UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

April 19, 2018

 

 

 

BHP BILLITON LIMITED

(ABN 49 004 028 077)

  

BHP BILLITON PLC

(REG. NO. 3196209)

(Exact name of Registrant as specified in its charter)    (Exact name of Registrant as specified in its charter)

 

VICTORIA, AUSTRALIA    ENGLAND AND WALES
(Jurisdiction of incorporation or organisation)    (Jurisdiction of incorporation or organisation)

171 COLLINS STREET, MELBOURNE,

VICTORIA 3000 AUSTRALIA

(Address of principal executive offices)

  

NOVA SOUTH, 160 VICTORIA STREET

LONDON, SW1E 5LB

UNITED KINGDOM

(Address of principal executive offices)

  

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

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

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

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

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

 

 

 


NEWS RELEASE   LOGO

 

Release Time    IMMEDIATE
Date    19 April 2018
Release Number    04/18

BHP OPERATIONAL REVIEW

FOR THE NINE MONTHS ENDED 31 MARCH 2018

 

    Full year production guidance remains unchanged for Petroleum, Metallurgical Coal and Energy Coal.

 

    Total Copper production guidance narrowed to between 1,700 and 1,785 kt, however guidance for Olympic Dam reduced to approximately 135 kt following a slower than planned ramp-up after the major smelter maintenance campaign.

 

    Iron Ore production guidance reduced to between 272 and 274 Mt (100% basis) reflecting car dumper reliability issues.

 

    Group copper equivalent production is expected to increase by 6% in the 2018 financial year.

 

    The exit process for Onshore US is progressing to plan, with bids expected by June 2018 and transactions potentially being announced in the first half of the 2019 financial year.

 

    In Petroleum, we have increased our footprint in the northern extension of the Wildling prospect in the US Gulf of Mexico through the acquisition of 33.33% interest in the Samurai prospect. We have also secured an option to purchase an additional 10% interest in the Scarborough development.

 

    All major projects under development are tracking to plan.

 

Production

   Mar
YTD18
     vs Mar
YTD17
   

March quarter commentary

Petroleum (MMboe)

     143        (8 %)    Natural field decline partially offset by improved well performance and positive trial results in Onshore US.

Copper (kt)

     1,290        37   Increased volumes at Escondida supported by the ramp-up of the Los Colorados Extension project.

Iron ore(1) (Mt)

     175        2   Record production at Jimblebar and Mining Area C partially offset by impacts from Cyclone Joyce in January 2018 and unplanned car dumper maintenance.

Metallurgical coal(1) (Mt)

     31        (2 %)    Blackwater operations stabilised and expected to return to full capacity next quarter. Good progress made through the fault zone at Broadmeadow.

Energy coal(1) (Mt)

     20        (4 %)    Unfavourable weather impacts and inventory build at New South Wales Energy Coal, and higher strip ratios at Cerrejón.

BHP Chief Executive Officer, Andrew Mackenzie, said: “BHP remains on track to achieve six per cent volume growth for the 2018 financial year. Strong performance in copper was underpinned by the Los Colorados Extension project at Escondida and higher utilisation rates at Pampa Norte. This more than offset the slower than expected ramp-up of Olympic Dam during the quarter following planned smelter maintenance. Incremental improvements across our operations from debottlenecking and increased throughput delivered record production in iron ore. Our exit from Onshore US is progressing to plan with bids expected by June 2018.”

 

BHP Operational Review for the nine months ended 31 March 2018    1


Summary

Operational performance

Production and guidance are summarised in the table below.

 

Production

  Mar
YTD18
    Mar
Q18
    Mar YTD18
vs
Mar YTD17
    Mar Q18
vs
Mar Q17
    Mar Q18
vs
Dec Q17
    Previous
FY18
guidance
    Current
FY18
guidance
     

Petroleum (MMboe)

    143       45       (8 %)      (12 %)      (8 %)      180 - 190       180 - 190     Upper end of range

Onshore US (MMboe)

    52       17       (14 %)      (17 %)      (3 %)      61 - 67       61 - 67     Upper end of range

Conventional (MMboe)

    91       28       (5 %)      (8 %)      (10 %)      119 - 123       119 - 123     Unchanged

Copper (kt)

    1,290       457       37     101     6     1,655 -1,790       1,700 -1,785     Narrowed range

Escondida (kt)

    897       314       64     232     0     1,130 - 1,230       1,180 -1,230     Narrowed range

Other copper(i) (kt)

    393       143       0     8     25     525 - 560       520 - 555    

Olympic Dam now ~135 kt

Antamina now ~135 kt

Iron ore(ii) (Mt)

    175       58       2     8     (6 %)      239 - 243       236 - 238     Lowered due to car dumper reliability

WAIO (100% basis) (Mt)

    203       67       2     8     (6 %)      275 - 280       272 - 274     As above for iron ore

Metallurgical coal(ii) (Mt)

    31       10       (2 %)      2     7     41 - 43       41 - 43     Unchanged

Energy coal(ii) (Mt)

    20       6       (4 %)      (18 %)      (16 %)      29 - 30       29 - 30     Unchanged

 

(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

Major development projects

BHP has four major projects under development in Petroleum, Copper and Potash, with a combined budget of US$7.5 billion over the life of the projects. All projects remain on time and on budget.

Petroleum

Production

 

     Mar
YTD18
     Mar
Q18
     Mar YTD18
vs
Mar YTD17
    Mar Q18
vs
Mar Q17
    Mar Q18
vs
Dec Q17
 

Crude oil, condensate and natural gas liquids (MMboe)

     65        20        (11 %)      (19 %)      (9 %) 

Natural gas (bcf)

     472        147        (6 %)      (5 %)      (6 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production (MMboe)

     143        45        (8 %)      (12 %)      (8 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Petroleum – Total petroleum production for the nine months ended March 2018 decreased by eight per cent to 143 MMboe. Guidance for the 2018 financial year remains unchanged at between 180 and 190 MMboe, comprising Conventional volumes between 119 and 123 MMboe and Onshore US volumes between 61 and 67 MMboe. We expect total petroleum volumes to be towards the upper end of the guidance range, primarily due to enhanced well performance in our Onshore US fields.

 

Production breakdown

   Mar YTD18      vs      Mar YTD17      

Crude oil, condensate and natural gas liquids (MMboe)

Conventional

     44           (7 %)    Hurricanes Harvey and Nate in the Gulf of Mexico and natural field decline.

Onshore US

     21           (20 %)    Hurricane Harvey and natural field decline, which more than offset improved recoveries and additional wells in the Black Hawk and Permian.

Total

     65           (11 %)   

Natural gas (bcf)

          

Conventional

     286           (2 %)    Maintenance at North West Shelf and Bass Strait.

Onshore US

     186           (10 %)    Hurricane Harvey and natural field decline, partially offset by additional wells in the Eagle Ford, Permian and Haynesville.
  

 

 

       

 

 

   

Total

     472           (6 %)   
  

 

 

       

 

 

   

 

BHP Operational Review for the nine months ended 31 March 2018    2


On 12 March 2018, BHP agreed to waive its right of pre-emption and provide consent to the sale by ExxonMobil of its 50 per cent interest in Scarborough to Woodside, resulting in Woodside and BHP holding 75 per cent and 25 per cent interests, respectively. BHP has an option to purchase an additional 10 per cent interest in Scarborough on equivalent consideration and terms to the transaction with ExxonMobil. This option may be exercised at any time prior to the earlier of 31 December 2019 and the date approval is given to commence the front-end engineering and design phase of the development of the Scarborough gas field.

Projects

 

Project and ownership

  Capital
expenditure
(US$m)
    Initial
production
target date
   

Capacity

 

Progress

North West Shelf Greater Western Flank-B

(Australia)

16.67% (non-operator)

    314       CY19     To maintain LNG plant throughput from the North West Shelf operations.   On schedule and budget. The overall project is 80% 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 16% complete.

Petroleum capital expenditure guidance remains unchanged at approximately US$1.9 billion for the 2018 financial year. This includes Conventional capital expenditure of US$0.8 billion, focused on high-return infill drilling opportunities in the Gulf of Mexico, a life extension project at North West Shelf and investment in the Mad Dog Phase 2 project. Onshore US capital expenditure of US$1.1 billion reflects drilling and completion activities tailored to support value in the exit process and meet Hold by Production obligations.

Onshore US development activity

Onshore US drilling and development expenditure for the nine months ended March 2018 was US$648 million. Our operated rig count declined from nine to seven during the March 2018 quarter.

 

    In the Permian, we continue to see strong results from larger completions. We expect rig count to remain unchanged through the June 2018 quarter as we focus on meeting Hold by Production obligations and progressing sub-surface trials.

 

    In the Eagle Ford, early trial results from wells with longer laterals in the Hawkville have exceeded expectations and early results in the Austin Chalk horizon have been positive. During April 2018, we reduced our rig count from three to two and this is expected to remain unchanged during the June 2018 quarter.

 

    In the Haynesville, the incorporation of larger choke settings in all new wells has significantly increased volumes, and longer laterals and larger completions have also outperformed expectations. We expect to lower our rig count from two to one during the June 2018 quarter.

 

    In the Fayetteville, we continue to assess the potential of the Moorefield horizon based on data from the new non-operated wells.

 

March YTD18

(March YTD17)

        Liquids focused areas      Gas focused areas         
      Eagle Ford      Permian      Haynesville      Fayetteville      Total  

Capital expenditure(i)

   US$ billion      0.2 (0.2)        0.3 (0.2)        0.2 (0.0)        0.0 (0.0)        0.6 (0.4)  

Rig allocation

   At period end      3 (1)        2 (1)        2 (1)        0 (0)        7 (3)  

Net wells drilled and completed(ii)

   Period total      14 (44)        13 (17)        2 (2)        0 (2)        29 (65)  

Net productive wells

   At period end      945 (963)        150 (124)        387 (392)        1,042 (1,045)        2,524 (2,524)  

 

(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.

The exit process for our Onshore US assets is progressing to plan and the data rooms for all fields and mid-stream assets are now open. We expect to receive bids by June 2018 and proceed with negotiations to potentially announce one or several transactions in the first half of the 2019 financial year. In parallel, we continue to explore potential asset swap opportunities and exit via demerger or Initial Public Offering.

 

BHP Operational Review for the nine months ended 31 March 2018    3


Petroleum exploration

Exploration and appraisal wells drilled during the March 2018 quarter are summarised below.

 

Well

  

Location

  

Target

   BHP equity  

Spud date

   Water depth    Total well
depth
  

Status

Scimitar

   US Gulf of Mexico GC392   

Oil

   65%   1 October 2017    1,289 m    9,386 m    Plugged and abandoned

Scimitar-ST

   US Gulf of Mexico GC392   

Oil

   85%   13 February 2018    1,289 m    8,246 m    Plugged and abandoned

As reported in the December 2017 Results Announcement, no commercial hydrocarbons were encountered at Scimitar in the US Gulf of Mexico. The well was plugged and abandoned in February 2018. In the northern extension of the Wildling prospect, we recently increased our footprint through the acquisition of Samson’s 33.33 per cent interest in the Samurai prospect in Green Canyon Blocks 432 and 476. Murphy Exploration & Production Co is the operator of Samurai and an exploration well was spud on 16 April 2018. This follows positive drilling results at Wildling in the first half of the 2018 financial year. Evaluation is ongoing to assess the scale of the discovery, with plans to continue drilling in the second half of the 2019 financial year. We were the apparent high bidder on three blocks, EB 914 and EB 699 in the western Gulf of Mexico and GC 823 to the west of the Mad Dog field, which we co-own with BP and Chevron.

Petroleum exploration expenditure for the nine months ended March 2018 was US$521 million, of which US$395 million was expensed. A US$715 million exploration program is being executed for the 2018 financial year. This program comprises the Wildling-2 side track, Scimitar and side track exploration well and the Samurai-2 well in the US Gulf of Mexico, one well in Trinidad and Tobago, with the second and third wells now expected to be drilled at the beginning of the 2019 financial year.

 

BHP Operational Review for the nine months ended 31 March 2018    4


Copper

Production

 

     Mar
YTD18
     Mar
Q18
     Mar YTD18
vs
Mar YTD17
    Mar Q18
vs
Mar Q17
    Mar Q18
vs
Dec Q17
 

Copper (kt)

     1,290        457        37     101     6

Zinc (t)

     83,817        25,562        43     24     (12 %) 

Uranium oxide concentrate (t)

     2,241        1,118        (23 %)      18     360

Copper – Total copper production for the nine months ended March 2018 increased by 37 per cent to 1,290 kt. Guidance for the 2018 financial year narrowed to between 1,700 and 1,785 kt from between 1,655 and 1,790 kt.

Escondida copper production for the nine months ended March 2018 increased by 64 per cent to 897 kt, supported by the start-up of the Los Colorados Extension project on 10 September 2017. Production guidance for the 2018 financial year has been narrowed to between 1,180 and 1,230 kt from between 1,130 and 1,230 kt. The Escondida Water Supply Extension (EWSE) was sanctioned by all joint venture partners in March 2018 and it comprises the expansion of the Escondida Water Supply conveyance system and desalination plant. EWSE is in execution phase and will deliver first water production in the 2020 financial year. EWSE will continue Escondida’s sustainable reduction of groundwater usage and maximise concentrator throughput beyond the 2020 financial year. The existing agreement with Union N°1 will expire on 1 August 2018 and early negotiations started in April 2018.

Pampa Norte copper production increased by six per cent to 193 kt due to record production at Spence mainly driven by higher utilisation of the solvent extraction and electrowinning plants. Pampa Norte production guidance for the 2018 financial year remains unchanged and is expected to be higher than the prior year. During the period, we successfully completed the accelerated negotiation with Spence Union N°2 (supervisors and staff) with the new agreement effective from 1 April 2018 for 36 months.

Olympic Dam copper production decreased by 18 per cent to 95 kt as a result of the planned major smelter maintenance campaign in the first half of the financial year. Production guidance for the 2018 financial year has been reduced from 150 kt to approximately 135 kt due to a slower than planned ramp-up during the March 2018 quarter. A return to full capacity is now expected over the course of the June 2018 quarter. Development into the higher-grade Southern Mine Area continues with record underground development metres achieved in March 2018.

Antamina copper production increased by 10 per cent to 105 kt and zinc production increased 43 per cent to 84 kt due to higher head grades as mining continued through a zinc-rich ore zone consistent with the mine plan. Copper production guidance for the 2018 financial year has increased to approximately 135 kt from approximately 125 kt and zinc production guidance to approximately 110 kt from approximately 100 kt.

Projects

 

Project and ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

Spence Growth Option

(Chile)

100%

     2,460        FY21      New 95 ktpd concentrator is expected to increase Spence’s payable copper in concentrate production by approximately 185 ktpa in the first 10 years of operation and extend the mining operations by more than 50 years.    On schedule and budget. The overall project is 8% complete.

 

BHP Operational Review for the nine months ended 31 March 2018    5


Iron Ore

Production

 

     Mar
YTD18
     Mar
Q18
     Mar YTD18
vs
Mar YTD17
    Mar Q18
vs
Mar Q17
    Mar Q18
vs
Dec Q17
 

Iron ore (kt)

     174,835        57,691        2     8     (6 %) 

Iron ore – Total iron ore production for the nine months ended March 2018 increased by two per cent to a record 175 Mt, or 203 Mt on a 100 per cent basis. Guidance for the 2018 financial year has been reduced to between 236 and 238 Mt, or between 272 and 274 Mt on a 100 per cent basis reflecting car dumper reliability issues as we push to record levels of production.

At WAIO, increased production was supported by record production at Jimblebar and Mining Area C, and improved rail reliability. This was partially offset by the impact of lower opening stockpile levels following the Mt Whaleback fire in June 2017, planned maintenance and port debottlenecking activities in the first half of the financial year. Volumes decreased by six per cent from the December 2017 quarter reflecting impacts from Cyclone Joyce and unplanned car dumper maintenance, despite improved rail reliability and an increase in peak performance in the number of rakes per day. With the system constraint now at the port, a program of work is underway to improve car dumper availability and performance. On 16 February 2018, BHP received regulatory approval to increase capacity at its Port Hedland operations to 290 Mtpa (100 per cent basis) and expects to reach this run rate by the end of the 2019 financial year.

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

Coal

Production

 

     Mar
YTD18
     Mar
Q18
     Mar YTD18
vs
Mar YTD17
    Mar Q18
vs
Mar Q17
    Mar Q18
vs
Dec Q17
 

Metallurgical coal (kt)

     30,631        10,379        (2 %)      2     7

Energy coal (kt)

     20,135        6,106        (4 %)      (18 %)      (16 %) 

Metallurgical coal – Metallurgical coal production for the nine months ended March 2018 decreased by two per cent to 31 Mt. Guidance for the 2018 financial year remains unchanged at between 41 and 43 Mt.

At Queensland Coal, production was lower due to challenging roof conditions at Broadmeadow and geotechnical issues triggered by wet weather at Blackwater. This was partially offset by record production at four mines, underpinned by improved stripping and truck performance, higher wash-plant throughput from debottlenecking activities and utilisation of latent dragline capacity at Caval Ridge. Mining operations at Blackwater stabilised in the current quarter and are expected to return to full capacity during the June 2018 quarter as inventory levels are rebuilt. At Broadmeadow, progression through the fault zone is expected to be completed during the June 2018 quarter. In March 2018, we successfully reached agreement with employees on the BMA Enterprise Agreement 2018(2) (covering four producing BMA mines) and it is currently with the Fair Work Commission for approval. The Caval Ridge Southern Circuit project is progressing according to plan, with production expected to ramp-up early in the 2019 financial year.

Energy coal – Energy coal production for the nine months ended March 2018 decreased by four per cent to 20 Mt. Guidance for the 2018 financial year remains unchanged at 29 to 30 Mt.

New South Wales Energy Coal production was down one per cent as higher truck utilisation and additional bypass coal were offset by higher average strip ratios compared to the corresponding period. Volumes decreased by 16 per cent from the December 2017 quarter following unfavourable weather impacts and then a significant build in raw coal inventory late in the quarter. This inventory is expected to support an uplift in volumes in the June 2018 quarter.

Cerrejón production declined seven per cent, due to unfavourable weather impacts on mine sequencing, equipment availability and higher strip ratio areas being mined.

 

BHP Operational Review for the nine months ended 31 March 2018    6


Other

Nickel production

 

     Mar
YTD18
     Mar
Q18
     Mar YTD18
vs
Mar YTD17
    Mar Q18
vs
Mar Q17
    Mar Q18
vs
Dec Q17
 

Nickel (kt)

     65.6        20.4        10     7     (9 %) 

Nickel – Nickel West production for the nine months ended March 2018 increased by 10 per cent to 66 kt of nickel primarily due to increased production rates at Mt Keith and Leinster. Nickel production guidance for the 2018 financial year remains unchanged and is expected to be broadly in line with the 2017 financial year.

Potash project

 

Project and ownership

   Investment
(US$m)
    

Scope

  

Progress

Jansen Potash

(Canada)

100%

     2,600      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 77% complete and within the approved budget. Shaft excavation is progressing. At the end of March 2018 both shafts reached potash in the Upper Patience Lake Member at a depth of approximately 924m.

Minerals exploration

Minerals exploration expenditure for the nine months ended March 2018 was US$128 million, of which US$92 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Peru, Canada, South Australia and the South-West United States.

 

 

Variance analysis relates to the relative performance of BHP and/or its operations during the nine months ended March 2018 compared with the nine months ended March 2017, 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. Copper equivalent production based on 2017 financial year average realised prices.

The following footnotes apply to this Operational Review:

 

(1) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(2) The BMA Enterprise Agreement 2018 covers four producing mines (Blackwater, Goonyella, Peak Downs and Saraji) as well as three mines in care and maintenance (Crinum, Gregory and Norwich Park).

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 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 Billiton Limited, BHP Billiton 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 2017 Annual Report on Form 20-F and in note 13 ‘Related undertaking of the Group’ in section 5.2 of BHP’s 30 June 2017 Annual Report on Form 20-F.

 

BHP Operational Review for the nine months ended 31 March 2018    7


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

 

Media Relations

 

Email: media.relations@bhpbilliton.com

 

Australia and Asia

 

Ben Pratt

Tel: +61 3 9609 3672 Mobile: +61 419 968 734

 

United Kingdom and South Africa

 

Neil Burrows

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

 

North America

 

Judy Dane

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

  

Investor Relations

 

Email: investor.relations@bhpbilliton.com

 

Australia and Asia

 

Tara Dines

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

 

United Kingdom and South Africa

 

Rob Clifford

Tel: +44 20 7802 4131 Mobile: +44 7788 308 844

 

Americas

 

James Wear

Tel: +1 713 993 3737 Mobile: +1 347 882 3011

 

BHP Billiton Limited ABN 49 004 028 077

LEI WZE1WSENV6JSZFK0JC28

Registered in Australia

Registered Office: Level 18, 171 Collins Street

Melbourne Victoria 3000 Australia

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

 

Members of BHP which is

headquartered in Australia

 

LOGO

 

Follow us on social media

  

BHP Billiton Plc Registration number 3196209

LEI 549300C116EOWV835768

Registered in England and Wales

Registered Office: Nova South, 160 Victoria Street

London SW1E 5LB United Kingdom

Tel +44 20 7802 4000 Fax +44 20 7802 4111

 

BHP Operational Review for the nine months ended 31 March 2018    8


Production summary    

 

    

BHP

interest

    Quarter ended      Year to date  
     Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Petroleum (1)

                      

Petroleum

                      

Crude oil, condensate and NGL (Mboe)

                      

Onshore US

       9,439        8,501        7,079        7,423        6,256        20,758        25,870  

Conventional

       15,369        15,612        15,090        14,869        13,960        43,919        47,096  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       24,808        24,113        22,169        22,292        20,216        64,677        72,966  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas (bcf)

                      

Onshore US

       66.1        67.2        61.4        60.5        64.1        186.0        207.8  

Conventional

       88.4        99.5        107.3        96.1        82.9        286.3        293.3  

Total

       154.5        166.7        168.7        156.6        147.0        472.3        501.1  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum production (MMboe)

       50.6        51.9        50.3        48.4        44.7        143.4        156.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     67.6        162.4        196.3        238.5        244.9        679.7        377.2  

Antamina

     33.8     29.2        38.5        35.9        33.8        35.2        104.9        95.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       96.8        200.9        232.2        272.3        280.1        784.6        472.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     27.2        62.8        71.9        76.1        69.4        217.4        169.2  

Pampa Norte (4)

     100     66.1        72.3        58.0        68.4        66.8        193.2        182.0  

Olympic Dam

     100     36.8        51.4        42.0        12.2        40.5        94.7        114.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       130.1        186.5        171.9        156.7        176.7        505.3        466.1  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper (kt)

       226.9        387.4        404.1        429.0        456.8        1,289.9        938.6  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     1,308        1,799        1,415        1,009        464        2,888        3,674  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,308        1,799        1,415        1,009        464        2,888        3,674  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     20,653        29,076        29,201        29,054        25,562        83,817        58,426  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       20,653        29,076        29,201        29,054        25,562        83,817        58,426  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     11,572        33,941        50,525        50,279        59,953        160,757        76,917  

Olympic Dam (refined gold)

     100     21,941        28,188        13,101        15,969        28,989        58,059        75,958  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       33,513        62,129        63,626        66,248        88,942        218,816        152,875  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     540        1,234        1,737        2,193        2,339        6,269        3,092  

Antamina

     33.8     1,301        1,691        1,596        1,331        1,189        4,116        4,092  

Olympic Dam (refined silver)

     100     174        243        131        135        248        514        525  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       2,015        3,168        3,464        3,659        3,776        10,899        7,709  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     948        737        880        243        1,118        2,241        2,924  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       948        737        880        243        1,118        2,241        2,924  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     30        328        402        579        420        1,401        816  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       30        328        402        579        420        1,401        816  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2018    9


Production summary

 

    

BHP

interest

    Quarter ended      Year to date  
     Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     16,283        16,241        13,842        18,317        16,412        48,571        52,042  

Area C Joint Venture

     85     11,165        13,016        13,099        13,575        12,802        39,476        35,728  

Yandi Joint Venture

     85     14,656        17,415        14,559        16,348        15,802        46,709        47,940  

Jimblebar (6)

     85     4,824        5,891        6,283        4,583        4,669        15,535        16,059  

Wheelarra

     85     6,647        7,578        7,804        8,734        8,006        24,544        19,442  

Samarco

     50     —          —          —          —          —          —          —    
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       53,575        60,141        55,587        61,557        57,691        174,835        171,211  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     7,996        6,394        8,296        7,394        7,983        23,673        25,064  

BHP Mitsui Coal (8)

     80     2,138        2,100        2,271        2,291        2,396        6,958        6,212  

Haju (9)

     75     —          —          —          —          —          —          129  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,134        8,494        10,567        9,685        10,379        30,631        31,405  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

USA

     100     —          —          —          —          —          —          451  

Australia

     100     4,662        5,711        4,235        4,383        3,662        12,280        12,465  

Colombia

     33.3     2,756        2,475        2,497        2,914        2,444        7,855        8,484  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       7,418        8,186        6,732        7,297        6,106        20,135        21,400  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West

     100     19.0        25.2        22.8        22.4        20.4        65.6        59.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       19.0        25.2        22.8        22.4        20.4        65.6        59.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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) Shown on a 100% basis. BHP interest in saleable production is 75%.

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

 

BHP Operational Review for the nine months ended 31 March 2018    10


Production and sales report  
          Quarter ended      Year to date  
      Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Petroleum (1)

                       

Bass Strait

                       

Crude oil and condensate

   (Mboe)      1,355        1,552        1,815        1,513        1,126        4,454        5,047  

NGL

   (Mboe)      1,236        1,661        1,950        1,584        1,170        4,704        4,798  

Natural gas

   (bcf)      28.7        37.4        42.6        32.9        20.5        96.0        101.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      7.4        9.4        10.9        8.6        5.7        25.2        26.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

North West Shelf

                       

Crude oil and condensate

   (Mboe)      1,239        1,314        1,474        1,442        1,377        4,293        4,193  

NGL

   (Mboe)      200        209        227        200        210        637        755  

Natural gas

   (bcf)      32.2        32.5        36.2        36.2        35.8        108.2        107.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      6.8        6.9        7.7        7.7        7.6        23.0        22.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pyrenees

                       

Crude oil and condensate

   (Mboe)      1,509        1,606        1,510        1,210        1,250        3,970        4,911  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.5        1.6        1.5        1.2        1.3        4.0        4.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Australia (2)

                       

Crude oil and condensate

   (Mboe)      8        9        9        8        8        25        26  

Natural gas

   (bcf)      15.2        16.3        16.1        13.3        13.4        42.8        49.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.5        2.7        2.7        2.2        2.2        7.2        8.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Atlantis (3)

                       

Crude oil and condensate

   (Mboe)      3,881        3,637        3,022        3,377        3,459        9,858        10,198  

NGL

   (Mboe)      295        213        218        195        248        661        710  

Natural gas

   (bcf)      2.1        1.9        1.6        1.8        1.8        5.2        5.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      4.5        4.2        3.5        3.9        4.0        11.4        11.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mad Dog (3)

                       

Crude oil and condensate

   (Mboe)      1,185        1,167        1,020        1,231        1,140        3,391        3,305  

NGL

   (Mboe)      59        68        44        72        55        171        147  

Natural gas

   (bcf)      0.2        0.2        0.1        0.2        0.2        0.5        0.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.3        1.3        1.1        1.3        1.2        3.6        3.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Shenzi (3)

                       

Crude oil and condensate

   (Mboe)      2,675        2,588        2,291        2,513        2,323        7,127        7,999  

NGL

   (Mboe)      161        179        141        184        140        465        386  

Natural gas

   (bcf)      0.5        0.6        0.4        0.5        0.4        1.3        1.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.9        2.9        2.5        2.8        2.5        7.8        8.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Eagle Ford (4)

                       

Crude oil and condensate

   (Mboe)      5,451        4,278        3,457        3,720        2,838        10,015        13,330  

NGL

   (Mboe)      2,354        2,240        1,856        2,100        1,555        5,511        6,781  

Natural gas

   (bcf)      17.0        15.1        13.8        14.4        12.6        40.8        48.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      10.6        9.0        7.6        8.2        6.5        22.3        28.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Permian (4)

                       

Crude oil and condensate

   (Mboe)      1,202        1,336        1,179        1,142        1,398        3,719        3,995  

NGL

   (Mboe)      428        646        587        460        465        1,512        1,742  

Natural gas

   (bcf)      4.0        6.2        4.5        3.6        4.1        12.2        12.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.3        3.0        2.5        2.2        2.5        7.3        7.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Haynesville (4)

                       

Crude oil and condensate

   (Mboe)      1        1        —          1        —          1        4  

NGL

   (Mboe)      3        —          —          —          —          —          18  

Natural gas

   (bcf)      22.0        21.4        21.5        22.0        28.7        72.2        74.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.7        3.6        3.6        3.7        4.8        12.0        12.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fayetteville (4)

                       

Natural gas

   (bcf)      23.1        24.5        21.6        20.5        18.7        60.8        72.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.9        4.1        3.6        3.4        3.1        10.1        12.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2018    11


Production and sales report  
          Quarter ended      Year to date  
      Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Petroleum (1) (continued)

                       

Trinidad/Tobago

                       

Crude oil and condensate

   (Mboe)      127        139        118        135        232        485        423  

Natural gas

   (bcf)      8.4        9.4        9.7        10.5        10.0        30.2        23.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.5        1.7        1.7        1.9        1.9        5.5        4.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Americas (3) (5)

                       

Crude oil and condensate

   (Mboe)      257        238        229        207        189        625        801  

NGL

   (Mboe)      6        10        5        3        3        11        12  

Natural gas

   (bcf)      0.1        0.1        0.1        0.1        —          0.2        0.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.3        0.3        0.3        0.2        0.2        0.7        0.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

UK

                       

Crude oil and condensate

   (Mboe)      72        64        40        22        43        105        204  

NGL

   (Mboe)      32        16        39        13        18        70        103  

Natural gas

   (bcf)      1.0        1.1        0.5        0.6        0.8        1.9        3.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.3        0.3        0.2        0.1        0.2        0.5        0.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Algeria

                       

Crude oil and condensate

   (Mboe)      1,072        942        938        960        969        2,867        3,078  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.1        0.9        0.9        1.0        1.0        2.9        3.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Petroleum

                       

Crude oil and condensate

                       

Onshore US

   (Mboe)      6,654        5,615        4,636        4,863        4,236        13,735        17,329  

Conventional

   (Mboe)      13,380        13,256        12,466        12,618        12,116        37,200        40,185  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      20,034        18,871        17,102        17,481        16,352        50,935        57,514  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NGL

                       

Onshore US

   (Mboe)      2,785        2,886        2,443        2,560        2,020        7,023        8,541  

Conventional

   (Mboe)      1,989        2,356        2,624        2,251        1,844        6,719        6,911  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      4,774        5,242        5,067        4,811        3,864        13,742        15,452  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas

                       

Onshore US

   (bcf)      66.1        67.2        61.4        60.5        64.1        186.0        207.8  

Conventional

   (bcf)      88.4        99.5        107.3        96.1        82.9        286.3        293.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (bcf)      154.5        166.7        168.7        156.6        147.0        472.3        501.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

                       

Onshore US

   (Mboe)      20,456        19,701        17,312        17,506        16,939        51,758        60,503  

Conventional

   (Mboe)      30,102        32,195        32,973        30,886        27,777        91,636        95,979  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      50,558        51,896        50,286        48,392        44,716        143,394        156,483  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(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)   Onshore US volumes are net of mineral holder royalties.

(5)   Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

    

    

    

    

    

 

BHP Operational Review for the nine months ended 31 March 2018    12


Production and sales report  
          Quarter ended     Year to date  
      Mar
2017
    Jun
2017
    Sep
2017
    Dec
2017
    Mar
2018
    Mar
2018
    Mar
2017
 

Copper

                 

Metals production is payable metal unless otherwise stated.

 

Escondida, Chile (1)

                 

Material mined

   (kt)      26,045       93,389       104,867       101,371       103,385       309,623       223,412  

Sulphide ore milled

   (kt)      8,054       18,777       24,080       30,260       32,203       86,543       48,707  

Average copper grade

   (%)      1.01     1.07     1.06     0.98     0.96     0.99     0.95

Production ex mill

   (kt)      68.7       167.0       204.2       245.7       252.6       702.5       390.5  

Production

                 

Payable copper

   (kt)      67.6       162.4       196.3       238.5       244.9       679.7       377.2  

Copper cathode (EW)

   (kt)      27.2       62.8       71.9       76.1       69.4       217.4       169.2  

- Oxide leach

   (kt)      8.9       20.3       22.4       27.4       24.5       74.3       60.1  

- Sulphide leach

   (kt)      18.3       42.5       49.5       48.7       44.9       143.1       109.1  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total copper

   (kt)      94.8       225.2       268.2       314.6       314.3       897.1       546.4  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payable gold concentrate

   (troy oz)      11,572       33,941       50,525       50,279       59,953       160,757       76,917  

Payable silver concentrate

   (troy koz)      540       1,234       1,737       2,193       2,339       6,269       3,092  

Sales

                 

Payable copper

   (kt)      63.7       163.3       195.1       236.7       228.3       660.1       371.3  

Copper cathode (EW)

   (kt)      39.4       56.0       61.6       84.1       61.7       207.4       176.8  

Payable gold concentrate

   (troy oz)      11,572       33,941       50,525       50,279       59,953       160,757       76,917  

Payable silver concentrate

   (troy koz)      540       1,234       1,737       2,193       2,339       6,269       3,092  

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

    

Pampa Norte, Chile

                 

Cerro Colorado

                 

Material mined

   (kt)      15,178       15,760       21,381       20,191       17,766       59,338       42,475  

Ore milled

   (kt)      4,179       4,411       3,951       4,611       4,905       13,467       10,762  

Average copper grade

   (%)      0.57     0.53     0.62     0.59     0.58     0.60     0.63

Production

                 

Copper cathode (EW)

   (kt)      16.7       18.8       13.3       17.4       13.6       44.3       45.9  

Sales

                 

Copper cathode (EW)

   (kt)      15.6       19.8       12.3       17.7       13.7       43.7       45.7  

Spence

                 

Material mined

   (kt)      22,939       24,230       22,314       23,096       21,463       66,873       69,212  

Ore milled

   (kt)      5,225       4,968       5,375       4,919       5,144       15,438       15,125  

Average copper grade

   (%)      1.09     1.13     1.21     1.18     1.03     1.14     1.15

Production

                 

Copper cathode (EW)

   (kt)      49.4       53.5       44.7       51.0       53.2       148.9       136.1  

Sales

                 

Copper cathode (EW)

   (kt)      49.0       55.7       43.0       52.2       49.8       145.0       131.7  

 

BHP Operational Review for the nine months ended 31 March 2018    13


Production and sales report  
          Quarter ended     Year to date  
      Mar
2017
    Jun
2017
    Sep
2017
    Dec
2017
    Mar
2018
    Mar
2018
    Mar
2017
 

Copper (continued)

 

Metals production is payable metal unless otherwise stated.

 

Antamina, Peru

                 

Material mined (100%)

   (kt)      55,771       62,254       59,216       59,125       58,085       176,426       182,237  

Sulphide ore milled (100%)

   (kt)      11,955       13,229       12,822       13,098       12,166       38,086       38,876  

Average head grades

                 

- Copper

   (%)      0.88     1.00     0.94     0.89     1.01     0.95     0.85

- Zinc

   (%)      0.84     0.95     0.99     0.93     1.01     0.98     0.75

Production

                 

Payable copper

   (kt)      29.2       38.5       35.9       33.8       35.2       104.9       95.3  

Payable zinc

   (t)      20,653       29,076       29,201       29,054       25,562       83,817       58,426  

Payable silver

   (troy koz)      1,301       1,691       1,596       1,331       1,189       4,116       4,092  

Payable lead

   (t)      1,308       1,799       1,415       1,009       464       2,888       3,674  

Payable molybdenum

   (t)      30       328       402       579       420       1,401       816  

Sales

                 

Payable copper

   (kt)      30.2       36.9       31.9       37.0       32.1       101.0       96.0  

Payable zinc

   (t)      23,669       27,936       25,224       30,340       26,456       82,020       62,046  

Payable silver

   (troy koz)      1,304       1,513       1,475       1,470       1,052       3,997       3,969  

Payable lead

   (t)      1,475       1,493       1,624       972       859       3,455       3,342  

Payable molybdenum

   (t)      —         —         168       693       500       1,361       1,124  

Olympic Dam, Australia

                 

Material mined (1)

   (kt)      1,943       1,974       1,851       1,391       2,056       5,298       6,034  

Ore milled

   (kt)      2,112       2,097       2,302       554       2,188       5,044       6,507  

Average copper grade

   (%)      2.07     2.30     2.10     2.22     2.36     2.23     2.01

Average uranium grade

   (kg/t)      0.61       0.58       0.55       0.58       0.71       0.62       0.63  

Production

                 

Copper cathode (ER and EW)

   (kt)      36.8       51.4       42.0       12.2       40.5       94.7       114.9  

Uranium oxide concentrate

   (t)      948       737       880       243       1,118       2,241       2,924  

Refined gold

   (troy oz)      21,941       28,188       13,101       15,969       28,989       58,059       75,958  

Refined silver

   (troy koz)      174       243       131       135       248       514       525  

Sales

                 

Copper cathode (ER and EW)

   (kt)      33.5       51.5       31.6       24.3       36.8       92.7       112.2  

Uranium oxide concentrate

   (t)      839       1,298       680       338       509       1,527       2,807  

Refined gold

   (troy oz)      22,333       24,726       22,435       17,999       20,715       61,149       72,468  

Refined silver

   (troy koz)      108       251       219       118       202       539       495  

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

    

 

BHP Operational Review for the nine months ended 31 March 2018    14


Production and sales report  
          Quarter ended      Year to date  
      Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Iron Ore

                       

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

 

Pilbara, Australia

                       

Production

                       

Newman

   (kt)      16,283        16,241        13,842        18,317        16,412        48,571        52,042  

Area C Joint Venture

   (kt)      11,165        13,016        13,099        13,575        12,802        39,476        35,728  

Yandi Joint Venture

   (kt)      14,656        17,415        14,559        16,348        15,802        46,709        47,940  

Jimblebar (1)

   (kt)      4,824        5,891        6,283        4,583        4,669        15,535        16,059  

Wheelarra

   (kt)      6,647        7,578        7,804        8,734        8,006        24,544        19,442  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

   (kt)      53,575        60,141        55,587        61,557        57,691        174,835        171,211  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

   (kt)      62,177        69,714        64,287        71,611        67,048        202,946        198,588  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Lump

   (kt)      12,804        15,104        13,896        15,145        13,993        43,034        41,087  

Fines

   (kt)      41,043        46,249        40,733        45,769        44,332        130,834        128,768  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      53,847        61,353        54,629        60,914        58,325        173,868        169,855  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

   (kt)      62,513        71,149        63,322        70,733        67,799        201,854        197,077  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

    

Samarco, Brazil (1)

                       

Production

   (kt)      —          —          —          —          —          —          —    

Sales

   (kt)      35        —          —          14        25        39        47  

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

    

 

BHP Operational Review for the nine months ended 31 March 2018    15


Production and sales report  
          Quarter ended      Year to date  
      Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Coal

 

Coal production is reported on the basis of saleable product.

 

Queensland Coal

                       

Production (1)

                       

BMA

                       

Blackwater

   (kt)      1,694        1,766        1,985        1,470        1,384        4,839        5,530  

Goonyella

   (kt)      1,871        1,157        1,639        1,369        2,314        5,322        6,198  

Peak Downs

   (kt)      1,582        1,238        1,602        1,367        1,723        4,692        4,817  

Saraji

   (kt)      1,276        913        1,414        1,198        1,240        3,852        3,821  

Daunia

   (kt)      674        560        662        718        547        1,927        2,000  

Caval Ridge

   (kt)      899        760        994        1,272        775        3,041        2,698  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

   (kt)      7,996        6,394        8,296        7,394        7,983        23,673        25,064  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Mitsui Coal (2)

                       

South Walker Creek

   (kt)      1,354        1,348        1,400        1,524        1,490        4,414        3,775  

Poitrel

   (kt)      784        752        871        767        906        2,544        2,437  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Mitsui Coal

   (kt)      2,138        2,100        2,271        2,291        2,396        6,958        6,212  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

   (kt)      10,134        8,494        10,567        9,685        10,379        30,631        31,276  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Coking coal

   (kt)      7,133        5,496        7,934        6,341        7,177        21,452        22,031  

Weak coking coal

   (kt)      2,761        2,502        3,150        2,816        2,598        8,564        8,219  

Thermal coal

   (kt)      96        142        102        173        168        443        456  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      9,990        8,140        11,186        9,330        9,943        30,459        30,706  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)   Production figures include some thermal coal.

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

    

    

Haju, Indonesia (1)

                       

Production

   (kt)      —          —          —          —          —          —          129  

Sales - export

   (kt)      —          —          —          —          —          —          117  

(1)   Shown on 100% basis. BHP interest in saleable production is 75%. BHP completed the sale of IndoMet Coal on 14 October 2016.

    

New Mexico, USA

                       

Production

                       

Navajo Coal (1)

   (kt)      —          —          —          —          —          —          451  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      —          —          —          —          —          —          451  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales thermal coal - local utility

        —          —          —          —          —          —          105  

(1)   The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP.

Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.

    

 

NSW Energy Coal, Australia

                       

Production

   (kt)      4,662        5,711        4,235        4,383        3,662        12,280        12,465  

Sales

                       

Export thermal coal

   (kt)      4,407        4,913        3,622        4,048        3,181        10,851        11,586  

Inland thermal coal

   (kt)      431        327        405        411        400        1,216        1,073  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      4,838        5,240        4,027        4,459        3,581        12,067        12,659  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                       

Production

   (kt)      2,756        2,475        2,497        2,914        2,444        7,855        8,484  

Sales thermal coal - export

   (kt)      2,613        2,803        2,518        2,619        2,480        7,617        8,240  

 

BHP Operational Review for the nine months ended 31 March 2018    16


Production and sales report  
          Quarter ended      Year to date  
      Mar
2017
     Jun
2017
     Sep
2017
     Dec
2017
     Mar
2018
     Mar
2018
     Mar
2017
 

Other

                       

Nickel production is reported on the basis of saleable product

 

Nickel West, Australia

                       

Production

                       

Nickel contained in concentrate

   (kt)      0.2        —          —          —          —          —          0.7  

Nickel contained in finished matte

   (kt)      2.3        5.3        6.8        4.6        1.2        12.6        8.2  

Nickel metal

   (kt)      16.5        19.9        16.0        17.8        19.2        53.0        51.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel production

   (kt)      19.0        25.2        22.8        22.4        20.4        65.6        59.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Nickel contained in concentrate

   (kt)      0.2        —          —          —          —          —          0.7  

Nickel contained in finished matte

   (kt)      2.2        4.9        4.6        6.4        2.1        13.1        8.1  

Nickel metal

   (kt)      17.1        18.1        16.6        17.9        19.7        54.2        51.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel sales

   (kt)      19.5        23.0        21.2        24.3        21.8        67.3        60.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2018    17


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 Billiton Limited and BHP Billiton Plc
Date: April 19, 2018     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary