toolkit published by the International Council on Mining and Metals; the Strategic Framework for Mine Closure published by the Australian and New Zealand Minerals and Energy Council and the Minerals Council of Australia (MCA), and Enduring Value published by the MCA  Regulatory requirements – our mineral assets are subject to State mining and environmental protection legislative and regulatory regimes covering the full lifecycle of our assets including closure and rehabilitation.
Some of our these are also subject to closure and rehabilitation conditions under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) and the Native Title Act 1993 (Cth) (through Indigenous Land Use Agreements)  A national team of closure planning and rehabilitation specialists with coverage across our Minerals Australia operations, driving performance improvements and facilitating the sharing and rapid replication of best practice across our operations  Our ongoing consultations with our stakeholders, including the communities in which we operate.
More information on our broader approach to minimising environmental impacts over the mining lifecycle can be found in our Sustainability Report 2016 (link).

Rehabilitation and closure planning Planning for closure and rehabilitation of BHP Billiton assets and closed sites/assets is an ongoing focus of the Company given the potential impact on reputation, licence to operate, operational activities, current and future cash flows and associated accounting provisions.
BHP Billiton’s closure planning requirements have evolved over time, transitioning in 2004 from being site and commodity based to companywide closure planning requirements and have been subject to ongoing review and improvement - enabling continuity and effectiveness of application over time.
We have a suite of internal performance standards and processes for closure and rehabilitation activities which are comprehensively reviewed and updated on an ongoing basis as part of our commitment to continuous 3 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Meeting our rehabilitation responsibilities improvement.

Figure 2 summarises the outcomes-based hierarchy that underpins our closure and rehabilitation planning.
It is worth noting that:  Final land use (the first of our guiding principles) plays a significant role in closure and rehabilitation planning.
Important factors that are considered in the planning process to determine post-mining land use include: (1) meaningful stakeholder engagement; (2) capacity of the land to support potential post-closure land uses; (3) long-term environmental and demographic trends; (4) regulatory and tenure requirements; and (5) proximity to communities, major infrastructure, water sources, conservation estates and areas of high biodiversity.
 Completion criteria are important measures against which implementation of closure objectives and guiding principles can be assessed.

Completion criteria cover the full scope of the guiding principles and are progressively developed over the life of the mine with increasing detail and refined metrics over time.

We recognise that completion criteria must be consistent with those stated in leading practice guideline documents (such as the Strategic Framework for Mine Closure).
 Progressive rehabilitation is an important focus of the mine planning process.

It provides a means to reduce closure liabilities and restore the local environment prior to the end of mine life.

Our mine plan processes incorporate progressive rehabilitation when land becomes available (i.e.

the area is no longer operational and will not be required for future operations).
Figure 2: Outcomes-based hierarchy for closure and rehabilitation Minimising the impacts of post-mining landforms (such as pits, rock dumps and tailings storage facilities) is a standard component of the closure planning process.

BHP Billiton uses a range of technical assessment, modelling and analysis tools to understand and manage the impacts associated with post-mining landforms.

For example these include baseline soil surveys, hydrogeological predictive modelling, and visual impact assessment.
Our approach is to consider individual characteristics on a case-by-case basis to develop a safe, stable and non- polluting landform, and to pursue optimal closure outcomes.

Closure plans are progressively updated throughout the life of a mine and are implemented through mine operations and rehabilitation standards and procedures.
During mining operations, we focus our planning on ensuring the schedule for the extraction of the orebody, and the placement of mine overburden are coordinated with the agreed closure plan.

During the closure and rehabilitation phase of mine life, the focus moves to earthworks which develop the end landform and revegetation.

It is important to highlight that final landform and revegetation is planned progressively and is implemented once the area becomes available.
Final revegetation of a specific area can only occur after the final landform has been constructed and at times this can be over a protracted period of time for a large active mine.

BHP Billiton’s closure planning framework is subject to robust internal governance processes that cover closure plan content, cost estimation and valuation processes which are discussed in the following section.
4 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Meeting our rehabilitation responsibilities Compliance with regulatory and internal Company requirements is monitored via a number of checks including regulators undertaking ongoing inspections (including audits against approval conditions), and the public reporting of rehabilitation activity in BHP Billiton’s annual Sustainability Report.
Closure and rehabilitation provision accounting Closure planning and cost estimation is undertaken by multidisciplinary teams.

An independent closure planning team provides the capability to derive the estimated closure cost that is a key input into the closure and rehabilitation accounting provision (Accounting Provision).

The process for determining the closure cost estimates and the Accounting Provision is governed by BHP Billiton’s closure planning and financial reporting control frameworks.
The Accounting Provision is prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations as issued by the International Accounting Standards Board; Australian Accounting Standards, being Australian equivalents to IFRS; and interpretations as issued by the Australian Accounting Standards Board.

The Accounting Provision represents future estimated cash flows to complete closure and rehabilitation of sites.
The cash flow estimate is based on the current level of disturbance and the planned scope and cost of closure and rehabilitation activities.

The estimated cash flows are discounted to reflect the anticipated timing of planned expenditure (with our portfolio of long life assets, the significant closure activities in many cases are decades in the future).
The Accounting Provision is included in the Financial Statements disclosed within the BHP Billiton Annual Report that are subject to independent external financial audit.

As at 30 June 2016 BHP Billiton reported an Accounting Provision of US$6.5 billion (A$8.7 billion).

Of this, US$4.0 billion (A$5.3 billion) was related to Australian assets (including our offshore petroleum assets and off-site infrastructure).
Further information on the methodology used to recognise and measure our Accounting Provisions can be found in Note 14 to our 30 June 2016 Financial Statements (link).

Financial assurance mechanisms All of the States and Territories in which BHP Billiton operates utilise some form of financial assurance or regulatory controls to mitigate against the risk of companies defaulting on their rehabilitation obligations.
BHP Billiton provides closure and rehabilitation securities as required by relevant State regulators.

The financial securities differ from the Accounting Provisions due to differences in cost estimate protocols for externally imposed financial securities and accounting procedures.

In Western Australia, all mining and resources projects operating under the tenure of the Mining Act 1978 (WA) are required to contribute to the levy-based Mining Rehabilitation Fund (MRF).
In South Australia, BHP Billiton has developed a comprehensive closure plan for its operations at Olympic Dam.

This plan: (1) identifies and assesses closure risks, and details possible mitigation measures; (2) sets environmental outcomes to be achieved post mine closure; and (3) defines assessment criteria that demonstrate the environmental outcomes have been achieved.
The closure plan, which forms part of the site Environmental Protection and Management Program, has been submitted to, and approved by, the South Australian Government, is enforceable under the Indenture between BHP Billiton and the Government, and the Indenture Minister can require the plan to be reviewed at any time.
In New South Wales and Queensland, mining and resources projects are required to provide a financial security to cover expected rehabilitation costs in the event that the respective companies default on their closure and rehabilitation obligations.

The bonds are determined using methodologies developed by relevant jurisdictional authorities.
We recognise that industry environmental performance is often judged as a whole and rehabilitation defaults by poor performers have the potential to damage the social licence to operate of the entire industry and recognise the need for governments to have access to capital for site rehabilitation in the event of company default.
Security bonds provide two levels of protection for government:  Security bonds incentivise companies to complete rehabilitation so they can recover the bond 5 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Meeting our rehabilitation responsibilities  Security bonds provide governments with access to the capital required to rehabilitate a site if a company defaults.
Conversely, levy-based mechanisms, can be less effective at mitigating default risks than other types of financial assurance.

The reason for this is twofold:   Levy-based mechanisms generally do not differentiate between the financial health of, or insolvency risk posed by, individual companies.

Security-based mechanisms, in contrast, explicitly consider insolvency risk through the service charge rates imposed by financiers Levy-based mechanisms have the potential to create a ‘moral hazard’.
Specifically, under a levy-based system, less financially robust or scrupulous companies may be less inclined to prepare for closure adequately, knowing that communal funds exist to cover their rehabilitation obligations.

The role of Federal and State Governments The closure and rehabilitation of mining projects is governed by State and Territory legislation.

We believe this should continue without further legislative or regulatory interventions by the Commonwealth.
The States and Territories are the most appropriate level of government to have authority over mining rehabilitation for three key reasons:  The Commonwealth does not possess the on-ground capacity to undertake site level regulatory enforcement.

 Successful mining rehabilitation requires significant and ongoing engagement with the local community over an extended period of time.
State and Territory authorities are the most appropriate tier of government to be a party to local level of community engagement in the form of community consultation committees and local environmental conservation groups.

We do not believe the Commonwealth is appropriately positioned to oversee this sort of community level engagement.

 State and Territory Governments ultimately bear the greatest proportion of risk in the event of a rehabilitation default.
As such, they should be the decision maker that determines what level of financial assurance is appropriate for the risk of each project.

State and Territory Coordination We believe there is an opportunity for State and Territory authorities to more closely coordinate closure and rehabilitation approaches.

Greater consistency would make it easier for companies operating in multiple jurisdictions to transfer the expertise they have gained in one jurisdiction to another.
Given the relatively small pool of highly experienced rehabilitation practitioners in Australia, this would enhance the ability of these experts to deliver better environmental outcomes across the country.
By coordinating arrangements, governments should seek to:  Maintain the outcomes-based approaches embedded in most existing State and Territory frameworks – such approaches represent best practice, in that they provide industry with ‘increased flexibility and an incentive to develop more efficient and effective technological solutions to meet the required outcome’1  Preserve the One-Stop Shop arrangements for environmental approvals between the Commonwealth and the States and Territories – harmonisation should not be used as an opportunity to increase the regulatory burden on mining proponents; and  Provide clear expectations of the relinquishment process and its key decision points - to provide certainty for investment purposes 1 Miranda Lello (2014), ‘An Australian Government perspective on developing an outcomes-based environmental approval system’, Department of Environment.
6 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Examples of closure and rehabilitation in practice Examples of closure and rehabilitation in practice Below we present three rehabilitation case studies from different environmental conditions and commodities demonstrating the broad spectrum BHP Billiton’s rehabilitation work encompasses across its Australian assets.
Upper Hunter Cattle Grazing Study (NSW – Coal) In June 2014 we commenced a four year trial to evaluate the feasibility and commercial sustainability of livestock grazing on rehabilitated mining land and whether the land would offer a commercially sustainable option for grazing livestock.
The Grazing Study is one of the key projects being undertaken as part of the Upper Hunter Mining Dialogue, which brings together local community and business groups, government and local miners to address some of the challenges and concerns about mining in the Upper Hunter.
The study was designed by and is monitored by the NSW Department of Primary Industries in collaboration with the Upper Hunter Mining Dialogue Joint Working Group - Land Management, including representatives from agricultural groups, local farmers, environmental groups, state and local government and the mining industry.
The beef cattle grazing trial is being conducted on land progressively rehabilitated from BHP Billiton’s Mt Arthur Coal site, and a site of another operator in the region, in addition to a nearby control site of natural pasture on unmined land.

The results between rehabilitated and unmined land are independently monitored and compared.
At the halfway mark the study has achieved encouraging results with the weight gain of cattle at both rehabilitated land trial sites outperforming the cattle grazing on the control site.

At their final weigh-in some cattle were found to be up to 150 kilograms heavier than cattle grazed on unmined farming land.
The study is now entering its second stage, which includes the introduction of herds of weaner steers to the rehabilitated and control sites to comprehensively test the carrying capacity of the paddocks and continue studying their performance across seasonal conditions.

Pilbara rehabilitation (WA – Iron ore) BHP Billiton Western Australia Iron Ore’s mine, rail and port operations occupy more than 19,000 hectares of the Pilbara region of Western Australia.
Mine rehabilitation in the Pilbara faces a wide range of challenges, not least of which is its arid climate and rainfall patterns which are characterised by isolated thunderstorms or cyclones during the summer months.

Another serious constraint is that certain species seed only once every few years, which hinders annual revegetation works.

The dramatic fluctuations in rainfall in the Pilbara mean that traditional revegetation methods, such as using nursery seedlings are unlikely to succeed.
The innovative ‘Sowing the Seeds for Success’ program focuses on the use of seed to revegetate land.

To date, around 2,500 hectares of land has been successfully rehabilitated across BHP Billiton sites in the Pilbara.

At the heart of the program is the need to better understand and best use available seed.

Findings from research partnerships with the Botanic Gardens and Parks Authority (BGPA) and the University of Western Australia (UWA) supplement ongoing field activities.
Over the past five years, the program has led to significant improvements in all facets of seed management, including identifying seed requirements, availability, viability, collection, storage, treatment, germination, and species knowledge that informs rehabilitation programs.

To complement the Sowing the Seeds for Success program, BHP Billiton has developed the Pilbara Seed Atlas, a set of guidelines for the efficient use of seeds in rehabilitation programs.
The atlas includes a seed-use manual and plant identification guide, with species-specific findings for over 80 plant species.

The project, completed in 2014, involved extensive and detailed studies by researchers from the Science Directorate of the BGPA and BHP Billiton employees into native Pilbara species.

Not only is the seed atlas a comprehensive field guide for seed identification and the collection of local species, it will be an essential resource to drive improved rehabilitation outcomes.
The 7 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Examples of closure and rehabilitation in practice seed atlas has been made publicly available to benefit environmental management practices across the whole of the Pilbara region.

More than 70 per cent of species contained in the seed atlas are difficult to propagate.
While much progress has been made to understand these problems, overcoming them will require further research into seed management and the development of species-specific treatments.

Building on the findings from the Pilbara Seed Atlas, the Restoration Seed Bank Initiative is a five-year research partnership between BHP Billiton, the BGPA, and UWA focused on resolving key seed propagation challenges such as dormancy and germination.
The initiative is also aimed at the development of seed enablement technologies, new approaches to topsoil management and alternative growth media to overcome limitations to seedling establishment and plant growth.

Beenup (WA – Titanium minerals) The 335 hectare Beenup titanium minerals mine located in south-west Western Australia was closed in 1999.
Local and regional expectations for restoration of the site at closure were high and the technical challenges complex, given the post-mine environment required significant management to address acid sulfate soils, ensure landform stability and restore water quality and drainage in an environment upstream of two major rivers and a national park.
Key to successful restoration were the initial soil characterisation and handling strategies to ensure the long-term geotechnical and geochemical security of the site.

The subsequent restoration of the site much of which was on prior farmland, presented unique challenges due to an agreement after extensive government and community consultation, to re-establish 140 hectares of endemic vegetation communities, including some rare species, each with particular soil, hydrological and topographical requirements.
Stratigraphy, soil chemistry and hydrology studies and seed propagation studies were undertaken to characterise the site and regional ecosystems, influence the landform reconstruction and prescribe restoration zones based on the extent of modification and variability.

A master-planning process was initiated at the start of the rehabilitation project to develop end use options for the site.
The primary vision was ‘wetlands and adjacent rehabilitated areas providing an end-use of significant ecological, landscape and recreational value’.

This end-use option was also considered the optimal means of ensuring the long-term stability of naturally occurring pyrite (acid-forming) materials.
The complex aspects of the natural landscape presented opportunities to not only restore the mine-affected landscape (which was predominantly pasture prior to mining) but also to enhance the ecological landscape values and integrate the post- mining environment with the adjacent areas.

The Beenup Consultative Group, formed 10 years prior to mine closure, played an integral role in the evaluation of the rehabilitation options and remain active.
Now, 18 years after closure, over 90 per cent of the site has achieved floristic completion criteria requirements.

The site currently supports a diverse mix of vegetation types, wetland and upland habitats, open parkland and associated faunal assemblages.
Extensive surface and groundwater monitoring demonstrate achievement of the long-term objectives and engineered structures are stable and performing as designed Figure 3: Beenup, pre-and post-remediation Source: 2015 photo courtesy of Brian Combley, Beenup Consultative Group 1999 2015 8 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Additional biodiversity support activities Additional biodiversity support activities When considering how impacts from mining operations on the landscape can be mitigated, it is important to recognise that we undertake a broad range of biodiversity support activities in addition to rehabilitation.
These include environmental offsets, compensatory actions, and conservation activities funded through our extensive social investment program.

Given the extremely long life of most of BHP Billiton’s assets we see activities such as these as an important component in supporting regional biodiversity objectives while operating in the regions.
Across Australia, in many instances environmental offsets and compensatory actions are mandatory and implemented as part of the environmental approval requirements of state or Commonwealth environmental legislation.

However, we also undertake voluntary conservation programs where we recognised an environmental need.

BHP Billiton is undertaking a mix of such actions in each state where we operate.
WAIO The Company’s Western Australia Iron Ore Asset expects to contribute to the State Government’s proposed Pilbara Strategic Conservation Fund which is being established to pool environmental offsets for resource and infrastructure projects to fund strategic conservation projects benefitting the Pilbara region.

Another significant voluntary initiative is the Martu Living Desert Project supported through BHP Billiton’s Social Investment Program.
This is recognised as a conservation project of global significance which is working to conserve part of the world’s most intact arid ecosystem which is home to many of Australia’s most threatened species.

Through the project, Martu Traditional Owner ranger teams work together with scientists to continue traditional burning practices, control feral pests, rehabilitate water holes and protect threatened species like bilbies and rock-wallabies.
It is important to note that all of the Martu lands are situated outside of BHP Billiton’s tenure and as such do not influence our rehabilitation statistics in any way.

Olympic Dam Olympic Dam uses a combination of research and on-ground activities to meet its mandatory offset requirements, which comprise of targeted activities over extensive areas of BHP Billiton-owned pastoral leases.
In addition, BHP Billiton undertakes voluntary conservation activities through the significant Arid Recovery Project established at Roxby Downs, which is recognised nationally.

BMA, BMC and NSW Energy Coal Our joint venture Queensland Coal Operations (BMA and BMC) and NSW Energy Coal in the Hunter Valley, have specific parcels of land that have been purchased and covenanted, and have ongoing on-ground activities to maintain or enhance the biodiversity values of those areas.
In addition, voluntary conservation projects are established to support sensitive ecosystems.

An example of this is the Raine Island Recovery Project, a five year $7.95 million collaboration between BHP Billiton, the Queensland Government, and the Great Barrier Reef Marine Park Authority, which aims to protect and restore the island’s critical habitat to ensure the future of key marine species, including green turtles and seabirds.
Contributing to Environmental Resilience We take a risk-based and integrated approach to the management of impacts to land, biodiversity, water resources and air.

We require our operations to understand their baseline conditions and place priority on implementing the mitigation hierarchy within our area of influence to avoid, minimise and rehabilitate direct, indirect and cumulative impacts over both the short and long term.
In addition to the application of the mitigation hierarchy, we look beyond our own operations for opportunities to contribute to Environmental Resilience through supporting the conservation and sustainable use of natural environments for the benefit of future generations.

Through our conservation target, we seek to finance the conservation and continuing management of areas of high biodiversity and ecosystem value that are of national or international conservation significance.
9 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54 BHP Billiton Additional biodiversity support activities In FY2016, a major milestone was achieved with the Valdivian Coastal Reserve in Chile, which is an area of rich biodiversity and one of the world’s last temperate rainforests.
An innovative global partnership between The Nature Conservancy, Conservation International and BHP Billiton has facilitated the conservation and ongoing management of 50,000 hectares of the Valdivian Coastal Reserve.

Following the establishment of the reserve, BHP Billiton contributed US$11 million in FY2016 to establish an endowment to provide for the long-term management costs of the reserve.
The Alto Mayo REDD+ project managed by Conservation International Peru is currently supported by our two-year, US$5 million investment.

The Alto Mayo Protected Forest in Peru is of global significance and is home to Peru’s three endangered primates and numerous endemic plant and bird species.

It is also a critical source of fresh water to a large portion of the downstream Peruvian Amazon population.
The area is currently under threat due to unsustainable farming practices, leading to significant greenhouse gas emissions from deforestation, a loss of critical habitat and impacts to fresh water quality.

BHP Billiton’s support will enable alternative livelihood opportunities, including sustainable coffee growing and improved forest governance.
The Five Rivers Conservation Project was delivered by BHP Billiton, the Tasmanian Land Conservancy and Conservation International, and covers 11,000 hectares of land near Cradle Mountain and Lake St Clair.
The project incorporates areas that are covered by the Tasmanian World Heritage area, including old growth forests, wild rivers and alpine wetlands, and is habitat for a number of endangered species, including the Tasmanian devil, Tasmanian wedge-tailed eagle, spotted-tailed quoll, Clarence galaxias, Miena cider gum and grassland paper daisy.

The vast areas of productive native forests suitable for restoration and carbon sequestration will contribute strongly to ongoing economic and community benefit.
During FY2014, Five Rivers Conservation Project completed the design of its long-term financing mechanism, which has now been endowed.

10 Rehabilitation of mining and resources projects as it relates to Commonwealth responsibilitiesSubmission 54