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BHP Billiton PLC (BLT)

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Thursday 18 January, 2018

BHP Billiton PLC

Operational Review Half Year Ended 31 Dec 2017

RNS Number : 2002C
BHP Billiton PLC
17 January 2018
 

 

Release Time

IMMEDIATE

Date

18 January 2018

Release Number

01/18

 

BHP OPERATIONAL REVIEW
FOR THE HALF YEAR ENDED 31 DECEMBER 2017

 

·      Full year production and unit cost guidance(1) maintained for Petroleum, Copper, Iron Ore and Energy Coal. At Western Australia Iron Ore (WAIO), a record annualised production rate of 284 Mt (100 per cent basis) was achieved for the December 2017 quarter.

·      Production guidance for Metallurgical Coal reduced to between 41 and 43 Mt as a result of challenging roof conditions at Broadmeadow, which are expected to continue through the March 2018 quarter, and geotechnical issues triggered by wet weather impacts at Blackwater. Unit cost guidance is also expected to be negatively impacted and is currently under review.

·      We continue to release latent capacity across our portfolio, with the Los Colorados Extension project successfully ramped up during the December 2017 quarter.

·      In Onshore US, our operated rig count remained at nine during the December 2017 quarter but is expected to fall as we tailor plans to maximise value in the exit process. We continue to progress a number of alternatives to divest our Onshore US assets for value.

·      All major projects under development are tracking to plan.

·      Underlying EBIT(2) in the December 2017 half year is expected to include impairment charges, predominately related to conveyors at Escondida, in a range of US$250 million to US$350 million.

 

Production

 

Dec H17

 

vs Dec H16

 


Petroleum (MMboe)

99

(7%)

Lower volumes reflect the impact of Hurricane Harvey and Hurricane Nate on US petroleum assets and natural field decline.

Copper (kt)

833

17%

Increased volumes at Escondida supported by the ramp-up of the Los Colorados Extension project.

Iron ore(3) (Mt)

117

0%

Record production at Jimblebar and Mining Area C offset by planned maintenance and lower opening stockpile levels following the Mt Whaleback fire in June 2017.

Metallurgical coal(3) (Mt)

20

(4%)

Record production at four Queensland Coal mines offset by the lower volumes at Broadmeadow (roof conditions) and Blackwater (geotechnical issues).

Energy coal(3) (Mt)

14

4%

Strong performance at New South Wales Energy Coal offset by the impacts of unfavourable wet weather at Cerrejón.

 

1

Summary

Operational performance

Production for the December 2017 half year and guidance for the 2018 financial year are summarised in the table below.

 

Production

 

 

Dec H17

 

 

Dec Q17

 

 

Dec H17
vs
Dec H16

 

 

Dec Q17
vs
Dec Q16

 

 

Dec Q17
vs
Sep Q17

 

 

Previous
FY18
guidance

 

 

Current
FY18
guidance

 

 

Petroleum (MMboe)

99

48

(7%)

(6%)

(4%)

180 -190

180 -190

Onshore US (MMboe)

35

18

(13%)

(10%)

1%

61 - 67

61 - 67

Conventional (MMboe)

64

31

(3%)

(3%)

(6%)

119 - 123

119 - 123

Copper (kt)

833

429

17%

20%

6%

1,655 - 1,790

1,655 - 1,790

Escondida (kt)

583

315

29%

34%

17%

1,130 - 1,230

1,130 - 1,230

Other copper(i) (kt)

250

114

(4%)

(7%)

(16%)

525 - 560

525 - 560

Iron ore(ii) (Mt)

117

62

0%

3%

11%

239 - 243

239 - 243

WAIO (100% basis) (Mt)

136

72

0%

3%

11%

275 - 280(iii)

275 - 280(iii)

Metallurgical coal(ii) (Mt)

20

10

(4%)

(9%)

(8%)

44 - 46

41 - 43

Energy coal(ii) (Mt)

14

7

4%

10%

8%

29 - 30

29 - 30

 

(i)     Other copper comprises Pampa Norte, Olympic Dam and Antamina.

(ii)    Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

(iii)   Subject to regulatory approvals to increase capacity above 270 Mt.

 

Major development projects

 

During the December 2017 half year, the BHP Board approved an investment of US$2.5 billion for the development of the Spence Growth Option.

BHP has four major projects under development in Petroleum, Copper and Potash, with a combined budget of US$7.5 billion over the life of the projects. All projects remain on time and on budget.

 

Corporate update

 

BHP expects Underlying EBIT in the December 2017 half year to include impairment charges (predominately related to conveyors at Escondida that are no longer planned to be utilised due to the successful completion of the Los Colorados Extension project) in a range of US$250 million to US$350 million.

 

2

Marketing update

Average realised prices(i)

 

Dec H17

 

Dec H16

 

Jun H17

 

FY17

 

Dec H17
vs
Dec H16

 

Dec H17
vs
Jun H17

 

Dec H17
vs
FY17

 

Oil (crude and condensate) (US$/bbl)

54

45

50

48

20%

8%

13%

Natural gas (US$/Mscf)(ii)

3.54

3.21

3.48

3.34

10%

2%

6%

US natural gas (US$/Mscf)

2.84

2.79

2.98

2.88

2%

(5%)

(1%)

LNG (US$/Mscf)

7.48

6.35

7.37

6.84

18%

1%

9%

Copper (US$/lb)

3.20

2.41

2.70

2.54

33%

19%

26%

Iron ore (US$/wmt, FOB)

57

55

62

58

4%

(8%)

(2%)

Hard coking coal (US$/t)

182

179

180

180

2%

1%

1%

Weak coking coal (US$/t)

121

122

121

121

(1%)

0%

0%

Thermal coal (US$/t)(iii)

87

74

75

75

18%

16%

16%

Nickel metal (US$/t)

11,083

10,581

9,799

10,184

5%

13%

9%

 

(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)   Export sales only. Includes thermal coal sales from metallurgical coal mines.

 

At 31 December 2017, the Group had 348 kt of outstanding copper sales that were revalued at a weighted average price of US$3.28 per pound. The final price of these sales will be determined over the remainder of the 2018 financial year. In addition, 254 kt of copper sales from the 2017 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase Underlying EBITDA(2) by US$246 million in the December 2017 half year.

 

 

 

3

Petroleum

Production


Dec H17

 

Dec Q17

 

Dec H17
vs
Dec H16

 

Dec Q17
vs
Dec Q16

 

Dec Q17
vs
Sep Q17

 

Crude oil, condensate and natural gas liquids (MMboe)

45

22

(8%)

(7%)

1%

Natural gas (bcf)

325

157

(6%)

(5%)

(7%)

Total petroleum production (MMboe)

99

48

(7%)

(6%)

(4%)

 

Petroleum - Total petroleum production for the December 2017 half year decreased by seven per cent to 99 MMboe. Guidance for the 2018 financial year remains unchanged at between 180 and 190 MMboe, comprising Conventional volumes between 119 and 123 MMboe and Onshore US volumes between 61 and 67 MMboe.

 

Production breakdown

 

Dec H17

 

vs Dec H16

 



Crude oil, condensate and natural gas liquids (MMboe)

Conventional

30

(6%)

Decrease due to the impact of Hurricane Harvey and Hurricane Nate in the Gulf of Mexico and natural field decline across the portfolio.

Onshore US

15

(12%)

Decrease due to the impact of Hurricane Harvey and natural field decline, which more than offset additional wells put online in the Black Hawk and Permian.

Total

45

(8%)


Natural gas (bcf)




Conventional

203

(1%)

Production broadly unchanged.

Onshore US

122

(14%)

Decrease due to the impact of Hurricane Harvey and natural field decline, partially offset by additional wells put online in the Eagle Ford, Permian and Haynesville.

Total

325

(6%)


 

Completion of the agreement with Chevron and ExxonMobil to withdraw from our 4.95 per cent interest in the Genesis deepwater asset in the Gulf of Mexico occurred in December 2017, with an effective date of 1 January 2017.

 

Projects

 

Project and
ownership

 

Capital expenditure (US$m)

 

Initial production target date

 

Capacity

 

Progress

 

North West Shelf Greater Western Flank-B
(Australia)
16.67% (non-operator)

314

CY19

To maintain LNG plant throughput from the North West Shelf operations.

On schedule and budget. The overall project is 66% complete.

Mad Dog Phase 2
(US Gulf of Mexico)
23.9% (non-operator)

2,154

CY22

New floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil per day.

On schedule and budget. The overall project is 10% complete.

Petroleum capital expenditure of approximately US$1.9 billion is now planned in the 2018 financial year, a reduction from our previous guidance of US$2.0 billion. Onshore US capital expenditure is expected to be lower at US$1.1 billion, reflecting development activity tailored to support value in the exit process and meet Hold by Production obligations. Conventional capital expenditure of US$0.8 billion remains unchanged, focused on high-return infill drilling opportunities in the Gulf of Mexico, a life extension project at North West Shelf and investment in the Mad Dog Phase 2 project.

 

 

4

Onshore US development activity

·    We have adjusted our Onshore US capital plans to optimise value for our planned exit.

·    In the Permian, sub-surface trials have confirmed first year production improvements associated with larger completions. We reduced our rig count from three to two (in December 2017 quarter) as we focused on meeting Hold by Production obligations and progressing sub-surface trials.

·    In the Eagle Ford, we increased our rig count from two to three in the December 2017 quarter to test the Austin Chalk horizon and trial larger completions in Hawkville. We anticipate a return to two rigs during the March 2018 quarter.

·    In the Haynesville, we recently incorporated larger completions and have been operating new wells with larger chokes, both of which have improved results. We will continue to implement these changes in future wells, but expect to lower our rig count during the second half of the 2018 financial year as rig contracts expire and we optimise future investments ahead of our planned exit.

·    In the Fayetteville, our plans remain unchanged at this time. We continue to assess the potential of the Moorefield horizon based on data from the new non-operated wells.

December 2017 half year


Liquids focused areas

 

Gas focused areas

 


(December 2016 half year)

 


Eagle Ford

 

Permian

 

Haynesville

 

Fayetteville

 

Total

 

Capital expenditure(i)

US$ billion

0.1 (0.1)

0.1 (0.1)

0.1 (0.0)

0.0 (0.0)

0.3 (0.3)

Rig allocation

At period end

3 (1)

2 (1)

4 (1)

0 (0)

9 (3)

Net wells drilled and completed(ii)

Period total

9 (43)

10 (15)

10 (0)

0 (2)

29 (60)

Net productive wells

At period end

931 (942)

136 (118)

405 (394)

1,043 (1,042)

2,515 (2,496)

 

(i)     Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.

(ii)    Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.

We continue to progress a number of alternatives to exit our Onshore US assets for value. We are preparing all appropriate documentation ahead of data rooms being opened to potential trade sale buyers by the end of the March 2018 quarter. In parallel, we continue to explore a potential exit via demerger or Initial Public Offering.

 

Petroleum exploration

Exploration and appraisal wells drilled during the December 2017 quarter are summarised below.

 

Well

 

Location

 

Target

 

BHP equity

 

Spud date

 

Water depth

 

Total well depth

 

Status

 

Scimitar

US Gulf of Mexico GC392

Oil

65%

1 October 2017

1,289 m

9,386 m

Drilling ahead

5

 

Copper

 

Production

 


Dec H17

 

Dec Q17

 

Dec H17
vs
Dec H16

 

Dec Q17
vs
Dec Q16

 

Dec Q17
vs
Sep Q17

 

Copper (kt)

833

429

17%

20%

6%

Zinc (t)

58,255

29,054

54%

30%

(1%)

Uranium oxide concentrate (t)

1,123

243

(43%)

(77%)

(72%)

Antamina copper production for the December 2017 half year increased by five per cent to 70 kt and zinc production increased 54 per cent to 58 kt due to higher head grades and mining progressing through a zinc-rich ore zone consistent with the mine plan. Guidance for the 2018 financial year remains unchanged, with copper production of approximately 125 kt and zinc production of approximately 100 kt.

 

 

 

 

 

 

 

 

 

 

6

Projects

 

Project and
ownership

 

Capital expenditure (US$m)

 

Initial production target date

 

Capacity

 

Progress

 

Spence Growth Option
(Chile)
100%

 2,460

FY21

New 95 ktpd concentrator is expected to increase Spence's 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.

On schedule and budget. The overall project is 4% complete.

 

Iron Ore

 

Production

 


Dec H17

 

Dec Q17

 

Dec H17
vs
Dec H16

 

Dec Q17
vs
Dec Q16

 

Dec Q17
vs
Sep Q17

 

Iron ore(i) (kt)

117,144

61,557

0%

3%

11%

 

(i)     Represents Western Australia Iron Ore (WAIO). Excludes production from Samarco.

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

 

Coal

Production

 


Dec H17

 

Dec Q17

 

Dec H17
vs
Dec H16

 

Dec Q17
vs
Dec Q16

 

Dec Q17
vs
Sep Q17

 

Metallurgical coal (kt)

20,252

9,685

(4%)

(9%)

(8%)

Energy coal (kt)

14,029

7,297

4%

10%

8%

 

 

 

7

Metallurgical coal - Metallurgical coal production for the December 2017 half year decreased by four per cent to 20 Mt. Guidance for the 2018 financial year has been reduced to between 41 and 43 Mt and reflects lower volumes now expected at Broadmeadow and Blackwater. As a result of the reduced Broadmeadow and Blackwater volumes and compensatory increased production from higher cost pits, unit cost guidance is also expected to be negatively impacted and is currently under review.

At Queensland Coal, production for the December 2017 half year was lower due to the impacts of ongoing challenging roof conditions at Broadmeadow and geotechnical issues brought on by wet weather at Blackwater. This was partially offset by record production at South Walker Creek, Saraji, Caval Ridge and Daunia, underpinned by improved truck and shovel performance, utilisation of latent dragline capacity at Caval Ridge and increased wash-plant feed rates.

New South Wales Energy Coal production increased by 10 per cent as it benefitted from improved stripping performance, higher truck utilisation and additional bypass coal. This was partially offset by a six per cent decline in Cerrejón production, which was impacted by wet weather conditions during the September 2017 quarter.

 

Other

 

Nickel production

 


Dec H17

 

Dec Q17

 

Dec H17
vs
Dec H16

 

Dec Q17
vs
Dec Q16

 

Dec Q17
vs
Sep Q17

 

Nickel (kt)

45.2

22.4

11%

1%

(2%)

Potash project

 

Project and
ownership

 

Investment
(US$m)

 

Scope

 

Progress

 

Jansen Potash
(Canada)
100%

2,600

Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.

The project is 75% complete and within the approved budget. Shaft excavation is progressing.

 

Minerals exploration

Minerals exploration expenditure for the December 2017 half year was US$86 million, of which US$55 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Peru, Canada, South Australia and the South-West United States.

Variance analysis relates to the relative performance of BHP and/or its operations during the December 2017 half year compared with the December 2016 half year, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis. Copper equivalent production based on 2017 financial year average realised prices.

 

 

8

The following footnotes apply to this Operational Review:

 

(1)   2018 financial year unit cost guidance is based on exchange rates of AUD/USD 0.75 and USD/CLP 663.

(2)   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.

(3)   Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

(4)   Adjusted effective tax rate comprises Total taxation (expense)/benefit excluding exceptional items and exchange rate movements included in taxation (expense)/benefit divided by Profit/(loss) before taxation and exceptional items.

(5)   The Preliminary Agreement outlines the process and timeline for negotiation of a settlement of the BRL 155 billion (approximately US$47 billion) and BRL 20 billion (approximately US$6 billion) Public Civil Claims relating to the dam failure.

 

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

 

  

9

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

 

Media Relations

Investor Relations

Email: [email protected]

Email: [email protected]

Australia and Asia

Australia and Asia

Ben Pratt

Tara Dines

Tel: +61 3 9609 3672  Mobile: +61 419 968 734

Tel: +61 3 9609 2222  Mobile: +61 499 249 005

United Kingdom and South Africa

United Kingdom and South Africa

Neil Burrows

Rob Clifford

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

Tel: +44 20 7802 4131  Mobile: +44 7788 308 844



North America

Americas



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10

 

Production summary



Quarter ended

 

Year to date

 


BHP
interest

 

Dec
2016

 

Mar
2017

 

Jun
 2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Petroleum (1)









Petroleum









Crude oil, condensate and NGL (Mboe)









Onshore US


8,143

9,439

8,501

7,079

7,423

14,502

16,431

Conventional


15,768

15,369

15,612

15,090

14,869

29,959

31,727



 

 

 

 

 

 

 

Total


23,911

24,808

24,113

22,169

22,292

44,461

48,158



 

 

 

 

 

 

 

Natural gas (bcf)









Onshore US


67.8

66.1

67.2

61.4

60.5

121.9

141.7

Conventional


97.1

88.4

99.5

107.3

96.1

203.4

204.9



 

 

 

 

 

 

 

Total


164.9

154.5

166.7

168.7

156.6

325.3

346.6



 

 

 

 

 

 

 












 

 

 

 

 

 

 

Total petroleum production (MMboe)


51.4

50.6

51.9

50.3

48.4

98.7

105.9



 

 

 

 

 

 

 

Copper (2)









Copper









Payable metal in concentrate (kt)









Escondida (3)

57.5%

162.6

67.6

162.4

196.3

238.5

434.8

309.6

Antamina

33.8%

32.0

29.2

38.5

35.9

33.8

69.7

66.1



 

 

 

 

 

 

 

Total


194.6

96.8

200.9

232.2

272.3

504.5

375.7



 

 

 

 

 

 

 

Cathode (kt)









Escondida (3)

57.5%

71.5

27.2

62.8

71.9

76.1

148.0

142.0

Pampa Norte (4)

100%

53.8

66.1

72.3

58.0

68.4

126.4

115.9

Olympic Dam

100%

37.2

36.8

51.4

42.0

12.2

54.2

78.1



 

 

 

 

 

 

 

Total


162.5

130.1

186.5

171.9

156.7

328.6

336.0



 

 

 

 

 

 

 












 

 

 

 

 

 

 

Total copper (kt)


357.1

226.9

387.4

404.1

429.0

833.1

711.7



 

 

 

 

 

 

 

Lead









Payable metal in concentrate (t)









Antamina

33.8%

1,220

1,308

1,799

1,415

1,009

2,424

2,366



 

 

 

 

 

 

 

Total


1,220

1,308

1,799

1,415

1,009

2,424

2,366



 

 

 

 

 

 

 

Zinc









Payable metal in concentrate (t)









Antamina

33.8%

22,406

20,653

29,076

29,201

29,054

58,255

37,773



 

 

 

 

 

 

 

Total


22,406

20,653

29,076

29,201

29,054

58,255

37,773



 

 

 

 

 

 

 

Gold









Payable metal in concentrate (troy oz)









Escondida (3)

57.5%

37,784

11,572

33,941

50,525

50,279

100,804

65,345

Olympic Dam (refined gold)

100%

29,651

21,941

28,188

13,101

15,969

29,070

54,017



 

 

 

 

 

 

 

Total


67,435

33,513

62,129

63,626

66,248

129,874

119,362



 

 

 

 

 

 

 

 

 

 



Quarter ended

 

Year to date

 


BHP
interest

 

Dec
2016

 

Mar
2017

 

Jun
 2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 










Silver









Payable metal in concentrate (troy koz)









Escondida (3)

57.5%

1,323

540

1,234

1,737

2,193

3,930

2,552

Antamina

33.8%

1,446

1,301

1,691

1,596

1,331

2,927

2,791

Olympic Dam (refined silver)

100%

188

174

243

131

135

266

351



 

 

 

 

 

 

 

Total


2,957

2,015

3,168

3,464

3,659

7,123

5,694



 

 

 

 

 

 

 

Uranium









Payable metal in concentrate (t)









Olympic Dam

100%

1,060

948

737

880

243

1,123

1,976



 

 

 

 

 

 

 

Total


1,060

948

737

880

243

1,123

1,976



 

 

 

 

 

 

 

Molybdenum









Payable metal in concentrate (t)









Antamina

33.8%

225

30

328

402

579

981

786



 

 

 

 

 

 

 

Total


225

30

328

402

579

981

786



 

 

 

 

 

 

 

 

12

Production summary



Quarter ended

 

Year to date

 


BHP
interest

 

Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Iron Ore









Iron Ore









Production (kt) (5)









Newman

85%

17,751

16,283

16,241

13,842

18,317

32,159

35,759

Area C Joint Venture

85%

12,179

11,165

13,016

13,099

13,575

26,674

24,563

Yandi Joint Venture

85%

17,555

14,656

17,415

14,559

16,348

30,907

33,284

Jimblebar (6)

85%

5,178

4,824

5,891

6,283

4,583

10,866

11,235

Wheelarra

85%

7,386

6,647

7,578

7,804

8,734

16,538

12,795

Samarco

50%

-

-

-

-

-

-

-



 

 

 

 

 

 

 

Total


60,049

53,575

60,141

55,587

61,557

117,144

117,636



 

 

 

 

 

 

 

Coal









Metallurgical coal









Production (kt) (7)









BMA

50%

8,684

7,996

6,394

8,296

7,394

15,690

17,068

BHP Mitsui Coal (8)

80%

1,929

2,138

2,100

2,271

2,291

4,562

4,074

Haju (9)

75%

27

-

-

-

-

-

129



 

 

 

 

 

 

 

Total


10,640

10,134

8,494

10,567

9,685

20,252

21,271



 

 

 

 

 

 

 

Energy coal









Production (kt)









USA

100%

-

-

-

-

-

-

451

Australia

100%

3,851

4,662

5,711

4,235

4,383

8,618

7,803

Colombia

33.3%

2,800

2,756

2,475

2,497

2,914

5,411

5,728



 

 

 

 

 

 

 

Total


6,651

7,418

8,186

6,732

7,297

14,029

13,982



 

 

 

 

 

 

 

Other









Nickel









Saleable production (kt)









Nickel West

100%

22.1

19.0

25.2

22.8

22.4

45.2

40.9



 

 

 

 

 

 

 

Total


22.1

19.0

25.2

22.8

22.4

45.2

40.9



 

 

 

 

 

 

 

 

(1)   LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.

(2)   Metal production is reported on the basis of payable metal.

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

(4)   Includes Cerro Colorado and Spence.

(5)   Iron ore production is reported on a wet tonnes basis.

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

(7)   Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

(8)   Shown on a 100% basis. BHP interest in saleable production is 80%.

(9)   Shown on a 100% basis. BHP interest in saleable production is 75%.

 

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

 

13

Production and sales report

 



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Petroleum (1)









Bass Strait









Crude oil and condensate

(Mboe)

1,770

1,355

1,552

1,815

1,513

3,328

3,692

NGL

(Mboe)

1,460

1,236

1,661

1,950

1,584

3,534

3,562

Natural gas

(bcf)

31.3

28.7

37.4

42.6

32.9

75.5

73.2



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

8.4

7.4

9.4

10.9

8.6

19.4

19.5



 

 

 

 

 

 

 

North West Shelf









Crude oil and condensate

(Mboe)

1,468

1,239

1,314

1,474

1,442

2,916

2,954

NGL

(Mboe)

263

200

209

227

200

427

555

Natural gas

(bcf)

36.9

32.2

32.5

36.2

36.2

72.4

75.6



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

7.9

6.8

6.9

7.7

7.7

15.4

16.1



 

 

 

 

 

 

 

Pyrenees









Crude oil and condensate

(Mboe)

1,726

1,509

1,606

1,510

1,210

2,720

3,402



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.7

1.5

1.6

1.5

1.2

2.7

3.4



 

 

 

 

 

 

 

Other Australia (2)









Crude oil and condensate

(Mboe)

8

8

9

9

8

17

18

Natural gas

(bcf)

17.1

15.2

16.3

16.1

13.3

29.4

34.6



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

2.9

2.5

2.7

2.7

2.2

4.9

5.8



 

 

 

 

 

 

 

Atlantis (3)









Crude oil and condensate

(Mboe)

3,263

3,881

3,637

3,022

3,377

6,399

6,317

NGL

(Mboe)

207

295

213

218

195

413

415

Natural gas

(bcf)

1.6

2.1

1.9

1.6

1.8

3.4

3.1



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

3.7

4.5

4.2

3.5

3.9

7.4

7.2



 

 

 

 

 

 

 

Mad Dog (3)









Crude oil and condensate

(Mboe)

1,170

1,185

1,167

1,020

1,231

2,251

2,120

NGL

(Mboe)

52

59

68

44

72

116

88

Natural gas

(bcf)

0.2

0.2

0.2

0.1

0.2

0.3

0.3



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.3

1.3

1.3

1.1

1.3

2.4

2.3



 

 

 

 

 

 

 

Shenzi (3)









Crude oil and condensate

(Mboe)

2,692

2,675

2,588

2,291

2,513

4,804

5,324

NGL

(Mboe)

131

161

179

141

184

325

225

Natural gas

(bcf)

0.5

0.5

0.6

0.4

0.5

0.9

1.0



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

2.9

2.9

2.9

2.5

2.8

5.3

5.7



 

 

 

 

 

 

 

Eagle Ford (4)









Crude oil and condensate

(Mboe)

4,008

5,451

4,278

3,457

3,720

7,177

7,879

NGL

(Mboe)

2,159

2,354

2,240

1,856

2,100

3,956

4,427

Natural gas

(bcf)

15.2

17.0

15.1

13.8

14.4

28.2

31.7



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

8.7

10.6

9.0

7.6

8.2

15.8

17.6



 

 

 

 

 

 

 

 

 

14



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 










Permian (4)









Crude oil and condensate

(Mboe)

1,378

1,202

1,336

1,179

1,142

2,321

2,793

NGL

(Mboe)

580

428

646

587

460

1,047

1,314

Natural gas

(bcf)

4.4

4.0

6.2

4.5

3.6

8.1

8.8



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

2.7

2.3

3.0

2.5

2.2

4.7

5.6



 

 

 

 

 

 

 

Haynesville (4)









Crude oil and condensate

(Mboe)

3

1

1

-

1

1

3

NGL

(Mboe)

15

3

-

-

-

-

15

Natural gas

(bcf)

24.0

22.0

21.4

21.5

22.0

43.5

52.2



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

4.0

3.7

3.6

3.6

3.7

7.3

8.7



 

 

 

 

 

 

 

Fayetteville (4)









Natural gas

(bcf)

24.2

23.1

24.5

21.6

20.5

42.1

49.0



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

4.0

3.9

4.1

3.6

3.4

7.0

8.2



 

 

 

 

 

 

 

 

15

Production and sales report



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Petroleum (1) (continued)









Trinidad/Tobago









Crude oil and condensate

(Mboe)

156

127

139

118

135

253

296

Natural gas

(bcf)

8.4

8.4

9.4

9.7

10.5

20.2

14.8



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.6

1.5

1.7

1.7

1.9

3.6

2.8



 

 

 

 

 

 

 

Other Americas (3) (5)









Crude oil and condensate

(Mboe)

269

257

238

229

207

436

544

NGL

(Mboe)

5

6

10

5

3

8

6

Natural gas

(bcf)

0.1

0.1

0.1

0.1

0.1

0.2

0.2



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

0.3

0.3

0.3

0.3

0.2

0.5

0.6



 

 

 

 

 

 

 

UK









Crude oil and condensate

(Mboe)

63

72

64

40

22

62

132

NGL

(Mboe)

49

32

16

39

13

52

71

Natural gas

(bcf)

1.0

1.0

1.1

0.5

0.6

1.1

2.1



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

0.3

0.3

0.3

0.2

0.1

0.3

0.6



 

 

 

 

 

 

 

Algeria









Crude oil and condensate

(Mboe)

1,016

1,072

942

938

960

1,898

2,006



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.0

1.1

0.9

0.9

1.0

1.9

2.0



 

 

 

 

 

 

 










BHP Petroleum









Crude oil and condensate









Onshore US

(Mboe)

5,389

6,654

5,615

4,636

4,863

9,499

10,675

Conventional

(Mboe)

13,601

13,380

13,256

12,466

12,618

25,084

26,805



 

 

 

 

 

 

 

Total

(Mboe)

18,990

20,034

18,871

17,102

17,481

34,583

37,480



 

 

 

 

 

 

 

NGL









Onshore US

(Mboe)

2,754

2,785

2,886

2,443

2,560

5,003

5,756

Conventional

(Mboe)

2,167

1,989

2,356

2,624

2,251

4,875

4,922



 

 

 

 

 

 

 

Total

(Mboe)

4,921

4,774

5,242

5,067

4,811

9,878

10,678



 

 

 

 

 

 

 

Natural gas









Onshore US

(bcf)

67.8

66.1

67.2

61.4

60.5

121.9

141.7

Conventional

(bcf)

97.1

88.4

99.5

107.3

96.1

203.4

204.9



 

 

 

 

 

 

 

Total

(bcf)

164.9

154.5

166.7

168.7

156.6

325.3

346.6



 

 

 

 

 

 

 

Total petroleum products









Onshore US

(Mboe)

19,443

20,456

19,701

17,312

17,506

34,819

40,048

Conventional

(Mboe)

31,951

30,102

32,195

32,973

30,886

63,859

65,877



 

 

 

 

 

 

 

Total

(Mboe)

51,394

50,558

51,896

50,286

48,392

98,678

105,925



 

 

 

 

 

 

 

 

(1)   Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.

(2)   Other Australia includes Minerva and Macedon.

(3)   Gulf of Mexico volumes are net of royalties.

(4)   Onshore US volumes are net of mineral holder royalties.

(5)   Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

 

 

16

Production and sales report



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Copper









Metals production is payable metal unless otherwise stated.












Escondida, Chile (1)









Material mined

(kt)

90,863

26,045

93,389

104,867

101,371

206,238

197,367

Sulphide ore milled

(kt)

19,866

8,054

18,777

24,080

30,260

54,340

40,653

Average copper grade

(%)

1.02%

1.01%

1.07%

1.06%

0.98%

1.02%

0.94%

Production ex mill

(kt)

168.6

68.7

167.0

204.2

245.7

449.9

321.8










Production









Payable copper

(kt)

162.6

67.6

162.4

196.3

238.5

434.8

309.6

Copper cathode (EW)

(kt)

71.5

27.2

62.8

71.9

76.1

148.0

142.0

- Oxide leach

(kt)

24.4

8.9

20.3

22.4

27.4

49.8

51.2

- Sulphide leach

(kt)

47.1

18.3

42.5

49.5

48.7

98.2

90.8



 

 

 

 

 

 

 

Total copper

(kt)

234.1

94.8

225.2

268.2

314.6

582.8

451.6



 

 

 

 

 

 

 










Payable gold concentrate

(troy oz)

37,784

11,572

33,941

50,525

50,279

100,804

65,345

Payable silver concentrate

(troy koz)

1,323

540

1,234

1,737

2,193

3,930

2,552










Sales









Payable copper

(kt)

172.7

63.7

163.3

195.1

236.7

431.8

307.6

Copper cathode (EW)

(kt)

71.8

39.4

56.0

61.6

84.1

145.7

137.4

Payable gold concentrate

(troy oz)

37,784

11,572

33,941

50,525

50,278

100,803

65,345

Payable silver concentrate

(troy koz)

1,323

540

1,234

1,737

2,193

3,930

2,552

 

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

 

Pampa Norte, Chile









Cerro Colorado









Material mined

(kt)

14,286

15,178

15,760

21,381

20,191

41,572

27,297

Ore milled

(kt)

3,342

4,179

4,411

3,951

4,611

8,562

6,583

Average copper grade

(%)

0.65%

0.57%

0.53%

0.62%

0.59%

0.60%

0.66%










Production









Copper cathode (EW)

(kt)

12.1

16.7

18.8

13.3

17.4

30.7

29.2










Sales









Copper cathode (EW)

(kt)

13.7

15.6

19.8

12.3

17.7

30.0

30.1










Spence









Material mined

(kt)

22,635

22,939

24,230

22,314

23,457

45,771

46,273

Ore milled

(kt)

5,187

5,225

4,968

5,375

4,919

10,294

9,900

Average copper grade

(%)

1.19%

1.09%

1.13%

1.21%

0.95%

1.09%

1.18%










Production









Copper cathode (EW)

(kt)

41.7

49.4

53.5

44.7

51.0

95.7

86.7










Sales









Copper cathode (EW)

(kt)

41.5

49.0

55.7

43.0

52.2

95.2

82.7

 

17

Production and sales report



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Copper (continued)









Metals production is payable metal unless otherwise stated.






Antamina, Peru









Material mined (100%)

(kt)

61,355

55,771

62,254

59,216

59,125

118,341

126,466

Sulphide ore milled (100%)

(kt)

13,399

11,955

13,229

12,822

13,098

25,920

26,921

Average head grades









- Copper

(%)

0.84%

0.88%

1.00%

0.94%

0.89%

0.91%

0.84%

- Zinc

(%)

0.83%

0.84%

0.95%

0.99%

0.93%

0.96%

0.71%

Production









Payable copper

(kt)

32.0

29.2

38.5

35.9

33.8

69.7

66.1

Payable zinc

(t)

22,406

20,653

29,076

29,201

29,054

58,255

37,773

Payable silver

(troy koz)

1,446

1,301

1,691

1,596

1,331

2,927

2,791

Payable lead

(t)

1,220

1,308

1,799

1,415

1,009

2,424

2,366

Payable molybdenum

(t)

225

30

328

402

579

981

786

Sales









Payable copper

(kt)

33.0

30.2

36.9

31.9

37.0

68.9

65.8

Payable zinc

(t)

22,334

23,669

27,936

25,224

30,340

55,564

38,377

Payable silver

(troy koz)

1,388

1,304

1,513

1,475

1,470

2,945

2,665

Payable lead

(t)

1,100

1,475

1,493

1,624

972

2,596

1,867

Payable molybdenum

(t)

476

-

-

168

693

861

1,124










Olympic Dam, Australia









Material mined (1)

(kt)

1,887

1,943

1,974

1,851

1,391

3,242

4,091

Ore milled

(kt)

2,116

2,112

2,097

2,302

554

2,856

4,395

Average copper grade

(%)

2.00%

2.07%

2.30%

2.10%

2.22%

2.12%

1.98%

Average uranium grade

(kg/t)

0.68

0.61

0.58

0.55

0.58

0.56

0.64










Production









Copper cathode (ER and EW)

(kt)

37.2

36.8

51.4

42.0

12.2

54.2

78.1

Uranium oxide concentrate

(t)

1,060

948

737

880

243

1,123

1,976

Refined gold

(troy oz)

29,651

21,941

28,188

13,101

15,969

29,070

54,017

Refined silver

(troy koz)

188

174

243

131

135

266

351










Sales









Copper cathode (ER and EW)

(kt)

41.2

33.5

51.5

31.6

24.3

55.9

78.7

Uranium oxide concentrate

(t)

883

839

1,298

680

338

1,018

1,968

Refined gold

(troy oz)

28,234

22,333

24,726

22,435

17,999

40,434

50,135

Refined silver

(troy koz)

203

108

251

219

118

337

387

 

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

 

 

 

 

 

 

 

 

18

Production and sales report



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Iron Ore









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

Pilbara, Australia









Production









Newman

(kt)

17,751

16,283

16,241

13,842

18,317

32,159

35,759

Area C Joint Venture

(kt)

12,179

11,165

13,016

13,099

13,575

26,674

24,563

Yandi Joint Venture

(kt)

17,555

14,656

17,415

14,559

16,348

30,907

33,284

Jimblebar (1)

(kt)

5,178

4,824

5,891

6,283

4,583

10,866

11,235

Wheelarra

(kt)

7,386

6,647

7,578

7,804

8,734

16,538

12,795



 

 

 

 

 

 

 

Total production

(kt)

60,049

53,575

60,141

55,587

61,557

117,144

117,636



 

 

 

 

 

 

 

Total production (100%)

(kt)

69,730

62,177

69,714

64,287

71,611

135,898

136,411



 

 

 

 

 

 

 










Sales









Lump

(kt)

14,127

12,804

15,104

13,896

15,145

29,041

28,283

Fines

(kt)

45,447

41,043

46,249

40,733

45,769

86,502

87,725



 

 

 

 

 

 

 

Total

(kt)

59,574

53,847

61,353

54,629

60,914

115,543

116,008



 

 

 

 

 

 

 

Total sales (100%)

(kt)

69,196

62,513

71,149

63,322

70,733

134,055

134,564



 

 

 

 

 

 

 

 

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

 

Samarco, Brazil (1)









Production

(kt)

-

-

-

-

-

-

-










Sales

(kt)

-

35

-

-

14

14

12

 

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

 

 

 

19

Production and sales report

 



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Coal









Coal production is reported on the basis of saleable product.






Queensland Coal









Production (1)









BMA









Blackwater

(kt)

1,855

1,694

1,766

1,985

1,470

3,455

3,836

Goonyella

(kt)

2,204

1,871

1,157

1,639

1,369

3,008

4,327

Peak Downs

(kt)

1,715

1,582

1,238

1,602

1,367

2,969

3,235

Saraji

(kt)

1,307

1,276

913

1,414

1,198

2,612

2,545

Daunia

(kt)

680

674

560

662

718

1,380

1,326

Caval Ridge

(kt)

923

899

760

994

1,272

2,266

1,799



 

 

 

 

 

 

 

Total BMA

(kt)

8,684

7,996

6,394

8,296

7,394

15,690

17,068



 

 

 

 

 

 

 










BHP Mitsui Coal (2)









South Walker Creek

(kt)

1,080

1,354

1,348

1,400

1,524

2,924

2,421

Poitrel

(kt)

849

784

752

871

767

1,638

1,653



 

 

 

 

 

 

 

Total BHP Mitsui Coal

(kt)

1,929

2,138

2,100

2,271

2,291

4,562

4,074



 

 

 

 

 

 

 

Total Queensland Coal

(kt)

10,613

10,134

8,494

10,567

9,685

20,252

21,142



 

 

 

 

 

 

 










Sales









Coking coal

(kt)

7,658

7,133

5,496

7,934

6,341

14,275

14,898

Weak coking coal

(kt)

2,659

2,761

2,502

3,150

2,816

5,966

5,458

Thermal coal

(kt)

154

96

142

102

173

275

360



 

 

 

 

 

 

 

Total

(kt)

10,471

9,990

8,140

11,186

9,330

20,516

20,716



 

 

 

 

 

 

 

 

 

(1)   Production figures include some thermal coal.

(2)   Shown on a 100% basis. BHP interest in saleable production is 80%.

 

Haju, Indonesia (1)









Production

(kt)

27

-

-

-

-

-

129










Sales - export

(kt)

-

-

-

-

-

-

-

 

(1)   Shown on 100% basis. BHP interest in saleable production is 75%. BHP completed the sale of IndoMet Coal on 14 October 2016.

 

New Mexico, USA









Production









Navajo Coal (1)

(kt)

-

-

-

-

-

-

451



 

 

 

 

 

 

 

Total

(kt)

-

-

-

-

-

-

451



 

 

 

 

 

 

 










Sales thermal coal - local utility


-

-

-

-

-

-

105

 

(1)   The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP. Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.

 

20

NSW Energy Coal, Australia









Production

(kt)

3,851

4,662

5,711

4,235

4,383

8,618

7,803










Sales









Export thermal coal

(kt)

3,539

4,407

4,913

3,622

4,048

7,670

7,179

Inland thermal coal

(kt)

311

431

327

405

411

816

642



 

 

 

 

 

 

 

Total

(kt)

3,850

4,838

5,240

4,027

4,459

8,486

7,821



 

 

 

 

 

 

 










Cerrejón, Colombia









Production

(kt)

2,800

2,756

2,475

2,497

2,914

5,411

5,728










Sales thermal coal - export

(kt)

2,722

2,613

2,803

2,518

2,619

5,137

5,627

 

Production and sales report



Quarter ended

 

Year to date

 



Dec
2016

 

Mar
2017

 

Jun
2017

 

Sep
2017

 

Dec
2017

 

Dec
2017

 

Dec
2016

 

Other









Nickel production is reported on the basis of saleable product










Nickel West, Australia









Production









Nickel contained in concentrate

(kt)

0.2

0.2

-

-

-

-

0.5

Nickel contained in finished matte

(kt)

4.1

2.3

5.3

6.8

4.6

11.4

5.9

Nickel metal

(kt)

17.8

16.5

19.9

16.0

17.8

33.8

34.5



 

 

 

 

 

 

 

Total nickel production

(kt)

22.1

19.0

25.2

22.8

22.4

45.2

40.9



 

 

 

 

 

 

 










Sales









Nickel contained in concentrate

(kt)

0.2

0.2

-

-

-

-

0.5

Nickel contained in finished matte

(kt)

4.1

2.2

4.9

4.6

6.4

11.0

5.9

Nickel metal

(kt)

17.6

17.1

18.1

16.6

17.9

34.5

34.1



 

 

 

 

 

 

 

Total nickel sales

(kt)

21.9

19.5

23.0

21.2

24.3

45.5

40.5



 

 

 

 

 

 

 

 

21


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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