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1.4.1 Who we are 1

Our Operating Model Strategic Report

Operated assets
Western Australia Iron Ore
Queensland Coal (BMA and BMC)
New South Wales Energy Coal
Olympic Dam
Nickel West

Minerals Australia

Assets Petroleum

Operated assets
Shenzi
Angostura
Operated assets Pyrenees
Escondida Macedon
Minerals Americas
Pampa Norte Onshore US
Jansen Non-operated assets
Non-operated assets Atlantis
Antamina Mad Dog
Cerrejón Marketing Bass Strait
Samarco North West Shelf
and Supply

Functions

Leadership

We have a simple and diverse portfolio of tier one assets around Marketing and Supply: Our commercial businesses optimise
the world, with low-cost options for future growth and value creation. our working capital and manage our inward and outward supply
This allows us to apply our values and culture, emphasise safety chains. Our Marketing business sells our products, gets our
and productivity, deploy technology and exert capital discipline commodities to market and supports strategic decision-making
to extract the most value and the highest returns from our assets. through market insights. Supply sources the goods and services
Our Operating Model allows us to leverage our expertise across we need for our business, sustainably and cost effectively.
our business, with multifunctional teams that connect across the Functions: Functions operate along global reporting lines to provide
organisation to share best practice, make us safer and solve support to all areas of the organisation. Functions have specific
problems together. accountabilities and deep expertise in areas such as finance, legal,
Assets: Assets are a set of one or more geographically proximate governance, technology, human resources, corporate affairs,
health, safety and community.
operations (including open-cut mines, underground mines and
onshore and offshore oil and gas production and processing Leadership: Our Executive Leadership Team (ELT) is responsible
facilities). We safely produce a broad range of commodities through for the day-to-day management of the Group and for leading the
these assets. Our operated assets include assets that are wholly delivery of our strategic objectives. The Operations Management
owned and operated by BHP and assets that are owned as a joint Committee (OMC) has responsibility for planning, directing and
operation and operated by BHP. Our non-operated assets include controlling the activities of BHP, including key Group strategic,
interests that are owned as a joint venture but not operated by BHP. investment and operational decisions, and recommendations
Asset groups: We group our assets into geographic regions in to the Board.
order to provide effective governance and accelerate performance We disclose financial and other performance primarily by
improvement. We do this through sharing and replicating best commodity. This provides the most meaningful insight into
practices, combining efforts to take advantage of our scale and the nature and financial outcomes of our business activities
through common improvement initiatives. Our oil and gas assets and facilitates greater comparability against industry peers.
are grouped together as one global Petroleum asset group,
reflecting the operating environment in that sector. This allows
us to share best practice and promote new technology across
our portfolio.

BHP Annual Report 2017 11