Wrap Text
Operational Review for the Quarter Ended 30 September 2017
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE LOGO
Release Time IMMEDIATE
Date 18 October 2017
Release Number 32/17
BHP OPERATIONAL REVIEW
FOR THE QUARTER ENDED 30 SEPTEMBER 2017
. All production and unit cost guidance remains unchanged for the 2018
financial year.
. Good progress has been made on our latent capacity projects, with first
production from the Los Colorados Extension project and the Olympic Dam
Southern Mining Area achieved in the September 2017 quarter and the Caval
Ridge Southern Circuit project progressing to plan.
. All major projects under development are tracking to plan.
. In Onshore US, our operated rig count increased from five to nine during the
September 2017 quarter. Divestment of a small portion of the Hawkville
acreage was completed during the quarter, with work underway to exit our
remaining Onshore US assets for value.
. In Petroleum exploration, evaluation of the positive drilling results from
Wildling-2 is continuing, with a sidetrack also encountering oil in multiple
horizons which will assist with establishing the scale of the discovery.
Production Sep Q17 vs Sep Q16
---------- ------- ----------
Petroleum (MMboe)............. 50 (8%) Lower volumes reflect natural field decline and the impact of
Hurricane Harvey on US petroleum assets.
Copper (kt)................... 404 14% Increased volumes at Escondida supported by the start-up of the Los
Colorados Extension project and higher average copper grades and
throughput.
Iron ore/(1)/ (Mt)............ 56 (3%) Improved mine productivity and record volumes at Jimblebar offset
by the impact of planned maintenance and lower opening stockpile
levels, following the fire at the Mt Whaleback screening plant in
June 2017.
Metallurgical coal (Mt)....... 11 0% Record production at Saraji mine and increased productivity across
Queensland Coal mines offset by lower production at Broadmeadow.
Energy coal (Mt).............. 7 (2%) Strong performance at New South Wales Energy Coal offset by the
impacts of unfavourable weather at Cerrejon.
BHP Chief Executive Officer, Andrew Mackenzie, said: "Our performance in the
first quarter keeps us on track to deliver seven per cent volume growth in the
2018 financial year.
We manage the portfolio for value and returns. Our transition to lower-cost,
high-return, latent capacity projects is delivering results, with first copper
production achieved from the Los Colorados Extension project at Escondida and
Olympic Dam's Southern Mining Area during the quarter.
--------------------------------------------------------------------------------
1
Major development work has commenced on the recently approved growth projects,
Mad Dog Phase 2 and the Spence Growth Option, with both set to become
operational as their respective markets in oil and copper rebalance."
Summary
Operational performance
Production for the September 2017 quarter and guidance for the 2018 financial
year are summarised in the table below.
Sep Q17 Sep Q17
vs vs FY18
Production Sep Q17 Sep Q16 Jun Q17 guidance
---------- ------- ------- ------- --------------
Petroleum (MMboe).............. 50 (8%) (3%) 180 - 190
Onshore US (MMboe).......... 17 (16%) (12%) 61 - 67
Conventional (MMboe)........ 33 (3%) 2% 119 - 123
Copper (kt).................... 404 14% 4% 1,655 - 1,790
Escondida (kt).............. 268 23% 19% 1,130 - 1,230
Other copper/(i)/ (kt)...... 136 (1%) (16%) 525 - 560
Iron ore/(ii)/ (Mt)............ 56 (3%) (8%) 239 - 243
WAIO (100% basis) (Mt)...... 64 (4%) (8%) 275 - 280/(iii)/
Metallurgical coal (Mt)........ 11 0% 24% 44 - 46
Energy coal (Mt)............... 7 (2%) (18%) 29 - 30
(i)Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii)Excludes production from Samarco.
(iii)Subject to regulatory approvals to increase capacity above 270 Mt.
Major development projects
On 17 August 2017, the BHP Board approved an investment of US$2.5 billion for
the development of the Spence Growth Option.
At the end of the September 2017 quarter, BHP had four major projects under
development in Petroleum, Copper and Potash, with a combined budget of US$7.5
billion over the life of the projects.
Corporate update
On 20 September 2017, BHP released its Economic Contribution Report which shows
the Group's direct economic contribution globally in the 2017 financial year was
US$26.1 billion. This includes US$4.7 billion in taxes, royalties and other
payments to governments. BHP's adjusted effective tax rate in the 2017 financial
year was 34.0 per cent. When royalties are included, the rate was 44.0 per cent.
In Australia, we anticipate making final corporate income tax cash payments in
the first half of the 2018 financial year of approximately US$1.2 billion
relating to the prior year.
On 22 September 2017, BHP successfully concluded its US$2.9 billion
multi-currency bond repurchase plan. The bond repurchase plan has extended
BHP's average debt maturity profile and enhanced the Group's capital structure.
The total cost in relation to the repurchase program was approximately US$100
million, which will be reported in net finance costs in the December 2017 half
year. This does not take into account the multi-year interest expense saving
from a lower average debt balance following the bond repurchase program.
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BHP Operational Review for 2
the quarter ended 30 September 2017
Petroleum
Production
Sep Q17 Sep Q17
vs vs
Sep Q17 Sep Q16 Jun Q17
-------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe). 22 (9%) (8%)
Natural gas (bcf)..................................... 169 (7%) 1%
--- -- --
Total petroleum production (MMboe).................... 50 (8%) (3%)
--- -- --
Total petroleum production - Total petroleum production for the September 2017
quarter decreased by eight per cent to 50 MMboe. Guidance for the 2018 financial
year remains unchanged at between 180 and 190 MMboe, comprising Conventional
volumes between 119 and 123 MMboe and Onshore US volumes between 61 and 67
MMboe.
Crude oil, condensate and natural gas liquids - Crude oil, condensate and
natural gas liquids production for the September 2017 quarter declined by nine
per cent to 22 MMboe.
Conventional liquids volumes decreased by five per cent to 15 MMboe reflecting
natural field decline across the portfolio, the impact of Hurricane Harvey in
the Gulf of Mexico and planned maintenance at North West Shelf.
Onshore US liquids volumes decreased by 15 per cent to 7 MMboe as a result of
natural field decline and the impact of Hurricane Harvey, which more than offset
additional wells put online in the Black Hawk and Permian.
Natural gas - Natural gas production for the September 2017 quarter declined by
seven per cent to 169 bcf.
Conventional gas volumes for the September 2017 quarter were broadly unchanged
at 107 bcf. Onshore US gas volumes declined by 17 per cent reflecting natural
field decline and the impact of Hurricane Harvey, partially offset by additional
wells put online in the Black Hawk, Permian and Haynesville.
In the September 2017 quarter, we completed an agreement with Chevron and
ExxonMobil to withdraw from our 4.95 per cent interest in the Genesis deepwater
asset in the Gulf of Mexico, consistent with our aim to further simplify the
portfolio. Financial closing is expected by the end of November 2017, with an
effective date of 1 January 2017.
Projects
Capital Initial
expenditure production
Project and ownership (US$m) target date Capacity Progress
--------------------- ----------- ----------- ----------------------------------- ---------------------------------
North West Shelf Greater 314 CY19 To maintain LNG plant throughput On schedule and budget. The overall
Western Flank-B from the North West Shelf project is 57% complete.
(Australia) operations.
16.67% (non-operator)
Mad Dog Phase 2 2,154 CY22 New floating production facility On schedule and budget. The overall
(US Gulf of Mexico) with the capacity to produce up to project is 6% complete.
23.9% (non-operator) 140,000 gross barrels of crude oil
per day.
Petroleum capital expenditure of approximately US$2.0 billion is planned in the
2018 financial year. This includes Conventional capital expenditure of US$0.8
billion, which remains focused on high-return infill drilling opportunities in
the Gulf of Mexico, a life extension project at North West Shelf and investment
in the Mad Dog Phase 2 project. Onshore US capital expenditure is expected to be
approximately US$1.2 billion reflecting increased development activity.
Onshore US development activity
Onshore US drilling and development expenditure for the September 2017 quarter
was US$131 million. Our operated rig count increased from five to nine during
the quarter as two rigs in the Permian, and one in each of the Black Hawk and
Haynesville, were added.
--------------------------------------------------------------------------------
BHP Operational Review for 3
the quarter ended 30 September 2017
. In the Permian, we continued to drill to meet ongoing Hold by Production
obligations while also progressing sub-surface trials intended to de-risk
future development.
. In the Black Hawk, we observed better than expected performance in recent
trials which improved completion designs, enhanced staggered laterals and
demonstrated commerciality of Upper and Lower Eagle Ford co-development.
. In the Haynesville, our hedging strategy continues to allow us to reduce
price risk and secure average rates of return in excess of 20 per cent.
. In the Fayetteville, we continue to work with partners to assess the
potential of the Moorefield horizon. We anticipate participation in
additional non-operated wells in the 2018 financial year.
Liquids focused areas Gas focused areas
September 2017 quarter --------------------- --------------------------
(September 2016 quarter) Eagle Ford Permian Haynesville Fayetteville Total
------------------------ ---------- --------- ----------- ------------- -------------
Capital expenditure/(i)/.... US$ billion 0.1 (0.0) 0.1 (0.1) 0.0 (0.0) 0.0 (0.0) 0.1 (0.1)
Rig allocation.............. At period end 2 (1) 3 (1) 4 (0) 0 (0) 9 (2)
Net wells drilled and
completed/(ii)/........... Period total 5 (1) 1 (11) 0 (0) 0 (1) 6 (13)
Net productive wells........ At period end 936 (928) 127 (116) 393 (395) 1,044 (1,044) 2,500 (2,483)
(i) Includes land acquisition, site preparation, drilling, completions, well
site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory
of wells drilled but not yet completed at period end.
The divestment of a small portion of the Hawkville acreage was completed in the
September 2017 quarter. Work is underway to exit the remaining
Onshore US assets for value.
Petroleum exploration
Exploration and appraisal wells drilled during the September 2017 quarter are
summarised below.
Total well
Well Location Target BHP equity Spud date Water depth depth Status
---- -------------- ------ ---------- ----------- ------------ ---------- ---------------------
Wildling-2. US Gulf of Oil 100% 15 April 1,267 m 10,205 m Hydrocarbons encountered,
Mexico GC520 (Operator) 2017 temporarily abandoned.
Wildling-2 US Gulf of Oil 100% 11 August 1,267 m 10,177 m Hydrocarbons encountered,
ST01....... Mexico GC520 (Operator) 2017 temporarily abandoned.
The Wildling-2 well was spud on 15 April 2017 and drilling was completed on 11
August 2017. The Wildling-2 well encountered oil in multiple horizons. A
sidetrack to the Wildling-2 well commenced on 11 August 2017 to further appraise
the discovery and was completed on 26 September 2017. This also encountered oil
in multiple horizons and will assist further with establishing the scale of the
discovery.
In the US Gulf of Mexico, the Scimitar well spud on 1 October 2017 with results
expected in the March 2018 quarter. BHP holds a 65 per cent working interest and
is the operator of the Scimitar prospect, with partner Repsol (20 per cent
working interest) and Statoil (15 per cent working interest).
In Mexico, an Exploration and Appraisal plan for the Trion contractual area
license number CNH-A1-Trion/2016 (formerly referred to as blocks AE-0092 and
AE-0093) was submitted to the Comision Nacional de Hidrocarburos of Mexico by
BHP and Pemex on 29 August 2017, in line with regulatory requirements.
In Trinidad and Tobago, we continued appraisal work to assess the potential
commercialisation of the gas discovery at LeClerc. Preparations continued for
Phase 2 deepwater exploration which is expected to commence in the second half
of the 2018 financial year.
Petroleum exploration expenditure for the September 2017 quarter was US$207
million, of which US$78 million was expensed. A US$715 million exploration
program is planned for the 2018 financial year. This program includes the
Scimitar exploration well in the US Gulf of Mexico and three wells in Trinidad
and Tobago.
--------------------------------------------------------------------------------
BHP Operational Review for 4
the quarter ended 30 September 2017
Copper
Production
Sep Q17 Sep Q17
vs vs
Sep Q17 Sep Q16 Jun Q17
-------- ------- -------
Copper (kt)..................... 404 14% 4%
Zinc (t)........................ 29,201 90% 0%
Uranium oxide concentrate (t)... 880 (4%) 19%
Copper - Total copper production for the September 2017 quarter increased by 14
per cent to 404 kt. Guidance for the 2018 financial year remains unchanged at
between 1,655 and 1,790 kt.
Escondida copper production for the September 2017 quarter increased by 23 per
cent to 268 kt, supported by the start-up of the Los Colorados Extension (LCE)
project on 10 September 2017 and higher average copper grade and throughput. LCE
is expected to ramp-up to full capacity during the December 2017 quarter,
enabling utilisation of the three concentrators, and support copper production
of between 1,130 and 1,230 kt in the 2018 financial year. Escondida and Union
N(degree)2 of Supervisors and Staff signed a new Collective Agreement, valid
from 1 October 2017, which will have a duration of 36 months. The existing
agreement with Union N(degree)1 will expire on 1 August 2018.
Pampa Norte copper production for the September 2017 quarter decreased by seven
per cent to 58 kt, despite record material mined at Cerro Colorado and record
ore milled at Spence. The decrease was mainly due to unplanned maintenance at
Spence's tank house during the quarter. Pampa Norte copper production for the
2018 financial year is expected to be higher than the prior year.
Olympic Dam copper production increased by three per cent to 42 kt with first
ore achieved from the high-grade Southern Mining Area in the September 2017
quarter. Copper production of 150 kt is expected in the 2018 financial year as a
major smelter maintenance campaign is undertaken. The maintenance campaign
commenced on 21 August 2017 and will be phased through to the December 2017
quarter. On completion, improved operating performance, coupled with higher ore
grades from the Southern Mining Area, will underpin an expected increase in
production to approximately 215 kt in the 2019 financial year.
Antamina copper production for the September 2017 quarter increased by five per
cent to 36 kt due to higher head grades. Copper production of approximately 125
kt is expected in the 2018 financial year as mining continues through a
zinc-rich ore zone consistent with the mine plan. Zinc production of
approximately 100 kt is expected for the 2018 financial year.
Projects
Capital Initial
expenditure production
Project and ownership (US$m) target date Capacity Progress
--------------------- ----------- ----------- ------------------------------- -----------------------------------
Spence Growth Option. 2,460 FY21 New 95 ktpd concentrator is Project approved on 17 August 2017.
(Chile).............. expected to increase Spence's
100%................. payable copper in concentrate
production by approximately
185 ktpa in the first 10 years of
operation and extend the mining
operations by more than 50 years.
--------------------------------------------------------------------------------
BHP Operational Review for 5
the quarter ended 30 September 2017
Copper reserves
Hypogene Sulphide Ore Reserves at Spence
BHP confirms the inclusion of significant additional Hypogene Sulphide Ore
Reserves to the Spence declaration, and minor increases to the oxide and
supergene sulphide reserves previously declared as at 30 June 2017.
The declaration of Hypogene Sulphide Ore Reserves (including minor contributions
of transitional sulphide material) reflects the approval of capital expenditure
(US$2.46 billion) by BHP on 17 August 2017 for the construction of a
concentrator and associated infrastructure at Spence. The Spence pit expansion
to exploit the deeper hypogene material has resulted in a minor increase in Ore
Reserves for the oxide and supergene sulphide ore types declared as at 30 June
2017. The Spence Growth Option (SGO) project has been assessed as technically
achievable and economically viable.
The Spence Hypogene Sulphide Mineral Resources and Ore Reserves are a downward,
continuous extension of the currently exploited Supergene Oxide and Sulphide
Mineral Resources and Ore Reserves. The supergene oxide and sulphide material is
currently processed in a leaching operation whereas the hypogene sulphide
material will provide ore feed to a conventional sulphide milling and flotation
concentrator plant.
The Spence deposit is centred on porphyry bodies that have intruded sedimentary
and volcanic units. Vertically extensive hypogene chalcopyrite with or without
molybdenite mineralisation is overprinted by supergene sulphide chalcocite with
or without covellite mineralisation. The supergene sulphides are locally oxidised
to a copper oxide assemblage. The contact between the supergene and underlying
hypogene sulphide zones is transitional.
Reserves are estimated incorporating operational parameters, geotechnical
constraints, costs and commodity prices as defined by BHP. Optimal pushback
designs are developed by incorporating mine operational aspects, plant capacity,
loading equipment and ore exposure to produce a mining production plan. The
selection and design options take into account both processing route
alternatives and are based on the optimal economic sequence according to
operational restrictions. The current and future SGO project fleet size is
estimated based on the optimal production levels to maximise the net present
value given the existing infrastructure and geotechnical parameters.
Ore Reserves classification reflects the Mineral Resources classification, along
with consideration of any uncertainties in relation to modifying factors. Key
modifying factors, incorporating Spence's processing alternatives and unit
capacities are copper content, mineral hardness, comminution and processing
rates, and metallurgical recovery by plant. Approximate drill hole spacing,
which is indicative of reserve classification, is presented in the table below.
Nominal drill grid spacing for Ore Reserves classification
Transitional and Hypogene
Classification Oxide Supergene Sulphide Sulphides
------------------ -------------- ------------------ -------------------------
Proved (maximum) 50m x 50m 70m x 70m 70m x 70m
Probable (maximum) 100m x 100m 100m x 100m 100m x 100m
The main economic driver for the planned process routes of supergene (leach)
versus hypogene (concentrator) is based upon copper mineralisation species,
refined by copper cut-off grade. The cut-off grades used to differentiate waste
from mineralisation are 0.20 per cent total copper for the supergene,
transitional and hypogene sulphide material for concentrator processing and 0.30
per cent total copper for the supergene sulphide and oxide material for heap
leaching. These cut-off grades are based on break-even economic analysis and
assume open-pit extraction (15m bench height).
Copper in supergene oxide and sulphide mineralisation is currently recovered
through heap and dump leaching and a solvent extraction and electrowinning
plant. The construction of the SGO project facilities will add a new processing
route, sulphide flotation and concentration of the hypogene copper sulphides
(chalcopyrite) which are refractory to heap leaching technology. These
facilities include: a primary crusher, a semi-autogenous grinding mill, two ball
mills, a sulphide froth flotation plant and tailings storage facilities,
combined with concentrate export and sea-water desalination and process water
delivery facilities. The concentrator plant will generate molybdenum as a
separate concentrate product stream, along with gold and silver credits in the
copper concentrate.
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BHP Operational Review for 6
the quarter ended 30 September 2017
Concentrator metallurgical recoveries of between 82 and 91 per cent of total
copper have been informed on the basis of extensive laboratory and pilot
testwork. Studies indicate that arsenic content within the deposit can be
managed to minimise product contamination risk. The revised Ore Reserves
estimate for Spence as at 17 August 2017 is presented in the table below.
Spence updated Ore Reserves/(1)/ as at 17 August 2017 in 100 per cent terms -
reported in compliance with the ASX Listing Rules 2014
As at 17 August 2017 As at 30 June 2017
------------------------------------------------------------------------ ------------------------
Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Total Ore Reserves
Cut-off ---------------------- ------------------------ ------------------------ ------------------------
Ore Type TCu TCu SCu Mo Mt TCu SCu Mo TCu SCu Mo TCu SCu Mo
(2)(3)(4)(5)(6) % Mt % % ppm % % ppm Mt % % ppm Mt % % ppm
--------------- ------- ---- ----- ----- ----- ----- ----- ------ ----- ------ ----- ----- ----- ----- ----- ------ -----
Oxide.................. 0.30 37 0.64 0.43 - 1.4 0.84 0.66 - 38 0.64 0.43 - 35 0.65 0.45 -
Oxide Low Solubility... 0.30 14 0.90 0.40 - 8.6 0.63 0.26 - 23 0.80 0.34 - 25 0.77 0.33 -
Supergene Sulphide..... 0.30 114 0.58 0.07 - 26 0.59 0.10 - 140 0.58 0.07 - 112 0.79 0.11 -
ROM.................... 0.10 - - - - 9.4 0.37 - - 9.4 0.37 - - 9.4 0.37 0.14 -
Transitional Sulphide.. 0.20 19 0.70 - 110 1.9 0.52 - 50 21 0.69 - 100 - - - -
Hypogene Sulphide...... 0.20 530 0.47 - 200 725 0.47 - 130 1,260 0.46 - 160 - - - -
Mt - Million Tonnes, TCu - Total Copper, SCu - Acid Soluble Copper, Mo - Molybdenum, % - Weight Per Cent,
ppm - Parts per Million, ROM - Run of Mine
Table Footnotes:
1) These Ore Reserves were estimated by C Gonzalez (MAusIMM) and are an update
to Ore Reserves reported by F Barrera (MAusIMM) for the year ended 30 June
2017 in the 2017 BHP Annual Report which can be found at www.bhp.com. Both
Mr Gonzalez and Mr Barrera are full time employees of BHP and have
sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the 2012 Edition
of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. C Gonzalez and F Barrera consent to the
inclusion in this report of the matters based on the form and context in
which they appear.
2) This is a first time Ore Reserves estimate declaration for Spence
Transitional and Hypogene Sulphide Ore Types and revised estimate for other
Ore Types. The Ore Reserves are supported by a forward-looking copper
commodity price protocol based on supply and demand assumptions.
3) Ore Reserves are estimated as dry metric tonnes, on the basis of ore
delivered to the process plant.
4) The revised Spence Reserves Life is estimated as 40 years based on the
current stated Ore Reserves estimate divided by the current approved
nominated production rate as at 17 August 2017.
5) The Ore Reserves tabulated are held within existing, permitted mining
tenements. BHP's mineral leases are of sufficient duration (or convey a
legal right to renew for sufficient duration) to enable all reserves on the
leased properties to be mined in accordance with current production
schedules. Our Ore Reserves may include areas where some additional
approvals remain outstanding, but where, based on the technical
investigations we carry out as part of our planning process and our
knowledge and experience of the approvals process, we expect that such
approvals will be obtained as part of the normal course of business and
within the time frame required by the current life of mine schedule.
6) The SGO project is not considered material at the BHP Group level.
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BHP Operational Review for 7
the quarter ended 30 September 2017
Iron Ore
Production
Sep Q17 Sep Q17
vs vs
Sep Q17 Sep Q16 Jun Q17
-------- ------- -------
Iron ore/(i)/ (kt).............. 55,587 (3%) (8%)
(i)Represents Western Australia Iron Ore (WAIO). Excludes production from
Samarco.
Iron ore - Total iron ore production for the September 2017 quarter decreased by
three per cent to 56 Mt, or 64 Mt on a 100 per cent basis. Guidance for the 2018
financial year remains unchanged at between 239 and 243 Mt, or between 275 and
280 Mt on a 100 per cent basis, with volumes weighted to the last three quarters
of the year.
WAIO production for the September 2017 quarter was lower, as expected. Record
production at Jimblebar was more than offset by the impact of lower opening
stockpile levels, following the fire at the Mt Whaleback screening plant in June
2017, and planned maintenance in the September 2017 quarter. Mine productivity
improved in the quarter as a result of increased plant availability and
consistent feed rates. Stockpile levels have been rebuilt and are expected to be
partially drawn down in the next quarter. Port debottlenecking activities will
extend into the December 2017 quarter. BHP continues to work with the relevant
authorities in relation to the necessary approvals to increase system capacity
to 290 Mtpa (100 per cent basis).
Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.
Coal
Production
Sep Q17 Sep Q17
vs vs
Sep Q17 Sep Q16 Jun Q17
-------- ------- -------
Metallurgical coal (kt)......... 10,567 0% 24%
Energy coal (kt)................ 6,732 (2%) (18%)
Metallurgical coal - Metallurgical coal production for the September 2017
quarter was flat at 11 Mt. Guidance for the 2018 financial year remains
unchanged at between 44 and 46 Mt.
At Queensland Coal, mining operations have recovered following the impacts of
Cyclone Debbie, with record production at Saraji and increased production at
Peak Downs and Caval Ridge, underpinned by an improvement in trucking hours and
utilisation of latent wash-plant capacity. This was offset by lower production
at Broadmeadow due to difficult roof conditions.
The Caval Ridge Southern Circuit project is progressing according to plan, with
production expected to ramp-up early in the 2019 financial year.
Energy coal - Energy coal production for the September 2017 quarter decreased by
two per cent to 7 Mt. Guidance for the 2018 financial year is unchanged at
approximately 29 to 30 Mt.
New South Wales Energy Coal production increased by seven per cent as it
benefitted from improved stripping performance and additional bypass coal. This
was offset by a 15 per cent decrease in volumes at Cerrejon, which was
constrained following the impact of extreme wet weather at the end of June 2017.
--------------------------------------------------------------------------------
BHP Operational Review for 8
the quarter ended 30 September 2017
Other
Nickel production
Sep Q17 Sep Q17
vs vs
Sep Q17 Sep Q16 Jun Q17
-------- ------- -------
Nickel (kt)..................... 22.8 21% (10%)
Nickel - Nickel West production for the September 2017 quarter increased by 21
per cent to 23 kt of nickel primarily due to increased production from the
Leinster and Mt Keith operations. Nickel production for the 2018 financial year
is expected to remain broadly unchanged from the 2017 financial year.
Potash project
Investment
Project and ownership (US$m) Scope Progress
--------------------- ---------- ------------------------------------------------------ ---------------------------------------
Jansen Potash..... 2,600 Investment to finish the excavation and lining of the The project is 73% complete and within
(Canada).......... production and service shafts, and to continue the the approved budget. Shaft excavation is
100%.............. installation of essential surface infrastructure and progressing.
utilities.
Minerals exploration
Minerals exploration expenditure for the September 2017 quarter was US$43
million, of which US$32 million was expensed. Greenfield minerals exploration is
predominantly focused on advancing copper targets within Chile, Ecuador, Peru,
Canada, South Australia and the South-West United States.
--------------------------------------------------------------------------------
Variance analysis relates to the relative performance of BHP and/or its
operations during the September 2017 quarter compared with the September 2016
quarter, unless otherwise noted. Production volumes, sales volumes and capital
and exploration expenditure from subsidiaries are reported on a 100 per cent
basis; production and sales volumes from equity accounted investments and other
operations are reported on a proportionate consolidation basis. Copper
equivalent production based on 2017 financial year average realised prices.
The following footnotes apply to this Operational Review:
--------
(1) Excludes production from Samarco.
The following abbreviations may have been used throughout this report: barrels
(bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and
freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per
tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million
barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand
barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic
feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand
tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
--------------------------------------------------------------------------------
BHP Operational Review for 9
the quarter ended 30 September 2017
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BHP Operational Review for 10
the quarter ended 30 September 2017
Production summary
Quarter ended Year to date
---------------------------------- ---------------
Sep Dec Mar Jun Sep Sep Sep
BHP 2016 2016 2017 2017 2017 2017 2016
interest ------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Crude oil, condensate and NGL (Mboe)
Onshore US........................... 8,288 8,143 9,439 8,501 7,079 7,079 8,288
Conventional......................... 15,959 15,768 15,369 15,612 15,090 15,090 15,959
------ ------ ------ ------ ------ ------- -------
Total................................ 24,247 23,911 24,808 24,113 22,169 22,169 24,247
------ ------ ------ ------ ------ ------- -------
Natural gas (bcf)
Onshore US........................... 73.9 67.8 66.1 67.2 61.4 61.4 73.9
Conventional......................... 107.8 97.1 88.4 99.5 107.3 107.3 107.8
------ ------ ------ ------ ------ ------- -------
Total................................ 181.7 164.9 154.5 166.7 168.7 168.7 181.7
------ ------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------ ------- -------
Total petroleum production (MMboe)...... 54.5 51.4 50.6 51.9 50.3 50.3 54.5
------ ------ ------ ------ ------ ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/...................... 57.5% 147.0 162.6 67.6 162.4 196.3 196.3 147.0
Antamina.............................. 33.8% 34.1 32.0 29.2 38.5 35.9 35.9 34.1
------ ------ ------ ------ ------ ------- -------
Total................................ 181.1 194.6 96.8 200.9 232.2 232.2 181.1
------ ------ ------ ------ ------ ------- -------
Cathode (kt)
Escondida /(3)/...................... 57.5% 70.5 71.5 27.2 62.8 71.9 71.9 70.5
Pampa Norte /(4)/.................... 100% 62.1 53.8 66.1 72.3 58.0 58.0 62.1
Olympic Dam.......................... 100% 40.9 37.2 36.8 51.4 42.0 42.0 40.9
------ ------ ------ ------ ------ ------- -------
Total................................ 173.5 162.5 130.1 186.5 171.9 171.9 173.5
------ ------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------ ------- -------
Total copper (kt)....................... 354.6 357.1 226.9 387.4 404.1 404.1 354.6
------ ------ ------ ------ ------ ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................. 33.8% 1,146 1,220 1,308 1,799 1,415 1,415 1,146
------ ------ ------ ------ ------ ------- -------
Total................................ 1,146 1,220 1,308 1,799 1,415 1,415 1,146
------ ------ ------ ------ ------ ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................. 33.8% 15,367 22,406 20,653 29,076 29,201 29,201 15,367
------ ------ ------ ------ ------ ------- -------
Total................................ 15,367 22,406 20,653 29,076 29,201 29,201 15,367
------ ------ ------ ------ ------ ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/...................... 57.5% 27,561 37,784 11,572 33,941 50,525 50,525 27,561
Olympic Dam (refined gold)........... 100% 24,366 29,651 21,941 28,188 13,101 13,101 24,366
------ ------ ------ ------ ------ ------- -------
Total................................ 51,927 67,435 33,513 62,129 63,626 63,626 51,927
------ ------ ------ ------ ------ ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/...................... 57.5% 1,229 1,323 540 1,234 1,737 1,737 1,229
Antamina............................. 33.8% 1,345 1,446 1,301 1,691 1,596 1,596 1,345
Olympic Dam (refined silver)......... 100% 163 188 174 243 131 131 163
------ ------ ------ ------ ------ ------- -------
Total................................ 2,737 2,957 2,015 3,168 3,464 3,464 2,737
------ ------ ------ ------ ------ ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam.......................... 100% 916 1,060 948 737 880 880 916
------ ------ ------ ------ ------ ------- -------
Total................................ 916 1,060 948 737 880 880 916
------ ------ ------ ------ ------ ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................. 33.8% 561 225 30 328 402 402 561
------ ------ ------ ------ ------ ------- -------
Total................................ 561 225 30 328 402 402 561
------ ------ ------ ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 11
the quarter ended 30 September 2017
Production summary
Quarter ended Year to date
---------------------------------- ---------------
Sep Dec Mar Jun Sep Sep Sep
BHP 2016 2016 2017 2017 2017 2017 2016
interest ------ ------ ------ ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
Newman............................... 85% 18,008 17,751 16,283 16,241 13,842 13,842 18,008
Area C Joint Venture................. 85% 12,384 12,179 11,165 13,016 13,099 13,099 12,384
Yandi Joint Venture.................. 85% 15,729 17,555 14,656 17,415 14,559 14,559 15,729
Jimblebar /(6)/...................... 85% 6,057 5,178 4,824 5,891 6,283 6,283 6,057
Wheelarra............................ 85% 5,409 7,386 6,647 7,578 7,804 7,804 5,409
Samarco.............................. 50% -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------- -------
Total................................ 57,587 60,049 53,575 60,141 55,587 55,587 57,587
------ ------ ------ ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt) /(7)/
BMA.................................. 50% 8,384 8,684 7,996 6,394 8,296 8,296 8,384
BHP Mitsui Coal /(8)/................ 80% 2,145 1,929 2,138 2,100 2,271 2,271 2,145
Haju /(9)/........................... 75% 102 27 -- -- -- -- 102
------ ------ ------ ------ ------ ------- -------
Total................................ 10,631 10,640 10,134 8,494 10,567 10,567 10,631
------ ------ ------ ------ ------ ------- -------
Energy coal
Production (kt)
USA.................................. 100% 451 -- -- -- -- -- 451
Australia............................ 100% 3,952 3,851 4,662 5,711 4,235 4,235 3,952
Colombia............................. 33.3% 2,928 2,800 2,756 2,475 2,497 2,497 2,928
------ ------ ------ ------ ------ ------- -------
Total................................ 7,331 6,651 7,418 8,186 6,732 6,732 7,331
------ ------ ------ ------ ------ ------- -------
Other
Nickel
Saleable production (kt)
Nickel West.......................... 100% 18.8 22.1 19.0 25.2 22.8 22.8 18.8
------ ------ ------ ------ ------ ------- -------
Total................................ 18.8 22.1 19.0 25.2 22.8 22.8 18.8
------ ------ ------ ------ ------ ------- -------
(1)LPG and ethane are reported as natural gas liquids (NGL). Product-specific
conversions are made and NGL is reported in barrels of oil equivalent (boe).
Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2)Metal production is reported on the basis of payable metal.
(3)Shown on a 100% basis. BHP interest in saleable production is 57.5%.
(4)Includes Cerro Colorado and Spence.
(5)Iron ore production is reported on a wet tonnes basis.
(6)Shown on a 100% basis. BHP interest in saleable production is 85%.
(7)Metallurgical coal production is reported on the basis of saleable product.
Production figures include some thermal coal.
(8)Shown on a 100% basis. BHP interest in saleable production is 80%.
(9)Shown on a 100% basis. BHP interest in saleable production is 75%.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
--------------------------------------------------------------------------------
BHP Operational Review for 12
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
---------------------------------- ---------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate.................. (Mboe) 1,922 1,770 1,355 1,552 1,815 1,815 1,922
NGL....................................... (Mboe) 2,102 1,460 1,236 1,661 1,950 1,950 2,102
Natural gas............................... (bcf) 41.9 31.3 28.7 37.4 42.6 42.6 41.9
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 11.0 8.4 7.4 9.4 10.9 10.9 11.0
------ ------ ------ ------ ------ ------- -------
North West Shelf
Crude oil and condensate.................. (Mboe) 1,486 1,468 1,239 1,314 1,474 1,474 1,486
NGL....................................... (Mboe) 292 263 200 209 227 227 292
Natural gas............................... (bcf) 38.7 36.9 32.2 32.5 36.2 36.2 38.7
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 8.2 7.9 6.8 6.9 7.7 7.7 8.2
------ ------ ------ ------ ------ ------- -------
Pyrenees
Crude oil and condensate.................. (Mboe) 1,676 1,726 1,509 1,606 1,510 1,510 1,676
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.7 1.7 1.5 1.6 1.5 1.5 1.7
------ ------ ------ ------ ------ ------- -------
Other Australia /(2)/
Crude oil and condensate.................. (Mboe) 10 8 8 9 9 9 10
Natural gas............................... (bcf) 17.5 17.1 15.2 16.3 16.1 16.1 17.5
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.9 2.9 2.5 2.7 2.7 2.7 2.9
------ ------ ------ ------ ------ ------- -------
Atlantis /(3)/
Crude oil and condensate.................. (Mboe) 3,054 3,263 3,881 3,637 3,022 3,022 3,054
NGL....................................... (Mboe) 208 207 295 213 218 218 208
Natural gas............................... (bcf) 1.5 1.6 2.1 1.9 1.6 1.6 1.5
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 3.5 3.7 4.5 4.2 3.5 3.5 3.5
------ ------ ------ ------ ------ ------- -------
Mad Dog /(3)/
Crude oil and condensate.................. (Mboe) 950 1,170 1,185 1,167 1,020 1,020 950
NGL....................................... (Mboe) 36 52 59 68 44 44 36
Natural gas............................... (bcf) 0.1 0.2 0.2 0.2 0.1 0.1 0.1
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.0 1.3 1.3 1.3 1.1 1.1 1.0
------ ------ ------ ------ ------ ------- -------
Shenzi /(3)/
Crude oil and condensate.................. (Mboe) 2,632 2,692 2,675 2,588 2,291 2,291 2,632
NGL....................................... (Mboe) 94 131 161 179 141 141 94
Natural gas............................... (bcf) 0.5 0.5 0.5 0.6 0.4 0.4 0.5
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.8 2.9 2.9 2.9 2.5 2.5 2.8
------ ------ ------ ------ ------ ------- -------
Eagle Ford /(4)/
Crude oil and condensate.................. (Mboe) 3,871 4,008 5,451 4,278 3,457 3,457 3,871
NGL....................................... (Mboe) 2,268 2,159 2,354 2,240 1,856 1,856 2,268
Natural gas............................... (bcf) 16.5 15.2 17.0 15.1 13.8 13.8 16.5
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 8.9 8.7 10.6 9.0 7.6 7.6 8.9
------ ------ ------ ------ ------ ------- -------
Permian /(4)/
Crude oil and condensate.................. (Mboe) 1,415 1,378 1,202 1,336 1,179 1,179 1,415
NGL....................................... (Mboe) 734 580 428 646 587 587 734
Natural gas............................... (bcf) 4.4 4.4 4.0 6.2 4.5 4.5 4.4
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.9 2.7 2.3 3.0 2.5 2.5 2.9
------ ------ ------ ------ ------ ------- -------
Haynesville /(4)/
Crude oil and condensate.................. (Mboe) -- 3 1 1 -- -- --
NGL....................................... (Mboe) -- 15 3 -- -- -- --
Natural gas............................... (bcf) 28.2 24.0 22.0 21.4 21.5 21.5 28.2
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 4.7 4.0 3.7 3.6 3.6 3.6 4.7
------ ------ ------ ------ ------ ------- -------
Fayetteville /(4)/
Natural gas............................... (bcf) 24.8 24.2 23.1 24.5 21.6 21.6 24.8
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 4.1 4.0 3.9 4.1 3.6 3.6 4.1
------ ------ ------ ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 13
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
---------------------------------- ---------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/ (continued)
Trinidad/Tobago
Crude oil and condensate.................. (Mboe) 140 156 127 139 118 118 140
Natural gas............................... (bcf) 6.4 8.4 8.4 9.4 9.7 9.7 6.4
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.2 1.6 1.5 1.7 1.7 1.7 1.2
------ ------ ------ ------ ------ ------- -------
Other Americas /(3) (5)/
Crude oil and condensate.................. (Mboe) 275 269 257 238 229 229 275
NGL....................................... (Mboe) 1 5 6 10 5 5 1
Natural gas............................... (bcf) 0.1 0.1 0.1 0.1 0.1 0.1 0.1
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.3 0.3 0.3 0.3 0.3 0.3 0.3
------ ------ ------ ------ ------ ------- -------
UK
Crude oil and condensate.................. (Mboe) 69 63 72 64 40 40 69
NGL....................................... (Mboe) 22 49 32 16 39 39 22
Natural gas............................... (bcf) 1.1 1.0 1.0 1.1 0.5 0.5 1.1
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.3 0.3 0.3 0.3 0.2 0.2 0.3
------ ------ ------ ------ ------ ------- -------
Algeria
Crude oil and condensate.................. (Mboe) 990 1,016 1,072 942 938 938 990
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.0 1.0 1.1 0.9 0.9 0.9 1.0
------ ------ ------ ------ ------ ------- -------
BHP Petroleum
Crude oil and condensate
Onshore US................................ (Mboe) 5,286 5,389 6,654 5,615 4,636 4,636 5,286
Conventional.............................. (Mboe) 13,204 13,601 13,380 13,256 12,466 12,466 13,204
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 18,490 18,990 20,034 18,871 17,102 17,102 18,490
------ ------ ------ ------ ------ ------- -------
NGL
Onshore US................................ (Mboe) 3,002 2,754 2,785 2,886 2,443 2,443 3,002
Conventional.............................. (Mboe) 2,755 2,167 1,989 2,356 2,624 2,624 2,755
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 5,757 4,921 4,774 5,242 5,067 5,067 5,757
------ ------ ------ ------ ------ ------- -------
Natural gas
Onshore US................................ (bcf) 73.9 67.8 66.1 67.2 61.4 61.4 73.9
Conventional.............................. (bcf) 107.8 97.1 88.4 99.5 107.3 107.3 107.8
------ ------ ------ ------ ------ ------- -------
Total..................................... (bcf) 181.7 164.9 154.5 166.7 168.7 168.7 181.7
------ ------ ------ ------ ------ ------- -------
Total petroleum products
Onshore US................................ (Mboe) 20,605 19,443 20,456 19,701 17,312 17,312 20,605
Conventional.............................. (Mboe) 33,926 31,951 30,102 32,195 32,973 32,973 33,926
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 54,530 51,394 50,558 51,896 50,286 50,286 54,530
------ ------ ------ ------ ------ ------- -------
(1)Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
Negative production figures represent finalisation adjustments.
(2)Other Australia includes Minerva and Macedon.
(3)Gulf of Mexico volumes are net of royalties.
(4)Onshore US volumes are net of mineral holder royalties.
(5)Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
--------------------------------------------------------------------------------
BHP Operational Review for 14
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined........................... (kt) 106,504 90,863 26,045 93,389 104,867 104,867 106,504
Sulphide ore milled...................... (kt) 20,787 19,866 8,054 18,777 24,080 24,080 20,787
Average copper grade..................... (%) 0.87% 1.02% 1.01% 1.07% 1.06% 1.06% 0.87%
Production ex mill....................... (kt) 153.2 168.6 68.7 167.0 204.2 204.2 153.2
Production...............................
Payable copper........................... (kt) 147.0 162.6 67.6 162.4 196.3 196.3 147.0
Copper cathode (EW)...................... (kt) 70.5 71.5 27.2 62.8 71.9 71.9 70.5
- Oxide leach............................ (kt) 26.8 24.4 8.9 20.3 22.4 22.4 26.8
- Sulphide leach......................... (kt) 43.7 47.1 18.3 42.5 49.5 49.5 43.7
-------- -------- -------- -------- -------- -------- --------
Total copper............................. (kt) 217.5 234.1 94.8 225.2 268.2 268.2 217.5
-------- -------- -------- -------- -------- -------- --------
Payable gold concentrate................. (troy oz) 27,561 37,784 11,572 33,941 50,525 50,525 27,561
Payable silver concentrate............... (troy koz) 1,229 1,323 540 1,234 1,737 1,737 1,229
Sales....................................
Payable copper........................... (kt) 134.9 172.7 63.7 163.3 195.1 195.1 134.9
Copper cathode (EW)...................... (kt) 65.6 71.8 39.4 56.0 61.6 61.6 65.6
Payable gold concentrate................. (troy oz) 27,561 37,784 11,572 33,941 50,525 50,525 27,561
Payable silver concentrate............... (troy koz) 1,229 1,323 540 1,234 1,737 1,737 1,229
(1)Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado...........................
Material mined........................... (kt) 13,011 14,286 15,178 15,760 21,381 21,381 13,011
Ore milled............................... (kt) 3,241 3,342 4,179 4,411 3,951 3,951 3,241
Average copper grade..................... (%) 0.68% 0.65% 0.57% 0.53% 0.62% 0.62% 0.68%
Production...............................
Copper cathode (EW)...................... (kt) 17.1 12.1 16.7 18.8 13.3 13.3 17.1
Sales....................................
Copper cathode (EW)...................... (kt) 16.4 13.7 15.6 19.8 12.3 12.3 16.4
Spence...................................
Material mined........................... (kt) 23,638 22,635 22,939 24,230 22,314 22,314 23,638
Ore milled............................... (kt) 4,713 5,187 5,225 4,968 5,375 5,375 4,713
Average copper grade..................... (%) 1.17% 1.19% 1.09% 1.13% 1.21% 1.21% 1.17%
Production...............................
Copper cathode (EW)...................... (kt) 45.0 41.7 49.4 53.5 44.7 44.7 45.0
Sales....................................
Copper cathode (EW)...................... (kt) 41.2 41.5 49.0 55.7 43.0 43.0 41.2
--------------------------------------------------------------------------------
BHP Operational Review for 15
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%).................... (kt) 65,111 61,355 55,771 62,254 59,216 59,216 65,111
Sulphide ore milled (100%)............... (kt) 13,522 13,399 11,955 13,229 12,822 12,822 13,522
Average head grades......................
- Copper................................. (%) 0.84% 0.84% 0.88% 1.00% 0.94% 0.94% 0.84%
- Zinc................................... (%) 0.60% 0.83% 0.84% 0.95% 0.99% 0.99% 0.60%
Production...............................
Payable copper........................... (kt) 34.1 32.0 29.2 38.5 35.9 35.9 34.1
Payable zinc............................. (t) 15,367 22,406 20,653 29,076 29,201 29,201 15,367
Payable silver........................... (troy koz) 1,345 1,446 1,301 1,691 1,596 1,596 1,345
Payable lead............................. (t) 1,146 1,220 1,308 1,799 1,415 1,415 1,146
Payable molybdenum....................... (t) 561 225 30 328 402 402 561
Sales....................................
Payable copper........................... (kt) 32.8 33.0 30.2 36.9 31.9 31.9 32.8
Payable zinc............................. (t) 16,043 22,334 23,669 27,936 25,224 25,224 16,043
Payable silver........................... (troy koz) 1,277 1,388 1,304 1,513 1,475 1,475 1,277
Payable lead............................. (t) 767 1,100 1,475 1,493 1,624 1,624 767
Payable molybdenum....................... (t) 648 476 -- -- 168 168 648
Olympic Dam, Australia
Material mined /(1)/..................... (kt) 2,204 1,887 1,943 1,974 1,851 1,851 2,204
Ore milled............................... (kt) 2,279 2,116 2,112 2,097 2,302 2,302 2,279
Average copper grade..................... (%) 1.97% 2.00% 2.07% 2.30% 2.10% 2.10% 1.97%
Average uranium grade.................... (kg/t) 0.60 0.68 0.61 0.58 0.55 0.55 0.60
Production...............................
Copper cathode (ER and EW)............... (kt) 40.9 37.2 36.8 51.4 42.0 42.0 40.9
Uranium oxide concentrate................ (t) 916 1,060 948 737 880 880 916
Refined gold............................. (troy oz) 24,366 29,651 21,941 28,188 13,101 13,101 24,366
Refined silver........................... (troy koz) 163 188 174 243 131 131 163
Sales....................................
Copper cathode (ER and EW)............... (kt) 37.5 41.2 33.5 51.5 31.6 31.6 37.5
Uranium oxide concentrate................ (t) 1,085 883 839 1,298 680 680 1,085
Refined gold............................. (troy oz) 21,901 28,234 22,333 24,726 22,435 22,435 21,901
Refined silver........................... (troy koz) 184 203 108 251 219 219 184
(1)Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Operational Review for 16
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production...............................
Newman................................... (kt) 18,008 17,751 16,283 16,241 13,842 13,842 18,008
Area C Joint Venture..................... (kt) 12,384 12,179 11,165 13,016 13,099 13,099 12,384
Yandi Joint Venture...................... (kt) 15,729 17,555 14,656 17,415 14,559 14,559 15,729
Jimblebar /(1)/.......................... (kt) 6,057 5,178 4,824 5,891 6,283 6,283 6,057
Wheelarra................................ (kt) 5,409 7,386 6,647 7,578 7,804 7,804 5,409
-------- -------- -------- -------- -------- -------- --------
Total production......................... (kt) 57,587 60,049 53,575 60,141 55,587 55,587 57,587
-------- -------- -------- -------- -------- -------- --------
Total production (100%).................. (kt) 66,681 69,730 62,177 69,714 64,287 64,287 66,681
-------- -------- -------- -------- -------- -------- --------
Sales....................................
Lump..................................... (kt) 14,156 14,127 12,804 15,104 13,896 13,896 14,156
Fines.................................... (kt) 42,278 45,447 41,043 46,249 40,733 40,733 42,278
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 56,434 59,574 53,847 61,353 54,629 54,629 56,434
-------- -------- -------- -------- -------- -------- --------
Total sales (100%)....................... (kt) 65,368 69,196 62,513 71,149 63,322 63,322 65,368
-------- -------- -------- -------- -------- -------- --------
(1)Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production............................... (kt) -- -- -- -- -- -- --
Sales.................................... (kt) 12 -- 35 -- -- -- 12
(1)Mining and processing operations remain suspended following the failure of
the Fundao tailings dam and Santarem water dam on 5 November 2015.
--------------------------------------------------------------------------------
BHP Operational Review for 17
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production /(1)/.........................
BMA......................................
Blackwater............................... (kt) 1,981 1,855 1,694 1,766 1,985 1,985 1,981
Goonyella................................ (kt) 2,123 2,204 1,871 1,157 1,639 1,639 2,123
Peak Downs............................... (kt) 1,520 1,715 1,582 1,238 1,602 1,602 1,520
Saraji................................... (kt) 1,238 1,307 1,276 913 1,414 1,414 1,238
Daunia................................... (kt) 646 680 674 560 662 662 646
Caval Ridge.............................. (kt) 876 923 899 760 994 994 876
-------- -------- -------- -------- -------- -------- --------
Total BMA................................ (kt) 8,384 8,684 7,996 6,394 8,296 8,296 8,384
-------- -------- -------- -------- -------- -------- --------
BHP Mitsui Coal /(2)/....................
South Walker Creek....................... (kt) 1,341 1,080 1,354 1,348 1,400 1,400 1,341
Poitrel.................................. (kt) 804 849 784 752 871 871 804
-------- -------- -------- -------- -------- -------- --------
Total BHP Mitsui Coal.................... (kt) 2,145 1,929 2,138 2,100 2,271 2,271 2,145
-------- -------- -------- -------- -------- -------- --------
Total Queensland Coal.................... (kt) 10,529 10,613 10,134 8,494 10,567 10,567 10,529
-------- -------- -------- -------- -------- -------- --------
Sales....................................
Coking coal.............................. (kt) 7,240 7,658 7,133 5,496 7,934 7,934 7,240
Weak coking coal......................... (kt) 2,799 2,659 2,761 2,502 3,150 3,150 2,799
Thermal coal............................. (kt) 206 154 96 142 102 102 206
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 10,245 10,471 9,990 8,140 11,186 11,186 10,245
-------- -------- -------- -------- -------- -------- --------
(1)Production figures include some thermal coal.
(2)Shown on a 100% basis. BHP interest in saleable production is 80%.
Haju, Indonesia /(1)/
Production............................... (kt) 102 27 -- -- -- -- 102
Sales - export........................... (kt) 117 -- -- -- -- -- 117
(1)Shown on 100% basis. BHP interest in saleable production is 75%. BHP completed the sale of IndoMet Coal on 14 October 2016.
New Mexico, USA
Production...............................
Navajo Coal /(1)/........................ (kt) 451 -- -- -- -- -- 451
San Juan Coal /(2)/...................... (kt) -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 451 -- -- -- -- -- 451
-------- -------- -------- -------- -------- -------- --------
Sales thermal coal - local utility....... 105 -- -- -- -- -- 105
(1)The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP.
Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.
(2)BHP completed the sale of San Juan Mine on 31 January 2016.
NSW Energy Coal, Australia
Production............................... (kt) 3,952 3,851 4,662 5,711 4,235 4,235 3,952
Sales....................................
Export thermal coal...................... (kt) 3,640 3,539 4,407 4,913 3,622 3,622 3,640
Inland thermal coal...................... (kt) 331 311 431 327 405 405 331
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 3,971 3,850 4,838 5,240 4,027 4,027 3,971
-------- -------- -------- -------- -------- -------- --------
Cerrejon, Colombia
Production............................... (kt) 2,928 2,800 2,756 2,475 2,497 2,497 2,928
Sales thermal coal - export.............. (kt) 2,905 2,722 2,613 2,803 2,518 2,518 2,905
--------------------------------------------------------------------------------
BHP Operational Review for 18
the quarter ended 30 September 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Sep Dec Mar Jun Sep Sep Sep
2016 2016 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Production...............................
Nickel contained in concentrate.......... (kt) 0.3 0.2 0.2 -- -- -- 0.3
Nickel contained in finished matte....... (kt) 1.8 4.1 2.3 5.3 6.8 6.8 1.8
Nickel metal............................. (kt) 16.7 17.8 16.5 19.9 16.0 16.0 16.7
-------- -------- -------- -------- -------- -------- --------
Total nickel production.................. (kt) 18.8 22.1 19.0 25.2 22.8 22.8 18.8
-------- -------- -------- -------- -------- -------- --------
Sales
Nickel contained in concentrate.......... (kt) 0.3 0.2 0.2 -- -- -- 0.3
Nickel contained in finished matte....... (kt) 1.8 4.1 2.2 4.9 4.6 4.6 1.8
Nickel metal............................. (kt) 16.5 17.6 17.1 18.1 16.6 16.6 16.5
-------- -------- -------- -------- -------- -------- --------
Total nickel sales....................... (kt) 18.6 21.9 19.5 23.0 21.2 21.2 18.6
-------- -------- -------- -------- -------- -------- --------
--------------------------------------------------------------------------------
BHP Operational Review for 19
the quarter ended 30 September 2017
Date: 18/10/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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