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BHP BILLITON PLC - Operational Review for the Year Ended 30 June 2018

Release Date: 18/07/2018 07:05
Code(s): BIL     PDF:  
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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