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0HN3 Bhp Billiton Ltd

51.49
0.00 (0.00%)
Last Updated: 01:00:00
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Share Name Share Symbol Market Type Share ISIN Share Description
Bhp Billiton Ltd LSE:0HN3 London Ordinary Share BHP BILLITON ADR REPTG 2 ORD SHS
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 51.49 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs 54.19B 12.92B 2.5473 11.46 148.12B

BHP Group PLC Operational Review Half Year Ended 31 Dec 2019 (3851A)

21/01/2020 7:00am

UK Regulatory


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TIDMBHP

RNS Number : 3851A

BHP Group PLC

20 January 2020

 
Release Time     IMMEDIATE 
                 21 January 
Date              2020 
Release Number   02/20 
 

BHP OPERATIONAL REVIEW

FOR THE HALF YEARED 31 DECEMBER 2019

   -- All production and unit cost guidance(1) (based on exchange rates of AUD/USD 0.70 and USD/CLP 683) remains 
      unchanged for the 2020 financial year. Escondida unit costs tracking below full year guidance at the December 
      2019 half year largely as a result of higher by-product credits. 
 
   -- Group copper equivalent production was broadly unchanged in the December 2019 half year, with volumes for the 
      full year expected to be slightly higher than last year. 
 
   --  All major projects under development are tracking to plan. In Petroleum, BHP and Woodside signed a non-binding 
      Heads of Agreement to progress the Scarborough gas development. 
 
   --  In Copper exploration, the third phase of the drilling program at Oak Dam in South Australia is in progress and 
      is expected to be completed in the June 2020 quarter. 
 
   -- The financial results for the December 2019 half year are expected to reflect certain items as summarised in the 
      table on page two. 
 
                Dec H19   Dec Q19 
                 (vs Dec   (vs Sep 
Production         H18)      Q19)   Dec Q19 vs Sep Q19 commentary 
--------------  --------  --------  ---------------------------------------------- 
                                    Lower gas sales at Bass Strait and 
                                     Trinidad and Tobago, partially offset 
                                     by higher volumes from the Gulf of 
Petroleum                            Mexico following Tropical Storm Barry 
 (MMboe)              57        28   impacts in the prior quarter. 
                    (9%)      (4%) 
Copper (kt)          885       455  Strong concentrator throughput at Escondida 
                                     more than offset the impact from social 
                                     unrest in Chile. Higher production 
                                     at Olympic Dam following planned preparatory 
                                     work in the prior quarter related to 
                                     the refinery crane replacement. 
                      7%        6% 
                                    Lower volumes at Western Australia 
                                     Iron Ore (WAIO) due to completion of 
Iron ore                             a major car dumper maintenance program 
 (Mt)                121        60   in October 2019. 
                      2%      (1%) 
Metallurgical         20        11  Higher volumes following completion 
 coal (Mt)                           of significant planned wash plant maintenance 
                                     activities in the prior quarter. 
                    (2%)       17% 
Energy coal           12         6  Higher volumes at New South Wales Energy 
 (Mt)                                Coal (NSWEC) as a result of a higher 
                                     average strip ratio in the prior quarter, 
                                     and higher volumes at Cerrejon due 
                                     to adverse weather in the prior quarter. 
                   (12%)        8% 
                                    Volumes reflected the impact of major 
                                     quadrennial maintenance activities 
                                     at the Kwinana refinery and Kalgoorlie 
Nickel (kt)           35        14   smelter. 
                   (11%)     (37%) 
 

Mike Henry assumed the role of BHP Chief Executive Officer and Executive Director on 1 January 2020.

BHP Chief Executive Officer, Mike Henry, said: "We delivered solid operational performances across the portfolio in the first half of the 2020 financial year, offsetting the expected impacts of planned maintenance and natural field decline. Production and cost guidance is unchanged, and we remain on track to deliver slightly higher production than last year. Our six major development projects are progressing well, and we continue to advance our exploration programs in petroleum and copper."

1

Summary

Operational performance

Production and guidance are summarised below.

 
                                                   Dec H19     Dec Q19     Dec Q19 
                                   Dec     Dec        vs          vs          vs           FY20 
Production                          H19     Q19     Dec H18     Dec Q18     Sep Q19      guidance 
-------------------------------  ------  ------  ----------  ----------  ----------  ------------- 
Petroleum (MMboe)                    57      28        (9%)        (6%)        (4%)      110 - 116  Lower end of range 
Copper (kt)                         885     455          7%          9%          6%  1,705 - 1,820 
  Escondida (kt)                    602     309          4%          9%          5%  1,160 - 1,230           Unchanged 
  Other copper(i) (kt)              283     147         15%         11%          7%      545 - 590           Unchanged 
Iron ore (Mt)                       121      60          2%          4%        (1%)      242 - 253 
  WAIO (100% basis) (Mt)            137      68          2%          4%        (2%)      273 - 286           Unchanged 
Metallurgical coal (Mt)              20      11        (2%)          6%         17%        41 - 45 
  Queensland Coal (100% basis) 
   (Mt)                              36      20          0%          9%         21%        73 - 79           Unchanged 
Energy coal (Mt)                     12       6       (12%)        (9%)          8%        24 - 26 
  NSWEC (Mt)                          7       4       (11%)       (13%)          5%        15 - 17           Unchanged 
  Cerrejón (Mt)                  4       2       (13%)        (2%)         13%             9           Unchanged 
Nickel (kt)                          35      14       (11%)       (24%)       (37%)            87           Unchanged 
 
   (i)     Other copper comprises Pampa Norte, Olympic Dam and Antamina. 

Summary of disclosures

BHP expects its December 2019 half year financial results 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 18 February 2020. Accordingly the information is subject to update.

 
                                                         H1 FY20 
                                                          impact 
Description                                              US$M(i)        Classification(ii) 
-------------------------------------------------  -------------------  ------------------ 
Unit costs for Petroleum, WAIO, Queensland         Refer footnote(iii)     Operating costs 
 Coal and NSWEC expected to be in line with 
 full year guidance 
Unit costs for Escondida tracking below            Refer footnote(iii)     Operating costs 
 full year guidance in H1 FY20 primarily 
 due to higher by-product credits 
Exploration expense (including petroleum                           231         Exploration 
 and minerals exploration programs)                                                expense 
The Group's adjusted effective tax rate            Refer footnote(iii)    Taxation expense 
 for H1 FY20 is expected to be at the lower 
 end of the guidance range of 33 to 38 per 
 cent 
Application of IFRS 16 Leases, new leases,                     2,100 -            Net debt 
 lease payments, remeasurement of vessel                         2,500 
 lease contracts(iv) and inclusion of derivatives 
 in net debt 
The Group's net debt target range is US$12                           -            Net debt 
 to US$17 billion, with net debt expected 
 to remain towards the lower end of the range 
 in the near term 
Dividends received from equity accounted                          110      Operating cash 
 investments                                                                        inflow 
Dividends paid to non-controlling interests                       610      Financing cash 
                                                                                   outflow 
Provision related to cancellation of power                     500(V)         Exceptional 
 contracts (after taxation) as part of shift                                   item charge 
 towards 100 per cent renewable energy at 
 Escondida and Spence (no cash outflow in 
 H1 FY20) 
Financial impact on BHP Brasil of the Samarco      Refer footnote(iii)         Exceptional 
 dam failure                                                                   item charge 
 
   (i)     Numbers are not tax effected, unless otherwise noted. 

2

(ii) There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant.

   (iii)   Financial impact is the subject of ongoing work and is not yet finalised. 

(iv) Vessel lease contracts must be remeasured at each reporting date and are priced with reference to a freight index.

(v) Provision related to cancellation of power contracts of approximately US$780 million before taxation.

Major development projects

At the end of December 2019, BHP had six major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$11.4 billion over the life of the projects. All major projects under development are tracking to plan.

Average realised prices

The average realised prices achieved for our major commodities are summarised below.

 
                                                                               Dec H19    Dec H19    Dec H19 
                                                                                  vs         vs         vs 
Average realised prices(i)              Dec H19   Dec H18   Jun H19    FY19     Dec H18    Jun H19     FY19 
-------------------------------------  --------  --------  --------  -------  ---------  ---------  -------- 
Oil (crude and condensate) (US$/bbl)      60.64     69.91     63.29    66.59      (13%)       (4%)      (9%) 
Natural gas (US$/Mscf)(ii)                 4.26      4.67      4.42     4.55       (9%)       (4%)      (6%) 
LNG (US$/Mscf)                             7.62     10.19      8.53     9.43      (25%)      (11%)     (19%) 
Copper (US$/lb)                            2.60      2.54      2.70     2.62         2%       (4%)      (1%) 
Iron ore (US$/wmt, FOB)                   78.30     55.62     77.74    66.68        41%         1%       17% 
Metallurgical coal (US$/t)               140.94    179.82    179.53   179.67      (22%)      (21%)     (22%) 
  Hard coking coal (US$/t)(iii)          154.01    197.86    201.33   199.61      (22%)      (24%)     (23%) 
  Weak coking coal (US$/t)(iii)          101.06    134.12    126.46   130.18      (25%)      (20%)     (22%) 
Thermal coal (US$/t)(iv)                  58.55     84.15     72.18    77.90      (30%)      (19%)     (25%) 
Nickel metal (US$/t)                     15,715    12,480    12,444   12,462        26%        26%       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 large majority of iron ore shipments were linked to the index price for the month of shipment, with price differentials predominantly a reflection of market fundamentals and product quality. The large 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 31 December 2019, the Group had 345 kt of outstanding copper sales that were revalued at a weighted average price of US$2.80 per pound. The final price of these sales will be determined over the remainder of the 2020 financial year. In addition, 322 kt of copper sales from the 2019 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase Underlying EBITDA(2) by US$16 million in the 2020 financial year and is included in the average realised copper price in the above table.

3

Corporate update

In November 2019, BHP approved US$44 million for BHP Brasil's share of the funding for work related to the restart of one concentrator at Samarco. The funding will enable the construction of a filtration plant and the commencement of operation readiness activities. This follows the approval of the Corrective Operating Licence (LOC) for Samarco's operating activities at its Germano Complex in October 2019. Restart can occur when the filtration system is complete and Samarco has met all necessary safety requirements, and will be subject to final approval by Samarco's shareholders.

In December 2019, BHP agreed to fund a total of US$793 million in further financial support for the Renova Foundation and Samarco. This comprises US$581 million to fund the Renova Foundation until 31 December 2020 which will be offset against the Group's provision for the Samarco dam failure, and a short-term facility of up to US$212 million(3) to be made available to Samarco until 31 December 2020.

As at the date of this Operational Review, for the purpose of the December 2019 half year financial results, we are not in a position to provide an update on the ongoing potential financial impacts on BHP Brasil of the Samarco dam failure. Any financial impacts will continue to be treated as an exceptional item.

Petroleum

Production

 
                                                                          Dec H19     Dec Q19     Dec Q19 
                                                          Dec     Dec        vs          vs          vs 
                                                           H19     Q19     Dec H18     Dec Q18     Sep Q19 
                                                        ------  ------  ----------  ----------  ---------- 
Crude oil, condensate and natural gas liquids (MMboe)       26      13        (9%)        (7%)          7% 
Natural gas (bcf)                                          189      89        (8%)        (6%)       (12%) 
Total petroleum production (MMboe)                          57      28        (9%)        (6%)        (4%) 
 

Petroleum - Total petroleum production decreased by nine per cent to 57 MMboe. Guidance for the 2020 financial year remains unchanged at between 110 and 116 MMboe, with volumes expected to be towards the lower end of the guidance range.

Crude oil, condensate and natural gas liquids production declined by nine per cent to 26 MMboe due to the impact of Tropical Storm Barry in the Gulf of Mexico and natural field decline across the portfolio. This decline was partially offset by higher uptime at Pyrenees following the 70 day dry dock maintenance program during the September 2018 quarter.

Natural gas production decreased by eight per cent to 189 bcf, reflecting a decrease in tax barrels at Trinidad and Tobago in accordance with the terms of our Production Sharing Contract, maintenance at North West Shelf, reduced domestic gas sales in Western Australia, and natural field decline across the portfolio.

4

Projects

 
Project and              Capital expenditure      Initial production 
 ownership                       US$M                target date        Capacity                Progress 
----------------------  ----------------------  ----------------------  ----------------------  ---------------------- 
Atlantis Phase 3                           696                    CY20  New subsea production   On schedule and 
 (US Gulf of Mexico)                                                    system that will tie    budget. 
 44% (non-operator)                                                     back to the existing    The overall project is 
                                                                        Atlantis facility,      36% complete. 
                                                                        with capacity 
                                                                        to produce up to 
                                                                        38,000 gross barrels 
                                                                        of oil equivalent per 
                                                                        day. 
Ruby                                       283                    CY21  Five production wells   On schedule and 
(Trinidad & Tobago)                                                     tied back into          budget. 
68.46% (operator)                                                       existing operated       The overall project is 
                                                                        processing facilities,  13% complete. 
                                                                        with capacity 
                                                                        to produce up to 
                                                                        16,000 gross barrels 
                                                                        of oil per day and 80 
                                                                        million gross standard 
                                                                        cubic feet 
                                                                        of natural gas per 
                                                                        day. 
Mad Dog Phase 2                          2,154                    CY22  New floating            On schedule and 
 (US Gulf of Mexico)                                                    production facility     budget. 
 23.9% (non-operator)                                                   with the capacity to    The overall project is 
                                                                        produce up to 140,000   65% complete. 
                                                                        gross barrels 
                                                                        of crude oil per day. 
 

The Bass Strait West Barracouta project is tracking to plan and is expected to achieve first production in the 2021 calendar year.

On 18 November 2019, BHP and Woodside signed a non-binding Heads of Agreement to progress the Scarborough gas development which, amongst other terms, includes agreement on a competitive tariff for gas processing through the Pluto LNG facility and BHP's election not to exercise its option for an additional 10 per cent of the WA-1-R lease. BHP and Woodside are targeting finalisation of the required conditional binding agreements by the end of March 2020. A final investment decision by BHP is expected from the middle of the 2020 calendar year.

Petroleum exploration

Exploration and appraisal wells drilled during the December 2019 quarter are summarised below.

 
                                                                                            Total 
                                       Formation                                   Water     well 
Well           Location    Target         age        BHP equity      Spud date      depth    depth      Status 
-----------  -----------  --------  --------------  ------------  --------------  -------  -------  ------------- 
              Trinidad                                                                               Dry hole; 
               & Tobago                              70% (BHP      30 September    2,119    4,347     Plugged and 
Carnival-1     Block 14    Gas       Late Miocene     Operator)     2019            m        m        abandoned 
 

In Trinidad and Tobago, we completed the exploration program on our Northern licences as part of Phase 4 of our deepwater drilling campaign. The Carnival-1 well was spud on 30 September 2019 and was a dry hole. The well was plugged and abandoned on 13 October 2019. Development planning studies of the discoveries in the North are ongoing. Following Carnival-1, the Deepwater Invictus rig returned to the US Gulf of Mexico where it is currently completing regulatory abandonment work on Shenzi appraisal and exploration boreholes.

During the December 2019 quarter, we extended our contract for the Deepwater Invictus rig for an additional year through to May 2021 to support our ongoing exploration activities.

As reported in the September 2019 Operational Review, we were the apparent highest bidder on blocks GC124 and GC168 in Green Canyon in the central Gulf of Mexico and on 18 additional blocks(4) in the western Gulf of Mexico. All leases were awarded by the Regulator in the December 2019 quarter.

Petroleum exploration expenditure for the December 2019 half year was US$306 million, of which US$164 million was expensed. A US$0.7 billion exploration and appraisal program is being executed for the 2020 financial year.

5

Copper

Production

 
                                Dec H19     Dec Q19     Dec Q19 
                Dec     Dec        vs          vs          vs 
                 H19     Q19     Dec H18     Dec Q18     Sep Q19 
              ------  ------  ----------  ----------  ---------- 
Copper (kt)      885     455          7%          9%          6% 
Zinc (t)      42,937  22,483       (22%)        (7%)         10% 
Uranium (t)    1,886     949         27%          2%          1% 
 

Copper - Total copper production increased by seven per cent to 885 kt. Guidance for the 2020 financial year remains unchanged at between 1,705 and 1,820 kt.

Escondida copper production increased by four per cent to 602 kt, with record average concentrator throughput of 367 ktpd for the half year, driven by ongoing improvements in maintenance and operational performance under our Transformation program. This offset expected grade decline and a 5 kt concentrate production impact related to stoppages associated with the social unrest in Chile. Including cathodes, the total production impact of the stoppages is expected to be 7 kt for the 2020 financial year. The Escondida Water Supply Expansion project was completed in December 2019, on schedule and budget, further increasing total desalinated water capacity to 3,800 litres per second. Guidance for the 2020 financial year remains unchanged at between 1,160 and 1,230 kt, with further improvements in concentrator throughput expected to offset an approximately five per cent reduction in the copper grade of concentrator feed versus the prior year.

Pampa Norte copper production increased by 18 per cent to 124 kt, reflecting the impact of a fire at the electro-winning plant at Spence in the prior year. Guidance for the 2020 financial year remains unchanged at between 230 and 250 kt, including expected grade decline of approximately 10 per cent.

Olympic Dam copper production increased by 32 per cent to 86 kt as a result of the prior period acid plant outage, partially offset by the impact of planned preparatory work undertaken in the September 2019 quarter related to the replacement of the refinery crane. The physical replacement and commissioning of the refinery crane is scheduled for the March 2020 quarter. Guidance for the 2020 financial year remains unchanged at between 180 and 205 kt.

Antamina copper production decreased by two per cent to 74 kt and zinc production decreased by 22 per cent to 43 kt, reflecting lower copper and zinc head grades, in line with the mine plan. Guidance for the 2020 financial year remains unchanged at approximately 135 kt for copper and approximately 110 kt for zinc.

Projects

 
                                    Initial 
                        Capital    production 
Project and           expenditure    target 
 ownership               US$M         date     Capacity                                                                                            Progress 
--------------------  -----------  ----------  --------------------------------------------------------------------------------------------------  -------------------------------------- 
Spence Growth Option        2,460     H1 FY21  New 95 ktpd concentrator is expected to increase Spence's payable copper in concentrate production  On schedule and budget. 
                                                by approximately 185 ktpa in the first 10 years of operation and extend the mining operations 
                                                by more than 50 years. 
  (Chile)                                                                                                                                            The overall project is 81% complete. 
  100% 
 

6

Iron Ore

Production

 
                                              Dec H19     Dec Q19     Dec Q19 
                              Dec     Dec        vs          vs          vs 
                              H19      Q19     Dec H18     Dec Q18     Sep Q19 
                           -------  ------  ----------  ----------  ---------- 
Iron ore production (kt)   121,400  60,395          2%          4%        (1%) 
 

Iron ore - Total iron ore production increased by two per cent to 121 Mt (137 Mt on a 100 per cent basis). Guidance for the 2020 financial year remains unchanged at between 242 and 253 Mt (273 and 286 Mt on a 100 per cent basis), with a stronger second half performance expected in line with our plans.

At WAIO, higher volumes reflected record production at Jimblebar and the impact of the train derailment in the December 2018 half year. This was partly offset by a major car dumper maintenance campaign (completed on 16 October 2019) to further improve port reliability and provide a stable base for our tightly coupled supply chain. Mine operations continued to deliver consistent performance.

Consistent with our revised mine plan, we expect Jimblebar fines Fe grade to improve in the second half of the 2020 financial year, with the typical specification returning to above 60 per cent in the June 2020 quarter.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. Approval of the Corrective Operating Licence (LOC) for Samarco's operating activities at its Germano Complex was received in October 2019 and operation readiness activities for restart have commenced. Restart can occur when the filtration system is complete and Samarco has met all necessary safety requirements, and will be subject to final approval by Samarco's shareholders.

Projects

 
                             Initial 
                 Capital    production 
Project and    expenditure    target 
 ownership        US$M         date     Capacity                                                                                    Progress 
-------------  -----------  ----------  ------------------------------------------------------------------------------------------  -------------------------------------- 
South Flank          3,061        CY21  Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi  On schedule and budget. 
                                         mine. 
  (Australia)                                                                                                                         The overall project is 58% complete. 
  85% 
 

Coal

Production

 
                                            Dec H19     Dec Q19     Dec Q19 
                            Dec     Dec        vs          vs          vs 
                             H19     Q19     Dec H18     Dec Q18     Sep Q19 
                                          ----------  ----------  ---------- 
Metallurgical coal (kt)   20,282  10,924        (2%)          6%         17% 
Energy coal (kt)          11,725   6,078       (12%)        (9%)          8% 
 

Metallurgical coal - Metallurgical coal production was down two per cent to 20 Mt (36 Mt on a 100 per cent basis). Guidance for the 2020 financial year remains unchanged at between 41 and 45 Mt (73 and 79 Mt on a 100 per cent basis), with a stronger second half performance expected in line with our plans.

At Queensland Coal, strong underlying operational performance at Poitrel, Peak Downs, Caval Ridge and Broadmeadow was offset by planned major wash plant shutdowns at Goonyella, Peak Downs and Caval Ridge, low opening raw coal inventories at Blackwater, and truck and shovel underperformance at South Walker Creek.

7

Energy coal - Energy coal production decreased by 12 per cent to 12 Mt. Guidance for the 2020 financial year remains unchanged at between 24 and 26 Mt.

New South Wales Energy Coal production decreased by 11 per cent to 7 Mt as a result of the change in product strategy to focus on higher quality products. Smoke from regional bushfires and dust have reduced air quality at our operations, which has impacted December 2019 production. We are monitoring the situation and if air quality continues to deteriorate then operations could be constrained further in the second half of the year. Guidance for the 2020 financial year remains unchanged at between 15 and 17 Mt.

Cerrejón production decreased by 13 per cent to 4 Mt as a result of a focus on higher quality products, in line with the mine plan, and the impact of adverse weather in the September 2019 quarter. Guidance for the 2020 financial year remains unchanged at approximately 9 Mt.

Other

Nickel production

 
                                Dec H19     Dec Q19     Dec Q19 
                Dec     Dec        vs          vs          vs 
                 H19     Q19     Dec H18     Dec Q18     Sep Q19 
              ------  ------  ----------  ----------  ---------- 
Nickel (kt)     35.3    13.7       (11%)       (24%)       (37%) 
 

Nickel - Nickel West production decreased by 11 per cent to 35 kt due to the major quadrennial maintenance shutdowns at the Kwinana refinery and the Kalgoorlie smelter, as well as planned routine maintenance at the concentrators, in the December 2019 quarter. Guidance for the 2020 financial year remains unchanged, with production expected to be broadly in line with the 2019 financial year.

Operations Services - In Australia, Operations Services has now been deployed at 13 locations across WAIO, Queensland Coal and NSWEC, with over 1,500 permanent jobs created. Deployments are successfully accelerating safety and productivity outcomes.

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,   The project is 85% complete and within the approved budget. 
                             and to                                                                                 Final shaft lining work is continuing. 
                            continue the installation of essential surface infrastructure and utilities. 
  (Canada) 
  100% 
 

Minerals exploration

Minerals exploration expenditure for the December 2019 half year was US$84 million, of which US$67 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Mexico, Peru, Canada, South Australia and the south-west United States.

Consistent with our focus on copper, in November 2019, BHP increased its interest in SolGold Plc, the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador, by 3.6 per cent to 14.7 per cent.

At Oak Dam in South Australia, the third phase of the drilling program commenced in November 2019 and is expected to be completed in the June 2020 quarter. This follows encouraging results from the previous drilling phases, which confirmed high-grade mineralised intercepts of copper, with associated gold, uranium and silver.

8

Variance analysis relates to the relative performance of BHP and/or its operations during the December 2019 half year compared with the December 2018 half 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. Numbers presented may not add up precisely to the totals provided due to rounding. Copper equivalent production based on 2019 financial year average realised prices.

The following footnotes apply to this Operational Review:

(1) 2020 financial year unit cost guidance: Petroleum US$10.50-11.50/boe, Escondida US$1.20-1.35/lb, WAIO US$13-14/t, Queensland Coal US$67-74/t and NSWEC US$55-61/t; based on exchange rates of AUD/USD 0.70 and USD/CLP 683.

(2) 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.

(3) Short-term facility of up to US$212 million includes US$2 million related to the decommissioning of the Germano dam which will be offset against the Group's provision.

(4) We were the apparent high bidder on 18 additional blocks: GB630, GB574, GB575, GB619, GB676, GB677, EB655, EB656, EB701, GB762, GB805, GB806, GB851, GB852, GB895, GB672, GB716 and GB760.

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 barrels of oil equivalent per day (Mboe/d); 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 Group Limited, BHP Group 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 2019 Annual Report and Form 20-F, unless stated otherwise. Notwithstanding that this release may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise.

9

Further information on BHP can be found at: bhp.com

Authorised for lodgement by:

Rachel Agnew

Company Secretary

 
Media Relations                    Investor Relations 
Email: media.relations@bhp.com     Email: investor.relations@bhp.com 
Australia and Asia                 Australia and Asia 
 
 Gabrielle Notley                   Tara Dines 
 Tel: +61 3 9609 3830 Mobile:       Tel: +61 3 9609 2222 Mobile: 
 +61 411 071 715                    +61 499 249 005 
 
 Europe, Middle East and Africa     Europe, Middle East and Africa 
 
 Neil Burrows                       Elisa Morniroli 
 Tel: +44 20 7802 7484 Mobile:      Tel: +44 20 7802 7611 Mobile: 
 +44 7786 661 683                   +44 7825 926 646 
 
 Americas                           Americas 
 
 Judy Dane                          Brian Massey 
 Tel: +1 713 961 8283 Mobile:       Tel: +1 713 296 7919 Mobile: 
 +1 713 299 5342                    +1 832 870 7677 
 
 
BHP Group Limited ABN 49 004          BHP Group plc Registration 
 028 077                               number 3196209 
 LEI WZE1WSENV6JSZFK0JC28              LEI 549300C116EOWV835768 
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10

Production summary

 
                                                         Quarter ended                   Year to date 
 
                                 BHP       Dec       Mar      Jun      Sep      Dec      Dec      Dec 
                               interest    2018     2019      2019     2019     2019     2019     2018 
 
                                          Dec-18   Mar-19    Jun-19   Sep-19   Dec-19 
Petroleum (1) 
Petroleum 
Production 
  Crude oil, condensate 
   and NGL (Mboe)                         14,497    13,236   13,366   12,507   13,412   25,919   28,584 
  Natural gas (bcf)                         93.9      92.9     97.8    100.4     88.7    189.1    206.2 
 
  Total (Mboe)                            30,147    28,719   29,666   29,240   28,195   57,436   62,951 
 
Copper (2) 
Copper 
Payable metal in concentrate 
 (kt) 
  Escondida (3)                   57.5%    212.6     205.4    224.1    237.0    240.3    477.3    452.6 
  Antamina                        33.8%     38.3      34.5     37.4     37.6     36.2     73.8     75.3 
 
  Total                                    250.9     239.9    261.5    274.6    276.5    551.1    527.9 
 
Cathode (kt) 
  Escondida (3)                   57.5%     71.9      62.4     63.5     55.9     68.4    124.3    127.3 
  Pampa Norte (4)                  100%     61.8      67.2     74.1     63.9     60.0    123.9    105.2 
  Olympic Dam                      100%     31.6      50.2     45.2     35.1     50.5     85.6     64.9 
 
  Total                                    165.3     179.8    182.8    154.9    178.9    333.8    297.4 
 
 
Total copper (kt)                          416.2     419.7    444.3    429.5    455.4    884.9    825.3 
 
Lead 
Payable metal in concentrate 
 (t) 
  Antamina                        33.8%      600       456      770      405      383      788    1,163 
 
  Total                                      600       456      770      405      383      788    1,163 
 
Zinc 
Payable metal in concentrate 
 (t) 
  Antamina                        33.8%   24,237    20,848   22,469   20,454   22,483   42,937   54,795 
 
  Total                                   24,237    20,848   22,469   20,454   22,483   42,937   54,795 
 
Gold 
Payable metal in concentrate 
 (troy oz) 
  Escondida (3)                   57.5%   73,726    73,998   74,704   48,801   49,209   98,010  137,304 
  Olympic Dam (refined 
   gold)                           100%   17,856    28,609   37,032   43,205   35,382   78,587   41,327 
 
  Total                                   91,582   102,607  111,736   92,006   84,591  176,597  178,631 
 
Silver 
Payable metal in concentrate 
 (troy koz) 
  Escondida (3)                   57.5%    2,570     2,189    2,074    1,626    1,798    3,424    4,567 
  Antamina                        33.8%    1,178     1,062    1,209    1,101    1,173    2,274    2,487 
  Olympic Dam (refined 
   silver)                         100%      212       230      268      245      203      448      425 
 
  Total                                    3,960     3,481    3,551    2,972    3,174    6,146    7,479 
 
Uranium 
Payable metal in concentrate 
 (t) 
  Olympic Dam                      100%      929     1,106      975      937      949    1,886    1,484 
 
  Total                                      929     1,106      975      937      949    1,886    1,484 
 
Molybdenum 
Payable metal in concentrate 
 (t) 
  Antamina                        33.8%      417        82      178      405      527      932      881 
 
  Total                                      417        82      178      405      527      932      881 
 
 

11

Production summary

 
                                                    Quarter ended                    Year to date 
 
                             BHP       Dec      Mar      Jun      Sep      Dec       Dec       Dec 
                           interest    2018     2019     2019     2019     2019     2019      2018 
 
                                      Dec-18  Mar-19   Jun-19   Sep-19   Dec-19 
Iron Ore 
Iron Ore 
Production (kt) (5) 
  Newman                     85%      17,578   15,608   17,058   16,316   15,766    32,082    33,956 
  Area C Joint Venture       85%      10,280   11,627   13,837   12,620   12,727    25,347    21,976 
  Yandi Joint Venture        85%      15,627   15,214   17,486   17,827   14,857    32,684    32,497 
  Jimblebar (6)              85%      14,326   13,658   14,209   14,239   17,045    31,284    30,679 
  Wheelarra                  85%          30       10        5        3        -         3       144 
  Samarco                    50%           -        -        -        -        -         -         - 
 
  Total                               57,841   56,117   62,595   61,005   60,395   121,400   119,252 
 
Coal 
Metallurgical coal 
Production (kt) (7) 
  BMA                        50%       7,694    7,608    9,090    6,905    8,723    15,628    15,438 
  BHP Mitsui Coal (8)        80%       2,578    2,269    2,804    2,453    2,201     4,654     5,192 
 
  Total                               10,272    9,877   11,894    9,358   10,924    20,282    20,630 
 
Energy coal 
Production (kt) 
  Australia                  100%      4,311    4,552    5,412    3,592    3,763     7,355     8,293 
  Colombia                  33.3%      2,356    2,199    2,017    2,055    2,315     4,370     5,014 
 
  Total                                6,667    6,751    7,429    5,647    6,078    11,725    13,307 
 
Other 
Nickel 
Saleable production (kt) 
  Nickel West (9)            100%       18.1     19.2     28.7     21.6     13.7      35.3      39.5 
 
  Total                                 18.1     19.2     28.7     21.6     13.7      35.3      39.5 
 
Cobalt 
Saleable production (t) 
  Nickel West                100%        154      194      302      211      120       331       403 
 
  Total                                  154      194      302      211      120       331       403 
 
 

(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 1,000 Mboe.

   (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)   Production restated to include other nickel by-products. 

Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.

12

Production and sales report

 
                                                   Quarter ended                Year to date 
 
                                        Dec     Mar     Jun     Sep     Dec     Dec      Dec 
                                        2018    2019    2019    2019    2019    2019     2018 
 
Petroleum (1) 
 
Bass Strait 
  Crude oil and condensate   (Mboe)    1,401     893   1,246   1,409   1,427    2,836    3,054 
  NGL                        (Mboe)    1,447     849   1,299   1,810   1,405    3,215    3,287 
  Natural gas                (bcf)      25.2    21.0    30.6    36.6    27.8     64.4     60.3 
 
  Total petroleum products   (Mboe)    7,048   5,242   7,645   9,319   7,465   16,784   16,391 
 
North West Shelf 
  Crude oil and condensate   (Mboe)    1,520   1,431   1,357   1,337   1,376    2,713    3,034 
  NGL                        (Mboe)      206     193     189     202     200      402      448 
  Natural gas                (bcf)      37.5    36.6    34.8    32.1    32.9     65.0     74.1 
 
  Total petroleum products   (Mboe)    7,976   7,724   7,346   6,889   7,059   13,948   15,832 
 
Pyrenees 
  Crude oil and condensate   (Mboe)    1,101     940   1,001     979     934    1,913    1,383 
 
  Total petroleum products   (Mboe)    1,101     940   1,001     979     934    1,913    1,383 
 
Other Australia (2) 
  Crude oil and condensate   (Mboe)        8       6       7       8       1        9       15 
  Natural gas                (bcf)      13.9    13.0    12.2    12.0    11.4     23.4     27.7 
 
  Total petroleum products   (Mboe)    2,325   2,173   2,040   2,008   1,901    3,909    4,632 
 
Atlantis (3) 
  Crude oil and condensate   (Mboe)    3,802   3,888   3,607   2,759   3,525    6,284    6,992 
  NGL                        (Mboe)      268     275     248     192     245      437      483 
  Natural gas                (bcf)       1.9     2.0     2.2     1.4     1.8      3.2      3.4 
 
  Total petroleum products   (Mboe)    4,387   4,496   4,222   3,184   4,070    7,254    8,042 
 
Mad Dog (3) 
  Crude oil and condensate   (Mboe)    1,158   1,258   1,246   1,096   1,202    2,298    2,428 
  NGL                        (Mboe)       54      58      23      49      52      101      115 
  Natural gas                (bcf)       0.2     0.2     0.2     0.2     0.2      0.4      0.4 
 
  Total petroleum products   (Mboe)    1,245   1,349   1,302   1,178   1,287    2,466    2,610 
 
Shenzi (3) 
  Crude oil and condensate   (Mboe)    2,024   1,881   1,725   1,345   1,671    3,016    4,040 
  NGL                        (Mboe)      121     112     (2)      70      94      164      243 
  Natural gas                (bcf)       0.4     0.4     0.4     0.2     0.3      0.5      0.8 
 
  Total petroleum products   (Mboe)    2,212   2,060   1,790   1,448   1,815    3,263    4,416 
 
Trinidad/Tobago 
  Crude oil and condensate   (Mboe)      200     284     235     175     166      341      647 
  Natural gas                (bcf)      14.0    19.5    17.3    17.9    14.2     32.1     38.0 
 
  Total petroleum products   (Mboe)    2,533   3,534   3,118   3,158   2,533    5,691    6,980 
 
Other Americas (3) (4) 
  Crude oil and condensate   (Mboe)      218     284     272     185     230      415      425 
  NGL                        (Mboe)        4      18       3       2       4        6        7 
  Natural gas                (bcf)       0.1     0.2     0.1       -     0.1      0.1      0.1 
 
  Total petroleum products   (Mboe)      239     335     292     187     251      438      449 
 
UK (5) 
  Crude oil and condensate   (Mboe)       36       -       -       -       -        -       72 
  NGL                        (Mboe)       21       -       -       -       -        -       42 
  Natural gas                (bcf)       0.7       -       -       -       -        -      1.4 
 
  Total petroleum products   (Mboe)      174       -       -       -       -        -      347 
 
Algeria 
  Crude oil and condensate   (Mboe)      908     866     910     889     880    1,769    1,869 
 
  Total petroleum products   (Mboe)      908     866     910     889     880    1,769    1,869 
 
 

13

Production and sales report

 
                                                      Quarter ended                   Year to date 
 
                                         Dec      Mar      Jun      Sep      Dec      Dec      Dec 
                                         2018     2019     2019     2019     2019     2019     2018 
 
 
Petroleum (1) 
Total production 
  Crude oil and condensate   (Mboe)     12,376   11,731   11,606   10,182   11,412   21,594   23,959 
  NGL                        (Mboe)      2,121    1,505    1,760    2,325    2,000    4,325    4,625 
  Natural gas                (bcf)        93.9     92.9     97.8    100.4     88.7    189.1    206.2 
 
  Total                      (Mboe)     30,147   28,719   29,666   29,240   28,195   57,436   62,951 
 
 
 

(1) Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe. Negative production figures represent finalisation adjustments.

    (2)      Other Australia includes Minerva and Macedon. 
    (3)      Gulf of Mexico volumes are net of royalties. 
    (4)      Other Americas includes Neptune, Genesis and Overriding Royalty Interest. 

(5) BHP completed the sale of its interest in the Bruce and Keith oil and gas fields on 30 November 2018. The sale has an effective date of 1 January 2018.

14

Production and sales report

 
                                                            Quarter ended                          Year to date 
 
                                           Dec        Mar        Jun        Sep        Dec        Dec        Dec 
                                           2018       2019       2019       2019       2019       2019       2018 
 
Copper 
Metals production is payable metal 
 unless otherwise stated. 
Escondida, Chile (1) 
  Material mined               (kt)      105,580    103,936    100,693    101,026    100,057    201,083    212,840 
  Sulphide ore milled          (kt)       30,507     32,027     32,519     33,956     33,659     67,615     61,020 
  Average concentrator 
   head grade                  (%)         0.87%      0.82%      0.86%      0.86%      0.87%      0.86%      0.91% 
  Production ex mill           (kt)        219.9      216.9      230.9      245.0      246.1      491.1      461.8 
  Production 
  Payable copper               (kt)        212.6      205.4      224.1      237.0      240.3      477.3      452.6 
  Copper cathode (EW)          (kt)         71.9       62.4       63.5       55.9       68.4      124.3      127.3 
   - Oxide leach               (kt)         23.4       20.9       23.4       21.9       28.3       50.2       42.9 
   - Sulphide leach            (kt)         48.5       41.5       40.1       34.1       40.1       74.2       84.3 
 
  Total copper                 (kt)        284.5      267.8      287.6      292.9      308.7      601.6      579.9 
 
                               (troy 
  Payable gold concentrate      oz)       73,726     73,998     74,704     48,801     49,209     98,010    137,304 
                               (troy 
  Payable silver concentrate    koz)       2,570      2,189      2,074      1,626      1,798      3,424      4,567 
  Sales 
  Payable copper               (kt)        229.2      212.0      223.4      222.2      248.3      470.5      445.7 
  Copper cathode (EW)          (kt)         72.3       56.6       67.5       52.3       70.6      122.9      125.5 
                               (troy 
  Payable gold concentrate      oz)       73,726     73,999     74,704     48,801     49,209     98,010    137,304 
                               (troy 
  Payable silver concentrate    koz)       2,570      2,189      2,074      1,626      1,798      3,424      4,567 
 

(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.

 
Pampa Norte, Chile 
  Cerro Colorado 
  Material mined         (kt)     19,875    15,561    13,534    15,071    18,102    33,173    38,363 
  Ore milled             (kt)      5,069     4,277     4,740     3,995     5,009     9,004     9,871 
  Average copper grade   (%)       0.62%     0.63%     0.64%     0.54%     0.57%     0.56%     0.58% 
  Production 
  Copper cathode (EW)    (kt)       19.4      18.2      23.4      16.4      13.8      30.2      33.6 
  Sales 
  Copper cathode (EW)    (kt)       19.0      15.5      26.8      14.5      15.8      30.3      32.8 
  Spence 
  Material mined         (kt)     21,661    18,632    19,213    21,040    23,132    44,172    44,668 
  Ore milled             (kt)      5,428     4,376     5,224     5,635     5,133    10,768    11,070 
  Average copper grade   (%)       1.10%     1.03%     1.02%     0.95%     0.90%     0.93%     1.16% 
  Production 
  Copper cathode (EW)    (kt)       42.4      49.0      50.7      47.5      46.2      93.7      71.6 
  Sales 
  Copper cathode (EW)    (kt)       39.1      46.1      55.0      46.7      44.3      91.0      68.8 
 
 

15

Production and sales report

 
                                                          Quarter ended                        Year to date 
 
                                          Dec       Mar       Jun       Sep        Dec        Dec        Dec 
                                          2018      2019      2019      2019       2019       2019       2018 
 
Copper (continued) 
Metals production is payable metal unless otherwise 
 stated. 
Antamina, Peru 
  Material mined (100%)      (kt)        62,850    57,900    58,994    59,299     63,224    122,523    125,320 
  Sulphide ore milled 
   (100%)                    (kt)        12,912    11,466    12,864    13,121     13,637     26,758     26,109 
  Average head grades 
   - Copper                  (%)          1.02%     1.04%     1.02%     0.99%      0.96%      0.97%      0.99% 
   - Zinc                    (%)          0.85%     0.87%     0.86%     0.80%      0.82%      0.81%      0.98% 
 
  Production 
  Payable copper             (kt)          38.3      34.5      37.4      37.6       36.2       73.8       75.3 
  Payable zinc               (t)         24,237    20,848    22,469    20,454     22,483     42,937     54,795 
                             (troy 
  Payable silver              koz)        1,178     1,062     1,209     1,101      1,173      2,274      2,487 
  Payable lead               (t)            600       456       770       405        383        788      1,163 
  Payable molybdenum         (t)            417        82       178       405        527        932        881 
 
  Sales 
  Payable copper             (kt)          40.7      33.3      36.0      33.1       43.6       76.7       74.3 
  Payable zinc               (t)         26,072    20,595    21,750    20,196     23,808     44,004     57,894 
                             (troy 
  Payable silver              koz)        1,236     1,027       937       954      1,396      2,350      2,429 
  Payable lead               (t)            649       749       296       844        432      1,276      1,261 
  Payable molybdenum         (t)            535       256       127       173        400        573        743 
 
Olympic Dam, Australia 
  Material mined (1)         (kt)         2,434     2,191     2,425     2,477      2,347      4,824      4,478 
  Ore milled                 (kt)         2,157     2,371     2,195     2,200      2,153      4,353      3,399 
  Average copper grade       (%)          2.10%     2.22%     2.30%     2.31%      2.36%      2.33%      2.08% 
  Average uranium grade      (kg/t)        0.62      0.65      0.65      0.65       0.71       0.68       0.62 
 
  Production 
  Copper cathode (ER 
   and EW)                   (kt)          31.6      50.2      45.2      35.1       50.5       85.6       64.9 
  Payable uranium            (t)            929     1,106       975       937        949      1,886      1,484 
                             (troy 
  Refined gold                oz)        17,856    28,609    37,032    43,205     35,382     78,587     41,327 
                             (troy 
  Refined silver              koz)          212       230       268       245        203        448        425 
 
  Sales 
  Copper cathode (ER 
   and EW)                   (kt)          26.6      47.4      50.5      32.1       49.0       81.1       60.5 
  Payable uranium            (t)            828       550     1,427       778        638      1,416      1,593 
                             (troy 
  Refined gold                oz)        17,812    27,574    36,133    40,073     36,507     76,580     38,957 
                             (troy 
  Refined silver              koz)          177       241       257       250        202        452        393 
 
 

(1) Material mined refers to run of mine ore mined and hoisted.

16

Production and sales report

 
                                                   Quarter ended                    Year to date 
 
                                      Dec      Mar      Jun      Sep      Dec       Dec       Dec 
                                      2018     2019     2019     2019     2019      2019      2018 
 
Iron Ore 
Iron ore production and sales 
 are reported on a wet tonnes 
 basis. 
Pilbara, Australia 
  Production 
  Newman                     (kt)    17,578   15,608   17,058   16,316   15,766    32,082    33,956 
  Area C Joint Venture       (kt)    10,280   11,627   13,837   12,620   12,727    25,347    21,976 
  Yandi Joint Venture        (kt)    15,627   15,214   17,486   17,827   14,857    32,684    32,497 
  Jimblebar (1)              (kt)    14,326   13,658   14,209   14,239   17,045    31,284    30,679 
  Wheelarra                  (kt)        30       10        5        3        -         3       144 
 
  Total production           (kt)    57,841   56,117   62,595   61,005   60,395   121,400   119,252 
 
  Total production (100%)    (kt)    65,515   63,609   71,133   69,257   68,044   137,301   134,857 
 
  Sales 
  Lump                       (kt)    14,020   13,603   15,568   14,785   15,982    30,767    29,034 
  Fines                      (kt)    44,059   41,981   48,064   45,509   45,785    91,294    90,586 
 
  Total                      (kt)    58,079   55,584   63,632   60,294   61,767   122,061   119,620 
 
  Total sales (100%)         (kt)    65,758   62,853   72,173   68,291   69,481   137,772   135,179 
 
 
 
   (1)   Shown on a 100% basis. BHP interest in saleable production is 85%. 
 
Samarco, Brazil (1) 
  Production          (kt)     -   -   -   -   -   -    - 
  Sales               (kt)    10   -   -   -   -   -   10 
 

(1) Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water dam on

5 November 2015.

17

Production and sales report

 
                                              Quarter ended                       Year to date 
 
                                  Dec         Mar      Jun      Sep      Dec      Dec      Dec 
                                  2018        2019     2019     2019     2019     2019     2018 
 
Coal 
Coal production is reported on the 
 basis of saleable product. 
Queensland Coal 
  Production (1) 
  BMA 
  Blackwater               (kt)      1,680    1,484    1,735    1,045    1,734    2,779    3,384 
  Goonyella                (kt)      1,813    2,141    2,620    1,489    2,662    4,151    3,802 
  Peak Downs               (kt)      1,685    1,468    1,649    1,423    1,386    2,809    2,816 
  Saraji                   (kt)      1,288    1,250    1,243    1,214    1,325    2,539    2,399 
  Daunia                   (kt)        419      470      669      556      579    1,135    1,039 
  Caval Ridge              (kt)        809      795    1,174    1,178    1,037    2,215    1,998 
 
  Total BMA                (kt)      7,694    7,608    9,090    6,905    8,723   15,628   15,438 
 
  Total BMA (100%)         (kt)     15,388   15,216   18,180   13,810   17,446   31,256   30,876 
 
 
  BHP Mitsui Coal (2) 
  South Walker Creek       (kt)      1,636    1,429    1,624    1,378    1,196    2,574    3,141 
  Poitrel                  (kt)        942      840    1,180    1,075    1,005    2,080    2,051 
 
  Total BHP Mitsui Coal    (kt)      2,578    2,269    2,804    2,453    2,201    4,654    5,192 
 
 
 
  Total Queensland Coal    (kt)     10,272    9,877   11,894    9,358   10,924   20,282   20,630 
 
  Total Queensland Coal 
  (100%)                   (kt)     17,966   17,485   20,984   16,263   19,647   35,910   36,068 
 
  Sales 
  Coking coal              (kt)      7,514    7,221    7,932    7,299    7,775   15,074   14,870 
  Weak coking coal         (kt)      3,058    3,282    2,942    2,466    2,475    4,941    5,871 
  Thermal coal             (kt)        157      379      350       94       30      124      298 
 
  Total                    (kt)     10,729   10,882   11,224    9,859   10,280   20,139   21,039 
 
  Total (100%)             (kt)     18,818   19,176   19,789   17,145   18,459   35,604   36,920 
 
 
 

(1) Production figures include some thermal coal.

(2) Shown on a 100% basis. BHP interest in saleable production is 80%.

 
NSW Energy Coal, Australia 
  Production                 (kt)    4,311   4,552   5,412   3,592   3,763   7,355   8,293 
  Sales 
  Export thermal coal        (kt)    4,809   3,529   5,181   3,075   3,952   7,027   8,358 
  Inland thermal coal        (kt)      393     302     975     567       -     567     725 
 
  Total                      (kt)    5,202   3,831   6,156   3,642   3,952   7,594   9,083 
 
Cerrejón, Colombia 
  Production                 (kt)    2,356   2,199   2,017   2,055   2,315   4,370   5,014 
  Sales thermal coal 
   - export                  (kt)    2,297   2,200   2,245   2,069   2,261   4,330   4,886 
 

18

Production and sales report

 
                                                Quarter ended                Year to date 
 
                                      Dec     Mar     Jun     Sep     Dec     Dec     Dec 
                                      2018    2019    2019    2019   2019     2019    2018 
 
Other 
Nickel production is reported 
 on the basis of saleable product 
Nickel West, Australia 
  Mt Keith 
  Nickel concentrate         (kt)     44.9    52.5    52.8    43.7    31.5    75.2    95.1 
  Average nickel grade       (%)      19.8    19.2    19.5    18.3    17.3    17.9    19.3 
  Leinster 
  Nickel concentrate         (kt)     65.3    51.8    48.3    67.2    56.6   123.8   144.1 
  Average nickel grade       (%)       8.4     9.3    10.8    10.0     8.6     9.4     8.4 
  Saleable production 
  Refined nickel (1) 
   (2)                       (kt)     16.3    17.6    19.9    17.4    11.1    28.5    36.1 
  Intermediates and nickel 
   by- 
   products (1) (3)          (kt)      1.8     1.6     8.8     4.2     2.6     6.8     3.4 
 
  Total nickel (1)           (kt)     18.1    19.2    28.7    21.6    13.7    35.3    39.5 
 
  Cobalt by-products         (t)       154     194     302     211     120     331     403 
  Sales 
  Refined nickel (1) 
   (2)                       (kt)     17.3    17.9    19.9    17.0    10.6    27.6    36.6 
  Intermediates and nickel 
   by- 
   products (1) (3)          (kt)      2.1     0.1     8.4     5.7     2.7     8.4     4.3 
 
  Total nickel (1)           (kt)     19.4    18.0    28.3    22.7    13.3    36.0    40.9 
 
  Cobalt by-products         (t)       154     194     302     212     131     343     403 
 
 

(1) Production and sales restated to include other nickel by-products.

(2) High quality refined nickel metal, including briquettes and powder.

(3) Nickel contained in matte and by-product streams.

19

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January 21, 2020 02:00 ET (07:00 GMT)

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