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BHP GROUP PLC - Operational Review for the Half Year Ended 31 December 2019

Release Date: 21/01/2020 07:05
Code(s): BHP     PDF:  
 
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."

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                   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.

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                   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.

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                   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.

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                   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.

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                   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.

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                   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.


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                   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.

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                   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

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--------------------------------------------------------------------------------
                   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
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