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BHP BILLITON PLC - Operational Review for the Quarter Ended 30 September 2018

Release Date: 17/10/2018 07:05
Code(s): BIL     PDF:  
Wrap Text
Operational Review for the Quarter Ended 30 September 2018

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




 NEWS RELEASE                             LOGO

Release Time      IMMEDIATE

Date              17 October 2018

Release Number    19/18


                            BHP OPERATIONAL REVIEW
                    FOR THE QUARTER ENDED 30 SEPTEMBER 2018

.    Group copper equivalent production increased by 2% in the September 2018
     quarter despite maintenance across a number of operations. Volumes for the
     2019 financial year are expected to be broadly in line with last
     year/(1)/.

.    Full year production guidance remains unchanged for petroleum, iron ore,
     metallurgical coal and energy coal. Total copper production guidance
     reduced by approximately 3% to between 1,620 and 1,705 kt reflecting lower
     volumes now expected at Spence (electro-winning plant outage) and Olympic
     Dam (acid plant outage).

.    Unit cost guidance/(2)/ maintained for all major assets for the 2019 financial
     year.

.    All major projects under development are tracking to plan.

.    In Petroleum, the Victoria-1 and Bongos-2 exploration wells in Trinidad
     and Tobago, and theSamurai-2 well in the US Gulf of Mexico, encountered
     hydrocarbons. A sidetrack of the Samurai-2 well is currently being
     drilling to further appraise the discovery.

.    Onshore US sale process is on track to be completed by the end of October
     2018, with the Fayetteville transaction completed on 29 September 2018.
     The net proceeds from the sale of our Onshore US assets are expected to be
     returned to shareholders.

Production                       Sep Q18 vs Sep Q17 Sep Q18 commentary
----------                       ------- ---------- -------------------------
Petroleum (MMboe).............     33       (1%)    Higher natural gas volumes at Trinidad and Tobago offset by natural field
                                                    decline and planned maintenance at Pyrenees.
Copper (kt)...................    409        1%     Higher volumes at Escondida supported by the utilisation of the three
                                                    concentrators, offset by the impact of planned maintenance and a fire at
                                                    Spence, and an acid plant outage at Olympic Dam.
Iron ore (Mt).................     61       10%     Higher volumes at WAIO supported by record quarterly production at Jimblebar
                                                    and improved reliability across our rail network and port operations.
Metallurgical coal (Mt).......     10       (2%)    Record stripping and truck performance at BMA offset by the impact of planned
                                                    maintenance across both port and mine operations.
Energy coal (Mt)..............      7       (1%)    Improved stripping fleet performance at New South Wales Energy Coal offset by
                                                    lower bypass coal and a higher average strip ratio.

BHP Chief Executive Officer, Andrew Mackenzie, said: "We delivered a two per
cent increase in copper equivalent production despite maintenance at a number
of our operations. We are on track to meet guidance for the 2019 financial year
across our commodities, except copper where we have reduced production guidance
slightly following outages at Olympic Dam in Australia and Spence in Chile. In
petroleum, we have extended our exploration success and encountered
hydrocarbons in three wells. The Onshore US sale process is progressing to plan
and is expected to be completed by the end of October 2018."

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                   BHP Operational Review for              1
                   the quarter ended 30 September 2018

Summary

Operational performance

Production for the September 2018 quarter and guidance for the 2019 financial
year are summarised in the table below.

                                                 Sep Q18 Sep Q18     Previous        Current
                                                      vs      vs         FY19           FY19
Production                               Sep Q18 Sep Q17 Jun Q18     guidance       guidance
----------                               ------- ------- -------  -------------  ---------------
Continuing operations                                                         
Petroleum - Conventional (MMboe)........      33    (1%)    15%       113 - 118        113 - 118                      Unchanged
Copper (kt).............................     409     1%    (12%)  1,675 - 1,770    1,620 - 1,705                        Reduced
  Escondida (kt)........................     295    10%     (7%)  1,120 - 1,180    1,120 - 1,180                      Unchanged
  Other copper/(i)/ (kt)................     114   (16%)   (23%)      555 - 590        500 - 525  Olympic Dam now 170 - 180 kt;
                                                                                                        previously 200 - 220 kt
                                                                                                       Spence now 160 - 175 kt;
                                                                                                        previously 185 - 200 kt
Iron ore (Mt)...........................      61    10%     (3%)      241 - 250        241 - 250                      Unchanged
  WAIO (100% basis) (Mt)................      69     8%     (4%)      273 - 283        273 - 283                      Unchanged
Metallurgical coal (Mt).................      10    (2%)   (14%)        43 - 46          43 - 46                      Unchanged
Energy coal (Mt)........................       7    (1%)   (26%)        28 - 29          28 - 29                      Unchanged
Discontinued operations                                                        
Petroleum - Onshore US (MMboe)..........      20    16%     (2%)     Refer footnote /(ii)/
                                         
(i)  Other copper comprises Pampa Norte (including Cerro Colorado production
     for the first half of the 2019 financial year), Olympic Dam and Antamina.

(ii) Given our announcement to exit Onshore US, no annual guidance for the 2019
     financial year for these assets will be provided; however, until sale
     completion, we expect a production run rate broadly consistent with the
     second half of the 2018 financial year.

Major development projects

At the end of the September 2018 quarter, BHP had five major projects under
development in petroleum, copper, iron ore and potash, with a combined budget
of US$10.6 billion over the life of the projects.

Corporate update

On 18 September 2018, BHP released its Economic Contribution Report which shows
the Group's direct economic contribution globally in the 2018 financial year
was US$33.9 billion. This includes US$7.8 billion in taxes, royalties and other
payments to governments. BHP's adjusted effective tax rate in the 2018
financial year was 31.4 per cent. When royalties are included, the rate was
39.9 per cent.

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                   BHP Operational Review for              2
                   the quarter ended 30 September 2018

Petroleum

Production

                                                                            Sep Q18  Sep Q18
                                                                                 vs       vs
                                                                    Sep Q18 Sep Q17  Jun Q18
                                                                    ------- -------  -------
Crude oil, condensate and natural gas liquids (MMboe).............      14     (7%)       4%
Natural gas (bcf).................................................     112      5%       24%
                                                                    ------- -------  -------
Total petroleum production (MMboe)................................      33     (1%)      15%
                                                                    ------- -------  -------
                                                         
Petroleum - Total Conventional petroleum production was broadly flat at
33 MMboe. Guidance for the 2019 financial year remains unchanged at between 113
and 118 MMboe.

Crude oil, condensate and natural gas liquids production declined by seven per
cent to 14 MMboe due to natural field decline across the portfolio and a 70 day
planned dry dock maintenance at Pyrenees, which was completed on schedule and
budget in September 2018. This decline was partially offset by higher uptimes
at our Gulf of Mexico assets.

Natural gas production increased by five per cent to 112 bcf, reflecting
increased tax barrels at Trinidad and Tobago in accordance with the terms of
our Production Sharing Contract. This was partially offset by natural field
decline across the portfolio.

Projects

                            Capital     Initial
Project and               expenditure production
ownership                   (US$m)     target date               Capacity                               Progress
---------------------     ----------- ----------- -------------------------------------  -------------------------------------
North West Shelf Greater       216       CY19     To maintain LNG plant throughput from  Ahead of schedule and budget. The
Western Flank-B                                   the North West Shelf operations.       overall project is 95% 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 31% complete.
23.9% (non-operator)                              gross barrels of crude oil per day.

Study work continues on the Atlantis Phase 3, Ruby and West Barracouta projects
and they remain on track.

Petroleum exploration

Exploration and appraisal wells drilled during the September 2018 quarter are
summarised below.

                                           Formation                                                 Total well 
Well          Location             Target  age            BHP equity      Spud date      Water depth    depth          Status
----          -------------------- ------  -------------  ---------- ------------------ -----------  ----------  ------------------
Samurai-2     US Gulf of Mexico     Oil    Miocene           50%       16 April 2018      1,088 m      9,777 m   Hydrocarbons 
              GC432                                        (Murphy                                               encountered;
                                                          Operator)                                              plugged and
                                                                                                                 abandoned
Samurai-2     US Gulf of Mexico     Oil    Drilling          50%      25 August 2018      1,088 m      9,178 m   Drilling ahead
ST01          GC476                        ahead           (Murphy                     
                                                          Operator)                    
Victoria-1    Trinidad &            Gas    Pleistocene/      65%       12 June 2018       1,828 m      3,282 m   Hydrocarbons
              Tobago Block TTDAA 5         Pliocene         (BHP                                                 encountered; 
                                                          Operator)                                              plugged and
                                                                                                                 abandoned
Bongos-1      Trinidad &            Gas    Pliocene/         70%       20 July 2018       1,909 m      2,469 m   Plugged and
              Tobago Block TTDAA 14        Miocene          (BHP                                                 abandoned due to 
                                                          Operator)                                              mechanical failure
Bongos-2      Trinidad &            Gas    Pliocene/         70%       22 July 2018       1,910 m      5,151 m   Hydrocarbons
              Tobago Block TTDAA 14        Miocene          (BHP                                                 encountered;
                                                          Operator)                                              plugged and 
                                                                                                                 abandoned
Concepcion-1  Trinidad &            Gas    Drilling          65%     30 September 2018    1,721 m      1,817 m   Drilling ahead
              Tobago Block TTDAA 5          ahead            (BHP                      
                                                          Operator)

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                   BHP Operational Review for              3
                   the quarter ended 30 September 2018

In the US Gulf of Mexico, the Samurai-2 exploration well encountered hydrocarbons 
in multiple horizons not previously observed by the Wildling-2 exploration well and
was plugged and abandoned on 23 August 2018. A sidetrack of the Samurai-2 well
commenced on 25 August 2018 to further appraise the discovery and is currently
drilling ahead. In the Western US Gulf of Mexico, we commenced the acquisition
of an Ocean Bottom Node seismic survey.

In Trinidad and Tobago, we continued with Phase 2 of our deepwater exploration
drilling campaign. The Victoria-1 exploration well, which further assessed the
commercial potential of the Magellan play in our Southern licence area in
Trinidad and Tobago, encountered gas and was plugged and abandoned on 18 July 2018.
Following the Victoria-1 well, the Bongos-1 exploration well was
spud on 20 July 2018 and experienced mechanical difficulty shortly after spud.
The Bongos-2 exploration well was spud on 22 July 2018 and encountered
hydrocarbons. The Bongos-2 and Bongos-1 wells were plugged and abandoned on
23 September 2018 and 26 September 2018 respectively. Following the Bongos-2
well, the Concepcion-1 well was spud on 30 September 2018 to further test the
Magellan play and is currently drilling ahead.

In Mexico, we expect to begin drilling the first appraisal well at Trion in the
December 2018 quarter. In Australia, the final processed data of the Exmouth
sub-basin 3D seismic data has been received.

A US$750 million exploration and appraisal program is being executed for the
2019 financial year. Petroleum exploration expenditure for the September 2018
quarter was US$133 million, of which US$55 million was expensed.

Onshore US - Discontinued operations

Following BHP's sale of the Onshore US assets, as announced on 27 July 2018,
these assets have been presented as discontinued operations. The effective date
at which the right to economic profits transfers to the purchasers is 1 July
2018.

Onshore US production for the September 2018 quarter increased by 16 per cent
to 20 MMboe as a result of additional wells put online in Haynesville, Permian
and Eagle Ford. Drilling and development expenditure for the September 2018
quarter was US$299 million. Our operated rig count remained unchanged at five,
with two rigs at Eagle Ford, two rigs at Permian and one at Haynesville. No
annual guidance for the 2019 financial year for these assets will be provided;
however until sale completion, we expect a production run rate broadly
consistent with the second half of the 2018 financial year.

On 29 September 2018, BHP announced the completion of the sale of its
Fayetteville Onshore US gas assets to a wholly owned subsidiary of Merit Energy
Company. Completion of the sale of BHP's interests in the Eagle Ford,
Haynesville and Permian Onshore US oil and gas assets to BP America Production
Company, a subsidiary of BP Plc, is expected to occur by the end of October
2018.

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                   BHP Operational Review for              4
                   the quarter ended 30 September 2018

Copper

Production

                                             Sep Q18   Sep Q18
                                               vs        vs
                                   Sep Q18   Sep Q17   Jun Q18
                                   -------   -------   -------
Copper (kt).......................    409        1%       (12%)
Zinc (t).......................... 30,558        5%       (15%)
Uranium oxide concentrate (t).....    559      (36%)      (50%)
                                                      
Copper - Total copper production for the September 2018 quarter was broadly
flat at 409 kt. Guidance for the 2019 financial year has been reduced to
between 1,620 and 1,705 kt and reflects lower volumes at Spence and Olympic Dam.

Escondida copper production increased by 10 per cent to 295 kt driven by higher
copper concentrate output. This is a result of the diversion of ore feed from
sulphide leach to the three concentrators to maximise their utilisation, which
offset the impact of expected lower copper grades and adverse weather
conditions in the quarter. Guidance remains unchanged at between 1,120 and
1,180 kt in the 2019 financial year. During the period, we successfully
completed negotiations with Escondida Union N(degrees)1 and signed a new
collective agreement, effective for 36 months from 1 August 2018.

Pampa Norte copper production decreased by 25 per cent to 43 kt as a result of
lower volumes from Spence. The decrease reflected a lower stacking rate in May
and June 2018 as a result of planned maintenance, and a production outage
following a fire at the electro-winning plant in September 2018. Production
guidance for Spence has been reduced from between 185 and 200 kt to between 160
and 175 kt, with volumes weighted to the second half as a return to full
capacity is expected during the December 2018 quarter. Since the fire, mining
and stacking operations at Spence have continued, accumulating copper in the
system, which will be recovered over the coming years as tankhouse capacity
becomes available. On 19 June 2018, BHP entered into an agreement to sell Cerro
Colorado to EMR Capital/(3)/. The transaction is expected to close during the
December 2018 quarter, subject to financing and customary closing conditions.
During the period, we successfully completed the advanced negotiation with
Cerro Colorado Union N(degrees)1 (operators and maintenance), with the new
agreement effective for 36 months from 1 September 2018.

Olympic Dam copper production decreased by 21 per cent to 33 kt as a result of
an unplanned acid plant outage in August 2018. Surface operations remain
suspended as remediation works continue on the gas converter, sulphur burner
and waste heat boiler in the acid plant. Surface operations are expected to
recommence at the end of October 2018 and ramp up to full capacity during
November 2018. As a result, production guidance for the 2019 financial year has
been reduced from between 200 and 220 kt to between 170 and 180 kt. Underground
operations have been unaffected with total development of nine kilometres
achieved in the September 2018 quarter and progression into the higher ore
grade Southern Mine Area continuing.

Antamina copper production increased by three per cent to 37 kt due to higher
head grades. Production guidance for the 2019 financial year remains unchanged
at approximately 135 kt for copper and approximately 85 kt for zinc.

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 23% 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              5
                   the quarter ended 30 September 2018

Iron Ore

Production

                                          Sep Q18 Sep Q18
                                             vs      vs
                                  Sep Q18 Sep Q17 Jun Q18
                                 -------- ------- -------
        Iron ore (kt)..........    61,391   10%     (3%)

Iron ore - Total iron ore production increased by 10 per cent to 61 Mt or 69 Mt
on a 100 per cent basis. Guidance for the 2019 financial year remains unchanged
at between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per cent basis.

At WAIO, increased volumes were supported by record production at Jimblebar and
improved reliability across our rail network and port operations. As expected,
production was lower than the June 2018 quarter as we optimised maintenance
schedules across the supply chain and implemented a program of work to further
improve port reliability and performance.

Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.

Projects

                               Capital       Initial
Project and                  expenditure   production
ownership                      (US$m)      target date               Capacity                            Progress
-----------                 ------------- ------------ ------------------------------------ -----------------------------------
South Flank................   3,061           CY21     Sustaining iron ore mine to replace  On schedule and budget. The
(Australia)                                            production from the 80 Mtpa          overall project is 15%
85%                                                    (100 per cent basis) Yandi mine.     complete.

Coal

Production

                                       Sep Q18 Sep Q18
                                         vs      vs
                               Sep Q18 Sep Q17 Jun Q18
                               ------- ------- -------
    Metallurgical coal (kt)... 10,358    (2%)    (14%)
    Energy coal (kt)..........  6,640    (1%)    (26%)

Metallurgical coal - Metallurgical coal production was down two per cent to 10
Mt. Guidance for the 2019 financial year remains unchanged at between 43 and 46
Mt, with volumes weighted to the second half of the year.

Queensland Coal production reflected planned maintenance across both port and
mine operations. This was partially offset by record stripping and truck
performance at BMA, utilisation of latent dragline capacity at Caval Ridge and
higher wash-plant throughput at Poitrel following the purchase of the Red
Mountain processing facility. The maintenance program of work is expected to
continue through the December 2018 quarter. A longwall move at Broadmeadow is
scheduled for the December 2018 quarter.

The Caval Ridge Southern Circuit project is progressing according to plan with
the conveying of first coal expected in October 2018.

Energy coal - Energy coal production decreased by one per cent to 7 Mt.
Guidance for the 2019 financial year is unchanged at approximately 28 to 29 Mt.

New South Wales Energy Coal production decreased by six per cent as improved
stripping fleet performance was offset by lower bypass coal and a higher
average strip ratio, consistent with the mine plan. Cerrejon production
increased by six per cent as the prior quarter was impacted by adverse weather
conditions.

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                   BHP Operational Review for              6
                   the quarter ended 30 September 2018

Other

Nickel production

                                                Sep Q18 Sep Q18
                                                   vs      vs
                                        Sep Q18 Sep Q17 Jun Q18
                                        ------- ------- -------
        Nickel (kt)...................  21.4     (8%)    (16%)


Nickel - Nickel West production decreased by eight per cent to 21 kt. On
23 September 2018, operations at the Kalgoorlie smelter were suspended
following a fire which caused damage to a localised area in the furnace
building. The smelter returned to operation on 1 October 2018 and is expected
to ramp up to full capacity from early November 2018. Planned maintenance at
the Kwinana refinery was brought forward to align with the smelter outage and,
as a result, production guidance for the 2019 financial year remains unchanged
and is expected to be broadly in line with the 2018 financial year.

Potash project

                       Investment
Project and ownership    (US$m)                  Scope                                  Progress
---------------------  ---------- ------------------------------------ -------------------------------------------
   Jansen Potash......   2,700    Investment to finish the excavation  The project is 81% complete and within the
   (Canada)...........            and lining of the production and     approved budget.
   100%...............            service shafts, and to continue the
                                  installation of essential surface
                                  infrastructure and utilities.

Minerals exploration

Minerals exploration expenditure for the September 2018 quarter was
US$40 million, of which US$30 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. Consistent
with our exploration focus on copper, in September 2018, BHP acquired an initial 
6.1/(4)/ per cent interest in SolGold Plc (SolGold), the majority owner and
operator of the Cascabel porphyry copper-gold project in Ecuador.  On 15 October 2018,
BHP entered into an agreement to acquire an additional 100 million shares in SolGold,
which would bring our total interest to approximately 11.2 per cent.



Variance analysis relates to the relative performance of BHP and/or its
operations during the September 2018 quarter compared with the September 2017
quarter, unless otherwise noted. Production volumes, sales volumes and capital
and exploration expenditure from subsidiaries are reported on a 100 per cent
basis; production and sales volumes from equity accounted investments and other
operations are reported on a proportionate consolidation basis. Copper
equivalent production based on 2018 financial year average realised prices.

The following footnotes apply to this Operational Review:

(1) Excludes production from Onshore US and Cerro Colorado.
(2) 2019 financial year unit cost guidance is based on exchange rates of AUD/USD
0.75 and USD/CLP 663.
(3) On 19 June 2018, BHP announced it has entered into an agreement to sell the
    Cerro Colorado copper mine in Chile to EMR Capital. The total cash
    consideration consist of US$230 million to be paid to BHP after the closing
    of the transaction, plus approximately US$40 million in proceeds from the
    post-closing sale of certain copper inventory, and a contingent payment of
    up to US$50 million to be paid in the future, depending upon copper price
    performance.
(4) As at 4 September 2018, BHP acquired a 6.1% interest in SolGold, which has
been diluted to 6.0% as at 12 October 2018 as a result of the exercise of options
by third parties.

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. Notwithstanding
that this release may include production and other data from non-operated
assets, non-operated assets are not included in the BHP Group.

--------------------------------------------------------------------------------
                   BHP Operational Review for              7
                   the quarter ended 30 September 2018

Sponsor: UBS South Africa (Pty) Limited

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

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                   BHP Operational Review for              8
                   the quarter ended 30 September 2018



 NEWS RELEASE                               LOGO

17 October 2018

                            BHP OPERATIONAL REVIEW
                    FOR THE QUARTER ENDED 30 SEPTEMBER 2018

Production and sales summary (Excel version)

                                                                     www.bhp.com

Production summary

                                                                 Quarter ended            Year to date
                                                      ----------------------------------- -------------
                                                       Sep    Dec    Mar    Jun     Sep    Sep    Sep
                                             BHP       2017   2017   2018   2018    2018   2018   2017
                                           interest   ------ ------ ------ ------- ------ ------ ------
Petroleum /(1)/                                      
Petroleum                                            
Conventional                                         
   Crude oil, condensate and NGL (Mboe).              15,090 14,869 13,960  13,486 14,087 14,087 15,090
   Natural gas (bcf)....................               107.3   96.1   82.9    90.7  112.3  112.3  107.3
                                                      ------ ------ ------ ------- ------ ------ ------
   Total (Mboe).........................              32,973 30,886 27,777  28,603 32,804 32,804 32,973
                                                      ------ ------ ------ ------- ------ ------ ------
Onshore US - Discontinued Operations                 
   Crude oil, condensate and NGL (Mboe).               7,079  7,423  6,256   8,266  7,351  7,351  7,079
   Natural gas (bcf)....................                61.4   60.5   64.1    72.5   76.0   76.0   61.4
                                                      ------ ------ ------ ------- ------ ------ ------
   Total (Mboe).........................              17,312 17,506 16,939  20,349 20,018 20,018 17,312
                                                      ------ ------ ------ ------- ------ ------ ------
Copper /(2)/                                         
Copper                                               
Payable metal in concentrate (kt)                    
   Escondida /(3)/......................     57.5%     196.3  238.5  244.9   246.1  240.0  240.0  196.3
   Antamina.............................     33.8%      35.9   33.8   35.2    34.6   37.0   37.0   35.9
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................               232.2  272.3  280.1   280.7  277.0  277.0  232.2
                                                      ------ ------ ------ ------- ------ ------ ------
Cathode (kt)                                         
   Escondida /(3)/......................     57.5%      71.9   76.1   69.4    70.1   55.4   55.4   71.9
   Pampa Norte /(4)/....................      100%      58.0   68.4   66.8    70.6   43.4   43.4   58.0
   Olympic Dam..........................      100%      42.0   12.2   40.5    42.0   33.3   33.3   42.0
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................               171.9  156.7  176.7   182.7  132.1  132.1  171.9
                                                      ------ ------ ------ ------- ------ ------ ------
Total copper (kt).......................               404.1  429.0  456.8   463.4  409.1  409.1  404.1
                                                      ------ ------ ------ ------- ------ ------ ------
Lead                                                 
Payable metal in concentrate (t)                     
   Antamina.............................     33.8%     1,415  1,009    464     546    563    563  1,415
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................               1,415  1,009    464     546    563    563  1,415
                                                      ------ ------ ------ ------- ------ ------ ------
Zinc                                                 
Payable metal in concentrate (t)                     
   Antamina.............................     33.8%    29,201 29,054 25,562  35,983 30,558 30,558 29,201
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................              29,201 29,054 25,562  35,983 30,558 30,558 29,201
                                                      ------ ------ ------ ------- ------ ------ ------
Gold                                                 
Payable metal in concentrate (troy oz)               
   Escondida /(3)/......................     57.5%    50,525 50,279 59,953  68,345 63,578 63,578 50,525
   Olympic Dam (refined gold)...........      100%    13,101 15,969 28,989  33,497 23,471 23,471 13,101
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................              63,626 66,248 88,942 101,842 87,049 87,049 63,626
                                                      ------ ------ ------ ------- ------ ------ ------
Silver                                               
Payable metal in concentrate (troy koz)              
   Escondida /(3)/......................     57.5%     1,737  2,193  2,339   2,527  1,997  1,997  1,737
   Antamina.............................     33.8%     1,596  1,331  1,189   1,321  1,309  1,309  1,596
   Olympic Dam (refined silver).........      100%       131    135    248     278    213    213    131
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................               3,464  3,659  3,776   4,126  3,519  3,519  3,464
                                                      ------ ------ ------ ------- ------ ------ ------
Uranium                                              
Payable metal in concentrate (t)                     
   Olympic Dam..........................      100%       880    243  1,118   1,123    559    559    880
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................                 880    243  1,118   1,123    559    559    880
                                                      ------ ------ ------ ------- ------ ------ ------
Molybdenum                                           
Payable metal in concentrate (t)                     
   Antamina.............................     33.8%       402    579    420     261    464    464    402
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................                 402    579    420     261    464    464    402
                                                      ------ ------ ------ ------- ------ ------ ------

--------------------------------------------------------------------------------
                   BHP Operational Review for              9
                   the quarter ended 30 September 2018

Production summary

                                                                 Quarter ended            Year to date
                                                      ----------------------------------- -------------
                                                       Sep    Dec    Mar    Jun     Sep    Sep    Sep
                                             BHP       2017   2017   2018   2018    2018   2018   2017
                                           interest   ------ ------ ------ ------- ------ ------ ------
Iron Ore                                             
Iron Ore                                             
Production (kt) /(5)/                                
   Newman...............................       85%    13,842 18,317 16,412  18,500 16,378 16,378 13,842
   Area C Joint Venture.................       85%    13,099 13,575 12,802  12,041 11,696 11,696 13,099
   Yandi Joint Venture..................       85%    14,559 16,348 15,802  17,339 16,870 16,870 14,559
   Jimblebar /(6)/......................       85%     6,283  4,583  4,669  15,092 16,333 16,333  6,283
   Wheelarra............................       85%     7,804  8,734  8,006     614    114    114  7,804
   Samarco..............................       50%        --     --     --      --     --     --     --
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................              55,587 61,557 57,691  63,586 61,391 61,391 55,587
                                                      ------ ------ ------ ------- ------ ------ ------
Coal                                                 
Metallurgical coal                                   
Production (kt) /(7)/                                
   BMA..................................       50%     8,296  7,394  7,983   9,220  7,744  7,744  8,296
   BHP Mitsui Coal /(8)/................       80%     2,271  2,291  2,396   2,789  2,614  2,614  2,271
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................              10,567  9,685 10,379  12,009 10,358 10,358 10,567
                                                      ------ ------ ------ ------- ------ ------ ------
Energy coal                                          
Production (kt)                                      
   Australia............................      100%     4,235  4,383  3,662   6,261  3,982  3,982  4,235
   Colombia.............................     33.3%     2,497  2,914  2,444   2,762  2,658  2,658  2,497
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................               6,732  7,297  6,106   9,023  6,640  6,640  6,732
                                                      ------ ------ ------ ------- ------ ------ ------
Other                                                
Nickel                                               
Saleable production (kt)                             
   Nickel West /(9)/....................      100%      23.3   23.1   21.1    25.6   21.4   21.4   23.3
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................                23.3   23.1   21.1    25.6   21.4   21.4   23.3
                                                      ------ ------ ------ ------- ------ ------ ------
Cobalt                                               
Saleable production (t)                              
   Nickel West..........................      100%       280    263    240     277    249    249    280
                                                      ------ ------ ------ ------- ------ ------ ------
   Total................................                 280    263    240     277    249    249    280
                                                      ------ ------ ------ ------- ------ ------ ------
                                                    
(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) Production restated to include other nickel by-products.

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

--------------------------------------------------------------------------------
                   BHP Operational Review for              10
                   the quarter ended 30 September 2018

Production and sales report

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

Bass Strait
   Crude oil and condensate................... (Mboe)       1,815    1,513    1,126    1,361    1,653    1,653    1,815
   NGL........................................ (Mboe)       1,950    1,584    1,170    1,428    1,840    1,840    1,950
   Natural gas................................ (bcf)         42.6     32.9     20.5     29.9     35.1     35.1     42.6
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)       10.9      8.6      5.7      7.8      9.3      9.3     10.9
                                                          -------  -------  -------  -------  -------  -------  -------
North West Shelf
   Crude oil and condensate................... (Mboe)       1,474    1,442    1,377    1,267    1,514    1,514    1,474
   NGL........................................ (Mboe)         227      200      210      186      242      242      227
   Natural gas................................ (bcf)         36.2     36.2     35.8     34.2     36.6     36.6     36.2
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        7.7      7.7      7.6      7.2      7.9      7.9      7.7
                                                          -------  -------  -------  -------  -------  -------  -------
Pyrenees
   Crude oil and condensate................... (Mboe)       1,510    1,210    1,250    1,168      282      282    1,510
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        1.5      1.2      1.3      1.2      0.3      0.3      1.5
                                                          -------  -------  -------  -------  -------  -------  -------
Other Australia /(2)/
   Crude oil and condensate................... (Mboe)           9        8        8        7        7        7        9
   Natural gas................................ (bcf)         16.1     13.3     13.4     13.9     13.8     13.8     16.1
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        2.7      2.2      2.2      2.3      2.3      2.3      2.7
                                                          -------  -------  -------  -------  -------  -------  -------
Atlantis /(3)/
   Crude oil and condensate................... (Mboe)       3,022    3,377    3,459    3,471    3,190    3,190    3,022
   NGL........................................ (Mboe)         218      195      248      217      215      215      218
   Natural gas................................ (bcf)          1.6      1.8      1.8      1.5      1.5      1.5      1.6
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        3.5      3.9      4.0      3.9      3.7      3.7      3.5
                                                          -------  -------  -------  -------  -------  -------  -------
Mad Dog /(3)/
   Crude oil and condensate................... (Mboe)       1,020    1,231    1,140      581    1,270    1,270    1,020
   NGL........................................ (Mboe)          44       72       55       27       61       61       44
   Natural gas................................ (bcf)          0.1      0.2      0.2      0.1      0.2      0.2      0.1
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        1.1      1.3      1.2      0.6      1.4      1.4      1.1
                                                          -------  -------  -------  -------  -------  -------  -------
Shenzi /(3)/
   Crude oil and condensate................... (Mboe)       2,291    2,513    2,323    2,110    2,016    2,016    2,291
   NGL........................................ (Mboe)         141      184      140      151      122      122      141
   Natural gas................................ (bcf)          0.4      0.5      0.4      0.4      0.4      0.4      0.4
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        2.5      2.8      2.5      2.3      2.2      2.2      2.5
                                                          -------  -------  -------  -------  -------  -------  -------
Trinidad/Tobago
   Crude oil and condensate................... (Mboe)         118      135      232      233      447      447      118
   Natural gas................................ (bcf)          9.7     10.5     10.0      9.8     24.0     24.0      9.7
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        1.7      1.9      1.9      1.9      4.4      4.4      1.7
                                                          -------  -------  -------  -------  -------  -------  -------
Other Americas /(3) (4)/
   Crude oil and condensate................... (Mboe)         229      207      189      313      207      207      229
   NGL........................................ (Mboe)           5        3        3       22        3        3        5
   Natural gas................................ (bcf)          0.1      0.1       --      0.3       --       --      0.1
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        0.3      0.2      0.2      0.4      0.2      0.2      0.3
                                                          -------  -------  -------  -------  -------  -------  -------
UK
   Crude oil and condensate................... (Mboe)          40       22       43       38       36       36       40
   NGL........................................ (Mboe)          39       13       18       18       21       21       39
   Natural gas................................ (bcf)          0.5      0.6      0.8      0.6      0.7      0.7      0.5
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        0.2      0.1      0.2      0.2      0.2      0.2      0.2
                                                          -------  -------  -------  -------  -------  -------  -------
Algeria
   Crude oil and condensate................... (Mboe)         938      960      969      888      961      961      938
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        0.9      1.0      1.0      0.9      1.0      1.0      0.9
                                                          -------  -------  -------  -------  -------  -------  -------

--------------------------------------------------------------------------------
                   BHP Operational Review for              11
                   the quarter ended 30 September 2018

Production and sales report
                                                                              Quarter ended              Year to date
                                                          ------------------------------------------- -----------------
                                                            Sep      Dec      Mar     Jun      Sep      Sep      Sep
                                                            2017     2017     2018    2018     2018     2018     2017
                                                          -------  -------  -------- -------  -------  -------  -------

Petroleum - Onshore US - Discontinued Operations /(1)(5)/

Eagle Ford
   Crude oil and condensate................... (Mboe)       3,457    3,720    2,838    3,826    3,256    3,256    3,457
   NGL........................................ (Mboe)       1,856    2,100    1,555    1,767    1,919    1,919    1,856
   Natural gas................................ (bcf)         13.8     14.4     12.6     13.9     13.8     13.8     13.8
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        7.6      8.2      6.5      7.9      7.5      7.5      7.6
                                                          -------  -------  -------  -------  -------  -------  -------
Permian
   Crude oil and condensate................... (Mboe)       1,179    1,142    1,398    1,903    1,478    1,478    1,179
   NGL........................................ (Mboe)         587      460      465      770      687      687      587
   Natural gas................................ (bcf)          4.5      3.6      4.1      6.4      4.8      4.8      4.5
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        2.5      2.2      2.5      3.7      3.0      3.0      2.5
                                                          -------  -------  -------  -------  -------  -------  -------
Haynesville
   Crude oil and condensate................... (Mboe)          --        1       --       --       11       11       --
   Natural gas................................ (bcf)         21.5     22.0     28.7     33.1     39.0     39.0     21.5
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        3.6      3.7      4.8      5.5      6.5      6.5      3.6
                                                          -------  -------  -------  -------  -------  -------  -------
Fayetteville
   Natural gas................................ (bcf)         21.6     20.5     18.7     19.1     18.4     18.4     21.6
                                                          -------  -------  -------  -------  -------  -------  -------
   Total petroleum products................... (MMboe)        3.6      3.4      3.1      3.2      3.1      3.1      3.6
                                                          -------  -------  -------  -------  -------  -------  -------
Petroleum - Total /(1)/
   Conventional
   Crude oil and condensate................... (Mboe)      12,466   12,618   12,116   11,437   11,583   11,583   12,466
   NGL........................................ (Mboe)       2,624    2,251    1,844    2,049    2,504    2,504    2,624
   Natural gas................................ (bcf)        107.3     96.1     82.9     90.7    112.3    112.3    107.3
                                                          -------  -------  -------  -------  -------  -------  -------
   Total...................................... (Mboe)      32,973   30,886   27,777   28,603   32,804   32,804   32,973
                                                          -------  -------  -------  -------  -------  -------  -------
   Onshore US - Discontinued Operations /(5)/
   Crude oil and condensate................... (Mboe)       4,636    4,863    4,236    5,729    4,745    4,745    4,636
   NGL........................................ (Mboe)       2,443    2,560    2,020    2,537    2,606    2,606    2,443
   Natural gas................................ (bcf)         61.4     60.5     64.1     72.5     76.0     76.0     61.4
                                                          -------  -------  -------  -------  -------  -------  -------
   Total...................................... (Mboe)      17,312   17,506   16,939   20,349   20,018   20,018   17,312
                                                          -------  -------  -------  -------  -------  -------  -------
(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) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(5) Onshore US volumes are net of mineral holder royalties.

--------------------------------------------------------------------------------
                   BHP Operational Review for              12
                   the quarter ended 30 September 2018

Production and sales report
                                                                              Quarter ended              Year to date
                                                          ------------------------------------------- -----------------
                                                            Sep      Dec      Mar     Jun      Sep      Sep      Sep
                                                            2017     2017     2018    2018     2018     2018     2017
                                                          -------  -------  -------- -------  -------  -------  -------
Copper
Metals production is payable metal unless otherwise stated.

Escondida, Chile /(1)/
   Material mined............................. (kt)       104,867  101,371  103,385  106,788  107,260  107,260  104,867
   Sulphide ore milled........................ (kt)        24,080   30,260   32,203   31,732   30,513   30,513   24,080
   Average concentrator head grade............ (%)           1.06%    0.98%    0.96%    0.96%    0.94%    0.94%    1.06%
   Production ex mill......................... (kt)         204.2    245.7    252.6    253.6    241.9    241.9    204.2

   Production
   Payable copper............................. (kt)         196.3    238.5    244.9    246.1    240.0    240.0    196.3
   Copper cathode (EW)........................ (kt)          71.9     76.1     69.4     70.1     55.4     55.4     71.9
   - Oxide leach.............................. (kt)          22.4     27.4     24.5     27.1     19.5     19.5     22.4
   - Sulphide leach........................... (kt)          49.5     48.7     44.9     43.0     35.8     35.8     49.5
                                                          -------  -------  -------  -------  -------  -------  -------
   Total copper............................... (kt)         268.2    314.6    314.3    316.2    295.4    295.4    268.2
                                                          -------  -------  -------  -------  -------  -------  -------
   Payable gold concentrate................... (troy oz)   50,525   50,279   59,953   68,345   63,578   63,578   50,525
   Payable silver concentrate................. (troy koz)   1,737    2,193    2,339    2,527    1,997    1,997    1,737

   Sales
   Payable copper............................. (kt)         195.1    236.7    228.3    260.3    216.5    216.5    195.1
   Copper cathode (EW)........................ (kt)          61.6     84.1     61.7     80.9     53.2     53.2     61.6
   Payable gold concentrate................... (troy oz)   50,525   50,279   59,953   68,345   63,578   63,578   50,525
   Payable silver concentrate................. (troy koz)   1,737    2,193    2,339    2,527    1,997    1,997    1,737

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

Pampa Norte, Chile
   Cerro Colorado
   Material mined............................. (kt)        21,381   20,191   17,766   17,918   18,488   18,488   21,381
   Ore milled................................. (kt)         3,951    4,611    4,905    4,833    4,802    4,802    3,951
   Average copper grade....................... (%)           0.62%    0.59%    0.58%    0.58%    0.53%    0.53%    0.62%

   Production
   Copper cathode (EW)........................ (kt)          13.3     17.4     13.6     19.0     14.2     14.2     13.3

   Sales
   Copper cathode (EW)........................ (kt)          12.3     17.7     13.7     20.9     13.8     13.8     12.3

   Spence
   Material mined............................. (kt)        22,314   23,096   21,463   23,103   23,007   23,007   22,314
   Ore milled................................. (kt)         5,375    4,919    5,144    4,009    5,642    5,642    5,375
   Average copper grade....................... (%)           1.21%    1.18%    1.03%    1.11%    1.15%    1.15%    1.21%

   Production
   Copper cathode (EW)........................ (kt)          44.7     51.0     53.2     51.6     29.2     29.2     44.7

   Sales
   Copper cathode (EW)........................ (kt)          43.0     52.2     49.8     57.1     29.7     29.7     43.0

--------------------------------------------------------------------------------
                   BHP Operational Review for              13
                   the quarter ended 30 September 2018

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

Antamina, Peru
   Material mined (100%)...................... (kt)        59,216   59,125   58,085   59,002   62,470   62,470   59,216
   Sulphide ore milled (100%)................. (kt)        12,822   13,098   12,166   12,973   13,197   13,197   12,822
   Average head grades
   - Copper................................... (%)           0.94%    0.89%    1.01%    0.91%    0.96%    0.96%    0.94%
   - Zinc..................................... (%)           0.99%    0.93%    1.01%    1.19%    1.10%    1.10%    0.99%

   Production
   Payable copper............................. (kt)          35.9     33.8     35.2     34.6     37.0     37.0     35.9
   Payable zinc............................... (t)         29,201   29,054   25,562   35,983   30,558   30,558   29,201
   Payable silver............................. (troy koz)   1,596    1,331    1,189    1,321    1,309    1,309    1,596
   Payable lead............................... (t)          1,415    1,009      464      546      563      563    1,415
   Payable molybdenum......................... (t)            402      579      420      261      464      464      402

   Sales
   Payable copper............................. (kt)          31.9     37.0     32.1     36.6     33.6     33.6     31.9
   Payable zinc............................... (t)         25,224   30,340   26,456   33,088   31,822   31,822   25,224
   Payable silver............................. (troy koz)   1,475    1,470    1,052    1,311    1,193    1,193    1,475
   Payable lead............................... (t)          1,624      972      859      595      612      612    1,624
   Payable molybdenum......................... (t)            168      693      500      388      208      208      168

Olympic Dam, Australia
   Material mined /(1)/....................... (kt)         1,851    1,391    2,056    2,201    2,044    2,044    1,851
   Ore milled................................. (kt)         2,302      554    2,188    2,171    1,242    1,242    2,302
   Average copper grade....................... (%)           2.10%    2.22%    2.36%    2.12%    2.05%    2.05%    2.10%
   Average uranium grade...................... (kg/t)        0.55     0.58     0.71     0.69     0.62     0.62     0.55

   Production
   Copper cathode (ER and EW)................. (kt)          42.0     12.2     40.5     42.0     33.3     33.3     42.0
   Uranium oxide concentrate.................. (t)            880      243    1,118    1,123      559      559      880
   Refined gold............................... (troy oz)   13,101   15,969   28,989   33,497   23,471   23,471   13,101
   Refined silver............................. (troy koz)     131      135      248      278      213      213      131

   Sales
   Copper cathode (ER and EW)................. (kt)          31.6     24.3     36.8     46.0     33.9     33.9     31.6
   Uranium oxide concentrate.................. (t)            680      338      509    1,230      765      765      680
   Refined gold............................... (troy oz)   22,435   17,999   20,715   35,714   21,145   21,145   22,435
   Refined silver............................. (troy koz)     219      118      202      307      216      216      219

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

--------------------------------------------------------------------------------
                   BHP Operational Review for              14
                   the quarter ended 30 September 2018

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

Pilbara, Australia
   Production
   Newman..................................... (kt)        13,842   18,317   16,412   18,500   16,378   16,378   13,842
   Area C Joint Venture....................... (kt)        13,099   13,575   12,802   12,041   11,696   11,696   13,099
   Yandi Joint Venture........................ (kt)        14,559   16,348   15,802   17,339   16,870   16,870   14,559
   Jimblebar /(1)/............................ (kt)         6,283    4,583    4,669   15,092   16,333   16,333    6,283
   Wheelarra.................................. (kt)         7,804    8,734    8,006      614      114      114    7,804
                                                          -------  -------  -------  -------  -------  -------  -------
   Total production........................... (kt)        55,587   61,557   57,691   63,586   61,391   61,391   55,587
                                                          -------  -------  -------  -------  -------  -------  -------
   Total production (100%).................... (kt)        64,287   71,611   67,048   72,145   69,342   69,342   64,287
                                                          -------  -------  -------  -------  -------  -------  -------
   Sales
   Lump....................................... (kt)        13,896   15,145   13,993   15,173   15,014   15,014   13,896
   Fines...................................... (kt)        40,733   45,769   44,332   47,730   46,527   46,527   40,733
                                                          -------  -------  -------  -------  -------  -------  -------
   Total...................................... (kt)        54,629   60,914   58,325   62,903   61,541   61,541   54,629
                                                          -------  -------  -------  -------  -------  -------  -------
   Total sales (100%)......................... (kt)        63,322   70,733   67,799   71,385   69,421   69,421   63,322
                                                          -------  -------  -------  -------  -------  -------  -------

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

Samarco, Brazil /(1)/
   Production................................. (kt)            --       --       --       --       --       --       --

   Sales...................................... (kt)            --       14       25       --       --       --       --

(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              15
                   the quarter ended 30 September 2018

Production and sales report
                                                                              Quarter ended              Year to date
                                                          ------------------------------------------- -----------------
                                                            Sep      Dec      Mar     Jun      Sep      Sep      Sep
                                                            2017     2017     2018    2018     2018     2018     2017
                                                          -------  -------  -------- -------  -------  -------  -------
Coal
Coal production is reported on the basis of
 saleable product.
Queensland Coal
   Production /(1)/
   BMA
   Blackwater................................. (kt)         1,985    1,470    1,384    1,849    1,704    1,704    1,985
   Goonyella.................................. (kt)         1,639    1,369    2,314    2,639    1,989    1,989    1,639
   Peak Downs................................. (kt)         1,602    1,367    1,723    1,658    1,131    1,131    1,602
   Saraji..................................... (kt)         1,414    1,198    1,240    1,201    1,111    1,111    1,414
   Daunia..................................... (kt)           662      718      547      629      620      620      662
   Caval Ridge................................ (kt)           994    1,272      775    1,244    1,189    1,189      994
                                                          -------  -------  -------  -------  -------  -------  -------
   Total BMA.................................. (kt)         8,296    7,394    7,983    9,220    7,744    7,744    8,296
                                                          -------  -------  -------  -------  -------  -------  -------
   BHP Mitsui Coal /(2)/
   South Walker Creek......................... (kt)         1,400    1,524    1,490    1,615    1,505    1,505    1,400
   Poitrel.................................... (kt)           871      767      906    1,174    1,109    1,109      871
                                                          -------  -------  -------  -------  -------  -------  -------
   Total BHP Mitsui Coal...................... (kt)         2,271    2,291    2,396    2,789    2,614    2,614    2,271
                                                          -------  -------  -------  -------  -------  -------  -------
   Total Queensland Coal...................... (kt)        10,567    9,685   10,379   12,009   10,358   10,358   10,567
                                                          -------  -------  -------  -------  -------  -------  -------
   Sales
   Coking coal................................ (kt)         7,934    6,341    7,177    8,489    7,356    7,356    7,934
   Weak coking coal........................... (kt)         3,150    2,816    2,598    2,866    2,813    2,813    3,150
   Thermal coal............................... (kt)           102      173      168       85      141      141      102
                                                          -------  -------  -------  -------  -------  -------  -------
   Total...................................... (kt)        11,186    9,330    9,943   11,440   10,310   10,310   11,186
                                                          -------  -------  -------  -------  -------  -------  -------

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

NSW Energy Coal, Australia
   Production................................. (kt)         4,235    4,383    3,662    6,261    3,982    3,982    4,235

   Sales
   Export thermal coal........................ (kt)         3,622    4,048    3,181    5,795    3,549    3,549    3,622
   Inland thermal coal........................ (kt)           405      411      400      160      332      332      405
                                                          -------  -------  -------  -------  -------  -------  -------
   Total...................................... (kt)         4,027    4,459    3,581    5,955    3,881    3,881    4,027
                                                          -------  -------  -------  -------  -------  -------  -------
Cerrejon, Colombia
   Production................................. (kt)         2,497    2,914    2,444    2,762    2,658    2,658    2,497

   Sales thermal coal - export................ (kt)         2,518    2,619    2,480    2,763    2,589    2,589    2,518

--------------------------------------------------------------------------------
                   BHP Operational Review for              16
                   the quarter ended 30 September 2018

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

Nickel West, Australia
   Mt Keith
   Nickel concentrate......................... (kt)          54.4     49.8     44.9     55.6     50.2     50.2     54.4
   Average nickel grade....................... (%)           20.5     20.3     21.3     18.8     18.9     18.9     20.5

   Leinster
   Nickel concentrate......................... (kt)          78.7     87.6     54.7     78.4     78.8     78.8     78.7
   Average nickel grade....................... (%)            9.3      8.8      9.3      9.8      8.4      8.4      9.3

   Saleable production
   Refined nickel /(1) (2)/................... (kt)          16.0     17.7     19.2     18.5     19.8     19.8     16.0
   Intermediates and nickel 
      by-products /(1)(3)/.................... (kt)           7.3      5.4      1.9      7.1      1.6      1.6      7.3
                                                          -------  -------  -------  -------  -------  -------  -------
   Total nickel /(1)/......................... (kt)          23.3     23.1     21.1     25.6     21.4     21.4     23.3
                                                          -------  -------  -------  -------  -------  -------  -------
   Cobalt..................................... (t)            280      263      240      277      249      249      280

   Sales
   Refined nickel /(1) (2)/................... (kt)          16.3     17.7     19.5     17.5     19.3     19.3     16.3
   Intermediates and nickel 
     by-products /(1)(3)/......................(kt)           5.0      6.9      2.5      6.3      2.2      2.2      5.0
                                                          -------  -------  -------  -------  -------  -------  -------
   Total nickel /(1)/......................... (kt)          21.2     24.6     21.9     23.8     21.5     21.5     21.2
                                                          -------  -------  -------  -------  -------  -------  -------
   Cobalt..................................... (t)            280      263      240      277      249      249      280

(1) Production and sales restated to include other nickel by-products.
(2) High quality refined nickel metal, including briquettes and powder.
(3) Nickel contained in matte and by-product streams.

--------------------------------------------------------------------------------
                   BHP Operational Review for              17
                   the quarter ended 30 September 2018

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