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BHP BILLITON PLC - BHP Operational Review for Nine Months Ended 31 March 2018

Release Date: 19/04/2018 07:05
Code(s): BIL     PDF:  
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BHP Operational Review for Nine Months Ended 31 March 2018

BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504

NEWS RELEASE                             LOGO

Release Time      IMMEDIATE

Date              19 April 2018

Release Number    04/18

                             BHP OPERATIONAL REVIEW
                     FOR THE NINE MONTHS ENDED 31 MARCH 2018

.    Full year production guidance remains unchanged for
     Petroleum, Metallurgical Coal and Energy Coal.

.    Total Copper production guidance narrowed to between 1,700 and 1,785 kt,
     however guidance for Olympic Dam reduced to approximately 135 kt following
     a slower than planned ramp-up after the major smelter maintenance campaign.

.    Iron Ore production guidance reduced to between 272 and 274 Mt (100% basis) reflecting car dumper reliability issues.

.    Group copper equivalent production is expected to increase by 6% in the
     2018 financial year.

.    The exit process for Onshore US is progressing to plan, with bids expected
     by June 2018 and transactions potentially being announced in the first half
     of the 2019 financial year.

.    In Petroleum, we have increased our footprint in the northern extension of
     the Wildling prospect in the US Gulf of Mexico through the acquisition of
     33.33% interest in the Samurai prospect. We have also secured an option to
     purchase an additional 10% interest in the Scarborough development.

.    All major projects under development are tracking to plan.

Production                        Mar YTD18 vs Mar YTD17 March quarter commentary
----------                        --------- ------------ ------------------------
Petroleum (MMboe)................     143        (8%)    Natural field decline partially offset by improved well performance
                                                         and positive trial results in Onshore US.
Copper (kt)......................    1,290        37%    Increased volumes at Escondida supported by the ramp-up of the Los
                                                         Colorados Extension project.
Iron ore/(1)/ (Mt)...............      175         2%    Record production at Jimblebar and Mining Area C partially offset by
                                                         impacts from Cyclone Joyce in January 2018 and unplanned car dumper maintenance.
Metallurgical coal/(2)/ (Mt).....       31        (2%)   Blackwater operations stabilised and expected to return to full
                                                         capacity next quarter. Good progress made through the fault zone at
                                                         Broadmeadow.
Energy coal/(2)/ (Mt)............       20        (4%)   Unfavourable weather impacts and inventory build at New South Wales
                                                         Energy Coal, and higher strip ratios at Cerrejon.

BHP Chief Executive Officer, Andrew Mackenzie, said: "BHP remains on track to
achieve six per cent volume growth for the 2018 financial year. Strong
performance in copper was underpinned by the Los Colorados Extension project at
Escondida and higher utilisation rates at Pampa Norte. This more than offset the
slower than expected ramp-up of Olympic Dam during the quarter following planned
smelter maintenance. Incremental improvements across our operations from
debottlenecking and increased throughput delivered record production in iron
ore. Our exit from Onshore US is progressing to plan with bids expected by June
2018."

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Summary

Operational performance

Production and guidance are summarised in the table below.

                                                    Mar YTD18 Mar Q18 Mar Q18   Previous       Current
                                                       vs       vs      vs        FY18          FY18
Production                        Mar YTD18 Mar Q18 Mar YTD17 Mar Q17 Dec Q17   guidance      guidance
--------------------------------- --------- ------- --------- ------- ------- ------------- -------------
Petroleum (MMboe)................      143      45      (8%)   (12%)    (8%)      180 - 190     180 - 190      Upper end of range
  Onshore US (MMboe).............       52      17     (14%)   (17%)    (3%)        61 - 67       61 - 67      Upper end of range
  Conventional (MMboe)...........       91      28      (5%)    (8%)   (10%)      119 - 123     119 - 123               Unchanged
Copper (kt)......................    1,290     457      37%    101%      6%   1,655 - 1,790 1,700 - 1,785          Narrowed range
  Escondida (kt).................      897     314      64%    232%      0%   1,130 - 1,230 1,180 - 1,230          Narrowed range
Other copper/(i)/ (kt)...........      393     143       0%      8%     25%       525 - 560     520 - 555 Olympic Dam now ~135 kt
                                                                                                             Antamina now ~135 kt
Iron ore/(ii)/ (Mt)..............      175      58       2%      8%     (6%)      239 - 243     236 - 238      Lowered due to car 
                                                                                                               dumper reliability
  WAIO (100% basis) (Mt).........      203      67       2%      8%     (6%)      275 - 280     272 - 274   As above for iron ore
Metallurgical coal/(ii)/ (Mt)....       31      10      (2%)     2%      7%         41 - 43       41 - 43               Unchanged
Energy coal/(ii)/ (Mt)...........       20       6      (4%)   (18%)   (16%)        29 - 30       29 - 30               Unchanged

(i)  Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

Major development projects

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.

Petroleum

Production
                                                                           Mar YTD18 Mar Q18 Mar Q18
                                                                              vs        vs      vs
                                                         Mar YTD18 Mar Q18 Mar YTD17 Mar Q17 Dec Q17
                                                         --------- ------- --------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe)...       65      20     (11%)   (19%)    (9%)
Natural gas (bcf).......................................      472     147      (6%)    (5%)    (6%)
                                                         --------- ------- --------- ------- -------
Total petroleum production (MMboe)......................      143      45      (8%)   (12%)    (8%)
                                                         --------- ------- --------- ------- -------

Petroleum - Total petroleum production for the nine months ended March 2018
decreased by eight per cent to 143 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. We
expect total petroleum volumes to be towards the upper end of the guidance
range, primarily due to enhanced well performance in our Onshore US fields.

Production breakdown            Mar YTD18   vs Mar YTD17
--------------------            ---------   ------------
Crude oil, condensate and natural gas liquids (MMboe)

Conventional...................     44          (7%)      Hurricanes Harvey and Nate in the Gulf of Mexico and
                                                          natural field decline.
Onshore US.....................     21         (20%)      Hurricane Harvey and natural field decline, which more than offset
                                                          improved recoveries and additional wells in the Black Hawk and
                                                          Permian.
                                   ---         -----
Total..........................     65         (11%)
                                   ---         -----
Natural gas (bcf)

Conventional...................    286          (2%)      Maintenance at North West Shelf and Bass Strait.
Onshore US.....................    186         (10%)      Hurricane Harvey and natural field decline, partially offset by
                                                          additional wells in the Eagle Ford, Permian and Haynesville.
                                   ---         -----
Total..........................    472          (6%)
                                   ---         -----

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On 12 March 2018, BHP agreed to waive its right of pre-emption and provide
consent to the sale by ExxonMobil of its 50 per cent interest in Scarborough to
Woodside, resulting in Woodside and BHP holding 75 per cent and 25 per cent
interests, respectively. BHP has an option to purchase an additional 10 per cent
interest in Scarborough on equivalent consideration and terms to the transaction
with ExxonMobil. This option may be exercised at any time prior to the earlier
of 31 December 2019 and the date approval is given to commence the front-end
engineering and design phase of the development of the Scarborough gas field.

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 80% 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 16% complete.
23.9% (non-operator)                               gross barrels of crude oil per day.

Petroleum capital expenditure guidance remains unchanged at approximately US$1.9
billion for the 2018 financial year. This includes Conventional capital
expenditure of US$0.8 billion, 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 of US$1.1 billion reflects drilling and completion activities
tailored to support value in the exit process and meet Hold by Production
obligations.

Onshore US development activity

Onshore US drilling and development expenditure for the nine months ended March
2018 was US$648 million. Our operated rig count declined from nine to seven
during the March 2018 quarter.

.    In the Permian, we continue to see strong results from larger completions.
     We expect rig count to remain unchanged through the June 2018 quarter as we
     focus on meeting Hold by Production obligations and progressing sub-surface
     trials.

.    In the Eagle Ford, early trial results from wells with longer laterals in
     the Hawkville have exceeded expectations and early results in the Austin
     Chalk horizon have been positive. During April 2018, we reduced our rig
     count from three to two and this is expected to remain unchanged during the
     June 2018 quarter.

.    In the Haynesville, the incorporation of larger choke settings in all new
     wells has significantly increased volumes, and longer laterals and larger
     completions have also outperformed expectations. We expect to lower our rig
     count from two to one during the June 2018 quarter.

.    In the Fayetteville, 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
March YTD18                             ---------------------- -------------------------
(March YTD17)                           Eagle Ford   Permian   Haynesville Fayetteville      Total
-------------------------               ----------- ---------- ----------- ------------- -------------
Capital expenditure/(i)/  US$ billion     0.2 (0.2)  0.3 (0.2)   0.2 (0.0)     0.0 (0.0)     0.6 (0.4)
Rig allocation            At period end       3 (1)      2 (1)       2 (1)         0 (0)         7 (3)
Net wells drilled and     Period total      14 (44)    13 (17)       2 (2)         0 (2)       29 (65)
completed/(ii)/
Net productive wells      At period end   945 (963)  150 (124)   387 (392) 1,042 (1,045) 2,524 (2,524)

(i)  Includes land acquisition, site preparation, drilling, completions, well
     site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory
     of wells drilled but not yet completed at period end.

The exit process for our Onshore US assets is progressing to plan and the data
rooms for all fields and mid-stream assets are now open. We expect to receive
bids by June 2018 and proceed with negotiations to potentially

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announce one or several transactions in the first half of the 2019 financial
year. In parallel, we continue to explore potential asset swap opportunities and
exit via demerger or Initial Public Offering.

Petroleum exploration

Exploration and appraisal wells drilled during the March 2018 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  Plugged and abandoned
             GC392
Scimitar-ST  US Gulf of Mexico   Oil     85%     13 February 2018   1,289 m     8,246 m  Plugged and abandoned
             GC392

As reported in the December 2017 Results Announcement, no commercial
hydrocarbons were encountered at Scimitar in the US Gulf of Mexico. The well was
plugged and abandoned in February 2018. In the northern extension of the
Wildling prospect, we recently increased our footprint through the acquisition
of Samson's 33.33 per cent interest in the Samurai prospect in Green Canyon
Blocks 432 and 476. Murphy Exploration & Production Co is the operator of
Samurai and an exploration well was spud on 16 April 2018. This follows
positive drilling results at Wildling in the first half of the 2018 financial
year. Evaluation is ongoing to assess the scale of the discovery, with plans to
continue drilling in the second half of the 2019 financial year. We were the
apparent high bidder on three blocks, EB 914 and EB 699 in the western Gulf of
Mexico and GC 823 to the west of the Mad Dog field, which we co-own with BP and
Chevron.

Petroleum exploration expenditure for the nine months ended March 2018 was
US$521 million, of which US$395 million was expensed. A US$715 million
exploration program is being executed for the 2018 financial year. This program
comprises the Wildling-2 side track, Scimitar and side track exploration well
and the Samurai-2 well in the US Gulf of Mexico, one well in Trinidad and
Tobago, with the second and third wells now expected to be drilled at the
beginning of the 2019 financial year.

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Copper

Production

                                                      Mar YTD18 Mar Q18 Mar Q18
                                                         vs        vs      vs
                                  Mar YTD18  Mar Q18  Mar YTD17 Mar Q17 Dec Q17
                                  --------- --------- --------- ------- -------
Copper (kt)......................    1,290      457       37%     101%      6%
Zinc (t).........................   83,817   25,562       43%      24%    (12%)
Uranium oxide concentrate (t)....    2,241    1,118      (23%)     18%    360%

Copper - Total copper production for the nine months ended March 2018 increased
by 37 per cent to 1,290 kt. Guidance for the 2018 financial year narrowed to
between 1,700 and 1,785 kt from between 1,655 and 1,790 kt.

Escondida copper production for the nine months ended March 2018 increased by 64
per cent to 897 kt, supported by the start-up of the Los Colorados Extension
project on 10 September 2017. Production guidance for the 2018 financial year
has been narrowed to between 1,180 and 1,230 kt from between 1,130 and 1,230 kt.
The Escondida Water Supply Extension (EWSE) was sanctioned by all joint venture
partners in March 2018 and it comprises the expansion of the Escondida Water
Supply conveyance system and desalination plant. EWSE is in execution phase and
will deliver first water production in the 2020 financial year. EWSE will
continue Escondida's sustainable reduction of groundwater usage and maximise
concentrator throughput beyond the 2020 financial year. The existing agreement
with Union N(degree)1 will expire on 1 August 2018 and early negotiations
started in April 2018.

Pampa Norte copper production increased by six per cent to 193 kt due to record
production at Spence mainly driven by higher utilisation of the solvent
extraction and electrowinning plants. Pampa Norte production guidance for the
2018 financial year remains unchanged and is expected to be higher than the
prior year. During the period, we successfully completed the accelerated
negotiation with Spence Union N(degree)2 (supervisors and staff) with the new
agreement effective from 1 April 2018 for 36 months.

Olympic Dam copper production decreased by 18 per cent to 95 kt as a result of
the planned major smelter maintenance campaign in the first half of the
financial year. Production guidance for the 2018 financial year has been reduced
from 150 kt to approximately 135 kt due to a slower than planned ramp-up during
the March 2018 quarter. A return to full capacity is now expected over the
course of the June 2018 quarter. Development into the higher-grade Southern Mine
Area continues with record underground development metres achieved in March
2018.

Antamina copper production increased by 10 per cent to 105 kt and zinc
production increased 43 per cent to 84 kt due to higher head grades as mining
continued through a zinc-rich ore zone consistent with the mine plan. Copper
production guidance for the 2018 financial year has increased to approximately
135 kt from approximately 125 kt and zinc production guidance to approximately
110 kt from 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 8% 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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Iron Ore

Production

                                                  Mar YTD18 Mar Q18 Mar Q18
                                                     vs       vs      vs
                                Mar YTD18 Mar Q18 Mar YTD17 Mar Q17 Dec Q17
                                --------- ------- --------- ------- -------
        Iron ore (kt)..........  174,835   57,691     2%       8%     (6%)

Iron ore - Total iron ore production for the nine months ended March 2018
increased by two per cent to a record 175 Mt, or 203 Mt on a 100 per cent basis.
Guidance for the 2018 financial year has been reduced to between 236 and
238 Mt, or between 272 and 274 Mt on a 100 per cent basis reflecting car dumper 
reliability issues as we push to record levels of production.

At WAIO, increased production was supported by record production at Jimblebar
and Mining Area C, and improved rail reliability. This was partially offset by
the impact of lower opening stockpile levels following the Mt Whaleback fire in
June 2017, planned maintenance and port debottlenecking activities in the first
half of the financial year. Volumes decreased by six per cent from the December
2017 quarter reflecting impacts from Cyclone Joyce and unplanned car dumper
maintenance, despite improved rail reliability and an increase in peak
performance in the number of rakes per day. With the system constraint now at
the port, a program of work is underway to improve car dumper availability and
performance.

On 16 February 2018, BHP received regulatory approval to increase capacity at
its Port Hedland operations to 290 Mtpa (100 per cent basis) and expects to
reach this run rate by the end of the 2019 financial year.

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

                                                  Mar YTD18 Mar Q18 Mar Q18
                                                     vs       vs      vs
                                Mar YTD18 Mar Q18 Mar YTD17 Mar Q17 Dec Q17
                                --------- ------- --------- ------- -------
    Metallurgical coal (kt)....   30,631   10,379    (2%)      2%      7%
    Energy coal (kt)...........   20,135    6,106    (4%)    (18%)   (16%)

Metallurgical coal - Metallurgical coal production for the nine months ended
March 2018 decreased by two per cent to 31 Mt. Guidance for the 2018 financial
year remains unchanged at between 41 and 43 Mt.

At Queensland Coal, production was lower due to challenging roof conditions at
Broadmeadow and geotechnical issues triggered by wet weather at Blackwater. This
was partially offset by record production at four mines, underpinned by improved
stripping and truck performance, higher wash-plant throughput from
debottlenecking activities and utilisation of latent dragline capacity at Caval
Ridge. Mining operations at Blackwater stabilised in the current quarter and are
expected to return to full capacity during the June 2018 quarter as inventory
levels are rebuilt. At Broadmeadow, progression through the fault zone is
expected to be completed during the June 2018 quarter. 

In March 2018, we successfully reached agreement with employees on the BMA Enterprise Agreement 
2018/(2)/ (covering four producing BMA mines) and it is currently with the 
Fair Work Commission for approval. 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 nine months ended March 2018
decreased by four per cent to 20 Mt. Guidance for the 2018 financial year
remains unchanged at 29 to 30 Mt.

New South Wales Energy Coal production was down one per cent as higher truck
utilisation and additional bypass coal were offset by higher average strip
ratios compared to the corresponding period. Volumes decreased by 16 per cent
from the December 2017 quarter following unfavourable weather impacts and then a
significant build in

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                   BHP Operational Review for              6
                   the nine months ended 31 March 2018

raw coal inventory late in the quarter. This inventory is expected to support an
uplift in volumes in the June 2018 quarter.

Cerrejon production declined seven per cent, due to unfavourable weather impacts
on mine sequencing, equipment availability and higher strip ratio areas being mined.

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                   BHP Operational Review for              7
                   the nine months ended 31 March 2018

Other   

Nickel production

                                                  Mar YTD18 Mar Q18 Mar Q18
                                                     vs       vs      vs
                                Mar YTD18 Mar Q18 Mar YTD17 Mar Q17 Dec Q17
                                --------- ------- --------- ------- -------
        Nickel (kt)............    65.6     20.4      10%      7%     (9%)

Nickel - Nickel West production for the nine months ended March 2018 increased
by 10 per cent to 66 kt of nickel primarily due to increased production rates at
Mt Keith and Leinster. 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 77% 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. At the end of March 2018
                                   essential surface infrastructure and         both shafts reached potash in the Upper
                                   utilities.                                   Patience Lake Member at a depth of
                                                                                approximately 924m.

Minerals exploration

Minerals exploration expenditure for the nine months ended March 2018 was US$128
million, of which US$92 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 nine months ended March 2018 compared with the nine months
ended March 2017, 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, Haju (IndoMet Coal) and New Mexico Coal.
(2) The BMA Enterprise Agreement 2018 covers four producing mines (Blackwater,
    Goonyella, Peak Downs and Saraji) as well as three mines in care and
    maintenance (Crinum, Gregory and Norwich Park).

The following abbreviations may have been used throughout this report: barrels
(bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and
freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per
tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million
barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand
barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic
feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand
tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).

In this release, the terms 'BHP', 'Group', 'BHP Group', 'we', 'us', 'our' and
ourselves' are used to refer to BHP Billiton Limited, BHP Billiton Plc and,
except where the context otherwise requires, their respective subsidiaries as
defined in note 28 'Subsidiaries' in section 5.1 of BHP's 30 June 2017 Annual
Report on Form 20-F and in note 13 'Related undertaking of the Group' in section
5.2 of BHP's 30 June 2017 Annual Report on Form 20-F.

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                   BHP Operational Review for              8
                   the nine months ended 31 March 2018

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                   BHP Operational Review for              9
                   the nine months ended 31 March 2018

Production summary

                                                                Quarter ended             Year to date
                                                      ---------------------------------- ---------------
                                                       Mar    Jun    Sep    Dec    Mar    Mar     Mar
                                              BHP      2017   2017   2017   2017   2018   2018    2017
                                           interest   ------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Crude oil, condensate and NGL (Mboe)
   Onshore US...........................               9,439  8,501  7,079  7,423  6,256  20,758  25,870
   Conventional.........................              15,369 15,612 15,090 14,869 13,960  43,919  47,096
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................              24,808 24,113 22,169 22,292 20,216  64,677  72,966
                                                      ------ ------ ------ ------ ------ ------- -------

Natural gas (bcf)
   Onshore US...........................                66.1   67.2   61.4   60.5   64.1   186.0   207.8
   Conventional.........................                88.4   99.5  107.3   96.1   82.9   286.3   293.3
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................               154.5  166.7  168.7  156.6  147.0   472.3   501.1
                                                      ------ ------ ------ ------ ------ ------- -------
                                                      ------ ------ ------ ------ ------ ------- -------
Total petroleum production (MMboe)......                50.6   51.9   50.3   48.4   44.7   143.4   156.5
                                                      ------ ------ ------ ------ ------ ------- -------

Copper /(2)/
Copper
Payable metal in concentrate (kt)
   Escondida /(3)/......................     57.5%      67.6  162.4  196.3  238.5  244.9   679.7   377.2
   Antamina.............................     33.8%      29.2   38.5   35.9   33.8   35.2   104.9    95.3
                                                      ------ ------ ------ ------ ------ ------- -------
   Total ...............................                96.8  200.9  232.2  272.3  280.1   784.6   472.5
                                                      ------ ------ ------ ------ ------ ------- -------

Cathode (kt)
   Escondida /(3)/......................     57.5%      27.2   62.8   71.9   76.1   69.4   217.4   169.2
   Pampa Norte /(4)/....................      100%      66.1   72.3   58.0   68.4   66.8   193.2   182.0
   Olympic Dam..........................      100%      36.8   51.4   42.0   12.2   40.5    94.7   114.9
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................               130.1  186.5  171.9  156.7  176.7   505.3   466.1
                                                      ------ ------ ------ ------ ------ ------- -------
                                                      ------ ------ ------ ------ ------ ------- -------
Total copper (kt).......................               226.9  387.4  404.1  429.0  456.8 1,289.9   938.6
                                                      ------ ------ ------ ------ ------ ------- -------

Lead
Payable metal in concentrate (t)
   Antamina.............................     33.8%     1,308  1,799  1,415  1,009    464   2,888   3,674
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................               1,308  1,799  1,415  1,009    464   2,888   3,674
                                                      ------ ------ ------ ------ ------ ------- -------

Zinc
Payable metal in concentrate (t)
   Antamina.............................     33.8%    20,653 29,076 29,201 29,054 25,562  83,817  58,426
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................              20,653 29,076 29,201 29,054 25,562  83,817  58,426
                                                      ------ ------ ------ ------ ------ ------- -------

Gold
Payable metal in concentrate (troy oz)
   Escondida /(3)/......................     57.5%    11,572 33,941 50,525 50,279 59,953 160,757  76,917
   Olympic Dam (refined gold)...........      100%    21,941 28,188 13,101 15,969 28,989  58,059  75,958
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................              33,513 62,129 63,626 66,248 88,942 218,816 152,875
                                                      ------ ------ ------ ------ ------ ------- -------

Silver
Payable metal in concentrate (troy koz)
   Escondida /(3)/......................     57.5%       540  1,234  1,737  2,193  2,339   6,269   3,092
   Antamina.............................     33.8%     1,301  1,691  1,596  1,331  1,189   4,116   4,092
   Olympic Dam (refined silver).........      100%       174    243    131    135    248     514     525
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................               2,015  3,168  3,464  3,659  3,776  10,899   7,709
                                                      ------ ------ ------ ------ ------ ------- -------

Uranium
Payable metal in concentrate (t)
   Olympic Dam..........................      100%       948    737    880    243  1,118   2,241   2,924
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................                 948    737    880    243  1,118   2,241   2,924
                                                      ------ ------ ------ ------ ------ ------- -------

Molybdenum
Payable metal in concentrate (t)
   Antamina.............................     33.8%        30    328    402    579    420   1,401     816
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................                  30    328    402    579    420   1,401     816
                                                      ------ ------ ------ ------ ------ ------- -------

--------------------------------------------------------------------------------
                   BHP Operational Review for             10
                   the nine months ended 31 March 2018

Production summary

                                                                Quarter ended             Year to date
                                                      ---------------------------------- ---------------
                                                       Mar    Jun    Sep    Dec    Mar    Mar     Mar
                                              BHP      2017   2017   2017   2017   2018   2018    2017
                                           interest   ------ ------ ------ ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
   Newman...............................       85%    16,283 16,241 13,842 18,317 16,412  48,571  52,042
   Area C Joint Venture.................       85%    11,165 13,016 13,099 13,575 12,802  39,476  35,728
   Yandi Joint Venture..................       85%    14,656 17,415 14,559 16,348 15,802  46,709  47,940
   Jimblebar /(6)/......................       85%     4,824  5,891  6,283  4,583  4,669  15,535  16,059
   Wheelarra............................       85%     6,647  7,578  7,804  8,734  8,006  24,544  19,442
   Samarco..............................       50%       --      --     --     --     --      --      --
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................              53,575 60,141 55,587 61,557 57,691 174,835 171,211
                                                      ------ ------ ------ ------ ------ ------- -------

Coal
Metallurgical coal
Production (kt) /(7)/
   BMA..................................       50%     7,996  6,394  8,296  7,394  7,983  23,673  25,064
   BHP Mitsui Coal /(8)/................       80%     2,138  2,100  2,271  2,291  2,396   6,958   6,212
   Haju /(9)/...........................       75%        --     --     --     --     --      --     129
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................              10,134  8,494 10,567  9,685 10,379  30,631  31,405
                                                      ------ ------ ------ ------ ------ ------- -------

Energy coal
Production (kt)
   USA..................................      100%        --     --     --     --     --      --     451
   Australia............................      100%     4,662  5,711  4,235  4,383  3,662  12,280  12,465
   Colombia.............................     33.3%     2,756  2,475  2,497  2,914  2,444   7,855   8,484
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................               7,418  8,186  6,732  7,297  6,106  20,135  21,400
                                                      ------ ------ ------ ------ ------ ------- -------

Other
Nickel
Saleable production (kt)
   Nickel West..........................      100%      19.0   25.2   22.8   22.4   20.4    65.6    59.9
                                                      ------ ------ ------ ------ ------ ------- -------
   Total................................                19.0   25.2   22.8   22.4   20.4    65.6    59.9
                                                      ------ ------ ------ ------ ------ ------- -------

(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 nine months ended 31 March 2018

Production and sales report

                                                                     Quarter ended            Year to date
                                                          ---------------------------------- ---------------
                                                           Mar    Jun    Sep    Dec    Mar    Mar     Mar
                                                           2017   2017   2017   2017   2018   2018    2017
                                                          ------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/

Bass Strait
   Crude oil and condensate.................. (Mboe)       1,355  1,552  1,815  1,513  1,126   4,454   5,047
   NGL....................................... (Mboe)       1,236  1,661  1,950  1,584  1,170   4,704   4,798
   Natural gas............................... (bcf)         28.7   37.4   42.6   32.9   20.5    96.0   101.9
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        7.4    9.4   10.9    8.6    5.7    25.2    26.8
                                                          ------ ------ ------ ------ ------ ------- -------

North West Shelf
   Crude oil and condensate.................. (Mboe)       1,239  1,314  1,474  1,442  1,377   4,293   4,193
   NGL....................................... (Mboe)         200    209    227    200    210     637     755
   Natural gas............................... (bcf)         32.2   32.5   36.2   36.2   35.8   108.2   107.8
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        6.8    6.9    7.7    7.7    7.6    23.0    22.9
                                                          ------ ------ ------ ------ ------ ------- -------

Pyrenees
   Crude oil and condensate.................. (Mboe)       1,509  1,606  1,510  1,210  1,250   3,970   4,911
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        1.5    1.6    1.5    1.2    1.3     4.0     4.9
                                                          ------ ------ ------ ------ ------ ------- -------

Other Australia /(2)/
   Crude oil and condensate.................. (Mboe)           8      9      9      8      8      25      26
   Natural gas .............................. (bcf)         15.2   16.3   16.1   13.3   13.4    42.8    49.8
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        2.5    2.7    2.7    2.2    2.2     7.2     8.3
                                                          ------ ------ ------ ------ ------ ------- -------

Atlantis /(3)/
   Crude oil and condensate.................. (Mboe)       3,881  3,637  3,022  3,377  3,459   9,858  10,198
   NGL ...................................... (Mboe)         295    213    218    195    248     661     710
   Natural gas .............................. (bcf)          2.1    1.9    1.6    1.8    1.8     5.2     5.2
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        4.5    4.2    3.5    3.9    4.0    11.4    11.8
                                                          ------ ------ ------ ------ ------ ------- -------

Mad Dog /(3)/
   Crude oil and condensate.................. (Mboe)       1,185  1,167  1,020  1,231  1,140   3,391   3,305
   NGL....................................... (Mboe)          59     68     44     72     55     171     147
   Natural gas............................... (bcf)          0.2    0.2    0.1    0.2    0.2     0.5     0.5
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        1.3    1.3    1.1    1.3    1.2     3.6     3.5
                                                          ------ ------ ------ ------ ------ ------- -------

Shenzi /(3)/
   Crude oil and condensate.................. (Mboe)       2,675  2,588  2,291  2,513  2,323   7,127   7,999
   NGL....................................... (Mboe)         161    179    141    184    140     465     386
   Natural gas............................... (bcf)          0.5    0.6    0.4    0.5    0.4     1.3     1.5
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        2.9    2.9    2.5    2.8    2.5     7.8     8.6
                                                          ------ ------ ------ ------ ------ ------- -------

Eagle Ford /(4)/
   Crude oil and condensate.................. (Mboe)       5,451  4,278  3,457  3,720  2,838  10,015  13,330
   NGL....................................... (Mboe)       2,354  2,240  1,856  2,100  1,555   5,511   6,781
   Natural gas............................... (bcf)         17.0   15.1   13.8   14.4   12.6    40.8    48.7
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)       10.6    9.0    7.6    8.2    6.5    22.3    28.2
                                                          ------ ------ ------ ------ ------ ------- -------

Permian /(4)/
   Crude oil and condensate.................. (Mboe)       1,202  1,336  1,179  1,142  1,398   3,719   3,995
   NGL....................................... (Mboe)         428    646    587    460    465   1,512   1,742
   Natural gas............................... (bcf)          4.0    6.2    4.5    3.6    4.1    12.2    12.8
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        2.3    3.0    2.5    2.2    2.5     7.3     7.9
                                                          ------ ------ ------ ------ ------ ------- -------

Haynesville /(4)/
   Crude oil and condensate.................. (Mboe)           1      1     --      1     --       1       4
   NGL....................................... (Mboe)           3     --     --     --     --      --      18
   Natural gas............................... (bcf)         22.0   21.4   21.5   22.0   28.7    72.2    74.2
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        3.7    3.6    3.6    3.7    4.8    12.0    12.4
                                                          ------ ------ ------ ------ ------ ------- -------

Fayetteville /(4)/
   Natural gas............................... (bcf)         23.1   24.5   21.6   20.5   18.7    60.8    72.1
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        3.9    4.1    3.6    3.4    3.1    10.1    12.0
                                                          ------ ------ ------ ------ ------ ------- -------

--------------------------------------------------------------------------------
                   BHP Operational Review for             12
                   the nine months ended 31 March 2018

Production and sales report

                                                                     Quarter ended            Year to date
                                                          ---------------------------------- ---------------
                                                           Mar    Jun    Sep    Dec    Mar    Mar     Mar
                                                           2017   2017   2017   2017   2018   2018    2017
                                                          ------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/ (continued)
Trinidad/Tobago
   Crude oil and condensate.................. (Mboe)         127    139    118    135    232     485     423
   Natural gas............................... (bcf)          8.4    9.4    9.7   10.5   10.0    30.2    23.2
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        1.5    1.7    1.7    1.9    1.9     5.5     4.3
                                                          ------ ------ ------ ------ ------ ------- -------

Other Americas /(3)//(5)/
   Crude oil and condensate.................. (Mboe)         257    238    229    207    189     625     801
   NGL....................................... (Mboe)           6     10      5      3      3      11      12
   Natural gas .............................. (bcf)          0.1    0.1    0.1    0.1     --     0.2     0.3
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        0.3    0.3    0.3    0.2    0.2     0.7     0.9
                                                          ------ ------ ------ ------ ------ ------- -------

UK
   Crude oil and condensate.................. (Mboe)          72     64     40     22     43     105     204
   NGL....................................... (Mboe)          32     16     39     13     18      70     103
   Natural gas............................... (bcf)          1.0    1.1    0.5    0.6    0.8     1.9     3.1
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        0.3    0.3    0.2    0.1    0.2     0.5     0.8
                                                          ------ ------ ------ ------ ------ ------- -------

Algeria
   Crude oil and condensate.................. (Mboe)       1,072    942    938    960    969   2,867   3,078
                                                          ------ ------ ------ ------ ------ ------- -------
   Total petroleum products.................. (MMboe)        1.1    0.9    0.9    1.0    1.0     2.9     3.1
                                                          ------ ------ ------ ------ ------ ------- -------

BHP Petroleum
   Crude oil and condensate
   Onshore US................................ (Mboe)       6,654  5,615  4,636  4,863  4,236  13,735  17,329
   Conventional.............................. (Mboe)      13,380 13,256 12,466 12,618 12,116  37,200  40,185
                                                          ------ ------ ------ ------ ------ ------- -------
   Total..................................... (Mboe)      20,034 18,871 17,102 17,481 16,352  50,935  57,514
                                                          ------ ------ ------ ------ ------ ------- -------

   NGL
   Onshore US................................ (Mboe)       2,785  2,886  2,443  2,560  2,020   7,023   8,541
   Conventional.............................. (Mboe)       1,989  2,356  2,624  2,251  1,844   6,719   6,911
                                                          ------ ------ ------ ------ ------ ------- -------
   Total..................................... (Mboe)       4,774  5,242  5,067  4,811  3,864  13,742  15,452
                                                          ------ ------ ------ ------ ------ ------- -------

   Natural gas
   Onshore US................................ (bcf)         66.1   67.2   61.4   60.5   64.1   186.0   207.8
   Conventional.............................. (bcf)         88.4   99.5  107.3   96.1   82.9   286.3   293.3
                                                          ------ ------ ------ ------ ------ ------- -------
   Total .................................... (bcf)        154.5  166.7  168.7  156.6  147.0   472.3   501.1
                                                          ------ ------ ------ ------ ------ ------- -------

   Total petroleum products
   Onshore US................................ (Mboe)      20,456 19,701 17,312 17,506 16,939  51,758  60,503
   Conventional.............................. (Mboe)      30,102 32,195 32,973 30,886 27,777  91,636  95,979
                                                          ------ ------ ------ ------ ------ ------- -------
   Total..................................... (Mboe)      50,558 51,896 50,286 48,392 44,716 143,394 156,483
                                                          ------ ------ ------ ------ ------ ------- -------

(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.

Copper
Metals production is payable metal unless otherwise stated.

Escondida, Chile /(1)/
   Material mined............................ (kt)          26,045   93,389  104,867  101,371  103,385  309,623  223,412
   Sulphide ore milled....................... (kt)           8,054   18,777   24,080   30,260   32,203   86,543   48,707
   Average copper grade...................... (%)             1.01%    1.07%    1.06%    0.98%    0.96%    0.99%    0.95%
   Production ex mill........................ (kt)            68.7    167.0    204.2    245.7    252.6    702.5    390.5

--------------------------------------------------------------------------------
                   BHP Operational Review for             13
                   the nine months ended 31 March 2018

Production and sales report

                                                                          Quarter ended                  Year to date
                                                          -------------------------------------------- -----------------
                                                            Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                            2017     2017     2017     2017     2018     2018     2017
                                                          -------- -------- -------- -------- -------- -------- --------
   Production
   Payable copper............................ (kt)            67.6    162.4    196.3    238.5    244.9    679.7    377.2
   Copper cathode (EW)....................... (kt)            27.2     62.8     71.9     76.1     69.4    217.4    169.2
    - Oxide leach............................ (kt)             8.9     20.3     22.4     27.4     24.5     74.3     60.1
    - Sulphide leach......................... (kt)            18.3     42.5     49.5     48.7     44.9    143.1    109.1
                                                          -------- -------- -------- -------- -------- -------- --------
   Total copper.............................. (kt)            94.8    225.2    268.2    314.6    314.3    897.1    546.4
                                                          -------- -------- -------- -------- -------- -------- --------

   Payable gold concentrate.................. (troy oz)     11,572   33,941   50,525   50,279   59,953  160,757   76,917
   Payable silver concentrate................ (troy koz)       540    1,234    1,737    2,193    2,339    6,269    3,092

   Sales
   Payable copper............................ (kt)            63.7    163.3    195.1    236.7    228.3    660.1    371.3
   Copper cathode (EW)....................... (kt)            39.4     56.0     61.6     84.1     61.7    207.4    176.8
   Payable gold concentrate.................. (troy oz)     11,572   33,941   50,525   50,279   59,953  160,757   76,917
   Payable silver concentrate................ (troy koz)       540    1,234    1,737    2,193    2,339    6,269    3,092

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

Pampa Norte, Chile
   Cerro Colorado
   Material mined............................ (kt)          15,178   15,760   21,381   20,191   17,766   59,338   42,475
   Ore milled................................ (kt)           4,179    4,411    3,951    4,611    4,905   13,467   10,762
   Average copper grade...................... (%)             0.57%    0.53%    0.62%    0.59%    0.58%    0.60%    0.63%

   Production
   Copper cathode (EW)....................... (kt)            16.7     18.8     13.3     17.4     13.6     44.3     45.9

   Sales
   Copper cathode (EW)....................... (kt)            15.6     19.8     12.3     17.7     13.7     43.7     45.7

   Spence
   Material mined............................ (kt)          22,939   24,230   22,314   23,096   21,463   66,873   69,212
   Ore milled................................ (kt)           5,225    4,968    5,375    4,919    5,144   15,438   15,125
   Average copper grade...................... (%)             1.09%    1.13%    1.21%    1.18%    1.03%    1.14%    1.15%

   Production
   Copper cathode (EW)....................... (kt)            49.4     53.5     44.7     51.0     53.2    148.9    136.1

   Sales
   Copper cathode (EW)....................... (kt)            49.0     55.7     43.0     52.2     49.8    145.0    131.7

--------------------------------------------------------------------------------
                   BHP Operational Review for             14
                   the nine months ended 31 March 2018

Production and sales report

                                                                          Quarter ended                  Year to date
                                                          -------------------------------------------- -----------------
                                                            Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                            2017     2017     2017     2017     2018     2018     2017
                                                          -------- -------- -------- -------- -------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.

Antamina, Peru
   Material mined (100%)..................... (kt)          55,771   62,254   59,216   59,125   58,085  176,426  182,237
   Sulphide ore milled (100%)................ (kt)          11,955   13,229   12,822   13,098   12,166   38,086   38,876
   Average head grades
    - Copper................................. (%)             0.88%    1.00%    0.94%    0.89%    1.01%    0.95%    0.85%
    - Zinc................................... (%)             0.84%    0.95%    0.99%    0.93%    1.01%    0.98%    0.75%

   Production
   Payable copper............................ (kt)            29.2     38.5     35.9     33.8     35.2    104.9     95.3
   Payable zinc.............................. (t)           20,653   29,076   29,201   29,054   25,562   83,817   58,426
   Payable silver............................ (troy koz)     1,301    1,691    1,596    1,331    1,189    4,116    4,092
   Payable lead.............................. (t)            1,308    1,799    1,415    1,009      464    2,888    3,674
   Payable molybdenum........................ (t)               30      328      402      579      420    1,401      816

   Sales
   Payable copper............................ (kt)            30.2     36.9     31.9     37.0     32.1    101.0     96.0
   Payable zinc.............................. (t)           23,669   27,936   25,224   30,340   26,456   82,020   62,046
   Payable silver............................ (troy koz)     1,304    1,513    1,475    1,470    1,052    3,997    3,969
   Payable lead.............................. (t)            1,475    1,493    1,624      972      859    3,455    3,342
   Payable molybdenum........................ (t)               --       --      168      693      500    1,361    1,124

Olympic Dam, Australia
   Material mined /(1)/...................... (kt)           1,943    1,974    1,851    1,391    2,056    5,298    6,034
   Ore milled................................ (kt)           2,112    2,097    2,302      554    2,188    5,044    6,507
   Average copper grade...................... (%)             2.07%    2.30%    2.10%    2.22%    2.36%    2.23%    2.01%
   Average uranium grade..................... (kg/t)          0.61     0.58     0.55     0.58     0.71     0.62     0.63

   Production
   Copper cathode (ER and EW)................ (kt)            36.8     51.4     42.0     12.2     40.5     94.7    114.9
   Uranium oxide concentrate................. (t)              948      737      880      243    1,118    2,241    2,924
   Refined gold.............................. (troy oz)     21,941   28,188   13,101   15,969   28,989   58,059   75,958
   Refined silver............................ (troy koz)       174      243      131      135      248      514      525

   Sales
   Copper cathode (ER and EW)................ (kt)            33.5     51.5     31.6     24.3     36.8     92.7    112.2
   Uranium oxide concentrate................. (t)              839    1,298      680      338      509    1,527    2,807
   Refined gold.............................. (troy oz)     22,333   24,726   22,435   17,999   20,715   61,149   72,468
   Refined silver............................ (troy koz)       108      251      219      118      202      539      495

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

--------------------------------------------------------------------------------
                   BHP Operational Review for             15
                   the nine months ended 31 March 2018

Production and sales report

                                                                          Quarter ended                  Year to date
                                                          -------------------------------------------- -----------------
                                                            Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                            2017     2017     2017     2017     2018     2018     2017
                                                          -------- -------- -------- -------- -------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.

Pilbara, Australia
   Production
   Newman.................................... (kt)          16,283   16,241   13,842   18,317   16,412   48,571   52,042
   Area C Joint Venture...................... (kt)          11,165   13,016   13,099   13,575   12,802   39,476   35,728
   Yandi Joint Venture....................... (kt)          14,656   17,415   14,559   16,348   15,802   46,709   47,940
   Jimblebar /(1)/........................... (kt)           4,824    5,891    6,283    4,583    4,669   15,535   16,059
   Wheelarra................................. (kt)           6,647    7,578    7,804    8,734    8,006   24,544   19,442
                                                          -------- -------- -------- -------- -------- -------- --------
   Total production.......................... (kt)          53,575   60,141   55,587   61,557   57,691  174,835  171,211
                                                          -------- -------- -------- -------- -------- -------- --------
   Total production (100%)................... (kt)          62,177   69,714   64,287   71,611   67,048  202,946  198,588
                                                          -------- -------- -------- -------- -------- -------- --------
   Sales
   Lump...................................... (kt)          12,804   15,104   13,896   15,145   13,993   43,034   41,087
   Fines..................................... (kt)          41,043   46,249   40,733   45,769   44,332  130,834  128,768
                                                          -------- -------- -------- -------- -------- -------- --------
   Total..................................... (kt)          53,847   61,353   54,629   60,914   58,325  173,868  169,855
                                                          -------- -------- -------- -------- -------- -------- --------
   Total sales (100%)........................ (kt)          62,513   71,149   63,322   70,733   67,799  201,854  197,077
                                                          -------- -------- -------- -------- -------- -------- --------

(1) Shown on a 100% basis. BHP interest in saleable production is 85%.

Samarco, Brazil /(1)/
   Production................................ (kt)              --       --       --       --       --       --       --
   Sales..................................... (kt)              35       --       --       14       25       39       47

(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 nine months ended 31 March 2018

Production and sales report

                                                                          Quarter ended                  Year to date
                                                          -------------------------------------------- -----------------
                                                            Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                            2017     2017     2017     2017     2018     2018     2017
                                                          -------- -------- -------- -------- -------- -------- --------
Coal
Coal production is reported on the basis of saleable product.

Queensland Coal
   Production /(1)/
   BMA
   Blackwater................................ (kt)           1,694    1,766    1,985    1,470    1,384    4,839    5,530
   Goonyella................................. (kt)           1,871    1,157    1,639    1,369    2,314    5,322    6,198
   Peak Downs................................ (kt)           1,582    1,238    1,602    1,367    1,723    4,692    4,817
   Saraji.................................... (kt)           1,276      913    1,414    1,198    1,240    3,852    3,821
   Daunia.................................... (kt)             674      560      662      718      547    1,927    2,000
   Caval Ridge............................... (kt)             899      760      994    1,272      775    3,041    2,698
                                                          -------- -------- -------- -------- -------- -------- --------
   Total BMA................................. (kt)           7,996    6,394    8,296    7,394    7,983   23,673   25,064
                                                          -------- -------- -------- -------- -------- -------- --------

   BHP Mitsui Coal /(2)/
   South Walker Creek........................ (kt)           1,354    1,348    1,400    1,524    1,490    4,414    3,775
   Poitrel................................... (kt)             784      752      871      767      906    2,544    2,437
                                                          -------- -------- -------- -------- -------- -------- --------
   Total BHP Mitsui Coal..................... (kt)           2,138    2,100    2,271    2,291    2,396    6,958    6,212
                                                          -------- -------- -------- -------- -------- -------- --------
   Total Queensland Coal..................... (kt)          10,134    8,494   10,567    9,685   10,379   30,631   31,276
                                                          -------- -------- -------- -------- -------- -------- --------

   Sales
   Coking coal............................... (kt)           7,133    5,496    7,934    6,341    7,177   21,452   22,031
   Weak coking coal.......................... (kt)           2,761    2,502    3,150    2,816    2,598    8,564    8,219
   Thermal coal.............................. (kt)              96      142      102      173      168      443      456
                                                          -------- -------- -------- -------- -------- -------- --------
   Total..................................... (kt)           9,990    8,140   11,186    9,330    9,943   30,459   30,706
                                                          -------- -------- -------- -------- -------- -------- --------

(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.

Haju, Indonesia /(1)/
   Production................................ (kt)              --       --       --       --       --       --      129

   Sales - export............................ (kt)              --       --       --       --       --       --      117

(1) Shown on 100% basis. BHP interest in saleable production is 75%. BHP
    completed the sale of IndoMet Coal on 14 October 2016.

New Mexico, USA
   Production

   Navajo Coal /(1)/......................... (kt)              --       --       --       --       --       --      451
                                                          -------- -------- -------- -------- -------- -------- --------
   Total..................................... (kt)              --       --       --       --       --       --      451
                                                          -------- -------- -------- -------- -------- -------- --------
   Sales thermal coal - local utility                           --       --       --       --       --       --      105

(1) The divestment of Navajo Coal was completed on 29 July 2016, with no further
    production reported by BHP. Management of Navajo Coal was transferred to
    Navajo Transitional Energy Company on 31 December 2016.

NSW Energy Coal, Australia
   Production................................ (kt)           4,662    5,711    4,235    4,383    3,662   12,280   12,465

   Sales
   Export thermal coal....................... (kt)           4,407    4,913    3,622    4,048    3,181   10,851   11,586
   Inland thermal coal....................... (kt)             431      327      405      411      400    1,216    1,073
                                                          -------- -------- -------- -------- -------- -------- --------
   Total..................................... (kt)           4,838    5,240    4,027    4,459    3,581   12,067   12,659
                                                          -------- -------- -------- -------- -------- -------- --------

Cerrejon, Colombia
   Production................................ (kt)           2,756    2,475    2,497    2,914    2,444    7,855    8,484

   Sales thermal coal - export............... (kt)           2,613    2,803    2,518    2,619    2,480    7,617    8,240

--------------------------------------------------------------------------------
                   BHP Operational Review for             17
                   the nine months ended 31 March 2018

Production and sales report

                                                                          Quarter ended                  Year to date
                                                          -------------------------------------------- -----------------
                                                            Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                            2017     2017     2017     2017     2018     2018     2017
                                                          -------- -------- -------- -------- -------- -------- --------
Other
Nickel production is reported on the basis of saleable product

Nickel West, Australia
Production
Nickel contained in concentrate.............. (kt)             0.2       --       --       --       --       --      0.7
Nickel contained in finished matte........... (kt)             2.3      5.3      6.8      4.6      1.2     12.6      8.2
Nickel metal................................. (kt)            16.5     19.9     16.0     17.8     19.2     53.0     51.0
                                                          -------- -------- -------- -------- -------- -------- --------
Total nickel production...................... (kt)            19.0     25.2     22.8     22.4     20.4     65.6     59.9
                                                          -------- -------- -------- -------- -------- -------- --------

Sales
Nickel contained in concentrate.............. (kt)             0.2       --       --       --       --       --      0.7
Nickel contained in finished matte........... (kt)             2.2      4.9      4.6      6.4      2.1     13.1      8.1
Nickel metal................................. (kt)            17.1     18.1     16.6     17.9     19.7     54.2     51.2
                                                          -------- -------- -------- -------- -------- -------- --------
Total nickel sales........................... (kt)            19.5     23.0     21.2     24.3     21.8     67.3     60.0
                                                          -------- -------- -------- -------- -------- -------- --------

--------------------------------------------------------------------------------
                   BHP Operational Review for             18
                   the nine months ended 31 March 2018
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