Wrap Text
Operational Review for the Year Ended 30 June 2018
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 18 July 2018
Release Number 10/18
BHP OPERATIONAL REVIEW
FOR THE YEAR ENDED 30 JUNE 2018
. Met or exceeded full year production guidance for petroleum, copper, iron
ore and energy coal. Met revised guidance for metallurgical coal.
. Group copper equivalent production increased by 8% in the 2018 financial
year, with annual production records at Western Australia Iron Ore (WAIO),
Queensland Coal and Spence.
. We expect to achieve full year unit cost guidance at our major assets
(based on 2018 financial year guidance exchange rates of AUD/USD 0.75 and USD/CLP 663).
. Group copper equivalent production for the 2019 financial year is expected
to be broadly in line with the 2018 financial year/(1)/.
. The exit process for Onshore US is progressing to plan. Bids have been
received and we aim to announce one or more transactions within the coming
months, targeting completion of any transactions by the end of the 2018
calendar year.
. In Petroleum, the Victoria-1 exploration well in Trinidad and Tobago
encountered gas and the Samurai-2 well in the US Gulf of Mexico encountered
hydrocarbons in multiple horizons.
. The South Flank sustaining iron ore project was approved during the June
2018 quarter.
. We expect the financial results for the second half of the 2018 financial
year to reflect certain items as summarised in the table on page two.
FY18 Jun Q18
Production (vs FY17) (vs Mar Q18) Jun Q18 commentary
---------- --------- ------------ ------------------------
Petroleum (MMboe)................ 192 49 Improved well performance and positive trial results in Onshore US
(-8%) (+9%) offset by natural field decline.
Copper (kt)...................... 1,753 463 Higher volumes at Escondida supported by the ramp-up of the Los
(+32%) (+1%) Colorados Extension project.
Iron ore/(2)/ (Mt)............... 238 64 Record annualised production rate of 289 Mtpa (100% basis) reflects
(+3%) (+10%) increased productivity across the supply chain following completion of
the rail reliability project and improved car dumper performance.
Production records at Jimblebar and Newman.
Metallurgical coal/(2)/ (Mt)..... 43 12 Record quarterly production at Queensland Coal following improved
(+7%) (+16%) performance at Blackwater and Broadmeadow, and higher feed rates at
Caval Ridge. Production records at South Walker Creek and Poitrel.
Energy coal/(2)/ (Mt)............ 29 9 Record production at New South Wales Energy Coal underpinned by
(0%) (+48%) improved stripping fleet performance.
BHP Chief Executive Officer, Andrew Mackenzie, said: "We have delivered a
strong finish to the 2018 financial year with an eight per cent increase in
annual production and record output at Western Australia Iron Ore, Queensland
Coal and at our Spence copper mine in Chile. We further simplified the
portfolio with the announced divestment of Cerro Colorado in Chile and Gregory
Crinum in Australia and our investment in South Flank supports our ability to
supply low cost, high quality products into Asia.
Good prices and our culture of continuous improvement give us positive momentum
into the 2019 financial year."
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BHP Operational Review for 1
the year ended 30 June 2018
Summary
Operational performance
Production for the 2018 financial year and guidance for the 2019 financial year
are summarised in the table below.
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs FY19 FY19e
Production FY18 Qtr FY17 Jun Q17 Mar Q18 guidance vs FY18
---------- ------ ------ ------ ------- ------- --------------------- ------------
Petroleum (MMboe)................ 192 49 (8%) (6%) 9%
Onshore US (MMboe)............. 72 20 (10%) 3% 20% Refer footnote/(iii)/
Conventional (MMboe)........... 120 29 (6%) (11%) 3% 113 - 118 (6%) - (2%)
Copper (kt)...................... 1,753 463 32% 20% 1% 1,675 - 1,770 (4%) - 1%
Escondida (kt)................. 1,213 316 57% 40% 1% 1,120 - 1,180 (8%) - (3%)
Other copper/(i)/ (kt)......... 540 147 (3%) (9%) 3% 555 - 590 3% - 9%
Iron ore/(ii)/ (Mt).............. 238 64 3% 6% 10% 241 - 250 1% - 5%
WAIO (100% basis) (Mt)......... 275 72 3% 3% 8% 273 - 283 (1%) - 3%
Metallurgical coal/(ii)/ (Mt).... 43 12 7% 41% 16% 43 - 46 1% - 8%
Energy coal/(ii)/ (Mt)........... 29 9 0% 10% 48% 28 - 29 (4%) - (1%)
(i) Other copper comprises Pampa Norte (including Cerro Colorado production for
the first half of the 2019 financial year), Olympic Dam and Antamina.
(ii) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(iii)Given our intention to exit Onshore US, no annual guidance for the 2019
financial year for these assets will be provided; however, until
completion, we expect a production run rate broadly consistent with the
second half of the 2018 financial year.
Summary of disclosures
BHP expects its financial results for the second half of the 2018 financial
year 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 21 August 2018. Accordingly the
information is subject to update.
H2 FY18
impact
Description US$M/(i)/ Classification/(ii)/
----------- ------------ ---------------------------------
Non-cash fair value adjustment related to the Angostura (Trinidad and Tobago)
gas sale embedded derivative................................................ ~60 (up arrow) Operating costs
Exploration expense (including petroleum and minerals exploration programs)... 448 (up arrow) Exploration expense
The Group's adjusted effective tax rate for the full year is expected to be within the -- Income tax expense
guidance range of 30 to 35 per cent....................................
Non-cash fair value adjustments related to interest rate and exchange rate
movements (weaker US dollar in the period) are expected to reduce net debt
in the June 2018 half year.................................................. Under review (down arrow) Net debt
Dividends paid to non-controlling interests................................... ~650 (up arrow) Financing cash outflow
Financial impact on BHP Billiton Brasil of the Samarco Dam failure............ 440/(iii)/ Exceptional item charge
(i) Numbers are not tax effected.
(ii) There will be a corresponding balance sheet, cash flow and/or income
statement impact as relevant.
(iii)The total financial impact on BHP Billiton Brasil of the Samarco Dam
failure is expected to be US$650 million in the 2018 financial year (H1
US$210 million and H2 US$440 million).
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BHP Operational Review for 2
the year ended 30 June 2018
Average realised prices
The average realised prices achieved for our major commodities are summarised
below.
FY18 Jun H18 Jun H18
vs vs vs
Average realised prices/(i)/ Jun H18 Dec H17 FY18 FY17 FY17 Jun H17 Dec H17
---------------------------- ------- ------- -------- -------- ------ ------- -------
Oil (crude and condensate) (US$/bbl)....... 67.07 53.76 60.12 47.61 26% 35% 25%
Natural gas (US$/Mscf)/(ii)/............... 3.71 3.54 3.62 3.34 8% 7% 5%
US natural gas (US$/Mscf)............... 2.77 2.84 2.80 2.88 (3%) (7%) (2%)
LNG (US$/Mscf)............................. 8.65 7.48 8.07 6.84 18% 17% 16%
Copper (US$/lb)............................ 3.05 3.20 3.12 2.54 23% 13% (5%)
Iron ore (US$/wmt, FOB).................... 56.86 56.54 56.71 58.42 (3%) (8%) 1%
Metallurgical coal (US$/t)................. 189.66 164.22 177.22 163.30 9% 16% 15%
Hard coking coal (US$/t)/(iii)/......... 205.80 182.29 194.59 179.83 8% 14% 13%
Weak coking coal (US$/t)/(iii)/......... 143.40 120.99 131.70 121.32 9% 19% 19%
Thermal coal (US$/t)/(iv)/................. 86.47 87.49 86.94 74.67 16% 15% (1%)
Nickel metal (US$/t)....................... 13,974 11,083 12,591 10,184 24% 43% 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 majority of iron ore shipments were linked to the index price for the month
of shipment, with price differentials predominantly a reflection of product
quality and market fundamentals. The 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 30 June 2018, the Group had 364 kt of outstanding copper sales that were
revalued at a weighted average price of US$3.01 per pound. The final price of
these sales will be determined in the 2019 financial year. In addition, 254 kt
of copper sales from the 2017 financial year were subject to a finalisation
adjustment in the current period. The provisional pricing and finalisation
adjustments will increase Underlying EBITDA/(3)/ by US$2 million in the 2018
financial year and is included in the average realised copper price in the above
table.
Major development projects
During the June 2018 quarter, the BHP Board approved US$2.9 billion (BHP share;
US$3.4 billion 100 per cent) in capital expenditure for the South Flank
sustaining iron ore project in Western Australia. A US$122 million increase in
the budget of the Jansen project to US$2.7 billion has been incorporated to fund
support services at the site as work continues on completion of the shafts. The
forecast for the North West Shelf Greater Western Flank-B project has been
reduced by US$98 million to US$216 million as the project is tracking ahead of
schedule.
At the end of the 2018 financial year, BHP had five major projects under
development in petroleum, copper, iron ore and potash, with a combined budget of
US$10.6 billion over the life of the projects.
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BHP Operational Review for 3
the year ended 30 June 2018
Corporate update
On 25 June 2018, Samarco, Vale and BHP, together with the Federal Government of
Brazil, the states of Espirito Santo and Minas Gerais and the Public Prosecutors
agreed an arrangement which settles the BRL20 billion Civil Claim, enhances
community participation in decisions related to the remediation and compensation
programs, and establishes a process to renegotiate those programs and to
progress settlement of the BRL155 billion Civil Claim (Governance Agreement).
The Governance Agreement is conditional on the Federal Government of Brazil
signing the Agreement and ratification by the 12th Federal Court of Minas
Gerais.
On 29 June 2018, BHP announced a total of US$211 million in further financial
support for the Renova Foundation and Samarco until 31 December 2018. This
comprises US$158 million to fund the Renova Foundation which will be offset
against the Group's provision for the Samarco dam failure and a short-term
facility of up to US$53 million to be made available to Samarco.
Unrelated to the new Governance Agreement, BHP expects to recognise an income
statement charge in the second half of the 2018 financial year of US$440
million in respect of the Samarco dam failure. This charge largely reflects
updated assumptions relating to the continuation of the fishing ban, the number
of eligible claimants, and the timeline and technical scope for resettlement of the communities.
The US$440 million income statement charge will be recognised as an
exceptional item in the June 2018 half year.
The net increase in the provision is approximately US$250 million due to the
offsetting impact of payments to the Renova Foundation to fund remediation and
compensation Programs under the Framework Agreement.
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BHP Operational Review for 4
the year ended 30 June 2018
Petroleum
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
------ ------ ------ ------- -------
Crude oil, condensate and natural gas liquids (MMboe)... 86 22 (11%) (10%) 8%
Natural gas (bcf)....................................... 636 163 (5%) (2%) 11%
------ ------ ------ ------- -------
Total petroleum production (MMboe)...................... 192 49 (8%) (6%) 9%
------ ------ ------ ------- -------
Petroleum - Total petroleum production for the 2018 financial year decreased by
eight per cent to 192 MMboe.
In our Conventional business, volumes are expected to decrease to between 113
and 118 MMboe in the 2019 financial year as a result of additional downtime from
planned dry dock maintenance at Pyrenees and natural field decline across the
portfolio. Given our intention to exit Onshore US, no annual guidance for the
2019 financial year for these assets will be provided, however until completion,
which we are targeting by the end of the 2018 calendar year, we expect a
production run rate broadly consistent with the second half of the 2018
financial year.
Production breakdown FY18 vs FY17
-------------------- ------ -------
Crude oil, condensate and natural gas liquids (MMboe)
Conventional................... 57 (8%) Hurricane Harvey and Hurricane Nate in the Gulf of Mexico and
natural field decline across the portfolio.
Onshore US..................... 29 (16%) Hurricane Harvey and natural field decline, which more than offset
improved recoveries and additional wells in the Black Hawk and Permian.
--- -----
Total.......................... 86 (11%)
--- -----
Natural gas (bcf)
Conventional................... 377 (4%) Maintenance at Bass Strait and Macedon.
Onshore US..................... 259 (6%) Hurricane Harvey and natural field decline, partially offset by additional
wells in the Eagle Ford, Permian and Haynesville.
--- -----
Total.......................... 636 (5%)
--- -----
In the June 2018 quarter, BHP agreed to sell its 90 per cent interest in the
Minerva Gas Plant in Victoria to the Casino Henry Joint Venture. The agreement
provides for the transfer of the plant and associated land after the cessation
of current operations processing gas from the offshore Minerva gas field, and
remains conditional on completion of regulatory approvals and assignments.
Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
------------------------ ----------- ------------ -------------------------------------- ----------------------------------------
North West Shelf Greater 216 CY19 To maintain LNG plant throughput from Ahead of schedule and budget. The
Western Flank-B the North West Shelf operations. overall project is 87% complete.
(Australia)
16.67% (non-operator)
Mad Dog Phase 2 2,154 CY22 New floating production facility with On schedule and budget. The overall
(US Gulf of Mexico) the capacity to produce up to 140,000 project is 23% complete.
23.9% (non-operator) gross barrels of crude oil per day.
Petroleum capital expenditure for the 2018 financial year increased by five per
cent to US$1.6 billion.
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BHP Operational Review for 5
the year ended 30 June 2018
Onshore US development activity
Onshore US drilling and development expenditure for 2018 financial year was
US$0.9 billion. Our operated rig count declined from seven to five during the
June 2018 quarter.
Liquids focused areas Gas focused areas
FY18 ---------------------- -------------------------
(FY17) Eagle Ford Permian Haynesville Fayetteville Total
------------------------- ----------- ---------- ----------- ------------- -------------
Capital expenditure/(i)/ US$ billion 0.3 (0.3) 0.4 (0.2) 0.2 (0.1) 0.0 (0.0) 0.9 (0.6)
Rig allocation At period end 2 (1) 2 (1) 1 (3) 0 (0) 5 (5)
Net wells drilled and Period total 36 (51) 29 (21) 20 (5) 0 (2) 85 (79)
completed/(ii)/
Net productive wells At period end 958 (963) 155 (126) 393 (394) 1,042 (1,044) 2,548 (2,527)
(i) Includes land acquisition, site preparation, drilling, completions, well
site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory
of wells drilled but not yet completed at period end.
The exit process for our Onshore US assets is progressing to plan. Bids have
been received and we aim to announce one or more transactions within the coming
months, targeting completion of any transactions by the end of the 2018 calendar
year.
Petroleum exploration
Exploration and appraisal wells drilled during the June 2018 quarter are
summarised below.
Total well
Well Location Target BHP equity Spud date Water depth depth Status
---- ----------------- ------ ---------- ---------------- ----------- ---------- -------------------------
Samurai-2 US Gulf of Mexico Oil 50% 16 April 2018 1,088 m 8,615 m Hydrocarbons encountered,
GC432 (Murphy drilling ahead
Operator)
Victoria-1 Trinidad & Tobago Gas 65% 12 June 2018 1,828 m 2,545 m Hydrocarbons encountered,
Block 5 (BHP drilling ahead
Operator)
In the US Gulf of Mexico, we increased our equity interest in the Murphy
operated Samurai prospect (GC432 and GC476), the northern extension of the
Wildling sub-basin, from 33.33 to 50 per cent. The Samurai-2 exploration well
was spud on 16 April 2018 and encountered hydrocarbons in multiple horizons not
previously observed by the Wildling-2 exploration well. As reported in the March
2018 Operational Review, we were the apparent high bidder on three blocks, EB914
and EB699 in the western Gulf of Mexico and GC823 to the west of the Mad Dog
field, which we co-own with BP and Chevron. All three leases were awarded by the
Regulator during the June 2018 quarter.
In Trinidad and Tobago, following the gas discovery at LeClerc, we commenced
Phase 2 of our deepwater exploration drilling campaign to further assess the
commercial potential of the Magellan play. The Victoria-1 exploration well was
spud on 12 June 2018 and encountered gas. Following completion of the Victoria-1
well, we expect the Deepwater Invictus to drill the Bongos prospect in Northern
Trinidad and Tobago.
In Mexico, we expect to begin drilling the first appraisal well at Trion in the
December 2018 quarter.
In Australia, the fast track of the Exmouth sub-basin 3D seismic data has been
received. The final processed data will be delivered during the September 2018
quarter.
Petroleum exploration expenditure for the 2018 financial year was US$709
million, of which US$516 million was expensed.
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BHP Operational Review for 6
the year ended 30 June 2018
Copper
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
--------- -------- ------ ------- -------
Copper (kt)...................... 1,753 463 32% 20% 1%
Zinc (t)......................... 119,800 35,983 37% 24% 41%
Uranium oxide concentrate (t).... 3,364 1,123 (8%) 52% 0%
Copper - Total copper production for the 2018 financial year increased by 32 per
cent to 1,753 kt. Total copper production of between 1,675 and 1,770 kt is
expected in the 2019 financial year.
Escondida copper production for the 2018 financial year increased by 57 per cent
to 1,213 kt, reflecting a full year of production following the industrial
action in the previous year and supported by the start-up of the Los Colorados
Extension project on 10 September 2017. Production of between 1,120 and 1,180 kt
is forecast in the 2019 financial year, as higher expected throughput is offset
by a significant decrease in average concentrator head grade consistent with the mine plan.
The existing agreement with Union No1 will expire on 1 August 2018 and negotiations
for a new agreement are in progress. The Escondida Water Supply Extension (EWSE)
is in execution phase and will deliver first water production in the 2020
financial year.
Pampa Norte copper production increased by four per cent to 264 kt supported by
record production at Spence of 200 kt reflecting better recoveries and higher
utilisation of the solvent extraction and electrowinning plants. On 19 June
2018, BHP entered into an agreement to sell Cerro Colorado to EMR Capital/(4)/.
The transaction is expected to close during the December 2018 quarter, subject
to financing and customary closing conditions. Production at Spence is expected
to be between 185 and 200 kt in the 2019 financial year, with volumes weighted
to the second half as planned maintenance in May and June 2018 resulted in a
lower stacking rate. During the period, we successfully completed the advanced
negotiation with Spence Union No1 (operators and maintenance) with the
new agreement effective from 1 June 2018 for 36 months. An agreement was also
reached with the Cerro Colorado Union No2 (supervisors and staff) on the
terms and conditions for a new collective agreement, effective for 36 months
from 1 July 2018.
Olympic Dam copper production decreased by 18 per cent to 137 kt as a result of
the planned major smelter maintenance campaign in the first half of the 2018
financial year and a slower than planned ramp-up. The operation returned to full
capacity during the June 2018 quarter. Production is expected to increase to
between 200 and 220 kt in the 2019 financial year reflecting improved
operational stability and higher ore grades from the Southern Mine Area.
Antamina copper production increased by four per cent to 140 kt and zinc
production increased 37 per cent to 120 kt due to higher head grades as mining
continued through a zinc-rich ore zone. Copper production is expected to remain
at similar levels in the 2019 financial year at approximately 135 kt, while zinc
production is expected to be approximately 85 kt, consistent with the mine plan.
Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
----------- ------------- ------------ ------------------------------------ -----------------------------------
Spence Growth Option....... 2,460 FY21 New 95 ktpd concentrator is On schedule and budget. The overall
(Chile) expected to increase Spence's project is 14% complete.
100% payable copper in concentrate
production by approximately
185 ktpa in the first 10 years of
operation and extend the mining
operations by more than 50 years.
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BHP Operational Review for 7
the year ended 30 June 2018
Iron Ore
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
------- ------ ---- ------- -------
Iron ore (kt).......... 238,421 63,586 3% 6% 10%
Iron ore - Total iron ore production for the 2018 financial year increased by
three per cent to a record 238 Mt (275 Mt on a 100 per cent basis). WAIO
production of between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per
cent basis, is expected in the 2019 financial year. A program of work to
optimise maintenance schedules across our supply chain and improve port
reliability and performance is planned for the September 2018 quarter, with a
corresponding impact expected on production and unit costs.
At WAIO, increased production was supported by improved productivity and
stability across the supply chain, including both rail and port, which has
enabled record production at Jimblebar and Mining Area C. This was partially
offset by the impact of lower opening stockpile levels following the Mt
Whaleback fire in June 2017 and unplanned car dumper maintenance in the March
2018 quarter. WAIO produced at record annualised rates of 289 Mtpa (100 per cent
basis) in the June 2018 quarter.
On 14 June 2018, the BHP Board approved US$2.9 billion (BHP share; US$3.4
billion 100 per cent) in capital expenditure for the South Flank project. The
South Flank project will fully replace production from the 80 Mtpa (100 per cent
basis) Yandi mine, with first ore targeted in the 2021 calendar year. South
Flank will contribute to an increase in WAIO's average iron grade from 61 per
cent to 62 per cent, and the overall proportion of lump from 25 per cent to
approximately 35 per cent.
Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.
Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
----------- ------------- ------------ ------------------------------------ -----------------------------------
South Flank................ 3,061/(i)/ CY21 Sustaining iron ore mine to replace Project approved on 14 June 2018.
(Australia) production from the 80 Mtpa (100 per
85% cent basis) Yandi mine.
(i) Includes initial funding of US$184 million announced on 26 June 2017.
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BHP Operational Review for 8
the year ended 30 June 2018
Coal
Production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
------ ------ ---- ------- -------
Metallurgical coal (kt).... 42,640 12,009 7% 41% 16%
Energy coal (kt)........... 29,158 9,023 0% 10% 48%
Metallurgical coal - Metallurgical coal production for the 2018 financial year
increased by seven per cent to a record 43 Mt. Production is expected to
increase to between 43 and 46 Mt in the 2019 financial year, with volumes
weighted to the second half of the year. An extensive maintenance program is
planned for the first half of the 2019 financial year, with a corresponding
impact expected on production and unit costs.
At Queensland Coal, record production for the 2018 financial year was supported
by record stripping performance, increased truck hours and higher wash-plant
utilisation from low-cost debottlenecking activities. Production records were
achieved at Peak Downs, Saraji, Caval Ridge, South Walker Creek and Poitrel. In
the June 2018 quarter production increased by 16 per cent from the previous
quarter following improved operational conditions at Blackwater (geotechnical
issues) and Broadmeadow (challenging roof conditions), increased feed rates at
the Caval Ridge wash-plant, and utilisation of additional wash-plant capacity at
Poitrel following the purchase of the remaining 50 per cent of the Red Mountain
processing facility.
On 30 May 2018, BHP announced it has entered into an arrangement to sell the
Gregory Crinum mine, which was placed into care and maintenance in January 2016,
to Sojitz Corporation/(5)/. Completion of the sale is subject to the fulfilment
of conditions precedent including customary regulatory approvals, which could
take several months.
On the Central Queensland Coal Network, where Aurizon is the rail track
provider, we continue to engage with stakeholders and encourage Aurizon to
ensure infrastructure productivity is maximised while they await the Queensland
Competition Authority's final decision in respect of Access Undertaking 5 (UT5).
The Caval Ridge Southern Circuit project is progressing according to plan, and
is expected to ramp-up early in the 2019 financial year. A longwall move at
Broadmeadow is scheduled for the December 2018 quarter.
Energy coal - Energy coal production for the 2018 financial year was flat at 29
Mt. Production is expected to remain broadly unchanged at approximately 28 to 29
Mt in the 2019 financial year.
New South Wales Energy Coal production increased by two per cent, supported by
record production and sales volumes during the June 2018 quarter from improved
stripping performance, utilisation of raw coal inventory build from the prior
quarter and additional bypass coal. Increasing stripping requirements in the
September 2018 quarter are expected to result in lower production rates for the
quarter compared to the remainder of the 2019 financial year. This was offset by
a three per cent decline in Cerrejon production due to unfavourable weather
impacts on mine sequencing, equipment availability and higher strip ratio areas
being mined.
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BHP Operational Review for 9
the year ended 30 June 2018
Other
Nickel production
Jun FY18 Jun Q18 Jun Q18
2018 vs vs vs
FY18 Qtr FY17 Jun Q17 Mar Q18
---- ------ ---- ------- -------
Nickel (kt)............ 90.6 24.9 6% (1%) 21%
Nickel - Nickel West production for the 2018 financial year increased by six
per cent to 91 kt, with increased production at the Mt Keith and Leinster
operations supporting record metal production. Nickel production for the 2019
financial year is expected to remain broadly unchanged from the 2018 financial
year.
Potash project
Investment
Project and ownership (US$m) Scope Progress
--------------------- ---------- -------------------------------------------- -------------------------------------------
Jansen Potash..... 2,700 Investment to finish the excavation and Budget revised to fund support services
(Canada).......... lining of the production and service shafts, at the site as work continues on completion
100%.............. and to continue the installation of of the shafts. The project is 79% complete.
essential surface infrastructure and
utilities.
Minerals exploration
Minerals exploration expenditure for the 2018 financial year was US$165 million,
of which US$124 million was expensed. Greenfield minerals exploration is
predominantly focused on advancing copper targets within Chile, Ecuador, Peru,
Canada, South Australia and the South-West United States.
Variance analysis relates to the relative performance of BHP and/or its
operations during the 2018 financial year compared with the 2017 financial 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. Copper
equivalent production based on 2017 financial year average realised prices.
The following footnotes apply to this Operational Review:
----------
(1) Excludes production from Onshore US and Cerro Colorado.
(2) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(3) 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.
(4) On 19 June 2018, BHP announced it has entered into an agreement to sell the
Cerro Colorado copper mine in Chile to EMR Capital. The total cash
consideration consist of US$230 million to be paid to BHP after the closing
of the transaction, plus approximately US$40 million in proceeds from the
post-closing sale of certain copper inventory, and a contingent payment of
up to US$50 million to be paid in the future, depending upon copper price
performance.
(5) On 30 May 2018, BHP Billiton Mitsubishi Alliance (BMA) announced it has
entered into an agreement to sell the Gregory Crinum coal mine in central
Queensland to Sojitz Corporation for A$100 million (100 per cent basis). In
addition to the sale of the mine to Sojitz, BHP will be providing
appropriate funding for rehabilitation of existing areas of disturbance at
the site, with all rehabilitation liabilities transferred to Sojitz on
completion.
The following abbreviations may have been used throughout this report: barrels
(bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and
freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per
tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million
barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand
barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic
feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand
tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
In this release, the terms 'BHP', 'Group', 'BHP Group', 'we', 'us', 'our' and
ourselves' are used to refer to BHP Billiton Limited, BHP Billiton Plc and,
except where the context otherwise requires, their respective subsidiaries as
defined in note 28 'Subsidiaries' in section 5.1 of BHP's 30 June 2017 Annual
Report on Form 20-F and in note 13 'Related undertaking of the Group' in section
5.2 of BHP's 30 June 2017 Annual Report on Form 20-F. Notwithstanding that this
release may include production and other data from non-operated assets,
non-operated assets are not included in the BHP Group.
--------------------------------------------------------------------------------
BHP Operational Review for 10
the year ended 30 June 2018
Further information on BHP can be found at: bhp.com
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--------------------------------------------------------------------------------
BHP Operational Review for 11
the year ended 30 June 2018
Production summary
Quarter ended Year to date
----------------------------------- ---------------
Jun Sep Dec Mar Jun Jun Jun
BHP 2017 2017 2017 2018 2018 2018 2017
interest ------ ------ ------ ------ ------- ------- -------
Petroleum /(1)/
Petroleum
Crude oil, condensate and NGL (Mboe)
Onshore US........................... 8,501 7,079 7,423 6,256 8,266 29,024 34,371
Conventional......................... 15,612 15,090 14,869 13,960 13,486 57,405 62,708
------ ------ ------ ------ ------- ------- -------
Total................................ 24,113 22,169 22,292 20,216 21,752 86,429 97,079
------ ------ ------ ------ ------- ------- -------
Natural gas (bcf)
Onshore US........................... 67.2 61.4 60.5 64.1 72.5 258.5 275.0
Conventional......................... 99.5 107.3 96.1 82.9 90.7 377.0 392.8
------ ------ ------ ------ ------- ------- -------
Total................................ 166.7 168.7 156.6 147.0 163.2 635.5 667.8
------ ------ ------ ------ ------- ------- -------
------ ------ ------ ------ ------- ------- -------
Total petroleum production (MMboe)...... 51.9 50.3 48.4 44.7 49.0 192.4 208.4
------ ------ ------ ------ ------- ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/....................... 57.5% 162.4 196.3 238.5 244.9 246.1 925.8 539.6
Antamina............................. 33.8% 38.5 35.9 33.8 35.2 34.6 139.5 133.8
------ ------ ------ ------ ------- ------- -------
Total................................ 200.9 232.2 272.3 280.1 280.7 1,065.3 673.4
------ ------ ------ ------ ------- ------- -------
Cathode (kt)
Escondida /(3)/...................... 57.5% 62.8 71.9 76.1 69.4 70.1 287.5 232.0
Pampa Norte /(4)/.................... 100% 72.3 58.0 68.4 66.8 70.6 263.8 254.3
Olympic Dam.......................... 100% 51.4 42.0 12.2 40.5 42.0 136.7 166.3
------ ------ ------ ------ ------- ------- -------
Total................................ 186.5 171.9 156.7 176.7 182.7 688.0 652.6
------ ------ ------ ------ ------- ------- -------
------ ------ ------ ------ ------- ------- -------
Total copper (kt)....................... 387.4 404.1 429.0 456.8 463.4 1,753.3 1,326.0
------ ------ ------ ------ ------- ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................. 33.8% 1,799 1,415 1,009 464 546 3,434 5,473
------ ------ ------ ------ ------- ------- -------
Total................................ 1,799 1,415 1,009 464 546 3,434 5,473
------ ------ ------ ------ ------- ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................. 33.8% 29,076 29,201 29,054 25,562 35,983 119,800 87,502
------ ------ ------ ------ ------- ------- -------
Total................................ 29,076 29,201 29,054 25,562 35,983 119,800 87,502
------ ------ ------ ------ ------- ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/...................... 57.5% 33,941 50,525 50,279 59,953 68,345 229,102 110,858
Olympic Dam (refined gold)........... 100% 28,188 13,101 15,969 28,989 33,497 91,556 104,146
------ ------ ------ ------ ------- ------- -------
Total................................ 62,129 63,626 66,248 88,942 101,842 320,658 215,004
------ ------ ------ ------ ------- ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/...................... 57.5% 1,234 1,737 2,193 2,339 2,527 8,796 4,326
Antamina............................. 33.8% 1,691 1,596 1,331 1,189 1,321 5,437 5,783
Olympic Dam (refined silver)......... 100% 243 131 135 248 278 792 768
------ ------ ------ ------ ------- ------- -------
Total................................ 3,168 3,464 3,659 3,776 4,126 15,025 10,877
------ ------ ------ ------ ------- ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam.......................... 100% 737 880 243 1,118 1,123 3,364 3,661
------ ------ ------ ------ ------- ------- -------
Total................................ 737 880 243 1,118 1,123 3,364 3,661
------ ------ ------ ------ ------- ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................. 33.8% 328 402 579 420 261 1,662 1,144
------ ------ ------ ------ ------- ------- -------
Total................................ 328 402 579 420 261 1,662 1,144
------ ------ ------ ------ ------- ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 12
the year ended 30 June 2018
Production summary
Quarter ended Year to date
----------------------------------- ---------------
Jun Sep Dec Mar Jun Jun Jun
BHP 2017 2017 2017 2018 2018 2018 2017
interest ------ ------ ------ ------ ------- ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
Newman............................... 85% 16,241 13,842 18,317 16,412 18,500 67,071 68,283
Area C Joint Venture................. 85% 13,016 13,099 13,575 12,802 12,041 51,517 48,744
Yandi Joint Venture.................. 85% 17,415 14,559 16,348 15,802 17,339 64,048 65,355
Jimblebar /(6)/...................... 85% 5,891 6,283 4,583 4,669 15,092 30,627 21,950
Wheelarra............................ 85% 7,578 7,804 8,734 8,006 614 25,158 27,020
Samarco.............................. 50% -- -- -- -- -- -- --
------ ------ ------ ------ ------- ------- -------
Total................................ 60,141 55,587 61,557 57,691 63,586 238,421 231,352
------ ------ ------ ------ ------- ------- -------
Coal
Metallurgical coal
Production (kt) /(7)/
BMA.................................. 50% 6,394 8,296 7,394 7,983 9,220 32,893 31,458
BHP Mitsui Coal /(8)/................ 80% 2,100 2,271 2,291 2,396 2,789 9,747 8,312
Haju /(9)/........................... 75% -- -- -- -- -- -- 129
------ ------ ------ ------ ------- ------- -------
Total................................ 8,494 10,567 9,685 10,379 12,009 42,640 39,899
------ ------ ------ ------ ------- ------- -------
Energy coal
Production (kt)
USA.................................. 100% -- -- -- -- -- -- 451
Australia............................ 100% 5,711 4,235 4,383 3,662 6,261 18,541 18,176
Colombia............................. 33.3% 2,475 2,497 2,914 2,444 2,762 10,617 10,959
------ ------ ------ ------ ------- ------- -------
Total................................ 8,186 6,732 7,297 6,106 9,023 29,158 29,586
------ ------ ------ ------ ------- ------- -------
Other
Nickel
Saleable production (kt)
Nickel West.......................... 100% 25.2 22.8 22.4 20.5 24.9 90.6 85.1
------ ------ ------ ------ ------- ------- -------
Total................................ 25.2 22.8 22.4 20.5 24.9 90.6 85.1
------ ------ ------ ------ ------- ------- -------
(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific
conversions are made and NGL is reported in barrels of oil equivalent (boe).
Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product.
Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%.
(9) Shown on a 100% basis. BHP interest in saleable production is 75%.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
--------------------------------------------------------------------------------
BHP Operational Review for 13
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
----------------------------------- ---------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------ ------ ------ ------ ------- ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate.................. (Mboe) 1,552 1,815 1,513 1,126 1,361 5,815 6,599
NGL....................................... (Mboe) 1,661 1,950 1,584 1,170 1,428 6,132 6,459
Natural gas............................... (bcf) 37.4 42.6 32.9 20.5 29.9 125.9 139.3
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 9.4 10.9 8.6 5.7 7.8 32.9 36.3
------ ------ ------ ------ ------- ------- -------
North West Shelf
Crude oil and condensate.................. (Mboe) 1,314 1,474 1,442 1,377 1,267 5,560 5,507
NGL....................................... (Mboe) 209 227 200 210 186 823 964
Natural gas............................... (bcf) 32.5 36.2 36.2 35.8 34.2 142.4 140.3
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 6.9 7.7 7.7 7.6 7.2 30.1 29.9
------ ------ ------ ------ ------- ------- -------
Pyrenees
Crude oil and condensate.................. (Mboe) 1,606 1,510 1,210 1,250 1,168 5,138 6,517
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 1.6 1.5 1.2 1.3 1.2 5.1 6.5
------ ------ ------ ------ ------- ------- -------
Other Australia /(2)/
Crude oil and condensate.................. (Mboe) 9 9 8 8 7 32 35
Natural gas............................... (bcf) 16.3 16.1 13.3 13.4 13.9 56.7 66.1
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 2.7 2.7 2.2 2.2 2.3 9.5 11.1
------ ------ ------ ------ ------- ------- -------
Atlantis /(3)/
Crude oil and condensate.................. (Mboe) 3,637 3,022 3,377 3,459 3,471 13,329 13,835
NGL....................................... (Mboe) 213 218 195 248 217 878 923
Natural gas............................... (bcf) 1.9 1.6 1.8 1.8 1.5 6.7 7.1
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 4.2 3.5 3.9 4.0 3.9 15.3 15.9
------ ------ ------ ------ ------- ------- -------
Mad Dog /(3)/
Crude oil and condensate.................. (Mboe) 1,167 1,020 1,231 1,140 581 3,972 4,472
NGL....................................... (Mboe) 68 44 72 55 27 198 215
Natural gas............................... (bcf) 0.2 0.1 0.2 0.2 0.1 0.6 0.7
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 1.3 1.1 1.3 1.2 0.6 4.3 4.8
------ ------ ------ ------ ------- ------- -------
Shenzi /(3)/
Crude oil and condensate.................. (Mboe) 2,588 2,291 2,513 2,323 2,110 9,237 10,587
NGL....................................... (Mboe) 179 141 184 140 151 616 565
Natural gas............................... (bcf) 0.6 0.4 0.5 0.4 0.4 1.7 2.1
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 2.9 2.5 2.8 2.5 2.3 10.1 11.5
------ ------ ------ ------ ------- ------- -------
Eagle Ford /(4)/
Crude oil and condensate.................. (Mboe) 4,278 3,457 3,720 2,838 3,826 13,841 17,608
NGL....................................... (Mboe) 2,240 1,856 2,100 1,555 1,767 7,278 9,021
Natural gas............................... (bcf) 15.1 13.8 14.4 12.6 13.9 54.7 63.8
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 9.0 7.6 8.2 6.5 7.9 30.2 37.3
------ ------ ------ ------ ------- ------- -------
Permian /(4)/
Crude oil and condensate.................. (Mboe) 1,336 1,179 1,142 1,398 1,903 5,622 5,331
NGL....................................... (Mboe) 646 587 460 465 770 2,282 2,388
Natural gas............................... (bcf) 6.2 4.5 3.6 4.1 6.4 18.6 19.0
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 3.0 2.5 2.2 2.5 3.7 11.0 10.9
------ ------ ------ ------ ------- ------- -------
Haynesville /(4)/
Crude oil and condensate.................. (Mboe) 1 -- 1 -- -- 1 5
NGL....................................... (Mboe) -- -- -- -- -- -- 18
Natural gas............................... (bcf) 21.4 21.5 22.0 28.7 33.1 105.3 95.6
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 3.6 3.6 3.7 4.8 5.5 17.6 16.0
------ ------ ------ ------ ------- ------- -------
Fayetteville /(4)/
Natural gas............................... (bcf) 24.5 21.6 20.5 18.7 19.1 79.9 96.6
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 4.1 3.6 3.4 3.1 3.2 13.3 16.1
------ ------ ------ ------ ------- ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 14
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
----------------------------------- ---------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
------ ------ ------ ------ ------- ------- -------
Petroleum /(1)/ (continued)
Trinidad/Tobago
Crude oil and condensate.................. (Mboe) 139 118 135 232 233 718 562
Natural gas............................... (bcf) 9.4 9.7 10.5 10.0 9.8 40.0 32.6
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 1.7 1.7 1.9 1.9 1.9 7.4 6.0
------ ------ ------ ------ ------- ------- -------
Other Americas /(3)//(5)/
Crude oil and condensate.................. (Mboe) 238 229 207 189 313 938 1,039
NGL....................................... (Mboe) 10 5 3 3 22 33 22
Natural gas............................... (bcf) 0.1 0.1 0.1 -- 0.3 0.5 0.4
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 0.3 0.3 0.2 0.2 0.4 1.1 1.1
------ ------ ------ ------ ------- ------- -------
UK
Crude oil and condensate.................. (Mboe) 64 40 22 43 38 143 268
NGL....................................... (Mboe) 16 39 13 18 18 88 119
Natural gas............................... (bcf) 1.1 0.5 0.6 0.8 0.6 2.5 4.2
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 0.3 0.2 0.1 0.2 0.2 0.6 1.1
------ ------ ------ ------ ------- ------- -------
Algeria
Crude oil and condensate.................. (Mboe) 942 938 960 969 888 3,755 4,020
------ ------ ------ ------ ------- ------- -------
Total petroleum products.................. (MMboe) 0.9 0.9 1.0 1.0 0.9 3.8 4.0
------ ------ ------ ------ ------- ------- -------
BHP Petroleum
Crude oil and condensate
Onshore US................................ (Mboe) 5,615 4,636 4,863 4,236 5,729 19,464 22,944
Conventional.............................. (Mboe) 13,256 12,466 12,618 12,116 11,437 48,637 53,441
------ ------ ------ ------ ------- ------- -------
Total..................................... (Mboe) 18,871 17,102 17,481 16,352 17,166 68,101 76,385
------ ------ ------ ------ ------- ------- -------
NGL
Onshore US................................ (Mboe) 2,886 2,443 2,560 2,020 2,537 9,560 11,427
Conventional.............................. (Mboe) 2,356 2,624 2,251 1,844 2,049 8,768 9,267
------ ------ ------ ------ ------- ------- -------
Total..................................... (Mboe) 5,242 5,067 4,811 3,864 4,586 18,328 20,694
------ ------ ------ ------ ------- ------- -------
Natural gas
Onshore US................................ (bcf) 67.2 61.4 60.5 64.1 72.5 258.5 275.0
Conventional.............................. (bcf) 99.5 107.3 96.1 82.9 90.7 377.0 392.8
------ ------ ------ ------ ------- ------- -------
Total..................................... (bcf) 166.7 168.7 156.6 147.0 163.2 635.5 667.8
------ ------ ------ ------ ------- ------- -------
Total petroleum products
Onshore US................................ (Mboe) 19,701 17,312 17,506 16,939 20,349 72,107 80,204
Conventional.............................. (Mboe) 32,195 32,973 30,886 27,777 28,603 120,238 128,175
------ ------ ------ ------ ------- ------- -------
Total..................................... (Mboe) 51,896 50,286 48,392 44,716 48,952 192,346 208,379
------ ------ ------ ------ ------- ------- -------
(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Onshore US volumes are net of mineral holder royalties.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
--------------------------------------------------------------------------------
BHP Operational Review for 15
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
-------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined............................ (kt) 93,389 104,867 101,371 103,385 106,788 416,411 316,801
Sulphide ore milled....................... (kt) 18,777 24,080 30,260 32,203 31,732 118,275 67,484
Average concentrator head grade............ (%) 1.07% 1.06% 0.98% 0.96% 0.96% 0.99% 0.99%
Production ex mill........................ (kt) 167.0 204.2 245.7 252.6 253.6 956.1 557.5
Production
Payable copper............................ (kt) 162.4 196.3 238.5 244.9 246.1 925.8 539.6
Copper cathode (EW)....................... (kt) 62.8 71.9 76.1 69.4 70.1 287.5 232.0
- Oxide leach............................ (kt) 20.3 22.4 27.4 24.5 27.1 101.4 80.4
- Sulphide leach......................... (kt) 42.5 49.5 48.7 44.9 43.0 186.1 151.6
-------- -------- -------- -------- -------- -------- --------
Total copper.............................. (kt) 225.2 268.2 314.6 314.3 316.2 1,213.3 771.6
-------- -------- -------- -------- -------- -------- --------
Payable gold concentrate.................. (troy oz) 33,941 50,525 50,279 59,953 68,345 229,102 110,858
Payable silver concentrate................ (troy koz) 1,234 1,737 2,193 2,339 2,527 8,796 4,326
Sales
Payable copper............................ (kt) 163.3 195.1 236.7 228.3 260.3 920.4 534.6
Copper cathode (EW)....................... (kt) 56.0 61.6 84.1 61.7 80.9 288.3 232.8
Payable gold concentrate.................. (troy oz) 33,941 50,525 50,279 59,953 68,345 229,102 110,858
Payable silver concentrate................ (troy koz) 1,234 1,737 2,193 2,339 2,527 8,796 4,326
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined............................ (kt) 15,760 21,381 20,191 17,766 17,918 77,256 58,235
Ore milled................................ (kt) 4,411 3,951 4,611 4,905 4,833 18,300 15,173
Average copper grade...................... (%) 0.53% 0.62% 0.59% 0.58% 0.58% 0.59% 0.60%
Production
Copper cathode (EW)....................... (kt) 18.8 13.3 17.4 13.6 19.0 63.3 64.7
Sales
Copper cathode (EW)....................... (kt) 19.8 12.3 17.7 13.7 20.9 64.6 65.5
Spence
Material mined............................ (kt) 24,230 22,314 23,096 21,463 23,103 89,976 93,442
Ore milled................................ (kt) 4,968 5,375 4,919 5,144 4,009 19,447 20,093
Average copper grade...................... (%) 1.13% 1.21% 1.18% 1.03% 1.11% 1.13% 1.14%
Production
Copper cathode (EW)....................... (kt) 53.5 44.7 51.0 53.2 51.6 200.5 189.6
Sales
Copper cathode (EW)....................... (kt) 55.7 43.0 52.2 49.8 57.1 202.1 187.4
--------------------------------------------------------------------------------
BHP Operational Review for 16
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
-------- -------- -------- -------- -------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%)..................... (kt) 62,254 59,216 59,125 58,085 59,002 235,428 244,491
Sulphide ore milled (100%)................ (kt) 13,229 12,822 13,098 12,166 12,973 51,059 52,105
Average head grades
- Copper................................. (%) 1.00% 0.94% 0.89% 1.01% 0.91% 0.94% 0.89%
- Zinc................................... (%) 0.95% 0.99% 0.93% 1.01% 1.19% 1.03% 0.80%
Production
Payable copper............................ (kt) 38.5 35.9 33.8 35.2 34.6 139.5 133.8
Payable zinc.............................. (t) 29,076 29,201 29,054 25,562 35,983 119,800 87,502
Payable silver............................ (troy koz) 1,691 1,596 1,331 1,189 1,321 5,437 5,783
Payable lead.............................. (t) 1,799 1,415 1,009 464 546 3,434 5,473
Payable molybdenum........................ (t) 328 402 579 420 261 1,662 1,144
Sales
Payable copper............................ (kt) 36.9 31.9 37.0 32.1 36.6 137.6 132.9
Payable zinc.............................. (t) 27,936 25,224 30,340 26,456 33,088 115,108 89,982
Payable silver............................ (troy koz) 1,513 1,475 1,470 1,052 1,311 5,308 5,482
Payable lead.............................. (t) 1,493 1,624 972 859 595 4,050 4,835
Payable molybdenum........................ (t) -- 168 693 500 388 1,749 1,124
Olympic Dam, Australia
Material mined /(1)/...................... (kt) 1,974 1,851 1,391 2,056 2,201 7,499 8,008
Ore milled................................ (kt) 2,097 2,302 554 2,188 2,171 7,215 8,604
Average copper grade...................... (%) 2.30% 2.10% 2.22% 2.36% 2.12% 2.19% 2.08%
Average uranium grade..................... (kg/t) 0.58 0.55 0.58 0.71 0.69 0.64 0.62
Production
Copper cathode (ER and EW)................ (kt) 51.4 42.0 12.2 40.5 42.0 136.7 166.3
Uranium oxide concentrate................. (t) 737 880 243 1,118 1,123 3,364 3,661
Refined gold.............................. (troy oz) 28,188 13,101 15,969 28,989 33,497 91,556 104,146
Refined silver............................ (troy koz) 243 131 135 248 278 792 768
Sales
Copper cathode (ER and EW)................ (kt) 51.5 31.6 24.3 36.8 46.0 138.7 163.7
Uranium oxide concentrate................. (t) 1,298 680 338 509 1,230 2,757 4,105
Refined gold.............................. (troy oz) 24,726 22,435 17,999 20,715 35,714 96,863 97,194
Refined silver............................ (troy koz) 251 219 118 202 307 846 746
(1) Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Operational Review for 17
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
-------- -------- -------- -------- -------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman.................................... (kt) 16,241 13,842 18,317 16,412 18,500 67,071 68,283
Area C Joint Venture...................... (kt) 13,016 13,099 13,575 12,802 12,041 51,517 48,744
Yandi Joint Venture....................... (kt) 17,415 14,559 16,348 15,802 17,339 64,048 65,355
Jimblebar /(1)/........................... (kt) 5,891 6,283 4,583 4,669 15,092 30,627 21,950
Wheelarra................................. (kt) 7,578 7,804 8,734 8,006 614 25,158 27,020
-------- -------- -------- -------- -------- -------- --------
Total production.......................... (kt) 60,141 55,587 61,557 57,691 63,586 238,421 231,352
-------- -------- -------- -------- -------- -------- --------
Total production (100%)................... (kt) 69,714 64,287 71,611 67,048 72,145 275,091 268,302
-------- -------- -------- -------- -------- -------- --------
Sales
Lump...................................... (kt) 15,104 13,896 15,145 13,993 15,173 58,207 56,191
Fines..................................... (kt) 46,249 40,733 45,769 44,332 47,730 178,564 175,017
-------- -------- -------- -------- -------- -------- --------
Total..................................... (kt) 61,353 54,629 60,914 58,325 62,903 236,771 231,208
-------- -------- -------- -------- -------- -------- --------
Total sales (100%)........................ (kt) 71,149 63,322 70,733 67,799 71,385 273,239 268,226
-------- -------- -------- -------- -------- -------- --------
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production................................ (kt) -- -- -- -- -- -- --
Sales..................................... (kt) -- -- 14 25 -- 39 47
(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 18
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
-------- -------- -------- -------- -------- -------- --------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production /(1)/
BMA
Blackwater................................ (kt) 1,766 1,985 1,470 1,384 1,849 6,688 7,296
Goonyella................................. (kt) 1,157 1,639 1,369 2,314 2,639 7,961 7,355
Peak Downs................................ (kt) 1,238 1,602 1,367 1,723 1,658 6,350 6,055
Saraji.................................... (kt) 913 1,414 1,198 1,240 1,201 5,053 4,734
Daunia.................................... (kt) 560 662 718 547 629 2,556 2,560
Caval Ridge............................... (kt) 760 994 1,272 775 1,244 4,285 3,458
-------- -------- -------- -------- -------- -------- --------
Total BMA................................. (kt) 6,394 8,296 7,394 7,983 9,220 32,893 31,458
-------- -------- -------- -------- -------- -------- --------
BHP Mitsui Coal /(2)/
South Walker Creek........................ (kt) 1,348 1,400 1,524 1,490 1,615 6,029 5,123
Poitrel................................... (kt) 752 871 767 906 1,174 3,718 3,189
-------- -------- -------- -------- -------- -------- --------
Total BHP Mitsui Coal..................... (kt) 2,100 2,271 2,291 2,396 2,789 9,747 8,312
-------- -------- -------- -------- -------- -------- --------
Total Queensland Coal..................... (kt) 8,494 10,567 9,685 10,379 12,009 42,640 39,770
-------- -------- -------- -------- -------- -------- --------
Sales
Coking coal............................... (kt) 5,496 7,934 6,341 7,177 8,489 29,941 27,527
Weak coking coal.......................... (kt) 2,502 3,150 2,816 2,598 2,866 11,430 10,721
Thermal coal.............................. (kt) 142 102 173 168 85 528 598
-------- -------- -------- -------- -------- -------- --------
Total..................................... (kt) 8,140 11,186 9,330 9,943 11,440 41,899 38,846
-------- -------- -------- -------- -------- -------- --------
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
Haju, Indonesia /(1)/
Production................................ (kt) -- -- -- -- -- -- 129
Sales - export............................ (kt) -- -- -- -- -- -- 117
(1) Shown on 100% basis. BHP interest in saleable production is 75%. BHP
completed the sale of IndoMet Coal on 14 October 2016.
New Mexico, USA
Production
Navajo Coal /(1)/......................... (kt) -- -- -- -- -- -- 451
-------- -------- -------- -------- -------- -------- --------
Total..................................... (kt) -- -- -- -- -- -- 451
-------- -------- -------- -------- -------- -------- --------
Sales thermal coal - local utility -- -- -- -- -- -- 105
(1) The divestment of Navajo Coal was completed on 29 July 2016, with no further
production reported by BHP. Management of Navajo Coal was transferred to
Navajo Transitional Energy Company on 31 December 2016.
NSW Energy Coal, Australia
Production................................ (kt) 5,711 4,235 4,383 3,662 6,261 18,541 18,176
Sales
Export thermal coal....................... (kt) 4,913 3,622 4,048 3,181 5,795 16,646 16,499
Inland thermal coal....................... (kt) 327 405 411 400 160 1,376 1,400
-------- -------- -------- -------- -------- -------- --------
Total..................................... (kt) 5,240 4,027 4,459 3,581 5,955 18,022 17,899
-------- -------- -------- -------- -------- -------- --------
Cerrejon, Colombia
Production................................ (kt) 2,475 2,497 2,914 2,444 2,762 10,617 10,959
Sales thermal coal - export............... (kt) 2,803 2,518 2,619 2,480 2,763 10,380 11,043
--------------------------------------------------------------------------------
BHP Operational Review for 19
the year ended 30 June 2018
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Jun Sep Dec Mar Jun Jun Jun
2017 2017 2017 2018 2018 2018 2017
-------- -------- -------- -------- -------- -------- --------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Production
Nickel contained in concentrate........... (kt) -- -- -- -- -- -- 0.7
Nickel contained in finished matte........ (kt) 5.3 6.8 4.6 1.3 6.4 19.1 13.5
Nickel metal.............................. (kt) 19.9 16.0 17.8 19.2 18.5 71.5 70.9
-------- -------- -------- -------- -------- -------- --------
Total nickel production................... (kt) 25.2 22.8 22.4 20.5 24.9 90.6 85.1
-------- -------- -------- -------- -------- -------- --------
Sales
Nickel contained in concentrate........... (kt) -- -- -- -- -- -- 0.7
Nickel contained in finished matte........ (kt) 4.9 4.6 6.4 2.1 5.9 19.0 13.0
Nickel metal.............................. (kt) 18.1 16.6 17.9 19.7 17.8 72.0 69.3
-------- -------- -------- -------- -------- -------- --------
Total nickel sales........................ (kt) 23.0 21.2 24.3 21.8 23.7 91.0 83.0
-------- -------- -------- -------- -------- -------- --------
--------------------------------------------------------------------------------
BHP Operational Review for 20
the year ended 30 June 2018
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