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Wednesday 17 July, 2019

BHP Group PLC

Operational Review for the Year Ended 30 June 2019

RNS Number : 7564F
BHP Group PLC
16 July 2019
 

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 Bélé-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.

 

Production

FY19
(vs FY18)

Jun Q19
(vs Mar Q19)

Jun Q19 commentary

Petroleum (MMboe)

121
(+1%)

30
(+3%)

Higher seasonal gas volumes and higher uptime due to planned shutdowns in the previous quarter at Bass Strait.

Copper (kt)

1,689
(-4%)

444
(+6%)

Strong performance at all three Chilean operations partially offset by the impact of two minor production outages at Olympic Dam.

Iron ore (Mt)

238
(0%)

63
(+12%)

Increased production at Western Australia Iron Ore (WAIO) reflected the return to full capacity following Tropical Cyclone Veronica in March 2019.

Metallurgical coal (Mt)

42
(-1%)

12
(+20%)

Record production at BMC and improved mining performance across most operations following significant wet weather impacts in the previous quarter.

Energy coal (Mt)

27
(-6%)

7
(+10%)

Increased stripping performance at New South Wales Energy Coal (NSWEC), partially offset by the impact of adverse weather at Cerrejón.

Nickel (kt)

87
(-6%)

29
(+49%)

Increased production reflected completion of final repairs and ramp up 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.

1

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.

Production

FY19

Jun Q19

FY19
vs
FY18

Jun Q19
vs
Jun Q18

Jun Q19
vs
Mar Q19

FY20
guidance

FY20e

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%)

   Cerrejón (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.

 

2

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.

Description

H2 FY19
impact
US$M(i)

Classification(ii)

Continuing operations



Unit costs for Petroleum, Escondida and WAIO expected to be in line with full year guidance, although tracking to upper limits

Refer footnote(iii)

↑ Operating costs

Queensland Coal and NSWEC unit costs expected to be marginally above full year guidance due to the impacts of higher stripping costs and wet weather in Queensland

Refer footnote(iii)

↑ Operating costs

Increase in closure and rehabilitation provision for closed mines(iv)

~250

↑ Operating costs

Restructuring and redundancy costs in relation to World Class Functions

~100

↑ Operating costs

Exploration expense (including petroleum and minerals exploration programs)

294

↑ Exploration expense

The Group's adjusted effective tax rate for the full year is expected to be at the higher end of the guidance range of 33 to 38 per cent

Refer footnote(iii)

↑ Taxation expense

Non-cash fair value adjustments related to interest rate and exchange rate movements are expected to increase net debt in the June 2019 half year

Refer footnote(iii)

↑ Net debt

Special dividend paid to shareholders on 30 January 2019

5,188

↑ Financing cash outflow

Dividends paid to non-controlling interests

~570

 ↑ Financing cash outflow

Provision for decommissioning the Germano dam at Samarco

~260

↑ Exceptional item charge

Financial impact on BHP Billiton Brasil of the Samarco dam failure

Refer footnote(iii)

↑ Exceptional item charge

Discontinued operations



Net proceeds received from the sale of Onshore US (including final four instalment payments)

3,503

↑ Investing cash inflow

 

(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.

 

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 for the 2019 financial year, excluding the impact of Tropical Cyclone Veronica on our WAIO operations.

 

3



 

Average realised prices

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

Average realised prices(i)

Jun H19

Dec H18

FY19

FY18

FY19
vs
FY18

Jun H19
vs
Jun H18

Jun H19
vs
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 from 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 Cerrejón. 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.

4

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.

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.

Petroleum

Production


FY19

Jun

Q19

FY19

vs

FY18

Jun Q19

vs

Jun Q18

Jun Q19

vs

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

Project and
ownership

Capital expenditure US$M

Initial production target date

Capacity

Progress

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 53% complete.

Atlantis Phase 3
(US Gulf of Mexico)
44% (non-operator)

696

CY20

New subsea production system that will tie back to the existing Atlantis facility, with capacity to produce up to 38,000 gross barrels of oil equivalent per day.

On schedule and budget. The overall project is 13% complete.

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.

5

Petroleum exploration

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

Well

Location

Target

Formation

age

BHP
equity

Spud date

Water depth

Total well depth

Status

Bélé-1

Trinidad & Tobago Block 23(a)

Gas

Pliocene

70% (BHP Operator)

2 March 2019

2,102 m

3,982 m

Hydrocarbons encountered; Plugged and abandoned

Tuk-1

Trinidad & Tobago Block 23(a)

Gas

Pliocene

70% (BHP Operator)

24 April 2019

1,954 m

4,511 m

Hydrocarbons encountered; Plugged and abandoned

Hi-Hat-1

Trinidad & Tobago Block 14

Gas

Pliocene

70% (BHP Operator)

20 May 2019

1,782 m

3,804 m

Hydrocarbons encountered; Plugged and abandoned

Achernar-1

Western Australia
WA-28-P

Gas

Jurassic

15.8% (Woodside Operator)

2 May 2019

122 m

3,285 m

Dry hole;
Plugged and abandoned

 

In Trinidad and Tobago, Phase 3 of our deepwater drilling campaign was completed. This campaign included three wells - Bélé-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.

Copper

Production


FY19

Jun Q19

FY19

vs

FY18

Jun Q19

vs

Jun Q18

Jun Q19

vs

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.

6

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

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 60% complete.

Iron Ore

Production


FY19

Jun Q19

FY19

vs

FY18

Jun Q19

vs

Jun Q18

Jun Q19

vs

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.

7

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

Projects

Project and
ownership

Capital expenditure US$M

Initial production target date

Capacity

Progress

South Flank
(Australia)
85%

 3,061

CY21

Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi mine.

On schedule and budget. The overall project is 39% complete.

Coal

Production


FY19

Jun Q19

 

FY19

vs

FY18

Jun Q19

vs

Jun Q18

Jun Q19

vs

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.

Cerrejón 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

FY19

vs

FY18

Jun Q19

vs

Jun Q18

Jun Q19

vs

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.

8

Potash project

Project and
ownership

Investment
US$M

Scope

Progress

Jansen Potash
(Canada)
100%

2,700

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 84% complete and within the approved budget. Boring equipment has been removed from both shafts and preparation work for final shaft lining is continuing.  

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 <US$11/boe, Escondida <US$1.15/lb, WAIO <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.

9

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

 

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Australia and Asia

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United Kingdom and South Africa

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

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Members of the BHP Group which is

headquartered in Australia

Follow us on social media

 

 

10

Production summary

 



Quarter ended

Year to date





 

 




BHP

interest

Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

2018




 

 

 

 

 

 

 

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



 

 

 

 

 

 

 












11

Production summary

 



Quarter ended

Year to date



 

 


BHP

interest

Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

2018



 

 

 

 

 

 

 

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.

 

12

Production and sales report



Quarter ended

Year to date



 

 





Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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



 

 

 

 

 

 

 

13

 

Production and sales report


Quarter ended

Year to date


 

 


Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

14

Production and sales report





Quarter ended

Year to date

 

.




 

 

 





Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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

15

Production and sales report


Quarter ended

Year to date

 


 

 

 


Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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.

 

 

16

Production and sales report





Quarter ended

Year to date

 





 

 

 





Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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 Fundão tailings dam and Santarém water dam on 5 November 2015.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

Production and sales report





Quarter ended

Year to date

 





 

 

 





Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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




 

 

 

 

 

 

 












Cerrejón, 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

 

18

Production and sales report

 





Quarter ended

Year to date

 

 





 

 

 

 





Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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.

 

 

 

 

19

Production and sales report

 


Quarter ended

Year to date

 


 

 

 


Jun

2018

Sep

2018

Dec

2018

Mar

2019

Jun

2019

Jun

2019

Jun

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.

 

 

 

 

 

 

 

 

 

 

20


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