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BHP Group PLC (BHP)

BHP Group PLC

Operational Review Half Year Ended 31 Dec 2019
RNS Number : 3851A
BHP Group PLC
20 January 2020
 

Release Time

IMMEDIATE

Date

21 January 2020

Release Number

02/20

BHP OPERATIONAL REVIEW
FOR THE HALF YEAR ENDED 31 DECEMBER 2019

  • All production and unit cost guidance(1) (based on exchange rates of AUD/USD 0.70 and USD/CLP 683) remains unchanged for the 2020 financial year. Escondida unit costs tracking below full year guidance at the December 2019 half year largely as a result of higher by-product credits.
  • Group copper equivalent production was broadly unchanged in the December 2019 half year, with volumes for the full year expected to be slightly higher than last year.
  •  All major projects under development are tracking to plan. In Petroleum, BHP and Woodside signed a non-binding Heads of Agreement to progress the Scarborough gas development.
  •  In Copper exploration, the third phase of the drilling program at Oak Dam in South Australia is in progress and is expected to be completed in the June 2020 quarter.
  • The financial results for the December 2019 half year are expected to reflect certain items as summarised in the table on page two.

 

Production

Dec H19

(vs Dec H18)

Dec Q19

(vs Sep Q19)

Dec Q19 vs Sep Q19 commentary

Petroleum (MMboe)

57

(9%)

28

(4%)

Lower gas sales at Bass Strait and Trinidad and Tobago, partially offset by higher volumes from the Gulf of Mexico following Tropical Storm Barry impacts in the prior quarter.

Copper (kt)

885

7%

455

6%

Strong concentrator throughput at Escondida more than offset the impact from social unrest in Chile. Higher production at Olympic Dam following planned preparatory work in the prior quarter related to the refinery crane replacement.

Iron ore (Mt)

121

2%

60

(1%)

Lower volumes at Western Australia Iron Ore (WAIO) due to completion of a major car dumper maintenance program in October 2019.

Metallurgical coal (Mt)

20

(2%)

11

17%

Higher volumes following completion of significant planned wash plant maintenance activities in the prior quarter.

Energy coal (Mt)

12

(12%)

6

8%

Higher volumes at New South Wales Energy Coal (NSWEC) as a result of a higher average strip ratio in the prior quarter, and higher volumes at Cerrejon due to adverse weather in the prior quarter.

Nickel (kt)

35

(11%)

14

(37%)

Volumes reflected the impact of major quadrennial maintenance activities at the Kwinana refinery and Kalgoorlie smelter.

 

Mike Henry assumed the role of BHP Chief Executive Officer and Executive Director on 1 January 2020.

BHP Chief Executive Officer, Mike Henry, said: "We delivered solid operational performances across the portfolio in the first half of the 2020 financial year, offsetting the expected impacts of planned maintenance and natural field decline. Production and cost guidance is unchanged, and we remain on track to deliver slightly higher production than last year. Our six major development projects are progressing well, and we continue to advance our exploration programs in petroleum and copper."                         

 

1

Summary

Operational performance

Production and guidance are summarised below.

Production

Dec
H19

Dec
Q19

Dec H19
vs
Dec H18

Dec Q19
vs
Dec Q18

Dec Q19
vs
Sep Q19


FY20
guidance


 

57

28

(9%)

(6%)

(4%)

110 - 116

Lower end of range

885

455

7%

9%

6%

1,705 - 1,820

 

602

309

4%

9%

5%

1,160 - 1,230

Unchanged

283

147

15%

11%

7%

545 - 590

Unchanged

121

60

2%

4%

(1%)

242 - 253

 

   WAIO (100% basis) (Mt)

137

68

2%

4%

(2%)

273 - 286

Unchanged

20

11

(2%)

6%

17%

41 - 45

 

36

20

0%

9%

21%

73 - 79

Unchanged

12

6

(12%)

(9%)

8%

24 - 26

 

7

4

(11%)

(13%)

5%

15 - 17

Unchanged

4

2

(13%)

(2%)

13%

~9

Unchanged

35

14

(11%)

(24%)

(37%)

~87

Unchanged

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

Summary of disclosures

BHP expects its December 2019 half year financial results 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 18 February 2020. Accordingly the information is subject to update.

Description

H1 FY20
impact
US$M(i)

Classification(ii)

Unit costs for Petroleum, WAIO, Queensland Coal and NSWEC expected to be in line with full year guidance

Refer footnote(iii)

 Operating costs

Unit costs for Escondida tracking below full year guidance in H1 FY20 primarily due to higher by-product credits

Refer footnote(iii)

↓ Operating costs

Exploration expense (including petroleum and minerals exploration programs)

231

↑ Exploration expense

The Group's adjusted effective tax rate for H1 FY20 is expected to be at the lower end of the guidance range of 33 to 38 per cent

Refer footnote(iii)

↓ Taxation expense

Application of IFRS 16 Leases, new leases, lease payments, remeasurement of vessel lease contracts(iv) and inclusion of derivatives in net debt

2,100 - 2,500

↑ Net debt

The Group's net debt target range is US$12 to US$17 billion, with net debt expected to remain towards the lower end of the range in the near term

-

Net debt

Dividends received from equity accounted investments

~110

↑ Operating cash inflow

Dividends paid to non-controlling interests

~610

 ↑ Financing cash outflow

Provision related to cancellation of power contracts (after taxation) as part of shift towards 100 per cent renewable energy at Escondida and Spence (no cash outflow in H1 FY20)

~500(V)

↑ Exceptional item charge

Financial impact on BHP Brasil of the Samarco dam failure

Refer footnote(iii)

↑ Exceptional item charge

(i)     Numbers are not tax effected, unless otherwise noted.

 

2

(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)   Vessel lease contracts must be remeasured at each reporting date and are priced with reference to a freight index.

(v)    Provision related to cancellation of power contracts of approximately US$780 million before taxation.

Major development projects

At the end of December 2019, BHP had six major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$11.4 billion over the life of the projects. All major projects under development are tracking to plan.

 Average realised prices

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

Average realised prices(i)

Dec H19

Dec H18

Jun H19

FY19

Dec H19
vs
Dec H18

Dec H19
vs
Jun H19

Dec H19
vs
FY19

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

60.64

69.91

63.29

66.59

(13%)

(4%)

(9%)

Natural gas (US$/Mscf)(ii)

4.26

4.67

4.42

4.55

(9%)

(4%)

(6%)

LNG (US$/Mscf)

7.62

10.19

8.53

9.43

(25%)

(11%)

(19%)

Copper (US$/lb)

2.60

2.54

2.70

2.62

2%

(4%)

(1%)

Iron ore (US$/wmt, FOB)

78.30

55.62

77.74

66.68

41%

1%

17%

Metallurgical coal (US$/t)

140.94

179.82

179.53

179.67

(22%)

(21%)

(22%)

   Hard coking coal (US$/t)(iii)

154.01

197.86

201.33

199.61

(22%)

(24%)

(23%)

   Weak coking coal (US$/t)(iii)

101.06

134.12

126.46

130.18

(25%)

(20%)

(22%)

Thermal coal (US$/t)(iv)

58.55

84.15

72.18

77.90

(30%)

(19%)

(25%)

Nickel metal (US$/t)

15,715

12,480

12,444

12,462

26%

26%

26%

(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)   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.

(iv)   Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

The large 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 large 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 31 December 2019, the Group had 345 kt of outstanding copper sales that were revalued at a weighted average price of US$2.80 per pound. The final price of these sales will be determined over the remainder of the 2020 financial year. In addition, 322 kt of copper sales from the 2019 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$16 million in the 2020 financial year and is included in the average realised copper price in the above table.

3

Corporate update

In November 2019, BHP approved US$44 million for BHP Brasil's share of the funding for work related to the restart of one concentrator at Samarco. The funding will enable the construction of a filtration plant and the commencement of operation readiness activities. This follows the approval of the Corrective Operating Licence (LOC) for Samarco's operating activities at its Germano Complex in October 2019. Restart can occur when the filtration system is complete and Samarco has met all necessary safety requirements, and will be subject to final approval by Samarco's shareholders.

In December 2019, BHP agreed to fund a total of US$793 million in further financial support for the Renova Foundation and Samarco. This comprises US$581 million to fund the Renova Foundation until 31 December 2020 which will be offset against the Group's provision for the Samarco dam failure, and a short-term facility of up to US$212 million(3) to be made available to Samarco until 31 December 2020.

As at the date of this Operational Review, for the purpose of the December 2019 half year financial results, we are not in a position to provide an update on the ongoing potential financial impacts on BHP Brasil of the Samarco dam failure. Any financial impacts will continue to be treated as an exceptional item.

Petroleum

Production

 

Dec

H19

Dec

Q19

Dec H19
vs
Dec H18

Dec Q19
vs
Dec Q18

Dec Q19
vs
Sep Q19

Crude oil, condensate and natural gas liquids (MMboe)

26

13

(9%)

(7%)

7%

Natural gas (bcf)

189

89

(8%)

(6%)

(12%)

Total petroleum production (MMboe)

57

28

(9%)

(6%)

(4%)

Petroleum - Total petroleum production decreased by nine per cent to 57 MMboe. Guidance for the 2020 financial year remains unchanged at between 110 and 116 MMboe, with volumes expected to be towards the lower end of the guidance range.

Crude oil, condensate and natural gas liquids production declined by nine per cent to 26 MMboe due to the impact of Tropical Storm Barry in the Gulf of Mexico and natural field decline across the portfolio. This decline was partially offset by higher uptime at Pyrenees following the 70 day dry dock maintenance program during the September 2018 quarter.

Natural gas production decreased by eight per cent to 189 bcf, reflecting a decrease in tax barrels at Trinidad and Tobago in accordance with the terms of our Production Sharing Contract, maintenance at North West Shelf, reduced domestic gas sales in Western Australia, and natural field decline across the portfolio.

 

 

 

4

Projects

Project and
ownership

Capital expenditure US$M

Initial production target date

Capacity

Progress

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 36% complete.

Ruby
(Trinidad & Tobago) 68.46% (operator)

283

CY21

Five production wells tied back into existing operated processing facilities, with capacity to produce up to 16,000 gross barrels of oil per day and 80 million gross standard cubic feet of natural gas per day.

On schedule and budget. 
The overall project is 13% 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 65% complete.

The Bass Strait West Barracouta project is tracking to plan and is expected to achieve first production in the 2021 calendar year.

On 18 November 2019, BHP and Woodside signed a non-binding Heads of Agreement to progress the Scarborough gas development which, amongst other terms, includes agreement on a competitive tariff for gas processing through the Pluto LNG facility and BHP's election not to exercise its option for an additional 10 per cent of the WA-1-R lease. BHP and Woodside are targeting finalisation of the required conditional binding agreements by the end of March 2020. A final investment decision by BHP is expected from the middle of the 2020 calendar year.

Petroleum exploration

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

Well

Location

Target

Formation age

BHP equity

Spud date

Water depth

Total well depth

Status

Carnival-1

Trinidad & Tobago Block 14

Gas

Late Miocene

70% (BHP Operator)

30 September 2019

2,119 m

4,347 m

Dry hole;
Plugged and abandoned

In Trinidad and Tobago, we completed the exploration program on our Northern licences as part of Phase 4 of our deepwater drilling campaign. The Carnival-1 well was spud on 30 September 2019 and was a dry hole. The well was plugged and abandoned on 13 October 2019. Development planning studies of the discoveries in the North are ongoing. Following Carnival-1, the Deepwater Invictus rig returned to the US Gulf of Mexico where it is currently completing regulatory abandonment work on Shenzi appraisal and exploration boreholes.

During the December 2019 quarter, we extended our contract for the Deepwater Invictus rig for an additional year through to May 2021 to support our ongoing exploration activities.

As reported in the September 2019 Operational Review, we were the apparent highest bidder on blocks GC124 and GC168 in Green Canyon in the central Gulf of Mexico and on 18 additional blocks(4) in the western Gulf of Mexico. All leases were awarded by the Regulator in the December 2019 quarter.

Petroleum exploration expenditure for the December 2019 half year was US$306 million, of which US$164 million was expensed. A US$0.7 billion exploration and appraisal program is being executed for the 2020 financial year.

5

Copper

Production

 

Dec

H19

Dec

Q19

Dec H19
vs
Dec H18

Dec Q19
vs
Dec Q18

Dec Q19
vs
Sep Q19

Copper (kt)

885

455

7%

9%

6%

Zinc (t)

42,937

22,483

(22%)

(7%)

10%

Uranium (t)

1,886

949

27%

2%

1%

Copper - Total copper production increased by seven per cent to 885 kt. Guidance for the 2020 financial year remains unchanged at between 1,705 and 1,820 kt.

Escondida copper production increased by four per cent to 602 kt, with record average concentrator throughput of 367 ktpd for the half year, driven by ongoing improvements in maintenance and operational performance under our Transformation program. This offset expected grade decline and a 5 kt concentrate production impact related to stoppages associated with the social unrest in Chile. Including cathodes, the total production impact of the stoppages is expected to be 7 kt for the 2020 financial year. The Escondida Water Supply Expansion project was completed in December 2019, on schedule and budget, further increasing total desalinated water capacity to 3,800 litres per second. Guidance for the 2020 financial year remains unchanged at between 1,160 and 1,230 kt, with further improvements in concentrator throughput expected to offset an approximately five per cent reduction in the copper grade of concentrator feed versus the prior year.

Pampa Norte copper production increased by 18 per cent to 124 kt, reflecting the impact of a fire at the electro-winning plant at Spence in the prior year. Guidance for the 2020 financial year remains unchanged at between 230 and 250 kt, including expected grade decline of approximately 10 per cent.

Olympic Dam copper production increased by 32 per cent to 86 kt as a result of the prior period acid plant outage, partially offset by the impact of planned preparatory work undertaken in the September 2019 quarter related to the replacement of the refinery crane. The physical replacement and commissioning of the refinery crane is scheduled for the March 2020 quarter. Guidance for the 2020 financial year remains unchanged at between 180 and 205 kt.

Antamina copper production decreased by two per cent to 74 kt and zinc production decreased by 22 per cent to 43 kt, reflecting lower copper and zinc head grades, in line with the mine plan. Guidance for the 2020 financial year remains unchanged at approximately 135 kt for copper and approximately 110 kt for zinc.

Projects

Project and
ownership

Capital expenditure US$M

Initial production target date

Capacity

Progress

Spence Growth Option
(Chile)
100%

 2,460

H1 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 81% complete.

 

 

 

6

Iron Ore

Production

 

Dec

H19

Dec

Q19

Dec H19
vs
Dec H18

Dec Q19
vs
Dec Q18

Dec Q19
vs
Sep Q19

Iron ore production (kt)

121,400

60,395

2%

4%

(1%)

Iron ore - Total iron ore production increased by two per cent to 121 Mt (137 Mt on a 100 per cent basis). Guidance for the 2020 financial year remains unchanged at between 242 and 253 Mt (273 and 286 Mt on a 100 per cent basis), with a stronger second half performance expected in line with our plans.

At WAIO, higher volumes reflected record production at Jimblebar and the impact of the train derailment in the December 2018 half year. This was partly offset by a major car dumper maintenance campaign (completed on 16 October 2019) to further improve port reliability and provide a stable base for our tightly coupled supply chain. Mine operations continued to deliver consistent performance.

Consistent with our revised mine plan, we expect Jimblebar fines Fe grade to improve in the second half of the 2020 financial year, with the typical specification returning to above 60 per cent in the June 2020 quarter.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. Approval of the Corrective Operating Licence (LOC) for Samarco's operating activities at its Germano Complex was received in October 2019 and operation readiness activities for restart have commenced. Restart can occur when the filtration system is complete and Samarco has met all necessary safety requirements, and will be subject to final approval by Samarco's shareholders.

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 58% complete.

Coal

Production

 

Dec

H19

 

Dec

Q19

 

Dec H19
vs
Dec H18

Dec Q19
vs
Dec Q18

Dec Q19
vs
Sep Q19

Metallurgical coal (kt)

20,282

10,924

(2%)

6%

17%

Energy coal (kt)

11,725

6,078

(12%)

(9%)

8%

Metallurgical coal - Metallurgical coal production was down two per cent to 20 Mt (36 Mt on a 100 per cent basis). Guidance for the 2020 financial year remains unchanged at between 41 and 45 Mt (73 and 79 Mt on a 100 per cent basis), with a stronger second half performance expected in line with our plans.

At Queensland Coal, strong underlying operational performance at Poitrel, Peak Downs, Caval Ridge and Broadmeadow was offset by planned major wash plant shutdowns at Goonyella, Peak Downs and Caval Ridge, low opening raw coal inventories at Blackwater, and truck and shovel underperformance at South Walker Creek.

7

Energy coal - Energy coal production decreased by 12 per cent to 12 Mt. Guidance for the 2020 financial year remains unchanged at between 24 and 26 Mt.

New South Wales Energy Coal production decreased by 11 per cent to 7 Mt as a result of the change in product strategy to focus on higher quality products. Smoke from regional bushfires and dust have reduced air quality at our operations, which has impacted December 2019 production. We are monitoring the situation and if air quality continues to deteriorate then operations could be constrained further in the second half of the year. Guidance for the 2020 financial year remains unchanged at between 15 and 17 Mt.

Cerrejón production decreased by 13 per cent to 4 Mt as a result of a focus on higher quality products, in line with the mine plan, and the impact of adverse weather in the September 2019 quarter. Guidance for the 2020 financial year remains unchanged at approximately 9 Mt.

Other

Nickel production

 

Dec

H19

Dec
Q19

Dec H19
vs
Dec H18

Dec Q19
vs
Dec Q18

Dec Q19
vs
Sep Q19

Nickel (kt)

35.3

13.7

(11%)

(24%)

(37%)

Nickel - Nickel West production decreased by 11 per cent to 35 kt due to the major quadrennial maintenance shutdowns at the Kwinana refinery and the Kalgoorlie smelter, as well as planned routine maintenance at the concentrators, in the December 2019 quarter. Guidance for the 2020 financial year remains unchanged, with production expected to be broadly in line with the 2019 financial year.

Operations Services - In Australia, Operations Services has now been deployed at 13 locations across WAIO, Queensland Coal and NSWEC, with over 1,500 permanent jobs created. Deployments are successfully accelerating safety and productivity outcomes.

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 85% complete and within the approved budget. Final shaft lining work is continuing.   

Minerals exploration

Minerals exploration expenditure for the December 2019 half year was US$84 million, of which US$67 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Mexico, Peru, Canada, South Australia and the south-west United States.

Consistent with our focus on copper, in November 2019, BHP increased its interest in SolGold Plc, the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador, by 3.6 per cent to 14.7 per cent.

At Oak Dam in South Australia, the third phase of the drilling program commenced in November 2019 and is expected to be completed in the June 2020 quarter. This follows encouraging results from the previous drilling phases, which confirmed high-grade mineralised intercepts of copper, with associated gold, uranium and silver.

8

Variance analysis relates to the relative performance of BHP and/or its operations during the December 2019 half year compared with the December 2018 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. 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)       2020 financial year unit cost guidance: Petroleum US$10.50-11.50/boe, Escondida US$1.20-1.35/lb, WAIO US$13-14/t, Queensland Coal US$67-74/t and NSWEC US$55-61/t; based on exchange rates of AUD/USD 0.70 and USD/CLP 683.

(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)       Short-term facility of up to US$212 million includes US$2 million related to the decommissioning of the Germano dam which will be offset against the Group's provision.

(4)       We were the apparent high bidder on 18 additional blocks: GB630, GB574, GB575, GB619, GB676, GB677, EB655, EB656, EB701, GB762, GB805, GB806, GB851, GB852, GB895, GB672, GB716 and GB760.

 

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 28 'Subsidiaries' in section 5.1 of BHP's 30 June 2019 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

 

Authorised for lodgement by:

Rachel Agnew

Company Secretary

 

Media Relations

 

 

Investor Relations

Email: media.relations@bhp.com

 

Email: investor.relations@bhp.com

Australia and Asia

 

Gabrielle Notley

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

 

Europe, Middle East and Africa

 

Neil Burrows

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

 

Americas

 

Judy Dane

Tel: +1 713 961 8283  Mobile: +1 713 299 5342

 

Australia and Asia

 

Tara Dines

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

 

Europe, Middle East and Africa

 

Elisa Morniroli

Tel: +44 20 7802 7611  Mobile: +44 7825 926 646

 

Americas

 

Brian Massey

Tel: +1 713 296 7919  Mobile: +1 832 870 7677

 

 

 

 

 

 

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Melbourne Victoria 3000 Australia

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

 

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10

Production summary

 

 

 

Quarter ended

Year to date

 

 

 

 

 

BHP

Dec

Mar

Jun

Sep

Dec

Dec

Dec

 

interest

2018

2019

2019

2019

2019

2019

2018

 

 

 

 

 

 

 

 

 

 

 

Dec-18

Mar-19

Jun-19

Sep-19

Dec-19

 

 

Petroleum (1)

 

 

 

 

 

 

 

 

Petroleum

 

 

 

 

 

 

 

 

Production

 

 

 

 

 

 

 

 

Crude oil, condensate and NGL (Mboe)

 

14,497

13,236

13,366

12,507

13,412

25,919

28,584

Natural gas (bcf)

 

93.9

92.9

97.8

100.4

88.7

189.1

206.2

 

 

 

 

 

 

 

 

 

Total (Mboe)

 

30,147

28,719

29,666

29,240

28,195

57,436

62,951

 

 

 

 

 

 

 

 

 

Copper (2)

 

 

 

 

 

 

 

 

Copper

 

 

 

 

 

 

 

 

Payable metal in concentrate (kt)

 

 

 

 

 

 

 

 

Escondida (3)

57.5%

212.6

205.4

224.1

237.0

240.3

477.3

452.6

Antamina

33.8%

38.3

34.5

37.4

37.6

36.2

73.8

75.3

 

 

 

 

 

 

 

 

 

Total

 

250.9

239.9

261.5

274.6

276.5

551.1

527.9

 

 

 

 

 

 

 

 

 

Cathode (kt)

 

 

 

 

 

 

 

 

Escondida (3)

57.5%

71.9

62.4

63.5

55.9

68.4

124.3

127.3

Pampa Norte (4)

100%

61.8

67.2

74.1

63.9

60.0

123.9

105.2

Olympic Dam

100%

31.6

50.2

45.2

35.1

50.5

85.6

64.9

 

 

 

 

 

 

 

 

 

Total

 

165.3

179.8

182.8

154.9

178.9

333.8

297.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total copper (kt)

 

416.2

419.7

444.3

429.5

455.4

884.9

825.3

 

 

 

 

 

 

 

 

 

Lead

 

 

 

 

 

 

 

 

Payable metal in concentrate (t)

 

 

 

 

 

 

 

 

Antamina

33.8%

600

456

770

405

383

788

1,163

 

 

 

 

 

 

 

 

 

Total

 

600

456

770

405

383

788

1,163

 

 

 

 

 

 

 

 

 

Zinc

 

 

 

 

 

 

 

 

Payable metal in concentrate (t)

 

 

 

 

 

 

 

 

Antamina

33.8%

24,237

20,848

22,469

20,454

22,483

42,937

54,795

 

 

 

 

 

 

 

 

 

Total

 

24,237

20,848

22,469

20,454

22,483

42,937

54,795

 

 

 

 

 

 

 

 

 

Gold

 

 

 

 

 

 

 

 

Payable metal in concentrate (troy oz)

 

 

 

 

 

 

 

 

Escondida (3)

57.5%

73,726

73,998

74,704

48,801

49,209

98,010

137,304

Olympic Dam (refined gold)

100%

17,856

28,609

37,032

43,205

35,382

78,587

41,327

 

 

 

 

 

 

 

 

 

Total

 

91,582

102,607

111,736

92,006

84,591

176,597

178,631

 

 

 

 

 

 

 

 

 

Silver

 

 

 

 

 

 

 

 

Payable metal in concentrate (troy koz)

 

 

 

 

 

 

 

 

Escondida (3)

57.5%

2,570

2,189

2,074

1,626

1,798

3,424

4,567

Antamina

33.8%

1,178

1,062

1,209

1,101

1,173

2,274

2,487

Olympic Dam (refined silver)

100%

212

230

268

245

203

448

425

 

 

 

 

 

 

 

 

 

Total

 

3,960

3,481

3,551

2,972

3,174

6,146

7,479

 

 

 

 

 

 

 

 

 

Uranium

 

 

 

 

 

 

 

 

Payable metal in concentrate (t)

 

 

 

 

 

 

 

 

Olympic Dam

100%

929

1,106

975

937

949

1,886

1,484

 

 

 

 

 

 

 

 

 

Total

 

929

1,106

975

937

949

1,886

1,484

 

 

 

 

 

 

 

 

 

Molybdenum

 

 

 

 

 

 

 

 

Payable metal in concentrate (t)

 

 

 

 

 

 

 

 

Antamina

33.8%

417

82

178

405

527

932

881

 

 

 

 

 

 

 

 

 

Total

 

417

82

178

405

527

932

881

 

 

 

 

 

 

 

 

 

11

Production summary

 

 

 

Quarter ended

Year to date

 

 

 

 

 

BHP

Dec

Mar

Jun

Sep

Dec

Dec

Dec

 

interest

2018

2019

2019

2019

2019

2019

2018

 

 

 

 

 

 

 

 

 

 

 

Dec-18

Mar-19

Jun-19

Sep-19

Dec-19

 

 

Iron Ore

 

 

 

 

 

 

 

 

Iron Ore

 

 

 

 

 

 

 

 

Production (kt) (5)

 

 

 

 

 

 

 

 

Newman

85%

17,578

15,608

17,058

16,316

15,766

32,082

33,956

Area C Joint Venture

85%

10,280

11,627

13,837

12,620

12,727

25,347

21,976

Yandi Joint Venture

85%

15,627

15,214

17,486

17,827

14,857

32,684

32,497

Jimblebar (6)

85%

14,326

13,658

14,209

14,239

17,045

31,284

30,679

Wheelarra

85%

30

10

5

3

-

3

144

Samarco

50%

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

 

Total

 

57,841

56,117

62,595

61,005

60,395

121,400

119,252

 

 

 

 

 

 

 

 

 

Coal

 

 

 

 

 

 

 

 

Metallurgical coal

 

 

 

 

 

 

 

 

Production (kt) (7)

 

 

 

 

 

 

 

 

BMA

50%

7,694

7,608

9,090

6,905

8,723

15,628

15,438

BHP Mitsui Coal (8)

80%

2,578

2,269

2,804

2,453

2,201

4,654

5,192

 

 

 

 

 

 

 

 

 

Total

 

10,272

9,877

11,894

9,358

10,924

20,282

20,630

 

 

 

 

 

 

 

 

 

Energy coal

 

 

 

 

 

 

 

 

Production (kt)

 

 

 

 

 

 

 

 

Australia

100%

4,311

4,552

5,412

3,592

3,763

7,355

8,293

Colombia

33.3%

2,356

2,199

2,017

2,055

2,315

4,370

5,014

 

 

 

 

 

 

 

 

 

Total

 

6,667

6,751

7,429

5,647

6,078

11,725

13,307

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

Nickel

 

 

 

 

 

 

 

 

Saleable production (kt)

 

 

 

 

 

 

 

 

Nickel West (9)

100%

18.1

19.2

28.7

21.6

13.7

35.3

39.5

 

 

 

 

 

 

 

 

 

Total

 

18.1

19.2

28.7

21.6

13.7

35.3

39.5

 

 

 

 

 

 

 

 

 

Cobalt

 

 

 

 

 

 

 

 

Saleable production (t)

 

 

 

 

 

 

 

 

Nickel West

100%

154

194

302

211

120

331

403

 

 

 

 

 

 

 

 

 

Total

 

154

194

302

211

120

331

403

 

 

 

 

 

 

 

 

 

 

(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 1,000 Mboe.

(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

 

 

 

 

Dec 2018

Mar 2019

Jun 2019

Sep
2019

Dec 2019

Dec
2019

Dec 2018

 

 

 

 

 

 

 

 

Petroleum (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bass Strait

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

1,401

893

1,246

1,409

1,427

2,836

3,054

NGL

(Mboe)

1,447

849

1,299

1,810

1,405

3,215

3,287

Natural gas

(bcf)

25.2

21.0

30.6

36.6

27.8

64.4

60.3

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

7,048

5,242

7,645

9,319

7,465

16,784

16,391

 

 

 

 

 

 

 

 

 

North West Shelf

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

1,520

1,431

1,357

1,337

1,376

2,713

3,034

NGL

(Mboe)

206

193

189

202

200

402

448

Natural gas

(bcf)

37.5

36.6

34.8

32.1

32.9

65.0

74.1

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

7,976

7,724

7,346

6,889

7,059

13,948

15,832

 

 

 

 

 

 

 

 

 

Pyrenees

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

1,101

940

1,001

979

934

1,913

1,383

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

1,101

940

1,001

979

934

1,913

1,383

 

 

 

 

 

 

 

 

 

Other Australia (2)

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

8

6

7

8

1

9

15

Natural gas

(bcf)

13.9

13.0

12.2

12.0

11.4

23.4

27.7

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

2,325

2,173

2,040

2,008

1,901

3,909

4,632

 

 

 

 

 

 

 

 

 

Atlantis (3)

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

3,802

3,888

3,607

2,759

3,525

6,284

6,992

NGL

(Mboe)

268

275

248

192

245

437

483

Natural gas

(bcf)

1.9

2.0

2.2

1.4

1.8

3.2

3.4

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

4,387

4,496

4,222

3,184

4,070

7,254

8,042

 

 

 

 

 

 

 

 

 

Mad Dog (3)

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

1,158

1,258

1,246

1,096

1,202

2,298

2,428

NGL

(Mboe)

54

58

23

49

52

101

115

Natural gas

(bcf)

0.2

0.2

0.2

0.2

0.2

0.4

0.4

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

1,245

1,349

1,302

1,178

1,287

2,466

2,610

 

 

 

 

 

 

 

 

 

Shenzi (3)

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

2,024

1,881

1,725

1,345

1,671

3,016

4,040

NGL

(Mboe)

121

112

(2)

70

94

164

243

Natural gas

(bcf)

0.4

0.4

0.4

0.2

0.3

0.5

0.8

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

2,212

2,060

1,790

1,448

1,815

3,263

4,416

 

 

 

 

 

 

 

 

 

Trinidad/Tobago

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

200

284

235

175

166

341

647

Natural gas

(bcf)

14.0

19.5

17.3

17.9

14.2

32.1

38.0

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

2,533

3,534

3,118

3,158

2,533

5,691

6,980

 

 

 

 

 

 

 

 

 

Other Americas (3) (4)

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

218

284

272

185

230

415

425

NGL

(Mboe)

4

18

3

2

4

6

7

Natural gas

(bcf)

0.1

0.2

0.1

-

0.1

0.1

0.1

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

239

335

292

187

251

438

449

 

 

 

 

 

 

 

 

 

UK (5)

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

36

-

-

-

-

-

72

NGL

(Mboe)

21

-

-

-

-

-

42

Natural gas

(bcf)

0.7

-

-

-

-

-

1.4

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

174

-

-

-

-

-

347

 

 

 

 

 

 

 

 

 

Algeria

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

908

866

910

889

880

1,769

1,869

 

 

 

 

 

 

 

 

 

Total petroleum products

(Mboe)

908

866

910

889

880

1,769

1,869

 

 

 

 

 

 

 

 

 

 

13

Production and sales report

 

 

 

Quarter ended

Year to date

 

 

 

 

 

Dec

2018

Mar

2019

Jun

2019

Sep

2019

Dec

2019

Dec

2019

Dec

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Petroleum (1)

 

 

 

 

 

 

 

 

Total production

 

 

 

 

 

 

 

 

Crude oil and condensate

(Mboe)

12,376

11,731

11,606

10,182

11,412

21,594

23,959

NGL

(Mboe)

2,121

1,505

1,760

2,325

2,000

4,325

4,625

Natural gas

(bcf)

93.9

92.9

97.8

100.4

88.7

189.1

206.2

 

 

 

 

 

 

 

 

 

Total

(Mboe)

30,147

28,719

29,666

29,240

28,195

57,436

62,951

 

 

 

 

 

 

 

 

 

                   

 (1)      Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe. 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

 

 

 

 

 

Dec

2018

Mar

2019

Jun

2019

Sep

2019

Dec

2019

Dec

2019

Dec

2018

 

 

 

 

 

 

 

 

Copper

 

 

 

 

 

 

 

 

Metals production is payable metal unless otherwise stated.

 

 

 

 

 

Escondida, Chile (1)

 

 

 

 

 

 

 

 

Material mined

(kt)

105,580

103,936

100,693

101,026

100,057

201,083

212,840

Sulphide ore milled

(kt)

30,507

32,027

32,519

33,956

33,659

67,615

61,020

Average concentrator head grade

(%)

0.87%

0.82%

0.86%

0.86%

0.87%

0.86%

0.91%

Production ex mill

(kt)

219.9

216.9

230.9

245.0

246.1

491.1

461.8

Production

 

 

 

 

 

 

 

 

Payable copper

(kt)

212.6

205.4

224.1

237.0

240.3

477.3

452.6

Copper cathode (EW)

(kt)

71.9

62.4

63.5

55.9

68.4

124.3

127.3

 - Oxide leach

(kt)

23.4

20.9

23.4

21.9

28.3

50.2

42.9

 - Sulphide leach

(kt)

48.5

41.5

40.1

34.1

40.1

74.2

84.3

 

 

 

 

 

 

 

 

 

Total copper

(kt)

284.5

267.8

287.6

292.9

308.7

601.6

579.9

 

 

 

 

 

 

 

 

 

Payable gold concentrate

(troy oz)

73,726

73,998

74,704

48,801

49,209

98,010

137,304

Payable silver concentrate

(troy koz)

2,570

2,189

2,074

1,626

1,798

3,424

4,567

Sales

 

 

 

 

 

 

 

 

Payable copper

(kt)

229.2

212.0

223.4

222.2

248.3

470.5

445.7

Copper cathode (EW)

(kt)

72.3

56.6

67.5

52.3

70.6

122.9

125.5

Payable gold concentrate

(troy oz)

73,726

73,999

74,704

48,801

49,209

98,010

137,304

Payable silver concentrate

(troy koz)

2,570

2,189

2,074

1,626

1,798

3,424

4,567

                                                                                                                                                                               

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

 

Pampa Norte, Chile

 

 

 

 

 

 

 

 

Cerro Colorado

 

 

 

 

 

 

 

 

Material mined

(kt)

19,875

15,561

13,534

15,071

18,102

33,173

38,363

Ore milled

(kt)

5,069

4,277

4,740

3,995

5,009

9,004

9,871

Average copper grade

(%)

0.62%

0.63%

0.64%

0.54%

0.57%

0.56%

0.58%

Production

 

 

 

 

 

 

 

 

Copper cathode (EW)

(kt)

19.4

18.2

23.4

16.4

13.8

30.2

33.6

Sales

 

 

 

 

 

 

 

 

Copper cathode (EW)

(kt)

19.0

15.5

26.8

14.5

15.8

30.3

32.8

Spence

 

 

 

 

 

 

 

 

Material mined

(kt)

21,661

18,632

19,213

21,040

23,132

44,172

44,668

Ore milled

(kt)

5,428

4,376

5,224

5,635

5,133

10,768

11,070

Average copper grade

(%)

1.10%

1.03%

1.02%

0.95%

0.90%

0.93%

1.16%

Production

 

 

 

 

 

 

 

 

Copper cathode (EW)

(kt)

42.4

49.0

50.7

47.5

46.2

93.7

71.6

Sales

 

 

 

 

 

 

 

 

Copper cathode (EW)

(kt)

39.1

46.1

55.0

46.7

44.3

91.0

68.8

     

 

 

 

 

 

 

 

 

 

 

15

Production and sales report

 

 

 

Quarter ended

Year to date

 

 

 

 

 

Dec

2018

Mar

2019

Jun

2019

Sep

2019

Dec

2019

Dec

2019

Dec

2018

 

 

 

 

 

 

 

 

Copper (continued)

 

 

 

 

 

 

 

 

Metals production is payable metal unless otherwise stated.

 

 

Antamina, Peru

 

 

 

 

 

 

 

 

Material mined (100%)

(kt)

62,850

57,900

58,994

59,299

63,224

122,523

125,320

Sulphide ore milled (100%)

(kt)

12,912

11,466

12,864

13,121

13,637

26,758

26,109

Average head grades

 

 

 

 

 

 

 

 

 - Copper

(%)

1.02%

1.04%

1.02%

0.99%

0.96%

0.97%

0.99%

 - Zinc

(%)

0.85%

0.87%

0.86%

0.80%

0.82%

0.81%

0.98%

 

 

 

 

 

 

 

 

 

Production

 

 

 

 

 

 

 

 

Payable copper

(kt)

38.3

34.5

37.4

37.6

36.2

73.8

75.3

Payable zinc

(t)

24,237

20,848

22,469

20,454

22,483

42,937

54,795

Payable silver

(troy koz)

1,178

1,062

1,209

1,101

1,173

2,274

2,487

Payable lead

(t)

600

456

770

405

383

788

1,163

Payable molybdenum

(t)

417

82

178

405

527

932

881

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

Payable copper

(kt)

40.7

33.3

36.0

33.1

43.6

76.7

74.3

Payable zinc

(t)

26,072

20,595

21,750

20,196

23,808

44,004

57,894

Payable silver

(troy koz)

1,236

1,027

937

954

1,396

2,350

2,429

Payable lead

(t)

649

749

296

844

432

1,276

1,261

Payable molybdenum

(t)

535

256

127

173

400

573

743

     

 

 

 

 

 

 

 

 

Olympic Dam, Australia

 

 

 

 

 

 

 

 

Material mined (1)

(kt)

2,434

2,191

2,425

2,477

2,347

4,824

4,478

Ore milled

(kt)

2,157

2,371

2,195

2,200

2,153

4,353

3,399

Average copper grade

(%)

2.10%

2.22%

2.30%

2.31%

2.36%

2.33%

2.08%

Average uranium grade

(kg/t)

0.62

0.65

0.65

0.65

0.71

0.68

0.62

 

 

 

 

 

 

 

 

 

Production

 

 

 

 

 

 

 

 

Copper cathode (ER and EW)

(kt)

31.6

50.2

45.2

35.1

50.5

85.6

64.9

Payable uranium

(t)

929

1,106

975

937

949

1,886

1,484

Refined gold

(troy oz)

17,856

28,609

37,032

43,205

35,382

78,587

41,327

Refined silver

(troy koz)

212

230

268

245

203

448

425

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

Copper cathode (ER and EW)

(kt)

26.6

47.4

50.5

32.1

49.0

81.1

60.5

Payable uranium

(t)

828

550

1,427

778

638

1,416

1,593

Refined gold

(troy oz)

17,812

27,574

36,133

40,073

36,507

76,580

38,957

Refined silver

(troy koz)

177

241

257

250

202

452

393

                         

                       

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

 

 

 

 

 

 

 

16

Production and sales report

 

 

 

Quarter ended

Year to date

 

 

 

 

 

Dec

2018

Mar

2019

Jun

2019

Sep

2019

Dec

2019

Dec

2019

Dec

2018

 

 

 

 

 

 

 

 

Iron Ore

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Pilbara, Australia

 

 

 

 

 

 

 

 

Production

 

 

 

 

 

 

 

 

Newman

(kt)

17,578

15,608

17,058

16,316

15,766

32,082

33,956

Area C Joint Venture

(kt)

10,280

11,627

13,837

12,620

12,727

25,347

21,976

Yandi Joint Venture

(kt)

15,627

15,214

17,486

17,827

14,857

32,684

32,497

Jimblebar (1)

(kt)

14,326

13,658

14,209

14,239

17,045

31,284

30,679

Wheelarra

(kt)

30

10

5

3

-

3

144

 

 

 

 

 

 

 

 

 

Total production

(kt)

57,841

56,117

62,595

61,005

60,395

121,400

119,252

 

 

 

 

 

 

 

 

 

Total production (100%)

(kt)

65,515

63,609

71,133

69,257

68,044

137,301

134,857

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

Lump

(kt)

14,020

13,603

15,568

14,785

15,982

30,767

29,034

Fines

(kt)

44,059

41,981

48,064

45,509

45,785

91,294

90,586

 

 

 

 

 

 

 

 

 

Total

(kt)

58,079

55,584

63,632

60,294

61,767

122,061

119,620

 

 

 

 

 

 

 

 

 

Total sales (100%)

(kt)

65,758

62,853

72,173

68,291

69,481

137,772

135,179

 

 

 

 

 

 

 

 

 

                     

 

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

 

Samarco, Brazil (1)

 

 

 

 

 

 

 

 

Production

(kt)

-

-

-

-

-

-

-

Sales

(kt)

10

-

-

-

-

-

10

 

 (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

 

 

 

 

 

Dec

2018

Mar

2019

Jun

2019

Sep

2019

Dec

2019

Dec

2019

Dec

2018

 

 

 

 

 

 

 

 

Coal  

 

 

 

 

 

 

 

 

Coal production is reported on the basis of saleable product.

 

 

 

 

 

Queensland Coal

 

 

 

 

 

 

 

 

Production (1)

 

 

 

 

 

 

 

 

BMA

 

 

 

 

 

 

 

 

Blackwater

(kt)

1,680

1,484

1,735

1,045

1,734

2,779

3,384

Goonyella

(kt)

1,813

2,141

2,620

1,489

2,662

4,151

3,802

Peak Downs

(kt)

1,685

1,468

1,649

1,423

1,386

2,809

2,816

Saraji

(kt)

1,288

1,250

1,243

1,214

1,325

2,539

2,399

Daunia

(kt)

419

470

669

556

579

1,135

1,039

Caval Ridge

(kt)

809

795

1,174

1,178

1,037

2,215

1,998

 

 

 

 

 

 

 

 

 

Total BMA

(kt)

7,694

7,608

9,090

6,905

8,723

15,628

15,438

 

 

 

 

 

 

 

 

 

Total BMA (100%)

(kt)

15,388

15,216

18,180

13,810

17,446

31,256

30,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BHP Mitsui Coal (2)

 

 

 

 

 

 

 

 

South Walker Creek

(kt)

1,636

1,429

1,624

1,378

1,196

2,574

3,141

Poitrel

(kt)

942

840

1,180

1,075

1,005

2,080

2,051

 

 

 

 

 

 

 

 

 

Total BHP Mitsui Coal

(kt)

2,578

2,269

2,804

2,453

2,201

4,654

5,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Queensland Coal

(kt)

10,272

9,877

11,894

9,358

10,924

20,282

20,630

 

 

 

 

 

 

 

 

 

Total Queensland Coal (100%)

(kt)

17,966

17,485

20,984

16,263

19,647

35,910

36,068

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

Coking coal

(kt)

7,514

7,221

7,932

7,299

7,775

15,074

14,870

Weak coking coal

(kt)

3,058

3,282

2,942

2,466

2,475

4,941

5,871

Thermal coal

(kt)

157

379

350

94

30

124

298

 

 

 

 

 

 

 

 

 

Total

(kt)

10,729

10,882

11,224

9,859

10,280

20,139

21,039

 

 

 

 

 

 

 

 

 

Total (100%)

(kt)

18,818

19,176

19,789

17,145

18,459

35,604

36,920

 

 

 

 

 

 

 

 

 

                     

                                                                                                                                                                                                                

 (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)

4,311

4,552

5,412

3,592

3,763

7,355

8,293

Sales

 

 

 

 

 

 

 

 

Export thermal coal

(kt)

4,809

3,529

5,181

3,075

3,952

7,027

8,358

Inland thermal coal

(kt)

393

302

975

567

-

567

725

 

 

 

 

 

 

 

 

 

Total

(kt)

5,202

3,831

6,156

3,642

3,952

7,594

9,083

 

 

 

 

 

 

 

 

 

Cerrejón, Colombia

 

 

 

 

 

 

 

 

Production

(kt)

2,356

2,199

2,017

2,055

2,315

4,370

5,014

Sales thermal coal - export

(kt)

2,297

2,200

2,245

2,069

2,261

4,330

4,886

 

 

18

Production and sales report

 

 

 

Quarter ended

Year to date

 

 

 

 

 

Dec

2018

Mar

2019

Jun

2019

Sep

2019

Dec

2019

Dec

2019

Dec

2018

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

Nickel production is reported on the basis of saleable product

 

 

 

 

 

 

Nickel West, Australia

 

 

 

 

 

 

 

 

Mt Keith

 

 

 

 

 

 

 

 

Nickel concentrate

(kt)

44.9

52.5

52.8

43.7

31.5

75.2

95.1

Average nickel grade

(%)

19.8

19.2

19.5

18.3

17.3

17.9

19.3

Leinster

 

 

 

 

 

 

 

 

Nickel concentrate

(kt)

65.3

51.8

48.3

67.2

56.6

123.8

144.1

Average nickel grade

(%)

8.4

9.3

10.8

10.0

8.6

9.4

8.4

Saleable production

 

 

 

 

 

 

 

 

Refined nickel (1) (2)

(kt)

16.3

17.6

19.9

17.4

11.1

28.5

36.1

Intermediates and nickel by-
products
(1) (3)

(kt)

1.8

1.6

8.8

4.2

2.6

6.8

3.4

 

 

 

 

 

 

 

 

 

Total nickel (1)

(kt)

18.1

19.2

28.7

21.6

13.7

35.3

39.5

 

 

 

 

 

 

 

 

 

Cobalt by-products

(t)

154

194

302

211

120

331

403

Sales

 

 

 

 

 

 

 

 

Refined nickel (1) (2)

(kt)

17.3

17.9

19.9

17.0

10.6

27.6

36.6

Intermediates and nickel by-
products
(1) (3)

(kt)

2.1

0.1

8.4

5.7

2.7

8.4

4.3

 

 

 

 

 

 

 

 

 

Total nickel (1)

(kt)

19.4

18.0

28.3

22.7

13.3

36.0

40.9

 

 

 

 

 

 

 

 

 

Cobalt by-products

(t)

154

194

302

212

131

343

403

                     

                                                                                                                                                                                                                

 (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


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