Wrap Text
BHP Operational Review for the Half Year Ended 31 December 2017
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
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Release Time IMMEDIATE
Date 18 January 2018
Release Number 01/18
BHP OPERATIONAL REVIEW
FOR THE HALF YEAR ENDED 31 DECEMBER 2017
. Full year production and unit cost guidance/(1)/ maintained for Petroleum,
Copper, Iron Ore and Energy Coal. At Western Australia Iron Ore (WAIO), a
record annualised production rate of 284 Mt (100 per cent basis) was
achieved for the December 2017 quarter.
. Production guidance for Metallurgical Coal reduced to between 41 and 43 Mt
as a result of challenging roof conditions at Broadmeadow, which are
expected to continue through the March 2018 quarter, and geotechnical
issues triggered by wet weather impacts at Blackwater. Unit cost guidance
is also expected to be negatively impacted and is currently under review.
. We continue to release latent capacity across our portfolio, with the Los
Colorados Extension project successfully ramped up during the December 2017
quarter.
. In Onshore US, our operated rig count remained at nine during the December
2017 quarter but is expected to fall as we tailor plans to maximise value
in the exit process. We continue to progress a number of alternatives to
divest our Onshore US assets for value.
. All major projects under development are tracking to plan.
. Underlying EBIT/(2)/ in the December 2017 half year is expected to include
impairment charges, predominately related to conveyors at Escondida, in a
range of US$250 million to US$350 million.
Production Dec H17 vs Dec H16
---------- ------- ----------
Petroleum (MMboe) ............ 99 (7%) Lower volumes reflect the impact of Hurricane Harvey and Hurricane
Nate on US petroleum assets and natural field decline.
Copper (kt) .................. 833 17% Increased volumes at Escondida supported by the ramp-up of the
Los Colorados Extension project.
Iron ore/(3)/ (Mt) ........... 117 0% Record production at Jimblebar and Mining Area C offset by planned
maintenance and lower opening stockpile levels following the Mt
Whaleback fire in June 2017.
Metallurgical coal/(3)/ (Mt).. 20 (4%) Record production at four Queensland Coal mines offset by the lower
volumes at Broadmeadow (roof conditions) and Blackwater
(geotechnical issues).
Energy coal (Mt)/(3)/......... 14 4% Strong performance at New South Wales Energy Coal offset by the
impacts of unfavourable wet weather at Cerrejon.
BHP Chief Executive Officer, Andrew Mackenzie, said: "A strong operating
performance in the first half allowed us to capture the benefit of higher
prices. The successful Los Colorados Extension project ramp-up contributed to a
17 per cent increase in copper output and production records were achieved at a
number of Western Australia Iron Ore and Queensland Coal mines. We have revised
down our metallurgical coal production forecast for the full year as a result of
geotechnical issues at both Broadmeadow and Blackwater. The momentum we've built
across the wider portfolio during the second quarter will flow through to an
expected stronger second half operating performance. Together with incremental
production from latent capacity projects in iron ore and copper, we expect
volume growth of six per cent for the full year."
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BHP Operational Review for 1
the half year ended 31 December 2017
Summary
Operational performance
Production for the December 2017 half year and guidance for the 2018 financial
year are summarised in the table below.
Dec H17 Dec Q17 Dec Q17 Previous Current
vs vs vs FY18 FY18
Production Dec H17 Dec Q17 Dec H16 Dec Q16 Sep Q17 guidance guidance
---------------------------- -------- -------- -------- -------- -------- --------------- ----------------
Petroleum (MMboe) ............. 99 48 (7%) (6%) (4%) 180 -190 180 -190
Onshore US (MMboe) .......... 35 18 (13%) (10%) 1% 61 - 67 61 - 67
Conventional (MMboe) ........ 64 31 (3%) (3%) (6%) 119 - 123 119 - 123
Copper (kt) ................... 833 429 17% 20% 6% 1,655 - 1,790 1,655 - 1,790
Escondida (kt) .............. 583 315 29% 34% 17% 1,130 - 1,230 1,130 - 1,230
Other copper/(i)/ (kt) ........ 250 114 (4%) (7%) (16%) 525 - 560 525 - 560
Iron ore/(ii)/ (Mt) ........... 117 62 0% 3% 11% 239 - 243 239 - 243
WAIO (100% basis) (Mt) ...... 136 72 0% 3% 11% 75 - 280/(iii)/ 275 - 280/(iii)/
Metallurgical coal/(ii)/ (Mt).. 20 10 (4%) (9%) (8%) 44 - 46 41 - 43
Energy coal/(ii)/ (Mt) ........ 14 7 4% 10% 8% 29 - 30 29 - 30
(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(iii) Subject to regulatory approvals to increase capacity above 270 Mt.
Major development projects
During the December 2017 half year, the BHP Board approved an investment of
US$2.5 billion for the development of the Spence Growth Option.
BHP has 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. All
projects remain on time and on budget.
Corporate update
BHP expects Underlying EBIT in the December 2017 half year to include impairment
charges (predominately related to conveyors at Escondida that are no longer
planned to be utilised due to the successful completion of the Los Colorados
Extension project) in a range of US$250 million to US$350 million.
The Group's adjusted effective tax rate/(4)/ for the December 2017 half year is
currently being finalised and is expected to be below the full year guidance
range of 32 to 37 per cent.
As previously highlighted, during the December 2017 half year we made final
corporate income tax cash payments in Australia of approximately US$1.3 billion
relating to the prior year. We also successfully concluded a US$2.9 billion
multi-currency bond repurchase plan, with total costs in relation to the
repurchase program of approximately US$100 million to be reported in net finance
costs in the December 2017 half year financial results.
On 16 November 2017, Samarco and its shareholders, Vale S.A. and BHP Billiton
Brasil, entered into an agreement with the Federal Prosecutors' Office in Brazil
and the Minas Gerais State Prosecutors Office (Amendment Agreement). The
Amendment Agreement, subject to ratification by the 12th Federal Court of Minas
Gerais, amends the Preliminary Agreement/(5)/ entered into on 18 January 2017 in
relation to the Samarco dam failure (Preliminary Agreement). The Amendment
Agreement provides for the State Prosecutors to become a party to the
Preliminary Agreement and provides for additional community consultation.
Samarco, Vale S.A., BHP Billiton Brasil and the Federal Prosecutors also jointly
requested, and the 12th Federal Court has approved, an additional 150 days,
ending on 20 April 2018, for the parties to continue negotiations for the
settlement of the Public Civil Claims.
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BHP Operational Review for 2
the half year ended 31 December 2017
On 22 December 2017, BHP announced a total of US$181 million in further
financial support for the Renova Foundation and Samarco until 30 June 2018. This
comprises US$133 million to fund the Renova Foundation which will be offset
against the Group's provision for the Samarco dam failure, US$6 million of fees
payable to experts appointed in connection with remediation and compensation
programs and a short-term facility of up to US$42 million to be made available
to Samarco.
As at the date of this Operational Review, we are not in a position to provide
an update, for the purpose of the December 2017 half year financial results, on
the ongoing potential financial impacts on BHP Billiton Brasil of the Samarco
dam failure. Any financial impacts will continue to be classified as an
exceptional item.
On 22 December 2017, the US President signed a new US tax law (H.R. 1). BHP is
currently working through the financial impacts of the tax reform, which will
include a non-cash revaluation of the Group's US net deferred tax assets. The
financial impact is expected to give rise to an exceptional item in the December
2017 half year financial results. Longer term, we expect US attributable profits
to be positively impacted by the lower US corporate income tax rate.
Marketing update
The average realised prices achieved for our major commodities are summarised in
the table below. The majority of iron ore shipments were linked to the index
price for the month of shipment, with price differentials predominantly a
reflection of product quality and market fundamentals. The majority of
metallurgical coal and energy coal exports were linked to the index price for
the month of shipment or sold on the spot market at fixed or index-linked
prices, with price differentials reflecting product quality.
Dec H17 Dec H17 Dec H17
vs vs vs
Average realised prices/(i)/ Dec H17 Dec H16 Jun H17 FY17 Dec H16 Jun H17 FY17
---------------------------- ------- ------- ------- ------- ------- ------- -------
Oil (crude and condensate)(US$/bbl) ... 54 45 50 48 20% 8% 13%
Natural gas (US$/Mscf)/(ii)/ .......... 3.54 3.21 3.48 3.34 10% 2% 6%
US natural gas (US$/Mscf) ............. 2.84 2.79 2.98 2.88 2% (5%) (1%)
LNG (US$/Mscf) ........................ 7.48 6.35 7.37 6.84 18% 1% 9%
Copper (US$/lb) ....................... 3.20 2.41 2.70 2.54 33% 19% 26%
Iron ore (US$/wmt, FOB) ............... 57 55 62 58 4% (8%) (2%)
Hard coking coal (US$/t) .............. 182 179 180 180 2% 1% 1%
Weak coking coal (US$/t) .............. 121 122 121 121 (1%) 0% 0%
Thermal coal (US$/t)/(iii)/ ........... 87 74 75 75 18% 16% 16%
Nickel metal (US$/t) .................. 11,083 10,581 9,799 10,184 5% 13% 9%
(i) Based on provisional, unaudited estimates. Prices exclude sales from
equity accounted investments, third party product and internal sales, and represent the
weighted average of various sales terms (for example: FOB, CIF and CFR),
unless otherwise noted. Includes the impact of provisional pricing and
finalisation adjustments.
(ii) Includes internal sales.
(iii) Export sales only. Includes thermal coal sales from
metallurgical coal mines.
At 31 December 2017, the Group had 348 kt of outstanding copper sales that were
revalued at a weighted average price of US$3.28 per pound. The final price of
these sales will be determined over the remainder of the 2018 financial year. In
addition, 254 kt of copper sales from the 2017 financial year were subject to a
finalisation adjustment in the current period. The provisional pricing and
finalisation adjustments will increase Underlying EBITDA/(2)/ by US$246 million
in the December 2017 half year.
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BHP Operational Review for 3
the half year ended 31 December 2017
Petroleum
Production
Dec H17 Dec Q17 Dec Q17
vs vs vs
Dec H17 Dec Q17 Dec H16 Dec Q16 Sep Q17
------- ------- ------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe) .. 45 22 (8%) (7%) 1%
Natural gas (bcf) ...................................... 325 157 (6%) (5%) (7%)
------- ------- ------- ------- -------
Total petroleum production (MMboe) ..................... 99 48 (7%) (6%) (4%)
------- ------- ------- ------- -------
Petroleum - Total petroleum production for the December 2017 half year decreased
by seven per cent to 99 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.
Production breakdown Dec H17 vs Dec H16
-------------------- ------- ----------
Crude oil, condensate and natural gas liquids (MMboe)
Conventional .................. 30 (6%) Decrease due to the impact of Hurricane Harvey and Hurricane Nate in the
Gulf of Mexico and natural field decline across the portfolio.
Onshore US .................... 15 (12%) Decrease due to the impact of Hurricane Harvey and natural field
decline, which more than offset additional wells put online in the Black
Hawk and Permian.
--- ----
Total ......................... 45 (8%)
--- ----
Natural gas (bcf)
Conventional .................. 203 (1%) Production broadly unchanged.
Onshore US .................... 122 (14%) Decrease due to the impact of Hurricane Harvey and natural field
decline, partially offset by additional wells put online in the Eagle
Ford, Permian and Haynesville.
--- ----
Total ......................... 325 (6%)
--- ----
Completion of the agreement with Chevron and ExxonMobil to withdraw from our
4.95 per cent interest in the Genesis deepwater asset in the Gulf of Mexico
occurred in December 2017, with an effective date of 1 January 2017.
Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
------------------------ ----------- ------------ -------------------------------------- ----------------------------------------
North West Shelf Greater 314 CY19 To maintain LNG plant throughput from On schedule and budget. The overall
Western Flank-B the North West Shelf operations. project is 66% complete.
(Australia)
16.67% (non-operator)
Mad Dog Phase 2 2,154 CY22 New floating production facility with On schedule and budget. The overall
(US Gulf of Mexico) the capacity to produce up to 140,000 project is 10% complete.
23.9% (non-operator) gross barrels of crude oil per day.
Petroleum capital expenditure of approximately US$1.9 billion is now planned in
the 2018 financial year, a reduction from our previous guidance of US$2.0
billion. Onshore US capital expenditure is expected to be lower at US$1.1
billion, reflecting development activity tailored to support value in the exit
process and meet Hold by Production obligations. Conventional capital
expenditure of US$0.8 billion remains unchanged, 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 development activity
Onshore US drilling and development expenditure for the December 2017 half year
was US$336 million (US$511 million on an activity basis). Our operated rig count
remained at nine during the December 2017 quarter.
. We have adjusted our Onshore US capital plans to optimise value for our
planned exit.
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BHP Operational Review for 4
the half year ended 31 December 2017
. In the Permian, sub-surface trials have confirmed first year production
improvements associated with larger completions. We reduced our rig count
from three to two (in December 2017 quarter) as we focused on meeting Hold
by Production obligations and progressing sub-surface trials.
. In the Eagle Ford, we increased our rig count from two to three in the
December 2017 quarter to test the Austin Chalk horizon and trial larger
completions in Hawkville. We anticipate a return to two rigs during the
March 2018 quarter.
. In the Haynesville, we recently incorporated larger completions and have
been operating new wells with larger chokes, both of which have improved
results. We will continue to implement these changes in future wells, but
expect to lower our rig count during the second half of the 2018 financial
year as rig contracts expire and we optimise future investments ahead of
our planned exit.
. In the Fayetteville, our plans remain unchanged at this time. We continue
to assess the potential of the Moorefield horizon based on data from the
new non-operated wells.
Liquids focused areas Gas focused areas
December 2017 half year ---------------------- -------------------------
(December 2016 half year) Eagle Ford Permian Haynesville Fayetteville Total
------------------------- ----------- ---------- ----------- ------------ -------------
Capital expenditure/(i)/ US$ billion 0.1 (0.1) 0.1 (0.1) 0.1 (0.0) 0.0 (0.0) 0.3 (0.3)
Rig allocation At period end 3 (1) 2 (1) 4 (1) 0 (0) 9 (3)
Net wells drilled and Period total 9 (43) 10 (15) 10 (0) 0 (2) 29 (60)
completed/(ii)/
Net productive wells At period end 931 (942) 136 (118) 405 (394) 1,043 (1,042) 2,515 (2,496)
(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.
We continue to progress a number of alternatives to exit our Onshore US assets
for value. We are preparing all appropriate documentation ahead of data rooms
being opened to potential trade sale buyers by the end of the March 2018
quarter. In parallel, we continue to explore a potential exit via demerger or
Initial Public Offering.
Petroleum exploration
Exploration and appraisal wells drilled during the December 2017 quarter are
summarised below.
Total well
Well Location Target BHP equity Spud date Water depth depth Status
---- ----------------- ------ ---------- -------------- ----------- ---------- --------------
Scimitar US Gulf of Mexico Oil 65% 1 October 2017 1,289 m 9,386 m Drilling ahead
GC392
In the US Gulf of Mexico, the Scimitar well was 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
licence 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. We have
received positive feedback and planning continues for the exploration and
appraisal wells which are expected to be drilled in the 2019 financial year.
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 December 2017 half year was US$378
million, of which US$137 million was expensed. A US$715 million exploration
program is planned for the 2018 financial year. This program comprises the
Wildling-2 side track and Scimitar exploration well in the US Gulf of Mexico and
two wells in Trinidad and Tobago, with the third well now expected to be drilled
at the beginning of the 2019 financial year.
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BHP Operational Review for 5
the half year ended 31 December 2017
Copper
Production
Dec H17 Dec Q17 Dec Q17
vs vs vs
Dec H17 Dec Q17 Dec H16 Dec Q16 Sep Q17
------- ------- ------- ------- -------
Copper (kt) .................... 833 429 17% 20% 6%
Zinc (t) ....................... 58,255 29,054 54% 30% (1%)
Uranium oxide concentrate (t) .. 1,123 243 (43%) (77%) (72%)
Copper - Total copper production for the December 2017 half year increased by 17
per cent to 833 kt. Guidance for the 2018 financial year remains unchanged at
between 1,655 and 1,790 kt.
Escondida copper production for the December 2017 half year increased by 29 per
cent to 583 kt, supported by the start-up of the Los Colorados Extension (LCE)
project on 10 September 2017. LCE successfully ramped up during the December
2017 quarter, enabling utilisation of the three concentrators. Production
guidance for the 2018 financial year remains unchanged at between 1,130 and
1,230 kt. Escondida and Union N(degree)2 of Supervisors and Staff signed a new
Collective Agreement, valid from 1 October 2017, which has a duration of 36
months. The existing agreement with Union N(degree)1 will expire on 1 August
2018, with planning underway for early negotiations.
Pampa Norte copper production for the December 2017 half year increased by nine
per cent to 126 kt, supported by record material mined at Cerro Colorado and
rapid ramp-up at the Spence tank house post unplanned maintenance during the
September 2017 quarter. Pampa Norte production guidance for the 2018 financial
year remains unchanged and is expected to be higher than the prior year.
Olympic Dam copper production for the December 2017 half year decreased by 31
per cent to 54 kt as a result of the planned major smelter maintenance campaign
recently completed. Smelting operations have now resumed with the first anode
cast from the flash furnace on 23 December 2017. Operations will continue to
ramp-up to full capacity in the March 2018 quarter, with production guidance
unchanged at 150 kt for the 2018 financial year. We expect production to
increase to approximately 215 kt in the 2019 financial year, underpinned by
improved operating performance and higher ore grades from the Southern Mine
Area.
Antamina copper production for the December 2017 half year increased by five per
cent to 70 kt and zinc production increased 54 per cent to 58 kt due to higher
head grades and mining progressing through a zinc-rich ore zone consistent with
the mine plan. Guidance for the 2018 financial year remains unchanged, with
copper production of approximately 125 kt and zinc production of approximately
100 kt.
Projects Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
----------- ------------- ------------ ------------------------------------ -------------------------------------
Spence Growth Option ...... 2,460 FY21 New 95 ktpd concentrator is On schedule and budget. The overall
(Chile) expected to increase Spence's project is 4% complete.
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.
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BHP Operational Review for 6
the half year ended 31 December 2017
Iron Ore
Production
Dec H17 Dec Q17 Dec Q17
vs vs vs
Dec H17 Dec Q17 Dec H16 Dec Q16 Sep Q17
-------- ------- ------- ------- -------
Iron ore/(i)/ (kt) ... 117,144 61,557 0% 3% 11%
(i) Represents Western Australia Iron Ore (WAIO). Excludes production from
Samarco.
Iron ore - Total iron ore production for the December 2017 half year was in line
with the same period last year at 117 Mt, or 136 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 second half of the financial year as expected.
At WAIO, record production at Jimblebar and Mining Area C was 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 previous quarter.
Volumes increased by 11 per cent from the September 2017 quarter with a record
annualised rate of 284 Mt (100 per cent basis) achieved for the December 2017
quarter. The higher volumes reflect increased plant availability and improved
rail performance. Port debottlenecking activities were completed in the December
2017 quarter and will support higher volumes in the second half of the financial
year.
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
Dec H17 Dec Q17 Dec Q17
vs vs vs
Dec H17 Dec Q17 Dec H16 Dec Q16 Sep Q17
------- ------- ------- ------- -------
Metallurgical coal (kt) .. 20,252 9,685 (4%) (9%) (8%)
Energy coal (kt) ......... 14,029 7,297 4% 10% 8%
Metallurgical coal - Metallurgical coal production for the December 2017 half
year decreased by four per cent to 20 Mt. Guidance for the 2018 financial year
has been reduced to between 41 and 43 Mt and reflects lower volumes now expected
at Broadmeadow and Blackwater. As a result of the reduced Broadmeadow and
Blackwater volumes and compensatory increased production from higher cost pits,
unit cost guidance is also expected to be negatively impacted and is currently
under review.
At Queensland Coal, production for the December 2017 half year was lower due to
the impacts of ongoing challenging roof conditions at Broadmeadow and
geotechnical issues brought on by wet weather at Blackwater. This was partially
offset by record production at South Walker Creek, Saraji, Caval Ridge and
Daunia, underpinned by improved truck and shovel performance, utilisation of
latent dragline capacity at Caval Ridge and increased wash-plant feed rates.
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 December 2017 half year increased
by four per cent to 14 Mt. Guidance for the 2018 financial year remains
unchanged at 29 to 30 Mt.
New South Wales Energy Coal production increased by 10 per cent as it benefitted
from improved stripping performance, higher truck utilisation and additional
bypass coal. This was partially offset by a six per cent decline in Cerrejon
production, which was impacted by wet weather conditions during the September
2017 quarter.
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BHP Operational Review for 7
the half year ended 31 December 2017
Other
Nickel production
Dec H17 Dec Q17 Dec Q17
vs vs vs
Dec H17 Dec Q17 Dec H16 Dec Q16 Sep Q17
------- ------- ------- ------- -------
Nickel (kt) .. 45.2 22.4 11% 1% (2%)
Nickel - Nickel West production for the December 2017 half year increased by 11
per cent to 45 kt of nickel primarily due to improved performance at the
Kalgoorlie smelter. Nickel production guidance for the 2018 financial year
remains unchanged and is expected to be broadly in line with the 2017 financial
year.
Potash project
Investment
Project and ownership (US$m) Scope Progress
--------------------- ---------- -------------------------------------------- -----------------------------------------
Jansen Potash .... 2,600 Investment to finish the excavation and The project is 75% complete and within
(Canada) ......... lining of the production and service the approved budget. Shaft excavation is
100% ............. shafts, and to continue the installation of progressing.
essential surface infrastructure and
utilities.
Minerals exploration
Minerals exploration expenditure for the December 2017 half year was US$86
million, of which US$55 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 December 2017 half year compared with the December 2016
half year, unless otherwise noted. Production volumes, sales volumes and capital
and exploration expenditure from subsidiaries are reported on a 100 per cent
basis; production and sales volumes from equity accounted investments and other
operations are reported on a proportionate consolidation basis. Copper
equivalent production based on 2017 financial year average realised prices.
The following footnotes apply to this Operational Review:
----------
(1) 2018 financial year unit cost guidance is based on exchange rates of AUD/USD
0.75 and USD/CLP 663.
(2) Underlying EBIT and Underlying EBITDA are used to reflect the underlying
performance of BHP. Underlying EBIT is earnings before net finance costs,
taxation and any exceptional items. Underlying EBITDA is Underlying EBIT
before depreciation, amortisation and impairment.
(3) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(4) Adjusted effective tax rate comprises Total taxation (expense)/benefit
excluding exceptional items and exchange rate movements included in taxation
(expense)/benefit divided by Profit/(loss) before taxation and exceptional
items.
(5) The Preliminary Agreement outlines the process and timeline for negotiation
of a settlement of the BRL 155 billion (approximately US$47 billion) and BRL
20 billion (approximately US$6 billion) Public Civil Claims relating to the
dam failure.
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).
Sponsor: UBS South Africa (Pty) Limited
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BHP Operational Review for 8
the half year ended 31 December 2017
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BHP Operational Review for 9
the half year ended 31 December 2017
Production summary
Quarter ended Year to date
---------------------------------- ---------------
Dec Mar Jun Sep Dec Dec Dec
BHP 2016 2017 2017 2017 2017 2017 2016
interest ------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Crude oil, condensate and NGL (Mboe)
Onshore US........................... 8,143 9,439 8,501 7,079 7,423 14,502 16,431
Conventional......................... 15,768 15,369 15,612 15,090 14,869 29,959 31,727
------ ------ ------ ------ ------ ------- -------
Total................................ 23,911 24,808 24,113 22,169 22,292 44,461 48,158
------ ------ ------ ------ ------ ------- -------
Natural gas (bcf)
Onshore US........................... 67.8 66.1 67.2 61.4 60.5 121.9 141.7
Conventional......................... 97.1 88.4 99.5 107.3 96.1 203.4 204.9
------ ------ ------ ------ ------ ------- -------
Total................................ 164.9 154.5 166.7 168.7 156.6 325.3 346.6
------ ------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------ ------- -------
Total petroleum production (MMboe)...... 51.4 50.6 51.9 50.3 48.4 98.7 105.9
------ ------ ------ ------ ------ ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/ ..................... 57.5% 162.6 67.6 162.4 196.3 238.5 434.8 309.6
Antamina............................. 33.8% 32.0 29.2 38.5 35.9 33.8 69.7 66.1
------ ------ ------ ------ ------ ------- -------
Total................................ 194.6 96.8 200.9 232.2 272.3 504.5 375.7
------ ------ ------ ------ ------ ------- -------
Cathode (kt)
Escondida /(3)/ ..................... 57.5% 71.5 27.2 62.8 71.9 76.1 148.0 142.0
Pampa Norte /(4)/ ................... 100% 53.8 66.1 72.3 58.0 68.4 126.4 115.9
Olympic Dam.......................... 100% 37.2 36.8 51.4 42.0 12.2 54.2 78.1
------ ------ ------ ------ ------ ------- -------
Total................................ 162.5 130.1 186.5 171.9 156.7 328.6 336.0
------ ------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------ ------- -------
Total copper (kt)....................... 357.1 226.9 387.4 404.1 429.0 833.1 711.7
------ ------ ------ ------ ------ ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................. 33.8% 1,220 1,308 1,799 1,415 1,009 2,424 2,366
------ ------ ------ ------ ------ ------- -------
Total................................ 1,220 1,308 1,799 1,415 1,009 2,424 2,366
------ ------ ------ ------ ------ ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................. 33.8% 22,406 20,653 29,076 29,201 29,054 58,255 37,773
------ ------ ------ ------ ------ ------- -------
Total................................ 22,406 20,653 29,076 29,201 29,054 58,255 37,773
------ ------ ------ ------ ------ ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/ ..................... 57.5% 37,784 11,572 33,941 50,525 50,279 100,804 65,345
Olympic Dam (refined gold)........... 100% 29,651 21,941 28,188 13,101 15,969 29,070 54,017
------ ------ ------ ------ ------ ------- -------
Total................................ 67,435 33,513 62,129 63,626 66,248 129,874 119,362
------ ------ ------ ------ ------ ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/ ..................... 57.5% 1,323 540 1,234 1,737 2,193 3,930 2,552
Antamina............................. 33.8% 1,446 1,301 1,691 1,596 1,331 2,927 2,791
Olympic Dam (refined silver)......... 100% 188 174 243 131 135 266 351
------ ------ ------ ------ ------ ------- -------
Total................................ 2,957 2,015 3,168 3,464 3,659 7,123 5,694
------ ------ ------ ------ ------ ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam.......................... 100% 1,060 948 737 880 243 1,123 1,976
------ ------ ------ ------ ------ ------- -------
Total................................ 1,060 948 737 880 243 1,123 1,976
------ ------ ------ ------ ------ ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................. 33.8% 225 30 328 402 579 981 786
------ ------ ------ ------ ------ ------- -------
Total................................ 225 30 328 402 579 981 786
------ ------ ------ ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 10
the half year ended 31 December 2017
Production summary
Quarter ended Year to date
---------------------------------- ---------------
Dec Mar Jun Sep Dec Dec Dec
BHP 2016 2017 2017 2017 2017 2017 2016
interest ------ ------ ------ ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt)/(5)/
Newman............................... 85% 17,751 16,283 16,241 13,842 18,317 32,159 35,759
Area C Joint Venture................. 85% 12,179 11,165 13,016 13,099 13,575 26,674 24,563
Yandi Joint Venture.................. 85% 17,555 14,656 17,415 14,559 16,348 30,907 33,284
Jimblebar /(6)/ ..................... 85% 5,178 4,824 5,891 6,283 4,583 10,866 11,235
Wheelarra............................ 85% 7,386 6,647 7,578 7,804 8,734 16,538 12,795
Samarco.............................. 50% -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------- -------
Total................................ 60,049 53,575 60,141 55,587 61,557 117,144 117,636
------ ------ ------ ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt)/(7)/
BMA.................................. 50% 8,684 7,996 6,394 8,296 7,394 15,690 17,068
BHP Mitsui Coal /(8)/ ............... 80% 1,929 2,138 2,100 2,271 2,291 4,562 4,074
Haju /(9)/ .......................... 75% 27 -- -- -- -- -- 129
------ ------ ------ ------ ------ ------- -------
Total................................ 10,640 10,134 8,494 10,567 9,685 20,252 21,271
------ ------ ------ ------ ------ ------- -------
Energy coal
Production (kt)
USA.................................. 100% -- -- -- -- -- -- 451
Australia............................ 100% 3,851 4,662 5,711 4,235 4,383 8,618 7,803
Colombia............................. 33.3% 2,800 2,756 2,475 2,497 2,914 5,411 5,728
------ ------ ------ ------ ------ ------- -------
Total................................ 6,651 7,418 8,186 6,732 7,297 14,029 13,982
------ ------ ------ ------ ------ ------- -------
Other
Nickel
Saleable production (kt)
Nickel West.......................... 100% 22.1 19.0 25.2 22.8 22.4 45.2 40.9
------ ------ ------ ------ ------ ------- -------
Total................................ 22.1 19.0 25.2 22.8 22.4 45.2 40.9
------ ------ ------ ------ ------ ------- -------
(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 11
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
---------------------------------- ---------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 2017 2017 2017 2017 2016
------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate.................. (Mboe) 1,770 1,355 1,552 1,815 1,513 3,328 3,692
NGL....................................... (Mboe) 1,460 1,236 1,661 1,950 1,584 3,534 3,562
Natural gas............................... (bcf) 31.3 28.7 37.4 42.6 32.9 75.5 73.2
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 8.4 7.4 9.4 10.9 8.6 19.4 19.5
------ ------ ------ ------ ------ ------- -------
North West Shelf
Crude oil and condensate.................. (Mboe) 1,468 1,239 1,314 1,474 1,442 2,916 2,954
NGL....................................... (Mboe) 263 200 209 227 200 427 555
Natural gas............................... (bcf) 36.9 32.2 32.5 36.2 36.2 72.4 75.6
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 7.9 6.8 6.9 7.7 7.7 15.4 16.1
------ ------ ------ ------ ------ ------- -------
Pyrenees
Crude oil and condensate.................. (Mboe) 1,726 1,509 1,606 1,510 1,210 2,720 3,402
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.7 1.5 1.6 1.5 1.2 2.7 3.4
------ ------ ------ ------ ------ ------- -------
Other Australia /(2)/
Crude oil and condensate.................. (Mboe) 8 8 9 9 8 17 18
Natural gas............................... (bcf) 17.1 15.2 16.3 16.1 13.3 29.4 34.6
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.9 2.5 2.7 2.7 2.2 4.9 5.8
------ ------ ------ ------ ------ ------- -------
Atlantis /(3)/
Crude oil and condensate.................. (Mboe) 3,263 3,881 3,637 3,022 3,377 6,399 6,317
NGL....................................... (Mboe) 207 295 213 218 195 413 415
Natural gas............................... (bcf) 1.6 2.1 1.9 1.6 1.8 3.4 3.1
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 3.7 4.5 4.2 3.5 3.9 7.4 7.2
------ ------ ------ ------ ------ ------- -------
Mad Dog /(3)/
Crude oil and condensate.................. (Mboe) 1,170 1,185 1,167 1,020 1,231 2,251 2,120
NGL....................................... (Mboe) 52 59 68 44 72 116 88
Natural gas............................... (bcf) 0.2 0.2 0.2 0.1 0.2 0.3 0.3
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.3 1.3 1.3 1.1 1.3 2.4 2.3
------ ------ ------ ------ ------ ------- -------
Shenzi /(3)/
Crude oil and condensate.................. (Mboe) 2,692 2,675 2,588 2,291 2,513 4,804 5,324
NGL....................................... (Mboe) 131 161 179 141 184 325 225
Natural gas............................... (bcf) 0.5 0.5 0.6 0.4 0.5 0.9 1.0
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.9 2.9 2.9 2.5 2.8 5.3 5.7
------ ------ ------ ------ ------ ------- -------
Eagle Ford /(4)/
Crude oil and condensate.................. (Mboe) 4,008 5,451 4,278 3,457 3,720 7,177 7,879
NGL....................................... (Mboe) 2,159 2,354 2,240 1,856 2,100 3,956 4,427
Natural gas............................... (bcf) 15.2 17.0 15.1 13.8 14.4 28.2 31.7
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 8.7 10.6 9.0 7.6 8.2 15.8 17.6
------ ------ ------ ------ ------ ------- -------
Permian /(4)/
Crude oil and condensate.................. (Mboe) 1,378 1,202 1,336 1,179 1,142 2,321 2,793
NGL....................................... (Mboe) 580 428 646 587 460 1,047 1,314
Natural gas............................... (bcf) 4.4 4.0 6.2 4.5 3.6 8.1 8.8
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.7 2.3 3.0 2.5 2.2 4.7 5.6
------ ------ ------ ------ ------ ------- -------
Haynesville /(4)/
Crude oil and condensate.................. (Mboe) 3 1 1 -- 1 1 3
NGL....................................... (Mboe) 15 3 -- -- -- -- 15
Natural gas............................... (bcf) 24.0 22.0 21.4 21.5 22.0 43.5 52.2
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 4.0 3.7 3.6 3.6 3.7 7.3 8.7
------ ------ ------ ------ ------ ------- -------
Fayetteville /(4)/
Natural gas............................... (bcf) 24.2 23.1 24.5 21.6 20.5 42.1 49.0
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 4.0 3.9 4.1 3.6 3.4 7.0 8.2
------ ------ ------ ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 12
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
---------------------------------- ---------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 2017 2017 2017 2017 2016
------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/ (continued)
Trinidad/Tobago
Crude oil and condensate.................. (Mboe) 156 127 139 118 135 253 296
Natural gas............................... (bcf) 8.4 8.4 9.4 9.7 10.5 20.2 14.8
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.6 1.5 1.7 1.7 1.9 3.6 2.8
------ ------ ------ ------ ------ ------- -------
Other Americas /(3)/ /(5)/
Crude oil and condensate.................. (Mboe) 269 257 238 229 207 436 544
NGL....................................... (Mboe) 5 6 10 5 3 8 6
Natural gas............................... (bcf) 0.1 0.1 0.1 0.1 0.1 0.2 0.2
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.3 0.3 0.3 0.3 0.2 0.5 0.6
------ ------ ------ ------ ------ ------- -------
UK
Crude oil and condensate.................. (Mboe) 63 72 64 40 22 62 132
NGL....................................... (Mboe) 49 32 16 39 13 52 71
Natural gas............................... (bcf) 1.0 1.0 1.1 0.5 0.6 1.1 2.1
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.3 0.3 0.3 0.2 0.1 0.3 0.6
------ ------ ------ ------ ------ ------- -------
Algeria
Crude oil and condensate.................. (Mboe) 1,016 1,072 942 938 960 1,898 2,006
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.0 1.1 0.9 0.9 1.0 1.9 2.0
------ ------ ------ ------ ------ ------- -------
BHP Petroleum
Crude oil and condensate
Onshore US................................ (Mboe) 5,389 6,654 5,615 4,636 4,863 9,499 10,675
Conventional.............................. (Mboe) 13,601 13,380 13,256 12,466 12,618 25,084 26,805
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 18,990 20,034 18,871 17,102 17,481 34,583 37,480
------ ------ ------ ------ ------ ------- -------
NGL
Onshore US................................ (Mboe) 2,754 2,785 2,886 2,443 2,560 5,003 5,756
Conventional.............................. (Mboe) 2,167 1,989 2,356 2,624 2,251 4,875 4,922
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 4,921 4,774 5,242 5,067 4,811 9,878 10,678
------ ------ ------ ------ ------ ------- -------
Natural gas
Onshore US................................ (bcf) 67.8 66.1 67.2 61.4 60.5 121.9 141.7
Conventional.............................. (bcf) 97.1 88.4 99.5 107.3 96.1 203.4 204.9
------ ------ ------ ------ ------ ------- -------
Total..................................... (bcf) 164.9 154.5 166.7 168.7 156.6 325.3 346.6
------ ------ ------ ------ ------ ------- -------
Total petroleum products
Onshore US................................ (Mboe) 19,443 20,456 19,701 17,312 17,506 34,819 40,048
Conventional.............................. (Mboe) 31,951 30,102 32,195 32,973 30,886 63,859 65,877
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 51,394 50,558 51,896 50,286 48,392 98,678 105,925
------ ------ ------ ------ ------ ------- -------
(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 13
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined........................... (kt) 90,863 26,045 93,389 104,867 101,371 206,238 197,367
Sulphide ore milled...................... (kt) 19,866 8,054 18,777 24,080 30,260 54,340 40,653
Average copper grade..................... (%) 1.02% 1.01% 1.07% 1.06% 0.98% 1.02% 0.94%
Production ex mill....................... (kt) 168.6 68.7 167.0 204.2 245.7 449.9 321.8
Production
Payable copper........................... (kt) 162.6 67.6 162.4 196.3 238.5 434.8 309.6
Copper cathode (EW)...................... (kt) 71.5 27.2 62.8 71.9 76.1 148.0 142.0
- Oxide leach............................ (kt) 24.4 8.9 20.3 22.4 27.4 49.8 51.2
- Sulphide leach......................... (kt) 47.1 18.3 42.5 49.5 48.7 98.2 90.8
-------- -------- -------- -------- -------- -------- --------
Total copper............................. (kt) 234.1 94.8 225.2 268.2 314.6 582.8 451.6
-------- -------- -------- -------- -------- -------- --------
Payable gold concentrate................. (troy oz) 37,784 11,572 33,941 50,525 50,279 100,804 65,345
Payable silver concentrate............... (troy koz) 1,323 540 1,234 1,737 2,193 3,930 2,552
Sales
Payable copper........................... (kt) 172.7 63.7 163.3 195.1 236.7 431.8 307.6
Copper cathode (EW)...................... (kt) 71.8 39.4 56.0 61.6 84.1 145.7 137.4
Payable gold concentrate................. (troy oz) 37,784 11,572 33,941 50,525 50,278 100,803 65,345
Payable silver concentrate............... (troy koz) 1,323 540 1,234 1,737 2,193 3,930 2,552
(1)Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined........................... (kt) 14,286 15,178 15,760 21,381 20,191 41,572 27,297
Ore milled............................... (kt) 3,342 4,179 4,411 3,951 4,611 8,562 6,583
Average copper grade..................... (%) 0.65% 0.57% 0.53% 0.62% 0.59% 0.60% 0.66%
Production
Copper cathode (EW)...................... (kt) 12.1 16.7 18.8 13.3 17.4 30.7 29.2
Sales
Copper cathode (EW)...................... (kt) 13.7 15.6 19.8 12.3 17.7 30.0 30.1
Spence
Material mined........................... (kt) 22,635 22,939 24,230 22,314 23,457 45,771 46,273
Ore milled............................... (kt) 5,187 5,225 4,968 5,375 4,919 10,294 9,900
Average copper grade..................... (%) 1.19% 1.09% 1.13% 1.21% 0.95% 1.09% 1.18%
Production
Copper cathode (EW)...................... (kt) 41.7 49.4 53.5 44.7 51.0 95.7 86.7
Sales
Copper cathode (EW)...................... (kt) 41.5 49.0 55.7 43.0 52.2 95.2 82.7
--------------------------------------------------------------------------------
BHP Operational Review for 14
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%).................... (kt) 61,355 55,771 62,254 59,216 59,125 118,341 126,466
Sulphide ore milled (100%)............... (kt) 13,399 11,955 13,229 12,822 13,098 25,920 26,921
Average head grades
- Copper................................. (%) 0.84% 0.88% 1.00% 0.94% 0.89% 0.91% 0.84%
- Zinc................................... (%) 0.83% 0.84% 0.95% 0.99% 0.93% 0.96% 0.71%
Production
Payable copper........................... (kt) 32.0 29.2 38.5 35.9 33.8 69.7 66.1
Payable zinc............................. (t) 22,406 20,653 29,076 29,201 29,054 58,255 37,773
Payable silver........................... (troy koz) 1,446 1,301 1,691 1,596 1,331 2,927 2,791
Payable lead............................. (t) 1,220 1,308 1,799 1,415 1,009 2,424 2,366
Payable molybdenum....................... (t) 225 30 328 402 579 981 786
Sales
Payable copper........................... (kt) 33.0 30.2 36.9 31.9 37.0 68.9 65.8
Payable zinc............................. (t) 22,334 23,669 27,936 25,224 30,340 55,564 38,377
Payable silver........................... (troy koz) 1,388 1,304 1,513 1,475 1,470 2,945 2,665
Payable lead............................. (t) 1,100 1,475 1,493 1,624 972 2,596 1,867
Payable molybdenum....................... (t) 476 -- -- 168 693 861 1,124
Olympic Dam, Australia
Material mined /(1)/ .................... (kt) 1,887 1,943 1,974 1,851 1,391 3,242 4,091
Ore milled............................... (kt) 2,116 2,112 2,097 2,302 554 2,856 4,395
Average copper grade..................... (%) 2.00% 2.07% 2.30% 2.10% 2.22% 2.12% 1.98%
Average uranium grade.................... (kg/t) 0.68 0.61 0.58 0.55 0.58 0.56 0.64
Production
Copper cathode (ER and EW)............... (kt) 37.2 36.8 51.4 42.0 12.2 54.2 78.1
Uranium oxide concentrate................ (t) 1,060 948 737 880 243 1,123 1,976
Refined gold............................. (troy oz) 29,651 21,941 28,188 13,101 15,969 29,070 54,017
Refined silver........................... (troy koz) 188 174 243 131 135 266 351
Sales
Copper cathode (ER and EW)............... (kt) 41.2 33.5 51.5 31.6 24.3 55.9 78.7
Uranium oxide concentrate................ (t) 883 839 1,298 680 338 1,018 1,968
Refined gold............................. (troy oz) 28,234 22,333 24,726 22,435 17,999 40,434 50,135
Refined silver........................... (troy koz) 203 108 251 219 118 337 387
(1) Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Operational Review for 15
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman................................... (kt) 17,751 16,283 16,241 13,842 18,317 32,159 35,759
Area C Joint Venture..................... (kt) 12,179 11,165 13,016 13,099 13,575 26,674 24,563
Yandi Joint Venture...................... (kt) 17,555 14,656 17,415 14,559 16,348 30,907 33,284
Jimblebar /(1)/ ......................... (kt) 5,178 4,824 5,891 6,283 4,583 10,866 11,235
Wheelarra................................ (kt) 7,386 6,647 7,578 7,804 8,734 16,538 12,795
-------- -------- -------- -------- -------- -------- --------
Total production......................... (kt) 60,049 53,575 60,141 55,587 61,557 117,144 117,636
-------- -------- -------- -------- -------- -------- --------
Total production (100%).................. (kt) 69,730 62,177 69,714 64,287 71,611 135,898 136,411
-------- -------- -------- -------- -------- -------- --------
Sales
Lump..................................... (kt) 14,127 12,804 15,104 13,896 15,145 29,041 28,283
Fines.................................... (kt) 45,447 41,043 46,249 40,733 45,769 86,502 87,725
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 59,574 53,847 61,353 54,629 60,914 115,543 116,008
-------- -------- -------- -------- -------- -------- --------
Total sales (100%)....................... (kt) 69,196 62,513 71,149 63,322 70,733 134,055 134,564
-------- -------- -------- -------- -------- -------- --------
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production............................... (kt) -- -- -- -- -- -- --
Sales.................................... (kt) -- 35 -- -- 14 14 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 16
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 2017 2017 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production /(1)/
BMA
Blackwater............................... (kt) 1,855 1,694 1,766 1,985 1,470 3,455 3,836
Goonyella................................ (kt) 2,204 1,871 1,157 1,639 1,369 3,008 4,327
Peak Downs............................... (kt) 1,715 1,582 1,238 1,602 1,367 2,969 3,235
Saraji................................... (kt) 1,307 1,276 913 1,414 1,198 2,612 2,545
Daunia................................... (kt) 680 674 560 662 718 1,380 1,326
Caval Ridge.............................. (kt) 923 899 760 994 1,272 2,266 1,799
-------- -------- -------- -------- -------- -------- --------
Total BMA................................ (kt) 8,684 7,996 6,394 8,296 7,394 15,690 17,068
-------- -------- -------- -------- -------- -------- --------
BHP Mitsui Coal /(2)/
South Walker Creek....................... (kt) 1,080 1,354 1,348 1,400 1,524 2,924 2,421
Poitrel.................................. (kt) 849 784 752 871 767 1,638 1,653
-------- -------- -------- -------- -------- -------- --------
Total BHP Mitsui Coal.................... (kt) 1,929 2,138 2,100 2,271 2,291 4,562 4,074
-------- -------- -------- -------- -------- -------- --------
Total Queensland Coal.................... (kt) 10,613 10,134 8,494 10,567 9,685 20,252 21,142
-------- -------- -------- -------- -------- -------- --------
Sales
Coking coal.............................. (kt) 7,658 7,133 5,496 7,934 6,341 14,275 14,898
Weak coking coal......................... (kt) 2,659 2,761 2,502 3,150 2,816 5,966 5,458
Thermal coal............................. (kt) 154 96 142 102 173 275 360
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 10,471 9,990 8,140 11,186 9,330 20,516 20,716
-------- -------- -------- -------- -------- -------- --------
(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) 27 -- -- -- -- -- 129
Sales - export........................... (kt) -- -- -- -- -- -- --
(1) Shown on 100% basis. BHP interest in saleable production is 75%. BHP
completed the sale of IndoMet Coal on 14 October 2016.
New Mexico, USA
Production
Navajo Coal /(1)/ ....................... (kt) -- -- -- -- -- -- 451
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) -- -- -- -- -- -- 451
-------- -------- -------- -------- -------- -------- --------
Sales thermal coal - local utility....... -- -- -- -- -- -- 105
(1) The divestment of Navajo Coal was completed on 29 July 2016, with no further
production reported by BHP. Management of Navajo Coal was transferred to
Navajo Transitional Energy Company on 31 December 2016.
NSW Energy Coal, Australia
Production............................... (kt) 3,851 4,662 5,711 4,235 4,383 8,618 7,803
Sales
Export thermal coal...................... (kt) 3,539 4,407 4,913 3,622 4,048 7,670 7,179
Inland thermal coal...................... (kt) 311 431 327 405 411 816 642
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 3,850 4,838 5,240 4,027 4,459 8,486 7,821
-------- -------- -------- -------- -------- -------- --------
Cerrejon, Colombia
Production............................... (kt) 2,800 2,756 2,475 2,497 2,914 5,411 5,728
Sales thermal coal - export.............. (kt) 2,722 2,613 2,803 2,518 2,619 5,137 5,627
--------------------------------------------------------------------------------
BHP Operational Review for 17
the half year ended 31 December 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Dec Mar Jun Sep Dec Dec Dec
2016 2017 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) 0.2 0.2 -- -- -- -- 0.5
Nickel contained in finished matte....... (kt) 4.1 2.3 5.3 6.8 4.6 11.4 5.9
Nickel metal............................. (kt) 17.8 16.5 19.9 16.0 17.8 33.8 34.5
-------- -------- -------- -------- -------- -------- --------
Total nickel production.................. (kt) 22.1 19.0 25.2 22.8 22.4 45.2 40.9
-------- -------- -------- -------- -------- -------- --------
Sales
Nickel contained in concentrate.......... (kt) 0.2 0.2 -- -- -- -- 0.5
Nickel contained in finished matte....... (kt) 4.1 2.2 4.9 4.6 6.4 11.0 5.9
Nickel metal............................. (kt) 17.6 17.1 18.1 16.6 17.9 34.5 34.1
-------- -------- -------- -------- -------- -------- --------
Total nickel sales....................... (kt) 21.9 19.5 23.0 21.2 24.3 45.5 40.5
-------- -------- -------- -------- -------- -------- --------
--------------------------------------------------------------------------------
BHP Operational Review for 18
the half year ended 31 December 2017
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