Wrap Text
Operational Review for the nine months ended 31 March 2021
BHP Group Plc
Registration number 3196209
Registered in England and Wales
Share code: BHP
ISIN: GB00BH0P3Z91
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Release Time IMMEDIATE
Date 21 April 2021
Release Number 05/21
BHP OPERATIONAL REVIEW
FOR THE NINE MONTHS ENDED 31 MARCH 2021
Note: All guidance is subject to further potential impacts from COVID-19 during
the 2021 financial year.
. Record production was achieved at Western Australia Iron Ore (WAIO) and
record average concentrator throughput was delivered at Escondida.
. Production guidance for the 2021 financial year remains unchanged for
petroleum and iron ore. Copper guidance has increased to between 1,535 kt
and 1,660 kt and reflects stronger than expected performance at Escondida.
Metallurgical coal guidance has been reduced to between 39 and 41 Mt as a
result of significant wet weather impacts during the December 2020 and
March 2021 quarters. Energy coal guidance has been reduced to between 18
and 20 Mt as a result of significant weather impacts at New South Wales
Energy Coal (NSWEC) and lower than expected volumes at Cerrejon.
. Full year unit cost guidance/(1)/ (based on exchange rates of AUD/USD 0.70
and USD/CLP 769) remains unchanged for Petroleum and WAIO. Unit costs for
Escondida have been lowered to be between US$0.95 and US$1.10/(1)/ per
pound, reflecting strong production and lower deferred stripping costs.
Unit costs for Queensland Coal have been increased to be between US$74 and
US$78/(1)/ per tonne, reflecting lower expected volumes for the full year.
. The Bass Strait West Barracouta gas project achieved first
production in April 2021, and is on schedule and budget. Our major projects
under development are also progressing to plan. The Ruby project in
Trinidad and Tobago is progressing ahead of schedule and on budget, with
first production on track for May 2021. South Flank is tracking well with
commissioning activities planned for the June 2021 quarter and is on
schedule for first production in the middle of the 2021 calendar year.
Jansen Stage 1 project remains on track for Final Investment Decision in
the middle of the 2021 calendar year.
Mar YTD21 Mar Q21
Production (vs Mar YTD20) (vs Dec Q20) Mar Q21 vs Dec Q20 commentary
---------- -------------- ------------ -----------------------------
Petroleum (MMboe)............. 75.8 25.4 Higher volumes reflect increased Shenzi working interest (following
(8%) 7% completion of the acquisition in November 2020) and impacts from
Hurricanes Delta and Zeta in the Gulf of Mexico in the prior quarter.
This was partially offset by lower seasonal demand at Bass Strait.
Copper (kt)................... 1,232.7 391.4 Lower volumes primarily as a result of decreased throughput at Escondida,
(6%) (9%) reflecting the impact of a reduced operational workforce due to the
continuation of COVID-19 restrictions, and lower concentrator feed grade.
Iron ore (Mt)................. 188.3 59.9 Lower volumes at WAIO reflects weather impacts and planned Ore Handling
4% (4%) Plant and stacker maintenance at Newman, partially offset by improved
car dumper performance.
Metallurgical coal (Mt)....... 28.8 9.6 Queensland Coal volumes in line with prior quarter as operations
(2%) 1% continue to be impacted by significant wet weather events.
Energy coal (Mt).............. 13.0 4.8 Higher volumes at Cerrejon as a result of a strike in the prior period,
(26%) 34% partially offset by lower volumes at NSWEC due to significant wet
weather impacts and increased washed coal in response to reduced port
capacity following damage to a shiploader at the Newcastle port.
Nickel (kt)................... 66.6 20.4 Lower volumes largely as a result of planned maintenance undertaken
19% (15%) at the Kwinana refinery.
Group copper equivalent production was marginally lower over the nine months
ended March 2021. Strong underlying operational performance was offset by the
impacts of planned maintenance, natural field decline, copper grade decline and
adverse weather.
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BHP Operational Review for 1
the nine months ended 31 March 2021
Summary
BHP Chief Executive Officer, Mike Henry:
"BHP's strong safety and operational performance continued during the quarter,
with record year-to-date production at Western Australia Iron Ore, the Goonyella
Riverside metallurgical coal mine in Queensland and concentrator throughput at
Escondida in Chile.
We are reliably executing our major projects, bringing on new supply in copper,
petroleum and iron ore. The Spence Growth Option and Samarco are ramping up and
West Barracouta, in Petroleum, started production this month. First production
from Petroleum's Ruby project is expected in the coming weeks and South Flank,
with its higher grade and lump proportion, is on track to begin production in
the middle of the year.
BHP continues to deliver on decarbonising, in line with the Paris Agreement
goals. We have established emissions reduction partnerships with three major
steelmakers in China and Japan whose combined output equates to around 10 per cent
of global steel production. In shipping, we have successfully completed an
initial trial of marine biofuels, in addition to the tender awarded last year
for LNG-powered iron ore vessels. In our own operations, we have established
significant renewable power supply agreements for our Kwinana nickel refinery,
Queensland Coal operations, and Escondida and Spence copper mines.
With our focus on keeping our people safe, costs down and productivity up, we
are well positioned to finish the year strongly and continue delivering the
essential products the world needs."
Operational performance
Production and guidance are summarised below.
Note: All guidance is subject to further potential impacts from COVID-19 during
the 2021 financial year.
Mar YTD21 Mar Q21 Mar Q21 Previous Current
Mar Mar vs vs vs FY21 FY21
Production YTD21 Q21 Mar YTD20 Mar Q20 Dec Q20 guidance guidance
---------- ------- ------ --------- ------- ------- ------------- ---------------
Petroleum (MMboe)...................... 75.8 25.4 (8%) 1% 7% 95 - 102 95 - 102 Upper half of range
Copper (kt)............................ 1,232.7 391.4 (6%) (8%) (9%) 1,510 - 1,645 1,535 - 1,660
Escondida (kt)...................... 821.5 249.3 (8%) (14%) (13%) 970 - 1,030 1,010 - 1,060 Increased
Pampa Norte (kt).................... 148.8 52.0 (21%) (19%) (4%) 240 - 270 225 - 255 Lowered
Olympic Dam (kt).................... 154.5 55.4 25% 44% 16% 180 - 205 180 - 205 Upper half of range
Antamina (kt)....................... 107.9 34.7 1% 5% (10%) 120 - 140 120 - 140 Upper end of range
Iron ore/(i)/ (Mt)..................... 188.3 59.9 4% 0% (4%) 245 - 255 245 - 255
WAIO (100% basis) (Mt).............. 211.3 66.7 3% (2%) (5%) 276 - 286 276 - 286 Upper half of range
Metallurgical coal (Mt)................ 28.8 9.6 (2%) 4% 1% 40 - 44 39 - 41
Queensland Coal (100% basis) (Mt)... 51.4 17.3 (1%) 8% 2% 71 - 77 70 - 73 Lowered
Energy coal (Mt)....................... 13.0 4.8 (26%) (17%) 34% 21 - 23 18 - 20
NSWEC (Mt).......................... 9.8 3.0 (12%) (22%) (8%) 15 - 17 14 - 15 Lowered
Cerrejon (Mt)....................... 3.2 1.8 (50%) (9%) 417% ~6 4 - 5 Lowered
Nickel (kt)............................ 66.6 20.4 19% (2%) (15%) 85 - 95 85 - 95 Unchanged
(i) Iron ore comprises WAIO and Samarco.
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BHP Operational Review for 2
the nine months ended 31 March 2021
Major development projects
At the end of March 2021, BHP had four major projects under development in
petroleum, iron ore and potash, with a combined budget of US$8.5 billion over
the life of the projects. Our major projects under development are tracking to
plan.
In March 2021, the US Department of Agriculture directed the US Forest Service
to rescind the Resolution Copper Mining (RCM) project's Final Environmental
Impact Statement and the draft Record of Decision that were both issued in
January 2021. BHP supports RCM's collaboration with the US Forest Service, and
its commitment to further consultation with local communities and Native
American tribes in an effort to seek consent, as it continues to study the
project.
The Jansen Stage 1 project in Canada is expected to be presented to the BHP
Board for Final Investment Decision in the middle of the 2021 calendar year.
Corporate update
On 9 April 2021, Samarco announced that it filed for judicial reorganisation
(JR) with the Commercial Courts of Belo Horizonte, State of Minas Gerais,
Brazil. The request for JR was granted by the Belo Horizonte Justice on 12 April
2021. The JR is a means for Samarco to restructure its financial debts in order
to establish a sustainable independent financial position for Samarco to
continue to rebuild its operations safely and meet its Renova Foundation
obligations. Samarco's filing follows unsuccessful attempts to negotiate a debt
restructure with financial creditors and multiple legal actions filed by those
creditors which threaten Samarco's operations. Samarco's operations will
continue during the JR and restructure process. The JR does not affect Samarco's
obligation or commitment to make full redress for the 2015 Fundao dam failure,
and it does not impact Renova Foundation's ability to undertake that remediation
and compensation.
In February 2021, we signed a memorandum of understanding (MOU) with a large
Japanese steel producer, JFE, to jointly study technologies and pathways capable
of making material reductions to greenhouse gas emissions from the integrated
steelmaking process. We have agreed to invest up to US$15 million over the
five-year partnership.
In March 2021, we also signed a MOU with China's HBIS Group Co., Ltd (HBIS), one
of the world's largest steelmakers and one of our major customers of iron ore,
with the intention to invest up to US$15 million over three years to jointly
study and explore greenhouse gas emissions reduction technologies and pathways.
The three-year partnership intends to collaborate on three priority areas:
hydrogen-based direct reduction technology, the recycling and reuse of
steelmaking slag, and the role of iron ore lump utilisation to help reduce
emissions from ironmaking and steelmaking.
The partnerships with JFE and HBIS follow other investments to support the
reduction of value chain emissions, including up to US$35 million for the
collaboration with China's largest steelmaker, China Baowu (November 2020),
awarding our first LNG-fuelled Newcastlemax bulk carriers contract (September
2020), with the aim to reduce CO\2\-e emissions by 30 per cent per voyage and a
successfully completed marine biofuel trial which enables us to develop an
informed strategy on the structural supply and use of biofuels to support our
key shipping routes (April 2021). The advanced biofuel reduces CO\2\-e emissions
by 80 to 90 per cent well-to-exhaust compared with heavy fuel oil (HFO) and
very-low sulphur fuel oil (VLSFO), and uses sustainable waste and residue
streams as feedstock.
In February 2021, we also executed a 10-year PPA contract with Merredin Solar
Farm to supply up to 50 per cent of the Nickel West Kwinana Refinery electricity
needs by 2024, based on 2020 financial year levels. This contract will further
increase the sustainability of the nickel produced by Nickel West and will help
to reduce emissions from electricity at the refinery by up to 50 per cent.
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BHP Operational Review for 3
the nine months ended 31 March 2021
Petroleum
Production
Mar YTD21 Mar Q21 Mar Q21
vs vs vs
Mar YTD21 Mar Q21 Mar YTD20 Mar Q20 Dec Q20
--------- ------- --------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe)... 33.8 11.6 (10%) 0% 8%
Natural gas (bcf)....................................... 252.0 82.6 (7%) 2% 5%
Total petroleum production (MMboe)...................... 75.8 25.4 (8%) 1% 7%
Petroleum - Total petroleum production decreased by eight per cent to 76 MMboe.
Guidance for the 2021 financial year remains unchanged at between 95 and 102
MMboe, with volumes expected to be in the upper half of the guidance range.
Crude oil, condensate and natural gas liquids production decreased by 10 per
cent to 34 MMboe reflecting lower demand at Bass Strait and North West Shelf,
and production impacts at Atlantis due to planned tie-in and commissioning
activities in the first half of the year and unplanned downtime in the March
2021 quarter, as well as natural field decline across the portfolio. Production
was further impacted by higher downtime at our Gulf of Mexico assets due to a
more active hurricane season in the first half of the year. These impacts were
partially offset by the earlier than scheduled achievement of first production
from the Atlantis Phase 3 project in the September 2020 quarter and the
acquisition of an additional 28 per cent working interest in Shenzi, completed
on 6 November 2020.
Natural gas production decreased by seven per cent to 252 bcf, reflecting
planned shutdowns at Angostura related to the Ruby tie-in, a decrease in tax
barrels at Trinidad and Tobago in accordance with the terms of our Production
Sharing Contract, lower domestic gas sales at Bass Strait and North West Shelf
in the first half of the year, and natural field decline across the portfolio.
This decline was partially offset by higher domestic gas sales at Macedon.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ---------------------------------------
Ruby 283 H1 CY21 Five production wells tied back into Ahead of schedule and on budget.
(Trinidad & Tobago) existing operated processing The overall project is 78% complete.
68.46% (operator) facilities, with capacity to produce
up to 16,000 gross barrels of oil per
day and 80 million gross standard
cubic feet of natural gas per day.
Mad Dog Phase 2 2,154 Mid-CY22 New floating production facility with On schedule and budget.
(US Gulf of Mexico) the capacity to produce up to 140,000 The overall project is 90% complete.
23.9% (non-operator) gross barrels of crude oil per day.
The Bass Strait West Barracouta project is on schedule and budget, and achieved
first production in April 2021.
In March 2021, we successfully completed the drilling of Shenzi North GC608 development
well which is within the Wilding discovery, and commenced drilling of the first of two
Shenzi infill wells which is expected to be completed in the June 2021 quarter. A second
Shenzi infill well is planned to be drilled in the June 2021 quarter. The successful
acquisition of an increased working interest in Shenzi in November 2020 realises further
value from the continued Shenzi development.
The Mad Dog Phase 2 project achieved a major milestone in April 2021 as the
semi-submersible floating production platform, Argos, arrived in the US from
South Korea. The platform will undergo final preparatory work and regulatory
inspections before being towed offshore for installation. First production from
Mad Dog Phase 2 is expected in the middle of the 2022 calendar year.
Petroleum exploration
No exploration and appraisal wells were drilled during the March 2021 quarter.
Petroleum exploration expenditure for nine months ended March 2021 was US$230
million, of which US$211 million was expensed. Our exploration and appraisal
program for the 2021 financial year is now expected to be approximately US$400
million (reduced from US$450 million), due to appraisal well phasing through
the June 2021 quarter and the September 2021 quarter..
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BHP Operational Review for 4
the nine months ended 31 March 2021
Copper
Production
Mar YTD21 Mar Q21 Mar Q21
vs vs vs
Mar YTD21 Mar Q21 Mar YTD20 Mar Q20 Dec Q20
--------- ------- --------- ------- -------
Copper (kt)............ 1,232.7 391.4 (6%) (8%) (9%)
Zinc (t)............... 109,606 33,299 47% 5% (21%)
Uranium (t)............ 2,653 834 0% 7% (12%)
Copper - Total copper production decreased by six per cent to 1,233 kt. Guidance
for the 2021 financial year increased to between 1,535 and 1,660 kt from
between 1,510 and 1,645 kt.
For the nine months to March 2021, our Chilean assets continued to operate with
a substantial reduction in their operational workforces as a result of COVID-19
restrictions. The operating environment across our Chilean assets is expected to
become more challenging in the June 2021 quarter, given escalating COVID-19
infections, increased pressures on Chile's health system and border
restrictions. Reductions in our on-site workforce are forecast to remain
substantial.
Escondida copper production decreased by eight per cent to 821 kt with record
concentrator throughput of 378 ktpd achieved offset by the impact of lower
concentrator feed grade and lower cathode volumes. Concentrator throughput
continues to be prioritised over cathode production as a result of the reduced
operational workforce and to prioritise yield of ore. Guidance for the 2021
financial year has been increased to between 1,010 and 1,060 kt from between
970 and 1,030 kt. Production in the 2022 financial year is expected to be
broadly in line with the 2021 financial year guidance and reflects a
continuation of the impacts of COVID-19 and a need to catch up on mine
development due to reduced material movement in the current financial year.
Guidance of an annual average of 1.2 Mt of copper production over the next five
years remains unchanged, with production expected to be weighted towards the
latter years.
On 1 April 2021, Escondida successfully completed negotiations for a new
collective agreement that applies to the Intermel Union of Operators and
Maintainers (Intermel), effective for 24 months from 1 April 2021. Escondida's
collective agreement with Union No1 of Operators and Maintainers expires on 1
August 2021 and negotiations are expected to commence in June 2021.
Pampa Norte copper production decreased by 21 per cent to 149 kt, largely due to
planned maintenance at Spence and the impact of a reduced operational workforce
as a result of COVID-19 restrictions. Guidance for the 2021 financial year has
been lowered to between 225 and 255 kt from between 240 and 270 kt, reflecting
COVID-19 related impacts on the ramp-up of the Spence Growth Option (SGO). SGO
achieved first copper sales, on schedule, in March 2021, following first copper
production in December 2020. The ramp-up to full production capacity at SGO is
still on track and is expected to take approximately 12 months from first
production, following which Spence is expected to average 300 ktpa of production
(including cathodes) over the first four years.
Spence's collective agreement with Union for Operators and Maintainers expires
on 30 May 2021, with negotiations for a new agreement currently underway.
Olympic Dam copper production increased by 25 per cent to 155 kt, reflecting
improved smelter performance and stability. Production for the March 2021
quarter was 55 kt, the highest quarterly production rate in five years. The new
refinery crane is in the final stages of commissioning. Guidance for the 2021
financial year remains unchanged at between 180 and 205 kt, with volumes
expected to be in the upper half of the guidance range. Production in the 2022
financial year is expected to be lower as a result of the major smelter
maintenance campaign planned for the first half of the year.
Antamina copper production increased by one per cent to 108 kt and zinc
production increased by 47 per cent to 110 kt, reflecting higher copper and zinc
head grades. Guidance for the 2021 financial year remains unchanged, with copper
production expected to be at the upper end of the 120 to 140 kt guidance range,
and zinc production of between 140 and 160 kt.
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BHP Operational Review for 5
the nine months ended 31 March 2021
Iron Ore
Production
Mar YTD21 Mar Q21 Mar Q21
vs vs vs
Mar YTD21 Mar Q21 Mar YTD20 Mar Q20 Dec Q20
--------- ------- --------- ------- -------
Iron ore production (kt)...... 188,289 59,855 4% 0% (4%)
Iron ore - Total iron ore production increased by four per cent to 188 Mt.
Guidance for the 2021 financial year remains unchanged at between 245 and 255
Mt. Volumes are expected to be in the upper half of the guidance range as a
result of strong performance at WAIO.
WAIO production increased by three per cent to a nine month record 187 Mt (211
Mt on a 100 per cent basis), reflecting record production at Jimblebar and
strong performance across the supply chain, with improved train cycle times and
car dumper performance and reliability. This record performance was achieved
despite significant weather impacts in December 2020, January 2021 and February
2021, and the planned Mining Area C and South Flank major tie-in activity.
Commissioning activities for South Flank are expected to commence in the June
2021 quarter. Volumes for the 2021 financial year are expected to be in the
upper half of the guidance range of between 244 and 253 Mt (276 and 286 Mt on a
100 per cent basis).
Samarco production was 915 kt, after iron ore pellet production re-commenced at
one concentrator in December 2020. Production for the 2021 financial year is
expected to be between 1 and 2 Mt (BHP share). Production capacity of
approximately 8 Mtpa (100 per cent basis) is expected once operations are
gradually ramped up.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ------------------------------------
South Flank............ 3,061 Mid-CY21 Sustaining iron ore mine to replace On schedule and budget.
(Australia) production from the 80 Mtpa (100 The overall project is 95% complete.
85% per cent basis) Yandi mine.
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BHP Operational Review for 6
the nine months ended 31 March 2021
Coal
Production
Mar YTD21 Mar Q21 Mar Q21
vs vs vs
Mar YTD21 Mar Q21 Mar YTD20 Mar Q20 Dec Q20
--------- ------- --------- ------- -------
Metallurgical coal (kt)........ 28,802 9,590 (2%) 4% 1%
Energy coal (kt)............... 13,014 4,776 (26%) (17%) 34%
Metallurgical coal - Metallurgical coal production decreased by two per cent to
29 Mt (51 Mt on a 100 per cent basis). Guidance for the 2021 financial year has
been reduced to between 39 and 41 Mt (70 and 73 Mt on a 100 per cent basis)
from between 40 and 44 Mt (71 and 77 Mt on a 100 per cent basis) as a result of
significant wet weather impacts during the December 2020 and March 2021
quarters. We continue to monitor for any potential impacts on volumes from
restrictions on coal imports into China.
At Queensland Coal, strong underlying operational performance, including record
stripping at BMA and record production at Goonyella, was offset by significant
wet weather impacts across most operations and planned wash plant maintenance at
Saraji and Caval Ridge in the first half of the year. At South Walker Creek,
production decreased despite record truck and shovel stripping in the March 2021
quarter, as a result of higher strip ratios due to ongoing impacts from
geotechnical constraints and lower yields.
Energy coal - Energy coal production decreased by 26 per cent to 13 Mt.
Following a strike at Cerrejon and prolonged wet weather impacts at NSWEC,
guidance for the 2021 financial year has been reduced to between 18 and 20 Mt
from between 21 and 23 Mt.
NSWEC production decreased by 12 per cent to 9.8 Mt. This decrease reflects
significant weather impacts, with more than double the amount of rainfall year-to-date
compared with the same period in the prior year, including the wettest March on record,
and higher strip ratios. Lower volumes also reflect an increased proportion
of washed coal in response to reduced port capacity (following damage to a
shiploader at the Newcastle port in November 2020) and widening price quality
differentials. Production guidance for the 2021 financial year has been reduced
to between 14 and 15 Mt from between 15 and 17 Mt.
Cerrejon production decreased by 50 per cent to 3.2 Mt largely as a result of a
91-day strike in the first half of the year and subsequent delays to the restart
of production, as well as the impact of a reduced operational workforce due to
COVID-19 restrictions. Guidance for the 2021 financial year has now been reduced
to between 4 and 5 Mt from 6 Mt.
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BHP Operational Review for 7
the nine months ended 31 March 2021
Other
Nickel production
Mar YTD21 Mar Q21 Mar Q21
vs vs vs
Mar YTD21 Mar Q21 Mar YTD20 Mar Q20 Dec Q20
--------- ------- --------- ------- -------
Nickel (kt).................... 66.6 20.4 19% (2%) (15%)
Nickel - Nickel West production increased by 19 per cent to 67 kt as a result of
major quadrennial maintenance shutdowns in the prior period and strong
performance from the new mines. Production for the March 2021 quarter was
impacted by the planned maintenance undertaken at the Kwinana refinery during
the quarter. Guidance for the 2021 financial year remains unchanged at between
85 and 95 kt.
Potash project
Project and Investment
ownership US$M Scope Progress
----------- ---------- ------------------------------------------------- ------------------------------------------
Jansen Potash......... 2,972 Investment to finish the excavation and lining of The project is 91% complete.
(Canada) the production and service shafts, and to
100% continue the installation of essential surface
infrastructure and utilities.
Minerals exploration
Minerals exploration expenditure for the nine months to March 2021 was US$126
million, of which US$83 million was expensed. Greenfield minerals exploration is
predominantly focused on advancing copper targets within Chile, Ecuador, Mexico,
Peru, Canada, Australia and the south-west United States.
Drilling for copper targets is underway in the United States, Ecuador, and
Chile. Further drilling is anticipated for copper in Peru and for nickel in
Australia during the 2021 calendar year. At Oak Dam in South Australia, next
stage resource definition drilling to inform future design is expected to
commence around the middle of the 2021 calendar year.
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BHP Operational Review for 8
the nine months ended 31 March 2021
Variance analysis relates to the relative performance of BHP and/or its
operations during the nine months ended March 2021 compared with the nine months
ended March 2020, unless otherwise noted. Production volumes, sales volumes and
capital and exploration expenditure from subsidiaries are reported on a 100 per
cent basis; production and sales volumes from equity accounted investments and
other operations are reported on a proportionate consolidation basis. Numbers
presented may not add up precisely to the totals provided due to rounding.
Copper equivalent production based on 2020 financial year average realised
prices.
The following footnotes apply to this Operational Review:
(1) 2021 financial year unit cost guidance: Petroleum US$11-12/boe,
Escondida US$0.95-1.10/lb, (previously US$1.00-1.25/lb),
WAIO US$13-14/t and Queensland Coal US$74-78/t; (previously US$69-75/t);
based on exchange rates of AUD/USD 0.70 and USD/CLP 769.
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 barrels of oil per day (MMbpd);
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 barrels of oil equivalent per day (Mboe/d); 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', the 'Group', 'BHP Group', 'we', 'us', 'our'
and ourselves' are used to refer to BHP Group Limited, BHP Group plc and, except
where the context otherwise requires, their respective subsidiaries as defined
in note 29 `Subsidiaries' in section 5.1 of BHP's 30 June 2020 Annual Report and
Form 20-F. Those terms do not include non-operated assets. Notwithstanding that
this release may include production, financial and other information from
non-operated assets, non-operated assets are not included in the BHP Group and,
as a result, statements regarding our operations, assets and values apply only
to our operated assets unless stated otherwise. Our non-operated assets include
Antamina, Cerrejon, Samarco, Atlantis, Mad Dog, Bass Strait and North West
Shelf. BHP Group cautions against undue reliance on any forward-looking
statement or guidance in this release, particularly in light of the current
economic climate and significant volatility, uncertainty and disruption arising
in connection with COVID-19. These forward looking statements are based on
information available as at the date of this release and are not guarantees or
predictions of future performance and involve known and unknown risks,
uncertainties and other factors, many of which are beyond our control and which
may cause actual results to differ materially from those expressed in the
statements contained in this release.
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BHP Operational Review for 9
the nine months ended 31 March 2021
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BHP Operational Review for 10
the nine months ended 31 March 2021
Production summary
Quarter ended Year to date
------------------------------------ ---------------
Mar Jun Sep Dec Mar Mar Mar
BHP 2020 2020 2020 2020 2021 2021 2020
interest ------ ------- ------- ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Production
Crude oil, condensate and NGL (Mboe)... 11,589 11,355 11,507 10,729 11,601 33,837 37,508
Natural gas (bcf)...................... 80.7 89.8 90.9 78.5 82.6 252.0 269.8
------ ------- ------- ------ ------ ------- -------
Total (Mboe)........................... 25,039 26,322 26,657 23,812 25,368 75,837 82,475
------ ------- ------- ------ ------ ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/........................ 57.5% 220.1 228.5 236.7 236.7 202.7 676.1 697.4
Pampa Norte /(4)/...................... 100.0% -- -- -- 0.7 5.6 6.3 --
Antamina............................... 33.8% 32.9 17.8 34.6 38.6 34.7 107.9 106.7
------ ------- ------- ------ ------ ------- -------
Total.................................. 253.0 246.3 271.3 276.0 243.0 790.3 804.1
------ ------- ------- ------ ------ ------- -------
Cathode (kt)
Escondida /(3)/........................ 57.5% 69.6 65.5 47.9 50.9 46.6 145.4 193.9
Pampa Norte /(4)/...................... 100% 64.3 54.5 42.5 53.6 46.4 142.5 188.2
Olympic Dam............................ 100% 38.4 47.6 51.5 47.6 55.4 154.5 124.0
------ ------- ------- ------ ------ ------- -------
Total.................................. 172.3 167.6 141.9 152.1 148.4 442.4 506.1
------ ------- ------- ------ ------ ------- -------
------ ------- ------- ------ ------ ------- -------
Total copper (kt)......................... 425.3 413.9 413.2 428.1 391.4 1,232.7 1,310.2
------ ------- ------- ------ ------ ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................... 33.8% 621 262 690 993 468 2,151 1,409
------ ------- ------- ------ ------ ------- -------
Total.................................. 621 262 690 993 468 2,151 1,409
------ ------- ------- ------ ------ ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................... 33.8% 31,789 13,736 34,398 41,909 33,299 109,606 74,726
------ ------- ------- ------ ------ ------- -------
Total.................................. 31,789 13,736 34,398 41,909 33,299 109,606 74,726
------ ------- ------- ------ ------ ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/........................ 57.5% 35,990 43,422 42,332 47,789 37,954 128,075 134,000
Olympic Dam (refined gold)............. 100% 33,235 34,150 36,608 23,837 37,075 97,520 111,822
------ ------- ------- ------ ------ ------- -------
Total.................................. 69,225 77,572 78,940 71,626 75,029 225,595 245,822
------ ------- ------- ------ ------ ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/........................ 57.5% 1,390 1,599 1,580 1,627 1,318 4,525 4,814
Antamina............................... 33.8% 1,216 626 1,326 1,767 1,463 4,556 3,490
Olympic Dam (refined silver)........... 100% 241 295 157 193 275 625 689
------ ------- ------- ------ ------ ------- -------
Total.................................. 2,847 2,520 3,063 3,587 3,056 9,706 8,993
------ ------- ------- ------ ------ ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam............................ 100% 776 1,016 874 945 834 2,653 2,662
------ ------- ------- ------ ------ ------- -------
Total.................................. 776 1,016 874 945 834 2,653 2,662
------ ------- ------- ------ ------ ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................... 33.8% 491 243 284 192 276 752 1,423
------ ------- ------- ------ ------ ------- -------
Total.................................. 491 243 284 192 276 752 1,423
------ ------- ------- ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 11
the nine months ended 31 March 2021
Production summary
Quarter ended Year to date
------------------------------------ ---------------
Mar Jun Sep Dec Mar Mar Mar
BHP 2020 2020 2020 2020 2021 2021 2020
interest ------ ------- ------- ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
Newman................................. 85% 16,449 17,110 16,410 17,637 14,614 48,661 48,531
Area C Joint Venture................... 85% 12,179 13,973 11,889 11,567 13,010 36,466 37,526
Yandi Joint Venture.................... 85% 17,491 19,087 17,666 16,413 16,112 50,191 50,175
Jimblebar /(6)/........................ 85% 13,911 16,559 20,075 16,740 15,241 52,056 45,195
Wheelarra.............................. 85% -- -- -- -- -- -- 3
Samarco................................ 50% -- -- -- 37 878 915 --
------ ------- ------- ------ ------ ------- -------
Total.................................. 60,030 66,729 66,040 62,394 59,855 188,289 181,430
------ ------- ------- ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt) /(7)/
BMA.................................... 50% 6,869 9,078 7,365 7,539 7,727 22,631 22,497
BHP Mitsui Coal /(8)/.................. 80% 2,353 2,536 2,325 1,983 1,863 6,171 7,007
------ ------- ------- ------ ------ ------- -------
Total.................................. 9,222 11,614 9,690 9,522 9,590 28,802 29,504
------ ------- ------- ------ ------ ------- -------
Energy coal
Production (kt)
NSW Energy Coal........................ 100% 3,810 4,887 3,624 3,229 2,981 9,834 11,165
Cerrejon............................... 33.3% 1,978 767 1,038 347 1,795 3,180 6,348
------ ------- ------- ------ ------ ------- -------
Total.................................. 5,788 5,654 4,662 3,576 4,776 13,014 17,513
------ ------- ------- ------ ------ ------- -------
Other
Nickel
Saleable production (kt)
Nickel West /(9)/...................... 100% 20.9 23.9 22.2 24.0 20.4 66.6 56.2
------ ------- ------- ------ ------ ------- -------
Total.................................. 20.9 23.9 22.2 24.0 20.4 66.6 56.2
------ ------- ------- ------ ------ ------- -------
Cobalt
Saleable production (t)
Nickel West............................ 100% 132 312 238 236 273 747 463
------ ------- ------- ------ ------ ------- -------
Total.................................. 132 312 238 236 273 747 463
------ ------- ------- ------ ------ ------- -------
(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 1,000 Mboe.
(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 12
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate....................... (Mboe) 926 1,231 1,305 1,003 859 3,167 3,762
NGL............................................ (Mboe) 958 1,493 1,660 1,057 1,035 3,752 4,173
Natural gas.................................... (bcf) 18.4 28.1 34.1 23.4 22.7 80.2 82.8
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 4,957 7,408 8,648 5,960 5,677 20,285 21,741
------- ------- ------- ------- ------- ------- -------
North West Shelf
Crude oil and condensate....................... (Mboe) 1,266 1,260 1,215 1,180 1,183 3,578 3,979
NGL............................................ (Mboe) 191 203 162 165 188 515 593
Natural gas.................................... (bcf) 35.0 35.2 29.6 30.4 31.1 91.1 100.0
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 7,287 7,334 6,310 6,412 6,554 19,276 21,235
------- ------- ------- ------- ------- ------- -------
Pyrenees
Crude oil and condensate....................... (Mboe) 917 971 837 826 679 2,342 2,830
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 917 971 837 826 679 2,342 2,830
------- ------- ------- ------- ------- ------- -------
Other Australia /(2)/
Crude oil and condensate....................... (Mboe) 1 1 1 1 1 3 10
Natural gas.................................... (bcf) 11.2 11.9 12.7 12.6 12.4 37.7 34.6
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,874 1,987 2,118 2,101 2,068 6,287 5,783
------- ------- ------- ------- ------- ------- -------
Atlantis /(3)/
Crude oil and condensate....................... (Mboe) 2,769 2,223 2,421 2,385 2,590 7,396 9,053
NGL............................................ (Mboe) 178 54 154 147 171 472 615
Natural gas.................................... (bcf) 1.3 1.1 1.2 1.1 1.4 3.7 4.5
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 3,170 2,456 2,775 2,715 2,994 8,484 10,424
------- ------- ------- ------- ------- ------- -------
Mad Dog /(3)/
Crude oil and condensate....................... (Mboe) 1,272 1,297 1,211 930 1,209 3,350 3,570
NGL............................................ (Mboe) 55 33 48 38 57 143 156
Natural gas.................................... (bcf) 0.2 0.3 0.2 0.1 0.2 0.5 0.6
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,355 1,374 1,292 985 1,299 3,576 3,821
------- ------- ------- ------- ------- ------- -------
Shenzi /(3)//(4)/
Crude oil and condensate....................... (Mboe) 1,645 1,584 1,395 1,764 2,328 5,487 4,661
NGL............................................ (Mboe) 94 40 71 87 130 288 258
Natural gas.................................... (bcf) 0.3 0.4 0.3 0.3 0.4 1.0 0.8
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,791 1,686 1,516 1,901 2,525 5,942 50,543
------- ------- ------- ------- ------- ------- -------
Trinidad/Tobago
Crude oil and condensate....................... (Mboe) 97 72 102 96 139 337 438
Natural gas.................................... (bcf) 14.0 12.8 12.8 10.5 14.4 37.7 46.1
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 2,427 2,201 2,235 1,846 2,539 6,620 8,118
------- ------- ------- ------- ------- ------- -------
Other Americas /(3)//(5)/
Crude oil and condensate....................... (Mboe) 344 198 212 190 187 589 759
NGL............................................ (Mboe) 22 5 2 11 -- 13 28
Natural gas.................................... (bcf) 0.3 -- -- 0.1 -- 0.1 0.4
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 412 209 214 218 187 619 850
------- ------- ------- ------- ------- ------- -------
Algeria
Crude oil and condensate....................... (Mboe) 854 690 711 849 845 2,405 2,623
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 854 690 711 849 845 2,405 2,623
------- ------- ------- ------- ------- ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 13
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Total production
Crude oil and condensate....................... (Mboe) 10,091 9,527 9,410 9,224 10,020 28,654 31,685
NGL............................................ (Mboe) 1,498 1,828 2,097 1,505 1,581 5,183 5,823
Natural gas.................................... (bcf) 80.7 89.8 90.9 78.5 82.6 252.0 269.8
------- ------- ------- ------- ------- ------- -------
Total.......................................... (Mboe) 25,039 26,322 26,657 23,812 25,368 75,837 82,475
------- ------- ------- ------- ------- ------- -------
(1) Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe.
Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon. Minerva ceased production in
September 2019.
(3) Gulf of Mexico volumes are net of royalties.
(4) BHP completed the acquisition of an additional 28% working interest in
Shenzi on 6 November 2020, taking its total working interest to 72%.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
--------------------------------------------------------------------------------
BHP Operational Review for 14
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined.................................... (kt) 107,268 75,062 83,357 97,274 95,978 276,609 308,351
Sulphide ore milled............................... (kt) 33,440 34,755 34,733 36,303 32,654 103,690 101,055
Average concentrator head grade................... (%) 0.82% 0.81% 0.85% 0.83% 0.78% 0.82% 0.85%
Production ex mill................................ (kt) 230.0 236.8 243.9 246.1 207.8 697.8 721.1
Production
Payable copper.................................... (kt) 220.1 228.5 236.7 236.7 202.7 676.1 697.4
Copper cathode (EW)............................... (kt) 69.6 65.5 47.9 50.9 46.6 145.4 193.9
- Oxide leach.................................... (kt) 29.3 26.8 15.3 18.0 16.1 49.4 79.5
- Sulphide leach................................. (kt) 40.2 38.7 32.6 32.9 30.5 96.0 114.4
------- ------- ------- ------- ------- ------- -------
Total copper...................................... (kt) 289.7 294.0 284.6 287.6 249.3 821.5 891.3
------- ------- ------- ------- ------- ------- -------
Payable gold concentrate.......................... (troy oz) 35,990 43,422 42,332 47,789 37,954 128,075 134,000
Payable silver concentrate........................ (troy koz) 1,390 1,599 1,580 1,627 1,318 4,525 4,814
Sales
Payable copper.................................... (kt) 212.0 221.0 237.1 244.3 196.9 678.3 682.5
Copper cathode (EW)............................... (kt) 65.9 72.1 46.5 47.7 49.6 143.8 188.8
Payable gold concentrate.......................... (troy oz) 35,990 43,422 42,332 47,789 37,954 128,075 134,000
Payable silver concentrate........................ (troy koz) 1,390 1,599 1,580 1,627 1,318 4,525 4,814
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined.................................... (kt) 18,710 15,734 12,618 6,750 6,153 25,521 51,883
Ore milled........................................ (kt) 4,574 4,553 4,036 3,562 3,283 10,881 13,578
Average copper grade.............................. (%) 0.54% 0.60% 0.66% 0.58% 0.58% 0.61% 0.55%
Production
Copper cathode (EW)............................... (kt) 20.4 16.9 15.8 15.8 13.9 45.5 50.6
Sales
Copper cathode (EW)............................... (kt) 18.3 18.7 14.6 16.6 13.2 44.4 48.6
Spence
Material mined.................................... (kt) 23,304 24,082 18,260 18,485 19,195 55,940 67,476
Ore milled /(1)/.................................. (kt) 5,191 2,829 4,408 6,809 8,007 19,224 15,959
Average copper grade /(2)/........................ (%) 0.87% 0.95% 1.10% 0.76% 0.62% 0.78% 0.91%
Production
Payable copper.................................... (kt) -- -- -- 0.7 5.6 6.3 --
Copper cathode (EW)............................... (kt) 43.9 37.6 26.7 37.8 32.5 97.0 137.6
Sales
Payable copper.................................... (kt) -- -- -- -- 1.8 1.8 --
Copper cathode (EW)............................... (kt) 44.8 41.0 24.1 40.9 30.7 95.7 135.8
(1) March 2021 quarter comprised of concentrator throughput of 2,471 kt and
cathode throughput of 5,536 kt. March 2021 year to date comprised of
concentrator throughput of 3,678 kt and cathode throughput of 15,546 kt.
(2) March 2021 quarter weighted average of concentrate grade of 0.58% and
cathode grade of 0.64%. March 2021 year to date weighted average of
concentrate grade of 0.53% and cathode grade of 0.84%.
--------------------------------------------------------------------------------
BHP Operational Review for 15
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%)............................. (kt) 52,872 13,975 45,458 57,029 53,762 156,249 175,395
Sulphide ore milled (100%)........................ (kt) 12,906 6,736 13,202 14,083 12,651 39,936 39,664
Average head grades
- Copper.......................................... (%) 0.88% 0.91% 0.94% 0.97% 0.94% 0.95% 0.94%
- Zinc............................................ (%) 1.09% 1.02% 1.30% 1.30% 1.16% 1.26% 0.90%
Production
Payable copper.................................... (kt) 32.9 17.8 34.6 38.6 34.7 107.9 106.7
Payable zinc...................................... (t) 31,789 13,736 34,398 41,909 33,299 109,606 74,726
Payable silver.................................... (troy koz) 1,216 626 1,326 1,767 1,463 4,556 3,490
Payable lead...................................... (t) 621 262 690 993 468 2,151 1,409
Payable molybdenum................................ (t) 491 243 284 192 276 752 1,423
Sales
Payable copper.................................... (kt) 30.8 18.2 33.8 40.7 31.7 106.2 107.5
Payable zinc...................................... (t) 31,007 11,680 32,769 45,109 34,141 112,019 75,011
Payable silver.................................... (troy koz) 815 581 1,310 1,728 1,342 4,380 3,165
Payable lead...................................... (t) 151 188 748 945 689 2,382 1,427
Payable molybdenum................................ (t) 531 223 392 352 192 936 1,104
Olympic Dam, Australia
Material mined /(1)/.............................. (kt) 1,920 1,928 2,203 2,379 1,979 6,561 6,744
Ore milled........................................ (kt) 2,178 2,416 2,443 2,377 2,238 7,058 6,531
Average copper grade.............................. (%) 2.31% 2.17% 2.03% 2.02% 2.02% 2.02% 2.33%
Average uranium grade............................. (kg/t) 0.69 0.60 0.53 0.60 0.61 0.58 0.68
Production
Copper cathode (ER and EW)........................ (kt) 38.4 47.6 51.5 47.6 55.4 154.5 124.0
Payable uranium................................... (t) 776 1,016 874 945 834 2,653 2,662
Refined gold...................................... (troy oz) 33,235 34,150 36,608 23,837 37,075 97,520 111,822
Refined silver.................................... (troy koz) 241 295 157 193 275 625 689
Sales
Copper cathode (ER and EW)........................ (kt) 41.4 48.5 49.5 46.6 55.6 151.7 122.5
Payable uranium................................... (t) 702 1,293 859 999 779 2,637 2,118
Refined gold...................................... (troy oz) 36,956 37,743 36,054 21,390 38,852 96,296 113,536
Refined silver.................................... (troy koz) 259 270 222 165 242 629 711
(1) Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Operational Review for 16
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia Iron Ore, Australia
Production
Newman............................................ (kt) 16,449 17,110 16,410 17,637 14,614 48,661 48,531
Area C Joint Venture.............................. (kt) 12,179 13,973 11,889 11,567 13,010 36,466 37,526
Yandi Joint Venture............................... (kt) 17,491 19,087 17,666 16,413 16,112 50,191 50,175
Jimblebar /(1)/................................... (kt) 13,911 16,559 20,075 16,740 15,241 52,056 45,195
Wheelarra......................................... (kt) -- -- -- -- -- -- 3
------- ------- ------- ------- ------- ------- -------
Total production.................................. (kt) 60,030 66,729 66,040 62,357 58,977 187,374 181,430
------- ------- ------- ------- ------- ------- -------
Total production (100%)........................... (kt) 68,168 75,589 74,152 70,407 66,695 211,254 205,469
------- ------- ------- ------- ------- ------- -------
Sales
Lump.............................................. (kt) 15,617 17,252 17,056 16,703 15,593 49,352 46,384
Fines............................................. (kt) 44,764 50,904 48,390 46,124 42,939 137,453 136,058
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 60,381 68,156 65,446 62,827 58,532 186,805 182,442
------- ------- ------- ------- ------- ------- -------
Total sales (100%)................................ (kt) 68,439 77,048 73,355 70,772 66,032 210,159 206,211
------- ------- ------- ------- ------- ------- -------
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production........................................ (kt) -- -- -- 37 878 915 --
Sales............................................. (kt) -- -- -- -- 646 646 --
(1) Samarco commenced iron ore pellet production in December 2020 after meeting
the licencing requirements to restart operations at the Germano complex in
Minas Gerais and Ubu complex in Espirito Santo, Brazil.
--------------------------------------------------------------------------------
BHP Operational Review for 17
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal, Australia
Production /(1)/
BMA
Blackwater........................................ (kt) 1,063 1,703 1,184 1,737 1,416 4,337 3,842
Goonyella......................................... (kt) 1,963 2,651 2,312 2,152 2,232 6,696 6,114
Peak Downs........................................ (kt) 1,339 1,635 1,487 1,213 1,595 4,295 4,148
Saraji............................................ (kt) 1,025 1,399 817 1,043 1,238 3,098 3,564
Daunia............................................ (kt) 447 588 490 464 496 1,450 1,582
Caval Ridge....................................... (kt) 1,032 1,102 1,075 930 750 2,755 3,247
------- ------- ------- ------- ------- ------- -------
Total BMA......................................... (kt) 6,869 9,078 7,365 7,539 7,727 22,631 22,497
------- ------- ------- ------- ------- ------- -------
Total BMA (100%).................................. (kt) 13,738 18,156 14,730 15,078 15,454 45,262 44,994
------- ------- ------- ------- ------- ------- -------
BHP Mitsui Coal /(2)/
South Walker Creek................................ (kt) 1,577 1,264 1,238 1,118 1,031 3,387 4,151
Poitrel........................................... (kt) 776 1,272 1,087 865 832 2,784 2,856
------- ------- ------- ------- ------- ------- -------
Total BHP Mitsui Coal............................. (kt) 2,353 2,536 2,325 1,983 1,863 6,171 7,007
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal............................. (kt) 9,222 11,614 9,690 9,522 9,590 28,802 29,504
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal (100%)...................... (kt) 16,091 20,692 17,055 17,061 17,317 51,433 52,001
------- ------- ------- ------- ------- ------- -------
Sales
BMA
Coking coal....................................... (kt) 6,417 7,547 6,187 6,531 6,752 19,470 20,154
Weak coking coal.................................. (kt) 644 1,040 977 936 1,038 2,951 2,249
Thermal coal...................................... (kt) 224 183 58 3 206 267 348
------- ------- ------- ------- ------- ------- -------
Total BMA......................................... (kt) 7,285 8,770 7,222 7,470 7,996 22,688 22,751
------- ------- ------- ------- ------- ------- -------
Total BMA (100%).................................. (kt) 14,570 17,540 14,444 14,940 15,992 45,376 45,501
------- ------- ------- ------- ------- ------- -------
BHP Mitsui Coal /(2)/
Coking coal....................................... (kt) 667 778 671 604 357 1,632 2,004
Weak coking coal.................................. (kt) 1,691 1,756 1,545 1,518 1,404 4,467 5,027
------- ------- ------- ------- ------- ------- -------
Total BHP Mitsui Coal............................. (kt) 2,358 2,534 2,216 2,122 1,761 6,099 7,031
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal............................. (kt) 9,643 11,304 9,438 9,592 9,757 28,787 29,782
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal (100%)...................... (kt) 16,928 20,074 16,660 17,062 17,753 51,475 52,532
------- ------- ------- ------- ------- ------- -------
(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) 3,810 4,887 3,624 3,229 2,981 9,834 11,165
Sales
Export thermal coal............................... (kt) 3,403 4,871 3,168 3,940 2,827 9,935 10,430
Inland thermal coal /(1)/......................... (kt) -- -- -- -- -- -- 567
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 3,403 4,871 3,168 3,940 2,827 9,935 10,997
------- ------- ------- ------- ------- ------- -------
(1) The domestic sales contract ended in the September 2019 quarter.
Cerrejon, Colombia
Production........................................ (kt) 1,978 767 1,038 347 1,795 3,180 6,348
Sales thermal coal - export....................... (kt) 2,028 1,143 994 370 1,746 3,110 6,358
--------------------------------------------------------------------------------
BHP Operational Review for 18
the nine months ended 31 March 2021
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Mar Jun Sep Dec Mar Mar Mar
2020 2020 2020 2020 2021 2021 2020
------- ------- ------- ------- ------- ------- -------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate................................ (kt) 42.8 60.2 64.4 55.7 54.1 174.2 118.0
Average nickel grade.............................. (%) 15.8 16.5 15.8 14.7 13.3 14.7 17.1
Leinster
Nickel concentrate................................ (kt) 57.8 72.0 66.2 72.8 71.5 210.5 181.6
Average nickel grade.............................. (%) 9.8 10.2 9.0 9.5 10.2 9.6 9.5
Saleable production
Refined nickel /(1)//(2)/......................... (kt) 16.6 20.5 17.3 20.4 15.2 52.9 45.1
Intermediates and nickel by-products /(1)//(3)/... (kt) 4.3 3.4 4.9 3.6 5.2 13.7 11.1
------- ------- ------- ------- ------- ------- -------
Total nickel /(1)/................................ (kt) 20.9 23.9 22.2 24.0 20.4 66.6 56.2
------- ------- ------- ------- ------- ------- -------
Cobalt by-products................................ (t) 132 312 238 236 273 747 463
Sales
Refined nickel /(1)//(2)/......................... (kt) 16.8 19.7 17.1 20.9 15.0 53.0 44.4
Intermediates and nickel by-products /(1)//(3)/... (kt) 2.9 4.2 4.6 2.6 5.9 13.1 11.3
------- ------- ------- ------- ------- ------- -------
Total nickel /(1)/................................ (kt) 19.7 23.9 21.7 23.5 20.9 66.1 55.7
------- ------- ------- ------- ------- ------- -------
Cobalt by-products................................ (t) 132 312 238 237 273 748 475
(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.
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BHP Operational Review for 19
the nine months ended 31 March 2021
Date: 21-04-2021 07:05:00
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