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BHP GROUP PLC - Operational Review for the nine months ended 31 March 2019

Release Date: 17/04/2019 07:05
Code(s): BHP     PDF:  
Wrap Text
Operational Review for the nine months ended 31 March 2019

BHP Group Plc
Registration number 3196209
Registered in England and Wales
Share code: BHP
ISIN: GB00BH0P3Z91



 NEWS RELEASE                             LOGO

Release Time      IMMEDIATE

Date              17 April 2019

Release Number    09/19

                             BHP OPERATIONAL REVIEW
                     FOR THE NINE MONTHS ENDED 31 MARCH 2019

.    Production guidance for the 2019 financial year remains unchanged for
     petroleum, copper, metallurgical coal and energy coal. Iron ore production
     guidance decreased to between 265 and 270 Mt (100% basis), reflecting
     impacts of Tropical Cyclone Veronica.

.    Group copper equivalent production/(1)/ was broadly unchanged over the nine
     months ended March 2019, with volumes for the full year also expected to be
     in line with last year.

.    Full year unit costs for Petroleum, Escondida and Queensland Coal are
     expected to be in line with guidance/(2)/. Unit costs for Western Australia
     Iron Ore are now expected to be below US$15 per tonne/(2)/, reflecting
     impacts of Tropical Cyclone Veronica. Unit costs for New South Wales Energy
     Coal are now expected to be approximately US$51 per tonne/(2)/, following
     changes to the mine plan.

.    All major projects under development are tracking to plan.

.    In Petroleum, the Atlantis Phase 3 project in the US Gulf of Mexico was
     approved and the Bele-1 exploration well in Trinidad and Tobago encountered
     hydrocarbons (drilling still in progress) during the quarter.

                                  Mar YTD19     Mar Q19
Production                     (vs Mar YTD18) (vs Dec Q18) Mar Q19 commentary
----------                     -------------- ------------ ------------------

Petroleum (MMboe)/(1)/.........       92            29      Lower seasonal gas sales at Bass Strait partially offset by
                                     (0%)         (-5%)    higher Trinidad and Tobago volumes following maintenance in
                                                           the previous quarter.
Copper (kt)...................    1,245           420      Increased production from Olympic Dam as surface operations
                                    (-3%)         (+1%)    returned to full capacity following acid plant outage in
                                                           August 2018, offset by impact of expected lower copper
                                                           grades at Escondida.
Iron ore (Mt).................      175            56      Volumes at Western Australia Iron Ore (WAIO) reflected the
                                     (0%)         (-3%)    impact of Tropical Cyclone Veronica.
Metallurgical coal (Mt).......       31            10      A solid underlying operating performance at Queensland Coal
                                     (0%)         (-4%)    was offset by the impacts of wet weather.
Energy coal (Mt)..............       20             7      Increased production at New South Wales Energy Coal (NSWEC)
                                     (0%)         (+1%)    was offset by the impact of adverse weather at Cerrejon.

BHP Chief Executive Officer, Andrew Mackenzie, said: "During the March 2019
quarter, we had a strong operational performance despite weather impacts across
Australia and Chile. We approved Atlantis Phase 3 and now have five major
projects under development. Those projects, our work on transformation,
technology and culture, and our successful petroleum and copper exploration and
appraisal programs will grow value and returns for years to come."

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                   BHP Operational Review for              1
                   the nine months ended 31 March 2019

Summary

Operational performance

Production and guidance are summarised below.

                                                    Mar YTD19  Mar Q19   Mar Q19     Previous       Current
                                                        vs        vs       vs          FY19           FY19
Production                        Mar YTD19 Mar Q19 Mar YTD18  Mar Q18   Dec Q18     guidance       guidance
--------------------------------- --------- ------- --------- --------- --------- -------------- --------------
Petroleum (MMboe)................       92      29        0%        3%       (5%)      113 - 118      113 - 118 Upper end of range
Copper (kt)......................    1,245     420       (3%)      (8%)       1%   1,645 - 1,740  1,645 - 1,740          Unchanged
  Escondida......................      848     268       (6%)     (15%)      (6%)  1,120 - 1,180  1,120 - 1,180 Lower end of range
  Other copper/(i)/..............      397     152        1%        7%       15%       525 - 560      525 - 560       Olympic Dam:
                                                                                                                Lower end of range
Iron ore/(ii)/ (Mt)..............      175      56        0%       (3%)      (3%)      241 - 250      235 - 239     Lowered due to
                                                                                                                  Tropical Cyclone
                                                                                                                          Veronica
  WAIO (100% basis)..............      198      64       (2%)      (5%)      (3%)      273 - 283      265 - 270           As above
Metallurgical coal (Mt)..........       31      10        0%       (5%)      (4%)        43 - 46        43 - 46          Unchanged
  Queensland Coal (100% basis)...       54      17       (1%)      (5%)      (3%)        75 - 81        75 - 81          Unchanged
Energy coal (Mt).................       20       7        0%       11%        1%         28 - 29        28 - 29          Unchanged
  NSWEC..........................       13       5        5%       24%        6%         18 - 19        18 - 19          Unchanged
  Cerrejon.......................        7       2       (8%)     (10%)      (7%)             10             10          Unchanged
                                                                       
(i)  Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Increase in BHP's share of volumes reflects the expiry of the Wheelarra
     Joint Venture sublease in March 2018, with control of the sublease area
     reverted to the Jimblebar Joint Venture, which is accounted for on a
     consolidated basis with minority interest adjustments.

Major development projects

During the March 2019 quarter, the BHP Board approved US$696 million (BHP share)
in capital expenditure for the Atlantis Phase 3 project in the US Gulf of
Mexico.

At the end of March 2019, BHP had five major projects under development in
petroleum, copper, iron ore and potash, with a combined budget of US$11.1
billion over the life of the projects.

Petroleum

Production

                                                                           Mar YTD19 Mar Q19 Mar Q19
                                                                              vs        vs      vs
                                                         Mar YTD19 Mar Q19 Mar YTD18 Mar Q18 Dec Q18
                                                         --------- ------- --------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe)...        42      13      (5%)    (5%)    (9%)
Natural gas (bcf).......................................       299      93       4%     12%     (1%)
                                                         --------- ------- --------- ------- -------
Total petroleum production (MMboe)......................        92      29       0%      3%     (5%)
                                                         --------- ------- --------- ------- -------

Petroleum - Total petroleum production was flat at 92 MMboe. Guidance for the
2019 financial year remains unchanged at between 113 and 118 MMboe, with volumes
expected to be towards the upper end of the guidance range.

Crude oil, condensate and natural gas liquids production decreased by five per
cent to 42 MMboe due to natural field decline across the portfolio and a 70 day
planned dry dock maintenance program at Pyrenees completed during the September
2018 quarter. This decline was partially offset by higher uptimes at our Gulf of
Mexico assets and stronger field performance in Atlantis.

Natural gas production increased by four per cent to 299 bcf, reflecting
increased tax barrels at Trinidad and Tobago in accordance with the terms of our
Production Sharing Contract and higher uptime at North West Shelf.

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                   BHP Operational Review for              2
                   the nine months ended 31 March 2019

This was partially offset by planned maintenance at Trinidad and Tobago in the
December 2018 quarter, the impact of Tropical Cyclone Veronica and natural field
decline across the portfolio.

Projects

                           Capital     Initial
Project and              expenditure  production
ownership                   US$M     target date                 Capacity                                 Progress
------------------------ ----------- -----------  -------------------------------------  -----------------------------------------
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 46% complete.
23.9% (non-operator)                              gross barrels of crude oil per day.

Atlantis Phase 3             696         CY20     New subsea production system that      Project approved on 13 February 2019.
(US Gulf of Mexico)                               will tie back to the existing Atlantis
44% (non-operator)                                facility, with capacity to produce up
                                                  to 38,000 gross barrels of oil
                                                  equivalent per day.

On 13 February 2019, the BHP Board approved the development of the Atlantis
Phase 3 project in the US Gulf of Mexico. The project includes a subsea tie back
of eight new production wells and is expected to increase production by an
estimated 38 Mboe/d (100 per cent basis) at its peak. This decision follows
sanction by BP (the operator).

The Bass Strait West Barracouta project is tracking to plan and study work
continues on the Ruby project in Trinidad and Tobago with an investment decision
expected during the 2019 calendar year.

Petroleum exploration

Exploration and appraisal wells drilled during the March 2019 quarter are
summarised below.

                                         Formation                                           Total well
Well          Location          Target      age     BHP equity     Spud date     Water depth    depth   Status
------------- ----------------- ------ ------------ ---------- ----------------- ----------- ---------- --------------------------
Trion-2DEL    Mexico              Oil        Eocene  60% (BHP   15 November 2018   2,379 m     4,659 m  Hydrocarbons encountered;
              Block AE-0093                          Operator)                                          Plugged and abandoned
Trion-2DEL    Mexico              Oil        Eocene  60% (BHP     4 January 2019   2,379 m     5,002 m  Hydrocarbons encountered;
ST01          Block AE-0093                          Operator)                                          Plugged and abandoned
Bele-1        Trinidad & Tobago   Gas      Pliocene  70% (BHP       2 March 2019   2,102 m     3,693 m  Hydrocarbons encountered;
              Block 23(a)                            Operator)                                          Drilling ahead

In Mexico, we spud the Trion-2DEL appraisal well in November 2018 and
encountered oil in line with expectations. This was followed by a downdip
sidetrack which encountered oil and water, as predicted, further appraising the
field and delineating the resource. Following the recent encouraging results in
the Trion block, an additional appraisal well (3DEL), to further delineate the
scale and characterisation of the resource, has been approved and is expected to
be drilled in the second half of the 2019 calendar year.

The Deepwater Invictus rig mobilised to Trinidad and Tobago for Phase 3 of our
deepwater drilling campaign. This includes three wells testing three prospects
in our Northern licences around the Bongos discovery. Bele-1, the first of these
wells, was spud on 2 March 2019 and encountered hydrocarbons. Drilling is still
in progress and our assessment is ongoing.

In the US Gulf of Mexico, following the Samurai-2 discovery in 2018, Murphy, the
Operator, has commenced pre-FEED activities. In the Western US Gulf of Mexico,
our Ocean Bottom Node(3) seismic acquisition survey and node recovery has been
completed. This will be incorporated into our ongoing analysis which we will
continue to progress over the next 24 months.

Petroleum exploration expenditure for the nine months ended March 2019 was
US$438 million, of which US$215 million was expensed. A US$750 million
exploration and appraisal program is being executed for the 2019 financial year.

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                   BHP Operational Review for              3
                   the nine months ended 31 March 2019

Copper

Production

                                                       Mar YTD19 Mar Q19 Mar Q19
                                                          vs       vs      vs
                                    Mar YTD19  Mar Q19 Mar YTD18 Mar Q18 Dec Q18
                                    ---------  ------- --------- ------- -------
   Copper (kt).....................     1,245      420      (3%)    (8%)     1%
   Zinc (t)........................    75,643   20,848     (10%)   (18%)   (14%)
   Uranium (t).....................     2,590    1,106      16%     (1%)    19%

Copper - Total copper production decreased by three per cent to 1,245 kt.
Guidance for the 2019 financial year remains unchanged at between 1,645 and
1,740 kt.

Escondida copper production decreased by six per cent to 848 kt as expected
lower copper grades were partly offset by record concentrator throughput.
Production guidance remains unchanged at between 1,120 and 1,180 kt for the 2019
financial year, with volumes expected to be towards the lower end of the range.

Pampa Norte copper production decreased by 11 per cent to 172 kt and reflects
planned maintenance and a production outage at Spence following a fire at the
electro-winning plant in September 2018, and the impact of heavy rainfall in
northern Chile in February 2019 at both Spence and Cerro Colorado. This was
partially offset by record ore milled at both operations after implementing
maintenance improvement initiatives. Production guidance at Spence and Cerro
Colorado remains unchanged for the 2019 financial year, at between 160 and 
175 kt and 60 and 70 kt respectively.

Olympic Dam copper production increased by 22 per cent to 115 kt as a result of
the major smelter maintenance campaign in the prior period, which was partially
offset by an unplanned acid plant outage in August 2018. Following completion of
the acid plant remediation works, surface operations ramped up between October
2018 and February 2019. Production guidance remains unchanged at between 170 and
180 kt for the 2019 financial year, with volumes expected to be towards the
lower end of the guidance range.

Antamina copper production increased by five per cent to 110 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 47% 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              4
                   the nine months ended 31 March 2019

Iron Ore

Production

                                                  Mar YTD19 Mar Q19 Mar Q19
                                                     vs       vs      vs
                                Mar YTD19 Mar Q19 Mar YTD18 Mar Q18 Dec Q18
                                --------- ------- --------- ------- -------
        Iron ore (kt)...........  175,343  56,117     0%      (3%)    (3%)

Iron ore - Total iron ore production was broadly unchanged at 175 Mt (198 Mt on
a 100 per cent basis). Production guidance for the 2019 financial year has been
reduced to between 235 and 239 Mt, or 265 and 270 Mt on a 100 per cent basis,
reflecting a 6 to 8 Mt impact from Tropical Cyclone Veronica. As a result,
full year unit costs are now expected to be below US$15 per tonne, an increase
from previous guidance of less than US$14 per tonne, due to the lower volumes,
direct costs of remediation, increased demurrage, rehandle to manage stockyards
and opportune maintenance at the mines during port downtime. In addition,
private royalties are also expected to be higher as a function of higher iron
ore prices.

At WAIO, volumes reflected record production at Jimblebar and the impact from
the Mt Whaleback fire in the prior period. This was offset by the impacts of
planned maintenance in the September 2018 quarter, a train derailment on 5
November 2018 and Tropical Cyclone Veronica in March 2019. While our facilities
did not sustain major damage as a result of the cyclone, the port ramp up was
slowed by localised flooding, processing wet material and equipment assessments.

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 overall
(Australia)                                            production from the 80 Mtpa          project is 29% complete.
85%                                                    (100 per cent basis) Yandi mine.

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                   BHP Operational Review for              5
                   the nine months ended 31 March 2019

Coal

Production

                                                    Mar YTD19  Mar Q19   Mar Q19
                                                       vs        vs        vs
                                Mar YTD19  Mar Q19  Mar YTD18  Mar Q18   Dec Q18
                                --------- --------- --------- --------- ---------
     Metallurgical coal (kt)...    30,507    9,877        0%      (5%)      (4%)
     Energy coal (kt)..........    20,058    6,751        0%      11%        1%

Metallurgical coal - Metallurgical coal production was broadly flat at 31 Mt (54
Mt on a 100 per cent basis). Guidance for the 2019 financial year remains
unchanged at between 43 and 46 Mt (75 and 81 Mt on a 100 per cent basis).

At Queensland Coal, increased yields at South Walker Creek and higher wash-plant
throughput at Poitrel following the purchase of the Red Mountain processing
facility supported record production at BMC. Despite record stripping, BMA's
production decreased slightly due to the scheduled longwall move at Broadmeadow
in the December 2018 quarter and unfavourable weather impacts in the March 2019
quarter.

On 27 March 2019, BMA completed the sale of the Gregory Crinum Mine to Sojitz
Corporation.

Energy coal - Energy coal production was broadly flat at 20 Mt. Guidance for the
2019 financial year remains unchanged at approximately 28 to 29 Mt.

New South Wales Energy Coal production increased five per cent supported by
record stripping performance. Production guidance remains unchanged at between
18 and 19 Mt for the 2019 financial year. However, following optimisation of the mine
plan through the construction of Multiple Elevated Roadways (MERs) which will
reduce future cycle times, the focus on higher quality products and challenges with labour hire
attraction and retention, unit costs for New South Wales Energy Coal are now
expected to be approximately US$51 per tonne, an increase from previous
guidance of between US$43 and US$48 per tonne. Ongoing labour hire challenges
are being addressed, including through the initial deployment of BHP Operations
Services in the June 2019 quarter.

Cerrejon production decreased by eight per cent due to adverse weather and its
impacts on mine sequencing. Production guidance remains unchanged at
approximately 10 Mt for the 2019 financial year.

Other

Nickel production

                                                    Mar YTD19  Mar Q19   Mar Q19
                                                       vs        vs        vs
                                Mar YTD19  Mar Q19  Mar YTD18  Mar Q18   Dec Q18
                                --------- --------- --------- --------- ---------
     Nickel (kt)...............     58.7      19.2     (13%)      (9%)        6%

Nickel - Nickel West production decreased by 13 per cent to 59 kt as operations
were suspended following a fire at the Kalgoorlie smelter in September 2018. The
smelter returned to operation on 1 October 2018, with final repairs and ramp up
completed in the March 2019 quarter. 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 and      The project is 83% complete and within the
   (Canada)                        lining of the production and service         approved budget. The main activity for the
   100%                            shafts, and to continue the installation of  quarter remained centred on removing the
                                   essential surface infrastructure and         boring equipment from both shafts.
                                   utilities.

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                   BHP Operational Review for              6
                   the nine months ended 31 March 2019

Minerals exploration

Minerals exploration expenditure for the nine months ended March 2019 was US$122
million, of which US$84 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.

During March 2019, BHP signed a non-binding letter of intent with Luminex for an
earn-in and joint venture agreement on Luminex's Tarqui 1 and 2 mining
concessions in Ecuador. Negotiations to complete a binding agreement will be
undertaken over the next two months.

On 15 April 2019, BHP secured a five per cent interest in Midland Exploration Inc., 
which has copper exploration tenements in Canada.

Following identification in November 2018 of a potential iron oxide, copper and
gold (IOCG) mineralised system at Oak Dam, 65 kilometres to the south east of
Olympic Dam, BHP has commenced a further drilling program to define the extent
of mineralisation.

Variance analysis relates to the relative performance of BHP and/or its
operations during the nine months ended March 2019 compared with the nine months
ended March 2018, 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 2018 financial year average realised
prices.

The following footnotes apply to this Operational Review:
----------
(1) Excludes production from Onshore US.
(2) 2019 financial year unit cost guidance: Petroleum <US$11/boe, Escondida
    <US$1.15/lb, WAIO <US$15/t, Queensland Coal US$68-72/t and NSWEC
    US$51/t; based on exchange rates of AUD/USD 0.75 and USD/CLP 663.
(3) WGOM OBN 2018 Seismic Permit is OCS Permit T18-010.

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 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', `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 27 `Subsidiaries' in section 5.1 of BHP's 30 June 2018 Annual Report and
Form 20-F, unless stated otherwise. 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.

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                   BHP Operational Review for              7
                   the nine months ended 31 March 2019

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                   BHP Operational Review for              8
                   the nine months ended 31 March 2019

Production summary

                                                                   Quarter ended               Year to date
                                                      --------------------------------------- ---------------
                                                       Mar     Jun     Sep     Dec     Mar     Mar     Mar
                                             BHP       2018    2018    2018    2018    2019    2019    2018
                                           interest   ------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Petroleum
Conventional
   Crude oil, condensate and NGL (Mboe)..              13,960  13,486  14,087  14,497  13,236  41,820  43,919
   Natural gas (bcf).....................                82.9    90.7   112.3    93.9    92.9   299.1   286.3
                                                      ------- ------- ------- ------- ------- ------- -------
   Total (Mboe)..........................              27,777  28,603  32,804  30,147  28,719  91,670  91,636
                                                      ------- ------- ------- ------- ------- ------- -------

Copper /(2)/
Copper
Payable metal in concentrate (kt)
   Escondida /(3)/.......................    57.5%      244.9   246.1   240.0   212.6   205.4   658.0   679.7
   Antamina..............................    33.8%       35.2    34.6    37.0    38.3    34.5   109.8   104.9
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................               280.1   280.7   277.0   250.9   239.9   767.8   784.6
                                                      ------- ------- ------- ------- ------- ------- -------

Cathode (kt)
   Escondida /(3)/.......................    57.5%       69.4    70.1    55.4    71.9    62.4   189.7   217.4
   Pampa Norte/(4)/......................     100%       66.8    70.6    43.4    61.8    67.2   172.4   193.2
   Olympic Dam...........................     100%       40.5    42.0    33.3    31.6    50.2   115.1    94.7
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................               176.7   182.7   132.1   165.3   179.8   477.2   505.3
                                                      ------- ------- ------- ------- ------- ------- -------
                                                      ------- ------- ------- ------- ------- ------- -------
Total copper (kt)........................               456.8   463.4   409.1   416.2   419.7 1,245.0 1,289.9
                                                      ------- ------- ------- ------- ------- ------- -------

Lead
Payable metal in concentrate (t)
   Antamina..............................    33.8%        464     546     563     600     456   1,619   2,888
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................                 464     546     563     600     456   1,619   2,888
                                                      ------- ------- ------- ------- ------- ------- -------

Zinc
Payable metal in concentrate (t)
   Antamina..............................    33.8%     25,562  35,983  30,558  24,237  20,848  75,643  83,817
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................              25,562  35,983  30,558  24,237  20,848  75,643  83,817
                                                      ------- ------- ------- ------- ------- ------- -------

Gold
Payable metal in concentrate (troy oz)
   Escondida /(3)/.......................    57.5%     59,953  68,345  63,578  73,726  73,998 211,302 160,757
   Olympic Dam (refined gold)............     100%     28,989  33,497  23,471  17,856  28,609  69,936  58,059
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................              88,942 101,842  87,049  91,582 102,607 281,238 218,816
                                                      ------- ------- ------- ------- ------- ------- -------

Silver
Payable metal in concentrate (troy koz)
   Escondida /(3)/.......................    57.5%      2,339   2,527   1,997   2,570   2,189   6,756   6,269
   Antamina..............................    33.8%      1,189   1,321   1,309   1,178   1,062   3,549   4,116
   Olympic Dam (refined silver)..........     100%        248     278     213     212     230     655     514
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................               3,776   4,126   3,519   3,960   3,481  10,960  10,899
                                                      ------- ------- ------- ------- ------- ------- -------

Uranium
Payable metal in concentrate (t)
   Olympic Dam...........................     100%      1,118   1,123     555     929   1,106   2,590   2,241
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................               1,118   1,123     555     929   1,106   2,590   2,241
                                                      ------- ------- ------- ------- ------- ------- -------

Molybdenum
Payable metal in concentrate (t)
   Antamina..............................    33.8%        420     261     464     417      82     963   1,401
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................                 420     261     464     417      82     963   1,401
                                                      ------- ------- ------- ------- ------- ------- -------

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                   BHP Operational Review for              9
                   the nine months ended 31 March 2019

Production summary

                                                                   Quarter ended               Year to date
                                                      --------------------------------------- ---------------
                                                       Mar     Jun     Sep     Dec     Mar     Mar     Mar
                                             BHP       2018    2018    2018    2018    2019    2019    2018
                                           interest   ------- ------- ------- ------- ------- ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
   Newman................................      85%     16,412  18,500  16,378  17,578  15,608  49,564  48,571
   Area C Joint Venture..................      85%     12,802  12,041  11,696  10,280  11,627  33,603  39,476
   Yandi Joint Venture...................      85%     15,802  17,339  16,870  15,627  15,214  47,711  46,709
   Jimblebar /(6)/.......................      85%      4,669  15,092  16,333  14,320  13,658  44,311  15,535
   Wheelarra.............................      85%      8,006     614     114      30      10     154  24,544
   Samarco...............................      50%         --      --      --      --      --      --      --
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................              57,691  63,586  61,391  57,835  56,117 175,343 174,835
                                                      ------- ------- ------- ------- ------- ------- -------

Coal
Metallurgical coal
Production (kt) /(7)/
   BMA...................................      50%      7,983   9,220   7,744   7,694   7,608  23,046  23,673
   BHP Mitsui Coal /(8)/.................      80%      2,396   2,789   2,614   2,578   2,269   7,461   6,958
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................              10,379  12,009  10,358  10,272   9,877  30,507  30,631
                                                      ------- ------- ------- ------- ------- ------- -------

Energy coal
Production (kt)
   Australia.............................     100%      3,662   6,261   3,982   4,311   4,552  12,845  12,280
   Colombia..............................    33.3%      2,444   2,762   2,658   2,356   2,199   7,213   7,855
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................               6,106   9,023   6,640   6,667   6,751  20,058  20,135
                                                      ------- ------- ------- ------- ------- ------- -------

Other
Nickel
Saleable production (kt)
   Nickel West /(9)/.....................     100%       21.1    25.6    21.4    18.1    19.2    58.7    67.4
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................                21.1    25.6    21.4    18.1    19.2    58.7    67.4
                                                      ------- ------- ------- ------- ------- ------- -------

Cobalt
Saleable production (t)
   Nickel West...........................     100%        240     277     249     154     194     597     783
                                                      ------- ------- ------- ------- ------- ------- -------
   Total.................................                 240     277     249     154     194     597     783
                                                      ------- ------- ------- ------- ------- ------- -------

(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 nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                        -------------------------------------------- -----------------
                                                          Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                          2018     2018     2018     2018     2019     2019     2018
                                                        -------- -------- -------- -------- -------- -------- --------
Petroleum - Conventional /(1)/

Bass Strait
   Crude oil and condensate.................. (Mboe)       1,126    1,361    1,653    1,401      893    3,947    4,454
   NGL....................................... (Mboe)       1,170    1,428    1,840    1,447      849    4,136    4,704
   Natural gas............................... (bcf)         20.5     29.9     35.1     25.2     21.0     81.3     96.0
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        5.7      7.8      9.3      7.0      5.2     21.6     25.2
                                                        -------- -------- -------- -------- -------- -------- --------

North West Shelf
   Crude oil and condensate.................. (Mboe)       1,377    1,267    1,514    1,520    1,431    4,465    4,293
   NGL....................................... (Mboe)         210      186      242      206      193      641      637
   Natural gas............................... (bcf)         35.8     34.2     36.6     37.5     36.6    110.7    108.2
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        7.6      7.2      7.9      8.0      7.7     23.6     23.0
                                                        -------- -------- -------- -------- -------- -------- --------

Pyrenees
   Crude oil and condensate.................. (Mboe)       1,250    1,168      282    1,101      940    2,323    3,970
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        1.3      1.2      0.3      1.1      0.9      2.3      4.0
                                                        -------- -------- -------- -------- -------- -------- --------

Other Australia /(2)/
   Crude oil and condensate.................. (Mboe)           8        7        7        8        6       21       25
   Natural gas............................... (bcf)         13.4     13.9     13.8     13.9     13.0     40.7     42.8
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        2.2      2.3      2.3      2.3      2.2      6.8      7.2
                                                        -------- -------- -------- -------- -------- -------- --------

Atlantis /(3)/
   Crude oil and condensate.................. (Mboe)       3,459    3,471    3,190    3,802    3,888   10,880    9,858
   NGL....................................... (Mboe)         248      217      215      268      275      758      661
   Natural gas............................... (bcf)          1.8      1.5      1.5      1.9      2.0      5.4      5.2
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        4.0      3.9      3.7      4.4      4.5     12.5     11.4
                                                        -------- -------- -------- -------- -------- -------- --------

Mad Dog /(3)/
   Crude oil and condensate.................. (Mboe)       1,140      581    1,270    1,158    1,258    3,686    3,391
   NGL....................................... (Mboe)          55       27       61       54       58      173      171
   Natural gas............................... (bcf)          0.2      0.1      0.2      0.2      0.2      0.6      0.5
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        1.2      0.6      1.4      1.2      1.3      4.0      3.6
                                                        -------- -------- -------- -------- -------- -------- --------

Shenzi /(3)/
   Crude oil and condensate.................. (Mboe)       2,323    2,110    2,016    2,024    1,881    5,921    7,127
   NGL....................................... (Mboe)         140      151      122      121      112      355      465
   Natural gas............................... (bcf)          0.4      0.4      0.4      0.4      0.4      1.2      1.3
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        2.5      2.3      2.2      2.2      2.1      6.5      7.8
                                                        -------- -------- -------- -------- -------- -------- --------

Trinidad/Tobago
   Crude oil and condensate.................. (Mboe)         232      233      447      200      284      931      485
   Natural gas............................... (bcf)         10.0      9.8     24.0     14.0     19.5     57.5     30.2
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        1.9      1.9      4.4      2.5      3.5     10.5      5.5
                                                        -------- -------- -------- -------- -------- -------- --------

Other Americas /(3)//(4)/
   Crude oil and condensate.................. (Mboe)         189      313      207      218      284      709      625
   NGL....................................... (Mboe)           3       22        3        4       18       25       11
   Natural gas............................... (bcf)           --      0.3       --      0.1      0.2      0.3      0.2
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        0.2      0.4      0.2      0.2      0.3      0.8      0.7
                                                        -------- -------- -------- -------- -------- -------- --------

UK /(5)/
   Crude oil and condensate.................. (Mboe)          43       38       36       36       --       72      105
   NGL....................................... (Mboe)          18       18       21       21       --       42       70
   Natural gas............................... (bcf)          0.8      0.6      0.7      0.7       --      1.4      1.9
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        0.2      0.2      0.2      0.2       --      0.3      0.5
                                                        -------- -------- -------- -------- -------- -------- --------

Algeria
   Crude oil and condensate.................. (Mboe)         969      888      961      908      866    2,735    2,867
                                                        -------- -------- -------- -------- -------- -------- --------
   Total petroleum products.................. (MMboe)        1.0      0.9      1.0      0.9      0.9      2.7      2.9
                                                        -------- -------- -------- -------- -------- -------- --------

--------------------------------------------------------------------------------
                   BHP Operational Review for              11
                   the nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                        -------------------------------------------- -----------------
                                                          Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                          2018     2018     2018     2018     2019     2019     2018
                                                        -------- -------- -------- -------- -------- -------- --------
Petroleum - Total /(1)/
   Conventional
   Crude oil and condensate.................. (Mboe)      12,116   11,437   11,583   12,376   11,731   35,690   37,200
   NGL....................................... (Mboe)       1,844    2,049    2,504    2,121    1,505    6,130    6,719
   Natural gas............................... (bcf)         82.9     90.7    112.3     93.9     92.9    299.1    286.3
                                                        -------- -------- -------- -------- -------- -------- --------
   Total..................................... (Mboe)      27,777   28,603   32,804   30,147   28,719   91,670   91,636
                                                        -------- -------- -------- -------- -------- -------- --------

(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) BHP completed the sale of its interest in the Bruce and Keith oil and gas
    fields on 30 November 2018. The sale has an effective date of 1 January
    2018.

--------------------------------------------------------------------------------
                   BHP Operational Review for              12
                   the nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                         -------------------------------------------- -----------------
                                                           Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                           2018     2018     2018     2018     2019     2019     2018
                                                         -------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal unless otherwise stated.

Escondida, Chile /(1)/
   Material mined........................... (kt)         103,385  106,788  107,260  105,580  103,936  316,776  309,623
   Sulphide ore milled...................... (kt)          32,203   31,732   30,513   30,507   32,027   93,047   86,543
   Average concentrator head grade.......... (%)             0.96%    0.96%    0.94%    0.87%    0.82%    0.88%    0.99%
   Production ex mill....................... (kt)           252.6    253.6    241.9    219.9    216.9    678.7    702.5

   Production
   Payable copper........................... (kt)           244.9    246.1    240.0    212.6    205.4    658.0    679.7
   Copper cathode (EW)...................... (kt)            69.4     70.1     55.4     71.9     62.4    189.7    217.4
   - Oxide leach............................ (kt)            24.5     27.1     19.5     23.4     20.9     63.8     74.3
   - Sulphide leach......................... (kt)            44.9     43.0     35.8     48.5     41.5    125.8    143.1
                                                          -------  -------  -------  -------  -------  -------  -------
   Total copper............................. (kt)           314.3    316.2    295.4    284.5    267.8    847.7    897.1
                                                          -------  -------  -------  -------  -------  -------  -------
   Payable gold concentrate................. (troy oz)     59,953   68,345   63,578   73,726   73,998  211,302  160,757
   Payable silver concentrate............... (troy koz)     2,339    2,527    1,997    2,570    2,189    6,756    6,269

   Sales
   Payable copper........................... (kt)           228.3    260.3    216.5    229.2    212.0    657.7    660.1
   Copper cathode (EW)...................... (kt)            61.7     80.9     53.2     72.3     56.6    182.1    207.4
   Payable gold concentrate................. (troy oz)     59,953   68,345   63,578   73,726   73,999  211,303  160,757
   Payable silver concentrate............... (troy koz)     2,339    2,527    1,997    2,570    2,189    6,756    6,269

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

Pampa Norte, Chile
   Cerro Colorado
   Material mined........................... (kt)          17,766   17,918   18,488   19,875   15,561   53,924   59,338
   Ore milled............................... (kt)           4,905    4,833    4,802    5,069    4,277   14,148   13,467
   Average copper grade..................... (%)             0.58%    0.58%    0.53%    0.62%    0.63%    0.59%    0.60%

   Production
   Copper cathode (EW)...................... (kt)            13.6     19.0     14.2     19.4     18.2     51.8     44.3

   Sales
   Copper cathode (EW)...................... (kt)            13.7     20.9     13.8     19.0     15.5     48.3     43.7

   Spence
   Material mined........................... (kt)          21,463   23,103   23,007   21,661   18,632   63,300   66,873
   Ore milled............................... (kt)           5,144    4,009    5,642    5,428    4,376   15,446   15,438
   Average copper grade..................... (%)             1.03%    1.11%    1.21%    1.10%    1.03%    1.12%    1.14%

   Production
   Copper cathode (EW)...................... (kt)            53.2     51.6     29.2     42.4     49.0    120.6    148.9

   Sales
   Copper cathode (EW)...................... (kt)            49.8     57.1     29.7     39.1     46.1    114.9    145.0

--------------------------------------------------------------------------------
                   BHP Operational Review for              13
                   the nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                         -------------------------------------------- -----------------
                                                           Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                           2018     2018     2018     2018     2019     2019     2018
                                                         -------- -------- -------- -------- -------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.

Antamina, Peru
   Material mined (100%).................... (kt)          58,085   59,002   62,470   62,850   57,900  183,220  176,426
   Sulphide ore milled (100%)............... (kt)          12,166   12,973   13,197   12,912   11,466   37,575   38,086
   Average head grades
   - Copper................................. (%)             1.01%    0.91%    0.96%    1.02%    1.04%    1.01%    0.95%
   - Zinc................................... (%)             1.01%    1.19%    1.10%    0.85%    0.87%    0.94%    0.98%

   Production
   Payable copper........................... (kt)            35.2     34.6     37.0     38.3     34.5    109.8    104.9
   Payable zinc............................. (t)           25,562   35,983   30,558   24,237   20,848   75,643   83,817
   Payable silver........................... (troy koz)     1,189    1,321    1,309    1,178    1,062    3,549    4,116
   Payable lead............................. (t)              464      546      563      600      456    1,619    2,888
   Payable molybdenum....................... (t)              420      261      464      417       82      963    1,401

   Sales
   Payable copper........................... (kt)            32.1     36.6     33.6     40.7     33.3    107.6    101.0
   Payable zinc............................. (t)           26,456   33,088   31,822   26,072   20,595   78,489   82,020
   Payable silver........................... (troy koz)     1,052    1,311    1,193    1,236    1,027    3,456    3,997
   Payable lead............................. (t)              859      595      612      649      749    2,010    3,455
   Payable molybdenum....................... (t)              500      388      208      535      256      999    1,361

Olympic Dam, Australia
   Material mined /(1)/..................... (kt)           2,056    2,201    2,044    2,434    2,191    6,669    5,298
   Ore milled............................... (kt)           2,188    2,171    1,242    2,157    2,371    5,770    5,044
   Average copper grade..................... (%)             2.36%    2.12%    2.05%    2.10%    2.22%    2.14%    2.23%
   Average uranium grade.................... (kg/t)          0.71     0.69     0.62     0.62     0.65     0.63     0.62

   Production
   Copper cathode (ER and EW)............... (kt)            40.5     42.0     33.3     31.6     50.2    115.1     94.7
   Payable uranium.......................... (t)            1,118    1,123      555      929    1,106    2,590    2,241
   Refined gold............................. (troy oz)     28,989   33,497   23,471   17,856   28,609   69,936   58,059
   Refined silver........................... (troy koz)       248      278      213      212      230      655      514

   Sales
   Copper cathode (ER and EW)............... (kt)            36.8     46.0     33.9     26.6     47.4    107.9     92.7
   Payable uranium.......................... (t)              509    1,230      765      828      375    1,968    1,527
   Refined gold............................. (troy oz)     20,715   35,714   21,145   17,812   27,574   66,531   61,149
   Refined silver........................... (troy koz)       202      307      216      177      241      634      539

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

--------------------------------------------------------------------------------
                   BHP Operational Review for              14
                   the nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                         -------------------------------------------- -----------------
                                                           Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                           2018     2018     2018     2018     2019     2019     2018
                                                         -------- -------- -------- -------- -------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.

Pilbara, Australia
   Production
   Newman................................... (kt)          16,412   18,500   16,378   17,578   15,608   49,564   48,571
   Area C Joint Venture..................... (kt)          12,802   12,041   11,696   10,280   11,627   33,603   39,476
   Yandi Joint Venture...................... (kt)          15,802   17,339   16,870   15,627   15,214   47,711   46,709
   Jimblebar /(1)/.......................... (kt)           4,669   15,092   16,333   14,320   13,658   44,311   15,535
   Wheelarra................................ (kt)           8,006      614      114       30       10      154   24,544
                                                         -------- -------- -------- -------- -------- -------- --------
   Total production......................... (kt)          57,691   63,586   61,391   57,835   56,117  175,343  174,835
                                                         -------- -------- -------- -------- -------- -------- --------
   Total production (100%).................. (kt)          67,048   72,145   69,342   65,515   63,609  198,466  202,946
                                                         -------- -------- -------- -------- -------- -------- --------

   Sales
   Lump..................................... (kt)          13,993   15,173   15,014   14,020   13,603   42,637   43,034
   Fines.................................... (kt)          44,332   47,730   46,527   44,059   41,981  132,567  130,834
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (kt)          58,325   62,903   61,541   58,079   55,584  175,204  173,868
                                                         -------- -------- -------- -------- -------- -------- --------
   Total sales (100%)....................... (kt)          67,799   71,385   69,421   65,758   62,853  198,032  201,854
                                                         -------- -------- -------- -------- -------- -------- --------

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

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

   Sales.................................... (kt)              25       --       --       10       --       10       39

(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 nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                         -------------------------------------------- -----------------
                                                           Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                           2018     2018     2018     2018     2019     2019     2018
                                                         -------- -------- -------- -------- -------- -------- --------
Coal
Coal production is reported on the basis of saleable product.

Queensland Coal
   Production /(1)/
   BMA
   Blackwater............................... (kt)           1,384    1,849    1,704    1,680    1,484    4,868    4,839
   Goonyella................................ (kt)           2,314    2,639    1,989    1,813    2,141    5,943    5,322
   Peak Downs............................... (kt)           1,723    1,658    1,131    1,685    1,468    4,284    4,692
   Saraji................................... (kt)           1,240    1,201    1,111    1,288    1,250    3,649    3,852
   Daunia................................... (kt)             547      629      620      419      470    1,509    1,927
   Caval Ridge.............................. (kt)             775    1,244    1,189      809      795    2,793    3,041
                                                         -------- -------- -------- -------- -------- -------- --------
   Total BMA................................ (kt)           7,983    9,220    7,744    7,694    7,608   23,046   23,673
                                                         -------- -------- -------- -------- -------- -------- --------
   Total BMA (100%)......................... (kt)          15,966   18,440   15,488   15,388   15,216   46,092   47,346
                                                         -------- -------- -------- -------- -------- -------- --------

   BHP Mitsui Coal /(2)/
   South Walker Creek....................... (kt)           1,490    1,615    1,505    1,636    1,429    4,570    4,414
   Poitrel.................................. (kt)             906    1,174    1,109      942      840    2,891    2,544
                                                         -------- -------- -------- -------- -------- -------- --------
   Total BHP Mitsui Coal.................... (kt)           2,396    2,789    2,614    2,578    2,269    7,461    6,958
                                                         -------- -------- -------- -------- -------- -------- --------
                                                         -------- -------- -------- -------- -------- -------- --------
   Total Queensland Coal.................... (kt)          10,379   12,009   10,358   10,272    9,877   30,507   30,631
                                                         -------- -------- -------- -------- -------- -------- --------
   Total Queensland Coal (100%)............. (kt)          18,362   21,229   18,102   17,966   17,485   53,553   54,304
                                                         -------- -------- -------- -------- -------- -------- --------

   Sales
   Coking coal.............................. (kt)           7,177    8,489    7,356    7,514    7,221   22,091   21,452
   Weak coking coal......................... (kt)           2,598    2,866    2,813    3,058    3,282    9,153    8,564
   Thermal coal............................. (kt)             168       85      141      157      379      677      443
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (kt)           9,943   11,440   10,310   10,729   10,882   31,921   30,459
                                                         -------- -------- -------- -------- -------- -------- --------
   Total (100%)............................. (kt)          17,658   20,162   18,102   18,818   19,176   56,096   53,921
                                                         -------- -------- -------- -------- -------- -------- --------

(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)           3,662    6,261    3,982    4,311    4,552   12,845   12,280

   Sales
   Export thermal coal...................... (kt)           3,181    5,795    3,549    4,809    3,529   11,887   10,851
   Inland thermal coal...................... (kt)             400      160      332      393      302    1,027    1,216
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (kt)           3,581    5,955    3,881    5,202    3,831   12,914   12,067
                                                         -------- -------- -------- -------- -------- -------- --------

Cerrejon, Colombia
   Production............................... (kt)           2,444    2,762    2,658    2,356    2,199    7,213    7,855

   Sales thermal coal - export.............. (kt)           2,480    2,763    2,589    2,297    2,200    7,086    7,617

--------------------------------------------------------------------------------
                   BHP Operational Review for              16
                   the nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                         -------------------------------------------- -----------------
                                                           Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                           2018     2018     2018     2018     2019     2019     2018
                                                         -------- -------- -------- -------- -------- -------- --------
Other
Nickel production is reported on the basis of saleable product

Nickel West, Australia
   Mt Keith
   Nickel concentrate....................... (kt)            44.9     55.6     50.2     44.9     52.5    147.6    149.1
   Average nickel grade..................... (%)             21.3     18.8     18.9     19.8     19.2     57.9     62.1

   Leinster
   Nickel concentrate....................... (kt)            54.7     78.4     78.8     65.3     51.8    195.9    221.0
   Average nickel grade..................... (%)              9.3      9.8      8.4      8.4      9.3     26.1     27.4

   Saleable production
   Refined nickel /(1)//(2)/................ (kt)            19.2     18.5     19.8     16.3     17.6     53.7     52.9
   Intermediates and nickel
      by-products /(1)//(3)/................ (kt)             1.9      7.1      1.6      1.8      1.6      5.0     14.5
                                                         -------- -------- -------- -------- -------- -------- --------
   Total nickel /(1)/....................... (kt)            21.1     25.6     21.4     18.1     19.2     58.7     67.4
                                                         -------- -------- -------- -------- -------- -------- --------

   Cobalt by-products....................... (t)              240      277      249      154      194      597      783

   Sales                                                                                                    --       --
   Refined nickel /(1)//(2)/................ (kt)            19.5     17.5     19.3     17.3     17.9     54.5     53.5
   Intermediates and nickel
      by-products /(1)//(3)/................ (kt)             2.5      6.3      2.2      2.1      0.1      4.4     14.3
                                                         -------- -------- -------- -------- -------- -------- --------
   Total nickel /(1)/....................... (kt)            21.9     23.8     21.5     19.4     18.0     58.9     67.8
                                                         -------- -------- -------- -------- -------- -------- --------
   Cobalt by-products....................... (t)              240      277      249      154      194      597      783

(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 nine months ended 31 March 2019

Production and sales report

                                                                       Quarter ended                   Year to date
                                                         -------------------------------------------- -----------------
                                                           Mar      Jun      Sep      Dec      Mar      Mar      Mar
                                                           2018     2018     2018     2018     2019     2019     2018
                                                         -------- -------- -------- -------- -------- -------- --------
Onshore US - Discontinued operations /(1)//(2)/

Eagle Ford /(3)/
   Crude oil and condensate................. (Mboe)         2,838    3,826    3,256    1,035       --    4,291   10,015
   NGL...................................... (Mboe)         1,555    1,767    1,919      614       --    2,533    5,511
   Natural gas.............................. (bcf)           12.6     13.9     13.8      4.3       --     18.1     40.8
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          6.5      7.9      7.5      2.4       --      9.8     22.3
                                                         -------- -------- -------- -------- -------- -------- --------

Permian /(3)/
   Crude oil and condensate................. (Mboe)         1,398    1,903    1,478      631       --    2,109    3,719
   NGL...................................... (Mboe)           465      770      687      284       --      971    1,512
   Natural gas.............................. (bcf)            4.1      6.4      4.8      1.9       --      6.7     12.2
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          2.5      3.7      3.0      1.2       --      4.2      7.3
                                                         -------- -------- -------- -------- -------- -------- --------

Haynesville /(3)/
   Crude oil and condensate................. (Mboe)            --       --       11       --       --       11        1
   NGL...................................... (Mboe)            --       --       --       --       --       --       --
   Natural gas.............................. (bcf)           28.7     33.1     39.0     13.9       --     52.9     72.2
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          4.8      5.5      6.5      2.3       --      8.8     12.0
                                                         -------- -------- -------- -------- -------- -------- --------

Fayetteville /(4)/
   Natural gas.............................. (bcf)           18.7     19.1     18.6       --       --     18.6     60.8
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          3.1      3.2      3.1       --       --      3.1     10.1
                                                         -------- -------- -------- -------- -------- -------- --------

Onshore US
   Crude oil and condensate................. (Mboe)         4,236    5,729    4,745    1,666       --    6,411   13,735
   NGL...................................... (Mboe)         2,020    2,537    2,606      898       --    3,504    7,023
   Natural gas.............................. (bcf)           64.1     72.5     76.2     20.1       --     96.3    186.0
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (Mboe)        16,939   20,349   20,051    5,914       --   25,965   51,758
                                                         -------- -------- -------- -------- -------- -------- --------

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
    Negative production figures represent finalisation adjustments.
(2) Volumes are net of mineral holder royalties.
(3) BHP completed the sale of its interests in the Eagle Ford, Haynesville and
    Permian assets on 31 October 2018.
(4) BHP completed the sale of its Fayetteville assets on 28 September 2018.

--------------------------------------------------------------------------------
                   BHP Operational Review for              18
                   the nine months ended 31 March 2019
Date: 17/04/2019 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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