How BHP’s Procurement is Unlocking Revenue 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 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, or about 1.52 million tonnes a year, 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 BHP’s South Flank Operations and Engineering teams, the newly produced hoist cylinders allow the trays to tip higher, reducing the number of times product is carried back in the trucks by 54%. 

The scale of global procurement spend

Working with JC Cylinders, a China-based supplier, BHP's Engineering and Global Procurement teams designed a fit-for-purpose engineering solution and successfully trialled it 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, South Australia, where he manages the company’s global spend.

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

AI driving safer, smarter 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 and becoming part of day-to-day operations across BHP’s 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,” adds Johan van Jaarsveld, BHP Chief Technical Officer.

Digital transformation across the mining value chain

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

• Exploration & Resource Discovery – AI analyses 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 – At the Escondida copper mine in Chile, 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 – Computer vision systems 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 – A voice-to-text mobile app 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.