Wrap Text
Quarterly Activities Report
BHP Group Limited
BHP Group Limited ABN 49 004 028 077
Registered in Australia
Registered Office: Level 18, 171 Collins Street Melbourne VIC 3000
Share code: BHG
ISIN: AU000000BHP4
NEWS RELEASE
Release Time IMMEDIATE
Date 21 April 2023
Release Number 9/23
BHP OPERATIONAL REVIEW
FOR THE NINE MONTHS ENDED 31 MARCH 2023
. A colleague, Jody Byrne, tragically was fatally injured in a rail incident
in our Port Hedland operations in February.
. Production guidance for the 2023 financial year remains unchanged for iron
ore, metallurgical coal and energy coal. Strong performance means Olympic
Dam and Pampa Norte are expected to be toward the upper end of their
guidance ranges, while BHP Mitsubishi Alliance (BMA) is expected to be at
the bottom of its range.
. Production guidance at Escondida has been lowered to between 1,050 and
1,080 kt (from between 1,080 and 1,180 kt). Given the strong performance
at the other copper assets, full year total copper production guidance
remains unchanged at between 1,635 and 1,825 kt. Full year nickel
production has been lowered to between 75 and 85 kt (from between 80 and
90 kt).
. Western Australia Iron Ore (WAIO) achieved record production of 212.6 Mt
(100% basis) for the nine month period. Pleasingly, there was no
significant damage or reported injuries at our WAIO sites as a result of
Tropical Cyclone Ilsa. Our Port Hedland operations were suspended in
coordination with the Pilbara Ports Authority.
. Full year unit cost guidance/1/ remains unchanged from the half year
period ended 31 December 2022. Escondida and WAIO are expected to be at the
top of their respective ranges.
. On 13 April 2023, shareholders of OZ Minerals Ltd (OZL) voted to approve
the scheme of arrangement for BHP to acquire 100 per cent of the shares in
OZL. The Scheme became effective on 18 April 2023 and is expected to be
implemented on 2 May 2023.
. The South Australian government has granted environmental approval for the
next phase of exploration drilling at Oak Dam.
. BHP has identified a new copper porphyry mineralised system, Ocelot, in the
Miami-Globe copper district in Arizona, United States.
BHP Chief Executive Officer, Mike Henry:
"Safety is paramount, and we are deeply saddened by the tragic death of Jody
Byrne in an incident at Port Hedland in February. An investigation into the
cause of the incident is underway, the findings of which will be shared widely.
“Our WA iron ore business achieved record production, and total copper output for
the Group was up for the nine months, while metallurgical coal volumes were down slightly
due to significant wet weather. Overall copper production for the year remains on track,
however we’ve reduced production guidance at Escondida and also at Nickel West.
We continue to focus on safety, productivity and costs as we navigate ongoing
challenges and inflationary impacts.
"Last week, OZ Minerals shareholders voted overwhelmingly in favour of BHP's
offer. We are now focused on the safe integration of the two businesses and we
look forward to building an internationally competitive copper business in
South Australia and incorporating West Musgrave into our nickel options in
Western Australia. We are pursuing growth options in copper and nickel globally
- we aim to have up to 10 drill rigs on the ground at Oak Dam in South
Australia in the next few months and have seen promising results from a
potential new copper prospect in Arizona. In Canada, we signed $260 million
(CAD) in new contracts with Indigenous suppliers in March, and construction of
the Jansen potash project is on track.
"Recent engagements with customers in China and India have reaffirmed our
positive outlook for commodity demand, with China's economic rebound and solid
momentum in India's steelmaking growth helping to offset the impact of slowing
growth in the US, Japan and Europe."
--------------------------------------------------------------------------------
BHP Operational Review for the 1
nine months ended 31 March 2023
Summary
Operational performance
Production and guidance are summarised below.
Mar YTD23 Mar Q23 Mar Q23 Previous Current
Mar Mar vs vs vs FY23 FY23
Production YTD23 Q23 Mar YTD22 Mar Q22 Dec Q22 guidance guidance
---------- ------- ----- --------- ------- ------- ------------- -------------
Copper (kt)...................... 1,240.3 405.9 12% 10% (4%) 1,635 - 1,825 1,635 - 1,825 Unchanged
Escondida (kt)................ 762.3 251.6 7% 11% (2%) 1,080 - 1,180 1,050 - 1,080 Lowered
Pampa Norte (kt).............. 220.3 73.0 8% 7% (5%) 240 - 290 240 - 290 Upper end
Olympic Dam (kt).............. 155.8 51.7 88% 33% (5%) 195 - 215 195 - 215 Upper end
Antamina (kt)................. 101.9 29.6 (8%) (18%) (16%) 120 - 140 120 - 140 Unchanged
Iron ore (Mt).................... 191.7 59.8 1% 0% (11%) 249 - 260 249 - 260
WAIO (Mt)..................... 188.5 58.7 1% 0% (11%) 246 - 256 246 - 256 Unchanged
WAIO (100% basis) (Mt)........ 212.6 66.2 1% (1%) (11%) 278 - 290 278 - 290 Unchanged
Samarco (Mt).................. 3.3 1.0 7% 5% (4%) 3 - 4 3 - 4 Top end
Metallurgical coal - BMA (Mt).... 20.5 6.9 (2%) (13%) 0% 29 - 32 29 - 32
BMA (100% basis) (Mt)......... 41.1 13.9 (2%) (13%) 0% 58 - 64 58 - 64 Bottom end
Energy coal - NSWEC (Mt)......... 9.4 3.9 (4%) 53% 38% 13 - 15 13 - 15 Unchanged
Nickel (kt)...................... 58.0 19.6 0% 5% 11% 80 - 90 75 - 85 Lowered
Mar YTD23 Mar Q23
Production (vs Mar YTD22) (vs Dec Q22) Mar Q23 vs Dec Q22 commentary
---------- -------------- ------------ -----------------------------
Copper (kt)..................... 1,240.3 405.9 Lower concentrate volumes at Escondida reflect the impact of different
12% (4%) ore feed sources on throughput and recovery performance, and lower
volumes at Olympic Dam as a result of reduced refinery productivity
following the tie-in of minor upgrade works.
Iron ore (Mt)................... 191.7 59.8 Lower volumes at WAIO due to the temporary shutdown of all
1% (11%) operations following the tragic fatality in February, and the planned
tie-in activity of the Port Debottlenecking Project 1 (PDP1).
Metallurgical coal (Mt)......... 20.5 6.9 Production in line with the prior period despite continued significant
(2%) 0% wet weather.
Energy coal (Mt)................ 9.4 3.9 Higher production following improved weather, labour stability and
(4%) 38% strip ratios, and a reduced proportion of washed coal.
Nickel (kt)..................... 58.0 19.6 Higher volumes due to planned maintenance at the smelter and refinery
0% 11% in the prior quarter and increased purchases of third party products.
Corporate update
Portfolio
In February, BHP issued US$2.75 billion in senior unsecured bonds in the US
market comprising: US$1.0 billion in three-year bonds; US$1.0 billion in
five-year bonds; and US$0.75 billion in 10-year bonds with the proceeds
intended for general corporate purposes.
On 13 April, BHP announced that OZ Minerals Ltd (OZL) shareholders approved the
scheme of arrangement for BHP to acquire 100 per cent of the shares in OZL (the
Scheme). The Scheme became effective on 18 April 2023 and is expected to be
implemented on 2 May 2023. Once effective, the acquisition of OZL and its
assets will provide BHP with further exposure to copper, nickel and uranium.
OZL's shareholders will be paid total cash consideration of A$28.25 per OZL
share, comprising the scheme consideration paid by BHP of A$26.50 for each OZL
share held at the scheme record date, which is 24 April 2023, and a fully
franked special dividend paid by OZL of A$1.75 for each OZL share held on the
special dividend record date, which is 21 April 2023. The cash payment by BHP
will be funded using a combination of BHP's existing cash reserves and the
proceeds of a debt facility.
--------------------------------------------------------------------------------
BHP Operational Review for the 2
nine months ended 31 March 2023
Decarbonisation
Throughout the March 2023 quarter we continued to make progress towards our
decarbonisation targets and goals and supported efforts to reduce greenhouse
gas (GHG) emissions across our value chain. For example:
. BHP signed an agreement with Hatch to design an electric smelting furnace
(ESF) pilot plant to demonstrate a pathway to lower carbon dioxide (CO\\2\\)
intensity in steel production using iron ore from our WAIO mines. Estimates
show that reductions of more than 80 per cent in CO\\2\\ emissions intensity
are potentially achievable processing Pilbara iron ores through a Direct
Reduced Iron (DRI)-ESF pathway, compared to the current industry average
using the conventional blast furnace route.
. BHP expanded its Memorandum of Understanding (MoU) with China's HBIS Group,
one of the world's largest steelmakers and a major iron ore customer of BHP,
to incorporate a pilot of carbon capture and utilisation technology at
HBIS's steel operations in China.
. BHP announced the trial of Hydrotreated Vegetable Oil (HVO) to power haul
trucks and other mining equipment over an initial three-month trial period
at the Yandi iron ore operations in Western Australia in collaboration with
BP. The HVO has internationally recognised certification as being sourced
from more sustainable feedstocks such as waste products.
Copper
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------- ------- --------- ------- -------
Copper (kt).............. 1,240.3 405.9 12% 10% (4%)
Zinc (t)................. 86,226 23,612 (10%) (28%) (21%)
Uranium (t).............. 2,593 833 62% 7% (12%)
Copper - Total copper production increased by 12 per cent to 1,240 kt. Guidance
for the 2023 financial year remains unchanged at between 1,635 and 1,825 kt.
Escondida copper production increased by seven per cent to 762 kt primarily due
to higher concentrator feed grade of 0.79 per cent, compared to 0.74 per cent
in the nine months to March 2022. The positive impact of higher grade was
partially offset by the impact of road blockades across Chile in the December
2022 quarter, which reduced availability of some key mine supplies. Full year
production has been lowered to between 1,050 and 1,080 kt (from between 1,080
and 1,180 kt) as we manage geotechnical risk in a high grade section of the
Escondida pit. This has led to a resequencing of the mine plan, resulting in
lower volumes of mined ore and increased processing of lower grade stockpiles
through the concentrators. Concentrator feed grade is expected to improve in
the June 2023 quarter, compared to the nine months ended March 2023. Medium
term guidance of 1.2 Mtpa of copper production on average over the next five
years remains unchanged.
Pampa Norte copper production increased by eight per cent to 220 kt as a result
of higher concentrator throughput at the Spence Growth Option (SGO). Full year
production is expected to be towards the upper end of the guidance range of
between 240 and 290 kt. The SGO plant modifications which commenced in August
2022 are planned to be completed in the 2023 calendar year. Expected capital
expenditure for the works remains unchanged at approximately US$100 million.
Further studies are ongoing for additional capacity uplift at SGO. Cerro
Colorado continues to transition towards planned closure at the end of the 2023
calendar year.
Olympic Dam copper production of 156 kt was an increase of 88 per cent on the
prior period, primarily as a result of the major smelter maintenance campaign
(SCM21) across the December 2021 and March 2022 quarters. Continued strong
concentrator and smelter performance has delivered record concentrate smelted
for the nine month period. The March 2023 quarter was also a record gold
production quarter, contributing to a record nine months for both gold and
silver production following the implementation of debottlenecking initiatives
in the prior year. Copper production is expected to be towards the upper end of
the guidance range for the 2023 financial year at between 195 and 215 kt.
Antamina copper production decreased by eight per cent to 102 kt reflecting
expected lower copper feed grades, partially offset by higher throughput. Zinc
production was 10 per cent lower at 86 kt reflecting expected lower zinc feed
grades, partially offset by higher throughput. Production guidance remains
unchanged for the 2023 financial year, with copper production of between 120
and 140 kt, and zinc production of between 115 and 135 kt.
--------------------------------------------------------------------------------
BHP Operational Review for the 3
nine months ended 31 March 2023
Iron ore
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------- ------- --------- ------- -------
Iron ore production (kt)........ 191,748 59,773 1% 0% (11%)
Iron ore - Total iron ore production increased by one per cent to 192 Mt.
Guidance for the 2023 financial year remains unchanged at between 249 and 260
Mt.
WAIO production increased by one per cent to a nine month record of 188 Mt (213
Mt on a 100 per cent basis), reflecting continued strong supply chain
performance, including improved car dumper utilisation and lower COVID-19
related impacts than the prior period. This was partially offset by a 24 hour
safety stop across the WAIO business and a further two day suspension of rail
operations following the tragic fatality, and the planned tie-in of PDP1, which
remains on track to be completed in the 2024 calendar year.
The production ramp up at South Flank remains on track to reach full capacity
of 80 Mtpa (100 per cent basis) by the end of the 2024 financial year. Current
year performance has contributed to record year to date WAIO lump sales.
Additionally, the deployment of autonomous haul trucks is well progressed and
is expected to be completed by the end of the 2023 calendar year.
WAIO production guidance for the 2023 financial year remains unchanged at between
246 and 256 Mt (278 and 290 Mt on a 100 per cent basis). There has been no significant
damage or reported injuries at our WAIO sites as a result of Tropical Cyclone Ilsa
in April 2023. Our Port Hedland operations were suspended in coordination
with the Pilbara Ports Authority, but have since ramped up to full capacity.
Full year unit cost guidance at WAIO of between $18 and $19 per tonne is expected
to be at the top of the range.
Samarco production increased by seven per cent to 3.3 Mt (BHP share),
reflecting strong concentrator performance. Production for the 2023 financial
year is expected to be at the top of the guidance range of between 3 and 4 Mt
(BHP share).
In late March, the Fourth Federal Court in Brazil ordered BHP Brasil and Vale
to deposit a total of BRL 10.3 billion (approximately US$1.0 billion, BHP
Brasil share) in 10 instalments to be paid every 40 days, with the first
instalment due on 20 May. The decision relates to a dispute as to whether
certain territories in the State of Espirito Santo were affected by the dam
failure. The Fourth Federal Court ordered that the deposit be paid to ensure
that funds are available if required for reparation in those territories. BHP
Brasil has appealed the decision.
The Group's provisions related to the Samarco dam failure and Germano dam
decommissioning are subject to ongoing assessment and totalled US$3.3 billion
as at 31 December 2022, including an expected cash outlay for the 2023 calendar
year of US$1.95 billion.
There are a number of matters related to the Samarco dam failure which are
disclosed as contingent liabilities and given the status of proceedings it is
not possible to provide a range of possible outcomes or a reliable estimate of
potential future exposures for BHP. Please refer to the financial results for
the period ending 31 December 2022 for further information.
--------------------------------------------------------------------------------
BHP Operational Review for the 4
nine months ended 31 March 2023
Coal
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------- ------- --------- ------- -------
Metallurgical coal (kt)....... 20,543 6,929 (2%) (13%) 0%
Energy coal (kt).............. 9,408 3,934 (4%) 53% 38%
Metallurgical coal - BMA production decreased by two per cent to 21 Mt (41 Mt
on a 100 per cent basis) as a result of significant wet weather. This was
partially offset by continued improvement in underlying truck productivity, in
particular at Goonyella and Daunia following the completion of their autonomous
fleet transitions, as well as reduced COVID-19 related labour constraints. In
the nine months to March 2023, BMA has experienced the highest level of
rainfall in the past 10 years, significantly impacting production./2/
Full year production is expected to be at the bottom of the guidance range of
between 29 and 32 Mt (58 and 64 Mt on a 100 per cent basis), with further wet
weather in the June 2023 quarter posing a risk to this outcome. The additional
long wall move at Broadmeadow noted in the December 2022 Operational Review is
planned to commence in June 2023.
While we will continue to sustain and optimise our existing assets, BMA is not
making significant new investments in Queensland given the changes to the
royalty regime imposed by the current government which have increased risk and
reduced competitiveness of investments in the State.
Energy coal - New South Wales Energy Coal (NSWEC) production decreased by four
per cent to 9 Mt reflecting the impacts of the wet weather experienced in the
December 2022 half, and the increased proportion of washed coal. This was partially
offset by improved stability in labour,particularly reduced absenteeism which
impacted stripping performance and mine productivity in the prior period. Higher quality
products made up approximately 85 per cent of sales, compared to approximately 90 per
cent in the prior period. Production guidance for the 2023 financial year remains
unchanged at between 13 and 15 Mt.
Following the NSW Government Directions to local thermal coal producers, NSWEC
has started delivering their domestic allocation of 0.175 Mt per quarter from
April 2023. The full allocation for the June 2023 quarter has been sold at
100 per cent of the current price cap of A$125 per tonne. The reservation
allocation for the 2024 financial year is expected to be 0.7 Mt in line with
the Directions.
Other
Nickel production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------- ------- --------- ------- -------
Nickel (kt).................... 58.0 19.6 0% 5% 11%
Nickel - Nickel West production was in line with the prior period at 58 kt,
with the ramp up of the refinery following planned maintenance in the December
2022 quarter offset by the increased proportion of nickel concentrate and matte
products.
In March, Nickel West advised one of its third party product providers, Mincor
Resources, that it will no longer accept off-specification product containing
high levels of arsenic due to the issues with processing this ore. Further, a
heavy rain event was experienced at the Mt Keith operations in early April
2023 impacting mine progression. As a result, production guidance for the 2023
financial year has been revised to between 75 and 85 kt (from between 80 and
90 kt).
--------------------------------------------------------------------------------
BHP Operational Review for the 5
nine months ended 31 March 2023
Potash - Our major potash project under development at Jansen is tracking to
plan. In the March 2023 quarter, we commenced blasting and excavation work at
the bottom of the shafts. For the remainder of the 2023 financial year, we will
continue to focus on civil and mechanical construction on the surface and
underground, as well as equipment procurement and port construction. The
feasibility study for Jansen Stage 2 continues to progress and is on track to
be completed during the 2024 financial year.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- ------------------------------------- ----------------------------------
Jansen Stage 1 5,723 End-CY26 Design, engineering and construction Project is 20% complete
(Canada) of an underground potash mine and
100% surface infrastructure, with capacity
to produce 4.35 Mtpa.
Minerals exploration
Minerals exploration expenditure for the nine months to 31 March 2023 was
US$239 million, of which US$196 million was expensed.
BHP has identified a new copper porphyry mineralised system, Ocelot, located
140 km east of Phoenix, Arizona, United States in the Miami-Globe copper
district. From 2019 to present, BHP has drilled 12 holes in the project area,
totalling 17,748 metres with 10 holes intersecting porphyry copper style
mineralisation. Ten of the holes resulted in 12 intervals of significant
intercepts with laboratory assay results average copper grades ranging from
0.44 to 0.92 per cent copper. The project remains at an early exploration stage
with two holes to be completed from the current exploration drill program and
is expected to be completed by May 2023. For further details refer to
Appendix 1.
At Oak Dam in South Australia we continue to work in close partnership with
traditional owners, and the South Australian government have recently granted
environmental approval for the next phase of exploration drilling. The approval
permits up to 14 drill rigs, more than double the current approval, an
accommodation camp for up to 150 people and core processing facilities. We
currently operate 6 drills rigs in the area and expect to increase this to 10
drill rigs by the end of the September 2023 quarter.
Following the execution of the Option Agreement with Mundoro Capital in January
2023, covering three exploration projects in Serbia (Trstenik, Borsko and South
Timok), Mundoro has commenced initial drilling on the Borsko project.
The inaugural BHP Xplor accelerator program, supporting early-stage mineral
exploration companies to find critical resources, such as copper and nickel, is
now underway. Seven companies were selected into the program, which offers
participants in-kind services, mentorship and networking opportunities.
Elsewhere, we continue to progress exploration activities in Canada, Chile,
Ecuador, and Peru.
Variance analysis relates to the relative performance of BHP and/or its
operations during the nine months ended March 2023 compared with the nine
months ended March 2022, 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.
The following footnotes apply to this Operational Review:
1 2023 financial year unit cost guidance: Escondida US$1.25-1.45/lb, WAIO
US$18-19/t, BMA US$100-105/t and NSWEC US$84-91/t; based on exchange rates
of AUD/USD 0.72 and USD/CLP 830.
2 767mm of rainfall recorded at Moranbah in the nine months ended 31 March
2023 compared to 498mm in the nine months ended 31 March 2022. The first
nine months of financial year 2023 are the wettest in the last ten years,
and the fifth wettest in the last fifty years.
The following abbreviations may have been used throughout this report: 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); megawatt (MW); metre (m); millimetre (mm); million tonnes (Mt);
million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand ounces
(koz); 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', the 'Group', 'BHP Group', 'we', 'us', 'our'
and 'ourselves' are used to refer to BHP Group Limited and, except where the
context otherwise requires, our subsidiaries. Refer to note 28 'Subsidiaries'
of the Financial Statements in BHP's 30 June 2022 Appendix 4E for a list of our
significant subsidiaries. Those terms do not include non-operated assets.
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. Our
non-operated assets include Antamina and Samarco. BHP Group cautions against
undue reliance on any forward-looking statement or guidance in this release,
particularly in light of the current economic climate and significant
volatility, uncertainty and disruption arising in connection with COVID-19.
These forward-looking statements are based on information available as at the
date of this release and are not guarantees or predictions of future
performance and involve known and unknown risks, uncertainties and other
factors, many of which are beyond our control and which may cause actual
results to differ materially from those expressed in the statements contained
in this release.
--------------------------------------------------------------------------------
BHP Operational Review for the 6
nine months ended 31 March 2023
Further information on BHP can be found at: bhp.com
Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Media Relations Investor Relations
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Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Mobile: +61 499 006 018
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BHP Group Limited ABN 49 004 028 077
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BHP Operational Review for the 7
nine months ended 31 March 2023
Production summary
Quarter ended Year to date
------------------------------------- ---------------
Mar Jun Sep Dec Mar Mar Mar
BHP 2022 2022 2022 2022 2023 2023 2022
interest ------ ------- ------- ------ ------- ------- -------
Copper/1/
Copper
Payable metal in concentrate (kt)
Escondida /2/ ......................... 57.5% 178.2 233.5 203.1 208.3 200.8 612.2 569.1
Pampa Norte /3/ ....................... 100.0% 32.4 28.2 28.6 32.5 32.0 93.1 83.0
Antamina .............................. 33.8% 36.1 39.6 37.1 35.2 29.6 101.9 110.3
------ ------- ------- ------ ------- ------- -------
Total ................................. 246.7 301.3 268.8 276.0 262.4 807.2 762.4
------ ------- ------- ------ ------- ------- -------
Cathode (kt)
Escondida /2/ ......................... 57.5% 48.2 55.8 49.6 49.7 50.8 150.1 145.6
Pampa Norte /3/ ....................... 100% 35.8 49.0 42.0 44.2 41.0 127.2 121.0
Olympic Dam ........................... 100% 39.0 55.7 49.7 54.4 51.7 155.8 82.7
------ ------- ------- ------ ------- ------- -------
Total ................................. 123.0 160.5 141.3 148.3 143.5 433.1 349.3
------ ------- ------- ------ ------- ------- -------
Total copper (kt) ........................ 369.7 461.8 410.1 424.3 405.9 1,240.3 1,111.7
------ ------- ------- ------ ------- ------- -------
Lead
Payable metal in concentrate (t)
Antamina .............................. 33.8% 282 181 228 114 169 511 937
------ ------- ------- ------ ------- ------- -------
Total ................................. 282 181 228 114 169 511 937
------ ------- ------- ------ ------- ------- -------
Zinc
Payable metal in concentrate (t)
Antamina .............................. 33.8% 32,732 27,576 32,685 29,929 23,612 86,226 95,624
------ ------- ------- ------ ------- ------- -------
Total ................................. 32,732 27,576 32,685 29,929 23,612 86,226 95,624
------ ------- ------- ------ ------- ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /2/ ......................... 57.5% 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Pampa Norte /3/ ....................... 100% 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Olympic Dam (refined gold) ............ 100% 29,355 26,080 47,184 43,280 49,086 139,550 93,437
------ ------- ------- ------ ------- ------- -------
Total ................................. 73,587 80,048 90,941 95,557 106,192 292,690 235,311
------ ------- ------- ------ ------- ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /2/ ......................... 57.5% 1,270 1,311 1,210 1,510 1,346 4,066 4,023
Pampa Norte /3/ ....................... 100% 261 262 252 245 409 906 749
Antamina .............................. 33.8% 1,191 1,212 1,190 923 801 2,914 3,866
Olympic Dam (refined silver) .......... 100% 149 145 295 261 277 833 598
------ ------- ------- ------ ------- ------- -------
Total ................................. 2,871 2,930 2,947 2,939 2,833 8,719 9,236
------ ------- ------- ------ ------- ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam ........................... 100% 781 776 817 943 833 2,593 1,599
------ ------- ------- ------ ------- ------- -------
Total ................................. 781 776 817 943 833 2,593 1,599
------ ------- ------- ------ ------- ------- -------
Molybdenum
Payable metal in concentrate (t)
Pampa Norte /3/ ....................... 100% -- 71 34 216 407 657 --
Antamina .............................. 33.8% 190 249 262 348 229 839 549
------ ------- ------- ------ ------- ------- -------
Total ................................. 190 320 296 564 636 1,496 549
------ ------- ------- ------ ------- ------- -------
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BHP Operational Review for the 8
nine months ended 31 March 2023
Production summary
Quarter ended Year to date
------------------------------------- ---------------
Mar Jun Sep Dec Mar Mar Mar
BHP 2022 2022 2022 2022 2023 2023 2022
interest ------ ------- ------- ------ ------- ------- -------
Iron Ore
Iron Ore
Production (kt) /4/
Newman ................................ 85% 11,940 14,063 14,053 16,172 11,925 42,150 42,978
Area C Joint Venture .................. 85% 24,888 27,685 26,971 26,302 25,284 78,557 66,746
Yandi Joint Venture ................... 85% 8,418 6,409 5,497 5,613 4,941 16,051 32,513
Jimblebar /5/ ......................... 85% 13,444 15,005 17,404 17,720 16,575 51,699 43,777
Samarco ............................... 50% 994 1,000 1,148 1,095 1,048 3,291 3,071
------ ------- ------- ------ ------- ------- -------
Total ................................. 59,684 64,162 65,073 66,902 59,773 191,748 189,085
------ ------- ------- ------ ------- ------- -------
Coal
Metallurgical coal
Production (kt) /6/
BHP Mitsubishi Alliance (BMA) ......... 50% 7,944 8,183 6,662 6,952 6,929 20,543 20,959
------ ------- ------- ------ ------- ------- -------
Total ................................. 7,944 8,183 6,662 6,952 6,929 20,543 20,959
------ ------- ------- ------ ------- ------- -------
Energy coal
Production (kt)
NSW Energy Coal ....................... 100% 2,577 3,919 2,623 2,851 3,934 9,408 9,782
------ ------- ------- ------ ------- ------- -------
Total ................................. 2,577 3,919 2,623 2,851 3,934 9,408 9,782
------ ------- ------- ------ ------- ------- -------
Other
Nickel
Saleable production (kt)
Nickel West ........................... 100% 18.7 18.8 20.7 17.7 19.6 58.0 58.0
------ ------- ------- ------ ------- ------- -------
Total ................................. 18.7 18.8 20.7 17.7 19.6 58.0 58.0
------ ------- ------- ------ ------- ------- -------
Cobalt
Saleable production (t)
Nickel West ........................... 100% 125 110 238 93 175 506 522
------ ------- ------- ------ ------- ------- -------
Total ................................. 125 110 238 93 175 506 522
------ ------- ------- ------ ------- ------- -------
1 Metal production is reported on the basis of payable metal.
2 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
3 Includes Cerro Colorado and Spence.
4 Iron ore production is reported on a wet tonnes basis.
5 Shown on a 100% basis. BHP interest in saleable production is 85%.
6 Metallurgical coal production is reported on the basis of saleable product.
Production figures may include some thermal coal.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
--------------------------------------------------------------------------------
BHP Operational Review for the 9
nine months ended 31 March 2023
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /1/
Material mined ................................ (kt) 107,676 115,409 110,248 101,987 106,170 318,405 338,834
Concentrator throughput ....................... (kt) 30,235 34,318 32,894 33,911 33,309 100,114 99,550
Average copper grade - concentrator ........... (%) 0.80% 0.88% 0.83% 0.76% 0.78% 0.79% 0.74%
Production ex mill ............................ (kt) 191.5 239.5 214.6 212.8 210.0 637.4 596.3
Production
Payable copper ................................ (kt) 178.2 233.5 203.1 208.3 200.8 612.2 569.1
Copper cathode (EW) ........................... (kt) 48.2 55.8 49.6 49.7 50.8 150.1 145.6
- Oxide leach ................................ (kt) 12.2 17.5 15.2 17.6 14.7 47.5 40.1
- Sulphide leach ............................. (kt) 36.0 38.3 34.4 32.1 36.1 102.6 105.5
------- ------- ------- ------- ------- ------- -------
Total copper .................................. (kt) 226.4 289.3 252.7 258.0 251.6 762.3 714.7
------- ------- ------- ------- ------- ------- -------
Payable gold concentrate ...................... (troy oz) 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Payable silver concentrate .................... (troy koz) 1,270 1,311 1,210 1,510 1,346 4,066 4,023
Sales
Payable copper ................................ (kt) 177.0 230.4 196.7 216.0 197.3 610.0 567.7
Copper cathode (EW) ........................... (kt) 47.2 58.9 45.9 53.5 43.8 143.2 143.6
Payable gold concentrate ...................... (troy oz) 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Payable silver concentrate .................... (troy koz) 1,270 1,311 1,210 1,510 1,346 4,066 4,023
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined ................................ (kt) 3,516 3,604 3,179 583 172 3,934 13,676
Ore stacked ................................... (kt) 3,181 4,259 4,373 4,119 3,567 12,059 10,776
Average copper grade - stacked ................ (%) 0.53% 0.55% 0.54% 0.56% 0.57% 0.56% 0.59%
Production
Copper cathode (EW) ........................... (kt) 11.6 14.7 12.8 12.2 12.0 37.0 40.3
Sales
Copper cathode (EW) ........................... (kt) 10.5 16.2 13.3 12.2 10.9 36.4 38.6
Spence
Material mined ................................ (kt) 24,040 26,749 26,956 26,980 24,858 78,794 69,219
Ore stacked ................................... (kt) 5,055 5,099 5,577 5,155 4,947 15,679 15,384
Average copper grade - stacked ................ (%) 0.67% 0.66% 0.70% 0.66% 0.64% 0.67% 0.66%
Concentrator throughput ....................... (kt) 6,512 6,311 6,433 7,602 7,290 21,325 18,532
Average copper grade - concentrator ........... (%) 0.65% 0.66% 0.63% 0.60% 0.61% 0.61% 0.63%
Production
Payable copper ................................ (kt) 32.4 28.2 28.6 32.5 32.0 93.1 83.0
Copper cathode (EW) ........................... (kt) 24.2 34.3 29.2 32.0 29.0 90.2 80.7
------- ------- ------- ------- ------- ------- -------
Total copper .................................. (kt) 56.6 62.5 57.8 64.5 61.0 183.3 163.7
------- ------- ------- ------- ------- ------- -------
Payable gold concentrate ...................... (troy oz) 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Payable silver concentrate .................... (troy koz) 261 262 252 245 409 906 749
Payable molybdenum ............................ (t) -- 71 34 216 407 657 --
--------------------------------------------------------------------------------
BHP Operational Review for the 10
nine months ended 31 March 2023
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Sales
Payable copper ................................ (kt) 28.1 28.1 26.0 22.0 39.6 87.6 81.4
Copper cathode (EW) ........................... (kt) 20.2 35.4 29.1 33.4 25.1 87.6 79.1
Payable gold concentrate ...................... (troy oz) 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Payable silver concentrate .................... (troy koz) 261 262 252 245 409 906 749
Payable molybdenum ............................ (t) -- 25 25 216 492 733 --
--------------------------------------------------------------------------------
BHP Operational Review for the 11
nine months ended 31 March 2023
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) ......................... (kt) 58,118 64,026 63,865 68,750 57,939 190,554 182,878
Concentrator throughput (100%) ................ (kt) 13,135 13,131 13,858 14,272 12,349 40,479 39,365
Average head grades
- Copper ..................................... (%) 0.94% 1.02% 0.93% 0.86% 0.88% 0.89% 0.97%
- Zinc ....................................... (%) 1.13% 1.05% 1.09% 0.99% 1.06% 1.05% 1.13%
Production
Payable copper ................................ (kt) 36.1 39.6 37.1 35.2 29.6 101.9 110.3
Payable zinc .................................. (t) 32,732 27,576 32,685 29,929 23,612 86,226 95,624
Payable silver ................................ (troy koz) 1,191 1,212 1,190 923 801 2,914 3,866
Payable lead .................................. (t) 282 181 228 114 169 511 937
Payable molybdenum ............................ (t) 190 249 262 348 229 839 549
Sales
Payable copper ................................ (kt) 32.9 40.7 37.6 34.7 32.4 104.7 107.5
Payable zinc .................................. (t) 29,920 30,847 33,820 29,127 25,851 88,798 95,068
Payable silver ................................ (troy koz) 1,078 1,230 1,015 850 768 2,633 3,586
Payable lead .................................. (t) 269 363 130 91 181 402 845
Payable molybdenum ............................ (t) 199 205 250 298 297 845 455
Olympic Dam, Australia
Material mined /1/ ............................ (kt) 2,424 2,477 2,412 2,264 2,317 6,993 6,357
Ore milled .................................... (kt) 2,122 2,436 2,570 2,687 2,433 7,690 5,251
Average copper grade .......................... (%) 2.21% 2.15% 2.13% 2.08% 1.95% 2.06% 2.13%
Average uranium grade ......................... (kg/t) 0.62 0.56 0.58 0.58 0.59 0.58 0.58
Production
Copper cathode (ER and EW) .................... (kt) 39.0 55.7 49.7 54.4 51.7 155.8 82.7
Payable uranium ............................... (t) 781 776 817 943 833 2,593 1,599
Refined gold .................................. (troy oz) 29,355 26,080 47,184 43,280 49,086 139,550 93,437
Refined silver ................................ (troy koz) 149 145 295 261 277 833 598
Sales
Copper cathode (ER and EW) .................... (kt) 36.3 55.8 45.9 56.8 50.5 153.2 83.3
Payable uranium ............................... (t) 236 1,031 272 1,127 683 2,082 1,313
Refined gold .................................. (troy oz) 30,935 24,622 49,542 41,900 47,300 138,742 94,357
Refined silver ................................ (troy koz) 182 87 320 233 307 860 598
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
--------------------------------------------------------------------------------
BHP Operational Review for the 12
nine months ended 31 March 2023
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia Iron Ore, Australia
Production
Newman ........................................ (kt) 11,940 14,063 14,053 16,172 11,925 42,150 42,978
Area C Joint Venture .......................... (kt) 24,888 27,685 26,971 26,302 25,284 78,557 66,746
Yandi Joint Venture ........................... (kt) 8,418 6,409 5,497 5,613 4,941 16,051 32,513
Jimblebar /1/ ................................. (kt) 13,444 15,005 17,404 17,720 16,575 51,699 43,777
------- ------- ------- ------- ------- ------- -------
Total production .............................. (kt) 58,690 63,162 63,925 65,807 58,725 188,457 186,014
------- ------- ------- ------- ------- ------- -------
Total production (100%) ....................... (kt) 66,674 71,660 72,135 74,292 66,163 212,590 211,113
------- ------- ------- ------- ------- ------- -------
Sales
Lump .......................................... (kt) 16,966 20,006 19,561 20,375 18,021 57,957 52,339
Fines ......................................... (kt) 42,187 44,308 42,696 44,121 41,183 128,000 134,035
------- ------- ------- ------- ------- ------- -------
Total ......................................... (kt) 59,153 64,314 62,257 64,496 59,204 185,957 186,374
------- ------- ------- ------- ------- ------- -------
Total sales (100%) ............................ (kt) 67,110 72,796 70,276 72,688 66,580 209,544 211,147
------- ------- ------- ------- ------- ------- -------
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
Production .................................... (kt) 994 1,000 1,148 1,095 1,048 3,291 3,071
Sales ......................................... (kt) 943 991 1,146 1,097 1,111 3,354 3,004
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BHP Operational Review for the 13
nine months ended 31 March 2023
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
BHP Mitsubishi Alliance (BMA), Australia
Production /1/
Blackwater .................................... (kt) 1,478 1,751 1,283 1,160 1,107 3,550 4,083
Goonyella ..................................... (kt) 2,336 2,429 1,780 1,997 2,185 5,962 5,931
Peak Downs .................................... (kt) 1,395 1,366 1,325 1,480 1,251 4,056 3,578
Saraji ........................................ (kt) 1,366 1,168 1,020 1,243 1,007 3,270 3,446
Daunia ........................................ (kt) 338 472 324 441 607 1,372 1,019
Caval Ridge ................................... (kt) 1,031 997 930 631 772 2,333 2,902
------- ------- ------- ------- ------- ------- -------
Total production .............................. (kt) 7,944 8,183 6,662 6,952 6,929 20,543 20,959
------- ------- ------- ------- ------- ------- -------
Total production (100%) ....................... (kt) 15,888 16,366 13,324 13,904 13,858 41,086 41,918
------- ------- ------- ------- ------- ------- -------
Sales
Coking coal ................................... (kt) 6,334 6,734 5,615 5,872 5,372 16,859 16,624
Weak coking coal .............................. (kt) 805 1,118 600 727 710 2,037 2,293
Thermal coal .................................. (kt) 484 765 267 428 104 799 1,515
------- ------- ------- ------- ------- ------- -------
Total sales ................................... (kt) 7,623 8,617 6,482 7,027 6,186 19,695 20,432
------- ------- ------- ------- ------- ------- -------
Total sales (100%) ............................ (kt) 15,246 17,234 12,964 14,054 12,372 39,390 40,864
------- ------- ------- ------- ------- ------- -------
1 Production figures include some thermal coal.
NSW Energy Coal, Australia
Production .................................... (kt) 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Sales - export ................................ (kt) 2,703 3,923 2,441 2,862 3,667 8,970 10,201
--------------------------------------------------------------------------------
BHP Operational Review for the 14
nine months ended 31 March 2023
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate ............................ (kt) 47.1 48.0 42.6 39.6 38.8 121.0 147.8
Average nickel grade .......................... (%) 14.4 16.1 17.0 15.5 16.5 16.3 14.1
Leinster
Nickel concentrate ............................ (kt) 78.0 76.0 66.8 47.9 68.4 183.1 229.2
Average nickel grade .......................... (%) 8.9 10.3 9.9 9.4 8.6 9.3 9.0
Saleable production
Refined nickel /1/ ............................ (kt) 13.3 11.7 17.5 10.8 13.2 41.5 45.9
Nickel sulphate /2/ ........................... (kt) 0.7 0.5 1.2 0.4 0.9 2.5 1.1
Intermediates and nickel by-products /3/....... (kt) 4.7 6.6 2.0 6.5 5.5 14.0 11.0
------- ------- ------- ------- ------- ------- -------
Total nickel .................................. (kt) 18.7 18.8 20.7 17.7 19.6 58.0 58.0
------- ------- ------- ------- ------- ------- -------
Cobalt by-products ............................ (t) 125 110 238 93 175 506 522
Sales
Refined nickel /1/ ............................ (kt) 15.3 11.7 18.1 10.2 13.0 41.3 46.0
Nickel sulphate /2/ ........................... (kt) 0.7 0.5 0.8 0.5 0.9 2.2 0.8
Intermediates and nickel by-products /3/....... (kt) 2.7 6.4 1.8 7.7 5.7 15.2 9.7
------- ------- ------- ------- ------- ------- -------
Total nickel .................................. (kt) 18.7 18.6 20.7 18.4 19.6 58.7 56.5
------- ------- ------- ------- ------- ------- -------
Cobalt by-products ............................ (t) 125 110 238 93 175 506 522
1 High quality refined nickel metal, including briquettes and powder.
2 Nickel sulphate crystals produced from nickel powder.
3 Nickel contained in matte and by-product streams.
--------------------------------------------------------------------------------
BHP Operational Review for the 15
nine months ended 31 March 2023
Appendix 1: BHP Copper Exploration Ocelot
Project summary
The Ocelot project is located 140 kilometres east of Phoenix, Arizona in the
prolific Miami-Globe copper district (Figure 1). The project area has a long
exploration history with exploratory work by BHP commencing in 2011, including
ground geophysical surveys and drilling campaigns.
BHP completed drill programs at Ocelot between January 2019 and December 2022,
which consisted of 12 broad-spaced diamond drill holes to test the lateral
extents, depth, and variability of mineralisation (Figure 2) of 18 km in
drilling. The drill program, in conjunction with regional structural mapping and
data integration has led to a follow-up drill program that is expected to be
completed by May 2023.
[Figure 1: Regional geology of the Globe-Miami District showing known porphyry
copper deposits and the Ocelot project.]
Geology and mineralisation
Ocelot has a similar regional setting to the Resolution deposit, which is
approximately 32 km to the southwest, and is located in the Globe-Miami mining
district, known to host a cluster of Laramide-age porphyry copper deposits
including Miami-Inspiration, Pinto Valley and Copper Cities.
Mineralisation occurs under approximately 700 m of post-mineral cover and
adjacent to the historic Old Dominion mine, which was primarily focused on
high-grade mineralisation of the Old Dominion vein system and ceased production
in 1931.
This drilling has intersected Laramide porphyry style alteration and
mineralisation related to the Schultze Granite intrusive complex. The main
copper sulphide species are chalcopyrite and bornite, with lesser chalcocite.
The copper sulphides occur disseminated and vein-hosted, favouring permeable and
chemically reactive host lithologies including Dripping Spring Quartzite,
Pioneer Formation, and Proterozoic diabase. Assay results of significant
intercepts are presented in Table 1 with a simplified geological cross section
in Figure 3.
Further details relating to the drilling program are included within this
appendix.
Table 1: Significant copper intercepts at Project Ocelot
From To Length/1/ Copper
Hole ID (m) (m) (m) %
------- ----- ----- -------- ------
OCLT1902D............................... 838 1,197 359 0.60
OCLT1903D............................... 714 816 102 0.92
OCLT1903D............................... 844 923 79 0.60
OCLT1903D............................... 978 1,112 134 0.44
OCLT2104D............................... 936 1,212 276 0.63
OCLT2105D............................... 786 1,083 297 0.65
OCLT2106D............................... 992 1,226 234 0.73
OCLT2107D............................... 1,200 1,390 190 0.47
OCLT2209D............................... 1,379 1,464 85 0.71
OCLT2210D............................... 921 1,196 275 0.59
OCLT2211D............................... 787 1,289 502 0.80
OCLT2212D............................... 1,165 1,377 192 0.80
1. Downhole intercept lengths, true widths not known.
Further work
BHP's Metals Exploration team is currently completing a follow-up drilling
program, to test the presence and continuity of a high-grade core of the
mineralisation and BHP will continue to evaluate the results as the program
progresses.
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BHP Operational Review for the 16
nine months ended 31 March 2023
Additional work also includes the interpretation and modeling of a recently
completed passive seismic, and borehole electromagnetic (EM) surveys. This will
be integrated into the structural interpretation and geologic modelling.
--------------------------------------------------------------------------------
BHP Operational Review for the 17
nine months ended 31 March 2023
[Figure 2: Plan of the Ocelot project area showing drill hole collar locations
and section A - A'.]
[Figure 3: Section A - A' (using a 150m projection from section line as seen in
Figure 2) looking northwest. Downhole traces showing copper grade for drill
holes OCLT2107D, OCLT2105D, OCLT2104D and OCLT1901D.]
Table 2: Drill hole collar locations and depths in World Geodetic System 1984
(WGS84 UTMZ12N)
Easting Northing RL Total Depth
Hole ID Drill Hole Type (m) (m) (m) Azimuth Dip (m)
------- --------------- ------- -------- ----- ------- ----- -----------
OD108 .......................... Historic/1/ 519301 3696597 1,070 360 -90 909.8
OD109 .......................... Historic/1/ 519064 3696453 1,085 360 -90 917.6
OD-13-1 ........................ Historic/1/ 519505 3696448 1,082 120 -88 1,044.3
OD-13-2 ........................ Historic/1/ 519204 3696998 1,073 92 -89 1,059.2
OCLT1901D ...................... DD 518857 3697648 1,072 178 -80 1,477.9
OCLT1902D ...................... DD 518286 3696293 1,131 41 -85 1,517.5
OCLT1903D ...................... DD 518779 3696813 1,104 135 -85 1,326.2
OCLT2104D ...................... DD 517943 3696902 1,133 245 -85 1,271.5
OCLT2105D ...................... DD 517972 3696564 1,104 190 -80 1,036.6
OCLT2106D ...................... DD 517908 3696050 1,122 0 -85 1,364.9
OCLT2107D ...................... DD 517242 3696368 1,031 355 -85 1,389.9
OCLT2108D ...................... DD 516531 3698255 1,100 175 -85 1,440.8
OCLT2209D ...................... DD 517996 3695796 1,144 185 -80 1,517.0
OCLT2210D ...................... DD 518184 3696067 1,134 0 -85 1,324.7
OCLT2211D ...................... DD 518779 3696796 1,104 160 -59 1,372.2
OCLT2212D ...................... DD 518001 3695800 1,144 2 -85.5 1,649.3
1. Historic drill holes include Phelps Dodge holes (OD108 and OD 109) drilled in
1965 to 1966 and BHP holes (OD-13-1 and OD-13-2) drilled in 2013.
Sampling techniques
. All samples were obtained from diamond drilling. The diamond core analysed
was predominantly HQ size, and core samples were split using a core saw with
half of the core being submitted for assaying and the other half returned to
BHPs custody.
Drilling techniques
. All drill holes were completed using diamond drilling from surface, initially
as PQ sized, followed by HQ and some holes ended in NQ.
. PWT casing was typically set within the first 100m of the drill hole.
Depending on ground condition additional HWT casing or PQ rods may be set
when the hole was reduced to HQ (between 500m and 1,100m).
. Each hole was surveyed using a north seeking gyroscopic camera or equivalent,
run within the drill rods at 200 foot (~61 m) intervals. Core was oriented
using a True North or REFLEX ACT III orientation tool.
Drill sample recovery
. Drill core recovery was measured and recorded continuously from the start of
casing to the end of the hole for each drill hole. The end of each run was
marked on a wooden block which indicates the end of the run depth, the total
length drilled, and total length recovered for that run.
--------------------------------------------------------------------------------
BHP Operational Review for the 18
nine months ended 31 March 2023
. Drill core recoveries are measured at the drill site, with an average
recovery of greater than 96%, and the majority of holes recovering greater
than 98%.
. There is no known relationship between sample loss and grade to indicate a
sample bias may have occurred.
Logging
. The following observations were recorded prior to sampling: lithologic
descriptions, including rock type and texture, alteration mineral
assemblages, sulphide abundance and distribution, structural measurements and
feature descriptions, and the abundance and descriptions of any veining.
. Handheld XRF readings were taken periodically on the whole core at site using
an Olympus Delta or Vanta XRF.
. Magnetic susceptibility readings were taken systematically on the whole core
at site using a KT-10 Terraplus magnetic susceptibility meter.
. All recovered drill core was logged to depth.
. All drill holes were logged in qualitative detail.
. All core was photographed wet and dry as whole core inside the core trays.
Sub-sampling techniques and sample preparation
. Diamond core was split using a core saw with half of the core being submitted
to ALS Laboratory for assaying and the other half returned to BHPs custody.
. Submitted sample intervals were approximately 3 m in length unless geological
variability dictated smaller intervals.
. All samples were crushed to 2 mm with 250 g being split off and pulverized
further to better than 85% passing 75 microns.
. Duplicates were collected at each preparation stages where a reduction in
sample mass occurred. The combined duplicates taken reflect approximately 3.5
to 5% total of the overall drill core.
. Sample size is considered appropriate for the style of mineralisation.
Quality of assay data and laboratory tests
. All samples were prepared using ALS laboratories in Tucson, Arizona. Sample
pulps are then shipped to ALS laboratories in Reno, Nevada or Vancouver,
Canada for analysis.
. 48 element suite was analysed using 4-acid digestion followed by ICP-MS
(ME-MS61).
. 30g or 50g fire assay was used to analyse Au.
. Samples exceeding 1 wt% Cu were rerun utilising an analytical method with
higher accuracy (Cu-OG62).
. Certified reference materials sourced from OREAS and duplicates were inserted
on a regular basis, and where dictated by geological variability within each
sample batch. Reference samples represent at least 10% of the samples
submitted for analysis.
Verification of sampling and assaying
. Significant intercepts were identified from the assay results and validated
against visual inspection of drill core and logging data.
. The drilling programs were early-stage exploration with no twinned holes
drilled.
. Geological logging of drill holes is captured digitally and combined with the
laboratory analysis in a drill hole database to ensure consistency between
the datasets. All drill hole data is managed internally via a SQL server
hosted database with strict validation rules.
. The database has a security model which requires user access approval and is
backed up regularly by standard backup procedures.
. There have been no adjustments to the assay data that is uploaded to the
database.
--------------------------------------------------------------------------------
BHP Operational Review for the 19
nine months ended 31 March 2023
Location of data points
. Drill hole collars were surveyed by handheld GPS with an accuracy of 5 m. The
data was manually entered in the acQuire database.
. All coordinates are recorded in the World Geodetic System 1984 coordinate
system (WGS84 UTM Z12N).
. Downhole surveys were completed every 200 ft (~61 m) using either a north
seeking gyroscopic camera or equivalent.
. The topography is slightly hilly, with elevations varying between 1,025 m and
1,225 m.
Data spacing and distribution
. The drill hole spacing ranged from 250 m to 1,955 m with an average spacing
of 646m as shown in Figure 2.
. At the time of this release there is insufficient data to provide an estimate
of Mineral Resources.
. No compositing has been applied to the samples.
Orientation of data in relation to geological structure
. Drill holes have been drilled with varying dips throughout the project area,
ranging between 60(degrees) and 90(degrees), with directions spanning north,
northeast, southeast, southwest, and west to avoid biased trends due to
structural features.
. Mineralisation at this stage is not well defined but is interpreted to drop
down in depth to the southwest by a series of post mineralised normal faults.
Sample security
. Core was logged and sample intervals determined by the supervising geologist.
All drill core was sent directly from BHP sites to the ALS laboratory via
contracted transport company.
. At the laboratory preparation facility in Tucson, Arizona, the core was cut
and sampled by the laboratory personnel based on BHP staff identified sample
intervals. The laboratory completed all photography, cutting, and sample
preparation. Once the samples were prepared, the laboratory staff inserted
the QA/QC samples based on BHP requirements and transported all samples to
the secondary laboratories for analysis. Chain of custody was recorded to
enable verification of the samples.
Audits or reviews
. The ALS laboratory sample preparation and analysis procedures were audited by
BHPs internal Practice Lead Geochemistry at the beginning of calendar year
2022 with no significant issues identified. Outcomes of the audit was
communicated to ALS and recommendations implemented.
. Additional protocols relating to sample security were identified and
implemented for future drill programs.
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BHP Operational Review for the 20
nine months ended 31 March 2023
Section 2 Reporting of Exploration Results
Mineral tenement and land tenure status
. BHP holds 21 active mineral lode claims issued by the Bureau of Land
Management (BLM) in 2017 and 2022 which are renewed on an annual basis and in
good standing. Mineral lode claims are public record and information on
claimant, location, and tenure is preserved for individual claims by the
Bureau of Land Management's Mineral & Land Records System.
. In addition, BHP owns or has under license, approximately 72% of the mineral
rights and 40% of surface rights via direct ownership or active access
agreements in the project area of interest.
. All drill holes have been located on privately owned surface, on which BHP
either owns or has an access agreement, and over BHP held mineral rights.
Prior to any ground disturbance, archeological and biological clearance
studies were completed by third parties to ensure no sites of cultural
importance nor protected flora and fauna would be impacted.
Exploration done by other parties
. The Ocelot project area and surrounding region has a long history of
exploration activity dating back to 1880s by multiple companies including but
not limited to Phelps Dodge, Magma Copper, Freeport McMoRan, Bronco Creek
Exploration and BHP.
. BHP has records of 26 known drill holes, of which 14 were assayed, in the
areas adjacent to the Ocelot project. In addition, there were 4 drill holes
found at the eastern edge of the current project area drilled in the early
2010s. The four "historical" drill holes were not subjected to the same
quality assurance processes and therefore uncertainties can exist, and the
results are not part of this disclosure.
Drill hole Information
. Tables 1 and 2 presented above summarise the drill hole information.
Data aggregation methods
. All significant intersections are length weighted downhole widths. True
widths are not known at this stage of the exploration program.
. Significant intercepts were defined as intersections greater than 50 m with a
minimum of 0.3% Cu and a maximum of 4 m of continuous internal dilution
(<0.15% Cu).
. Metal equivalent calculations have not been used in this report.
Relationship between mineralisation widths and intercepts lengths
. Insufficient data is available to confirm the geological model or mineralised
zones. Intercepts are reported based on downhole length, true width not
known.
Diagrams
. Figure 1 provides regional location and context for the Ocelot project
location.
. Figure 2 provided in this report shows all drill hole collar locations with
hole traces including historic drill holes in the project area.
. Figure 3 provided in this report is a northeast - southwest oblique section
through drill holes OCLT2107D, OCLT2105, OCLT2104D and OCLT1901D looking
northwest.
Balanced reporting
. All drill holes available in the project area are included in this report.
. Only significant intercepts from drill holes completed after 2018 are shown
in Table 1. Historic drill holes intercepts have not been included as they
have no supporting QAQC results and are yet to be verified.
. OCLT1901D and OCLT2108D were drilled but did not meet the significant
intercepts threshold as described in the data aggregation methods section
above.
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BHP Operational Review for the 21
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Other substantive exploration data
. Two ground direct current induced polarization with passive magnetotelluric
(DCIP-MT) geophysical survey were completed in 2016 and 2017 with an
additional ground magnetotelluric (MT) survey completed 2019. All surveys had
varying results due do passive noise in the area and local town
infrastructure.
. Downhole pulse electro magnetics (EM) surveys were run on 9 of the 12
exploration holes drilled.
. A ground passive seismic survey was completed in 2022, with results still
pending.
Competent Person statement
The information in the report to which this statement is attached that relates
to Exploration Results is based on information compiled by Francisco Crignola, a
Competent Person who is a Member of The Australasian Institute of Mining and
Metallurgy (MAusIMM). Mr Crignola is a full-time employee of BHP. Mr Crignola
has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Mr Crignola consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
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BHP Operational Review for the 22
nine months ended 31 March 2023
Date: 21-04-2023 08:10:00
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