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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| BHP Group Limited | LSE:BHP | London | Ordinary Share | AU000000BHP4 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 48.00 | 1.57% | 3,099.00 | 3,098.00 | 3,100.00 | 3,113.00 | 3,091.00 | 3,104.00 | 22,593 | 08:13:19 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Materials | 53.99B | 10.24B | 2.018126 | 20.23 | 157.45B |
From Jun 2021 to Jun 2026
TIDMBLT
RNS Number : 9569U
BHP Billiton PLC
17 July 2018
Release Time IMMEDIATE Date 18 July 2018 Release Number 10/18
BHP OPERATIONAL REVIEW
FOR THE YEARED 30 JUNE 2018
-- Met or exceeded full year production guidance for petroleum, copper, iron ore and energy coal. Met revised guidance for metallurgical coal.
-- Group copper equivalent production increased by 8% in the 2018 financial year, with annual production records at Western Australia Iron Ore (WAIO), Queensland Coal and Spence.
-- We expect to achieve full year unit cost guidance at our major assets (based on 2018 financial year guidance exchange rates of AUD/USD 0.75 and USD/CLP 663).
-- Group copper equivalent production for the 2019 financial year is expected to be broadly in line with the 2018 financial year(1) .
-- The exit process for Onshore US is progressing to plan. Bids have been received and we aim to announce one or more transactions within the coming months, targeting completion of any transactions by the end of the 2018 calendar year.
-- In Petroleum, the Victoria-1 exploration well in Trinidad and Tobago encountered gas and the
Samurai-2 well in the US Gulf of Mexico encountered hydrocarbons in multiple horizons.
-- The South Flank sustaining iron ore project was approved during the June 2018 quarter.
-- We expect the financial results for the second half of the 2018 financial year to reflect certain items as summarised in the table on page two.
Premium
FY18 Jun Q18
Production (vs FY17) (vs Mar Q18) Jun Q18 commentary
Petroleum (MMboe) 192 49 Improved well performance and positive trial results in Onshore US offset by natural field
decline.
(-8%) (+9%)
Copper (kt) 1,753 463 Higher volumes at Escondida supported by the ramp-up of the Los Colorados Extension project.
(+32%) (+1%)
Iron ore(2) (Mt) 238 64 Record annualised production rate of 289 Mtpa (100% basis) reflects increased productivity
across the supply chain following completion of the rail reliability project and improved
car dumper performance. Production records at Jimblebar and Newman.
(+3%) (+10%)
Metallurgical coal(2) (Mt) 43 12 Record quarterly production at Queensland Coal following improved performance at Blackwater
and Broadmeadow, and higher feed rates at Caval Ridge. Production records at South Walker
Creek and Poitrel.
(+7%) (+16%)
Energy coal(2) (Mt) 29 9 Record production at New South Wales Energy Coal underpinned by improved stripping fleet performance.
(0%) (+48%)
BHP Chief Executive Officer, Andrew Mackenzie, said: "We have delivered a strong finish to the 2018 financial year with an eight per cent increase in annual production and record output at Western Australia Iron Ore, Queensland Coal and at our Spence copper mine in Chile. We further simplified the portfolio with the announced divestment of Cerro Colorado in Chile and Gregory Crinum in Australia and our investment in South Flank supports our ability to supply low cost, high quality products into Asia.
Good prices and our culture of continuous improvement give us positive momentum into the 2019 financial year."
1
Summary
Operational performance
Production for the 2018 financial year and guidance for the 2019 financial year are summarised in the table below.
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs FY19 FY19e
Production FY18 Qtr FY17 Jun Q17 Mar Q18 guidance vs FY18
---------------------------- ----- ----- ----- -------- -------- ------------------- -----------
Petroleum (MMboe) 192 49 (8%) (6%) 9%
Onshore US (MMboe) 72 20 (10%) 3% 20% Refer footnote(iii)
Conventional (MMboe) 120 29 (6%) (11%) 3% 113 - 118 (6%) - (2%)
Copper (kt) 1,753 463 32% 20% 1% 1,675 - 1,770 (4%) - 1%
Escondida (kt) 1,213 316 57% 40% 1% 1,120 - 1,180 (8%) - (3%)
Other copper(i) (kt) 540 147 (3%) (9%) 3% 555 - 590 3% - 9%
Iron ore(ii) (Mt) 238 64 3% 6% 10% 241 - 250 1% - 5%
WAIO (100% basis) (Mt) 275 72 3% 3% 8% 273 - 283 (1%) - 3%
Metallurgical coal(ii) (Mt) 43 12 7% 41% 16% 43 - 46 1% - 8%
Energy coal(ii) (Mt) 29 9 0% 10% 48% 28 - 29 (4%) - (1%)
(i) Other copper comprises Pampa Norte (including Cerro Colorado production for the first half of the 2019 financial year), Olympic Dam and Antamina.
(ii) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(iii) Given our intention to exit Onshore US, no annual guidance for the 2019 financial year for these assets will be provided; however, until completion, we expect a production run rate broadly consistent with the second half of the 2018 financial year.
Summary of disclosures
BHP expects its financial results for the second half of the 2018 financial year to reflect certain items as summarised in the table below. The table does not provide a comprehensive list of all items impacting the period. The financial statements are the subject of ongoing work that will not be finalised until the release of the financial results on 21 August 2018. Accordingly the information is subject to update.
H2 FY18
impact
Description US$M(i) Classification(ii)
------------------------------------------------------------------------------- ------------ -----------------------
Non-cash fair value adjustment related to the Angostura (Trinidad and Tobago) 60 Operating costs
gas sale embedded
derivative
Exploration expense (including petroleum and minerals exploration programs) 448 Exploration expense
The Group's adjusted effective tax rate for the full year is expected to be - Income tax expense
within the guidance
range of 30 to 35 per cent
Non-cash fair value adjustments related to interest rate and exchange rate Under review Net debt
movements (weaker
US dollar in the period) are expected to reduce net debt in the June 2018 half
year
Dividends paid to non-controlling interests 650 Financing cash outflow
Financial impact on BHP Billiton Brasil of the Samarco Dam failure 440(iii) Exceptional item charge
(i) Numbers are not tax effected.
(ii) There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant.
(iii) The total financial impact on BHP Billiton Brasil of the Samarco Dam failure is expected to be US$650 million in the 2018 financial year (H1 US$210 million and H2 US$440 million).
2
Average realised prices
The average realised prices achieved for our major commodities are summarised below.
FY18 Jun H18 Jun H18
vs vs vs
Average realised prices(i) Jun H18 Dec H17 FY18 FY17 FY17 Jun H17 Dec H17
------------------------------------- ------- ------- ------ ------ ----- -------- --------
Oil (crude and condensate) (US$/bbl) 67.07 53.76 60.12 47.61 26% 35% 25%
Natural gas (US$/Mscf)(ii) 3.71 3.54 3.62 3.34 8% 7% 5%
US natural gas (US$/Mscf) 2.77 2.84 2.80 2.88 (3%) (7%) (2%)
LNG (US$/Mscf) 8.65 7.48 8.07 6.84 18% 17% 16%
Copper (US$/lb) 3.05 3.20 3.12 2.54 23% 13% (5%)
Iron ore (US$/wmt, FOB) 56.86 56.54 56.71 58.42 (3%) (8%) 1%
Metallurgical coal (US$/t) 189.66 164.22 177.22 163.30 9% 16% 15%
Hard coking coal (US$/t)(iii) 205.80 182.29 194.59 179.83 8% 14% 13%
Weak coking coal (US$/t)(iii) 143.40 120.99 131.70 121.32 9% 19% 19%
Thermal coal (US$/t)(iv) 86.47 87.49 86.94 74.67 16% 15% (1%)
Nickel metal (US$/t) 13,974 11,083 12,591 10,184 24% 43% 26%
(i) Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments.
(ii) Includes internal sales.
(iii) Hard coking coal (HCC) refers generally to those metallurgical coals with a Coke Strength after Reaction (CSR) of 35 and above, which includes coals across the spectrum from Premium Coking to Semi Hard Coking coals, while weak coking coal (WCC) refers generally to those metallurgical coals with a CSR below 35.
(iv) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.
The majority of iron ore shipments were linked to the index price for the month of shipment, with price differentials predominantly a reflection of product quality and market fundamentals. The majority of metallurgical coal and energy coal exports were linked to the index price for the month of shipment or sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.
At 30 June 2018, the Group had 364 kt of outstanding copper sales that were revalued at a weighted average price of US$3.01 per pound. The final price of these sales will be determined in the 2019 financial year. In addition, 254 kt of copper sales from the 2017 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase Underlying EBITDA(3) by US$2 million in the 2018 financial year and is included in the average realised copper price in the above table.
Major development projects
During the June 2018 quarter, the BHP Board approved US$2.9 billion (BHP share; US$3.4 billion 100 per cent) in capital expenditure for the South Flank sustaining iron ore project in Western Australia. A US$122 million increase in the budget of the Jansen project to US$2.7 billion has been incorporated to fund support services at the site as work continues on completion of the shafts. The forecast for the North West Shelf Greater Western Flank-B project has been reduced by US$98 million to US$216 million as the project is tracking ahead of schedule.
At the end of the 2018 financial year, BHP had five major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$10.6 billion over the life of the projects.
3
Corporate update
On 25 June 2018, Samarco, Vale and BHP, together with the Federal Government of Brazil, the states of Espirito Santo and Minas Gerais and the Public Prosecutors agreed an arrangement which settles the BRL20 billion Civil Claim, enhances community participation in decisions related to the remediation and compensation programs, and establishes a process to renegotiate those programs and to progress settlement of the BRL155 billion Civil Claim (Governance Agreement). The Governance Agreement is conditional on the Federal Government of Brazil signing the Agreement and ratification by the 12th Federal Court of Minas Gerais.
On 29 June 2018, BHP announced a total of US$211 million in further financial support for the Renova Foundation and Samarco until 31 December 2018. This comprises US$158 million to fund the Renova Foundation which will be offset against the Group's provision for the Samarco dam failure and a short-term facility of up to US$53 million to be made available to Samarco.
Unrelated to the new Governance Agreement, BHP expects to recognise an income statement charge in the second half of the 2018 financial year of US$440 million in respect of the Samarco dam failure. This charge largely reflects updated assumptions relating to the continuation of the fishing ban, the number of eligible claimants, and the timeline and technical scope for resettlement of the communities.
The US$440 million income statement charge will be recognised as an exceptional item in the June 2018 half year.
The net increase in the provision is approximately US$250 million due to the offsetting impact of payments to the Renova Foundation to fund remediation and compensation Programs under the Framework Agreement.
Petroleum
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
----- ------ ------ --------- ---------
Crude oil, condensate and natural gas liquids (MMboe) 86 22 (11%) (10%) 8%
Natural gas (bcf) 636 163 (5%) (2%) 11%
Total petroleum production (MMboe) 192 49 (8%) (6%) 9%
Petroleum - Total petroleum production for the 2018 financial year decreased by eight per cent to 192 MMboe.
In our Conventional business, volumes are expected to decrease to between 113 and 118 MMboe in the 2019 financial year as a result of additional downtime from planned dry dock maintenance at Pyrenees and natural field decline across the portfolio. Given our intention to exit Onshore US, no annual guidance for the 2019 financial year for these assets will be provided, however until completion, which we are targeting by the end of the 2018 calendar year, we expect a production run rate broadly consistent with the second half of the 2018 financial year.
Production breakdown FY18 vs FY17
------------------------------------ ------- -----------
Crude oil, condensate and natural gas liquids (MMboe)
Conventional 57 (8%) Hurricane Harvey and Hurricane Nate in the Gulf of
Mexico and natural field decline across
the portfolio.
Onshore US 29 (16%) Hurricane Harvey and natural field decline, which more
than offset improved recoveries and
additional wells in the Black Hawk and Permian.
Total 86 (11%)
Natural gas (bcf)
Conventional 377 (4%) Maintenance at Bass Strait and Macedon.
Onshore US 259 (6%) Hurricane Harvey and natural field decline, partially
offset by additional wells in the Eagle
Ford, Permian and Haynesville.
Total 636 (5%)
4
In the June 2018 quarter, BHP agreed to sell its 90 per cent interest in the Minerva Gas Plant in Victoria to the Casino Henry Joint Venture. The agreement provides for the transfer of the plant and associated land after the cessation of current operations processing gas from the offshore Minerva gas field, and remains conditional on completion of regulatory approvals and assignments.
Projects
Project and Capital expenditure Initial production
ownership (US$m) target date Capacity Progress
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
North West Shelf 216 CY19 To maintain LNG plant Ahead of schedule and
Greater Western throughput from the budget. The overall
Flank-B North West Shelf project is 87%
(Australia) operations. complete.
16.67% (non-operator)
Mad Dog Phase 2 2,154 CY22 New floating On schedule and
(US Gulf of Mexico) production facility budget. The overall
23.9% (non-operator) with the capacity to project is 23%
produce up to 140,000 complete.
gross barrels
of crude oil per day.
Petroleum capital expenditure for the 2018 financial year increased by five per cent to US$1.6 billion.
Onshore US development activity
Onshore US drilling and development expenditure for 2018 financial year was US$0.9 billion. Our operated rig count declined from seven to five during the June 2018 quarter.
FY18 Liquids focused areas Gas focused areas
------------------------------ --------------------------
(FY17) Eagle Ford Permian Haynesville Fayetteville Total
--------------------------- -------------- --------------- ------------- ----------- ------------- -------------
Capital expenditure(i) US$ billion 0.3 (0.3) 0.4 (0.2) 0.2 (0.1) 0.0 (0.0) 0.9 (0.6)
Rig allocation At period end 2 (1) 2 (1) 1 (3) 0 (0) 5 (5)
Net wells drilled and
completed(ii) Period total 36 (51) 29 (21) 20 (5) 0 (2) 85 (79)
Net productive wells At period end 958 (963) 155 (126) 393 (394) 1,042 (1,044) 2,548 (2,527)
(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.
The exit process for our Onshore US assets is progressing to plan. Bids have been received and we aim to announce one or more transactions within the coming months, targeting completion of any transactions by the end of the 2018 calendar year.
Petroleum exploration
Exploration and appraisal wells drilled during the June 2018 quarter are summarised below.
Total
Well Location Target BHP equity Spud date Water well Status
depth depth
----------- -------------------------- ------- ------------------ ------------- ------- ------- -------------------------
Hydrocarbons encountered,
Samurai-2 US Gulf of Mexico GC432 Oil 50% 16 April 2018 1,088 m 8,615 m drilling ahead
(Murphy Operator)
Hydrocarbons encountered,
Victoria-1 Trinidad & Tobago Block 5 Gas 65% 12 June 2018 1,828 m 2,545 m drilling ahead
(BHP Operator)
In the US Gulf of Mexico, we increased our equity interest in the Murphy operated Samurai prospect (GC432 and GC476), the northern extension of the Wildling sub-basin, from 33.33 to 50 per cent. The Samurai-2 exploration well was spud on 16 April 2018 and encountered hydrocarbons in multiple horizons not previously observed by the Wildling-2 exploration well. As reported in the March 2018 Operational Review, we were the apparent high bidder on three blocks, EB914 and EB699 in the western Gulf of Mexico and GC823 to the west of the Mad Dog field, which we co-own with BP and Chevron. All three leases were awarded by the Regulator during the June 2018 quarter.
5
In Trinidad and Tobago, following the gas discovery at LeClerc, we commenced Phase 2 of our deepwater exploration drilling campaign to further assess the commercial potential of the Magellan play. The Victoria-1 exploration well was spud on 12 June 2018 and encountered gas. Following completion of the Victoria-1 well, we expect the Deepwater Invictus to drill the Bongos prospect in Northern Trinidad and Tobago.
In Mexico, we expect to begin drilling the first appraisal well at Trion in the December 2018 quarter.
In Australia, the fast track of the Exmouth sub-basin 3D seismic data has been received. The final processed data will be delivered during the September 2018 quarter.
Petroleum exploration expenditure for the 2018 financial year was US$709 million, of which US$516 million was expensed.
Copper
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
------- ------ ----- -------- --------
Copper (kt) 1,753 463 32% 20% 1%
Zinc (t) 119,800 35,983 37% 24% 41%
Uranium oxide concentrate (t) 3,364 1,123 (8%) 52% 0%
Copper - Total copper production for the 2018 financial year increased by 32 per cent to 1,753 kt. Total copper production of between 1,675 and 1,770 kt is expected in the 2019 financial year.
Escondida copper production for the 2018 financial year increased by 57 per cent to 1,213 kt, reflecting a full year of production following the industrial action in the previous year and supported by the start-up of the Los Colorados Extension project on 10 September 2017. Production of between 1,120 and 1,180 kt is forecast in the 2019 financial year, as higher expected throughput is offset by a significant decrease in average concentrator head grade consistent with the mine plan. The existing agreement with Union Ndeg1 will expire on 1 August 2018 and negotiations for a new agreement are in progress. The Escondida Water Supply Extension (EWSE) is in execution phase and will deliver first water production in the 2020 financial year.
Pampa Norte copper production increased by four per cent to 264 kt supported by record production at Spence of 200 kt reflecting better recoveries and higher utilisation of the solvent extraction and electrowinning plants. On 19 June 2018, BHP entered into an agreement to sell Cerro Colorado to EMR Capital(4) . The transaction is expected to close during the December 2018 quarter, subject to financing and customary closing conditions. Production at Spence is expected to be between 185 and 200 kt in the 2019 financial year, with volumes weighted to the second half as planned maintenance in May and June 2018 resulted in a lower stacking rate. During the period, we successfully completed the advanced negotiation with Spence Union Ndeg1 (operators and maintenance) with the new agreement effective from 1 June 2018 for 36 months. An agreement was also reached with the Cerro Colorado Union Ndeg2 (supervisors and staff) on the terms and conditions for a new collective agreement, effective for 36 months from 1 July 2018.
Olympic Dam copper production decreased by 18 per cent to 137 kt as a result of the planned major smelter maintenance campaign in the first half of the 2018 financial year and a slower than planned ramp-up. The operation returned to full capacity during the June 2018 quarter. Production is expected to increase to between 200 and 220 kt in the 2019 financial year reflecting improved operational stability and higher ore grades from the Southern Mine Area.
Antamina copper production increased by four per cent to 140 kt and zinc production increased 37 per cent to 120 kt due to higher head grades as mining continued through a zinc-rich ore zone. Copper production is expected to remain at similar levels in the 2019 financial year at approximately 135 kt, while zinc production is expected to be approximately 85 kt, consistent with the mine plan.
6
Projects
Initial
Capital production
Project and expenditure target
ownership (US$m) date Capacity Progress
--------------------- ----------- ---------- --------------------------------------------------------------------------------------------------- --------------------------------------
Spence Growth Option 2,460 FY21 New 95 ktpd concentrator is expected to increase Spence's payable copper in concentrate production On schedule and budget. The overall p
by approximately 185 ktpa in the first 10 years of operation and extend the mining operations roject is 14% complete.
by more than 50 years.
(Chile)
100%
Iron Ore
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
------- ------ ----- -------- --------
Iron ore (kt) 238,421 63,586 3% 6% 10%
Iron ore - Total iron ore production for the 2018 financial year increased by three per cent to a record 238 Mt (275 Mt on a 100 per cent basis). WAIO production of between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per cent basis, is expected in the 2019 financial year. A program of work to optimise maintenance schedules across our supply chain and improve port reliability and performance is planned for the September 2018 quarter, with a corresponding impact expected on production and unit costs.
At WAIO, increased production was supported by improved productivity and stability across the supply chain, including both rail and port, which has enabled record production at Jimblebar and Mining Area C. This was partially offset by the impact of lower opening stockpile levels following the Mt Whaleback fire in June 2017 and unplanned car dumper maintenance in the March 2018 quarter. WAIO produced at record annualised rates of 289 Mtpa (100 per cent basis) in the June 2018 quarter.
On 14 June 2018, the BHP Board approved US$2.9 billion (BHP share; US$3.4 billion 100 per cent) in capital expenditure for the South Flank project. The South Flank project will fully replace production from the 80 Mtpa (100 per cent basis) Yandi mine, with first ore targeted in the 2021 calendar year. South Flank will contribute to an increase in WAIO's average iron grade from 61 per cent to 62 per cent, and the overall proportion of lump from 25 per cent to approximately 35 per cent.
Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.
Projects
Initial
Capital production
Project and expenditure target
ownership (US$m) date Capacity Progress
-------------- ----------- ---------- ------------------------------------------------------------------------------------------- ----------------------------------
South Flank 3,061(i) CY21 Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi Project approved on 14 June 2018.
mine.
(Australia)
85%
(i) Includes initial funding of US$184 million announced on 26 June 2017.
7
Coal
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
------ ------ ----- -------- --------
Metallurgical coal (kt) 42,640 12,009 7% 41% 16%
Energy coal (kt) 29,158 9,023 0% 10% 48%
Metallurgical coal - Metallurgical coal production for the 2018 financial year increased by seven per cent to a record 43 Mt. Production is expected to increase to between 43 and 46 Mt in the 2019 financial year, with volumes weighted to the second half of the year. An extensive maintenance program is planned for the first half of the 2019 financial year, with a corresponding impact expected on production and unit costs.
At Queensland Coal, record production for the 2018 financial year was supported by record stripping performance, increased truck hours and higher wash-plant utilisation from low-cost debottlenecking activities. Production records were achieved at Peak Downs, Saraji, Caval Ridge, South Walker Creek and Poitrel. In the June 2018 quarter production increased by 16 per cent from the previous quarter following improved operational conditions at Blackwater (geotechnical issues) and Broadmeadow (challenging roof conditions), increased feed rates at the Caval Ridge wash-plant, and utilisation of additional wash-plant capacity at Poitrel following the purchase of the remaining 50 per cent of the Red Mountain processing facility.
On 30 May 2018, BHP announced it has entered into an arrangement to sell the Gregory Crinum mine, which was placed into care and maintenance in January 2016, to Sojitz Corporation(5) . Completion of the sale is subject to the fulfilment of conditions precedent including customary regulatory approvals, which could take several months.
On the Central Queensland Coal Network, where Aurizon is the rail track provider, we continue to engage with stakeholders and encourage Aurizon to ensure infrastructure productivity is maximised while they await the Queensland Competition Authority's final decision in respect of Access Undertaking 5 (UT5).
The Caval Ridge Southern Circuit project is progressing according to plan, and is expected to ramp-up early in the 2019 financial year. A longwall move at Broadmeadow is scheduled for the December 2018 quarter.
Energy coal - Energy coal production for the 2018 financial year was flat at 29 Mt. Production is expected to remain broadly unchanged at approximately 28 to 29 Mt in the 2019 financial year.
New South Wales Energy Coal production increased by two per cent, supported by record production and sales volumes during the June 2018 quarter from improved stripping performance, utilisation of raw coal inventory build from the prior quarter and additional bypass coal. Increasing stripping requirements in the September 2018 quarter are expected to result in lower production rates for the quarter compared to the remainder of the 2019 financial year. This was offset by a three per cent decline in Cerrejón production due to unfavourable weather impacts on mine sequencing, equipment availability and higher strip ratio areas being mined.
Other
Nickel production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
----- ----- ----- -------- --------
Nickel (kt) 90.6 24.9 6% (1%) 21%
Nickel - Nickel West production for the 2018 financial year increased by six per cent to 91 kt, with increased production at the Mt Keith and Leinster operations supporting record metal production. Nickel production for the 2019 financial year is expected to remain broadly unchanged from the 2018 financial year.
8
Potash project
Project and Investment
ownership (US$m) Scope Progress
------------- ---------- ------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------
Jansen Potash 2,700 Investment to finish the excavation and lining of the production and service shafts, Budget revised to fund support services at the site as work continues on completion of the
and to shafts. The project is 79% complete.
continue the installation of essential surface infrastructure and utilities.
(Canada)
100%
Minerals exploration
Minerals exploration expenditure for the 2018 financial year was US$165 million, of which US$124 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Peru, Canada, South Australia and the South-West United States.
Variance analysis relates to the relative performance of BHP and/or its operations during the 2018 financial year compared with the 2017 financial year, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis. Copper equivalent production based on 2017 financial year average realised prices.
The following footnotes apply to this Operational Review:
(1) Excludes production from Onshore US and Cerro Colorado. (2) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(3) Underlying EBIT and Underlying EBITDA are used to reflect the underlying performance of BHP. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items. Underlying EBITDA is Underlying EBIT before depreciation, amortisation and impairment.
(4) On 19 June 2018, BHP announced it has entered into an agreement to sell the Cerro Colorado copper mine in Chile to EMR Capital. The total cash consideration consist of US$230 million to be paid to BHP after the closing of the transaction, plus approximately US$40 million in proceeds from the post-closing sale of certain copper inventory, and a contingent payment of up to US$50 million to be paid in the future, depending upon copper price performance.
(5) On 30 May 2018, BHP Billiton Mitsubishi Alliance (BMA) announced it has entered into an agreement to sell the Gregory Crinum coal mine in central Queensland to Sojitz Corporation for A$100 million (100 per cent basis). In addition to the sale of the mine to Sojitz, BHP will be providing appropriate funding for rehabilitation of existing areas of disturbance at the site, with all rehabilitation liabilities transferred to Sojitz on completion.
The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
In this release, the terms 'BHP', 'Group', 'BHP Group', 'we', 'us', 'our' and ourselves' are used to refer to BHP Billiton Limited, BHP Billiton Plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 28 'Subsidiaries' in section 5.1 of BHP's 30 June 2017 Annual Report on Form 20-F and in note 13 'Related undertaking of the Group' in section 5.2 of BHP's 30 June 2017 Annual Report on Form 20-F. Notwithstanding that this release may include production and other data from non-operated assets, non-operated assets are not included in the BHP Group.
9
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10
Production summary
Quarter ended Year to date
-------------------------------------------- ------------------
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2017 2017 2017 2018 2018 2018 2017
------- ------- ------- ------- -------- -------- --------
Petroleum (1)
Petroleum
Crude oil, condensate
and NGL (Mboe)
Onshore US 8,501 7,079 7,423 6,256 8,266 29,024 34,371
Conventional 15,612 15,090 14,869 13,960 13,486 57,405 62,708
Total 24,113 22,169 22,292 20,216 21,752 86,429 97,079
Natural gas (bcf)
Onshore US 67.2 61.4 60.5 64.1 72.5 258.5 275.0
Conventional 99.5 107.3 96.1 82.9 90.7 377.0 392.8
Total 166.7 168.7 156.6 147.0 163.2 635.5 667.8
Total petroleum production
(MMboe) 51.9 50.3 48.4 44.7 49.0 192.4 208.4
Copper (2)
Copper
Payable metal in concentrate
(kt)
Escondida (3) 57.5% 162.4 196.3 238.5 244.9 246.1 925.8 539.6
Antamina 33.8% 38.5 35.9 33.8 35.2 34.6 139.5 133.8
Total 200.9 232.2 272.3 280.1 280.7 1,065.3 673.4
Cathode (kt)
Escondida (3) 57.5% 62.8 71.9 76.1 69.4 70.1 287.5 232.0
Pampa Norte (4) 100% 72.3 58.0 68.4 66.8 70.6 263.8 254.3
Olympic Dam 100% 51.4 42.0 12.2 40.5 42.0 136.7 166.3
Total 186.5 171.9 156.7 176.7 182.7 688.0 652.6
Total copper (kt) 387.4 404.1 429.0 456.8 463.4 1,753.3 1,326.0
Lead
Payable metal in concentrate
(t)
Antamina 33.8% 1,799 1,415 1,009 464 546 3,434 5,473
Total 1,799 1,415 1,009 464 546 3,434 5,473
Zinc
Payable metal in concentrate
(t)
Antamina 33.8% 29,076 29,201 29,054 25,562 35,983 119,800 87,502
Total 29,076 29,201 29,054 25,562 35,983 119,800 87,502
Gold
Payable metal in concentrate
(troy oz)
Escondida (3) 57.5% 33,941 50,525 50,279 59,953 68,345 229,102 110,858
Olympic Dam (refined
gold) 100% 28,188 13,101 15,969 28,989 33,497 91,556 104,146
Total 62,129 63,626 66,248 88,942 101,842 320,658 215,004
Silver
Payable metal in concentrate
(troy koz)
Escondida (3) 57.5% 1,234 1,737 2,193 2,339 2,527 8,796 4,326
Antamina 33.8% 1,691 1,596 1,331 1,189 1,321 5,437 5,783
Olympic Dam (refined
silver) 100% 243 131 135 248 278 792 768
Total 3,168 3,464 3,659 3,776 4,126 15,025 10,877
12
Quarter ended Year to date
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BHP Jun Sep Dec Mar Jun Jun Jun
interest 2017 2017 2017 2018 2018 2018 2017
------- ------- ------- ------- ------- -------- --------
Uranium
Payable metal in concentrate
(t)
Olympic Dam 100% 737 880 243 1,118 1,123 3,364 3,661
Total 737 880 243 1,118 1,123 3,364 3,661
Molybdenum
Payable metal in concentrate
(t)
Antamina 33.8% 328 402 579 420 261 1,662 1,144
Total 328 402 579 420 261 1,662 1,144
Iron Ore
Iron Ore
Production (kt) (5)
Newman 85% 16,241 13,842 18,317 16,412 18,500 67,071 68,283
Area C Joint Venture 85% 13,016 13,099 13,575 12,802 12,041 51,517 48,744
Yandi Joint Venture 85% 17,415 14,559 16,348 15,802 17,339 64,048 65,355
Jimblebar (6) 85% 5,891 6,283 4,583 4,669 15,092 30,627 21,950
Wheelarra 85% 7,578 7,804 8,734 8,006 614 25,158 27,020
Samarco 50% - - - - - - -
Total 60,141 55,587 61,557 57,691 63,586 238,421 231,352
Coal
Metallurgical coal
Production (kt) (7)
BMA 50% 6,394 8,296 7,394 7,983 9,220 32,893 31,458
BHP Mitsui Coal (8) 80% 2,100 2,271 2,291 2,396 2,789 9,747 8,312
Haju (9) 75% - - - - - - 129
Total 8,494 10,567 9,685 10,379 12,009 42,640 39,899
Energy coal
Production (kt)
USA 100% - - - - - - 451
Australia 100% 5,711 4,235 4,383 3,662 6,261 18,541 18,176
Colombia 33.3% 2,475 2,497 2,914 2,444 2,762 10,617 10,959
Total 8,186 6,732 7,297 6,106 9,023 29,158 29,586
Other
Nickel
Saleable production
(kt)
Nickel West 100% 25.2 22.8 22.4 20.5 24.9 90.6 85.1
Total 25.2 22.8 22.4 20.5 24.9 90.6 85.1
13
(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal. (3) Shown on a 100% basis. BHP interest in saleable production is 57.5%. (4) Includes Cerro Colorado and Spence. (5) Iron ore production is reported on a wet tonnes basis. (6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%. (9) Shown on a 100% basis. BHP interest in saleable production is 75%.
Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.
14
Production and sales report
Quarter ended Year to date
-------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------ ------ ------ ------ ------ ------- -------
Petroleum (1)
Bass Strait
Crude oil and condensate (Mboe) 1,552 1,815 1,513 1,126 1,361 5,815 6,599
NGL (Mboe) 1,661 1,950 1,584 1,170 1,428 6,132 6,459
Natural gas (bcf) 37.4 42.6 32.9 20.5 29.9 125.9 139.3
Total petroleum products (MMboe) 9.4 10.9 8.6 5.7 7.8 32.9 36.3
North West Shelf
Crude oil and condensate (Mboe) 1,314 1,474 1,442 1,377 1,267 5,560 5,507
NGL (Mboe) 209 227 200 210 186 823 964
Natural gas (bcf) 32.5 36.2 36.2 35.8 34.2 142.4 140.3
Total petroleum products (MMboe) 6.9 7.7 7.7 7.6 7.2 30.1 29.9
Pyrenees
Crude oil and condensate (Mboe) 1,606 1,510 1,210 1,250 1,168 5,138 6,517
Total petroleum products (MMboe) 1.6 1.5 1.2 1.3 1.2 5.1 6.5
Other Australia (2)
Crude oil and condensate (Mboe) 9 9 8 8 7 32 35
Natural gas (bcf) 16.3 16.1 13.3 13.4 13.9 56.7 66.1
Total petroleum products (MMboe) 2.7 2.7 2.2 2.2 2.3 9.5 11.1
Atlantis (3)
Crude oil and condensate (Mboe) 3,637 3,022 3,377 3,459 3,471 13,329 13,835
NGL (Mboe) 213 218 195 248 217 878 923
Natural gas (bcf) 1.9 1.6 1.8 1.8 1.5 6.7 7.1
Total petroleum products (MMboe) 4.2 3.5 3.9 4.0 3.9 15.3 15.9
Mad Dog (3)
Crude oil and condensate (Mboe) 1,167 1,020 1,231 1,140 581 3,972 4,472
NGL (Mboe) 68 44 72 55 27 198 215
Natural gas (bcf) 0.2 0.1 0.2 0.2 0.1 0.6 0.7
Total petroleum products (MMboe) 1.3 1.1 1.3 1.2 0.6 4.3 4.8
Shenzi (3)
Crude oil and condensate (Mboe) 2,588 2,291 2,513 2,323 2,110 9,237 10,587
NGL (Mboe) 179 141 184 140 151 616 565
Natural gas (bcf) 0.6 0.4 0.5 0.4 0.4 1.7 2.1
Total petroleum products (MMboe) 2.9 2.5 2.8 2.5 2.3 10.1 11.5
Eagle Ford (4)
Crude oil and condensate (Mboe) 4,278 3,457 3,720 2,838 3,826 13,841 17,608
NGL (Mboe) 2,240 1,856 2,100 1,555 1,767 7,278 9,021
Natural gas (bcf) 15.1 13.8 14.4 12.6 13.9 54.7 63.8
Total petroleum products (MMboe) 9.0 7.6 8.2 6.5 7.9 30.2 37.3
15
Quarter ended Year to date
-------------------------------------- ---------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------ ------ ------ ------ ------ ------- ------
Permian (4)
Crude oil and condensate (Mboe) 1,336 1,179 1,142 1,398 1,903 5,622 5,331
NGL (Mboe) 646 587 460 465 770 2,282 2,388
Natural gas (bcf) 6.2 4.5 3.6 4.1 6.4 18.6 19.0
Total petroleum products (MMboe) 3.0 2.5 2.2 2.5 3.7 11.0 10.9
Haynesville (4)
Crude oil and condensate (Mboe) 1 - 1 - - 1 5
NGL (Mboe) - - - - - - 18
Natural gas (bcf) 21.4 21.5 22.0 28.7 33.1 105.3 95.6
Total petroleum products (MMboe) 3.6 3.6 3.7 4.8 5.5 17.6 16.0
Fayetteville (4)
Natural gas (bcf) 24.5 21.6 20.5 18.7 19.1 79.9 96.6
Total petroleum products (MMboe) 4.1 3.6 3.4 3.1 3.2 13.3 16.1
16
Production and sales report
Quarter ended Year to date
------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------- ------- ------- ------- ------- -------- --------
Petroleum (1) (continued)
Trinidad/Tobago
Crude oil and condensate (Mboe) 139 118 135 232 233 718 562
Natural gas (bcf) 9.4 9.7 10.5 10.0 9.8 40.0 32.6
Total petroleum products (MMboe) 1.7 1.7 1.9 1.9 1.9 7.4 6.0
Other Americas (3)
(5)
Crude oil and condensate (Mboe) 238 229 207 189 313 938 1,039
NGL (Mboe) 10 5 3 3 22 33 22
Natural gas (bcf) 0.1 0.1 0.1 - 0.3 0.5 0.4
Total petroleum products (MMboe) 0.3 0.3 0.2 0.2 0.4 1.1 1.1
UK
Crude oil and condensate (Mboe) 64 40 22 43 38 143 268
NGL (Mboe) 16 39 13 18 18 88 119
Natural gas (bcf) 1.1 0.5 0.6 0.8 0.6 2.5 4.2
Total petroleum products (MMboe) 0.3 0.2 0.1 0.2 0.2 0.6 1.1
Algeria
Crude oil and condensate (Mboe) 942 938 960 969 888 3,755 4,020
Total petroleum products (MMboe) 0.9 0.9 1.0 1.0 0.9 3.8 4.0
BHP Petroleum
Crude oil and condensate
Onshore US (Mboe) 5,615 4,636 4,863 4,236 5,729 19,464 22,944
Conventional (Mboe) 13,256 12,466 12,618 12,116 11,437 48,637 53,441
Total (Mboe) 18,871 17,102 17,481 16,352 17,166 68,101 76,385
NGL
Onshore US (Mboe) 2,886 2,443 2,560 2,020 2,537 9,560 11,427
Conventional (Mboe) 2,356 2,624 2,251 1,844 2,049 8,768 9,267
Total (Mboe) 5,242 5,067 4,811 3,864 4,586 18,328 20,694
Natural gas
Onshore US (bcf) 67.2 61.4 60.5 64.1 72.5 258.5 275.0
Conventional (bcf) 99.5 107.3 96.1 82.9 90.7 377.0 392.8
Total (bcf) 166.7 168.7 156.6 147.0 163.2 635.5 667.8
Total petroleum products
Onshore US (Mboe) 19,701 17,312 17,506 16,939 20,349 72,107 80,204
Conventional (Mboe) 32,195 32,973 30,886 27,777 28,603 120,238 128,175
Total (Mboe) 51,896 50,286 48,392 44,716 48,952 192,346 208,379
(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Onshore US volumes are net of mineral holder royalties.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
17
Production and sales report
Quarter ended Year to date
----------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal
unless otherwise stated.
Escondida, Chile (1)
Material mined (kt) 93,389 104,867 101,371 103,385 106,788 416,411 316,801
Sulphide ore milled (kt) 18,777 24,080 30,260 32,203 31,732 118,275 67,484
Average concentrator
head grade (%) 1.07% 1.06% 0.98% 0.96% 0.96% 0.99% 0.99%
Production ex mill (kt) 167.0 204.2 245.7 252.6 253.6 956.1 557.5
Production
Payable copper (kt) 162.4 196.3 238.5 244.9 246.1 925.8 539.6
Copper cathode (EW) (kt) 62.8 71.9 76.1 69.4 70.1 287.5 232.0
- Oxide leach (kt) 20.3 22.4 27.4 24.5 27.1 101.4 80.4
- Sulphide leach (kt) 42.5 49.5 48.7 44.9 43.0 186.1 151.6
Total copper (kt) 225.2 268.2 314.6 314.3 316.2 1,213.3 771.6
(troy
Payable gold concentrate oz) 33,941 50,525 50,279 59,953 68,345 229,102 110,858
(troy
Payable silver concentrate koz) 1,234 1,737 2,193 2,339 2,527 8,796 4,326
Sales
Payable copper (kt) 163.3 195.1 236.7 228.3 260.3 920.4 534.6
Copper cathode (EW) (kt) 56.0 61.6 84.1 61.7 80.9 288.3 232.8
(troy
Payable gold concentrate oz) 33,941 50,525 50,279 59,953 68,345 229,102 110,858
(troy
Payable silver concentrate koz) 1,234 1,737 2,193 2,339 2,527 8,796 4,326
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 15,760 21,381 20,191 17,766 17,918 77,256 58,235
Ore milled (kt) 4,411 3,951 4,611 4,905 4,833 18,300 15,173
Average copper grade (%) 0.53% 0.62% 0.59% 0.58% 0.58% 0.59% 0.60%
Production
Copper cathode (EW) (kt) 18.8 13.3 17.4 13.6 19.0 63.3 64.7
Sales
Copper cathode (EW) (kt) 19.8 12.3 17.7 13.7 20.9 64.6 65.5
Spence
Material mined (kt) 24,230 22,314 23,096 21,463 23,103 89,976 93,442
Ore milled (kt) 4,968 5,375 4,919 5,144 4,009 19,447 20,093
Average copper grade (%) 1.13% 1.21% 1.18% 1.03% 1.11% 1.13% 1.14%
Production
Copper cathode (EW) (kt) 53.5 44.7 51.0 53.2 51.6 200.5 189.6
Sales
Copper cathode (EW) (kt) 55.7 43.0 52.2 49.8 57.1 202.1 187.4
18
Production and sales report
Quarter ended Year to date
------------------------------------------------ -----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------- ------ --------- -------- ---------- ------- --------
Copper (continued)
Metals production is payable
metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 62,254 59,216 59,125 58,085 59,002 235,428 244,491
Sulphide ore milled
(100%) (kt) 13,229 12,822 13,098 12,166 12,973 51,059 52,105
Average head grades
- Copper (%) 1.00% 0.94% 0.89% 1.01% 0.91% 0.94% 0.89%
- Zinc (%) 0.95% 0.99% 0.93% 1.01% 1.19% 1.03% 0.80%
Production
Payable copper (kt) 38.5 35.9 33.8 35.2 34.6 139.5 133.8
Payable zinc (t) 29,076 29,201 29,054 25,562 35,983 119,800 87,502
(troy
Payable silver koz) 1,691 1,596 1,331 1,189 1,321 5,437 5,783
Payable lead (t) 1,799 1,415 1,009 464 546 3,434 5,473
Payable molybdenum (t) 328 402 579 420 261 1,662 1,144
Sales
Payable copper (kt) 36.9 31.9 37.0 32.1 36.6 137.6 132.9
Payable zinc (t) 27,936 25,224 30,340 26,456 33,088 115,108 89,982
(troy
Payable silver koz) 1,513 1,475 1,470 1,052 1,311 5,308 5,482
Payable lead (t) 1,493 1,624 972 859 595 4,050 4,835
Payable molybdenum (t) - 168 693 500 388 1,749 1,124
Olympic Dam, Australia
Material mined (1) (kt) 1,974 1,851 1,391 2,056 2,201 7,499 8,008
Ore milled (kt) 2,097 2,302 554 2,188 2,171 7,215 8,604
Average copper grade (%) 2.30% 2.10% 2.22% 2.36% 2.12% 2.19% 2.08%
Average uranium grade (kg/t) 0.58 0.55 0.58 0.71 0.69 0.64 0.62
Production
Copper cathode (ER
and EW) (kt) 51.4 42.0 12.2 40.5 42.0 136.7 166.3
Uranium oxide concentrate (t) 737 880 243 1,118 1,123 3,364 3,661
(troy
Refined gold oz) 28,188 13,101 15,969 28,989 33,497 91,556 104,146
(troy
Refined silver koz) 243 131 135 248 278 792 768
Sales
Copper cathode (ER
and EW) (kt) 51.5 31.6 24.3 36.8 46.0 138.7 163.7
Uranium oxide concentrate (t) 1,298 680 338 509 1,230 2,757 4,105
(troy
Refined gold oz) 24,726 22,435 17,999 20,715 35,714 96,863 97,194
(troy
Refined silver koz) 251 219 118 202 307 846 746
(1) Material mined refers to run of mine ore mined and hoisted.
19
Production and sales report
Quarter ended Year to date
------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------- ------- ------- ------- ------- -------- --------
Iron Ore
Iron ore production and sales are
reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman (kt) 16,241 13,842 18,317 16,412 18,500 67,071 68,283
Area C Joint Venture (kt) 13,016 13,099 13,575 12,802 12,041 51,517 48,744
Yandi Joint Venture (kt) 17,415 14,559 16,348 15,802 17,339 64,048 65,355
Jimblebar (1) (kt) 5,891 6,283 4,583 4,669 15,092 30,627 21,950
Wheelarra (kt) 7,578 7,804 8,734 8,006 614 25,158 27,020
Total production (kt) 60,141 55,587 61,557 57,691 63,586 238,421 231,352
Total production (100%) (kt) 69,714 64,287 71,611 67,048 72,145 275,091 268,302
Sales
Lump (kt) 15,104 13,896 15,145 13,993 15,173 58,207 56,191
Fines (kt) 46,249 40,733 45,769 44,332 47,730 178,564 175,017
Total (kt) 61,353 54,629 60,914 58,325 62,903 236,771 231,208
Total sales (100%) (kt) 71,149 63,322 70,733 67,799 71,385 273,239 268,226
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil (1)
Production (kt) -- - - - - -
Sales (kt) --14 25 -39 47
(1) Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.
20
Production and sales report
Quarter ended Year to date
----------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------ ------- ------ ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production (1)
BMA
Blackwater (kt) 1,766 1,985 1,470 1,384 1,849 6,688 7,296
Goonyella (kt) 1,157 1,639 1,369 2,314 2,639 7,961 7,355
Peak Downs (kt) 1,238 1,602 1,367 1,723 1,658 6,350 6,055
Saraji (kt) 913 1,414 1,198 1,240 1,201 5,053 4,734
Daunia (kt) 560 662 718 547 629 2,556 2,560
Caval Ridge (kt) 760 994 1,272 775 1,244 4,285 3,458
Total BMA (kt) 6,394 8,296 7,394 7,983 9,220 32,893 31,458
BHP Mitsui Coal (2)
South Walker Creek (kt) 1,348 1,400 1,524 1,490 1,615 6,029 5,123
Poitrel (kt) 752 871 767 906 1,174 3,718 3,189
Total BHP Mitsui Coal (kt) 2,100 2,271 2,291 2,396 2,789 9,747 8,312
Total Queensland Coal (kt) 8,494 10,567 9,685 10,379 12,009 42,640 39,770
Sales
Coking coal (kt) 5,496 7,934 6,341 7,177 8,489 29,941 27,527
Weak coking coal (kt) 2,502 3,150 2,816 2,598 2,866 11,430 10,721
Thermal coal (kt) 142 102 173 168 85 528 598
Total (kt) 8,140 11,186 9,330 9,943 11,440 41,899 38,846
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
Haju, Indonesia (1)
Production (kt) ------129
Sales - export (kt) ------117
(1) Shown on 100% basis. BHP interest in saleable production is 75%. BHP completed the sale of IndoMet Coal on 14 October 2016.
New Mexico, USA
Production
Navajo Coal (1) (kt) - - - - - - 451
Total (kt) - - - - - - 451
Sales thermal coal
- local utility - - - - - - 105
(1) The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP.
Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.
21
NSW Energy Coal, Australia
Production (kt) 5,711 4,235 4,383 3,662 6,261 18,541 18,176
Sales
Export thermal coal (kt) 4,913 3,622 4,048 3,181 5,795 16,646 16,499
Inland thermal coal (kt) 327 405 411 400 160 1,376 1,400
Total (kt) 5,240 4,027 4,459 3,581 5,955 18,022 17,899
Cerrejón, Colombia
Production (kt) 2,475 2,497 2,914 2,444 2,762 10,617 10,959
Sales thermal coal
- export (kt) 2,803 2,518 2,619 2,480 2,763 10,380 11,043
Production and sales report
Quarter ended Year to date
-------------------------------------- ---------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------ ------ ------ ------ ------ ------- ------
Other
Nickel production is reported
on the basis of saleable product
Nickel West, Australia
Production
Nickel contained in
concentrate (kt) - - - - - - 0.7
Nickel contained in
finished matte (kt) 5.3 6.8 4.6 1.3 6.4 19.1 13.5
Nickel metal (kt) 19.9 16.0 17.8 19.2 18.5 71.5 70.9
Total nickel production (kt) 25.2 22.8 22.4 20.5 24.9 90.6 85.1
Sales
Nickel contained in
concentrate (kt) - - - - - - 0.7
Nickel contained in
finished matte (kt) 4.9 4.6 6.4 2.1 5.9 19.0 13.0
Nickel metal (kt) 18.1 16.6 17.9 19.7 17.8 72.0 69.3
Total nickel sales (kt) 23.0 21.2 24.3 21.8 23.7 91.0 83.0
22
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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(END) Dow Jones Newswires
July 18, 2018 02:00 ET (06:00 GMT)
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