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): ☐
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 |
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 mines 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 Spences 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$201 million in funding was approved to further derisk the project, focussing on the mines scope of work, advancing other engineering and procurement activities, and preparation works for underground infrastructure. This will enable an efficient transition of the project team between the study and execution phase, should the project be approved. The release of funding to the project will be staged over this period.
Potash project | ||||||||
Project and ownership |
Investment US$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 BHPs 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 |
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Petroleum (1) |
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Petroleum |
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Conventional |
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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 | |||||||||||||||||||||||||
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Total (Mboe) |
32,804 | 30,147 | 28,719 | 29,666 | 29,240 | 29,240 | 32,804 | |||||||||||||||||||||||||
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Copper (2) |
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Copper |
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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 | |||||||||||||||||||||||
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Total |
277.0 | 250.9 | 239.9 | 261.5 | 274.6 | 274.6 | 277.0 | |||||||||||||||||||||||||
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Cathode (kt) |
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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 | |||||||||||||||||||||||
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Total |
132.1 | 165.3 | 179.8 | 182.8 | 154.9 | 154.9 | 132.1 | |||||||||||||||||||||||||
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Total copper (kt) |
409.1 | 416.2 | 419.7 | 444.3 | 429.5 | 429.5 | 409.1 | |||||||||||||||||||||||||
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Lead |
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Payable metal in concentrate (t) |
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Antamina |
33.8 | % | 563 | 600 | 456 | 770 | 405 | 405 | 563 | |||||||||||||||||||||||
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Total |
563 | 600 | 456 | 770 | 405 | 405 | 563 | |||||||||||||||||||||||||
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Zinc |
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Payable metal in concentrate (t) |
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Antamina |
33.8 | % | 30,558 | 24,237 | 20,848 | 22,469 | 20,454 | 20,454 | 30,558 | |||||||||||||||||||||||
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Total |
30,558 | 24,237 | 20,848 | 22,469 | 20,454 | 20,454 | 30,558 | |||||||||||||||||||||||||
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|
|
|
|||||||||||||||||||
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 BHPs 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
BHPs 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 |
Figure 1: Location map of the project within EL 5941 over public domain gravity map.
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 |
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 |