Sonia Scarselli: BHP Disrupting Exploration to Meet Energy Transition Goals

Speaking to the Investing News Network, Sonia Scarselli, vice president of BHP Xplor, discussed the importance of disrupting the exploration industry in order to secure supply of the commodities needed for the energy transition.

"The reality is that to underpin the energy transition we do need critical resources. We think today that supply needs to double for copper and quadruple for nickel," she said. "We're just too slow to get it in time for actually achieving the goals that have been put forward — so definitely accelerating the front end of the lifecycle of these resources is fundamental."

BHP Xplor is an accelerator program that was created in mid-2022 by major miner BHP (ASX:BHP,NYSE:BHP,LSE:BHP). Its goal is to fast-track innovative, early stage exploration startups that are working to find the materials needed for the energy transition.

The 2023 cohort consists of Tutume Metals, Impact Minerals (ASX:IPT), Asian Battery Minerals, Red Ox Copper, Bronzite Exploration, Nordic Nickel (ASX:NNL) and Kingsrose Mining (ASX:KRM). Scarselli explained that these seven companies are the first to go through the program, and will receive financial, operational and technical support from BHP for six months.

At the end of those six months, the companies will have the chance to pitch BHP for further investment.

"For us it's very exciting, and the companies are fantastic," Scarselli said.

Underscoring the need for BHP Xplor's initiative, she pointed out that resource exploration tends to move slowly as companies raise money in increments and take small steps forward at the assets they focusing on. "That cannot sustain the supply that the world is requiring for the energy transition. It just can't happen," she said. "We need to invest differently, so … we are focusing on the fuller exploration activities and we're focusing on understanding quickly — do we have a discovery or not?"

In her view, companies could also benefit from taking a more holistic approach to their properties.

"So even in the exploration phase, start to think about how the development looks, what does the ESG footprint look like. Start to think about that early, not in phases, but actually in parallel," she explained. "All of that can disrupt our way of thinking about mining, and can definitely enable us to deliver the supply that we actually have to deliver."

BHP Xplor will begin recruiting for its 2024 cohort in September, and Scarselli encouraged interested parties to apply.

"Don't be shy to apply … we hope to see as many new ideas as possible," she said at the Prospectors & Developers Association of Canada (PDAC) convention. "We're not just looking to the conventional miners. We want to hear from academia; we want to hear from disruptors from other industries as well. We are open to any different type of new concept on the exploration space."

Watch the interview above for more from Scarselli on BHP Xplor and the need for innovation in exploration and mining. You can also click here for the Investing News Network's full PDAC playlist on YouTube.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Impact Minerals and Nordic Nickel are clients of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.