Ladies and gentlemen, my name is Ken MacKenzie, and I'm your chair. Let me first thank Jack Buckskin for the insightful and warm welcome to country. I don't know about you, but I always find those welcomes to country quite moving. I'd like to acknowledge and pay my respects to the Kaurna people who are the traditional owners of this land on which we meet, and I'd also like to pay respect to their elders, both past and present, and extend that respect to other First Nations peoples who are joining us today. Welcome to BHP's 2023 Annual General Meeting, and we're delighted to be together in Adelaide today, and we are very proud of our operations in, and our connections to South Australia. So we're thrilled to be meeting you here today in person in Adelaide.
Today, I'm joined on stage by Chief Executive Mike Henry, Group Company Secretary Stefanie Wilkinson, and my fellow directors. We also have our external auditors from Ernst & Young, and Chief Financial Officer David Lamont in attendance, as well as other members of our executive leadership team. I'd like to take this opportunity to thank Terry Bowen, who will retire from the board at the conclusion of this AGM. Terry joined the board in 2017, and I'd like to thank Terry for his outstanding contribution to the board and his commitment to value creation for BHP shareholders. Terry has been instrumental to our ongoing success, in particular, in recent years, as we've reshaped BHP's portfolio and positioned BHP to continue to accelerate growth in future-facing commodities.
On a personal note, I'd like to thank Terry for his support and counsel over the years. And for those of you who are interested in these things, Terry is a born and bred Adelaide person. So we wish Terry all the best for the future. Now, I can confirm there is a quorum present, and as the time is shortly after 10:00 A.M. in Adelaide, we can now start the meeting. The notice of this annual general meeting was made available to shareholders on the 25th September, 2023. The poll is now open for all of the items to be considered at today's meeting, and you may now start casting your votes. I'll also give you a warning before the end of the meeting to ensure you're able to cast your votes.
Our Group Company Secretary, Stefanie Wilkinson, will outline the procedures for voting at today's AGM later in the meeting. Again, welcome to everyone with us here today in South Australia and watching online. Our results for the 2023 financial year demonstrate BHP's focus on consistently executing our strategy to deliver results. Our operating performance and financial results were strong, and we made good progress towards our social value targets and goals. We believe our company is well-positioned to continue to create value today and for decades to come. Now, I'd like to take this opportunity to explain why, focusing on our approach to safety, culture, and capability, our role in a sustainable global future, our strong, consistent performance and returns, and our focus on social value.
At BHP, safety is our number one priority, and the two tragic fatalities this year at Western Australian Iron Ore and at Olympic Dam were stark reminders of the reason why safety must always be our number one priority, and our commitment to the goal of zero fatalities and serious injuries at BHP remains unwavering. We are continuing to drive our safety culture to eliminate fatalities and serious injuries. This safety culture goes beyond operational safety and includes addressing sexual harassment, racism, and bullying in our workplace. We still have more work to do, but we are making progress on our commitment to provide a safe, inclusive workplace culture where everyone can bring the best of themselves to work. Mining and BHP have a clear and undeniable role in the critical global energy transition required for more sustainable development.
Metals and minerals produced from mining are essential for decarbonization, the energy transition, and to meet the demands of a growing population who are increasingly urbanized and seeking a higher standard of living. Now, over the last three years, we have made strategic decisions to reshape our portfolio to align with these global megatrends. We unified our corporate structure to provide greater strategic flexibility. We merged our former petroleum business with Woodside to create a top 10 independent energy company. We approved an investment of $5.7 billion to develop Stage 1 of the Jansen project in Canada, with first production expected in late 2026. You probably saw in the news today, just yesterday, the board approved a further investment of $4.9 billion for Stage 2 of that project, and Mike's gonna touch on that shortly.
This deliberate reshaping of our portfolio positions BHP to create value for today and into the future. We now have a portfolio that stands to benefit from the increased demand generated from the global megatrends playing out around us. Our portfolio includes copper for renewable energy, nickel for electric vehicles, iron ore, and higher-quality metallurgical coal for the steel required to build decarbonization and other new infrastructure, and we're moving into potash, which we expect to be vital for food security and more sustainable farming to support a growing population. Our recent portfolio changes continue this theme. We are consolidating our metallurgical coal portfolio in Queensland to focus on the higher- quality metallurgical coals preferred by our steelmaking customers. Our successful acquisition of OZ Minerals this year in May adds complementary copper and nickel assets and creates an exciting opportunity for BHP here in South Australia.
We are combining the Carrapateena and Prominent Hill mines that were acquired from OZ Minerals, with the Olympic Dam asset and the Oak Dam project to create a new copper province, which we call Copper South Australia. This new copper province will unlock long-term value and create significant synergies. But it's essential to understand, and I know Mike's gonna talk about this shortly, that the right conditions will need to be met for Copper South Australia to compete with other options in our capital allocation framework. Now, beyond this available growth from our existing assets, we have four levers to pursue growth: technology and innovation, early-stage entry, exploration, and mergers and acquisitions. We're making good progress on each of these fronts. But it's important to note that we are not pursuing growth for growth's sake, but to create value for shareholders.
We use our capital allocation framework to assess the most effective and efficient way to deploy our capital. It's deeply embedded in our decision-making and is one of the reasons we have been able to consistently deliver substantial shareholder returns and create financial and social value for our partners and stakeholders. In the 2023 financial year, we had earnings of more than $13 billion, and these results were delivered against a backdrop of global uncertainty, weaker commodity prices, and inflationary pressures. We also continued to produce strong margins and a consistently high baseline of cash flow. Over the past decade, we've delivered average margins of 55% and generated average net operating cash flows of $20 billion per year.
This stability is a hallmark for BHP and demonstrates the quality of our portfolio and the consistency of our returns despite the cyclicality and volatility in the resources sector. Using our capital allocation framework, this year's result has flowed through to a full-year dividend to shareholders of $1.70 per share, fully franked, which was a 64% payout ratio. This was the third-largest ordinary dividend in our history. To put these results into context, over the last two years, BHP has been the largest dividend payer globally across all sectors and the largest dividend payer on the ASX 100. Now, in terms of total shareholder returns over the past five years, our total shareholder return was approximately 15% per annum and includes delivering more than $50 billion in cash dividends to our shareholders.
We also created significant financial value in the communities where we operate, through payments to suppliers, wages to our employees, contributions to communities, taxes and royalties paid to government. In the 2023 financial year, our total economic contribution was over $54 billion, and this includes $2.6 billion paid to local suppliers who support our operations. We're also continuing to deliver tangible values in each of the six pillars of our social value framework, which are focused on decarbonization, the environment, indigenous partnerships, workforce, communities, and supply chains. The work we do in these areas is vital to our business. Delivering social value can help us become a partner of choice with customers, suppliers, and communities. Addressing operational greenhouse gas emissions is an important part of our commitment to sustainability.
We have a Scope 1 and 2 decarbonization target of at least a 30% reduction in our operational greenhouse gas emissions by the 2030 financial year, compared with our baseline, which is our 2020 financial year. And in the 2023 financial year, we further reduced our operational emissions by 11% from the previous year, and we remain on track to achieve our 2030 target. Our future progress towards greenhouse gas emissions reductions won't be linear as we look to grow our business, but we have a comprehensive plan that is underpinned by clear actions that support emissions reduction now and through to the 2030 financial year. Our relationships with traditional owners and other indigenous partners are some of the most important relationships to BHP.
We operate on the traditional lands of indigenous peoples at many of our locations in Australia and around the world, and we partner widely with indigenous communities and have long-term agreements with traditional owners and First Nations partners. These are critical relationships for BHP's ability to start new projects, expand existing projects, and grow our business. We recognize that we can contribute positively to the lives and aspirations of indigenous peoples and communities by providing opportunities for employment and supporting indigenous enterprises. This year, we spent more than $330 million with indigenous suppliers globally. That's more than double last year's figure. We are the largest indigenous employer in the Australian resources sector, with over 8% indigenous employment. In Chile, our indigenous employment is close to 10%, and at our Jansen potash project in Canada, it's almost 8%.
Now, finally, this year, we published our Reconciliation Action Plan, which we developed in partnership with traditional owners. This was the sixth iteration of our Reconciliation Action Plan since 2007, and we remain committed to incorporating indigenous perspectives and voices into the way we operate and manage our business, and to working closely with traditional owners. Now, before I hand across to Mike Henry, I would again like to acknowledge and thank Terry Bowen, who will retire as a director at the conclusion of this meeting. But I'm also pleased to confirm that Michelle Hinchliffe will step into the role of Chair of the Risk and Audit Committee, following Terry's retirement. Michelle brings significant experience in risk management and financial controls. In closing, I believe that BHP is in a strong and exciting position.
It's a belief powered by the global mega trends of population growth, increased urbanization, and the energy transition, which are all increasing demand for mineral resources. We've made a number of strategic portfolio and structural changes over the last three years, and we are further positioning our portfolio to benefit from that demand. We will continue to drive a culture of safe and reliable operations while maintaining rigorous capital discipline. And we're making good progress on social value, which is vital, vital for sustainable long-term shareholder returns. So thank you for your continued support, and for investing in the future of BHP. It's now my pleasure to invite your CEO, Mike Henry, to speak with you. Thanks very much.
Well, thanks, Ken, and thanks to everyone here with us in Adelaide today and watching online. I am going to start with safety, and 2023 was a difficult year from a safety perspective for BHP. Tragically, two of our colleagues lost their lives while on the job, and this included a fatal incident at the Olympic Dam asset here in South Australia. Our thoughts remain with their families, friends, and colleagues, and as Ken said, these events underscore the absolute importance of safety first. We remain resolute in our commitment to eliminating fatalities and serious injuries right across the company. Now, turning to broader business performance. As you've just heard from Ken, t his financial year, we delivered another strong set of results.
We met production guidance across all four of our commodities, and we achieved annual record production at Western Australian Iron Ore, Olympic Dam, and Spence. We also managed inflation well. We made a significant economic and social contribution to the regions where we operate, and delivered $8.6 billion in cash back to shareholders in the form of dividends. We've continued to expand and execute on our suite of growth options, and then that includes progressing projects, advancing studies, exploring new prospects. We continue to invest in technology, innovation, and early-stage options, and of course, here in South Australia, we undertook the successful acquisition of OZ Minerals. In terms of underlying operations, this year, we demonstrated strong performance across the business, and this is thanks to the efforts of 80,000 employees and contractors across BHP.
Now, if I unpack that a bit, Western Australian Iron Ore achieved record production volumes, and it remains the lowest cost of the major iron ore producers globally. In fact, our iron ore operations generated around $5 per ton more in free cash flow than that reported by our largest competitor. And when you multiply that by the hundreds of millions of tons we produce each year, you get a sense for the relative performance of this asset. We're ensuring we get maximum returns for every dollar of shareholder capital invested in this business. In copper, Escondida's production increased by 5% year-on-year. Unit cost did increase by 17%, and that was driven primarily by inflationary pressures. So that was a solid outcome in the context of what other producers are experiencing. However, we remain very focused on mitigating the impacts of inflation.
We achieved record production at Spence, following higher concentrator throughput and at Olympic Dam, with continued strong performance at our concentrator and smelter. This disciplined operational performance has underpinned continued strong returns to shareholders. In fact, as Ken mentioned, BHP was among the highest dividend payers globally in the 2022 calendar year, and that's in any company or of any company in any sector. Now, of course, our business isn't just about today. It's about delivering value for shareholders long term. So I do want to spend a few minutes on portfolio and growth. The resources industry is cyclical, and commodity prices will always impact overall sector profitability. And this cyclicality is a key reason why we seek to have assets that are at the low end of the cost curve, because this ensures that they're more resilient at all points in the cycle.
That allows us then to focus even more intensely on managing the things that we control: safety and productivity. It allows us to do all that we can to maximize returns from the assets that we operate and the capital that we have invested in them. Now, we seek a portfolio of assets that is deliberately structured to take advantage of the mega trends occurring across the globe. We see potential for growth in those commodities, essential to the needs of urbanization, decarbonization, and a growing global population. And we're making the investments needed to unlock productivity, progress towards decarbonizing our assets, and delivering growth. We're working hard to define the path forward for Escondida, which is the world's largest copper mine and resource, and which is well-placed to be one of the most responsible copper producers globally, given its transition to full renewable power and desalinated water usage.
At WAIO, we produced 285 million tons of iron ore in financial year 2023, progressing to 305 million tons per annum, with studies underway into reaching 330 million tons. Iron ore is essential for the steel needed for infrastructure, for the energy transition, and for ongoing urbanization. We also have a significant, exciting growth path ahead of us in potash in Canada. Potash, which is used in fertilizers, will be essential for food security and more sustainable farming against the backdrop of a growing global population. We believe the long-term fundamentals for the potash market are compelling, and they've further improved since we sanctioned Jansen Stage 1. Stage 1 is now 32% complete, and it remains on budget and ahead of original schedule, with first production expected late in the 2026 calendar year.
As you heard, just yesterday, the board approved the decision to invest a further $4.9 billion into a second stage at Jansen, Jansen Stage 2, underscoring our confidence in potash and marking the next phase of our growth in Canada. Stage 2 will help to transform Jansen into one of the world's largest potash mines, doubling production capacity to 8.5 million tons per annum, and positioning BHP as one of the leaders in the global potash industry. We're able to deliver Stage 2 at a lower capital intensity because of the infrastructure that we are delivering in Stage 1. Jansen is a world-class asset, and it's in an investment-friendly jurisdiction, and it's going to create value for generations to come.
We've continued to increase our copper and nickel prospects globally, and these interests include Oak Dam in South Australia, Kabanga Nickel in Tanzania, and Ocelot in the United States. They also include projects in Serbia and Peru, and the Filo del Sol project in Argentina and Chile. We're also consolidating our coal portfolio to focus on the higher- quality metallurgical coals that are increasingly preferred by our customers, most recently through the up to $4.1 billion divestment of our Blackwater and Daunia mines, part of the BMA business, which we expect to complete in the fourth quarter of financial year 2024. And of course, then there's OZ Minerals. Bringing OZ into BHP creates the potential for further growth in the near and long term in the newly aggregated copper province for BHP assets here in South Australia.
We believe that with the stable and competitive government policies in place in South Australia, there's going to be a strong case for future capital investment in these assets relative to other potential investment options in BHP's portfolio. I really do want to thank Premier Malinauskas and his government for the constructive way we're working together towards delivering this shared objective. Globally, the mining industry is at a crossroads. The energy transition and broader decarbonization efforts are expected to progressively shift demand growth towards future-facing commodities. A massive wave of capital investment will be required to meet demand for these minerals. Within this environment of heightened global competition, Australia has a once-in-a-generation opportunity to capture an outsized share of this investment flow, and in doing so, to enjoy the far-reaching future economic , societal benefits it could deliver.
However, we can only succeed if we're willing and able to compete, and this will require government and industry to work together to improve the competitiveness of Australia's mining sector so that the nation can enjoy the future benefits this opportunity can bring. It's against this backdrop that we are closely watching policy changes at the Australian federal government level, some of which risk our national competitiveness. In particular, BHP shares concerns of the broader business community that the Australian government's Same Job, Same Pay proposal will increase cost and reduce Australia's investment competitiveness at a time when competition for investment is fierce globally, and other nations are working to become more competitive and more attractive. Prior to the last election, we, BHP, were on the record as supporting the principle of focused legislative reform to protect vulnerable and low-paid workers.
However, the same job, same pay bill goes well and truly beyond this. The proposed changes are not about closing loopholes, but are the most significant and far-reaching changes to Australian workplace relations since WorkChoices. BHP strongly oppose the same job, same pay bill, not only because of the damage it threatens to do to our business, but also for the hit it will have on Australia's economy, to Australian jobs, and to Australia's productivity and international competitiveness. The bill could reduce the value of any potential future growth plans for a copper province of BHP assets here in South Australia by up to $2 billion, and at risk directly impacting dividends for 17 million Australians who hold BHP shares directly or indirectly via superannuation. This is not just about BHP.
These concerns are shared by businesses large and small across the country, and getting these policies wrong risks impacting Australians' retirement savings. A competitive labor market with strong links between labor costs and productivity is essential to the long-term success of our industry and the Australian economy. We'll continue to engage the Australian government constructively, together with the wider business community, to highlight the negative impacts of these policies. Now, when it comes to growth, the opportunities that we're able to access and develop cannot be realized without delivering strong social value. Social value goes hand in hand with long-term shareholder value. Our access to the best resources, markets, partners, and talent is contingent upon us making a positive contribution to society and building strong relationships with partners, local communities, and First Nations peoples. Our approach is disciplined and proactive, and is delivering tangible outcomes.
This year, we reduced our operational greenhouse gas emissions by 11% from the year prior, and we remain on track to achieve our 2030 target to reduce operational greenhouse gas emissions by at least 30% from financial year 2020 levels. We doubled our spend with Indigenous suppliers globally to more than $330 million, and here in Australia, we released our sixth Reconciliation Action Plan, which was recognized with the Elevate status by Reconciliation Australia. We further advanced female employee participation to more than 35% globally. That's more than double from 2016, when we set our aspirational goal to achieve gender balance in our employee workforce by the end of financial year 2025. Social value is fundamental to our success and future competitiveness, and it's an important point of differentiation from our competitors.
Just before I conclude, I'd like to echo Ken's thanks to Terry Bowen for his extensive contributions to the board and the company. Terry's brought a wealth of experience and insight over his time with BHP, and I really do wish Terry all the best for his future ventures. At BHP, we're focused on creating value now and into the future. We think and plan in decades. By 2050, the global population is projected to be around 10 billion people, about two-thirds of whom will live in urban areas. And these global citizens will, quite rightly, be seeking to improve their standard of living, raising demand for housing, better food, consumer goods, cars, infrastructure, power, and utilities. These factors, together with the energy transition, are very metals and minerals intensive.
The two- to four-fold increase in demand we expect for key BHP commodities over the next three decades versus the three decades past, presents both challenge and opportunity. BHP will continue to plan strategically, responsibly, and consistently in seeking to help meet that demand. We'll maintain our focus on operational performance, delivery, and growth. We'll remain disciplined in capital allocation as we create value and generate returns. I am confident in the strength of our company now and into the future, and we do greatly appreciate your ongoing support. Thank you.