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
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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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