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

October 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):  ☐

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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 October 2019

Release Number

   18/19

BHP OPERATIONAL REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2019

 

 

Group copper equivalent production decreased by 3% in the September 2019 quarter largely due to planned maintenance across a number of operations and natural field decline in Petroleum. Volumes for the 2020 financial year are expected to be slightly higher than last year.

 

 

All production and unit cost guidance (based on exchange rates of AUD/USD 0.70 and USD/CLP 683) remains unchanged for the 2020 financial year.

 

 

All major projects under development are tracking to plan, with the Ruby oil and gas development in Trinidad and Tobago approved during the September 2019 quarter.

 

 

In Petroleum, the Trion 3-DEL appraisal well in Mexico encountered oil in the reservoirs up dip from all previous well intersections. Phase 4 of our deepwater drilling campaign in Trinidad and Tobago was completed, evaluation and development planning studies of the discoveries are ongoing.

 

 

Further high-grade mineralised intercepts of copper, with associated gold, uranium and silver, were confirmed during the second phase of the drilling program at Oak Dam in South Australia. The next drilling phase is expected to commence in November 2019.

 

Production

   Sep YTD19
(vs Sep YTD18)
    Sep Q19
(vs Jun Q19)
   

Sep Q19 commentary

Petroleum (MMboe)

     29 (11 %)      29 (1 %)    Impact of Tropical Storm Barry in the Gulf of Mexico and planned maintenance at North West Shelf, partially offset by higher seasonal demand and less maintenance activity at Bass Strait.

Copper (kt)

     430 5     430 (3 %)    Record concentrator throughput at Escondida offset by planned maintenance related to the refinery crane replacement at Olympic Dam.

Iron ore (Mt)

     61 (1 %)      61 (3 %)    Volumes at Western Australia Iron Ore (WAIO) lower due to the significant planned maintenance at Port Hedland.

Metallurgical coal (Mt)

     9 (10 %)      9 (21 %)    Lower volumes reflected significant planned wash plant maintenance activities.

Energy coal (Mt)

     6 (15 %)      6 (24 %)    Volumes impacted by higher strip ratios and a change in strategy to focus on higher quality products at New South Wales Energy Coal (NSWEC), and the impact of adverse weather at Cerrejón.

Nickel (kt)

     22 1     22 (25 %)    Volumes reflected the impact of planned maintenance and transition to new ore bodies.

BHP Chief Executive Officer, Andrew Mackenzie, said: “We delivered a solid start to the 2020 financial year through ongoing strong operational performance across our portfolio. While Group production for the quarter decreased slightly due to the expected impacts of planned maintenance and natural field decline in Petroleum, guidance remains unchanged and we are on track to deliver slightly higher volumes than last financial year. The South Flank iron ore project is 50 per cent complete, with all our major projects on schedule and budget. We achieved further encouraging exploration results in Petroleum and at the Oak Dam copper prospect.”

 

 

BHP Operational Review for the quarter ended 30 September 2019    1


Summary

Operational performance

Production and guidance are summarised below.

 

Production

   Sep
Q19
     Sep Q19
vs
Sep Q18
    Sep Q19
vs
Jun Q19
   

FY20

guidance

Petroleum (MMboe)

     29        (11 %)      (1 %)    110 - 116

Copper (kt)

     430        5     (3 %)    1,705 - 1,820

Escondida (kt)

     293        (1 %)      2   1,160 - 1,230

Other copper(i) (kt)

     137        20     (13 %)    545 - 590

Iron ore (Mt)

     61        (1 %)      (3 %)    242 - 253

WAIO (100% basis) (Mt)

     69        0     (3 %)    273 - 286

Metallurgical coal (Mt)

     9        (10 %)      (21 %)    41 - 45

Queensland Coal (100% basis) (Mt)

     16        (10 %)      (22 %)    73 - 79

Energy coal (Mt)

     6        (15 %)      (24 %)    24 - 26

NSWEC (Mt)

     4        (10 %)      (34 %)    15 - 17

Cerrejón (Mt)

     2        (23 %)      2   ~9

Nickel (kt)

     22        1     (25 %)    ~87

 

(i)

Other copper comprises Pampa Norte, Olympic Dam and Antamina.

Major development projects

During the September 2019 quarter, the BHP Board approved an investment of US$283 million (BHP share) for the development of the Ruby oil and gas project in Trinidad and Tobago.

At the end of the September 2019 quarter, 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.

The Jansen Stage 1 potash project in Canada will be presented to the Board for final investment decision by February 2021. In order to make a final investment decision, work on engineering to support project planning and on finalising the port solution is required, and the Board has approved US$144 million for these activities. An additional US$201 million in funding was approved to further derisk the project, focussing on the mine’s scope of work, advancing other engineering and procurement activities, and preparation works for underground infrastructure. This will enable an efficient transition of the project team between the study and execution phase, should the project be approved. The release of funding to the project will be staged over this period.

Corporate update

As outlined in our 2019 financial year results announcement, we expect a US$3.8 billion increase in net debt over the 2020 financial year from the application of IFRS 16 ‘Leases’, new leases commencing in the year and a change in our definition of net debt to include fair value of derivatives related to net debt.

Susan Kilsby has been appointed as the Chairman of the Remuneration Committee and John Mogford has been appointed as the Chairman of the Sustainability Committee, both with effect from the conclusion of the BHP Group Limited Annual General Meeting on 7 November 2019. Susan has been a Non-executive Director of BHP since April 2019 and John has been a Non-executive Director of BHP since October 2017.

 

 

BHP Operational Review for the quarter ended 30 September 2019    2


Petroleum

Production

 

     Sep Q19      Sep Q19
vs

Sep Q18
    Sep Q19
vs

Jun Q19
 

Crude oil, condensate and natural gas liquids (MMboe)

     13        (11 %)      (6 %) 

Natural gas (bcf)

     100        (11 %)      3

Total petroleum production (MMboe)

     29        (11 %)      (1 %) 

Petroleum – Total petroleum production decreased by 11 per cent to 29 MMboe. Guidance for the 2020 financial year remains unchanged at between 110 and 116 MMboe.

Crude oil, condensate and natural gas liquids production declined by 11 per cent to 13 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 during the same period last year.

Natural gas production decreased by 11 per cent to 100 bcf, reflecting a decrease in tax barrels at Trinidad and Tobago in accordance with the terms of our Production Sharing Contract, planned maintenance at North West Shelf and natural field decline across the portfolio.

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 17% 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.    Project approved on 7 August 2019. The overall project is 6% 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 58% complete.

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

On 3 September 2019, the Minerva gas field reached end-of-field life and production ceased at the Minerva Gas Plant. As announced in the June 2018 quarter, BHP agreed to sell its 90 per cent interest in the Minerva Gas Plant to the Casino Henry Joint Venture after the cessation of gas processing from the Minerva gas field. The sale is subject to customary closing conditions and is expected to close during the December 2019 quarter.

 

 

BHP Operational Review for the quarter ended 30 September 2019    3


Petroleum exploration

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

 

Well

   Location    Target    Formation
age
  

BHP equity

  

Spud date

  

Water depth

  

Total well

depth

  

Status

Trion-3DEL    Mexico Block
AE-0093
   Oil    Eocene    60%
(BHP Operator)
   9 July 2019    2,596 m    4,615 m    Hydrocarbons encountered; Plugged and abandoned
Boom-1    Trinidad & Tobago
Block 14
   Gas    Late Miocene    70%
(BHP Operator)
   28 August 2019    2,207 m    5,035 m    Hydrocarbons encountered; Plugged and abandoned
Carnival-1    Trinidad & Tobago
Block 14
   Gas    Late Miocene    70%
(BHP Operator)
   30 September 2019    2,119 m    2,391m(1)    Drilling ahead(1)

In Mexico, we spud the Trion 3-DEL appraisal well on 9 July 2019. We are encouraged by the preliminary results, with the well encountering oil in the reservoirs up dip from all previous well intersections. Evaluation and analysis is ongoing. No further appraisal wells are anticipated.

In Trinidad and Tobago, we drilled two additional exploration wells in our Northern licences as a part of Phase 4 of our deepwater drilling campaign. The Boom-1 well was spud on 28 August 2019 and encountered hydrocarbons. Evaluation and analysis is ongoing. The Carnival-1 well was spud on 30 September 2019 and reached total depth after the end of the September 2019 quarter. The well was a dry hole. This completed the exploration program on our Trinidad and Tobago Northern licences. Evaluation and development planning studies of the discoveries in the North are ongoing. Following Carnival-1, the Deepwater Invictus rig will return to the US Gulf of Mexico to complete regulatory abandonment work on Shenzi appraisal and exploration boreholes.

In the US Gulf of Mexico, in August 2019, we were the apparent high bidder on blocks GC124 and GC168 in the central Gulf of Mexico, building on our Green Canyon position. Additionally, we were the apparent high bidder on 18 additional blocks(2), which would expand our position in the western Gulf of Mexico.

In Australia, the National Offshore Petroleum Titles Administrator approved the surrender of the WA-255-P exploration permit, following our technical assessment of remaining potential.

Petroleum exploration expenditure for the September 2019 quarter was US$162 million, of which US$69 million was expensed. A US$0.7 billion exploration and appraisal program is being executed for the 2020 financial year.

 

 

BHP Operational Review for the quarter ended 30 September 2019    4


Copper

Production

 

     Sep Q19      Sep Q19
vs

Sep Q18
    Sep Q19
vs

Jun Q19
 

Copper (kt)

     430        5     (3 %) 

Zinc (t)

     20,454        (33 %)      (9 %) 

Uranium (t)

     937        69     (4 %) 

Copper – Total copper production increased by five per cent to 430 kt. Guidance for the 2020 financial year remains unchanged at between 1,705 and 1,820 kt.

Escondida copper production decreased by one per cent to 293 kt, with record concentrator throughput of 369 ktpd in the quarter offsetting expected grade decline. Ongoing improvements in maintenance implemented as part of our Transformation agenda contributed to the higher throughput, with the rate increasing to 377 ktpd in September 2019. Guidance for the 2020 financial year remains unchanged at between 1,160 and 1,230 kt, underpinned by an expected uplift in concentrator throughput performance versus the prior year, partly offset by an approximately five per cent reduction in copper grade of concentrator feed.

Pampa Norte copper production increased by 47 per cent to 64 kt, reflecting the impact of a fire at the electro-winning plant at Spence in the September 2018 quarter. 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 five per cent to 35 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 preparatory work is the most significant part of the project, with the physical replacement and commissioning of the refinery crane scheduled for the March 2020 quarter. Underground operations, the mill and the smelter performed to plan, enabling the build of anode stocks for processing through the refinery in the subsequent three quarters. Guidance for the 2020 financial year remains unchanged at between 180 and 205 kt.

Antamina copper production increased by two per cent to 38 kt and zinc production decreased by 33 per cent to 20 kt, reflecting higher copper head grades and lower zinc head grades. 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 74% complete.

 

 

BHP Operational Review for the quarter ended 30 September 2019    5


Iron Ore

Production

 

     Sep Q19      Sep Q19
vs

Sep Q18
    Sep Q19
vs

Jun Q19
 

Iron ore production (kt)

     61,005        (1 %)      (3 %) 

Iron ore – Total iron ore production decreased by one per cent to 61 Mt (69 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).

At WAIO, lower volumes reflected significant planned maintenance at Port Hedland, including a major car dumper maintenance program, to further improve port reliability and provide a stable base for our tightly coupled supply chain. Major planned car dumper maintenance was completed on 16 October 2019, while the port maintenance program continues through the 2020 financial year. Mine operations continued to deliver consistent performance during the 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.

In September 2019, BHP divested its 45.5 per cent interest in the Nimba iron ore project in Guinea to High Power Exploration Inc. (HPX).

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 50% complete.

Coal

 

Production        
     Sep Q19      Sep Q19
vs

Sep Q18
    Sep Q19
vs

Jun Q19
 

Metallurgical coal (kt)

     9,358        (10 %)      (21 %) 

Energy coal (kt)

     5,647        (15 %)      (24 %) 

Metallurgical coal – Metallurgical coal production was down 10 per cent to 9 Mt (16 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 volumes weighted to the last three quarters of the financial year.

At Queensland Coal, production was impacted by the planned major wash plant shutdowns at Goonyella, Peak Downs and Caval Ridge. This was partially offset by increased feed rates at the Peak Downs wash plant following a change in mine sequencing.

Energy coal – Energy coal production decreased by 15 per cent to 6 Mt. Guidance for the 2020 financial year remains unchanged at between 24 and 26 Mt.

New South Wales Energy Coal production decreased by 10 per cent as a result of the change in product strategy to focus on higher quality products. Guidance for the 2020 financial year remains unchanged at between 15 and 17 Mt.

Cerrejón production decreased by 23 per cent due to the impact of adverse weather. Guidance for the 2020 financial year remains unchanged at approximately 9 Mt.

 

 

BHP Operational Review for the quarter ended 30 September 2019    6


Other

 

Nickel production        
     Sep Q19      Sep Q19
vs

Sep Q18
    Sep Q19
vs

Jun Q19
 

Nickel (kt)

     21.6        1     (25 %) 

Nickel – Nickel West production increased by one per cent to 22 kt, reflecting higher volumes at the Kalgoorlie smelter following the fire in September 2018.

Major quadrennial maintenance shutdowns at the Kwinana refinery and the Kalgoorlie smelter are scheduled for 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.

Potash – The Jansen Stage 1 potash project in Canada will be presented to the Board for final investment decision by February 2021. In order to make a final investment decision, work on engineering to support project planning and on finalising the port solution is required, and the Board has approved US$144 million for these activities. An additional US$201 million in funding was approved to further derisk the project, focussing on the mine’s scope of work, advancing other engineering and procurement activities, and preparation works for underground infrastructure. This will enable an efficient transition of the project team between the study and execution phase, should the project be approved. The release of funding to the project will be staged over this period.

 

Potash project         

Project and ownership

   Investment
US$M
    

Scope

  

Progress

Jansen Potash

(Canada)

100%

     2,700      Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.    The project is 84% complete and within the approved budget. Preparation work for final shaft lining is continuing.

Minerals exploration

Minerals exploration expenditure for the September 2019 quarter was US$44 million, of which US$38 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.

At Oak Dam in South Australia, the second phase of the drilling program delivered encouraging results. Further high-grade mineralised intercepts of copper, with associated gold, uranium and silver, were confirmed. Multiple intervals ranging between 0.25 and 5.77 per cent copper were identified by laboratory assay results from 10 diamond drill holes, totalling 12,441 metres. For further details refer to Appendix 1. The exploration project remains at an early stage with large parts of the target still to be drill tested. The next phase of the drilling program is expected to commence in November 2019.

Variance analysis relates to the relative performance of BHP and/or its operations during the September 2019 quarter compared with the September 2018 quarter, 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)

Well depth and status as at 30 September 2019.

(2)

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.

 

 

BHP Operational Review for the quarter ended 30 September 2019    7


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

 

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BHP Operational Review for the quarter ended 30 September 2019    8


Production summary

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

Petroleum (1)

                      

Petroleum

                      

Conventional

                      

Crude oil, condensate and NGL (Mboe)

       14,087        14,497        13,236        13,366        12,507        12,507        14,087  

Natural gas (bcf)

       112.3        93.9        92.9        97.8        100.4        100.4        112.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total (Mboe)

       32,804        30,147        28,719        29,666        29,240        29,240        32,804  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     240.0        212.6        205.4        224.1        237.0        237.0        240.0  

Antamina

     33.8     37.0        38.3        34.5        37.4        37.6        37.6        37.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       277.0        250.9        239.9        261.5        274.6        274.6        277.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     55.4        71.9        62.4        63.5        55.9        55.9        55.4  

Pampa Norte (4)

     100     43.4        61.8        67.2        74.1        63.9        63.9        43.4  

Olympic Dam

     100     33.3        31.6        50.2        45.2        35.1        35.1        33.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       132.1        165.3        179.8        182.8        154.9        154.9        132.1  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper (kt)

       409.1        416.2        419.7        444.3        429.5        429.5        409.1  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     563        600        456        770        405        405        563  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       563        600        456        770        405        405        563  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     30,558        24,237        20,848        22,469        20,454        20,454        30,558  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       30,558        24,237        20,848        22,469        20,454        20,454        30,558  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     63,578        73,726        73,998        74,704        48,801        48,801        63,578  

Olympic Dam (refined gold)

     100     23,471        17,856        28,609        37,032        43,205        43,205        23,471  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       87,049        91,582        102,607        111,736        92,006        92,006        87,049  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     1,997        2,570        2,189        2,074        1,626        1,626        1,997  

Antamina

     33.8     1,309        1,178        1,062        1,209        1,101        1,101        1,309  

Olympic Dam (refined silver)

     100     213        212        230        268        245        245        213  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       3,519        3,960        3,481        3,551        2,972        2,972        3,519  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     555        929        1,106        975        937        937        555  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       555        929        1,106        975        937        937        555  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     464        417        82        178        405        405        464  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       464        417        82        178        405        405        464  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Operational Review for the quarter ended 30 September 2019    9


Production summary

 

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

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     16,378        17,578        15,608        17,058        16,316        16,316        16,378  

Area C Joint Venture

     85     11,696        10,280        11,627        13,837        12,620        12,620        11,696  

Yandi Joint Venture

     85     16,870        15,627        15,214        17,486        17,827        17,827        16,870  

Jimblebar (6)

     85     16,353        14,326        13,658        14,209        14,239        14,239        16,353  

Wheelarra

     85     114        30        10        5        3        3        114  

Samarco

     50     —          —          —          —          —          —          —    
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       61,411        57,841        56,117        62,595        61,005        61,005        61,411  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     7,744        7,694        7,608        9,090        6,905        6,905        7,744  

BHP Mitsui Coal (8)

     80     2,614        2,578        2,269        2,804        2,453        2,453        2,614  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,358        10,272        9,877        11,894        9,358        9,358        10,358  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

Australia

     100     3,982        4,311        4,552        5,412        3,592        3,592        3,982  

Colombia

     33.3     2,658        2,356        2,199        2,017        2,055        2,055        2,658  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       6,640        6,667        6,751        7,429        5,647        5,647        6,640  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West (9)

     100     21.4        18.1        19.2        28.7        21.6        21.6        21.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       21.4        18.1        19.2        28.7        21.6        21.6        21.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt

                      

Saleable production (t)

                      

Nickel West

     100     249        154        194        302        211        211        249  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       249        154        194        302        211        211        249  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

(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 quarter ended 30 September 2019    10


Production and sales report

 

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

Petroleum - Conventional (1)

                     

Bass Strait

                     

Crude oil and condensate

   (Mboe)     1,653        1,401        893        1,246       1,409        1,409        1,653  

NGL

   (Mboe)     1,840        1,447        849        1,299       1,810        1,810        1,840  

Natural gas

   (bcf)     35.1        25.2        21.0        30.6       36.6        36.6        35.1  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     9.3        7.0        5.2        7.6       9.3        9.3        9.3  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

North West Shelf

                     

Crude oil and condensate

   (Mboe)     1,514        1,520        1,431        1,357       1,337        1,337        1,514  

NGL

   (Mboe)     242        206        193        189       202        202        242  

Natural gas

   (bcf)     36.6        37.5        36.6        34.8       32.1        32.1        36.6  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     7.9        8.0        7.7        7.3       6.9        6.9        7.9  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Pyrenees

                     

Crude oil and condensate

   (Mboe)     282        1,101        940        1,001       979        979        282  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.3        1.1        0.9        1.0       1.0        1.0        0.3  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Other Australia (2)

                     

Crude oil and condensate

   (Mboe)     7        8        6        7       8        8        7  

Natural gas

   (bcf)     13.8        13.9        13.0        12.2       12.0        12.0        13.8  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     2.3        2.3        2.2        2.0       2.0        2.0        2.3  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Atlantis (3)

                     

Crude oil and condensate

   (Mboe)     3,190        3,802        3,888        3,607       2,759        2,759        3,190  

NGL

   (Mboe)     215        268        275        248       192        192        215  

Natural gas

   (bcf)     1.5        1.9        2.0        2.2       1.4        1.4        1.5  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     3.7        4.4        4.5        4.2       3.2        3.2        3.7  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Mad Dog (3)

                     

Crude oil and condensate

   (Mboe)     1,270        1,158        1,258        1,246       1,096        1,096        1,270  

NGL

   (Mboe)     61        54        58        23       49        49        61  

Natural gas

   (bcf)     0.2        0.2        0.2        0.2       0.2        0.2        0.2  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     1.4        1.2        1.3        1.3       1.2        1.2        1.4  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Shenzi (3)

                     

Crude oil and condensate

   (Mboe)     2,016        2,024        1,881        1,725       1,345        1,345        2,016  

NGL

   (Mboe)     122        121        112        (2     70        70        122  

Natural gas

   (bcf)     0.4        0.4        0.4        0.4       0.2        0.2        0.4  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     2.2        2.2        2.1        1.8       1.4        1.4        2.2  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Trinidad/Tobago

                     

Crude oil and condensate

   (Mboe)     447        200        284        235       175        175        447  

Natural gas

   (bcf)     24.0        14.0        19.5        17.3       17.9        17.9        24.0  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     4.4        2.5        3.5        3.1       3.2        3.2        4.4  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Other Americas (3) (4)

                     

Crude oil and condensate

   (Mboe)     207        218        284        272       185        185        207  

NGL

   (Mboe)     3        4        18        3       2        2        3  

Natural gas

   (bcf)     —          0.1        0.2        0.1       —          —          —    
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.2        0.2        0.3        0.3       0.2        0.2        0.2  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

UK (5)

                     

Crude oil and condensate

   (Mboe)     36        36        —          —         —          —          36  

NGL

   (Mboe)     21        21        —          —         —          —          21  

Natural gas

   (bcf)     0.7        0.7        —          —         —          —          0.7  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.2        0.2        —          —         —          —          0.2  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Algeria

                     

Crude oil and condensate

   (Mboe)     961        908        866        910       889        889        961  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     1.0        0.9        0.9        0.9       0.9        0.9        1.0  
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

BHP Operational Review for the quarter ended 30 September 2019    11


Production and sales report

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

Petroleum - Total (1)

                      

Conventional

                      

Crude oil and condensate

   (Mboe)     11,583        12,376        11,731        11,606        10,182        10,182        11,583  

NGL

   (Mboe)     2,504        2,121        1,505        1,760        2,325        2,325        2,504  

Natural gas

   (bcf)     112.3        93.9        92.9        97.8        100.4        100.4        112.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     32,804        30,147        28,719        29,666        29,240        29,240        32,804  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 quarter ended 30 September 2019    12


Production and sales report

 

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

Copper

                 

Metals production is payable metal unless otherwise stated.

 

Escondida, Chile (1)

                 

Material mined

   (kt)      107,260       105,580       103,936       100,693       101,026       101,026       107,260  

Sulphide ore milled

   (kt)      30,513       30,507       32,027       32,519       33,956       33,956       30,513  

Average concentrator head grade

   (%)      0.94     0.87     0.82     0.86     0.86     0.86     0.94

Production ex mill

   (kt)      241.9       219.9       216.9       230.9       245.0       245.0       241.9  

Production

                 

Payable copper

   (kt)      240.0       212.6       205.4       224.1       237.0       237.0       240.0  

Copper cathode (EW)

   (kt)      55.4       71.9       62.4       63.5       55.9       55.9       55.4  

- Oxide leach

   (kt)      19.5       23.4       20.9       23.4       21.9       21.9       19.5  

- Sulphide leach

   (kt)      35.8       48.5       41.5       40.1       34.1       34.1       35.8  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total copper

   (kt)      295.4       284.5       267.8       287.6       292.9       292.9       295.4  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payable gold concentrate

   (troy oz)      63,578       73,726       73,998       74,704       48,801       48,801       63,578  

Payable silver concentrate

   (troy koz)      1,997       2,570       2,189       2,074       1,626       1,626       1,997  

Sales

                 

Payable copper

   (kt)      216.5       229.2       212.0       223.4       222.2       222.2       216.5  

Copper cathode (EW)

   (kt)      53.2       72.3       56.6       67.5       52.3       52.3       53.2  

Payable gold concentrate

   (troy oz)      63,578       73,726       73,999       74,704       48,801       48,801       63,578  

Payable silver concentrate

   (troy koz)      1,997       2,570       2,189       2,074       1,626       1,626       1,997  

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

    

Pampa Norte, Chile

                 

Cerro Colorado

                 

Material mined

   (kt)      18,488       19,875       15,561       13,534       15,071       15,071       18,488  

Ore milled

   (kt)      4,802       5,069       4,277       4,740       3,995       3,995       4,802  

Average copper grade

   (%)      0.53     0.62     0.63     0.64     0.54     0.54     0.53

Production

                 

Copper cathode (EW)

   (kt)      14.2       19.4       18.2       23.4       16.4       16.4       14.2  

Sales

                 

Copper cathode (EW)

   (kt)      13.8       19.0       15.5       26.8       14.5       14.5       13.8  

Spence

                 

Material mined

   (kt)      23,007       21,661       18,632       19,213       21,040       21,040       23,007  

Ore milled

   (kt)      5,642       5,428       4,376       5,224       5,635       5,635       5,642  

Average copper grade

   (%)      1.21     1.10     1.03     1.02     0.95     0.95     1.21

Production

                 

Copper cathode (EW)

   (kt)      29.2       42.4       49.0       50.7       47.5       47.5       29.2  

Sales

                 

Copper cathode (EW)

   (kt)      29.7       39.1       46.1       55.0       46.7       46.7       29.7  

 

 

BHP Operational Review for the quarter ended 30 September 2019    13


Production and sales report

 

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

Copper (continued)

                 

Metals production is payable metal unless otherwise stated.

 

Antamina, Peru

                 

Material mined (100%)

   (kt)      62,470       62,850       57,900       58,994       59,299       59,299       62,470  

Sulphide ore milled (100%)

   (kt)      13,197       12,912       11,466       12,864       13,121       13,121       13,197  

Average head grades

                 

- Copper

   (%)      0.96     1.02     1.04     1.02     0.99     0.99     0.96

- Zinc

   (%)      1.10     0.85     0.87     0.86     0.80     0.80     1.10

Production

                 

Payable copper

   (kt)      37.0       38.3       34.5       37.4       37.6       37.6       37.0  

Payable zinc

   (t)      30,558       24,237       20,848       22,469       20,454       20,454       30,558  

Payable silver

   (troy koz)      1,309       1,178       1,062       1,209       1,101       1,101       1,309  

Payable lead

   (t)      563       600       456       770       405       405       563  

Payable molybdenum

   (t)      464       417       82       178       405       405       464  

Sales

                 

Payable copper

   (kt)      33.6       40.7       33.3       36.0       33.1       33.1       33.6  

Payable zinc

   (t)      31,822       26,072       20,595       21,750       20,196       20,196       31,822  

Payable silver

   (troy koz)      1,193       1,236       1,027       937       954       954       1,193  

Payable lead

   (t)      612       649       749       296       844       844       612  

Payable molybdenum

   (t)      208       535       256       127       173       173       208  

Olympic Dam, Australia

                 

Material mined (1)

   (kt)      2,044       2,434       2,191       2,425       2,477       2,477       2,044  

Ore milled

   (kt)      1,242       2,157       2,371       2,195       2,200       2,200       1,242  

Average copper grade

   (%)      2.05     2.10     2.22     2.30     2.31     2.31     2.05

Average uranium grade

   (kg/t)      0.62       0.62       0.65       0.65       0.65       0.65       0.62  

Production

                 

Copper cathode (ER and EW)

   (kt)      33.3       31.6       50.2       45.2       35.1       35.1       33.3  

Payable uranium

   (t)      555       929       1,106       975       937       937       555  

Refined gold

   (troy oz)      23,471       17,856       28,609       37,032       43,205       43,205       23,471  

Refined silver

   (troy koz)      213       212       230       268       245       245       213  

Sales

                 

Copper cathode (ER and EW)

   (kt)      33.9       26.6       47.4       50.5       32.1       32.1       33.9  

Payable uranium

   (t)      765       828       550       1,427       778       778       765  

Refined gold

   (troy oz)      21,145       17,812       27,574       36,133       40,073       40,073       21,145  

Refined silver

   (troy koz)      216       177       241       257       250       250       216  

 

(1)

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

 

 

BHP Operational Review for the quarter ended 30 September 2019    14


Production and sales report

 

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

Iron Ore

                       

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

 

Pilbara, Australia

                       

Production

                       

Newman

   (kt)      16,378        17,578        15,608        17,058        16,316        16,316        16,378  

Area C Joint Venture

   (kt)      11,696        10,280        11,627        13,837        12,620        12,620        11,696  

Yandi Joint Venture

   (kt)      16,870        15,627        15,214        17,486        17,827        17,827        16,870  

Jimblebar (1)

   (kt)      16,353        14,326        13,658        14,209        14,239        14,239        16,353  

Wheelarra

   (kt)      114        30        10        5        3        3        114  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

   (kt)      61,411        57,841        56,117        62,595        61,005        61,005        61,411  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

   (kt)      69,342        65,515        63,609        71,133        69,257        69,257        69,342  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Lump

   (kt)      15,014        14,020        13,603        15,568        14,785        14,785        15,014  

Fines

   (kt)      46,527        44,059        41,981        48,064        45,509        45,509        46,527  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      61,541        58,079        55,584        63,632        60,294        60,294        61,541  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

   (kt)      69,421        65,758        62,853        72,173        68,291        68,291        69,421  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

    

Samarco, Brazil (1)

                       

Production

   (kt)                    —          —          —          —          —    

Sales

   (kt)             10        —                    —          —          —    

 

(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 quarter ended 30 September 2019    15


Production and sales report

 

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

Coal

                       

Coal production is reported on the basis of saleable product.

 

                 

Queensland Coal

                       

Production (1)

                       

BMA

                       

Blackwater

     (kt)        1,704        1,680        1,484        1,735        1,045        1,045        1,704  

Goonyella

     (kt)        1,989        1,813        2,141        2,620        1,489        1,489        1,989  

Peak Downs

     (kt)        1,131        1,685        1,468        1,649        1,423        1,423        1,131  

Saraji

     (kt)        1,111        1,288        1,250        1,243        1,214        1,214        1,111  

Daunia

     (kt)        620        419        470        669        556        556        620  

Caval Ridge

     (kt)        1,189        809        795        1,174        1,178        1,178        1,189  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

     (kt)        7,744        7,694        7,608        9,090        6,905        6,905        7,744  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA (100%)

     (kt)        15,488        15,388        15,216        18,180        13,810        13,810        15,488  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Mitsui Coal (2)

                       

South Walker Creek

     (kt)        1,505        1,636        1,429        1,624        1,378        1,378        1,505  

Poitrel

     (kt)        1,109        942        840        1,180        1,075        1,075        1,109  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Mitsui Coal

     (kt)        2,614        2,578        2,269        2,804        2,453        2,453        2,614  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                       
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

     (kt)        10,358        10,272        9,877        11,894        9,358        9,358        10,358  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal (100%)

     (kt)        18,102        17,966        17,485        20,984        16,263        16,263        18,102  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Coking coal

     (kt)        7,356        7,514        7,221        7,932        7,299        7,299        7,356  

Weak coking coal

     (kt)        2,813        3,058        3,282        2,942        2,466        2,466        2,813  

Thermal coal

     (kt)        141        157        379        350        94        94        141  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt)        10,310        10,729        10,882        11,224        9,859        9,859        10,310  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total (100%)

     (kt)        18,102        18,818        19,176        19,789        17,145        17,145        18,102  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)      3,982        4,311        4,552        5,412        3,592        3,592        3,982  

Sales

                       

Export thermal coal

   (kt)      3,549        4,809        3,529        5,181        3,075        3,075        3,549  

Inland thermal coal

   (kt)      332        393        302        975        567        567        332  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      3,881        5,202        3,831        6,156        3,642        3,642        3,881  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                       

Production

   (kt)      2,658        2,356        2,199        2,017        2,055        2,055        2,658  

Sales thermal coal - export

   (kt)      2,589        2,297        2,200        2,245        2,069        2,069        2,589  

 

 

BHP Operational Review for the quarter ended 30 September 2019    16


Production and sales report

 

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

Other

                      

Nickel production is reported on the basis of saleable product

 

Nickel West, Australia

                      

Mt Keith

                      

Nickel concentrate

   (kt)     50.2        44.9        52.5        52.8        43.7        43.7        50.2  

Average nickel grade

   (%)     18.9        19.8        19.2        19.5        18.3        18.3        18.9  

Leinster

                      

Nickel concentrate

   (kt)     78.8        65.3        51.8        48.3        67.2        67.2        78.8  

Average nickel grade

   (%)     8.4        8.4        9.3        10.8        10.0        10.0        8.4  

Saleable production

                      

Refined nickel (1) (2)

   (kt)     19.8        16.3        17.6        19.9        17.4        17.4        19.8  

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

   (kt)     1.6        1.8        1.6        8.8        4.2        4.2        1.6  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel (1)

   (kt)     21.4        18.1        19.2        28.7        21.6        21.6        21.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt by-products

   (t)     249        154        194        302        211        211        249  

Sales

                      

Refined nickel (1) (2)

   (kt)     19.3        17.3        17.9        19.9        17.0        17.0        19.3  

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

   (kt)     2.2        2.1        0.1        8.4        5.7        5.7        2.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel (1)

   (kt)     21.5        19.4        18.0        28.3        22.7        22.7        21.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt by-products

   (t)     249        154        194        302        212        212        249  

 

(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 quarter ended 30 September 2019    17


Appendix 1

Project status update

Between February and June 2019, a 10 diamond hole follow-up drilling program totalling 12,441 metres was completed at Oak Dam, located 65 kilometres to the south east of BHP’s operations at Olympic Dam in South Australia (Figure 1). Figure 2 describes the location of the new drilling and Figure 3 shows the new drilling on cross sections.    

Laboratory assay results confirm further high-grade mineralised intercepts of copper with associated gold, uranium and silver, as per the table below, with further detail included within this appendix.

 

Hole ID

   From      To      Length(i)
m
     Cu
%
     Au
g/t
     U
ppm
     Ag
g/t
 

AD26

     1247        1452        205        2.04        0.43        441        3.8  

including

     1408        1452        44        5.77        1.20        643        14.0  

AD26W1

     1209        1289        80        2.73        0.44        391        5.3  

including

     1251        1275        24        4.70        0.41        305        9.7  

AD27

     1100        1197        97        1.51        1.04        270        4.0  

AD27W1

     1250        1355        105        1.59        0.85        234        5.3  

AD27W2

     952        1007        55        2.34        0.39        397        5.6  

AD27W3

     1071        1301        230        1.79        0.52        308        6.7  

including

     1071        1113        42        3.06        0.92        266        13.6  

AD28

     1150        1234        84        0.63        0.40        140        2.7  

AD28W1

     1185        1274        89        0.82        0.48        56        3.2  

AD28W2

     810        881        71        2.20        0.28        338        2.7  

AD28W3

     930        1018        88        1.27        0.21        125        4.1  

 

(i)

Not true widths.

Geology and mineralisation

Recent drilling continues to confirm IOCG-style alteration and mineralisation described previously (BHP Copper Exploration Update1 dated 27 November 2018), with a core of barren hematite-quartz breccias approximately central to the gravity anomaly, surrounded by high-grade chalcocite and bornite mineralisation, which grades outwards to more dominant chalcopyrite and pyrite mineralisation towards the contact with the host granite.

Further work

BHP’s Minerals exploration team continues to evaluate the results reported to date to inform a follow up drilling program to begin in November 2019.

 

1 

https://www.bhp.com/media-and-insights/news-releases/2018/11/bhp-copper-exploration-program-update

 

 

BHP Operational Review for the quarter ended 30 September 2019 – Appendix    18


LOGO

Figure 1: Location map of the project within EL 5941 over public domain gravity map.

 

LOGO

Figure 2: Left: Drill hole traces projected to surface and cross section locations displayed on high resolution ground gravity.

                Right: Drill hole collar locations and depths in Geocentric Datum of Australia (GDA 94, zone 53)2.

 

2 

The coordinates of unmineralised historical holes, AD4, 7 and 13 were incorrectly reported in the BHP Copper Exploration Program Update dated 27 November 2018, due to inaccuracies in historic data. Verified locations of historic drill sites are now shown as measured by digital GPS.

 

 

BHP Operational Review for the quarter ended 30 September 2019 – Appendix    19


LOGO

Figure 3: Cross-sections showing simplified geology and down hole Cu assays.

 

 

BHP Operational Review for the quarter ended 30 September 2019 – Appendix    20


Hole ID

   From      To      Length
m
     Cu
%
     Au
g/t
     U
ppm
     Ag
g/t
     SG  

AD26

     1047        1188        141        0.40        0.15        200        1.0        3.49  
     1247        1452        205        2.04        0.43        441        3.8        3.76  
     1247        1396        149        0.83        0.15        381        0.6        3.64  
     1396        1408        12        1.25        0.68        326        1.4        3.62  
     1408        1452        44        5.77        1.20        643        14.0        4.22  
     1593        1597        4        3.33        0.34        102        7.6        3.19  
     1605        1695        90        1.63        0.56        209        2.5        3.10  
     1605        1633        28        2.44        0.71        281        3.6        3.25  
     1633        1695        62        1.24        0.49        174        1.9        3.03  

 

 

AD26W1

     1005        1075        70        1.26        0.05        222        2.3        3.69  
     1005        1025        20        3.35        0.07        350        7.8        3.71  
     1025        1075        50        0.42        0.05        170        0.1        3.68  
     1101        1289        188        1.55        0.25        444        3.0        3.49  
     1101        1209        108        0.59        0.10        490        1.0        3.35  
     1209        1289        80        2.73        0.44        391        5.3        3.68  
     inc. 1251        1275        24        4.70        0.41        305        9.7        3.82  
     1572        1613        41        0.95        0.50        105        2.9        2.99  

 

 

AD27

     1100        1197        97        1.51        1.04        270        4.0        3.18  
     1100        1133        33        0.88        0.42        309        3.0        2.96  
     1133        1158        25        2.25        1.57        289        4.9        3.46  
     1158        1197        39        1.50        1.16        227        4.1        3.20  

 

 

AD27W1

     1250        1355        105        1.59        0.85        234        5.3        3.28  
     1250        1280        30        1.21        0.76        264        7.2        3.25  
     1280        1304        24        2.44        1.42        269        7.7        3.40  
     1304        1355        51        1.38        0.62        198        3.0        3.25  
     1362        1384        22        1.27        0.69        173        4.6        3.27  
     1402        1410        8        1.26        0.43        139        4.9        3.15  

 

 

AD27W2

     952        1374        422        0.80        0.23        233        2.5        3.33  
     952        1007        55        2.34        0.39        397        5.6        3.57  
     inc. 952        974        22        3.36        0.58        488        9.0        3.78  
     inc. 974        1007        33        1.58        0.24        329        3.2        3.43  
     1007        1374        367        0.54        0.20        205        2.0        3.29  

 

 

AD27W3

     1052        1061        9        1.57        1.42        183        8.7        3.70  
     1071        1406        335        1.38        1.29        160        8.2        3.55  
     1071        1301        230        1.79        0.52        308        6.7        3.61  
     inc. 1071        1113        42        3.06        0.92        266        13.6        3.75  
     inc. 1113        1135        22        1.92        0.59        367        9.4        3.37  
     1150        1200        50        2.47        0.81        380        10.3        3.62  
     1200        1301        101        0.98        0.17        284        1.6        3.64  
     1303        1318        15        0.36        0.13        144        1.6        3.47  
     1328        1406        78        0.49        0.20        135        2.0        3.48  

 

 

AD28

     1150        1234        84        0.63        0.40        140        2.7        2.97  

 

 

AD28W1

     1185        1274        89        0.82        0.48        56        3.2        2.97  
     1185        1210        25        1.54        0.66        91        7.6        3.07  
     1210        1265        55        0.32        0.16        40        0.8        3.11  
     1265        1274        9        1.59        1.70        46        4.7        3.66  
     1298        1437        139        0.49        0.37        34        3.2        3.13  

 

 

AD28W2

     810        1110        300        0.83        0.14        686        6.9        3.71  
     810        881        71        2.20        0.28        338        2.7        3.68  
     881        1110        229        0.41        0.10        232        1.4        3.71  
     1132        1329        197        0.36        0.18        238        1.4        3.13  
     1356        1447        91        0.54        0.34        91        2.3        3.03  

 

 

AD28W3

     930        1018        88        1.27        0.21        125        4.1        3.61  
     930        936        6        1.43        0.29        389        7.2        3.32  
     936        948        12        0.25        0.36        901        10.4        3.21  
     948        976        28        2.31        0.18        1461        10.5        3.62  
     976        1018        42        0.82        0.19        462        1.0        3.76  
     1061        1169        108        0.61        0.20        281        0.9        3.46  
     1188        1680        492        0.40        0.22        111        2.1        3.20  

 

 

Table 1: Length and density weighted mineralised intercepts for 2019 drilling reported as apparent (down hole) widths. The complete breakdown of each reported intersection is shown and includes high and low grade intervals to demonstrate grade. Intervals with assays not reported here have <0.2% Cu. Reported mineralised intervals contain no more than 10 consecutive meters of <0.2%Cu.

 

 

BHP Operational Review for the quarter ended 30 September 2019 – Appendix    21


Drilling techniques

 

   

All drilling was diamond drilling from surface.

 

   

Parent holes were collared in HWT to a depth of 6m and continued in PQ until the Tregalona Shale unit in the post mineral cover (between 100m and 150m downhole depth). From the Tregalona Shale, drilling continued in HQ to the depth chosen to begin navigational drilling (dependent on various factors such as cover depth, rock competency and target coordinates). Navigational drilling was completed on the parent hole (and or subsequent wedges) to setup for one wedge off parent AD26 and three wedges off parents AD27 and AD28. Drilling below navigational drilling was in NQ2 to the end of hole.

 

   

Directional surveys using a north seeking gyroscope were completed on each hole inside the NQ2 rods.

Location of data points

 

   

All drill hole collar locations (historic and recent) have been surveyed with Trimble R8s and manually entered into acQuire database.

 

   

All coordinates provided are measured and provided in Geocentric Datum of Australia 1994 (GDA94 Zone 53).

Geological logging

 

   

100% of new drill holes were logged in qualitative detail for the basement rocks.

 

   

The following observations were recorded: lithology composition and texture, alteration minerals and sulphide distribution.

 

   

Structural measurements have been recorded from orientated core measuring alpha and beta angles of structures of interest.

 

   

Core was photographed both wet and dry.

 

   

Qualitative geotechnical logging (rock-quality designation and micro defects) was completed for 2019 drilling (AD26, AD26W1, AD27, AD27W1, AD27W2, AD27W3, AD28, AD28W1, AD28W2 and AD28W3).

Sampling techniques

 

   

Sample recoveries are visually estimated to be >97%.

 

   

Sample recovery is not considered material to reported grades.

 

   

Diamond core was split by core saw, with half the core submitted for assay and the other half stored in trays at Olympic Dam. Samples are submitted as 1m or 2m intervals.

 

   

Specific gravity measurements were taken for all assayed samples.

 

   

6-8 kg samples were submitted to an analytical laboratory for final drying, staged crushing to 2mm, splitting to approximately 3 kg portion, followed by pulverisation to 90% passing 75 micron particle size pulp.

 

   

Duplicate samples were collected at each preparation stage where a reduction in sample mass occurred.

Quality of assay data and laboratory tests

 

   

All samples were submitted to Intertek/Genalysis Laboratory in Adelaide.

 

   

All new drill holes reported here were analysed for Cu, Ag, As, Bi, Co, Zn, Ni, Pb, Al, Ca, Cr, Fe, K, Mg, Mn, Na, P, Sc, Si, Ti, V, Ba, Mo, Sb, Sr, U, Y, Zr, Au, S, Ce, La, using 3-acid digest, total fusion, fire assay and induction furnace digestions followed by ICP-OES/MS or infrared methods.

 

   

Three acid digestion followed by ICP-OES/MS was used to measure Cu, Ag, As, Co, Zn, Ni, Pb.

 

   

Lithium borate fusion followed by ICP-OES/MS was to measure Al, Ca, Bi, Cr, Fe, K, Mg, Mn, Na, P, Sc, Si, Ti, V, Ba, Mo, Sb, Sr, U, Y, Zr.

 

   

Comparative analysis between four and three acid digest methods, for a reduced suite of thirty-three elements, demonstrates that equally accurate and representative geochemistry and characterisation of the mineral system, was possible compared to the four acid digest method and sixty-three element suite, reported previously (BHP Exploration Results Update dated November 27 2018).

 

   

25g fire assay with an ICP-OES finish was used to measure Au.

 

   

Induction furnace combustion followed by infrared analyser was used to measure C and S.

 

   

Quality control samples consisted of duplicates (1:25), analytical blanks (1:50) and certified standards (1:25). QC results reviewed when results are received, all performed within acceptable accuracy and precision limits.

 

 

BHP Operational Review for the quarter ended 30 September 2019 – Appendix    22


Verification of sampling and assaying

 

   

Significant intersections were validated via visual inspection of drill core, followed up by optical microscopy by BHP personnel not involved with the initial geological logging of the drill core. There has been no adjustments to the assay data that is electronically uploaded to the database from the commercial laboratory.

 

   

All drill hole data is managed internally using computerised geological logging, a comprehensive SQL server relational database, and strict validation rules.

 

   

The database has a security model which requires user access to have supervisor approval. The database is backed up regularly by standard backup procedures.

 

   

No twinned holes have been drilled.

Sample security

 

   

A reconciliation is completed between the sampling request and drilling plods to ensure that any lost core is accurately recorded prior to sampling. Sample numbers are automatically generated directly from the database once the sampling request is visually validated against the drill core. Laboratory sample receipts are recorded in the database. The laboratory reconciles samples received against samples requested on the assay request sheet.

Audits or reviews

 

   

The drill hole database is periodically and independently audited. No material issues or risks have been identified.

Orientation of data in relation to geological structure

 

   

Mineralisation at this stage is still not well defined as per the irregular nature in IOCG-type deposits.

 

   

New holes have been angled approximately east-west, from inside the hydrothermal system towards the outside (host rock), with the exception of the northern section (AD26 and AD26W1), drilled from east to west, collaring the host rock drilling towards the hydrothermal system.    

Data aggregation methods

 

   

All intersections are length and density weighted represented in apparent (downhole) widths. True widths of intersections are unknown.

 

   

There is insufficient drilling to provide any mineral inventory estimate (including Exploration Target).

Mineral tenement and land tenure status

 

   

The project is located within the Exploration Licence 5941 (EL5941), 100% owned by BHP.

 

   

EL5941 was successfully renewed in February 2019 within the current five year term, which expires on 21 February 2021, when a subsequent application will be lodged.

 

   

All BHP exploration tenure including EL5941 is in ‘good standing’ with recent historic minimum expenditure met or exceeded.

Exploration done by other parties

 

   

The project has a long exploration history, dating back to 1976 by Western Mining Corporation and BHP.

 

   

All drilling information prior to 2018 has not been through the same quality control and processes described in this release and uncertainties exist in respect to the survey (dip, azimuth).

 

   

Historic drill holes have been re-sampled using the same methodologies and processes as the 2018 drill holes.

‘The information in the report to which this statement is attached that relates to Exploration Results is based on information compiled by Dr Kathy Ehrig, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy (FAusIMM(CP)). Dr Ehrig is a full-time employee of BHP. Dr Ehrig has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ehrig consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.’

 

 

BHP Operational Review for the quarter ended 30 September 2019 – Appendix    23


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: October 17, 2019     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary