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BHP GROUP PLC - Operational Review for the Year Ended 30 June 2019

Release Date: 17/07/2019 07:05
Code(s): BHP     PDF:  
Wrap Text
Operational Review for the Year Ended 30 June 2019

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


 NEWS RELEASE                             LOGO

Release Time       IMMEDIATE

Date               17 July 2019

Release Number     14/19

                             BHP OPERATIONAL REVIEW
                         FOR THE YEAR ENDED 30 JUNE 2019

.    Exceeded full year production guidance for petroleum and met revised
     guidance for copper and iron ore. Metallurgical coal and energy coal
     production marginally below guidance predominantly as a result of lower
     than expected wash plant yields and adverse weather impacts during the June 2019 quarter.

.    Group copper equivalent production increased by 11% in the June 2019
     quarter reflecting a strong operational performance across the portfolio,
     particularly at Western Australia Iron Ore and Queensland Coal which
     achieved annualised run rates above 290 Mt (excluding the impact of
     Tropical Cyclone Veronica) and 48 Mt respectively during the quarter.

.    Group copper equivalent production for the 2019 financial year declined by
     2%/(1)/, with annual production records at two petroleum and four minerals
     operations, offset by grade and natural field decline, weather-related
     interruptions and several unplanned outages.

.    We expect to achieve full year unit cost guidance/(2)/ at Petroleum,
     Escondida and Western Australia Iron Ore. Queensland Coal and New South Wales Energy 
     Coal unit costs are expected to be marginally above guidance (based on 2019 financial
     year guidance exchange rates of AUD/USD 0.75 and USD/CLP 663).

.    Group copper equivalent production/(1)/ for the 2020 financial year is
     expected to be slightly higher than the 2019 financial year despite a ~7%
     decline in petroleum volumes largely due to natural field decline.

.    In Petroleum, the Bele-1, Tuk-1 and Hi-Hat-1 exploration wells in Trinidad
     and Tobago all encountered hydrocarbons during the quarter. Over the full
     year, seven out of nine wells drilled were successful.

.    All major projects under development are tracking to plan.

.    Underlying improvements in productivity were largely offset by the impact of 
     unplanned production outages of US$835 million during the first half, in addition to
     grade decline in copper, and higher unit costs in coal. A
     negative movement of approximately US$1 billion is now expected to be
     recorded for the 2019 financial year.

                                  FY19      Jun Q19
Production                     (vs FY18) (vs Mar Q19) Jun Q19 commentary
----------                     --------- ------------ ------------------
Petroleum (MMboe).............    121         30      Higher seasonal gas volumes and higher uptime due to planned shutdowns
                                  (+1%)      (+3%)    in the previous quarter at Bass Strait.
Copper (kt)...................  1,689        444      Strong performance at all three Chilean operations partially offset by
                                  (-4%)      (+6%)    the  impact of two minor production outages at Olympic Dam.
                                                      
Iron ore (Mt).................    238         63      Increased production at Western Australia Iron Ore (WAIO) reflected
                                   (0%)     (+12%)    the return to full capacity following Tropical Cyclone Veronica in
                                                      March 2019.
Metallurgical coal (Mt).......     42         12      Record production at BMC and improved mining performance across most
                                  (-1%)     (+20%)    operations following significant wet weather impacts in the previous
                                                      quarter.
Energy coal (Mt)..............     27          7      Increased stripping performance at New South Wales Energy Coal (NSWEC),
                                  (-6%)     (+10%)    partially offset by the impact of adverse weather at Cerrejon.
Nickel (kt)...................     87         29      Increased production reflected completion of final repairs and ramp up
                                  (-6%)     (+49%)    of the Kalgoorlie smelter in the prior quarter.

We expect the financial results for the second half of the 2019 financial year
to reflect certain items as summarised in the table on page 3.

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                   BHP Operational Review for             1
                   the year ended 30 June 2019

Summary

BHP Chief Executive Officer, Andrew Mackenzie:

"We finished the 2019 financial year with an 11 per cent increase in quarterly
production, driven by strong operational performances across our portfolio,
including annual production records at a number of our petroleum, copper, iron
ore and metallurgical coal operations. Our overall production was broadly in
line with last year, overcoming the impacts of weather, grade and natural field
decline, and unplanned outages in the first half. Our exploration program
delivered encouraging results, with seven out of nine petroleum wells successful
and further evaluation of the Oak Dam copper prospect underway. Strong
underlying performance puts us in a position to deliver higher volumes in the
2020 financial year. BHP's suite of attractive options, together with our
culture and transformation programs, will grow returns and create long-term
financial and social value."

Operational performance

Production and guidance are summarised below.

                                                        FY19  Jun Q19  Jun Q19
                                                   Jun   vs     vs       vs            FY20           FY20e
Production                                FY19     Q19  FY18  Jun Q18  Mar Q19        guidance       vs FY19
--------------------------------------- ------ -------  ----  -------  ------- --------------- ------------------
Petroleum (MMboe)......................    121      30   1%       4%       3%       110 - 116         (9%) - (4%)
Copper (kt)............................  1,689     444  (4%)     (4%)      6%   1,705 - 1,820           1% - 8%
  Escondida (kt)......................   1,135     288  (6%)     (9%)      7%   1,160 - 1,230           2% - 8%
  Other copper/(i)/ (kt)..............     554     157   3%       6%       3%       545 - 590         (2%) - 6%
Iron ore/(ii)/ (Mt)....................    238      63   0%      (2%)     12%       242 - 253            2% - 6%
  WAIO (100% basis) (Mt)..............     270      71  (2%)     (1%)     12%       273 - 286            1% - 6%
Metallurgical coal (Mt) ...............     42      12  (1%)     (1%)     20%         41 - 45          (3%) - 6%
  Queensland Coal (100% basis) (Mt)...      75      21  (1%)     (1%)     20%         73 - 79          (2%) - 6%
Energy coal (Mt).......................     27       7  (6%)    (18%)     10%         24 - 26       (13%) - (5%)
  NSWEC (Mt)..........................      18       5  (2%)    (14%)     19%         15 - 17        (18%) - (7%)
  Cerrejon (Mt).......................       9       2 (13%)    (28%)     (8%)             ~9  Broadly unchanged
Nickel (kt)............................     87      29  (6%)     12%      49%             ~87   Broadly unchanged

(i)  Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Increase in BHP's share of volumes reflects the expiry of the Wheelarra
     Joint Venture sublease in March 2018, with control of the sublease area
     reverted to the Jimblebar Joint Venture, which is accounted for on a
     consolidated basis with minority interest adjustments.

Major development projects

During the year, the North West Shelf Greater Western Flank-B project achieved
first production ahead of schedule and under budget. The BHP Board also approved
the Atlantis Phase 3 project in the US Gulf of Mexico.

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

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                   BHP Operational Review for             2
                   the year ended 30 June 2019

Summary of disclosures

BHP expects its financial results for the second half of the 2019 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 20 August 2019. Accordingly the information
is subject to update.

                                                                                H2 FY19
                                                                                impact
Description                                                                    US$M/(i)/               Classification/(ii)/
-----------                                                              ---------------------  ----------------------------------
Continuing operations

Unit costs for Petroleum, Escondida and WAIO expected to be in line      Refer footnote/(iii)/          (up arrow) Operating costs
with full year guidance, although tracking to upper limits
Queensland Coal and NSWEC unit costs expected to be marginally above     Refer footnote/(iii)/          (up arrow) Operating costs
full year guidance due to the impacts of higher stripping costs and
wet weather in Queensland
Increase in closure and rehabilitation provision for closed mines/(iv)/                   ~250          (up arrow) Operating costs
Restructuring and redundancy costs in relation to World Class Functions                   ~100          (up arrow) Operating costs
Exploration expense (including petroleum and minerals exploration
programs)                                                                                  294      (up arrow) Exploration expense
The Group's adjusted effective tax rate for the full year is expected    Refer footnote/(iii)/         (up arrow) Taxation expense
to be at the higher end of the guidance range of 33 to 38 per cent
Non-cash fair value adjustments related to interest rate and exchange    Refer footnote/(iii)/                 (up arrow) Net debt
rate movements are expected to increase net debt in the June 2019
half year
Special dividend paid to shareholders on 30 January 2019                                 5,188   (up arrow) Financing cash outflow
Dividends paid to non-controlling interests                                               ~570   (up arrow) Financing cash outflow
Provision for decommissioning the Germano dam at Samarco                                  ~260  (up arrow) Exceptional item charge
Financial impact on BHP Billiton Brasil of the Samarco dam failure       Refer footnote/(iii)/  (up arrow) Exceptional item charge

Discontinued operations

Net proceeds received from the sale of Onshore US (including final four                  3,503    (up arrow) Investing cash inflow
instalment payments)

(i)   Numbers are not tax effected, unless otherwise noted.
(ii)  There will be a corresponding balance sheet, cash flow and/or income
      statement impact as relevant.
(iii) Financial impact is the subject of ongoing work and is not yet finalised.
(iv)  Increase is attributable to closed mines managed by Petroleum due to their
      geographical location.

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                   BHP Operational Review for             3
                   the year ended 30 June 2019

Underlying improvements in productivity were largely offset by the impact of unplanned production outages
of US$835 million during the December 2018 half year. Productivity for the June 2019 
half year has been impacted by higher than expected unit costs at Queensland Coal (lower volumes, 
wet weather and increased contractor stripping costs); New South Wales Energy Coal (higher strip ratio and
contractor stripping costs); and Nickel West (mine plan changes); in addition to
expected grade decline in copper. As a result, we expect a negative movement in 
productivity of approximately US$1 billion million for the 2019 financial year, 
excluding the impact of Tropical Cyclone Veronica on our WAIO operations.

Average realised prices

The average realised prices achieved for our major commodities are summarised
below.

                                                                       FY19 Jun H19 Jun H19
                                                                        vs    vs      vs
Average realised prices/(i)/            Jun H19 Dec H18  FY19   FY18   FY18 Jun H18 Dec H18
----------------------------            ------- ------- ------ ------ ----- ------- -------
Oil (crude and condensate) (US$/bbl)...   63.29   69.91  66.59  60.57   10%    (7%)    (9%)
Natural gas (US$/Mscf)/(ii)/...........    4.42    4.67   4.55   4.44    2%    (8%)    (5%)
LNG (US$/Mscf).........................    8.53   10.19   9.43   8.07   17%    (1%)   (16%)
Copper (US$/lb)/(iii)/...................  2.70    2.54   2.62   3.00  (13%)   (8%)     6%
Iron ore (US$/wmt, FOB)................   77.74   55.62  66.68  56.71   18%    37%     40%
Metallurgical coal (US$/t).............  179.53  179.82 179.67 177.22    1%    (5%)     0%
  Hard coking coal (US$/t)/(iv)/......  201.33  197.86 199.61 194.59    3%    (2%)     2%
  Weak coking coal (US$/t)/(iv)/......  126.46  134.12 130.18 131.70   (1%)  (12%)    (6%)
Thermal coal (US$/t)/(v)/.............   72.18   84.15  77.90  86.94  (10%)  (17%)   (14%)
Nickel metal (US$/t)...................  12,444  12,480 12,462 12,591   (1%)  (11%)     0%

(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) Comparative financial information has been restated for the new accounting standard,
      IFRS 15 Revenue from Contracts with Customers, which became effective 1 July 2018. 
(iv)  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.
(v)  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 market
fundamentals and product quality. 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 2019, the Group had 322 kt of outstanding copper sales that were
revalued at a weighted average price of US$2.72 per pound. The final price of
these sales will be determined in the 2020 financial year. In addition, 364 kt
of copper sales from the 2018 financial year were subject to a finalisation
adjustment in the current period. The provisional pricing and finalisation
adjustments will decrease Underlying EBITDA/(3)/ by US$242 million in the 2019
financial year and is included in the average realised copper price in the above
table.

Corporate update

On 26 June 2019, BHP Western Australia Iron Ore and its Joint Venture Partners
(JVPs) settled a dispute with the Western Australian Government in relation to a
long-standing deduction made by BHP and its JVPs in the calculation of
royalties. The settlement resolved all issues relating to this deduction and
there is no assertion by the State that BHP, or its JVPs, have deliberately or
knowingly sought to avoid or minimise the royalties payable to the State of
Western Australia. As part of the settlement, BHP and its JVPs have ceased to
claim the deduction in question and have agreed to make a payment of A$250
million (100 per cent basis) to the State in resolution of the dispute. The
payment will be made in the first half of the 2020 financial year.

In January 2019, BHP agreed to fund US$438 million in financial support for the
Renova Foundation until 31 December 2019 which will be offset against the
Group's provision for the Samarco dam failure. In addition, in June 2019 BHP agreed to
fund a short-term facility of up to US$79 million to be made available to
Samarco until 31 December 2019.

BHP is currently reviewing the assumptions used to determine the Group's
provision for the Samarco dam failure, including an expected increase in the
total cost estimate related to the timing of lifting the fishing ban, delays in
the resettlement of communities impacted by the dam failure and increases in the
number of people eligible for financial assistance and compensation. For the
second half of the 2019 financial year, we are not yet in a position to provide
an update to the ongoing potential financial impacts on BHP Billiton Brasil of
the Samarco dam failure. Any financial impacts will continue to be treated as an
exceptional item.

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                   BHP Operational Review for             4
                   the year ended 30 June 2019

Due to legislative changes in Brazil, Samarco is currently progressing plans for
the accelerated decommissioning of its upstream tailings dams (the Germano dam
complex). The accelerated timing is expected to result in a provision of
approximately US$260 million (BHP share), as Samarco is not currently expected to
generate sufficient cash flows to fund the required decommissioning costs. 
BHP will recognise this in its financial results for the second half of the 
2019 financial year and treat it as an exceptional item.

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                   BHP Operational Review for             5
                   the year ended 30 June 2019

Petroleum

Production
                                                                           FY19  Jun Q19 Jun Q19
                                                                            vs     vs      vs
                                                           FY19  Jun Q19   FY18  Jun Q18 Mar Q19
                                                         ------- ------- ------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe)...     55      13    (4%)    (1%)     1%
Natural gas (bcf).......................................    397      98     5%      8%      5%
                                                         ------- ------- ------- ------- -------
Total petroleum production (MMboe)......................    121      30     1%      4%      3%
                                                         ------- ------- ------- ------- -------

Petroleum - Total petroleum production increased by one per cent to 121 MMboe.
Volumes are expected to decrease to between 110 and 116 MMboe in the 2020
financial year as a result of planned maintenance at Atlantis and natural field
decline across the portfolio.

Crude oil, condensate and natural gas liquids production decreased by four per
cent to 55 MMboe due to natural field decline across the portfolio and a 70-day
planned dry dock maintenance program at Pyrenees completed during the September
2018 quarter. This decline was partly offset by higher uptime and stronger field
performance at Atlantis and Mad Dog.

Natural gas production increased by five per cent to 397 bcf, reflecting
increased tax barrels at Trinidad and Tobago in accordance with the terms of our
Production Sharing Contract and higher uptime at North West Shelf. This was
partially offset by planned maintenance at Trinidad and Tobago in the December
2018 quarter, the impact of Tropical Cyclone Veronica in Western Australia and
natural field decline across the portfolio.

Projects

                           Capital     Initial
Project and              expenditure production
ownership                   US$M     target date                   Capacity                               Progress
------------------------ ----------- -----------  -------------------------------------  -----------------------------------------
Mad Dog Phase 2             2,154        CY22     New floating production facility       On schedule and budget. The overall
(US Gulf of Mexico)                               with the capacity to produce up        project is 53% complete.
23.9% (non-operator)                              to 140,000 gross barrels of crude
                                                  oil per day.
Atlantis Phase 3              696        CY20     New subsea production system that      On schedule and budget. The overall
(US Gulf of Mexico)                               will tie back to the existing          project is 13% complete.
44% (non-operator)                                Atlantis facility, with capacity
                                                  to produce up to 38,000 gross
                                                  barrels of oil equivalent per day.

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

Petroleum exploration

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

                                           Formation                              Water     Total well
Well           Location           Target      age     BHP equity   Spud date      depth        depth   Status
-------------  ------------------ ------ ------------ ---------- --------------- ---------- ---------- --------------------------
Bele-1         Trinidad &          Gas    Pliocene    70% (BHP     2 March 2019   2,102 m    3,982 m   Hydrocarbons encountered;
               Tobago Block 23(a)                     Operator)                                        Plugged and abandoned
Tuk-1          Trinidad &          Gas    Pliocene    70% (BHP    24 April 2019   1,954 m    4,511 m   Hydrocarbons encountered;
               Tobago Block 23(a)                     Operator)                                        Plugged and abandoned
Hi-Hat-1       Trinidad &          Gas    Pliocene    70% (BHP     20 May 2019    1,782 m    3,804 m   Hydrocarbons encountered;
               Tobago Block 14                        Operator)                                        Plugged and abandoned
Achernar-1     Western             Gas    Jurassic    15.8%        2 May 2019       122 m    3,285 m   Dry hole;
               Australia                              (Woodside                                        Plugged and abandoned
               WA-28-P                                Operator)                                        

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                   BHP Operational Review for             6
                   the year ended 30 June 2019

In Trinidad and Tobago, Phase 3 of our deepwater drilling campaign was
completed. This campaign included three wells - Bele-1, Tuk-1 and Hi-Hat-1 -
which have all been successfully drilled and encountered gas. These three
discoveries in our Northern licences have established additional volumes around
the Bongos discovery and evaluations are ongoing. Technical work is underway to
assess further exploration targets and commercial options for the Northern Gas
play.

In Australia, as part of the North West Shelf Joint Venture, we participated in
the Achernar-1 exploration to fulfil a well commitment on the WA-28-P exploration permit. The well 
was a dry hole and was plugged and abandoned.

In Mexico, we spud the Trion-3DEL appraisal well on 9 July 2019 to further
delineate the scale and characterisation of the resource.

Petroleum exploration expenditure for the 2019 financial year was US$685
million, of which US$388 million was expensed.

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                   BHP Operational Review for             7
                   the year ended 30 June 2019

Copper

Production
                                              FY19 Jun Q19 Jun Q19
                                         Jun   vs     vs     vs
                                 FY19    Q19  FY18 Jun Q18 Mar Q19
                               ------ ------ ----- ------- -------
          Copper (kt)........   1,689    444  (4%)   (4%)     6%
          Zinc (t)...........  98,112 22,469 (18%)  (38%)     8%
          Uranium (t)........   3,565    975   6%   (13%)   (12%)

Copper - Total copper production decreased by four per cent to 1,689 kt.
Production of between 1,705 and 1,820 kt is expected in the 2020 financial
year.

Escondida copper production decreased by six per cent to 1,135 kt, as an
expected 12 per cent decline in copper grade was partially offset by record
average concentrator throughput of 344 ktpd. Production of between 1,160 and
1,230 kt is expected in the 2020 financial year, underpinned by a further
uplift in concentrator throughput, partly offset by an approximately five per cent
reduction in copper grade of concentrator feed.

Pampa Norte copper production decreased by seven per cent to 247 kt due to
adverse weather impacts in the March 2019 quarter and a production outage at
Spence following a fire at the electro-winning plant in September 2018. This was
partially offset by record ore milled at Spence and Cerro Colorado after
implementing maintenance improvement initiatives as part of our broader
transformation program. Production at Pampa Norte is expected to be between
230 and 250 kt in the 2020 financial year.

Olympic Dam copper production increased by 17 per cent to 160 kt as a result of
the major smelter maintenance campaign in the prior period, which was partially
offset by an unplanned acid plant outage in August 2018, and two minor
production outages in May 2019 relating to the smelter and to the refinery
crane. Underground operations continue to perform well, with record development
kilometres achieved/(4)/. Production is expected to increase to between 180 and
205 kt in the 2020 financial year reflecting improved operational performance,
partially offset by planned maintenance related to the replacement of the refinery
crane (pre-work scheduled for the September 2019 quarter and physical replacement
and commissioning scheduled for the March 2020 quarter). During the 2019
financial year, we successfully completed the heap leach research and
development trial, confirming the viability of the technology to extract copper,
uranium, gold and silver at Olympic Dam.

Antamina copper production increased by six per cent to 147 kt and zinc
production decreased by 18 per cent to 98 kt, reflecting higher copper head
grades and lower zinc head grades, in line with the mine plan. Antamina
successfully completed a collective agreement with the SUTRACOMASA Union on 11
June 2019, for 36 months expiring on 31 July 2021. Copper production of
approximately 135 kt and zinc production of approximately 110 kt is expected
in the 2020 financial year.

During the June 2019 quarter, we went live with our Integrated Operations centre
in Santiago, which enables planning, control and monitoring across the supply
chains for Escondida and Spence.

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 60% 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             8
                   the year ended 30 June 2019

Iron Ore

Production
                                                     FY19 Jun Q19 Jun Q19
                                              Jun     vs   vs      vs
                                       FY19   Q19    FY18 Jun Q18 Mar Q19
                                     ------- ------ ----- ------- -------
        Iron ore production (kt).... 237,964 62,595   0%    (2%)    12%

Iron ore - Total iron ore production was broadly unchanged at 238 Mt (270 Mt on
a 100 per cent basis). Production of between 242 and 253 Mt (273 and 286 Mt on a
100 per cent basis) is expected in the 2020 financial year as we undertake a
significant maintenance program at Port Hedland. This program is designed to
improve productivity and provide a stable base for our tightly coupled supply
chain as we sustainably increase production towards 290 Mtpa (100 per cent
basis). As part of this, a major car dumper maintenance campaign is planned for
the September 2019 quarter, with a corresponding impact expected on production.

At WAIO, volumes were flat reflecting record production at Jimblebar and
inventory impacts from the Mt Whaleback fire in the prior period. This was
offset by the impacts of planned maintenance in the September 2018 quarter, a
train derailment on 5 November 2018 and Tropical Cyclone Veronica in March 2019.
The port ramp up subsequent to the cyclone was achieved on 10 April 2019. During
the quarter, WAIO achieved an annualised run rate above 290 Mt, excluding the
cyclone impact.

Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.

Projects

                               Capital      Initial
Project and                  expenditure   production
ownership                       US$M       target date                Capacity                             Progress
-----------                 ------------- ------------ ------------------------------------ -------------------------------------
South Flank .............      3,061          CY21     Sustaining iron ore mine to replace  On schedule and budget. The overall
(Australia)                                            production from the 80 Mtpa          project is 39% complete.
85%                                                    (100 per cent basis) Yandi mine.

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                   BHP Operational Review for             9
                   the year ended 30 June 2019

Coal

Production
                                                     FY19  Jun Q19 Jun Q19
                                              Jun     vs     vs      vs
                                      FY19    Q19    FY18  Jun Q18 Mar Q19
                                     ------- ------ ------ ------- -------
     Metallurgical coal (kt).......  42,401  11,894  (1%)    (1%)    20%
     Energy coal (kt)..............  27,487   7,429  (6%)   (18%)    10%

Metallurgical coal - Metallurgical coal production was broadly flat at 42 Mt (75
Mt on a 100 per cent basis). Production is expected to be between 41 and 45 Mt
(73 and 79 Mt on a 100 per cent basis) in the 2020 financial year. With major
wash plant shutdowns at Goonyella, Peak Downs and Caval Ridge planned in the
September 2019 quarter, volumes will be significantly weighted to the subsequent
three quarters of the financial year.

At Queensland Coal, record annual production was achieved at BMC due to improved
wash plant performance and increased yields at South Walker Creek and higher
wash plant throughput at Poitrel following the purchase of the remaining 50 per
cent of Red Mountain processing facility. Despite record stripping, BMA's
production decreased slightly due to unfavourable weather impacts (March and
June 2019 quarters) and lower wash plant yields (June 2019 quarter). 

Energy coal - Energy coal production for the 2019 financial year decreased six
per cent to 27 Mt. Production is expected to decrease to between 24 and 26
Mt in the 2020 financial year.

New South Wales Energy Coal production decreased by two per cent as record
stripping performance was offset by higher strip ratios and lower wash plant
yields as we progress through the monocline and optimise our mine plan to focus
on higher quality products given widening quality differentials. In the 2020
financial year, the combination of the monocline and a changed product mix to focus 
on higher quality products is expected to result in a decrease in production to between 
15 and 17 Mt.

Cerrejon production decreased by 13 per cent due to adverse weather and its
impacts on mine sequencing. Production is expected to be approximately 9 Mt in
the 2020 financial year.

Other

Nickel production
                                                FY19  Jun Q19 Jun Q19
                                         Jun     vs     vs      vs
                                 FY19    Q19    FY18  Jun Q18 Mar Q19
                               ------- ------- ------ ------- -------
         Nickel (kt)..........   87.4    28.7   (6%)    12%     49%

Nickel - Nickel West production decreased by six per cent to 87 kt as operations
were suspended following a fire at the Kalgoorlie smelter in September 2018. The
smelter returned to operation on 1 October 2018, with final repairs and ramp up
completed in the March 2019 quarter. The Kwinana refinery achieved record
saleable production of 74 kt in the 2019 financial year. Total nickel production
is expected to be broadly unchanged in the 2020 financial year.

Potash project

                       Investment
Project and ownership     US$M                        Scope                                        Progress
---------------------  ---------- ---------------------------------------------- ------------------------------------------
  Jansen Potash .....    2,700    Investment to finish the excavation and        The project is 84% complete and within
  (Canada)                        lining of the production and service shafts,   the approved budget. Boring equipment has
  100%                            and to continue the installation of essential  been removed from both shafts and
                                  surface infrastructure and utilities.          preparation work for final shaft lining
                                                                                 is continuing.

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                   BHP Operational Review for             10
                   the year ended 30 June 2019

Minerals exploration

Minerals exploration expenditure for the 2019 financial year was US$188 million,
of which US$128 million was expensed. Greenfield minerals exploration is
predominantly focused on advancing copper targets within Chile, Ecuador, Peru,
Canada, South Australia and the South-West United States.

During the June 2019 quarter, the second phase of the drilling program at Oak
Dam was progressed, with 12,425 metres in 10 holes. The program tested lateral
continuity, thicknesses, and orientation of the central part of the mineralised
system, with the drill results currently being evaluated and interpreted.

Consistent with our exploration focus on copper, in April 2019, BHP secured a
five per cent interest in Midland Exploration Inc., which has copper exploration
tenements in Canada.

In May 2019, BHP entered into a two-year, US$2 million Exploration Financing
Agreement with Riverside Resources to fund exploration in Mexico's north-eastern
Sonora region. The exploration program will focus on the central part of the
Laramide Copper Belt.

In July 2019, BHP entered into a binding earn-in and joint venture agreement
with Luminex for its Tarqui and Tarqui 2 mining concessions in Ecuador. BHP will
act as manager and operator of the joint venture company, and is preparing to continue
exploration activities on the sites.

Variance analysis relates to the relative performance of BHP and/or its
operations during the 2019 financial year compared with the 2018 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. Numbers
presented may not add up precisely to the totals provided due to rounding.
Copper equivalent production based on 2019 financial year average realised
prices.

The following footnotes apply to this Operational Review:
----------
(1) Excludes production from Onshore US.
(2) 2019 financial year unit cost guidance: Petroleum less than US$11/boe, Escondida
    less than US$1.15/lb, WAIO less than US$15/t, Queensland Coal US$68-72/t and NSWEC ~US$51/t;
    based on exchange rates of AUD/USD 0.75 and USD/CLP 663.
(3) 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) Based on business-as-usual development; excludes project development.

The following abbreviations may have been used throughout this report: barrels
(bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and
freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per
tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million
barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand
barrels of oil equivalent (Mboe); thousand barrels of oil equivalent per day
(Mboe/d); thousand ounces (koz); thousand standard cubic feet (Mscf); thousand
tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd);
tonnes (t); and wet metric tonnes (wmt).

In this release, the terms 'BHP', 'Group', 'BHP Group', 'we', 'us', 'our' and
ourselves' are used to refer to BHP Group Limited, BHP Group plc and, except
where the context otherwise requires, their respective subsidiaries as defined
in note 27 'Subsidiaries' in section 5.1 of BHP's 30 June 2018 Annual Report and
Form 20-F, unless stated otherwise. Notwithstanding that this release may
include production, financial and other information from non-operated assets,
non-operated assets are not included in the BHP Group and, as a result,
statements regarding our operations, assets and values apply only to our
operated assets unless stated otherwise.

--------------------------------------------------------------------------------
                   BHP Operational Review for             11
                   the year ended 30 June 2019

Sponsor: UBS South Africa (Pty) Limited

Further information on BHP can be found at: bhp.com

Media Relations                                  Investor Relations

Email: media.relations@bhp.com                   Email: investor.relations@bhp.com

Australia and Asia                               Australia and Asia

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United Kingdom and South Africa                  United Kingdom and South Africa

Neil Burrows                                     Elisa Morniroli
Tel: +44 20 7802 7484  Mobile: +44 7786 661 683  Tel: +44 20 7802 7611  Mobile: +44 7825 926 646

North America                                    Americas

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Tel: +1 713 961 8283  Mobile: +1 713 299 5342    Tel: +1 713 993 3737  Mobile: +1 347 882 3011


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--------------------------------------------------------------------------------
                   BHP Operational Review for             12
                   the year ended 30 June 2019

Production summary

                                                                  Quarter ended              Year to date
                                                      ------------------------------------- ---------------
                                                       Jun     Sep    Dec    Mar     Jun     Jun     Jun
                                             BHP       2018    2018   2018   2019    2019    2019    2018
                                           interest   ------- ------ ------ ------- ------- ------- -------
Petroleum /(1)/
Petroleum
Conventional
   Crude oil, condensate and NGL (Mboe)...             13,486 14,087 14,497  13,236  13,366  55,186  57,405
   Natural gas (bcf)......................               90.7  112.3   93.9    92.9    97.8   396.9   377.0
                                                      ------- ------ ------ ------- ------- ------- -------
   Total (Mboe)...........................             28,603 32,804 30,147  28,719  29,666 121,336 120,238
                                                      ------- ------ ------ ------- ------- ------- -------

Copper /(2)/
Copper
Payable metal in concentrate (kt)
   Escondida /(3)/........................   57.5%      246.1  240.0  212.6   205.4   224.1   882.1   925.8
   Antamina...............................   33.8%       34.6   37.0   38.3    34.5    37.4   147.2   139.5
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................              280.7  277.0  250.9   239.9   261.5 1,029.3 1,065.3
                                                      ------- ------ ------ ------- ------- ------- -------

Cathode (kt)
   Escondida /(3)/........................   57.5%       70.1   55.4   71.9    62.4    63.5   253.2   287.5
   Pampa Norte /(4)/......................    100%       70.6   43.4   61.8    67.2    74.1   246.5   263.8
   Olympic Dam............................    100%       42.0   33.3   31.6    50.2    45.2   160.3   136.7
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................              182.7  132.1  165.3   179.8   182.8   660.0   688.0
                                                      ------- ------ ------ ------- ------- ------- -------
                                                      ------- ------ ------ ------- ------- ------- -------
Total copper (kt).........................              463.4  409.1  416.2   419.7   444.3 1,689.3 1,753.3
                                                      ------- ------ ------ ------- ------- ------- -------

Lead
Payable metal in concentrate (t)
   Antamina...............................   33.8%        546    563    600     456     770   2,389   3,434
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................                546    563    600     456     770   2,389   3,434
                                                      ------- ------ ------ ------- ------- ------- -------

Zinc
Payable metal in concentrate (t)
   Antamina...............................   33.8%     35,983 30,558 24,237  20,848  22,469  98,112 119,800
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................             35,983 30,558 24,237  20,848  22,469  98,112 119,800
                                                      ------- ------ ------ ------- ------- ------- -------

Gold
Payable metal in concentrate (troy oz)
   Escondida /(3)/........................   57.5%     68,345 63,578 73,726  73,998  74,704 286,006 229,102
   Olympic Dam (refined gold).............    100%     33,497 23,471 17,856  28,609  37,032 106,968  91,556
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................            101,842 87,049 91,582 102,607 111,736 392,974 320,658
                                                      ------- ------ ------ ------- ------- ------- -------

Silver
Payable metal in concentrate (troy koz)
   Escondida /(3)/........................   57.5%      2,527  1,997  2,570   2,189   2,074   8,830   8,796
   Antamina...............................   33.8%      1,321  1,309  1,178   1,062   1,209   4,758   5,437
   Olympic Dam (refined silver)...........    100%        278    213    212     230     268     923     792
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................              4,126  3,519  3,960   3,481   3,551  14,511  15,025
                                                      ------- ------ ------ ------- ------- ------- -------

Uranium
Payable metal in concentrate (t)
   Olympic Dam............................    100%      1,123    555    929   1,106     975   3,565   3,364
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................              1,123    555    929   1,106     975   3,565   3,364
                                                      ------- ------ ------ ------- ------- ------- -------

Molybdenum
Payable metal in concentrate (t)
   Antamina...............................   33.8%        261    464    417      82     178   1,141   1,662
                                                      ------- ------ ------ ------- ------- ------- -------
   Total..................................                261    464    417      82     178   1,141   1,662
                                                      ------- ------ ------ ------- ------- ------- -------

--------------------------------------------------------------------------------
                   BHP Operational Review for             13
                   the year ended 30 June 2019

Production summary

                                                                Quarter ended             Year to date
                                                      ---------------------------------- ---------------
                                                       Jun    Sep    Dec    Mar    Jun    Jun     Jun
                                             BHP       2018   2018   2018   2019   2019   2019    2018
                                           interest   ------ ------ ------ ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
   Newman.................................     85%    18,500 16,378 17,578 15,608 17,058  66,622  67,071
   Area C Joint Venture...................     85%    12,041 11,696 10,280 11,627 13,837  47,440  51,517
   Yandi Joint Venture....................     85%    17,339 16,870 15,627 15,214 17,486  65,197  64,048
   Jimblebar /(6)/........................     85%    15,092 16,353 14,326 13,658 14,209  58,546  30,627
   Wheelarra..............................     85%       614    114     30     10      5     159  25,158
   Samarco................................     50%        --     --     --     --     --      --      --
                                                      ------ ------ ------ ------ ------ ------- -------
   Total..................................            63,586 61,411 57,841 56,117 62,595 237,964 238,421
                                                      ------ ------ ------ ------ ------ ------- -------

Coal
Metallurgical coal
Production (kt) /(7)/
   BMA....................................     50%     9,220  7,744  7,694  7,608  9,090  32,136  32,893
   BHP Mitsui Coal /(8)/..................     80%     2,789  2,614  2,578  2,269  2,804  10,265   9,747
                                                      ------ ------ ------ ------ ------ ------- -------
   Total..................................            12,009 10,358 10,272  9,877 11,894  42,401  42,640
                                                      ------ ------ ------ ------ ------ ------- -------

Energy coal
Production (kt)
   Australia..............................    100%     6,261  3,982  4,311  4,552  5,412  18,257  18,541
   Colombia...............................   33.3%     2,762  2,658  2,356  2,199  2,017   9,230  10,617
                                                      ------ ------ ------ ------ ------ ------- -------
   Total..................................             9,023  6,640  6,667  6,751  7,429  27,487  29,158
                                                      ------ ------ ------ ------ ------ ------- -------

Other
Nickel
Saleable production (kt)
   Nickel West /(9)/......................    100%      25.6   21.4   18.1   19.2   28.7    87.4    93.0
                                                      ------ ------ ------ ------ ------ ------- -------
   Total..................................              25.6   21.4   18.1   19.2   28.7    87.4    93.0
                                                      ------ ------ ------ ------ ------ ------- -------

Cobalt
Saleable production (t)
   Nickel West............................    100%       277    249    154    194    302     899   1,060
                                                      ------ ------ ------ ------ ------ ------- -------
   Total..................................               277    249    154    194    302     899   1,060
                                                      ------ ------ ------ ------ ------ ------- -------

(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific
    conversions are made and NGL is reported in barrels of oil equivalent
    (boe). Total boe conversions are based on 6 bcf of natural gas equals 1
    MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product.
    Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%.
(9) Production restated to include other nickel by-products.

Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.

--------------------------------------------------------------------------------
                   BHP Operational Review for             14
                   the year ended 30 June 2019

Production and sales report

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

Bass Strait
   Crude oil and condensate.................. (Mboe)       1,361    1,653    1,401      893    1,246     5,193    5,815
   NGL....................................... (Mboe)       1,428    1,840    1,447      849    1,299     5,435    6,132
   Natural gas............................... (bcf)         29.9     35.1     25.2     21.0     30.6     111.9    125.9
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        7.8      9.3      7.0      5.2      7.6      29.3     32.9
                                                        -------- -------- -------- -------- --------  -------- --------

North West Shelf
   Crude oil and condensate.................. (Mboe)       1,267    1,514    1,520    1,431    1,357     5,822    5,560
   NGL....................................... (Mboe)         186      242      206      193      189       830      823
   Natural gas............................... (bcf)         34.2     36.6     37.5     36.6     34.8     145.5    142.4
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        7.2      7.9      8.0      7.7      7.3      30.9     30.1
                                                        -------- -------- -------- -------- --------  -------- --------

Pyrenees
   Crude oil and condensate.................. (Mboe)       1,168      282    1,101      940    1,001     3,324    5,138
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        1.2      0.3      1.1      0.9      1.0       3.3      5.1
                                                        -------- -------- -------- -------- --------  -------- --------

Other Australia /(2)/
   Crude oil and condensate.................. (Mboe)           7        7        8        6        7        28       32
   Natural gas............................... (bcf)         13.9     13.8     13.9     13.0     12.2      52.9     56.7
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        2.3      2.3      2.3      2.2      2.0       8.8      9.5
                                                        -------- -------- -------- -------- --------  -------- --------

Atlantis /(3)/
   Crude oil and condensate.................. (Mboe)       3,471    3,190    3,802    3,888    3,607    14,487   13,329
   NGL....................................... (Mboe)         217      215      268      275      248     1,006      878
   Natural gas............................... (bcf)          1.5      1.5      1.9      2.0      2.2       7.6      6.7
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        3.9      3.7      4.4      4.5      4.2      16.8     15.3
                                                        -------- -------- -------- -------- --------  -------- --------

Mad Dog /(3)/
   Crude oil and condensate.................. (Mboe)         581    1,270    1,158    1,258    1,246     4,932    3,972
   NGL....................................... (Mboe)          27       61       54       58       23       196      198
   Natural gas............................... (bcf)          0.1      0.2      0.2      0.2      0.2       0.8      0.6
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        0.6      1.4      1.2      1.3      1.3       5.3      4.3
                                                        -------- -------- -------- -------- --------  -------- --------

Shenzi /(3)/
   Crude oil and condensate.................. (Mboe)       2,110    2,016    2,024    1,881    1,725     7,646    9,237
   NGL....................................... (Mboe)         151      122      121      112       (2)      353      616
   Natural gas............................... (bcf)          0.4      0.4      0.4      0.4      0.4       1.6      1.7
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        2.3      2.2      2.2      2.1      1.8       8.3     10.1
                                                        -------- -------- -------- -------- --------  -------- --------

Trinidad/Tobago
   Crude oil and condensate.................. (Mboe)         233      447      200      284      235     1,166      718
   Natural gas............................... (bcf)          9.8     24.0     14.0     19.5     17.3      74.8     40.0
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        1.9      4.4      2.5      3.5      3.1      13.6      7.4
                                                        -------- -------- -------- -------- --------  -------- --------

Other Americas /(3)//(4)/
   Crude oil and condensate.................. (Mboe)         313      207      218      284      272       981      938
   NGL....................................... (Mboe)          22        3        4       18        3        28       33
   Natural gas............................... (bcf)          0.3       --      0.1      0.2      0.1       0.4      0.5
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        0.4      0.2      0.2      0.3      0.3       1.1      1.1
                                                        -------- -------- -------- -------- --------  -------- --------

UK /(5)/
   Crude oil and condensate.................. (Mboe)          38       36       36       --       --        72      143
   NGL....................................... (Mboe)          18       21       21       --       --        42       88
   Natural gas............................... (bcf)          0.6      0.7      0.7       --       --       1.4      2.5
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        0.2      0.2      0.2       --       --       0.3      0.6
                                                        -------- -------- -------- -------- --------  -------- --------

Algeria
   Crude oil and condensate.................. (Mboe)         888      961      908      866      910     3,645    3,755
                                                        -------- -------- -------- -------- --------  -------- --------
   Total petroleum products.................. (MMboe)        0.9      1.0      0.9      0.9      0.9       3.6      3.8
                                                        -------- -------- -------- -------- --------  -------- --------

--------------------------------------------------------------------------------
                   BHP Operational Review for             15
                   the year ended 30 June 2019

Production and sales report

                                                                       Quarter ended                  Year to date
                                                        -------------------------------------------- ---------------
                                                          Jun      Sep      Dec      Mar      Jun     Jun     Jun
                                                          2018     2018     2018     2019     2019    2019    2018
                                                        -------- -------- -------- -------- -------- ------- -------
Petroleum - Total /(1)/
   Conventional
   Crude oil and condensate.................. (Mboe)      11,437   11,583   12,376   11,731   11,606  47,296  48,637
   NGL....................................... (Mboe)       2,049    2,504    2,121    1,505    1,760   7,890   8,768
   Natural gas............................... (bcf)         90.7    112.3     93.9     92.9     97.8   396.9   377.0
                                                        -------- -------- -------- -------- -------- ------- -------
   Total..................................... (Mboe)      28,603   32,804   30,147   28,719   29,666 121,336 120,238
                                                        -------- -------- -------- -------- -------- ------- -------
                                                        -------- -------- -------- -------- -------- ------- -------
Total petroleum production (MMboe)...........           48,952.0 52,854.7 36,061.0 28,719.3 29,666.0 147,301 192,346
                                                        -------- -------- -------- -------- -------- ------- -------

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
    Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(5) BHP completed the sale of its interest in the Bruce and Keith oil and gas
    fields on 30 November 2018. The sale has an effective date of 1 January
    2018.

--------------------------------------------------------------------------------
                   BHP Operational Review for             16
                   the year ended 30 June 2019

Production and sales report

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

Escondida, Chile /(1)/
   Material mined........................... (kt)         106,788  107,260  105,580  103,936  100,693  417,469  416,411
   Sulphide ore milled...................... (kt)          31,732   30,513   30,507   32,027   32,519  125,566  118,275
   Average concentrator head grade.......... (%)             0.96%    0.94%    0.87%    0.82%    0.86%    0.87%    0.99%
   Production ex mill....................... (kt)           253.6    241.9    219.9    216.9    230.9    909.6    956.1

   Production
   Payable copper........................... (kt)           246.1    240.0    212.6    205.4    224.1    882.1    925.8
   Copper cathode (EW)...................... (kt)            70.1     55.4     71.9     62.4     63.5    253.2    287.5
   - Oxide leach............................ (kt)            27.1     19.5     23.4     20.9     23.4     87.2    101.4
   - Sulphide leach......................... (kt)            43.0     35.8     48.5     41.5     40.1    165.9    186.1
                                                         -------- -------- -------- -------- -------- -------- --------
   Total copper............................. (kt)           316.2    295.4    284.5    267.8    287.6  1,135.3  1,213.3
                                                         -------- -------- -------- -------- -------- -------- --------
   Payable gold concentrate................. (troy oz)     68,345   63,578   73,726   73,998   74,704  286,006  229,102
   Payable silver concentrate............... (troy koz)     2,527    1,997    2,570    2,189    2,074    8,830    8,796

   Sales
   Payable copper........................... (kt)           260.3    216.5    229.2    212.0    223.4    881.1    920.4
   Copper cathode (EW)...................... (kt)            80.9     53.2     72.3     56.6     67.5    249.6    288.3
   Payable gold concentrate................. (troy oz)     68,345   63,578   73,726   73,999   74,704  286,007  229,102
   Payable silver concentrate............... (troy koz)     2,527    1,997    2,570    2,189    2,074    8,830    8,796

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

Pampa Norte, Chile
   Cerro Colorado
   Material mined........................... (kt)          17,918   18,488   19,875   15,561   13,534   67,458   77,256
   Ore milled............................... (kt)           4,833    4,802    5,069    4,277    4,740   18,888   18,300
   Average copper grade..................... (%)             0.58%    0.53%    0.62%    0.63%    0.64%    0.60%    0.59%

   Production
   Copper cathode (EW)...................... (kt)            19.0     14.2     19.4     18.2     23.4     75.2     63.3

   Sales
   Copper cathode (EW)...................... (kt)            20.9     13.8     19.0     15.5     26.8     75.1     64.6

   Spence
   Material mined........................... (kt)          23,103   23,007   21,661   18,632   19,213   82,513   89,976
   Ore milled............................... (kt)           4,009    5,642    5,428    4,376    5,224   20,670   19,447
   Average copper grade..................... (%)             1.11%    1.21%    1.10%    1.03%    1.02%    1.09%    1.13%

   Production
   Copper cathode (EW)...................... (kt)            51.6     29.2     42.4     49.0     50.7    171.3    200.5

   Sales
   Copper cathode (EW)...................... (kt)            57.1     29.7     39.1     46.1     55.0    169.9    202.1

--------------------------------------------------------------------------------
                   BHP Operational Review for             17
                   the year ended 30 June 2019

Production and sales report

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

Antamina, Peru
   Material mined (100%).................... (kt)          59,002   62,470   62,850   57,900   58,994  242,214  235,428
   Sulphide ore milled (100%)............... (kt)          12,973   13,197   12,912   11,466   12,864   50,439   51,059
   Average head grades
   - Copper................................. (%)             0.91%    0.96%    1.02%    1.04%    1.02%    1.01%    0.94%
   - Zinc................................... (%)             1.19%    1.10%    0.85%    0.87%    0.86%    0.92%    1.03%

   Production
   Payable copper........................... (kt)            34.6     37.0     38.3     34.5     37.4    147.2    139.5
   Payable zinc............................. (t)           35,983   30,558   24,237   20,848   22,469   98,112  119,800
   Payable silver........................... (troy koz)     1,321    1,309    1,178    1,062    1,209    4,758    5,437
   Payable lead............................. (t)              546      563      600      456      770    2,389    3,434
   Payable molybdenum....................... (t)              261      464      417       82      178    1,141    1,662

   Sales
   Payable copper........................... (kt)            36.6     33.6     40.7     33.3     36.0    143.6    137.6
   Payable zinc............................. (t)           33,088   31,822   26,072   20,595   21,750  100,239  115,108
   Payable silver........................... (troy koz)     1,311    1,193    1,236    1,027      937    4,393    5,308
   Payable lead............................. (t)              595      612      649      749      296    2,306    4,050
   Payable molybdenum....................... (t)              388      208      535      256      127    1,126    1,749

Olympic Dam, Australia
   Material mined /(1)/..................... (kt)           2,201    2,044    2,434    2,191    2,425    9,094    7,499
   Ore milled............................... (kt)           2,171    1,242    2,157    2,371    2,195    7,965    7,215
   Average copper grade..................... (%)             2.12%    2.05%    2.10%    2.22%    2.30%    2.18%    2.19%
   Average uranium grade.................... (kg/t)          0.69     0.62     0.62     0.65     0.65     0.64     0.64

   Production
   Copper cathode (ER and EW)............... (kt)            42.0     33.3     31.6     50.2     45.2    160.3    136.7
   Payable uranium.......................... (t)            1,123      555      929    1,106      975    3,565    3,364
   Refined gold............................. (troy oz)     33,497   23,471   17,856   28,609   37,032  106,968   91,556
   Refined silver........................... (troy koz)       278      213      212      230      268      923      792

   Sales
   Copper cathode (ER and EW)............... (kt)            46.0     33.9     26.6     47.4     50.5    158.4    138.7
   Payable uranium.......................... (t)            1,230      765      828      550    1,427    3,570    2,757
   Refined gold............................. (troy oz)     35,714   21,145   17,812   27,574   36,133  102,664   96,863
   Refined silver........................... (troy koz)       307      216      177      241      257      891      846

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

--------------------------------------------------------------------------------
                   BHP Operational Review for             18
                   the year ended 30 June 2019

Production and sales report

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

Pilbara, Australia
   Production
   Newman................................... (kt)          18,500   16,378   17,578   15,608   17,058   66,622   67,071
   Area C Joint Venture..................... (kt)          12,041   11,696   10,280   11,627   13,837   47,440   51,517
   Yandi Joint Venture...................... (kt)          17,339   16,870   15,627   15,214   17,486   65,197   64,048
   Jimblebar /(1)/.......................... (kt)          15,092   16,353   14,326   13,658   14,209   58,546   30,627
   Wheelarra................................ (kt)             614      114       30       10        5      159   25,158
                                                         -------- -------- -------- -------- -------- -------- --------
   Total production......................... (kt)          63,586   61,411   57,841   56,117   62,595  237,964  238,421
                                                         -------- -------- -------- -------- -------- -------- --------
   Total production (100%).................. (kt)          72,145   69,342   65,515   63,609   71,133  269,599  275,091
                                                         -------- -------- -------- -------- -------- -------- --------

   Sales
   Lump..................................... (kt)          15,173   15,014   14,020   13,603   15,296   57,933   58,207
   Fines.................................... (kt)          47,730   46,527   44,059   41,981   47,570  180,137  178,564
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (kt)          62,903   61,541   58,079   55,584   62,866  238,070  236,771
                                                         -------- -------- -------- -------- -------- -------- --------
   Total sales (100%)....................... (kt)          71,385   69,421   65,758   62,853   72,478  270,510  273,239
                                                         -------- -------- -------- -------- -------- -------- --------

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

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

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

(1) Mining and processing  operations remain suspended  following the failure of
    the Fundao tailings dam and Santarem water dam on 5 November 2015.

--------------------------------------------------------------------------------
                   BHP Operational Review for             19
                   the year ended 30 June 2019

Production and sales report

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

Queensland Coal
   Production /(1)/
   BMA
   Blackwater............................... (kt)           1,849    1,704    1,680    1,484    1,735    6,603    6,688
   Goonyella................................ (kt)           2,639    1,989    1,813    2,141    2,620    8,563    7,961
   Peak Downs............................... (kt)           1,658    1,131    1,685    1,468    1,649    5,933    6,350
   Saraji................................... (kt)           1,201    1,111    1,288    1,250    1,243    4,892    5,053
   Daunia................................... (kt)             629      620      419      470      669    2,178    2,556
   Caval Ridge.............................. (kt)           1,244    1,189      809      795    1,174    3,967    4,285
                                                         -------- -------- -------- -------- -------- -------- --------
   Total BMA................................ (kt)           9,220    7,744    7,694    7,608    9,090   32,136   32,893
                                                         -------- -------- -------- -------- -------- -------- --------
   Total BMA (100%)......................... (kt)          18,440   15,488   15,388   15,216   18,180   64,272   65,786
                                                         -------- -------- -------- -------- -------- -------- --------

   BHP Mitsui Coal /(2)/
   South Walker Creek....................... (kt)           1,615    1,505    1,636    1,429    1,624    6,194    6,029
   Poitrel.................................. (kt)           1,174    1,109      942      840    1,180    4,071    3,718
                                                         -------- -------- -------- -------- -------- -------- --------
   Total BHP Mitsui Coal.................... (kt)           2,789    2,614    2,578    2,269    2,804   10,265    9,747
                                                         -------- -------- -------- -------- -------- -------- --------
                                                         -------- -------- -------- -------- -------- -------- --------
   Total Queensland Coal.................... (kt)          12,009   10,358   10,272    9,877   11,894   42,401   42,640
                                                         -------- -------- -------- -------- -------- -------- --------
   Total Queensland Coal (100%)............. (kt)          21,229   18,102   17,966   17,485   20,984   74,537   75,533
                                                         -------- -------- -------- -------- -------- -------- --------

   Sales
   Coking coal.............................. (kt)           8,489    7,356    7,514    7,221    7,932   30,023   29,941
   Weak coking coal......................... (kt)           2,866    2,813    3,058    3,282    2,942   12,095   11,430
   Thermal coal............................. (kt)              85      141      157      379      350    1,027      528
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (kt)          11,440   10,310   10,729   10,882   11,224   43,145   41,899
                                                         -------- -------- -------- -------- -------- -------- --------
   Total (100%)............................. (kt)          20,162   18,102   18,818   19,176   19,789   75,885   74,083
                                                         -------- -------- -------- -------- -------- -------- --------

(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.

NSW Energy Coal, Australia
   Production............................... (kt)           6,261    3,982    4,311    4,552    5,412   18,257   18,541

   Sales
   Export thermal coal...................... (kt)           5,795    3,549    4,809    3,529    5,181   17,068   16,646
   Inland thermal coal...................... (kt)             160      332      393      302      975    2,002    1,376
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (kt)           5,955    3,881    5,202    3,831    6,156   19,070   18,022
                                                         -------- -------- -------- -------- -------- -------- --------

Cerrejon, Colombia
   Production............................... (kt)           2,762    2,658    2,356    2,199    2,017    9,230   10,617
   Sales thermal coal - export.............. (kt)           2,763    2,589    2,297    2,200    2,245    9,331   10,380

--------------------------------------------------------------------------------
                   BHP Operational Review for             20
                   the year ended 30 June 2019

Production and sales report

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

Nickel West, Australia
   Mt Keith
   Nickel concentrate....................... (kt)            55.6     50.2     44.9     52.5     52.8    200.4    204.8
   Average nickel grade..................... (%)             18.8     18.9     19.8     19.2     19.5     77.4     80.9

   Leinster
   Nickel concentrate....................... (kt)            78.4     78.8     65.3     51.8     48.3    244.2    299.4
   Average nickel grade..................... (%)              9.8      8.4      8.4      9.3     10.8     36.9     37.2

   Saleable production
   Refined nickel /(1)//(2)/................ (kt)            18.5     19.8     16.3     17.6     19.9     73.6     71.4
   Intermediates and nickel
     by-products /(1)//(3)/................. (kt)             7.1      1.6      1.8      1.6      8.8     13.8     21.6
                                                         -------- -------- -------- -------- -------- -------- --------
   Total nickel /(1)/....................... (kt)            25.6     21.4     18.1     19.2     28.7     87.4     93.0
                                                         -------- -------- -------- -------- -------- -------- --------

   Cobalt by-products....................... (t)              277      249      154      194      302      899    1,060

   Sales
   Refined nickel /(1)//(2)/................ (kt)            17.5     19.3     17.3     17.9     19.9     74.4     71.0
   Intermediates and nickel
     by-products /(1)//(3)/................. (kt)             6.3      2.2      2.1      0.1      8.4     12.8     20.7
                                                         -------- -------- -------- -------- -------- -------- --------
   Total nickel /(1)/....................... (kt)            23.8     21.5     19.4     18.0     28.3     87.2     91.7
                                                         -------- -------- -------- -------- -------- -------- --------
   Cobalt by-products....................... (t)              277      249      154      194      302      899    1,060

(1) Production and sales restated to include other nickel by-products.
(2) High quality refined nickel metal, including briquettes and powder.
(3) Nickel contained in matte and by-product streams.

--------------------------------------------------------------------------------
                   BHP Operational Review for             21
                   the year ended 30 June 2019

Production and sales report

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

Eagle Ford /(3)/
   Crude oil and condensate................. (Mboe)         3,826    3,256    1,035       --       --    4,291   13,841
   NGL...................................... (Mboe)         1,767    1,919      614       --       --    2,533    7,278
   Natural gas.............................. (bcf)           13.9     13.8      4.3       --       --     18.1     54.7
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          7.9      7.5      2.4       --       --      9.8     30.2
                                                         -------- -------- -------- -------- -------- -------- --------

Permian /(3)/
   Crude oil and condensate................. (Mboe)         1,903    1,478      631       --       --    2,109    5,622
   NGL...................................... (Mboe)           770      687      284       --       --      971    2,282
   Natural gas.............................. (bcf)            6.4      4.8      1.9       --       --      6.7     18.6
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          3.7      3.0      1.2       --       --      4.2     11.0
                                                         -------- -------- -------- -------- -------- -------- --------

Haynesville /(3)/
   Crude oil and condensate................. (Mboe)            --       11       --       --       --       11        1
   NGL...................................... (Mboe)            --       --       --       --       --       --       --
   Natural gas.............................. (bcf)           33.1     39.0     13.9       --       --     52.9    105.3
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          5.5      6.5      2.3       --       --      8.8     17.6
                                                         -------- -------- -------- -------- -------- -------- --------

Fayetteville /(4)/
   Natural gas.............................. (bcf)           19.1     18.6       --       --       --     18.6     79.9
                                                         -------- -------- -------- -------- -------- -------- --------
   Total petroleum products................. (MMboe)          3.2      3.1       --       --       --      3.1     13.3
                                                         -------- -------- -------- -------- -------- -------- --------

Onshore US
   Crude oil and condensate................. (Mboe)         5,729    4,745    1,666       --       --    6,411   19,464
   NGL...................................... (Mboe)         2,537    2,606      898       --       --    3,504    9,560
   Natural gas.............................. (bcf)           72.5     76.2     20.1       --       --     96.3    258.5
                                                         -------- -------- -------- -------- -------- -------- --------
   Total.................................... (Mboe)        20,349   20,051    5,914       --       --   25,965   72,107
                                                         -------- -------- -------- -------- -------- -------- --------

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

--------------------------------------------------------------------------------
                   BHP Operational Review for             22
                   the year ended 30 June 2019

Date: 17/07/2019 07:05:00
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