Quarterly Production Report

BHP Group Limited
18 April 2024
 

                                                                                                                                18 April 2024

BHP Group Limited

Operational review for the nine months ended 31 March 2024

Solid operational performance in copper, iron ore and energy coal.

"We remain on track to meet copper, iron ore and energy coal production for the year. Copper volumes have increased by 10 per cent reflecting strong performance and additional tonnes from Copper South Australia, record year-to-date performance from Spence, and improved grades and production at Escondida.

"Western Australia Iron Ore, the lowest cost iron ore producer globally, delivered another consistent period of production despite heavy rainfall. We continue to invest in improvements to our rail and port operations, which are essential for growth in the medium term to 305 million tonnes per annum and beyond.

"At our BMA metallurgical coal operations in Queensland, significant wet weather including the impact of two tropical cyclones and operational challenges impacted production and unit costs, and we have revised guidance for the year. We successfully completed the sale of the Blackwater and Daunia mines on 2 April for a total of up to US$4.1 bn (100%).

"In Canada, the Jansen Stage 1 project remains ahead of its initial schedule and is now 44 per cent complete. In Western Australia, we expect to announce a decision on the future of our nickel business in the coming months, where efforts to optimise operations and preserve value are underway."

Mike Henry

BHP Chief Executive Officer

Summary

Operational performance

Portfolio

Copper production increased 10%

Completed sale of Blackwater and Daunia

Increased copper production driven by record production at Spence, strong operational performance at Copper South Australia (and the contribution from Prominent Hill and Carrapateena), and improved performance and grade at Escondida.

FY24 production guidance for BMA has been lowered to 21.5 - 22.5 Mt (43 - 45 Mt at 100%). Other updates to FY24 production guidance are reflected in the table below. FY24 unit cost guidance1 for BMA has been increased to US$119/t - US$125/t.

We completed the strategic reshaping of our metallurgical coal business with the divestment of BHP Mitsubishi Alliance's (BMA) Blackwater and Daunia mines to Whitehaven Coal on 2 April for a total cash consideration of up to US$4.1 bn (100%).

BMA now has a more focused operational footprint and a greater portion of higher quality metallurgical coal (>85%) which is expected to achieve higher relative margins in a decarbonising world.

ESG

Governance

MSCI upgrade

Board update

In March 2024, ESG ratings provider MSCI upgraded BHP's overall company score based on their assessment of performance under the Social Pillar. This reflects the progress made in Brazil, including in negotiations, and our commitment to deliver full and fair remediation and compensation.

In March, we announced the appointment of Ross McEwan and Don Lindsay as Non-executive Directors, effective 3 April 2024 and 1 May 2024 respectively. We also announced the retirement of Ian Cockerill as a Non-executive Director, effective 4 April 2024.

Production

Quarter performance

YTD performance

FY24 production guidance


Q3 FY24

v Q2
FY24

v Q3
FY23

YTD Mar FY24

v YTD Mar FY23

Previous

Current


Copper (kt)

 465.9

7%

15%

 1,360.3

10%

1,720 - 1,910

1,720 - 1,910


  Escondida (kt)

288.2

13%

15%

816.1

7%

1,080 - 1,180

1,080 - 1,180

Unchanged

  Pampa Norte (kt)

 61.6

3%

(16%)

 199.7

(9%)

210 - 250i

210 - 250i

Upper end

  Copper South Australia (kt)

 79.0

(4%)

53%

 232.7

49%

310 - 340

310 - 340

Unchanged

  Antamina (kt)

33.9

(14%)

15%

105.6

4%

120 - 140

120 - 140

Unchanged

  Carajás (kt)

 3.2

78%


 6.2


-

-

-

Iron ore (Mt)

 61.5

(7%)

3%

 190.5

(1%)

254 - 264.5

254 - 264.5


  WAIO (Mt)

 60.3

(6%)

3%

 186.8

(1%)

250 - 260

250 - 260

Unchanged

  WAIO (100% basis) (Mt)

 68.1

(6%)

3%

 210.2

(1%)

282 - 294

282 - 294

Unchanged

  Samarco (Mt)

1.2

(10%)

12%

3.7

13%

4 - 4.5

4 - 4.5

Upper end

Metallurgical coal - BMA (Mt)

 6.0

6%

(13%)

 17.4

(16%)

23 - 25

21.5 - 22.5

Lowered

  BMA (100% basis) (Mt)

 12.1

6%

(13%)

 34.7

(16%)

46 - 50

43 - 45

Lowered

Energy coal - NSWEC (Mt)

 4.1

8%

5%

 11.6

23%

13 - 15

13 - 15

Upper end

Nickel - Western Australia Nickel (kt)

 18.8

(4%)

(4%)

 58.6

1%

77 - 87

77 - 87

Lower half











Note: changes made to FY24 production guidance since the Q2 FY24 Operational review are shown in italics.

i        Production guidance for FY24 is for Spence only and excludes Cerro Colorado which produced 11 kt before ceasing production on 9 November 2023.

 

 

1

BHP | Operational review for the nine months ended 31 March 2024

 

Segment and asset performance | FY24 YTD v FY23 YTD


Further information in Appendix 1

Detailed production and sales information for all operations in Appendix 2

Copper

Production

1,360 kt Up 10%

YTD Mar FY23 1,240 kt

FY24e 1,720 - 1,910 kt

 

Average realised price

US$3.72/lb Up 5%

HY24 US$3.66/lb

 

 

Total copper production increased by 10% to 1,360 kt. Copper production guidance for FY24 remains unchanged at between 1,720 and 1,910 kt.

Escondida 816 kt Up 7% (100% basis)

Increased production was primarily due to a higher concentrator feed grade of 0.85%, increasing from 0.79%, as mining progressed into areas of high grade ore as planned following the implementation of measures to manage geotechnical events. Concentrator feed grade for FY24 is expected to be between 0.85% and 0.90%, with 0.92% grade achieved in Q3 FY24. Production guidance for FY24 remains unchanged at between 1,080 and 1,180 kt.

Pampa Norte 200 kt Down 9%

Spence production increased by 3% to a nine-month record of 189 kt, driven by improved concentrator throughput and higher recoveries. Record concentrate production was partially offset by lower cathode production, in line with an expected decline in stacked feed grade. The concentrator plant modifications which commenced in August 2022 are expected to be completed in FY24.

In March 2024, Spence achieved fully autonomous mine haulage operations (ahead of the Q4 FY24 target date) and has deployed a total of 33 autonomous trucks.

FY24 production for Spence is expected to be at the upper end of the guidance range of between 210 and 250kt.

Cerro Colorado entered temporary care and maintenance in December 2023, after producing 11 kt for the period.

Copper South Australia 233 kt Up 49%

Production increased by 49% due to the addition of volumes this year from Prominent Hill and Carrapateena, and strong underlying operational performance at Olympic Dam including the highest quarter of material mined in over 10 years in Q3 FY24. Strong smelter performance at Olympic Dam was supported by ongoing transfers of concentrate from Prominent Hill and initial transfers from Carrapateena in Q3 FY24, for processing to higher margin cathode. Crusher 2 at Carrapateena was commissioned in Q3 FY24 and remains on track to ramp up in Q4 FY24.

Production guidance for FY24 remains unchanged at between 310 and 340 kt.

We are continuing exploration drilling across the Copper South Australia province to enhance our resource knowledge in support of our growth studies. At Oak Dam, we are progressing the external approval process for an underground access decline to enable faster and lower cost resource definition drilling of the mineral deposit, and we expect to be able to provide an Inferred Mineral Resource for Oak Dam later this calendar year.

Other copper

At Antamina, copper production increased by 4% to 106 kt, while zinc production was 2% higher at 88 kt, both as a result of higher throughput offsetting planned lower concentrator feed grades. Production guidance remains unchanged for FY24, with copper production of between 120 and 140 kt, and zinc production of between 85 and 105 kt.

Carajás produced 6.2 kt of copper and 4.1 troy koz of gold. In Q3 FY24 operations continued to ramp back up, and shipments also resumed, following the temporary stoppage of operations between August and October 2023 due to a geotechnical event.

2

BHP | Operational review for the nine months ended 31 March 2024

 

Iron ore

Production

190 Mt Down 1%

YTD Mar FY23 192 Mt

FY24e 254 - 264.5 Mt

 

Average realised price

US$104.53/wmt Up 3%

HY24 US$103.70/wmt

 

 

 

Total iron ore production decreased by 1% to 190 Mt. Production guidance for FY24 remains unchanged at between 254 and 264.5 Mt.

WAIO 187 Mt Down 1% | 210 Mt (100% basis)

Production was marginally lower due to heavy rainfall throughout Q3 FY24, the continued tie-in activity for the Rail Technology Programme (RTP1), the impacts of the ongoing ramp up of the Central Pilbara hub (South Flank and Mining Area C) and a bushfire near Yandi.

South Flank remains on track to ramp up to full production capacity of 80 Mtpa (100% basis) by the end of FY24. The Port Debottlenecking Project (PDP1) was commissioned in December 2023 and ramp up remains on track to be completed in CY24.

Production guidance for FY24 remains unchanged at between 250 and 260 Mt (282 and 294 Mt on a 100% basis).

Samarco 3.7 Mt Up 13% | 7.4 Mt (100% basis)

Production increased as a result of higher concentrator throughput. FY24 production is expected to be at the upper end of the 4 - 4.5 Mt guidance range. 

Coal

Metallurgical coal

Production

17.4 Mt Down 16%

YTD Mar FY23 20.5 Mt

FY24e 21.5 - 22.5 Mt

 

Average realised price

US$272.09/t Up 6%

HY24 US$266.43/t  

BMA 17.4 Mt Down 16% | 34.7 Mt (100% basis)

Following the tragic fatality of a team member in January 2024, BMA operations were suspended for 24 hours while a safety stop was implemented across all mines, and for a further 3.5 days at Saraji.

Production has been impacted by increased planned maintenance, an extended longwall move at Broadmeadow as well as increased stripping to improve supply chain stability at our open cut operations to restore depleted inventory positions arising from extended weather impacts and labour constraints over recent years. Our focus on restoring depleted inventory will continue into CY25.

Despite improved production in Q3 FY24, the impacts of higher than planned wet weather, including two tropical cyclones in the region, and the temporary suspension of operations following the fatality at Saraji have impacted our FY24 production estimates. Production for FY24 is now expected to be between 21.5 and 22.5 Mt (43 and 45 Mt on a 100% basis). This has been lowered from 23 - 25 Mt (46 - 50 Mt on a 100% basis).

As a result, unit cost guidance for FY241 has increased to between US$119/t and US$125/t, from US$110 - US$116/t.

 

3

BHP | Operational review for the nine months ended 31 March 2024

Energy coal

Production

11.6 Mt Up 23%

YTD Mar FY23 9.4 Mt

FY24e 13 - 15 Mt

 

Average realised price

US$120.97/t Down 6%

HY24 US$123.29/t

NSWEC 11.6 Mt Up 23%

Increased production as a result of continued strong operating performance as improved weather conditions enabled an uplift in truck productivity. Domestic sales under the NSW Government Coal Market Price Emergency (Directions for Coal Mines) Notice commenced in Q4 FY23, which has resulted in a lower proportion of washed coal and further contributed to the higher volumes.

Production for FY24 is expected to be at the upper end of the guidance range of between 13 and 15 Mt.

The approval process in relation to the modification request submitted to the NSW Government to extend mining approval to 30 June 2030 will continue into FY25. The approval would allow NSWEC to continue mining beyond its current mining consent that expires in 2026 and proceed with a managed process to cease mining at the asset by the end of FY30.

Group & Unallocated

Nickel

Production

59 kt Up 1%

YTD Mar FY23 58 kt

FY24e 77 - 87 kt

 

Average realised price

US$18,104/t Down 1%

HY24 US$18,602/t

Western Australia Nickel 59 kt Up 1%

Production increased, despite significant wet weather impacts in Q3 FY24. Production for FY24 is expected to be in the lower half of the guidance range of between 77 and 87 kt.

As announced in our HY24 results in February 2024, we continue to review our plans for Western Australia Nickel with a focus on preserving cash. This includes optimising operations and maintenance schedules, reviewing capital plans, and reducing contractor spend and equipment hire. Our review also includes assessing the potential to place Nickel West into a period of care and maintenance and the phasing and capital spend for the development of the West Musgrave project. We expect to provide an update on the longer-term future of Western Australia Nickel by the FY24 results in August 2024.

Quarterly performance | Q3 FY24 v Q2 FY24

Copper

Iron ore

466 kt Up 7%

Q2 FY24 437 kt

Higher concentrator grade at Escondida and concentrator throughput at Spence, partially offset by lower volumes at Copper South Australia due to planned maintenance and the commissioning of Crusher 2 at Carrapateena in Q3 FY24.

61 Mt Down 7%

Q2 FY24 66 Mt

Lower production at WAIO as a result of wet weather, a bushfire near Yandi and the impacts of the RTP1 tie-in activity, partially offset by improved underlying mine performance.

Metallurgical coal

Energy coal

6.0 Mt Up 6%

Q2 FY24 5.7 Mt

Production increased due to improved strip ratio and yield despite unfavourable weather. Operations were temporarily suspended for safety stops following the fatality of a team member at Saraji.

4.1 Mt Up 8%

Q2 FY24 3.9 Mt

Increased production as a result of favourable mining sequence, strong production performance and a reduced proportion of washed coal.

Nickel


19 kt Down 4%

Q2 FY24 20 kt

Lower volumes due to planned maintenance at the Kwinana Refinery and a severe weather event in March.



The following footnotes apply to this Operational Review:

1          FY24 unit cost guidance is based on exchange rate of AUD/USD 0.67.

4

 

BHP | Operational review for the nine months ended 31 March 2024

 

Appendix 1

Average realised prices1


Q3 FY24

YTD Mar FY24

Q3 FY24 v
Q2 FY24

YTD Mar FY24 v

H1 FY24

Copper (US$/lb)2

 3.85

 3.72

5%

5%

Iron ore (US$/wmt, FOB)

 106.30

 104.53

(3)%

3%

Metallurgical coal (US$/t)

 281.51

 272.09

(4)%

6%

Hard coking coal (US$/t)3

 293.94

 281.98

(4)%

7%

Weak coking coal (US$/t)3

 208.91

 206.38

(2)%

2%

Thermal coal (US$/t)4

 116.11

 120.97

(4)%

(6)%

Nickel metal (US$/t)5

 16,581

 18,104

(1)%

(1)%

1       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.

2       Does not include sales from assets acquired through the purchase of OZL.

3       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.

4       Export sales only. Includes thermal coal sales from metallurgical coal mines.

5       Relates to refined nickel metal only, excludes intermediate products and nickel sulphate.

Current year unit cost guidance


Previous

Current



FY24 guidance1

FY24 guidance1


Escondida unit cost (US$/lb)2

1.40 - 1.70

1.40 - 1.70

Unchanged

Spence unit cost (US$/lb)

2.00 - 2.30

2.00 - 2.30

Unchanged

WAIO unit cost (US$/t)

17.40 - 18.90

17.40 - 18.90

Unchanged

BMA unit cost (US$/t)

110 - 116

119 - 125

Increased

1       FY24 unit cost guidance is based on exchange rates of AUD/USD 0.67 and USD/CLP 810.

2       Escondida unit costs for FY24 onwards exclude revenue-based government royalties.

Medium term guidance


Production


guidance

guidance1

Escondida2

1,200 - 1,300 kt

US$1.30 - $1.60/lb3

Spence4

~250 kt

WAIO (100% basis)

>305 Mt

1       Medium term unit cost guidance is based on exchange rates of AUD/USD 0.67 and USD/CLP 810.

2       Medium term refers to an average across FY25 and FY26.

3       Escondida unit costs for FY24 onwards exclude revenue-based government royalties.

4       Average of 250 ktpa over five years on the basis that remediation of the previously identified TSF anomalies does not impact operations.

Major projects

Commodity

Project and ownership

Project scope / capacity

Capital
expenditure
US$M

First
production
target date

Progress

Potash

Jansen Stage 1
(Canada)
100%

Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.15 Mtpa.

5,723

End-CY26

Project is 44% complete

Potash

Jansen Stage 2
(Canada)
100%

Development of additional mining districts, completion of the second shaft hoist infrastructure, expansion of processing facilities and addition of rail cars to facilitate production of an incremental 4.36 Mtpa.

4,859

FY29

Approval announced October 2023

Exploration

Minerals exploration and evaluation expenditure was US$311 m for YTD March 24 (YTD Mar 23: US$239 m) of which US$267 m was expensed (YTD Mar 23: US$196 m).

 

 

5

 

BHP | Operational review for the nine months ended 31 March 2024

Appendix 2





Production



Sales





Quarter ended


Year to date



Quarter ended


Year to date





Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var



Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var





2023

2023

2023

2023

2024


2024

2023

%



2023

2023

2023

2023

2024


2024

2023

%

Group production and sales summary



















 

 



By commodity



 

















 

 



Metals production is payable metal unless otherwise noted.




















 

 


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

















 

 


Copper

Payable metal in concentrate

kt


262.4

310.7

317.3

308.7

339.1


965.1

807.2

20%



268.4

323.1

298.0

316.5

281.6


896.1

801.4

12%


Escondida

kt


200.8

220.5

221.3

207.7

239.2


668.2

612.2

9%



197.3

220.3

209.5

211.7

204.0


625.2

610.0

2%


Pampa Norte

kt


32.0

32.2

38.8

32.6

39.5


110.9

93.1

19%



38.7

38.6

31.3

34.9

26.9


93.1

86.7

7%


Copper South Australia

kt



19.9

23.5

27.4

23.3


74.2






27.6

22.2

31.6

17.1


70.9




Antamina

kt


29.6

36.5

32.5

39.2

33.9


105.6

101.9

4%



32.4

34.5

32.8

38.3

31.3


102.4

104.7

(2)%


Carajás

kt



1.6

1.2

1.8

3.2


6.2






2.1

2.2

-

2.3


4.5




Cathode

kt


143.5

165.5

139.7

128.7

126.8


395.2

433.1

(9)%



130.3

179.9

131.9

137.6

120.1


389.6

420.4

(7)%


Escondida

kt


50.8

72.5

52.0

46.9

49.0


147.9

150.1

(1)%



43.8

78.0

49.2

52.2

44.3


145.7

143.2

2%


Pampa Norte

kt


41.0

36.3

39.5

27.2

22.1


88.8

127.2

(30)%



36.0

42.4

36.6

31.1

22.1


89.8

124.0

(28)%


Copper South Australia

kt


51.7

56.7

48.2

54.6

55.7


158.5

155.8

2%



50.5

59.5

46.1

54.3

53.7


154.1

153.2

1%


Total

kt


405.9

476.2

457.0

437.4

465.9


1,360.3

1,240.3

10%



398.7

503.0

429.9

454.1

401.7


1,285.7

1,221.8

5%

Lead

Payable metal in concentrate

t


169

146

96

105

-


201

511

(61)%



181

143

154

91

108


353

402

(12)%


Antamina

t


169

146

96

105

-


201

511

(61)%



181

143

154

91

108


353

402

(12)%

Zinc

Payable metal in concentrate

t


23,612

38,822

35,669

33,475

18,409


87,553

86,226

2%



25,851

37,629

33,912

37,092

17,559


88,563

88,798

0%


Antamina

t


23,612

38,822

35,669

33,475

18,409


87,553

86,226

2%



25,851

37,629

33,912

37,092

17,559


88,563

88,798

0%

Gold

Payable metal in concentrate

troy oz


57,106

96,655

89,024

94,794

79,284


263,102

153,140

72%



57,106

108,552

87,703

98,969

70,493


257,165

153,140

68%


Escondida

troy oz


48,954

53,503

48,063

48,633

38,955


135,651

135,592

0%



48,954

53,503

48,063

48,633

38,955


135,651

135,592

0%


Pampa Norte

troy oz


8,152

9,263

3,931

2,854

1,819


8,604

17,548

(51)%



8,152

9,263

3,931

2,854

1,819


8,604

17,548

(51)%


Copper South Australia

troy oz



32,736

36,228

42,051

36,427


114,706






44,098

34,176

47,482

28,136


109,794




Carajás

troy oz



1,153

802

1,256

2,083


4,141






1,688

1,533

-

1,583


3,116




Refined gold

troy oz


49,086

46,479

53,028

55,828

49,128


157,984

139,550

13%



47,300

49,182

54,036

55,349

41,710


151,095

138,742

9%


Copper South Australia

troy oz


49,086

46,479

53,028

55,828

49,128


157,984

139,550

13%



47,300

49,182

54,036

55,349

41,710


151,095

138,742

9%


Total

troy oz


106,192

143,134

142,052

150,622

128,412


421,086

292,690

44%



104,406

157,734

141,739

154,318

112,203


408,260

291,882

40%

Silver

Payable metal in concentrate

troy koz


2,556

2,592

2,582

3,074

2,620


8,276

7,886

5%



2,523

2,409

2,527

2,938

2,431


7,896

7,605

4%


Escondida

troy koz


1,346

1,008

1,168

1,401

1,328


3,897

4,066

(4)%



1,346

1,008

1,168

1,401

1,328


3,897

4,066

(4)%


Pampa Norte

troy koz


409

412

356

388

327


1,071

906

18%



409

412

356

388

327


1,071

906

18%


Copper South Australia

troy koz



201

260

310

252


822






242

258

364

189


811




Antamina

troy koz


801

971

798

975

713


2,486

2,914

(15)%



768

747

745

785

587


2,117

2,633

(20)%


Refined silver

troy koz


277

256

261

221

248


730

833

(12)%



307

270

219

222

188


629

860

(27)%


Copper South Australia

troy koz


277

256

261

221

248


730

833

(12)%



307

270

219

222

188


629

860

(27)%


Total

troy koz


2,833

2,848

2,843

3,295

2,868


9,006

8,719

3%



2,830

2,679

2,746

3,160

2,619


16,421

16,070

2%

Uranium

Payable metal in concentrate

t


833

813

825

986

863


2,674

2,593

3%



683

1,275

481

895

394


1,770

2,082

(15)%


Copper South Australia

t


833

813

825

986

863


2,674

2,593

3%



683

1,275

481

895

394


1,770

2,082

(15)%

Molybdenum

Payable metal in concentrate

t


636

666

612

481

824


1,917

1,496

28%



789

594

564

468

677


1,709

1,578

8%


Pampa Norte

t


407

333

329

145

203


677

657

3%



492

367

303

162

219


684

733

(7)%


Antamina

t


229

333

283

336

621


1,240

839

48%



297

227

261

306

458


1,025

845

21%

Iron ore

Western Australia Iron Ore (WAIO)

kt


58,725

64,074

62,004

64,460

60,299


186,763

188,457

(1)%



59,204

62,926

64,180

62,606

61,868


188,654

185,957

1%


Samarco

kt


1,048

1,221

1,231

1,302

1,174


3,707

3,291

13%



1,111

1,160

1,136

1,329

1,258


3,723

3,354

11%


Total

kt


59,773

65,295

63,235

65,762

61,473


190,470

191,748

(1)%



60,315

64,086

65,316

63,935

63,126


192,377

189,311

2%

Metallurgical coal¹

BHP Mitsubishi Alliance (BMA)

kt


6,929

8,477

5,601

5,717

6,035


17,353

20,543

(16)%



6,186

8,876

5,325

5,706

6,359


17,390

19,695

(12)%

Energy coal

NSW Energy Coal (NSWEC)

kt


3,934

4,765

3,613

3,855

4,149


11,617

9,407

23%



3,667

4,894

3,307

4,250

3,932


11,489

8,970

28%

Nickel

Western Australia Nickel

kt


19.6

22.0

20.2

19.6

18.8


58.6

58.0

1%



19.6

23.4

18.9

20.0

18.8


57.7

58.7

(2)%

Cobalt

Western Australia Nickel

t


175

246

192

182

179


553

506

9%



175

246

192

110

179


481

506

(5)%

1 Includes BMA thermal coal sales.























 

6

BHP | Operational review for the nine months ended 31 March 2024

 





Production



Sales

 





Quarter ended


Year to date



Quarter ended


Year to date

 





Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var



Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var

 





2023

2023

2023

2023

2024


2024

2023

%



2023

2023

2023

2023

2024


2024

2023

%

 
























Production and sales























By asset
























Copper
























Metals production is payable metal unless otherwise noted.























Escondida, Chile¹


BHP interest 57.5%





















Material mined

kt


106,170

95,451

87,462

95,168

103,872


286,502

318,405

(10)%







Concentrator throughput

kt


33,309

30,750

33,332

34,752

31,653


99,737

100,114

0%





Average copper grade - concentrator

%


0.78%

0.93%

0.85%

0.78%

0.92%


0.85%

0.79%

8%





Production ex mill

kt


210.0

228.9

225.7

217.6

238.6


681.9

637.4

7%





Payable copper

kt


200.8

220.5

221.3

207.7

239.2


668.2

612.2

9%



197.3

220.3

209.5

211.7

204.0


625.2

610.0

2%


Copper cathode (EW)

kt


50.8

72.5

52.0

46.9

49.0


147.9

150.1

(1)%



43.8

78.0

49.2

52.2

44.3


145.7

143.2

2%


 Oxide leach

kt


14.7

29.3

17.5

17.0

14.4


48.9

47.5

3%







 Sulphide leach

kt


36.1

43.2

34.5

29.9

34.6


99.0

102.6

(4)%





Total copper

kt


251.6

293.0

273.3

254.6

288.2


816.1

762.3

7%



241.1

298.3

258.7

263.9

248.3


770.9

753.2

2%


Payable gold concentrate

troy oz


48,954

53,503

48,063

48,633

38,955


135,651

135,592

0%



48,954

53,503

48,063

48,633

38,955


135,651

135,592

0%


Payable silver concentrate

troy koz


1,346

1,008

1,168

1,401

1,328


3,897

4,066

(4)%



1,346

1,008

1,168

1,401

1,328


3,897

4,066

(4)%

1 Shown on a 100% basis.















































Pampa Norte, Chile


BHP interest 100%





















Copper

Payable metal in concentrate

kt


32.0

32.2

38.8

32.6

39.5


110.9

93.1

19%



38.7

38.6

31.3

34.9

26.9


93.1

86.7

7%


Cathode

kt


41.0

36.3

39.5

27.2

22.1


88.8

127.2

(30)%



36.0

42.4

36.6

31.1

22.1


89.8

124.0

(28)%


Total copper

kt


73.0

68.5

78.3

59.8

61.6


199.7

220.3

(9)%



74.7

81.0

67.9

66.0

49.0


182.9

210.7

(13)%

Gold


troy oz


8,152

9,263

3,931

2,854

1,819


8,604

17,548

(51)%



8,152

9,263

3,931

2,854

1,819


8,604

17,548

(51)%

Silver


troy koz


409

412

356

388

327


1,071

906

18%



409

412

356

388

327


1,071

906

18%

Molybdenum


t


407

333

329

145

203


677

657

3%



492

367

303

162

219


684

733

(7)%

























Cerro Colorado¹

























Material mined

kt


172

145

-

-

-


-

3,934

(100)%







Ore stacked

kt


3,567

3,928

154

-

-


154

12,059

(99)%





Average copper grade - stacked

%


0.57%

0.53%

0.58%

-

-


0.58%

0.56%

4%





Copper cathode (EW)

kt


12.0

12.2

9.5

1.6

-


11.1

37.0

(70)%



10.9

14.1

8.8

3.7

-


12.5

36.4

(66)%

























Spence

























Material mined

kt


24,858

25,622

27,654

25,973

15,968


69,595

78,794

(12)%







Ore stacked

kt


4,947

5,625

5,113

4,744

6,008


15,865

15,679

1%





Average copper grade - stacked

%


0.60%

0.58%

0.60%

0.59%

0.56%


0.58%

0.66%

(12)%





Concentrator throughput

kt


7,290

6,927

8,473

7,151

8,055


23,679

21,325

11%





Average copper grade - concentrator

%


0.61%

0.61%

0.64%

0.65%

0.64%


0.64%

0.61%

5%





Payable copper

kt


32.0

32.2

38.8

32.6

39.5


110.9

93.1

19%



38.7

38.6

31.3

34.9

26.9


93.1

86.7

7%


Copper cathode (EW)

kt


29.0

24.1

30.0

25.6

22.1


77.7

90.2

(14)%



25.1

28.3

27.8

27.4

22.1


77.3

87.6

(12)%


Total copper

kt


61.0

56.3

68.8

58.2

61.6


188.6

183.3

3%



63.8

66.9

59.1

62.3

49.0


170.4

174.3

(2)%


Payable gold concentrate

troy oz


8,152

9,263

3,931

2,854

1,819


8,604

17,548

(51)%



8,152

9,263

3,931

2,854

1,819


8,604

17,548

(51)%


Payable silver concentrate

troy koz


409

412

356

388

327


1,071

906

18%



409

412

356

388

327


1,071

906

18%


Payable molybdenum

t


407

333

329

145

203


677

657

3%



492

367

303

162

219


684

733

(7)%

1 Cerro Colorado entered temporary care and maintenance in December 2023.




















































 

7

BHP | Operational review for the nine months ended 31 March 2024

 





Production



Sales





Quarter ended


Year to date



Quarter ended


Year to date





Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var



Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var





2023

2023

2023

2023

2024


2024

2023

%



2023

2023

2023

2023

2024


2024

2023

%

Copper (continued)
























Copper South Australia, Australia

BHP interest 100%





















Copper

Payable metal in concentrate

kt



19.9

26.2

30.6

27.4


84.2






27.6

22.2

31.6

17.1


70.9




Cathode

kt


51.7

56.7

48.2

54.6

55.7


158.5

155.8

2%



50.5

59.5

46.1

54.3

53.7


154.1

153.2

1%


Total copper

kt


51.7

76.6

74.4

85.2

83.1


242.7

155.8

56%



50.5

87.1

68.3

85.9

70.8


225.0

153.2

47%


Payable metal in concentrate transfer to Olympic Dam¹

kt



-

(2.7)

(3.2)

(4.1)


(10.0)







Net copper

kt


51.7

76.6

71.7

82.0

79.0


232.7

155.8

49%



Gold

Payable metal in concentrate

troy oz



32,736

41,424

48,051

43,209


132,684






44,098

34,176

47,482

28,136


109,794




Refined gold

troy oz


49,086

46,479

53,028

55,828

49,128


157,984

139,550

13%



47,300

49,182

54,036

55,349

41,710


151,095

138,742

9%


Total gold

troy oz


49,086

79,215

94,452

103,879

92,337


290,668

139,550

108%



47,300

93,280

88,212

102,831

69,846


260,889

138,742

88%


Payable metal in concentrate transfer to Olympic Dam¹

troy oz



-

(5,196)

(6,000)

(6,782)


(17,978)







Net gold

troy oz


49,086

79,215

89,256

97,879

85,555


272,690

139,550

95%



Silver

Payable metal in concentrate

troy koz



201

271

323

282


876






242

258

364

189


811




Refined silver

troy koz


277

256

261

221

248


730

833

(12)%



307

270

219

222

188


629

860

(27)%


Total silver

troy koz


277

457

532

544

530


1,606

833

93%



307

512

477

586

377


1,440

860

67%


Payable metal in concentrate transfer to Olympic Dam¹

troy koz



-

(11)

(13)

(30)


(54)







Net silver

troy koz


277

457

521

531

500


1,552

833

86%



Uranium


t


833

813

825

986

863


2,674

2,593

3%



683

1,275

481

895

394


1,770

2,082

(15)%

























Olympic Dam

























Material mined

kt


2,317

2,356

2,655

2,537

2,747


7,939

6,993

14%







Ore milled

kt


2,433

2,755

2,596

2,634

2,511


7,741

7,690

1%





Average copper grade

%


1.95%

2.00%

1.96%

2.12%

1.96%


2.01%

2.06%

(2)%





Average uranium grade

kg/t


0.59

0.55

0.56

0.62

0.57


0.58

0.58

0%





Copper cathode (ER and EW)

kt


51.7

56.7

48.2

54.6

55.7


158.5

155.8

2%



50.5

59.5

46.1

54.3

53.7


154.1

153.2

1%


Refined gold

troy oz


49,086

46,479

53,028

55,828

49,128


157,984

139,550

13%



47,300

49,182

54,036

55,349

41,710


151,095

138,742

9%


Refined silver

troy koz


277

256

261

221

248


730

833

(12)%



307

270

219

222

188


629

860

(27)%


Payable uranium

t


833

813

825

986

863


2,674

2,593

3%



683

1,275

481

895

394


1,770

2,082

(15)%

























Prominent Hill²

























Material mined

kt



661

1,110

1,125

1,094


3,329









Ore milled

kt



1,228

1,652

1,800

1,473


4,925







Average copper grade

%



0.77%

0.85%

0.83%

0.86%


0.85%







Production ex mill

kt



16.3

23.8

23.6

22.3


69.7







Payable copper

kt



8.2

12.1

12.9

10.9


35.9






15.7

8.4

10.6

6.5


25.5




Payable gold concentrate

troy oz



17,432

22,031

25,779

21,019


68,829






28,856

15,524

20,045

14,644


50,213




Payable silver concentrate

troy koz



44

63

65

62


190






87

53

59

38


150



























Carrapateena²

























Material mined

kt



880

1,201

1,310

1,232


3,743









Ore milled

kt



856

1,230

1,307

1,226


3,763







Average copper grade

%



1.52%

1.29%

1.52%

1.52%


1.44%







Production ex mill

kt



30.1

37.6

49.2

45.9


132.7







Payable copper

kt



11.7

14.1

17.7

16.5


48.3






11.9

13.8

21.0

10.6


45.4




Payable gold concentrate

troy oz



15,304

19,393

22,272

22,190


63,855






15,242

18,652

27,437

13,492


59,581




Payable silver concentrate

troy koz



157

208

258

220


686






155

205

305

151


661



1 Excludes prior year production previously reported and transferred during the period.























2 Production and sales included from 1 May 2023, following the acquisition of OZL on 2 May 2023.
















































 

8

 



 

BHP | Operational review for the nine months ended 31 March 2024

 





Production



Sales





Quarter ended


Year to date



Quarter ended


Year to date





Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var



Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var





2023

2023

2023

2023

2024


2024

2023

%



2023

2023

2023

2023

2024


2024

2023

%

Copper (continued)
























 

Antamina, Peru


BHP interest 33.75%




















 


Material mined

kt


57,939

62,894

63,310

61,539

56,233


181,082

190,554

(5)%






 


Concentrator throughput

kt


12,349

13,897

14,246

14,824

14,312


43,382

40,479

7%




 


Average head grade - copper

%


0.88%

0.88%

0.83%

0.90%

0.83%


0.85%

0.89%

(4)%




 


Average head grade - zinc

%


1.06%

1.25%

1.17%

1.03%

0.68%


0.96%

1.05%

(9)%




 


Payable copper

kt


29.6

36.5

32.5

39.2

33.9


105.6

101.9

4%



32.4

34.5

32.8

38.3

31.3


102.4

104.7

(2)%

 


Payable zinc

t


23,612

38,822

35,669

33,475

18,409


87,553

86,226

2%



25,851

37,629

33,912

37,092

17,559


88,563

88,798

0%

 


Payable silver

troy koz


801

971

798

975

713


2,486

2,914

(15)%



768

747

745

785

587


2,117

2,633

(20)%

 


Payable lead

t


169

146

96

105

-


201

511

(61)%



181

143

154

91

108


353

402

(12)%

 


Payable molybdenum

t


229

333

283

336

621


1,240

839

48%



297

227

261

306

458


1,025

845

21%

 

























 

Carajás, Brazil¹


BHP interest 100%




















 


Material mined

kt



103

74

115

163


352








 


Ore milled

kt



100

70

119

163


352






 


Average copper grade

%



1.71%

1.91%

1.69%

1.93%


1.84%






 


Production ex mill

kt



6.6

5.2

7.6

12.9


25.7






 


Payable copper

kt



1.6

1.2

1.8

3.2


6.2






2.1

2.2

-

2.3


4.5



 


Payable gold concentrate

troy oz



1,153

802

1,256

2,083


4,141






1,688

1,533

-

1,583


3,116



 

1 Production and sales included from 1 May 2023, following the acquisition of OZL on 2 May 2023.






















 

























 

























 

Iron ore
























 

Iron ore production and sales are reported on a wet tonnes basis.























 

WAIO, Australia


BHP interest 85%




















 


Newman Joint Venture

kt


11,925

14,795

13,234

15,468

15,032


43,734

42,150

4%






 


Area C Joint Venture

kt


25,284

28,818

25,804

26,074

24,920


76,798

78,557

(2)%




 


Yandi Joint Venture

kt


4,941

5,359

3,150

4,978

4,434


12,562

16,051

(22)%




 


Jimblebar¹

kt


16,575

15,102

19,816

17,940

15,913


53,669

51,699

4%




 


Total

kt


58,725

64,074

62,004

64,460

60,299


186,763

188,457

(1)%




 


Total (100%)

kt


66,163

72,717

69,448

72,670

68,131


210,249

212,590

(1)%




 


Lump

kt







18,021

20,022

20,969

19,176

19,175


59,320

57,957

2%

 


Fines

kt





41,183

42,904

43,211

43,430

42,693


129,334

128,000

1%

 


Total

kt





59,204

62,926

64,180

62,606

61,868


188,654

185,957

1%

 


Total (100%)

kt





66,580

71,172

71,748

70,340

69,775


211,863

209,544

1%

 

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























 

























 

Samarco, Brazil


BHP interest 50%




















 


Total

kt


1,048

1,221

1,231

1,302

1,174


3,707

3,291

13%



1,111

1,160

1,136

1,329

1,258


3,723

3,354

11%

 

























 

























 

Coal
























 

Coal production is reported on the basis of saleable product.























 

BMA, Australia


BHP interest 50%




















 


Blackwater

kt


1,107

1,505

1,295

1,182

1,070


3,547

3,550

0%






 


Goonyella

kt


2,185

2,348

827

1,736

1,824


4,387

5,962

(26)%




 


Peak Downs

kt


1,251

1,424

1,121

846

1,012


2,979

4,056

(27)%




 


Saraji

kt


1,007

1,326

1,010

701

759


2,470

3,270

(24)%




 


Daunia

kt


607

617

545

431

524


1,500

1,372

9%




 


Caval Ridge

kt


772

1,257

803

821

846


2,470

2,333

6%




 


Total¹

kt


6,929

8,477

5,601

5,717

6,035


17,353

20,543

(16)%




 


Total  (100%)

kt


13,858

16,954

11,202

11,434

12,070


34,706

41,086

(16)%




 


Coking coal

kt







5,372

7,448

4,497

4,756

5,410


14,663

16,859

(13)%

 


Weak coking coal

kt





710

1,064

529

752

927


2,208

2,037

8%

 


Thermal coal

kt





104

364

299

198

22


519

799

(35)%

 


Total

kt





6,186

8,876

5,325

5,706

6,359


17,390

19,695

(12)%

 


Total (100%)

kt





12,372

17,752

10,650

11,412

12,718


34,780

39,390

(12)%

 

1 Production figures include some thermal coal.























 




























9

 

BHP | Operational review for the nine months ended 31 March 2024

 





Production



Sales





Quarter ended


Year to date



Quarter ended


Year to date





Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var



Mar

Jun

Sep

Dec

Mar


Mar

Mar

Var





2023

2023

2023

2023

2024


2024

2023

%



2023

2023

2023

2023

2024


2024

2023

%























NSWEC, Australia


BHP interest 100%





















Export

kt







3,667

4,693

3,087

3,942

3,558


10,587

8,970

18%


Domestic¹

kt






201

220

308

374


902




Total

kt


3,934

4,765

3,613

3,855

4,149


11,617

9,407

23%



3,667

4,894

3,307

4,250

3,932


11,489

8,970

28%

1 Domestic sales are made under the NSW Government Coal Market Price Emergency (Directions for Coal Mines) Notice 2023.











































Other
























Nickel production is reported on the basis of saleable product.























Western Australia Nickel, Australia

BHP interest 100%




















Mt Keith

Nickel concentrate

kt


38.8

44.5

42.7

43.8

32.4


118.9

121.0

(2)%







Average nickel grade

%


16.5

16.2

16.7

16.8

15.2


16.3

16.3

0%




Leinster

Nickel concentrate

kt


68.4

71.1

66.0

63.4

60.3


189.7

183.1

4%





Average nickel grade

%


8.6

8.5

8.1

8.0

7.8


8.0

9.3

(14)%





Refined nickel¹

kt


13.2

13.1

13.8

12.6

8.8


35.2

41.5

(15)%



13.0

13.1

13.2

13.0

8.6


34.8

41.3

(16)%


Nickel sulphate²

kt


0.9

0.7

0.9

0.7

1.0


2.6

2.5

4%



0.9

0.8

0.8

0.7

0.8


2.3

2.2

5%


Intermediates and nickel by-products³

kt


5.5

8.2

5.5

6.3

9.0


20.8

14.0

49%



5.7

9.5

4.9

6.3

9.4


20.6

15.2

36%


Total nickel

kt


19.6

22.0

20.2

19.6

18.8


58.6

58.0

1%



19.6

23.4

18.9

20.0

18.8


57.7

58.7

(2)%


Cobalt by-products

t


175

246

192

182

179


553

506

9%



175

246

192

110

179


481

506

(5)%

1 High quality refined nickel metal, including briquettes and powder.























2 Nickel sulphate crystals produced from nickel powder.























3 Nickel contained in matte and by-product streams.


















































 

10

BHP | Operational review for the nine months ended 31 March 2024

 

Variance analysis relates to the relative performance of BHP and/or its operations during the nine months ended March 2024 compared with the nine months ended March 2023, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100% 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.

The following abbreviations may have been used throughout this report: billion tonnes (Bt); cost and freight (CFR); cost, insurance and freight (CIF), carbon dioxide equivalent (CO2-e), dry metric tonne unit (dmtu); free on board (FOB); giga litres (GL); greenhouse gas (GHG); grams per cubic centimeter (g/cm3), grams per tonne (g/t); high-potential injury (HPI); kilograms per tonne (kg/t); kilometre (km); million ounces per annum (Mozpa); metres (m), million pounds (Mlb); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); OZ Minerals Limited (OZL); part per million (ppm), pounds (lb); thousand ounces (koz); thousand ounces per annum (kozpa); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); total recordable injury frequency (TRIF); wet metric tonnes (wmt); and year to date (YTD).

In this release, the terms 'BHP', the 'Group', 'BHP Group', 'we', 'us', 'our' and 'ourselves' are used to refer to BHP Group Limited and, except where the context otherwise requires, our subsidiaries. Refer to note 30 'Subsidiaries' of the Financial Statements in BHP's 30 June 2023 Annual Report for a list of our significant subsidiaries. Those terms do not include non-operated assets. 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. Our non-operated assets include Antamina and Samarco. BHP Group cautions against undue reliance on any forward-looking statement or guidance in this release. These forward-looking statements are based on information available as at the date of this release and are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this release.

 

 


 

Further information on BHP can be found at bhp.com

 

Authorised for lodgement by:

Stefanie Wilkinson

Group Company Secretary

Media Relations

 

Email: media.relations@bhp.com


Investor Relations

 

Email: investor.relations@bhp.com




Australia and Asia

 

Gabrielle Notley

Tel: +61 3 9609 3830  Mobile: +61 411 071 715

 

Europe, Middle East and Africa

 

Neil Burrows

Tel: +44 20 7802 7484  Mobile: +44 7786 661 683

 

Americas

 

Renata Fernandez

Mobile: +56 9 8229 5357


Australia and Asia

 

John-Paul Santamaria

Mobile: +61 499 006 018

 

Europe, Middle East and Africa

 

James Bell

Tel: +44 20 7802 7144  Mobile: +44 7961 636 432

 

Americas

 

Monica Nettleton

Mobile: +1 416 518 6293

BHP Group Limited ABN 49 004 028 077

LEI WZE1WSENV6JSZFK0JC28

Registered in Australia

Registered Office: Level 18, 171 Collins Street

Melbourne Victoria 3000 Australia

Tel +61 1300 55 4757 Fax +61 3 9609 3015






BHP Group is headquartered in Australia

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11

 

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