Wrap Text
Operational Review for the Half Year Ended 31 December 2019
BHP Group Plc
Registration number 3196209
Registered in England and Wales
Share code: BHP
ISIN: GB00BH0P3Z91
NEWS RELEASE LOGO
Release Time IMMEDIATE
Date 21 January 2020
Release Number 02/20
BHP OPERATIONAL REVIEW
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
. All production and unit cost guidance/(1)/ (based on exchange rates of
AUD/USD 0.70 and USD/CLP 683) remains unchanged for the 2020 financial
year. Escondida unit costs tracking below full year guidance at the
December 2019 half year largely as a result of higher by-product credits.
. Group copper equivalent production was broadly unchanged in the December
2019 half year, with volumes for the full year expected to be slightly
higher than last year.
. All major projects under development are tracking to plan. In Petroleum,
BHP and Woodside signed a non-binding Heads of Agreement to progress the
Scarborough gas development.
. In Copper exploration, the third phase of the drilling program at Oak Dam
in South Australia is in progress and is expected to be completed in the
June 2020 quarter.
. The financial results for the December 2019 half year are expected to
reflect certain items as summarised in the table on page two.
Dec H19 Dec Q19
Production (vs Dec H18) (vs Sep Q19) Dec Q19 vs Sep Q19 commentary
---------- -------------- ------------ -----------------------------
Petroleum (MMboe) ............ 57 28 Lower gas sales at Bass Strait and Trinidad and Tobago, partially
offset by higher volumes from the Gulf of Mexico following Tropical Storm
(9%) (4%) Barry impacts in the prior quarter.
Copper (kt) .................. 885 455 Strong concentrator throughput at Escondida more than offset the impact
7% 6% from social unrest in Chile. Higher production at Olympic Dam following
planned preparatory work in the prior quarter related to the refinery
crane replacement.
Iron ore (Mt) ................ 121 60 Lower volumes at Western Australia Iron Ore (WAIO) due to completion
2% (1%) of a major car dumper maintenance program in October 2019.
Metallurgical coal (Mt) ...... 20 11 Higher volumes following completion of significant planned wash plant
(2%) 17% maintenance activities in the prior quarter.
Energy coal (Mt) ............. 12 6 Higher volumes at New South Wales Energy Coal (NSWEC) as a result of
(12%) 8% a higher average strip ratio in the prior quarter, and higher volumes at
Cerrejon due to adverse weather in the prior quarter.
Nickel (kt) .................. 35 14 Volumes reflected the impact of major quadrennial maintenance activities
(11%) (37%) at the Kwinana refinery and Kalgoorlie smelter.
Mike Henry assumed the role of BHP Chief Executive Officer and Executive
Director on 1 January 2020.
BHP Chief Executive Officer, Mike Henry, said: "We delivered solid operational
performances across the portfolio in the first half of the 2020 financial year,
offsetting the expected impacts of planned maintenance and natural field
decline. Production and cost guidance is unchanged, and we remain on track to
deliver slightly higher production than last year. Our six major development
projects are progressing well, and we continue to advance our exploration
programs in petroleum and copper."
--------------------------------------------------------------------------------
BHP Operational Review for 1
the half year ended 31 December 2019
Summary
Operational performance
Production and guidance are summarised below.
Dec H19 Dec Q19 Dec Q19
Dec Dec vs vs vs FY20
Production H19 Q19 Dec H18 Dec Q18 Sep Q19 guidance
--------------------------------------- ----- ------- ------- ------- ------- ------------ ------------------
Petroleum (MMboe)...................... 57 28 (9%) (6%) (4%) 110 - 116 Lower end of range
Copper (kt)............................ 885 455 7% 9% 6% 1,705 - 1,820
Escondida (kt)....................... 602 309 4% 9% 5% 1,160 - 1,230 Unchanged
Other copper/(i)/(kt)............... 283 147 15% 11% 7% 545 - 590 Unchanged
Iron ore (Mt).......................... 121 60 2% 4% (1%) 242 - 253
WAIO (100% basis) (Mt)............... 137 68 2% 4% (2%) 273 - 286 Unchanged
Metallurgical coal (Mt)................ 20 11 (2%) 6% 17% 41 - 45
Queensland Coal (100% basis) (Mt).... 36 20 0% 9% 21% 73 - 79 Unchanged
Energy coal (Mt)....................... 12 6 (12%) (9%) 8% 24 - 26
NSWEC (Mt)........................... 7 4 (11%) (13%) 5% 15 - 17 Unchanged
Cerrejon (Mt)........................ 4 2 (13%) (2%) 13% ~9 Unchanged
Nickel (kt)............................ 35 14 (11%) (24%) (37%) ~87 Unchanged
(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
Summary of disclosures
BHP expects its December 2019 half year financial results to reflect certain
items as summarised in the table below. The table does not provide a
comprehensive list of all items impacting the period. The financial statements
are the subject of ongoing work that will not be finalised until the release of
the financial results on 18 February 2020. Accordingly the information is
subject to update.
H1 FY20
impact
Description US$M/(i)/ Classification/(ii)/
---------------------------------------------- ---------------------- ----------------------------------
Unit costs for Petroleum, WAIO,
Queensland Coal and NSWEC expected to
be in line with full year guidance ........... Refer footnote/(iii)/ Operating costs
Unit costs for Escondida tracking
below full year guidance in H1 FY20
primarily due to higher by-product
credits ...................................... Refer footnote/(iii)/ (down arrow) Operating costs
Exploration expense (including
petroleum and minerals exploration
programs) .................................... 231 (up arrow) Exploration expense
The Group's adjusted effective tax
rate for H1 FY20 is expected to be at
the lower end of the guidance range
of 33 to 38 per cent ......................... Refer footnote/(iii)/ (down arrow) Taxation expense
Application of IFRS 16 Leases, new
leases, lease payments, remeasurement
of vessel lease contracts/(iv)/ and
inclusion of derivatives in net debt ......... 2,100 - 2,500 (up arrow) Net debt
The Group's net debt target range is
US$12 to US$17 billion, with net debt
expected to remain towards the lower
end of the range in the near term ............ - Net debt
Dividends received from equity
accounted investments ........................ ~110 (up arrow) Operating cash inflow
Dividends paid to non-controlling
interests .................................... ~610 (up arrow) Financing cash outflow
Provision related to cancellation of
power contracts (after taxation) as
part of shift towards 100 per cent
renewable energy at Escondida and
Spence (no cash outflow in H1 FY20) .......... ~500/(V)/ (up arrow) Exceptional item charge
Financial impact on BHP Brasil of the
Samarco dam failure .......................... Refer footnote/(iii)/ (up arrow) Exceptional item charge
(i) Numbers are not tax effected, unless otherwise noted.
(ii) There will be a corresponding balance sheet, cash flow and/or income
statement impact as relevant.
(iii) Financial impact is the subject of ongoing work and is not yet finalised.
(iv) Vessel lease contracts must be remeasured at each reporting date and are
priced with reference to a freight index.
(v) Provision related to cancellation of power contracts of approximately
US$780 million before taxation.
--------------------------------------------------------------------------------
BHP Operational Review for 2
the half year ended 31 December 2019
Major development projects
At the end of December 2019, BHP had six major projects under development in
petroleum, copper, iron ore and potash, with a combined budget of
US$11.4 billion over the life of the projects. All major projects under
development are tracking to plan.
Average realised prices
The average realised prices achieved for our major commodities are summarised
below.
Dec H19 Dec H19 Dec H19
vs vs vs
Average realised prices/(i)/ Dec H19 Dec H18 Jun H19 FY19 Dec H18 Jun H19 FY19
---------------------------- ------- ------- ------- ------ ------- ------- -------
Oil (crude and condensate) (US$/bbl)....... 60.64 69.91 63.29 66.59 (13%) (4%) (9%)
Natural gas (US$/Mscf)/(ii)/............... 4.26 4.67 4.42 4.55 (9%) (4%) (6%)
LNG (US$/Mscf)............................. 7.62 10.19 8.53 9.43 (25%) (11%) (19%)
Copper (US$/lb)............................ 2.60 2.54 2.70 2.62 2% (4%) (1%)
Iron ore (US$/wmt, FOB).................... 78.30 55.62 77.74 66.68 41% 1% 17%
Metallurgical coal (US$/t)................. 140.94 179.82 179.53 179.67 (22%) (21%) (22%)
Hard coking coal (US$/t)/(iii)/.......... 154.01 197.86 201.33 199.61 (22%) (24%) (23%)
Weak coking coal (US$/t)/(iii)/......... 101.06 134.12 126.46 130.18 (25%) (20%) (22%)
Thermal coal (US$/t)/(iv)/................. 58.55 84.15 72.18 77.90 (30%) (19%) (25%)
Nickel metal (US$/t)....................... 15,715 12,480 12,444 12,462 26% 26% 26%
(i) Based on provisional, unaudited estimates. Prices exclude sales from
equity accounted investments, third party product and internal sales, and
represent the weighted average of various sales terms (for example: FOB,
CIF and CFR), unless otherwise noted. Includes the impact of provisional
pricing and finalisation adjustments.
(ii) Includes internal sales.
(iii) Hard coking coal (HCC) refers generally to those metallurgical coals with
a Coke Strength after Reaction (CSR) of 35 and above, which includes coals
across the spectrum from Premium Coking to Semi Hard Coking coals, while
weak coking coal (WCC) refers generally to those metallurgical coals with
a CSR below 35.
(iv) Export sales only; excludes Cerrejon. Includes thermal coal sales from
metallurgical coal mines.
The large majority of iron ore shipments were linked to the index price for the month
of shipment, with price differentials predominantly a reflection of market
fundamentals and product quality. The large majority of metallurgical coal and energy
coal exports were linked to the index price for the month of shipment or sold
on the spot market at fixed or index-linked prices, with price differentials
reflecting product quality.
At 31 December 2019, the Group had 345 kt of outstanding copper sales that were
revalued at a weighted average price of US$2.80 per pound. The final price of
these sales will be determined over the remainder of the 2020 financial year.
In addition, 322 kt of copper sales from the 2019 financial year were subject
to a finalisation adjustment in the current period. The provisional pricing and
finalisation adjustments will increase Underlying EBITDA/(2)/ by US$16 million
in the 2020 financial year and is included in the average realised copper price
in the above table.
Corporate update
In November 2019, BHP approved US$44 million for BHP Brasil's share of the
funding for work related to the restart of one concentrator at Samarco. The
funding will enable the construction of a filtration plant and the commencement
of operation readiness activities. This follows the approval of the Corrective
Operating Licence (LOC) for Samarco's operating activities at its Germano
Complex in October 2019. Restart can occur when the filtration system is
complete and Samarco has met all necessary safety requirements, and will be
subject to final approval by Samarco's shareholders.
In December 2019, BHP agreed to fund a total of US$793 million in further
financial support for the Renova Foundation and Samarco. This comprises
US$581 million to fund the Renova Foundation until 31 December 2020 which will
be offset against the Group's provision for the Samarco dam failure, and a
short-term facility of up to US$212 million/(3)/ to be made available to
Samarco until 31 December 2020.
As at the date of this Operational Review, for the purpose of the December 2019
half year financial results, we are not in a position to provide an update on
the ongoing potential financial impacts on BHP Brasil of the Samarco dam
failure. Any financial impacts will continue to be treated as an exceptional
item.
--------------------------------------------------------------------------------
BHP Operational Review for 3
the half year ended 31 December 2019
Petroleum
Production
Dec H19 Dec Q19 Dec Q19
vs vs vs
Dec H19 Dec Q19 Dec H18 Dec Q18 Sep Q19
------- ------- ------- -------- -------
Crude oil, condensate and natural gas liquids (MMboe)... 26 13 (9%) (7%) 7%
Natural gas (bcf)....................................... 189 89 (8%) (6%) (12%)
Total petroleum production (MMboe)...................... 57 28 (9%) (6%) (4%)
Petroleum - Total petroleum production decreased by nine per cent to 57 MMboe.
Guidance for the 2020 financial year remains unchanged at between 110 and 116
MMboe, with volumes expected to be towards the lower end of the guidance range.
Crude oil, condensate and natural gas liquids production declined by nine per
cent to 26 MMboe due to the impact of Tropical Storm Barry in the Gulf of
Mexico and natural field decline across the portfolio. This decline was
partially offset by higher uptime at Pyrenees following the 70 day dry dock
maintenance program during the September 2018 quarter.
Natural gas production decreased by eight per cent to 189 bcf, reflecting a
decrease in tax barrels at Trinidad and Tobago in accordance with the terms of
our Production Sharing Contract, maintenance at North West Shelf, reduced
domestic gas sales in Western Australia, and natural field decline across the
portfolio.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ---------------------------------------
Atlantis Phase 3 696 CY20 New subsea production system that On schedule and budget. The overall
(US Gulf of Mexico) will tie back to the existing project is 36% complete.
44% (non-operator) Atlantis facility, with capacity to
produce up to 38,000 gross
barrels of oil equivalent per day.
Ruby 283 CY21 Five production wells tied back into On schedule and budget. The overall
(Trinidad & Tobago) existing operated processing project is 13% 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 CY22 New floating production facility On schedule and budget. The overall
(US Gulf of Mexico) with the capacity to produce up to project is 65% complete.
23.9% (non-operator) 140,000 gross barrels of crude oil
per day.
The Bass Strait West Barracouta project is tracking to plan and is expected to
achieve first production in the 2021 calendar year.
On 18 November 2019, BHP and Woodside signed a non-binding Heads of Agreement
to progress the Scarborough gas development which, amongst other terms,
includes agreement on a competitive tariff for gas processing through the Pluto
LNG facility and BHP's election not to exercise its option for an additional
10 per cent of the WA-1-R lease. BHP and Woodside are targeting finalisation of
the required conditional binding agreements by the end of March 2020. A final
investment decision by BHP is expected from the middle of the 2020 calendar
year.
--------------------------------------------------------------------------------
BHP Operational Review for 4
the half year ended 31 December 2019
Petroleum exploration
Exploration and appraisal wells drilled during the December 2019 quarter are
summarised below.
Formation Water Total well
Well Location Target age BHP equity Spud date depth depth Status
------------ ------------------ ------ ------------- ---------- ------------------- --------- ---------- -------------------------
Carnival-1 Trinidad & Tobago Gas Late Miocene 70% (BHP 30 September 2019 2,119 m 4,347 m Dry hole; Plugged and
Block 14 Operator) abandoned
In Trinidad and Tobago, we completed the exploration program on our Northern
licences as part of Phase 4 of our deepwater drilling campaign. The Carnival-1
well was spud on 30 September 2019 and was a dry hole. The well was plugged and
abandoned on 13 October 2019. Development planning studies of the discoveries
in the North are ongoing. Following Carnival-1, the Deepwater Invictus rig
returned to the US Gulf of Mexico where it is currently completing regulatory
abandonment work on Shenzi appraisal and exploration boreholes.
During the December 2019 quarter, we extended our contract for the Deepwater
Invictus rig for an additional year through to May 2021 to support our ongoing
exploration activities.
As reported in the September 2019 Operational Review, we were the apparent
highest bidder on blocks GC124 and GC168 in Green Canyon in the central Gulf of
Mexico and on 18 additional blocks/(4)/ in the western Gulf of Mexico. All
leases were awarded by the Regulator in the December 2019 quarter.
Petroleum exploration expenditure for the December 2019 half year was
US$306 million, of which US$164 million was expensed. A US$0.7 billion
exploration and appraisal program is being executed for the 2020 financial year.
--------------------------------------------------------------------------------
BHP Operational Review for 5
the half year ended 31 December 2019
Copper
Production
Dec H19 Dec Q19 Dec Q19
vs vs vs
Dec H19 Dec Q19 Dec H18 Dec Q18 Sep Q19
------- ------- ------- ------- -------
Copper (kt)......... 885 455 7% 9% 6%
Zinc (t)............ 42,937 22,483 (22%) (7%) 10%
Uranium (t)......... 1,886 949 27% 2% 1%
Copper - Total copper production increased by seven per cent to 885 kt.
Guidance for the 2020 financial year remains unchanged at between 1,705 and
1,820 kt.
Escondida copper production increased by four per cent to 602 kt, with record
average concentrator throughput of 367 ktpd for the half year, driven by
ongoing improvements in maintenance and operational performance under our
Transformation program. This offset expected grade decline and a 5 kt
concentrate production impact related to stoppages associated with the social
unrest in Chile. Including cathodes, the total production impact of the
stoppages is expected to be 7 kt for the 2020 financial year. The Escondida
Water Supply Expansion project was completed in December 2019, on schedule and
budget, further increasing total desalinated water capacity to 3,800 litres per
second. Guidance for the 2020 financial year remains unchanged at between 1,160
and 1,230 kt, with further improvements in concentrator throughput expected to
offset an approximately five per cent reduction in the copper grade of
concentrator feed versus the prior year.
Pampa Norte copper production increased by 18 per cent to 124 kt, reflecting
the impact of a fire at the electro-winning plant at Spence in the prior year.
Guidance for the 2020 financial year remains unchanged at between 230 and
250 kt, including expected grade decline of approximately 10 per cent.
Olympic Dam copper production increased by 32 per cent to 86 kt as a result of
the prior period acid plant outage, partially offset by the impact of planned
preparatory work undertaken in the September 2019 quarter related to the
replacement of the refinery crane. The physical replacement and commissioning
of the refinery crane is scheduled for the March 2020 quarter. Guidance for the
2020 financial year remains unchanged at between 180 and 205 kt.
Antamina copper production decreased by two per cent to 74 kt and zinc
production decreased by 22 per cent to 43 kt, reflecting lower copper and zinc
head grades, in line with the mine plan. Guidance for the 2020 financial year
remains unchanged at approximately 135 kt for copper and approximately 110 kt
for zinc.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ------------------------------------
Spence Growth Option.... 2,460 H1 FY21 New 95 ktpd concentrator is expected On schedule and budget. The overall
(Chile) to increase Spence's payable copper project is 81% complete.
100% in concentrate production by
approximately 185 ktpa in the first
10 years of operation and extend the
mining operations by more than
50 years.
--------------------------------------------------------------------------------
BHP Operational Review for 6
the half year ended 31 December 2019
Iron Ore
Production
Dec H19 Dec Q19 Dec Q19
Dec Dec vs vs vs
H19 Q19 Dec H18 Dec Q18 Sep Q19
------- ------- ------- ------- -------
Iron ore production (kt)...... 121,400 60,395 2% 4% (1%)
------- ------- ------- ------- -------
Iron ore - Total iron ore production increased by two per cent to 121 Mt
(137 Mt on a 100 per cent basis). Guidance for the 2020 financial year remains
unchanged at between 242 and 253 Mt (273 and 286 Mt on a 100 per cent basis),
with a stronger second half performance expected in line with our plans.
At WAIO, higher volumes reflected record production at Jimblebar and the impact
of the train derailment in the December 2018 half year. This was partly offset
by a major car dumper maintenance campaign (completed on 16 October 2019) to
further improve port reliability and provide a stable base for our tightly
coupled supply chain. Mine operations continued to deliver consistent
performance.
Consistent with our revised mine plan, we expect Jimblebar fines Fe grade to
improve in the second half of the 2020 financial year, with the typical
specification returning to above 60 per cent in the June 2020 quarter.
Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.
Approval of the Corrective Operating Licence (LOC) for Samarco's operating
activities at its Germano Complex was received in October 2019 and operation
readiness activities for restart have commenced. Restart can occur when the
filtration system is complete and Samarco has met all necessary safety
requirements, and will be subject to final approval by Samarco's shareholders.
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 (100 per cent project is 58% complete.
85% basis) Yandi mine.
--------------------------------------------------------------------------------
BHP Operational Review for 7
the half year ended 31 December 2019
Coal
Production
Dec H19 Dec Q19 Dec Q19
Dec Dec vs vs vs
H19 Q19 Dec H18 Dec Q18 Sep Q19
------- ------- ------- ------- -------
Metallurgical coal (kt)....... 20,282 10,924 (2%) 6% 17%
Energy coal (kt).............. 11,725 6,078 (12%) (9%) 8%
Metallurgical coal - Metallurgical coal production was down two per cent to 20
Mt (36 Mt on a 100 per cent basis). Guidance for the 2020 financial year
remains unchanged at between 41 and 45 Mt (73 and 79 Mt on a 100 per cent
basis), with a stronger second half performance expected in line with our plans.
At Queensland Coal, strong underlying operational performance at Poitrel, Peak
Downs, Caval Ridge and Broadmeadow was offset by planned major wash plant
shutdowns at Goonyella, Peak Downs and Caval Ridge, low opening raw coal
inventories at Blackwater, and truck and shovel underperformance at South
Walker Creek.
Energy coal - Energy coal production decreased by 12 per cent to 12 Mt.
Guidance for the 2020 financial year remains unchanged at between 24 and 26 Mt.
New South Wales Energy Coal production decreased by 11 per cent to 7 Mt as a
result of the change in product strategy to focus on higher quality products.
Smoke from regional bushfires and dust have reduced air quality at our
operations, which has impacted December 2019 production. We are monitoring the
situation and if air quality continues to deteriorate then operations could be
constrained further in the second half of the year. Guidance for the 2020
financial year remains unchanged at between 15 and 17 Mt.
Cerrejon production decreased by 13 per cent to 4 Mt as a result of a focus on
higher quality products, in line with the mine plan, and the impact of adverse
weather in the September 2019 quarter. Guidance for the 2020 financial year
remains unchanged at approximately 9 Mt.
--------------------------------------------------------------------------------
BHP Operational Review for 8
the half year ended 31 December 2019
Other
Nickel production
Dec H19 Dec Q19 Dec Q19
Dec Dec vs vs vs
H19 Q19 Dec H18 Dec Q18 Sep Q19
------- ------- ------- ------- -------
Nickel (kt)................... 35.3 13.7 (11%) (24%) (37%)
Nickel - Nickel West production decreased by 11 per cent to 35 kt due to the
major quadrennial maintenance shutdowns at the Kwinana refinery and the
Kalgoorlie smelter, as well as planned routine maintenance at the
concentrators, in the December 2019 quarter. Guidance for the 2020 financial
year remains unchanged, with production expected to be broadly in line with the
2019 financial year.
Operations Services - In Australia, Operations Services has now been deployed
at 13 locations across WAIO, Queensland Coal and NSWEC, with over 1,500
permanent jobs created. Deployments are successfully accelerating safety and
productivity outcomes.
Potash project
Project and Investment
ownership US$M Scope Progress
----------- ---------- ------------------------------------------------- ------------------------------------------
Jansen Potash ..... 2,700 Investment to finish the excavation and lining The project is 85% complete and within
(Canada) of the production and service shafts, and to the approved budget. Final shaft lining
100% continue the installation of essential surface work is continuing.
infrastructure and utilities.
Minerals exploration
Minerals exploration expenditure for the December 2019 half year was
US$84 million, of which US$67 million was expensed. Greenfield minerals
exploration is predominantly focused on advancing copper targets within Chile,
Ecuador, Mexico, Peru, Canada, South Australia and the south-west United States.
Consistent with our focus on copper, in November 2019, BHP increased its
interest in SolGold Plc, the majority owner and operator of the Cascabel
porphyry copper-gold project in Ecuador, by 3.6 per cent to 14.7 per cent.
At Oak Dam in South Australia, the third phase of the drilling program
commenced in November 2019 and is expected to be completed in the June 2020
quarter. This follows encouraging results from the previous drilling phases,
which confirmed high-grade mineralised intercepts of copper, with associated
gold, uranium and silver.
Variance analysis relates to the relative performance of BHP and/or its
operations during the December 2019 half year compared with the December 2018
half year, unless otherwise noted. Production volumes, sales volumes and
capital and exploration expenditure from subsidiaries are reported on a 100 per
cent basis; production and sales volumes from equity accounted investments and
other operations are reported on a proportionate consolidation basis. Numbers
presented may not add up precisely to the totals provided due to rounding.
Copper equivalent production based on 2019 financial year average realised
prices.
The following footnotes apply to this Operational Review:
--------
(1) 2020 financial year unit cost guidance: Petroleum US$10.50-11.50/boe,
Escondida US$1.20-1.35/lb, WAIO US$13-14/t, Queensland Coal US$67-74/t and
NSWEC US$55-61/t; based on exchange rates of AUD/USD 0.70 and USD/CLP 683.
(2) Underlying EBIT and Underlying EBITDA are used to reflect the underlying
performance of BHP. Underlying EBIT is earnings before net finance costs,
taxation and any exceptional items. Underlying EBITDA is Underlying EBIT
before depreciation, amortisation and impairment.
(3) Short-term facility of up to US$212 million includes US$2 million related to
the decommissioning of the Germano dam which will be offset against the
Group's provision.
(4) We were the apparent high bidder on 18 additional blocks: GB630, GB574,
GB575, GB619, GB676, GB677, EB655, EB656, EB701, GB762, GB805, GB806, GB851,
GB852, GB895, GB672, GB716 and GB760.
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 28 'Subsidiaries' in section 5.1 of BHP's 30 June 2019 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.
--------------------------------------------------------------------------------
BHP Operational Review for 9
the half year ended 31 December 2019
Further information on BHP can be found at: bhp.com
Authorised for lodgement by:
Rachel Agnew
Company Secretary
Sponsor: UBS South Africa (Pty) Limited
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
Australia and Asia Australia and Asia
Gabrielle Notley Tara Dines
Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Tel: +61 3 9609 2222 Mobile: +61 499 249 005
Europe, Middle East and Africa Europe, Middle East and Africa
Neil Burrows Elisa Morniroli
Tel: +44 20 7802 7484 Mobile: +44 7786 661 683 Tel: +44 20 7802 7611 Mobile: +44 7825 926 646
Americas Americas
Judy Dane Brian Massey
Tel: +1 713 961 8283 Mobile: +1 713 299 5342 Tel: +1 713 296 7919 Mobile: +1 832 870 7677
BHP Group Limited ABN 49 004 028 077 BHP Group plc Registration number 3196209
LEI WZE1WSENV6JSZFK0JC28 LEI 549300C116EOWV835768
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Registered Office: Nova South, 160 Victoria Street
Melbourne Victoria 3000 Australia London SW1E 5LB United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Group which is
headquartered in Australia
LOGO
Follow us on social media
--------------------------------------------------------------------------------
BHP Operational Review for 10
the half year ended 31 December 2019
Production summary
Quarter ended Year to date
------------------------------------ ---------------
Dec Mar Jun Sep Dec Dec Dec
BHP 2018 2019 2019 2019 2019 2019 2018
interest ------ ------- ------- ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Production
Crude oil, condensate and NGL (Mboe)... 14,497 13,236 13,366 12,507 13,412 25,919 28,584
Natural gas (bcf)...................... 93.9 92.9 97.8 100.4 88.7 189.1 206.2
------ ------- ------- ------ ------ ------- -------
Total (Mboe)........................... 30,147 28,719 29,666 29,240 28,195 57,436 62,951
------ ------- ------- ------ ------ ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/........................ 57.5% 212.6 205.4 224.1 237.0 240.3 477.3 452.6
Antamina............................... 33.8% 38.3 34.5 37.4 37.6 36.2 73.8 75.3
------ ------- ------- ------ ------ ------- -------
Total.................................. 250.9 239.9 261.5 274.6 276.5 551.1 527.9
------ ------- ------- ------ ------ ------- -------
Cathode (kt)
Escondida /(3)/........................ 57.5% 71.9 62.4 63.5 55.9 68.4 124.3 127.3
Pampa Norte /(4)/...................... 100% 61.8 67.2 74.1 63.9 60.0 123.9 105.2
Olympic Dam............................ 100% 31.6 50.2 45.2 35.1 50.5 85.6 64.9
------ ------- ------- ------ ------ ------- -------
Total.................................. 165.3 179.8 182.8 154.9 178.9 333.8 297.4
------ ------- ------- ------ ------ ------- -------
------ ------- ------- ------ ------ ------- -------
Total copper (kt)......................... 416.2 419.7 444.3 429.5 455.4 884.9 825.3
------ ------- ------- ------ ------ ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................... 33.8% 600 456 770 405 383 788 1,163
------ ------- ------- ------ ------ ------- -------
Total.................................. 600 456 770 405 383 788 1,163
------ ------- ------- ------ ------ ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................... 33.8% 24,237 20,848 22,469 20,454 22,483 42,937 54,795
------ ------- ------- ------ ------ ------- -------
Total.................................. 24,237 20,848 22,469 20,454 22,483 42,937 54,795
------ ------- ------- ------ ------ ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/........................ 57.5% 73,726 73,998 74,704 48,801 49,209 98,010 137,304
Olympic Dam (refined gold)............. 100% 17,856 28,609 37,032 43,205 35,382 78,587 41,327
------ ------- ------- ------ ------ ------- -------
Total.................................. 91,582 102,607 111,736 92,006 84,591 176,597 178,631
------ ------- ------- ------ ------ ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/........................ 57.5% 2,570 2,189 2,074 1,626 1,798 3,424 4,567
Antamina............................... 33.8% 1,178 1,062 1,209 1,101 1,173 2,274 2,487
Olympic Dam (refined silver)........... 100% 212 230 268 245 203 448 425
------ ------- ------- ------ ------ ------- -------
Total.................................. 3,960 3,481 3,551 2,972 3,174 6,146 7,479
------ ------- ------- ------ ------ ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam............................ 100% 929 1,106 975 937 949 1,886 1,484
------ ------- ------- ------ ------ ------- -------
Total.................................. 929 1,106 975 937 949 1,886 1,484
------ ------- ------- ------ ------ ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................... 33.8% 417 82 178 405 527 932 881
------ ------- ------- ------ ------ ------- -------
Total.................................. 417 82 178 405 527 932 881
------ ------- ------- ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 11
the half year ended 31 December 2019
Production summary
Quarter ended Year to date
------------------------------------ ---------------
Dec Mar Jun Sep Dec Dec Dec
BHP 2018 2019 2019 2019 2019 2019 2018
interest ------ ------- ------- ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
Newman................................. 85% 17,578 15,608 17,058 16,316 15,766 32,082 33,956
Area C Joint Venture................... 85% 10,280 11,627 13,837 12,620 12,727 25,347 21,976
Yandi Joint Venture.................... 85% 15,627 15,214 17,486 17,827 14,857 32,684 32,497
Jimblebar /(6)/........................ 85% 14,326 13,658 14,209 14,239 17,045 31,284 30,679
Wheelarra.............................. 85% 30 10 5 3 -- 3 144
Samarco................................ 50% -- -- -- -- -- -- --
------ ------- ------- ------ ------ ------- -------
Total.................................. 57,841 56,117 62,595 61,005 60,395 121,400 119,252
------ ------- ------- ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt) /(7)/
BMA.................................... 50% 7,694 7,608 9,090 6,905 8,723 15,628 15,438
BHP Mitsui Coal /(8)/.................. 80% 2,578 2,269 2,804 2,453 2,201 4,654 5,192
------ ------- ------- ------ ------ ------- -------
Total.................................. 10,272 9,877 11,894 9,358 10,924 20,282 20,630
------ ------- ------- ------ ------ ------- -------
Energy coal
Production (kt)
Australia.............................. 100% 4,311 4,552 5,412 3,592 3,763 7,355 8,293
Colombia............................... 33.3% 2,356 2,199 2,017 2,055 2,315 4,370 5,014
------ ------- ------- ------ ------ ------- -------
Total.................................. 6,667 6,751 7,429 5,647 6,078 11,725 13,307
------ ------- ------- ------ ------ ------- -------
Other
Nickel
Saleable production (kt)
Nickel West /(9)/...................... 100% 18.1 19.2 28.7 21.6 13.7 35.3 39.5
------ ------- ------- ------ ------ ------- -------
Total.................................. 18.1 19.2 28.7 21.6 13.7 35.3 39.5
------ ------- ------- ------ ------ ------- -------
Cobalt
Saleable production (t)
Nickel West............................ 100% 154 194 302 211 120 331 403
------ ------- ------- ------ ------ ------- -------
Total.................................. 154 194 302 211 120 331 403
------ ------- ------- ------ ------ ------- -------
(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 half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate....................... (Mboe) 1,401 893 1,246 1,409 1,427 2,836 3,054
NGL............................................ (Mboe) 1,447 849 1,299 1,810 1,405 3,215 3,287
Natural gas.................................... (bcf) 25.2 21.0 30.6 36.6 27.8 64.4 60.3
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 7,048 5,242 7,645 9,319 7,465 16,784 16,391
------- ------- ------- ------- ------- ------- -------
North West Shelf
Crude oil and condensate....................... (Mboe) 1,520 1,431 1,357 1,337 1,376 2,713 3,034
NGL............................................ (Mboe) 206 193 189 202 200 402 448
Natural gas.................................... (bcf) 37.5 36.6 34.8 32.1 32.9 65.0 74.1
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 7,976 7,724 7,346 6,889 7,059 13,948 15,832
------- ------- ------- ------- ------- ------- -------
Pyrenees
Crude oil and condensate....................... (Mboe) 1,101 940 1,001 979 934 1,913 1,383
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,101 940 1,001 979 934 1,913 1,383
------- ------- ------- ------- ------- ------- -------
Other Australia /(2)/
Crude oil and condensate....................... (Mboe) 8 6 7 8 1 9 15
Natural gas.................................... (bcf) 13.9 13.0 12.2 12.0 11.4 23.4 27.7
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 2,325 2,173 2,040 2,008 1,901 3,909 4,632
------- ------- ------- ------- ------- ------- -------
Atlantis /(3)/
Crude oil and condensate....................... (Mboe) 3,802 3,888 3,607 2,759 3,525 6,284 6,992
NGL............................................ (Mboe) 268 275 248 192 245 437 483
Natural gas.................................... (bcf) 1.9 2.0 2.2 1.4 1.8 3.2 3.4
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 4,387 4,496 4,222 3,184 4,070 7,254 8,042
------- ------- ------- ------- ------- ------- -------
Mad Dog /(3)/
Crude oil and condensate....................... (Mboe) 1,158 1,258 1,246 1,096 1,202 2,298 2,428
NGL............................................ (Mboe) 54 58 23 49 52 101 115
Natural gas.................................... (bcf) 0.2 0.2 0.2 0.2 0.2 0.4 0.4
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,245 1,349 1,302 1,178 1,287 2,466 2,610
------- ------- ------- ------- ------- ------- -------
Shenzi /(3)/
Crude oil and condensate....................... (Mboe) 2,024 1,881 1,725 1,345 1,671 3,016 4,040
NGL............................................ (Mboe) 121 112 (2) 70 94 164 243
Natural gas.................................... (bcf) 0.4 0.4 0.4 0.2 0.3 0.5 0.8
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 2,212 2,060 1,790 1,448 1,815 3,263 4,416
------- ------- ------- ------- ------- ------- -------
Trinidad/Tobago
Crude oil and condensate....................... (Mboe) 200 284 235 175 166 341 647
Natural gas.................................... (bcf) 14.0 19.5 17.3 17.9 14.2 32.1 38.0
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 2,533 3,534 3,118 3,158 2,533 5,691 6,980
------- ------- ------- ------- ------- ------- -------
Other Americas /(3) (4)/
Crude oil and condensate....................... (Mboe) 218 284 272 185 230 415 425
NGL............................................ (Mboe) 4 18 3 2 4 6 7
Natural gas.................................... (bcf) 0.1 0.2 0.1 -- 0.1 0.1 0.1
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 239 335 292 187 251 438 449
------- ------- ------- ------- ------- ------- -------
UK /(5)/
Crude oil and condensate....................... (Mboe) 36 -- -- -- -- -- 72
NGL............................................ (Mboe) 21 -- -- -- -- -- 42
Natural gas.................................... (bcf) 0.7 -- -- -- -- -- 1.4
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 174 -- -- -- -- -- 347
------- ------- ------- ------- ------- ------- -------
Algeria
Crude oil and condensate....................... (Mboe) 908 866 910 889 880 1,769 1,869
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 908 866 910 889 880 1,769 1,869
------- ------- ------- ------- ------- ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 13
the half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Total production
Crude oil and condensate....................... (Mboe) 12,376 11,731 11,606 10,182 11,412 21,594 23,959
NGL............................................ (Mboe) 2,121 1,505 1,760 2,325 2,000 4,325 4,625
Natural gas.................................... (bcf) 93.9 92.9 97.8 100.4 88.7 189.1 206.2
------- ------- ------- ------- ------- ------- -------
Total.......................................... (Mboe) 30,147 28,719 29,666 29,240 28,195 57,436 62,951
------- ------- ------- ------- ------- ------- -------
(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.
(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 14
the half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined.................................... (kt) 105,580 103,936 100,693 101,026 100,057 201,083 212,840
Sulphide ore milled............................... (kt) 30,507 32,027 32,519 33,956 33,659 67,615 61,020
Average concentrator head grade................... (%) 0.87% 0.82% 0.86% 0.86% 0.87% 0.86% 0.91%
Production ex mill................................ (kt) 219.9 216.9 230.9 245.0 246.1 491.1 461.8
Production
Payable copper.................................... (kt) 212.6 205.4 224.1 237.0 240.3 477.3 452.6
Copper cathode (EW)............................... (kt) 71.9 62.4 63.5 55.9 68.4 124.3 127.3
- Oxide leach .................................... (kt) 23.4 20.9 23.4 21.9 28.3 50.2 42.9
- Sulphide leach ................................. (kt) 48.5 41.5 40.1 34.1 40.1 74.2 84.3
------- ------- ------- ------- ------- ------- -------
Total copper...................................... (kt) 284.5 267.8 287.6 292.9 308.7 601.6 579.9
------- ------- ------- ------- ------- ------- -------
Payable gold concentrate.......................... (troy oz) 73,726 73,998 74,704 48,801 49,209 98,010 137,304
Payable silver concentrate........................ (troy koz) 2,570 2,189 2,074 1,626 1,798 3,424 4,567
Sales
Payable copper.................................... (kt) 229.2 212.0 223.4 222.2 248.3 470.5 445.7
Copper cathode (EW)............................... (kt) 72.3 56.6 67.5 52.3 70.6 122.9 125.5
Payable gold concentrate.......................... (troy oz) 73,726 73,999 74,704 48,801 49,209 98,010 137,304
Payable silver concentrate........................ (troy koz) 2,570 2,189 2,074 1,626 1,798 3,424 4,567
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined.................................... (kt) 19,875 15,561 13,534 15,071 18,102 33,173 38,363
Ore milled........................................ (kt) 5,069 4,277 4,740 3,995 5,009 9,004 9,871
Average copper grade.............................. (%) 0.62% 0.63% 0.64% 0.54% 0.57% 0.56% 0.58%
Production
Copper cathode (EW)............................... (kt) 19.4 18.2 23.4 16.4 13.8 30.2 33.6
Sales
Copper cathode (EW)............................... (kt) 19.0 15.5 26.8 14.5 15.8 30.3 32.8
Spence
Material mined.................................... (kt) 21,661 18,632 19,213 21,040 23,132 44,172 44,668
Ore milled........................................ (kt) 5,428 4,376 5,224 5,635 5,133 10,768 11,070
Average copper grade.............................. (%) 1.10% 1.03% 1.02% 0.95% 0.90% 0.93% 1.16%
Production
Copper cathode (EW)............................... (kt) 42.4 49.0 50.7 47.5 46.2 93.7 71.6
Sales
Copper cathode (EW)............................... (kt) 39.1 46.1 55.0 46.7 44.3 91.0 68.8
--------------------------------------------------------------------------------
BHP Operational Review for 15
the half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%)............................. (kt) 62,850 57,900 58,994 59,299 63,224 122,523 125,320
Sulphide ore milled (100%)........................ (kt) 12,912 11,466 12,864 13,121 13,637 26,758 26,109
Average head grades
- Copper.......................................... (%) 1.02% 1.04% 1.02% 0.99% 0.96% 0.97% 0.99%
- Zinc............................................ (%) 0.85% 0.87% 0.86% 0.80% 0.82% 0.81% 0.98%
Production
Payable copper.................................... (kt) 38.3 34.5 37.4 37.6 36.2 73.8 75.3
Payable zinc...................................... (t) 24,237 20,848 22,469 20,454 22,483 42,937 54,795
Payable silver.................................... (troy koz) 1,178 1,062 1,209 1,101 1,173 2,274 2,487
Payable lead...................................... (t) 600 456 770 405 383 788 1,163
Payable molybdenum................................ (t) 417 82 178 405 527 932 881
Sales
Payable copper.................................... (kt) 40.7 33.3 36.0 33.1 43.6 76.7 74.3
Payable zinc...................................... (t) 26,072 20,595 21,750 20,196 23,808 44,004 57,894
Payable silver.................................... (troy koz) 1,236 1,027 937 954 1,396 2,350 2,429
Payable lead...................................... (t) 649 749 296 844 432 1,276 1,261
Payable molybdenum................................ (t) 535 256 127 173 400 573 743
Olympic Dam, Australia
Material mined /(1)/.............................. (kt) 2,434 2,191 2,425 2,477 2,347 4,824 4,478
Ore milled........................................ (kt) 2,157 2,371 2,195 2,200 2,153 4,353 3,399
Average copper grade.............................. (%) 2.10% 2.22% 2.30% 2.31% 2.36% 2.33% 2.08%
Average uranium grade............................. (kg/t) 0.62 0.65 0.65 0.65 0.71 0.68 0.62
Production
Copper cathode (ER and EW)........................ (kt) 31.6 50.2 45.2 35.1 50.5 85.6 64.9
Payable uranium................................... (t) 929 1,106 975 937 949 1,886 1,484
Refined gold...................................... (troy oz) 17,856 28,609 37,032 43,205 35,382 78,587 41,327
Refined silver.................................... (troy koz) 212 230 268 245 203 448 425
Sales
Copper cathode (ER and EW)........................ (kt) 26.6 47.4 50.5 32.1 49.0 81.1 60.5
Payable uranium................................... (t) 828 550 1,427 778 638 1,416 1,593
Refined gold...................................... (troy oz) 17,812 27,574 36,133 40,073 36,507 76,580 38,957
Refined silver.................................... (troy koz) 177 241 257 250 202 452 393
(1) Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Operational Review for 16
the half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman............................................ (kt) 17,578 15,608 17,058 16,316 15,766 32,082 33,956
Area C Joint Venture.............................. (kt) 10,280 11,627 13,837 12,620 12,727 25,347 21,976
Yandi Joint Venture............................... (kt) 15,627 15,214 17,486 17,827 14,857 32,684 32,497
Jimblebar /(1)/................................... (kt) 14,326 13,658 14,209 14,239 17,045 31,284 30,679
Wheelarra......................................... (kt) 30 10 5 3 -- 3 144
------- ------- ------- ------- ------- ------- -------
Total production.................................. (kt) 57,841 56,117 62,595 61,005 60,395 121,400 119,252
------- ------- ------- ------- ------- ------- -------
Total production (100%)........................... (kt) 65,515 63,609 71,133 69,257 68,044 137,301 134,857
------- ------- ------- ------- ------- ------- -------
Sales
Lump.............................................. (kt) 14,020 13,603 15,568 14,785 15,982 30,767 29,034
Fines............................................. (kt) 44,059 41,981 48,064 45,509 45,785 91,294 90,586
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 58,079 55,584 63,632 60,294 61,767 122,061 119,620
------- ------- ------- ------- ------- ------- -------
Total sales (100%)................................ (kt) 65,758 62,853 72,173 68,291 69,481 137,772 135,179
------- ------- ------- ------- ------- ------- -------
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production........................................ (kt) -- -- -- -- -- -- --
Sales............................................. (kt) 10 -- -- -- -- -- 10
(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 17
the half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production /(1)/
BMA
Blackwater........................................ (kt) 1,680 1,484 1,735 1,045 1,734 2,779 3,384
Goonyella......................................... (kt) 1,813 2,141 2,620 1,489 2,662 4,151 3,802
Peak Downs........................................ (kt) 1,685 1,468 1,649 1,423 1,386 2,809 2,816
Saraji............................................ (kt) 1,288 1,250 1,243 1,214 1,325 2,539 2,399
Daunia............................................ (kt) 419 470 669 556 579 1,135 1,039
Caval Ridge....................................... (kt) 809 795 1,174 1,178 1,037 2,215 1,998
------- ------- ------- ------- ------- ------- -------
Total BMA......................................... (kt) 7,694 7,608 9,090 6,905 8,723 15,628 15,438
------- ------- ------- ------- ------- ------- -------
Total BMA (100%).................................. (kt) 15,388 15,216 18,180 13,810 17,446 31,256 30,876
------- ------- ------- ------- ------- ------- -------
BHP Mitsui Coal /(2)/
South Walker Creek................................ (kt) 1,636 1,429 1,624 1,378 1,196 2,574 3,141
Poitrel........................................... (kt) 942 840 1,180 1,075 1,005 2,080 2,051
------- ------- ------- ------- ------- ------- -------
Total BHP Mitsui Coal............................. (kt) 2,578 2,269 2,804 2,453 2,201 4,654 5,192
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal............................. (kt) 10,272 9,877 11,894 9,358 10,924 20,282 20,630
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal (100%)...................... (kt) 17,966 17,485 20,984 16,263 19,647 35,910 36,068
------- ------- ------- ------- ------- ------- -------
Sales
Coking coal....................................... (kt) 7,514 7,221 7,932 7,299 7,775 15,074 14,870
Weak coking coal.................................. (kt) 3,058 3,282 2,942 2,466 2,475 4,941 5,871
Thermal coal...................................... (kt) 157 379 350 94 30 124 298
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 10,729 10,882 11,224 9,859 10,280 20,139 21,039
------- ------- ------- ------- ------- ------- -------
Total (100%)...................................... (kt) 18,818 19,176 19,789 17,145 18,459 35,604 36,920
------- ------- ------- ------- ------- ------- -------
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
NSW Energy Coal, Australia
Production........................................ (kt) 4,311 4,552 5,412 3,592 3,763 7,355 8,293
Sales
Export thermal coal............................... (kt) 4,809 3,529 5,181 3,075 3,952 7,027 8,358
Inland thermal coal............................... (kt) 393 302 975 567 -- 567 725
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 5,202 3,831 6,156 3,642 3,952 7,594 9,083
------- ------- ------- ------- ------- ------- -------
Cerrejon, Colombia
Production........................................ (kt) 2,356 2,199 2,017 2,055 2,315 4,370 5,014
Sales thermal coal - export....................... (kt) 2,297 2,200 2,245 2,069 2,261 4,330 4,886
--------------------------------------------------------------------------------
BHP Operational Review for 18
the half year ended 31 December 2019
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2018 2019 2019 2019 2019 2019 2018
------- ------- ------- ------- ------- ------- -------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate................................ (kt) 44.9 52.5 52.8 43.7 31.5 75.2 95.1
Average nickel grade.............................. (%) 19.8 19.2 19.5 18.3 17.3 17.9 19.3
Leinster
Nickel concentrate................................ (kt) 65.3 51.8 48.3 67.2 56.6 123.8 144.1
Average nickel grade.............................. (%) 8.4 9.3 10.8 10.0 8.6 9.4 8.4
Saleable production
Refined nickel /(1) (2)/.......................... (kt) 16.3 17.6 19.9 17.4 11.1 28.5 36.1
Intermediates and nickel by-products /(1)(3)/..... (kt) 1.8 1.6 8.8 4.2 2.6 6.8 3.4
------- ------- ------- ------- ------- ------- -------
Total nickel /(1)/................................ (kt) 18.1 19.2 28.7 21.6 13.7 35.3 39.5
------- ------- ------- ------- ------- ------- -------
Cobalt by-products................................ (t) 154 194 302 211 120 331 403
Sales
Refined nickel /(1) (2)/.......................... (kt) 17.3 17.9 19.9 17.0 10.6 27.6 36.6
Intermediates and nickel by-products /(1)(3)/..... (kt) 2.1 0.1 8.4 5.7 2.7 8.4 4.3
------- ------- ------- ------- ------- ------- -------
Total nickel /(1)/................................ (kt) 19.4 18.0 28.3 22.7 13.3 36.0 40.9
------- ------- ------- ------- ------- ------- -------
Cobalt by-products ............................... (t) 154 194 302 212 131 343 403
(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 19
the half year ended 31 December 2019
Date: 21-01-2020 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.