UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

April 17, 2019

 

 

 

BHP GROUP LIMITED

(ABN 49 004 028 077)

(Exact name of Registrant as specified in its charter)

 

VICTORIA, AUSTRALIA

(Jurisdiction of incorporation or organisation)

 

171 COLLINS STREET, MELBOURNE,

VICTORIA 3000 AUSTRALIA

(Address of principal executive offices)

  

BHP GROUP PLC

(REG. NO. 3196209)

(Exact name of Registrant as specified in its charter)

 

ENGLAND AND WALES

(Jurisdiction of incorporation or organisation)

 

NOVA SOUTH, 160 VICTORIA STREET

LONDON, SW1E 5LB

UNITED KINGDOM

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:  

☒ Form 20-F    ☐ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:  ☐ Yes    ☒ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

 

 

 


NEWS RELEASE    LOGO

 

Release Time        

   IMMEDIATE

Date

   17 April 2019

Release Number

   09/19

BHP OPERATIONAL REVIEW FOR THE NINE MONTHS ENDED 31 MARCH 2019

 

 

Production guidance for the 2019 financial year remains unchanged for petroleum, copper, metallurgical coal and energy coal. Iron ore production guidance decreased to between 265 and 270 Mt (100% basis), reflecting impacts of Tropical Cyclone Veronica.

 

 

Group copper equivalent production(1) was broadly unchanged over the nine months ended March 2019, with volumes for the full year also expected to be in line with last year.

 

 

Full year unit costs for Petroleum, Escondida and Queensland Coal are expected to be in line with guidance(2). Unit costs for Western Australia Iron Ore are now expected to be below US$15 per tonne(2), reflecting impacts of Tropical Cyclone Veronica. Unit costs for New South Wales Energy Coal are now expected to be approximately US$51 per tonne(2), following changes to the mine plan.

 

 

All major projects under development are tracking to plan.

 

 

In Petroleum, the Atlantis Phase 3 project in the US Gulf of Mexico was approved and the Bélé-1 exploration well in Trinidad and Tobago encountered hydrocarbons (drilling still in progress) during the quarter.

 

Production

   Mar YTD19
(vs Mar YTD18)
    Mar Q19
(vs Dec Q18)
   

Mar Q19 commentary

Petroleum (MMboe)(1)

    
92
(0
 
%) 
   
29
(-5
 
%) 
  Lower seasonal gas sales at Bass Strait partially offset by higher Trinidad and Tobago volumes following maintenance in the previous quarter.

Copper (kt)

    
1,245
(-3
 
%) 
   
420
(+1
 
%) 
  Increased production from Olympic Dam as surface operations returned to full capacity following acid plant outage in August 2018, offset by impact of expected lower copper grades at Escondida.

Iron ore (Mt)

    
175
(0
 
%) 
   
56
(-3
 
%) 
  Volumes at Western Australia Iron Ore (WAIO) reflected the impact of Tropical Cyclone Veronica.

Metallurgical coal (Mt)

    
31
(0
 
%) 
   
10
(-4
 
%) 
  A solid underlying operating performance at Queensland Coal was offset by the impacts of wet weather.

Energy coal (Mt)

    
20
(0
 
%) 
   
7
(+1
 
%) 
  Increased production at New South Wales Energy Coal (NSWEC) was offset by the impact of adverse weather at Cerrejón.

BHP Chief Executive Officer, Andrew Mackenzie, said: “During the March 2019 quarter, we had a strong operational performance despite weather impacts across Australia and Chile. We approved Atlantis Phase 3 and now have five major projects under development. Those projects, our work on transformation, technology and culture, and our successful petroleum and copper exploration and appraisal programs will grow value and returns for years to come.”

 

 

BHP Operational Review for the nine months ended 31 March 2019    1


Summary

Operational performance

Production and guidance are summarised below.

 

Production

   Mar
YTD19
     Mar
Q19
     Mar YTD19
vs
Mar YTD18
    Mar Q19
vs
Mar Q18
    Mar Q19
vs
Dec Q18
    Previous
FY19
guidance
     Current
FY19
guidance
        

Petroleum (MMboe)

     92        29        0     3     (5 %)      113 - 118        113 - 118        Upper end of range  

Copper (kt)

     1,245        420        (3 %)      (8 %)      1     1,645 - 1,740        1,645 - 1,740        Unchanged  

Escondida

     848        268        (6 %)      (15 %)      (6 %)      1,120 - 1,180        1,120 - 1,180        Lower end of range  

Other copper(i)

     397        152        1     7     15     525 - 560        525 - 560       
Olympic Dam:
Lower end of range
 
 

Iron ore(ii) (Mt)

     175        56        0     (3 %)      (3 %)      241 - 250        235 - 239       

Lowered due to
Tropical Cyclone
Veronica
 
 
 

WAIO (100% basis)

     198        64        (2 %)      (5 %)      (3 %)      273 - 283        265 - 270        As above  

Metallurgical coal (Mt)

     31        10        0     (5 %)      (4 %)      43 - 46        43 - 46        Unchanged  

Queensland Coal (100% basis)

     54        17        (1 %)      (5 %)      (3 %)      75 - 81        75 - 81        Unchanged  

Energy coal (Mt)

     20        7        0     11     1     28 - 29        28 - 29        Unchanged  

NSWEC

     13        5        5     24     6     18 - 19        18 - 19        Unchanged  

Cerrejón

     7        2        (8 %)      (10 %)      (7 %)      10        10        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 March 2019 quarter, the BHP Board approved US$696 million (BHP share) in capital expenditure for the Atlantis Phase 3 project in the US Gulf of Mexico.

At the end of March 2019, 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.

Petroleum

Production

 

     Mar
YTD19
     Mar
Q19
     Mar YTD19
vs
Mar YTD18
    Mar Q19
vs
Mar Q18
    Mar Q19
vs
Dec Q18
 

Crude oil, condensate and natural gas liquids (MMboe)

     42        13        (5 %)      (5 %)      (9 %) 

Natural gas (bcf)

     299        93        4     12     (1 %) 

Total petroleum production (MMboe)

     92        29        0     3     (5 %) 

Petroleum - Total petroleum production was flat at 92 MMboe. Guidance for the 2019 financial year remains unchanged at between 113 and 118 MMboe, with volumes expected to be towards the upper end of the guidance range.

Crude oil, condensate and natural gas liquids production decreased by five per cent to 42 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 partially offset by higher uptimes at our Gulf of Mexico assets and stronger field performance in Atlantis.

Natural gas production increased by four per cent to 299 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 and natural field decline across the portfolio.

 

 

BHP Operational Review for the nine months ended 31 March 2019    2


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 46% 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.    Project approved on 13 February 2019.

On 13 February 2019, the BHP Board approved the development of the Atlantis Phase 3 project in the US Gulf of Mexico. The project includes a subsea tie back of eight new production wells and is expected to increase production by an estimated 38 Mboe/d (100 per cent basis) at its peak. This decision follows sanction by BP (the operator).

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 2019 calendar year.

Petroleum exploration

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

 

Well

   Location   Target    Formation
age
  

BHP equity

  

Spud date

  

Water depth

  

Total well
depth

  

Status

Trion-2DEL    Mexico
Block AE-0093
  Oil    Eocene    60% (BHP Operator)    15 November 2018    2,379 m    4,659 m    Hydrocarbons encountered; Plugged and abandoned
Trion-2DEL ST01    Mexico
Block AE-0093
  Oil    Eocene    60% (BHP Operator)    4 January 2019    2,379 m    5,002 m    Hydrocarbons encountered; Plugged and abandoned
Bélé-1    Trinidad &
Tobago Block 23(a)
  Gas    Pliocene    70% (BHP Operator)    2 March 2019    2,102 m    3,693 m    Hydrocarbons encountered; Drilling ahead

In Mexico, we spud the Trion-2DEL appraisal well in November 2018 and encountered oil in line with expectations. This was followed by a downdip sidetrack which encountered oil and water, as predicted, further appraising the field and delineating the resource. Following the recent encouraging results in the Trion block, an additional appraisal well (3DEL), to further delineate the scale and characterisation of the resource, has been approved and is expected to be drilled in the second half of the 2019 calendar year.

The Deepwater Invictus rig mobilised to Trinidad and Tobago for Phase 3 of our deepwater drilling campaign. This includes three wells testing three prospects in our Northern licences around the Bongos discovery. Bélé-1, the first of these wells, was spud on 2 March 2019 and encountered hydrocarbons. Drilling is still in progress and our assessment is ongoing.

In the US Gulf of Mexico, following the Samurai-2 discovery in 2018, Murphy, the Operator, has commenced pre-FEED activities. In the Western US Gulf of Mexico, our Ocean Bottom Node(3) seismic acquisition survey and node recovery has been completed. This will be incorporated into our ongoing analysis which we will continue to progress over the next 24 months.

Petroleum exploration expenditure for the nine months ended March 2019 was US$438 million, of which US$215 million was expensed. A US$750 million exploration and appraisal program is being executed for the 2019 financial year.

 

 

BHP Operational Review for the nine months ended 31 March 2019    3


Copper

Production

 

     Mar YTD19      Mar Q19      Mar YTD19
vs
Mar YTD18
    Mar Q19
vs
Mar Q18
    Mar Q19
vs
Dec Q18
 

Copper (kt)

     1,245        420        (3 %)      (8 %)      1

Zinc (t)

     75,643        20,848        (10 %)      (18 %)      (14 %) 

Uranium (t)

     2,590        1,106        16     (1 %)      19

Copper – Total copper production decreased by three per cent to 1,245 kt. Guidance for the 2019 financial year remains unchanged at between 1,645 and 1,740 kt.

Escondida copper production decreased by six per cent to 848 kt as expected lower copper grades were partly offset by record concentrator throughput. Production guidance remains unchanged at between 1,120 and 1,180 kt for the 2019 financial year, with volumes expected to be towards the lower end of the range.

Pampa Norte copper production decreased by 11 per cent to 172 kt and reflects planned maintenance and a production outage at Spence following a fire at the electro-winning plant in September 2018, and the impact of heavy rainfall in northern Chile in February 2019 at both Spence and Cerro Colorado. This was partially offset by record ore milled at both operations after implementing maintenance improvement initiatives. Production guidance at Spence and Cerro Colorado remains unchanged for the 2019 financial year, at between 160 and 175 kt and 60 and 70 kt respectively.

Olympic Dam copper production increased by 22 per cent to 115 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. Following completion of the acid plant remediation works, surface operations ramped up between October 2018 and February 2019. Production guidance remains unchanged at between 170 and 180 kt for the 2019 financial year, with volumes expected to be towards the lower end of the guidance range.

Antamina copper production increased by five per cent to 110 kt due to higher head grades. Production guidance for the 2019 financial year remains unchanged at approximately 135 kt for copper and approximately 85 kt for zinc.

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 47% complete.

 

 

BHP Operational Review for the nine months ended 31 March 2019    4


Iron Ore

Production

 

     Mar YTD19      Mar Q19      Mar YTD19
vs
Mar YTD18
    Mar Q19
vs
Mar Q18
    Mar Q19
vs
Dec Q18
 

Iron ore (kt)

     175,343        56,117        0     (3 %)      (3 %) 

Iron ore – Total iron ore production was broadly unchanged at 175 Mt (198 Mt on a 100 per cent basis). Production guidance for the 2019 financial year has been reduced to between 235 and 239 Mt, or 265 and 270 Mt on a 100 per cent basis, reflecting a 6 to 8 Mt impact from Tropical Cyclone Veronica. As a result, full year unit costs are now expected to be below US$15 per tonne, an increase from previous guidance of less than US$14 per tonne, due to the lower volumes, direct costs of remediation, increased demurrage, rehandle to manage stockyards and opportune maintenance at the mines during port downtime. In addition, private royalties are also expected to be higher as a function of higher iron ore prices.

At WAIO, volumes reflected record production at Jimblebar and the impact 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. While our facilities did not sustain major damage as a result of the cyclone, the port ramp up was slowed by localised flooding, processing wet material and equipment assessments.

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 29% complete.

 

 

BHP Operational Review for the nine months ended 31 March 2019    5


Coal

Production

 

     Mar YTD19      Mar Q19      Mar YTD19
vs
Mar YTD18
    Mar Q19
vs
Mar Q18
    Mar Q19
vs
Dec Q18
 

Metallurgical coal (kt)

     30,507        9,877        0     (5 %)      (4 %) 

Energy coal (kt)

     20,058        6,751        0     11     1

Metallurgical coal – Metallurgical coal production was broadly flat at 31 Mt (54 Mt on a 100 per cent basis). Guidance for the 2019 financial year remains unchanged at between 43 and 46 Mt (75 and 81 Mt on a 100 per cent basis).

At Queensland Coal, increased yields at South Walker Creek and higher wash-plant throughput at Poitrel following the purchase of the Red Mountain processing facility supported record production at BMC. Despite record stripping, BMA’s production decreased slightly due to the scheduled longwall move at Broadmeadow in the December 2018 quarter and unfavourable weather impacts in the March 2019 quarter.

On 27 March 2019, BMA completed the sale of the Gregory Crinum Mine to Sojitz Corporation.

Energy coal – Energy coal production was broadly flat at 20 Mt. Guidance for the 2019 financial year remains unchanged at approximately 28 to 29 Mt.

New South Wales Energy Coal production increased five per cent supported by record stripping performance. Production guidance remains unchanged at between 18 and 19 Mt for the 2019 financial year. However, following optimisation of the mine plan through the construction of Multiple Elevated Roadways (MERs) which will reduce future cycle times, the focus on higher quality products and challenges with labour hire attraction and retention, unit costs for New South Wales Energy Coal are now expected to be approximately US$51 per tonne, an increase from previous guidance of between US$43 and US$48 per tonne. Ongoing labour hire challenges are being addressed, including through the initial deployment of BHP Operations Services in the June 2019 quarter.

Cerrejón production decreased by eight per cent due to adverse weather and its impacts on mine sequencing. Production guidance remains unchanged at approximately 10 Mt for the 2019 financial year.

Other

Nickel production

 

     Mar YTD19      Mar Q19      Mar YTD19
vs
Mar YTD18
    Mar Q19
vs
Mar Q18
    Mar Q19
vs
Dec Q18
 

Nickel (kt)

     58.7        19.2        (13 %)      (9 %)      6

Nickel – Nickel West production decreased by 13 per cent to 59 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. Production guidance for the 2019 financial year remains unchanged and is expected to be broadly in line with the 2018 financial year.

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 83% complete and within the approved budget. The main activity for the quarter remained centred on removing the boring equipment from both shafts.

 

 

BHP Operational Review for the nine months ended 31 March 2019    6


Minerals exploration

Minerals exploration expenditure for the nine months ended March 2019 was US$122 million, of which US$84 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 March 2019, BHP signed a non-binding letter of intent with Luminex for an earn-in and joint venture agreement on Luminex’s Tarqui 1 and 2 mining concessions in Ecuador. Negotiations to complete a binding agreement will be undertaken over the next two months.

On 15 April 2019, BHP secured a five per cent interest in Midland Exploration Inc., which has copper exploration tenements in Canada.

Following identification in November 2018 of a potential iron oxide, copper and gold (IOCG) mineralised system at Oak Dam, 65 kilometres to the south east of Olympic Dam, BHP has commenced a further drilling program to define the extent of mineralisation.

Variance analysis relates to the relative performance of BHP and/or its operations during the nine months ended March 2019 compared with the nine months ended March 2018, 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 2018 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)

WGOM OBN 2018 Seismic Permit is OCS Permit T18-010.

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

In this release, the terms ‘BHP’, ‘Group’, ‘BHP Group’, ‘we’, ‘us’, ‘our’ and ourselves’ are used to refer to BHP Group Limited, BHP Group plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 27 ‘Subsidiaries’ in section 5.1 of BHP’s 30 June 2018 Annual Report and Form 20-F, unless stated otherwise. Notwithstanding that this release may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise.

 

 

BHP Operational Review for the nine months ended 31 March 2019    7


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

 

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BHP Group Limited ABN 49 004 028 077    BHP Group plc Registration number 3196209
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BHP Operational Review for the nine months ended 31 March 2019    8


Production summary

           Quarter ended      Year to date  
     BHP
interest
    Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Petroleum (1)

                      

Petroleum

                      

Conventional

                      

Crude oil, condensate and NGL (Mboe)

       13,960        13,486        14,087        14,497        13,236        41,820        43,919  

Natural gas (bcf)

       82.9        90.7        112.3        93.9        92.9        299.1        286.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total (Mboe)

       27,777        28,603        32,804        30,147        28,719        91,670        91,636  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     244.9        246.1        240.0        212.6        205.4        658.0        679.7  

Antamina

     33.8     35.2        34.6        37.0        38.3        34.5        109.8        104.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       280.1        280.7        277.0        250.9        239.9        767.8        784.6  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     69.4        70.1        55.4        71.9        62.4        189.7        217.4  

Pampa Norte (4)

     100     66.8        70.6        43.4        61.8        67.2        172.4        193.2  

Olympic Dam

     100     40.5        42.0        33.3        31.6        50.2        115.1        94.7  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       176.7        182.7        132.1        165.3        179.8        477.2        505.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper (kt)

       456.8        463.4        409.1        416.2        419.7        1,245.0        1,289.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     464        546        563        600        456        1,619        2,888  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       464        546        563        600        456        1,619        2,888  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     25,562        35,983        30,558        24,237        20,848        75,643        83,817  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       25,562        35,983        30,558        24,237        20,848        75,643        83,817  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     59,953        68,345        63,578        73,726        73,998        211,302        160,757  

Olympic Dam (refined gold)

     100     28,989        33,497        23,471        17,856        28,609        69,936        58,059  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       88,942        101,842        87,049        91,582        102,607        281,238        218,816  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     2,339        2,527        1,997        2,570        2,189        6,756        6,269  

Antamina

     33.8     1,189        1,321        1,309        1,178        1,062        3,549        4,116  

Olympic Dam (refined silver)

     100     248        278        213        212        230        655        514  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       3,776        4,126        3,519        3,960        3,481        10,960        10,899  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     1,118        1,123        555        929        1,106        2,590        2,241  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,118        1,123        555        929        1,106        2,590        2,241  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     420        261        464        417        82        963        1,401  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       420        261        464        417        82        963        1,401  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2019    9


Production summary

           Quarter ended      Year to date  
     BHP
interest
    Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     16,412        18,500        16,378        17,578        15,608        49,564        48,571  

Area C Joint Venture

     85     12,802        12,041        11,696        10,280        11,627        33,603        39,476  

Yandi Joint Venture

     85     15,802        17,339        16,870        15,627        15,214        47,711        46,709  

Jimblebar (6)

     85     4,669        15,092        16,333        14,320        13,658        44,311        15,535  

Wheelarra

     85     8,006        614        114        30        10        154        24,544  

Samarco

     50     —          —          —          —          —          —          —    
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       57,691        63,586        61,391        57,835        56,117        175,343        174,835  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     7,983        9,220        7,744        7,694        7,608        23,046        23,673  

BHP Mitsui Coal (8)

     80     2,396        2,789        2,614        2,578        2,269        7,461        6,958  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,379        12,009        10,358        10,272        9,877        30,507        30,631  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

Australia

     100     3,662        6,261        3,982        4,311        4,552        12,845        12,280  

Colombia

     33.3     2,444        2,762        2,658        2,356        2,199        7,213        7,855  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       6,106        9,023        6,640        6,667        6,751        20,058        20,135  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West (9)

     100     21.1        25.6        21.4        18.1        19.2        58.7        67.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       21.1        25.6        21.4        18.1        19.2        58.7        67.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt

                      

Saleable production (t)

                      

Nickel West

     100     240        277        249        154        194        597        783  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       240        277        249        154        194        597        783  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

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

(2)

Metal production is reported on the basis of payable metal.

(3)

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

(4)

Includes Cerro Colorado and Spence.

(5)

Iron ore production is reported on a wet tonnes basis.

(6)

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

(7)

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

(8)

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

(9)

Production restated to include other nickel by-products.

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

 

 

BHP Operational Review for the nine months ended 31 March 2019    10


Production and sales report

           Quarter ended      Year to date  
           Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Petroleum - Conventional (1)

                      

Bass Strait

                      

Crude oil and condensate

     (Mboe)       1,126        1,361        1,653        1,401        893        3,947        4,454  

NGL

     (Mboe)       1,170        1,428        1,840        1,447        849        4,136        4,704  

Natural gas

     (bcf)       20.5        29.9        35.1        25.2        21.0        81.3        96.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       5.7        7.8        9.3        7.0        5.2        21.6        25.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

North West Shelf

                      

Crude oil and condensate

     (Mboe)       1,377        1,267        1,514        1,520        1,431        4,465        4,293  

NGL

     (Mboe)       210        186        242        206        193        641        637  

Natural gas

     (bcf)       35.8        34.2        36.6        37.5        36.6        110.7        108.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       7.6        7.2        7.9        8.0        7.7        23.6        23.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pyrenees

                      

Crude oil and condensate

     (Mboe)       1,250        1,168        282        1,101        940        2,323        3,970  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       1.3        1.2        0.3        1.1        0.9        2.3        4.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Australia (2)

                      

Crude oil and condensate

     (Mboe)       8        7        7        8        6        21        25  

Natural gas

     (bcf)       13.4        13.9        13.8        13.9        13.0        40.7        42.8  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       2.2        2.3        2.3        2.3        2.2        6.8        7.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Atlantis (3)

                      

Crude oil and condensate

     (Mboe)       3,459        3,471        3,190        3,802        3,888        10,880        9,858  

NGL

     (Mboe)       248        217        215        268        275        758        661  

Natural gas

     (bcf)       1.8        1.5        1.5        1.9        2.0        5.4        5.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       4.0        3.9        3.7        4.4        4.5        12.5        11.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mad Dog (3)

                      

Crude oil and condensate

     (Mboe)       1,140        581        1,270        1,158        1,258        3,686        3,391  

NGL

     (Mboe)       55        27        61        54        58        173        171  

Natural gas

     (bcf)       0.2        0.1        0.2        0.2        0.2        0.6        0.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       1.2        0.6        1.4        1.2        1.3        4.0        3.6  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Shenzi (3)

                      

Crude oil and condensate

     (Mboe)       2,323        2,110        2,016        2,024        1,881        5,921        7,127  

NGL

     (Mboe)       140        151        122        121        112        355        465  

Natural gas

     (bcf)       0.4        0.4        0.4        0.4        0.4        1.2        1.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       2.5        2.3        2.2        2.2        2.1        6.5        7.8  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Trinidad/Tobago

                      

Crude oil and condensate

     (Mboe)       232        233        447        200        284        931        485  

Natural gas

     (bcf)       10.0        9.8        24.0        14.0        19.5        57.5        30.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       1.9        1.9        4.4        2.5        3.5        10.5        5.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Americas (3) (4)

                      

Crude oil and condensate

     (Mboe)       189        313        207        218        284        709        625  

NGL

     (Mboe)       3        22        3        4        18        25        11  

Natural gas

     (bcf)       —          0.3        —          0.1        0.2        0.3        0.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       0.2        0.4        0.2        0.2        0.3        0.8        0.7  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

UK (5)

                      

Crude oil and condensate

     (Mboe)       43        38        36        36        —          72        105  

NGL

     (Mboe)       18        18        21        21        —          42        70  

Natural gas

     (bcf)       0.8        0.6        0.7        0.7        —          1.4        1.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       0.2        0.2        0.2        0.2        —          0.3        0.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Algeria

                      

Crude oil and condensate

     (Mboe)       969        888        961        908        866        2,735        2,867  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

     (MMboe)       1.0        0.9        1.0        0.9        0.9        2.7        2.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2019    11


Production and sales report

           Quarter ended      Year to date  
           Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Petroleum - Total (1)

                      

Conventional

                      

Crude oil and condensate

     (Mboe)       12,116        11,437        11,583        12,376        11,731        35,690        37,200  

NGL

     (Mboe)       1,844        2,049        2,504        2,121        1,505        6,130        6,719  

Natural gas

     (bcf)       82.9        90.7        112.3        93.9        92.9        299.1        286.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (Mboe)       27,777        28,603        32,804        30,147        28,719        91,670        91,636  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

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

(2)

Other Australia includes Minerva and Macedon.

(3)

Gulf of Mexico volumes are net of royalties.

(4)

Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

(5)

BHP completed the sale of its interest in the Bruce and Keith oil and gas fields on 30 November 2018. The sale has an effective date of 1 January 2018.

 

 

BHP Operational Review for the nine months ended 31 March 2019    12


Production and sales report

          Quarter ended      Year to date  
          Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Copper

                       

Metals production is payable metal unless otherwise stated.

 

Escondida, Chile (1)

                       

Material mined

   (kt)      103,385        106,788        107,260        105,580        103,936        316,776        309,623  

Sulphide ore milled

   (kt)      32,203        31,732        30,513        30,507        32,027        93,047        86,543  

Average concentrator head grade

   (%)      0.96      0.96      0.94      0.87      0.82      0.88      0.99

Production ex mill

   (kt)      252.6        253.6        241.9        219.9        216.9        678.7        702.5  

Production

                       

Payable copper

   (kt)      244.9        246.1        240.0        212.6        205.4        658.0        679.7  

Copper cathode (EW)

   (kt)      69.4        70.1        55.4        71.9        62.4        189.7        217.4  

- Oxide leach

   (kt)      24.5        27.1        19.5        23.4        20.9        63.8        74.3  

- Sulphide leach

   (kt)      44.9        43.0        35.8        48.5        41.5        125.8        143.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper

   (kt)      314.3        316.2        295.4        284.5        267.8        847.7        897.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Payable gold concentrate

   (troy oz)      59,953        68,345        63,578        73,726        73,998        211,302        160,757  

Payable silver concentrate

   (troy koz)      2,339        2,527        1,997        2,570        2,189        6,756        6,269  

Sales

                       

Payable copper

   (kt)      228.3        260.3        216.5        229.2        212.0        657.7        660.1  

Copper cathode (EW)

   (kt)      61.7        80.9        53.2        72.3        56.6        182.1        207.4  

Payable gold concentrate

   (troy oz)      59,953        68,345        63,578        73,726        73,999        211,303        160,757  

Payable silver concentrate

   (troy koz)      2,339        2,527        1,997        2,570        2,189        6,756        6,269  

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

    

Pampa Norte, Chile

                       

Cerro Colorado

                       

Material mined

   (kt)      17,766        17,918        18,488        19,875        15,561        53,924        59,338  

Ore milled

   (kt)      4,905        4,833        4,802        5,069        4,277        14,148        13,467  

Average copper grade

   (%)      0.58      0.58      0.53      0.62      0.63      0.59      0.60

Production

                       

Copper cathode (EW)

   (kt)      13.6        19.0        14.2        19.4        18.2        51.8        44.3  

Sales

                       

Copper cathode (EW)

   (kt)      13.7        20.9        13.8        19.0        15.5        48.3        43.7  

Spence

                       

Material mined

   (kt)      21,463        23,103        23,007        21,661        18,632        63,300        66,873  

Ore milled

   (kt)      5,144        4,009        5,642        5,428        4,376        15,446        15,438  

Average copper grade

   (%)      1.03      1.11      1.21      1.10      1.03      1.12      1.14

Production

                       

Copper cathode (EW)

   (kt)      53.2        51.6        29.2        42.4        49.0        120.6        148.9  

Sales

                       

Copper cathode (EW)

   (kt)      49.8        57.1        29.7        39.1        46.1        114.9        145.0  

 

 

BHP Operational Review for the nine months ended 31 March 2019    13


Production and sales report

                       
          Quarter ended      Year to date  
          Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Copper (continued)

                       

Metals production is payable metal unless otherwise stated.

 

Antamina, Peru

                       

Material mined (100%)

   (kt)      58,085        59,002        62,470        62,850        57,900        183,220        176,426  

Sulphide ore milled (100%)

   (kt)      12,166        12,973        13,197        12,912        11,466        37,575        38,086  

Average head grades

                       

- Copper

   (%)      1.01      0.91      0.96      1.02      1.04      1.01      0.95

- Zinc

   (%)      1.01      1.19      1.10      0.85      0.87      0.94      0.98

Production

                       

Payable copper

   (kt)      35.2        34.6        37.0        38.3        34.5        109.8        104.9  

Payable zinc

   (t)      25,562        35,983        30,558        24,237        20,848        75,643        83,817  

Payable silver

   (troy koz)      1,189        1,321        1,309        1,178        1,062        3,549        4,116  

Payable lead

   (t)      464        546        563        600        456        1,619        2,888  

Payable molybdenum

   (t)      420        261        464        417        82        963        1,401  

Sales

                       

Payable copper

   (kt)      32.1        36.6        33.6        40.7        33.3        107.6        101.0  

Payable zinc

   (t)      26,456        33,088        31,822        26,072        20,595        78,489        82,020  

Payable silver

   (troy koz)      1,052        1,311        1,193        1,236        1,027        3,456        3,997  

Payable lead

   (t)      859        595        612        649        749        2,010        3,455  

Payable molybdenum

   (t)      500        388        208        535        256        999        1,361  

Olympic Dam, Australia

                       

Material mined (1)

   (kt)      2,056        2,201        2,044        2,434        2,191        6,669        5,298  

Ore milled

   (kt)      2,188        2,171        1,242        2,157        2,371        5,770        5,044  

Average copper grade

   (%)      2.36      2.12      2.05      2.10      2.22      2.14      2.23

Average uranium grade

   (kg/t)      0.71        0.69        0.62        0.62        0.65        0.63        0.62  

Production

                       

Copper cathode (ER and EW)

   (kt)      40.5        42.0        33.3        31.6        50.2        115.1        94.7  

Payable uranium

   (t)      1,118        1,123        555        929        1,106        2,590        2,241  

Refined gold

   (troy oz)      28,989        33,497        23,471        17,856        28,609        69,936        58,059  

Refined silver

   (troy koz)      248        278        213        212        230        655        514  

Sales

                       

Copper cathode (ER and EW)

   (kt)      36.8        46.0        33.9        26.6        47.4        107.9        92.7  

Payable uranium

   (t)      509        1,230        765        828        375        1,968        1,527  

Refined gold

   (troy oz)      20,715        35,714        21,145        17,812        27,574        66,531        61,149  

Refined silver

   (troy koz)      202        307        216        177        241        634        539  

 

(1)

Material mined refers to run of mine ore mined and hoisted.

 

 

BHP Operational Review for the nine months ended 31 March 2019    14


Production and sales report

          Quarter ended      Year to date  
          Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Iron Ore

                       

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

                       

Pilbara, Australia

                       

Production

                       

Newman

   (kt)      16,412        18,500        16,378        17,578        15,608        49,564        48,571  

Area C Joint Venture

   (kt)      12,802        12,041        11,696        10,280        11,627        33,603        39,476  

Yandi Joint Venture

   (kt)      15,802        17,339        16,870        15,627        15,214        47,711        46,709  

Jimblebar (1)

   (kt)      4,669        15,092        16,333        14,320        13,658        44,311        15,535  

Wheelarra

   (kt)      8,006        614        114        30        10        154        24,544  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

   (kt)      57,691        63,586        61,391        57,835        56,117        175,343        174,835  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

   (kt)      67,048        72,145        69,342        65,515        63,609        198,466        202,946  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Lump

   (kt)      13,993        15,173        15,014        14,020        13,603        42,637        43,034  

Fines

   (kt)      44,332        47,730        46,527        44,059        41,981        132,567        130,834  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      58,325        62,903        61,541        58,079        55,584        175,204        173,868  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

   (kt)      67,799        71,385        69,421        65,758        62,853        198,032        201,854  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

    

Samarco, Brazil (1)

                       

Production

   (kt)      —          —          —          —          —          —          —    

Sales

   (kt)      25        —          —          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.

 

 

BHP Operational Review for the nine months ended 31 March 2019    15


Production and sales report

          Quarter ended      Year to date  
          Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Coal

                       

Coal production is reported on the basis of saleable product.

 

Queensland Coal

                       

Production (1)

                       

BMA

                       

Blackwater

   (kt)      1,384        1,849        1,704        1,680        1,484        4,868        4,839  

Goonyella

   (kt)      2,314        2,639        1,989        1,813        2,141        5,943        5,322  

Peak Downs

   (kt)      1,723        1,658        1,131        1,685        1,468        4,284        4,692  

Saraji

   (kt)      1,240        1,201        1,111        1,288        1,250        3,649        3,852  

Daunia

   (kt)      547        629        620        419        470        1,509        1,927  

Caval Ridge

   (kt)      775        1,244        1,189        809        795        2,793        3,041  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

   (kt)      7,983        9,220        7,744        7,694        7,608        23,046        23,673  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA (100%)

   (kt)      15,966        18,440        15,488        15,388        15,216        46,092        47,346  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Mitsui Coal (2)

                       

South Walker Creek

   (kt)      1,490        1,615        1,505        1,636        1,429        4,570        4,414  

Poitrel

   (kt)      906        1,174        1,109        942        840        2,891        2,544  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Mitsui Coal

   (kt)      2,396        2,789        2,614        2,578        2,269        7,461        6,958  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

   (kt)      10,379        12,009        10,358        10,272        9,877        30,507        30,631  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal (100%)

   (kt)      18,362        21,229        18,102        17,966        17,485        53,553        54,304  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Coking coal

   (kt)      7,177        8,489        7,356        7,514        7,221        22,091        21,452  

Weak coking coal

   (kt)      2,598        2,866        2,813        3,058        3,282        9,153        8,564  

Thermal coal

   (kt)      168        85        141        157        379        677        443  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      9,943        11,440        10,310        10,729        10,882        31,921        30,459  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total (100%)

   (kt)      17,658        20,162        18,102        18,818        19,176        56,096        53,921  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(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)      3,662        6,261        3,982        4,311        4,552        12,845        12,280  

Sales

                       

Export thermal coal

   (kt)      3,181        5,795        3,549        4,809        3,529        11,887        10,851  

Inland thermal coal

   (kt)      400        160        332        393        302        1,027        1,216  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      3,581        5,955        3,881        5,202        3,831        12,914        12,067  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                       

Production

   (kt)      2,444        2,762        2,658        2,356        2,199        7,213        7,855  

Sales thermal coal - export

   (kt)      2,480        2,763        2,589        2,297        2,200        7,086        7,617  

 

 

BHP Operational Review for the nine months ended 31 March 2019    16


Production and sales report  
          Quarter ended      Year to date  
          Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 
Other                                                      

Nickel production is reported on the basis of saleable product

 

Nickel West, Australia

                       

Mt Keith

                       

Nickel concentrate

   (kt)      44.9        55.6        50.2        44.9        52.5        147.6        149.1  

Average nickel grade

   (%)      21.3        18.8        18.9        19.8        19.2        57.9        62.1  

Leinster

                       

Nickel concentrate

   (kt)      54.7        78.4        78.8        65.3        51.8        195.9        221.0  

Average nickel grade

   (%)      9.3        9.8        8.4        8.4        9.3        26.1        27.4  

Saleable production

                       

Refined nickel (1) (2)

   (kt)      19.2        18.5        19.8        16.3        17.6        53.7        52.9  

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

   (kt)      1.9        7.1        1.6        1.8        1.6        5.0        14.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel (1)

   (kt)      21.1        25.6        21.4        18.1        19.2        58.7        67.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt by-products

   (t)      240        277        249        154        194        597        783  

Sales

                       —          —    

Refined nickel (1) (2)

   (kt)      19.5        17.5        19.3        17.3        17.9        54.5        53.5  

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

   (kt)      2.5        6.3        2.2        2.1        0.1        4.4        14.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel (1)

   (kt)      21.9        23.8        21.5        19.4        18.0        58.9        67.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt by-products

   (t)      240        277        249        154        194        597        783  

 

(1)

Production and sales restated to include other nickel by-products.

(2)

High quality refined nickel metal, including briquettes and powder.

(3)

Nickel contained in matte and by-product streams.

 

 

BHP Operational Review for the nine months ended 31 March 2019    17


Production and sales report  
          Quarter ended      Year to date  
          Mar
2018
     Jun
2018
     Sep
2018
     Dec
2018
     Mar
2019
     Mar
2019
     Mar
2018
 

Onshore US - Discontinued operations (1)(2)

                       

Eagle Ford (3)

                       

Crude oil and condensate

   (Mboe)      2,838        3,826        3,256        1,035        —          4,291        10,015  

NGL

   (Mboe)      1,555        1,767        1,919        614        —          2,533        5,511  

Natural gas

   (bcf)      12.6        13.9        13.8        4.3        —          18.1        40.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      6.5        7.9        7.5        2.4        —          9.8        22.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Permian (3)

                       

Crude oil and condensate

   (Mboe)      1,398        1,903        1,478        631        —          2,109        3,719  

NGL

   (Mboe)      465        770        687        284        —          971        1,512  

Natural gas

   (bcf)      4.1        6.4        4.8        1.9        —          6.7        12.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.5        3.7        3.0        1.2        —          4.2        7.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Haynesville (3)

                       

Crude oil and condensate

   (Mboe)      —          —          11        —          —          11        1  

NGL

   (Mboe)      —          —          —          —          —          —          —    

Natural gas

   (bcf)      28.7        33.1        39.0        13.9        —          52.9        72.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      4.8        5.5        6.5        2.3        —          8.8        12.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fayetteville (4)

                       

Natural gas

   (bcf)      18.7        19.1        18.6        —          —          18.6        60.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.1        3.2        3.1        —          —          3.1        10.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Onshore US

                       

Crude oil and condensate

   (Mboe)      4,236        5,729        4,745        1,666        —          6,411        13,735  

NGL

   (Mboe)      2,020        2,537        2,606        898        —          3,504        7,023  

Natural gas

   (bcf)      64.1        72.5        76.2        20.1        —          96.3        186.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      16,939        20,349        20,051        5,914        —          25,965        51,758  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

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

(2)

Volumes are net of mineral holder royalties.

(3)

BHP completed the sale of its interests in the Eagle Ford, Haynesville and Permian assets on 31 October 2018.

(4)

BHP completed the sale of its Fayetteville assets on 28 September 2018.

 

 

BHP Operational Review for the nine months ended 31 March 2019    18


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

      BHP Group Limited and BHP Group Plc
Date: April 17, 2019     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary