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, 2018

 

 

 

BHP BILLITON 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 BILLITON 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)

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☒ Form 20-F    ☐ Form 40-F

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

 

 

 


NEWS RELEASE    LOGO

Release Time        

   IMMEDIATE

Date

   17 October 2018

Release Number

   19/18

BHP OPERATIONAL REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2018

 

 

Group copper equivalent production increased by 2% in the September 2018 quarter despite maintenance across a number of operations. Volumes for the 2019 financial year are expected to be broadly in line with last year(1).

 

 

Full year production guidance remains unchanged for petroleum, iron ore, metallurgical coal and energy coal. Total copper production guidance reduced by approximately 3% to between 1,620 and 1,705 kt reflecting lower volumes now expected at Spence (electro-winning plant outage) and Olympic Dam (acid plant outage).

 

 

Unit cost guidance(2) maintained for all major assets for the 2019 financial year.

 

 

All major projects under development are tracking to plan.

 

 

In Petroleum, the Victoria-1 and Bongos-2 exploration wells in Trinidad and Tobago, and the Samurai-2 well in the US Gulf of Mexico, encountered hydrocarbons. A sidetrack of the Samurai-2 well is currently being drilling to further appraise the discovery.

 

 

Onshore US sale process is on track to be completed by the end of October 2018, with the Fayetteville transaction completed on 29 September 2018. The net proceeds from the sale of our Onshore US assets are expected to be returned to shareholders.

 

Production

   Sep Q18      vs Sep Q17    

Sep Q18 commentary

Petroleum (MMboe)

     33        (1 %)    Higher natural gas volumes at Trinidad and Tobago offset by natural field decline and planned maintenance at Pyrenees.

Copper (kt)

     409        1   Higher volumes at Escondida supported by the utilisation of the three concentrators, offset by the impact of planned maintenance and a fire at Spence, and an acid plant outage at Olympic Dam.

Iron ore (Mt)

     61        10   Higher volumes at WAIO supported by record quarterly production at Jimblebar and improved reliability across our rail network and port operations.

Metallurgical coal (Mt)

     10        (2 %)    Record stripping and truck performance at BMA offset by the impact of planned maintenance across both port and mine operations.

Energy coal (Mt)

     7        (1 %)    Improved stripping fleet performance at New South Wales Energy Coal offset by lower bypass coal and a higher average strip ratio.

BHP Chief Executive Officer, Andrew Mackenzie, said: “We delivered a two per cent increase in copper equivalent production despite maintenance at a number of our operations. We are on track to meet guidance for the 2019 financial year across our commodities, except copper where we have reduced production guidance slightly following outages at Olympic Dam in Australia and Spence in Chile. In petroleum, we have extended our exploration success and encountered hydrocarbons in three wells. The Onshore US sale process is progressing to plan and is expected to be completed by the end of October 2018.”

 

 

BHP Operational Review for the quarter ended 30 September 2018    1


Summary

Operational performance

Production for the September 2018 quarter and guidance for the 2019 financial year are summarised in the table below.

 

Production

   Sep Q18      Sep Q18
vs

Sep Q17
    Sep Q18
vs
Jun Q18
    Previous
FY19
guidance
     Current
FY19
guidance
        

Continuing operations

               

Petroleum – Conventional (MMboe)

     33        (1 %)      15     113 - 118        113 - 118        Unchanged  

Copper (kt)

     409        1     (12 %)      1,675 - 1,770        1,620 - 1,705        Reduced  

Escondida (kt)

     295        10     (7 %)      1,120 - 1,180        1,120 - 1,180        Unchanged  

Other copper(i) (kt)

     114        (16 %)      (23 %)      555 - 590        500 - 525       

Olympic Dam now 170 - 180 kt;

previously 200 - 220 kt

Spence now 160 - 175 kt;

previously 185 - 200 kt

 

 

 

 

Iron ore (Mt)

     61        10     (3 %)      241 - 250        241 - 250        Unchanged  

WAIO (100% basis) (Mt)

     69        8     (4 %)      273 - 283        273 - 283        Unchanged  

Metallurgical coal (Mt)

     10        (2 %)      (14 %)      43 - 46        43 - 46        Unchanged  

Energy coal (Mt)

     7        (1 %)      (26 %)      28 - 29        28 - 29        Unchanged  

Discontinued operations

               

Petroleum – Onshore US (MMboe)

     20        16     (2 %)      Refer footnote(ii)     

 

(i)

Other copper comprises Pampa Norte (including Cerro Colorado production for the first half of the 2019 financial year), Olympic Dam and Antamina.

(ii)

Given our announcement to exit Onshore US, no annual guidance for the 2019 financial year for these assets will be provided; however, until sale completion, we expect a production run rate broadly consistent with the second half of the 2018 financial year.

Major development projects

At the end of the September 2018 quarter, BHP had five major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$10.6 billion over the life of the projects.

Corporate update

On 18 September 2018, BHP released its Economic Contribution Report which shows the Group’s direct economic contribution globally in the 2018 financial year was US$33.9 billion. This includes US$7.8 billion in taxes, royalties and other payments to governments. BHP’s adjusted effective tax rate in the 2018 financial year was 31.4 per cent. When royalties are included, the rate was 39.9 per cent.

 

 

BHP Operational Review for the quarter ended 30 September 2018    2


Petroleum

Production

     Sep Q18      Sep Q18
vs
Sep Q17
    Sep Q18
vs
Jun Q18
 

Crude oil, condensate and natural gas liquids (MMboe)

     14        (7 %)      4

Natural gas (bcf)

     112        5     24

Total petroleum production (MMboe)

     33        (1 %)      15

Petroleum - Total Conventional petroleum production was broadly flat at 33 MMboe. Guidance for the 2019 financial year remains unchanged at between 113 and 118 MMboe.

Crude oil, condensate and natural gas liquids production declined by seven per cent to 14 MMboe due to natural field decline across the portfolio and a 70 day planned dry dock maintenance at Pyrenees, which was completed on schedule and budget in September 2018. This decline was partially offset by higher uptimes at our Gulf of Mexico assets.

Natural gas production increased by five per cent to 112 bcf, reflecting increased tax barrels at Trinidad and Tobago in accordance with the terms of our Production Sharing Contract. This was partially offset by natural field decline across the portfolio.

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)

     216        CY19      To maintain LNG plant throughput from the North West Shelf operations.    Ahead of schedule and budget. The overall project is 95% 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 31% complete.

Study work continues on the Atlantis Phase 3, Ruby and West Barracouta projects and they remain on track.

Petroleum exploration

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

 

Well

  Location   Target   Formation
age
  BHP equity   Spud date   Water depth   Total well
depth
  Status
Samurai-2   US Gulf of
Mexico GC432
  Oil   Miocene   50%
(Murphy
Operator)
  16 April 2018   1,088 m   9,777 m   Hydrocarbons encountered;
plugged and abandoned
Samurai-2 ST01   US Gulf of
Mexico GC476
  Oil   Drilling
ahead
  50%
(Murphy
Operator)
  25 August 2018   1,088 m   9,178 m   Drilling ahead
Victoria-1   Trinidad &
Tobago Block
TTDAA 5
  Gas   Pleistocene/
Pliocene
  65%
(BHP
Operator)
  12 June 2018   1,828 m   3,282 m   Hydrocarbons encountered;
plugged and abandoned
Bongos-1   Trinidad &
Tobago Block
TTDAA 14
  Gas   Pliocene/
Miocene
  70%
(BHP
Operator)
  20 July 2018   1,909 m   2,469 m   Plugged and abandoned
due to mechanical failure
Bongos-2   Trinidad &
Tobago Block
TTDAA 14
  Gas   Pliocene/
Miocene
  70%
(BHP
Operator)
  22 July 2018   1,910 m   5,151 m   Hydrocarbons encountered;
plugged and abandoned
Concepcion-1   Trinidad &
Tobago Block
TTDAA 5
  Gas   Drilling
ahead
  65%
(BHP
Operator)
  30 September 2018   1,721 m   1,817 m   Drilling ahead

 

 

BHP Operational Review for the quarter ended 30 September 2018    3


In the US Gulf of Mexico, the Samurai-2 exploration well encountered hydrocarbons in multiple horizons not previously observed by the Wildling-2 exploration well and was plugged and abandoned on 23 August 2018. A sidetrack of the Samurai-2 well commenced on 25 August 2018 to further appraise the discovery and is currently drilling ahead. In the Western US Gulf of Mexico, we commenced the acquisition of an Ocean Bottom Node seismic survey.    

In Trinidad and Tobago, we continued with Phase 2 of our deepwater exploration drilling campaign. The Victoria-1 exploration well, which further assessed the commercial potential of the Magellan play in our Southern licence area in Trinidad and Tobago, encountered gas and was plugged and abandoned on 18 July 2018. Following the Victoria-1 well, the Bongos-1 exploration well was spud on 20 July 2018 and experienced mechanical difficulty shortly after spud. The Bongos-2 exploration well was spud on 22 July 2018 and encountered hydrocarbons. The Bongos-2 and Bongos-1 wells were plugged and abandoned on 23 September 2018 and 26 September 2018 respectively. Following the Bongos-2 well, the Concepcion-1 well was spud on 30 September 2018 to further test the Magellan play and is currently drilling ahead.

In Mexico, we expect to begin drilling the first appraisal well at Trion in the December 2018 quarter. In Australia, the final processed data of the Exmouth sub-basin 3D seismic data has been received.

A US$750 million exploration and appraisal program is being executed for the 2019 financial year. Petroleum exploration expenditure for the September 2018 quarter was US$133 million, of which US$55 million was expensed.

Onshore US – Discontinued operations

Following BHP’s sale of the Onshore US assets, as announced on 27 July 2018, these assets have been presented as discontinued operations. The effective date at which the right to economic profits transfers to the purchasers is 1 July 2018.

Onshore US production for the September 2018 quarter increased by 16 per cent to 20 MMboe as a result of additional wells put online in Haynesville, Permian and Eagle Ford. Drilling and development expenditure for the September 2018 quarter was US$299 million. Our operated rig count remained unchanged at five, with two rigs at Eagle Ford, two rigs at Permian and one at Haynesville. No annual guidance for the 2019 financial year for these assets will be provided; however until sale completion, we expect a production run rate broadly consistent with the second half of the 2018 financial year.

On 29 September 2018, BHP announced the completion of the sale of its Fayetteville Onshore US gas assets to a wholly owned subsidiary of Merit Energy Company. Completion of the sale of BHP’s interests in the Eagle Ford, Haynesville and Permian Onshore US oil and gas assets to BP America Production Company, a subsidiary of BP Plc, is expected to occur by the end of October 2018.

 

 

BHP Operational Review for the quarter ended 30 September 2018    4


Copper

Production

 

     Sep Q18      Sep Q18
vs

Sep Q17
    Sep Q18
vs

Jun Q18
 

Copper (kt)

     409        1     (12 %) 

Zinc (t)

     30,558        5     (15 %) 

Uranium oxide concentrate (t)

     559        (36 %)      (50 %) 

Copper – Total copper production for the September 2018 quarter was broadly flat at 409 kt. Guidance for the 2019 financial year has been reduced to between 1,620 and 1,705 kt and reflects lower volumes at Spence and Olympic Dam.

Escondida copper production increased by 10 per cent to 295 kt driven by higher copper concentrate output. This is a result of the diversion of ore feed from sulphide leach to the three concentrators to maximise their utilisation, which offset the impact of expected lower copper grades and adverse weather conditions in the quarter. Guidance remains unchanged at between 1,120 and 1,180 kt in the 2019 financial year. During the period, we successfully completed negotiations with Escondida Union N°1 and signed a new collective agreement, effective for 36 months from 1 August 2018.

Pampa Norte copper production decreased by 25 per cent to 43 kt as a result of lower volumes from Spence. The decrease reflected a lower stacking rate in May and June 2018 as a result of planned maintenance, and a production outage following a fire at the electro-winning plant in September 2018. Production guidance for Spence has been reduced from between 185 and 200 kt to between 160 and 175 kt, with volumes weighted to the second half as a return to full capacity is expected during the December 2018 quarter. Since the fire, mining and stacking operations at Spence have continued, accumulating copper in the system, which will be recovered over the coming years as tankhouse capacity becomes available. On 19 June 2018, BHP entered into an agreement to sell Cerro Colorado to EMR Capital(3). The transaction is expected to close during the December 2018 quarter, subject to financing and customary closing conditions. During the period, we successfully completed the advanced negotiation with Cerro Colorado Union N°1 (operators and maintenance), with the new agreement effective for 36 months from 1 September 2018.

Olympic Dam copper production decreased by 21 per cent to 33 kt as a result of an unplanned acid plant outage in August 2018. Surface operations remain suspended as remediation works continue on the gas converter, sulphur burner and waste heat boiler in the acid plant. Surface operations are expected to recommence at the end of October 2018 and ramp up to full capacity during November 2018. As a result, production guidance for the 2019 financial year has been reduced from between 200 and 220 kt to between 170 and 180 kt. Underground operations have been unaffected with total development of nine kilometres achieved in the September 2018 quarter and progression into the higher ore grade Southern Mine Area continuing.

Antamina copper production increased by three per cent to 37 kt due to higher head grades. Production guidance for the 2019 financial year remains unchanged at approximately 135 kt for copper and approximately 85 kt for zinc.

Projects

 

Project and

ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

Spence Growth Option

(Chile)

100%

     2,460        FY21      New 95 ktpd concentrator is expected to increase Spence’s payable copper in concentrate production by approximately 185 ktpa in the first 10 years of operation and extend the mining operations by more than 50 years.    On schedule and budget. The overall project is 23% complete.

 

 

BHP Operational Review for the quarter ended 30 September 2018    5


Iron Ore

Production

 

     Sep Q18      Sep Q18
vs

Sep Q17
    Sep Q18
vs

Jun Q18
 

Iron ore (kt)

     61,391        10     (3 %) 

Iron ore – Total iron ore production increased by 10 per cent to 61 Mt or 69 Mt on a 100 per cent basis. Guidance for the 2019 financial year remains unchanged at between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per cent basis.

At WAIO, increased volumes were supported by record production at Jimblebar and improved reliability across our rail network and port operations. As expected, production was lower than the June 2018 quarter as we optimised maintenance schedules across the supply chain and implemented a program of work to further improve port reliability and performance.

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

Projects

 

Project and ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

South Flank

(Australia)

85%

     3,061        CY21      Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi mine.    On schedule and budget. The overall project is 15% complete.

Coal

Production

 

     Sep Q18      Sep Q18
vs

Sep Q17
    Sep Q18
vs

Jun Q18
 

Metallurgical coal (kt)

     10,358        (2 %)      (14 %) 

Energy coal (kt)

     6,640        (1 %)      (26 %) 

Metallurgical coal – Metallurgical coal production was down two per cent to 10 Mt. Guidance for the 2019 financial year remains unchanged at between 43 and 46 Mt, with volumes weighted to the second half of the year.

Queensland Coal production reflected planned maintenance across both port and mine operations. This was partially offset by record stripping and truck performance at BMA, utilisation of latent dragline capacity at Caval Ridge and higher wash-plant throughput at Poitrel following the purchase of the Red Mountain processing facility. The maintenance program of work is expected to continue through the December 2018 quarter. A longwall move at Broadmeadow is scheduled for the December 2018 quarter.

The Caval Ridge Southern Circuit project is progressing according to plan with the conveying of first coal expected in October 2018.

Energy coal – Energy coal production decreased by one per cent to 7 Mt. Guidance for the 2019 financial year is unchanged at approximately 28 to 29 Mt.

New South Wales Energy Coal production decreased by six per cent as improved stripping fleet performance was offset by lower bypass coal and a higher average strip ratio, consistent with the mine plan. Cerrejón production increased by six per cent as the prior quarter was impacted by adverse weather conditions.

 

 

BHP Operational Review for the quarter ended 30 September 2018    6


Other

Nickel production

 

            Sep Q18     Sep Q18  
            vs     vs  
     Sep Q18      Sep Q17     Jun Q18  

Nickel (kt)

     21.4        (8 %)      (16 %) 

Nickel – Nickel West production decreased by eight per cent to 21 kt. On 23 September 2018, operations at the Kalgoorlie smelter were suspended following a fire which caused damage to a localised area in the furnace building. The smelter returned to operation on 1 October 2018 and is expected to ramp up to full capacity from early November 2018. Planned maintenance at the Kwinana refinery was brought forward to align with the smelter outage and, as a result, production guidance for the 2019 financial year remains unchanged and is expected to be broadly in line with the 2018 financial year.

Potash project

 

Project and ownership

   Investment
(US$m)
    

Scope

  

Progress

Jansen Potash

(Canada)

100%

     2,700      Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.    The project is 81% complete and within the approved budget.

Minerals exploration

Minerals exploration expenditure for the September 2018 quarter was US$40 million, of which US$30 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. Consistent with our exploration focus on copper, in September 2018, BHP acquired an initial 6.1(4) per cent interest in SolGold Plc (SolGold), the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador. On 15 October 2018, BHP entered into an agreement to acquire an additional 100 million shares in SolGold, which would bring our total interest to approximately 11.2 per cent.

 

 

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

The following footnotes apply to this Operational Review:

 

(1)

Excludes production from Onshore US and Cerro Colorado.

(2)

2019 financial year unit cost guidance is based on exchange rates of AUD/USD 0.75 and USD/CLP 663.

(3)

On 19 June 2018, BHP announced it has entered into an agreement to sell the Cerro Colorado copper mine in Chile to EMR Capital. The total cash consideration consist of US$230 million to be paid to BHP after the closing of the transaction, plus approximately US$40 million in proceeds from the post-closing sale of certain copper inventory, and a contingent payment of up to US$50 million to be paid in the future, depending upon copper price performance.

(4)

As at 4 September 2018, BHP acquired a 6.1% interest in SolGold, which has been diluted to 6.0% as at 12 October 2018 as a result of the exercise of options by third parties.

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. Notwithstanding that this release may include production and other data from non-operated assets, non-operated assets are not included in the BHP Group.

 

 

BHP Operational Review for the quarter ended 30 September 2018    7


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BHP Operational Review for the quarter ended 30 September 2018    8


Production summary  
           Quarter ended      Year to date  
     BHP
interest
    Sep
2017
     Dec
2017
     Mar
2018
     Jun
2018
     Sep
2018
     Sep
2018
     Sep
2017
 

Petroleum (1)

                      

Petroleum

                      

Conventional

                      

Crude oil, condensate and NGL (Mboe)

       15,090        14,869        13,960        13,486        14,087        14,087        15,090  

Natural gas (bcf)

       107.3        96.1        82.9        90.7        112.3        112.3        107.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total (Mboe)

       32,973        30,886        27,777        28,603        32,804        32,804        32,973  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Onshore US - Discontinued Operations

                      

Crude oil, condensate and NGL (Mboe)

       7,079        7,423        6,256        8,266        7,351        7,351        7,079  

Natural gas (bcf)

       61.4        60.5        64.1        72.5        76.0        76.0        61.4  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total (Mboe)

       17,312        17,506        16,939        20,349        20,018        20,018        17,312  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     196.3        238.5        244.9        246.1        240.0        240.0        196.3  

Antamina

     33.8     35.9        33.8        35.2        34.6        37.0        37.0        35.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       232.2        272.3        280.1        280.7        277.0        277.0        232.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     71.9        76.1        69.4        70.1        55.4        55.4        71.9  

Pampa Norte (4)

     100     58.0        68.4        66.8        70.6        43.4        43.4        58.0  

Olympic Dam

     100     42.0        12.2        40.5        42.0        33.3        33.3        42.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       171.9        156.7        176.7        182.7        132.1        132.1        171.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper (kt)

       404.1        429.0        456.8        463.4        409.1        409.1        404.1  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     1,415        1,009        464        546        563        563        1,415  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,415        1,009        464        546        563        563        1,415  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     29,201        29,054        25,562        35,983        30,558        30,558        29,201  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       29,201        29,054        25,562        35,983        30,558        30,558        29,201  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     50,525        50,279        59,953        68,345        63,578        63,578        50,525  

Olympic Dam (refined gold)

     100     13,101        15,969        28,989        33,497        23,471        23,471        13,101  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       63,626        66,248        88,942        101,842        87,049        87,049        63,626  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     1,737        2,193        2,339        2,527        1,997        1,997        1,737  

Antamina

     33.8     1,596        1,331        1,189        1,321        1,309        1,309        1,596  

Olympic Dam (refined silver)

     100     131        135        248        278        213        213        131  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       3,464        3,659        3,776        4,126        3,519        3,519        3,464  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     880        243        1,118        1,123        559        559        880  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       880        243        1,118        1,123        559        559        880  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     402        579        420        261        464        464        402  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       402        579        420        261        464        464        402  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Operational Review for the quarter ended 30 September 2018    9


Production summary  
           Quarter ended      Year to date  
   BHP
interest
    Sep
2017
     Dec
2017
     Mar
2018
     Jun
2018
     Sep
2018
     Sep
2018
     Sep
2017
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     13,842        18,317        16,412        18,500        16,378        16,378        13,842  

Area C Joint Venture

     85     13,099        13,575        12,802        12,041        11,696        11,696        13,099  

Yandi Joint Venture

     85     14,559        16,348        15,802        17,339        16,870        16,870        14,559  

Jimblebar (6)

     85     6,283        4,583        4,669        15,092        16,333        16,333        6,283  

Wheelarra

     85     7,804        8,734        8,006        614        114        114        7,804  

Samarco

     50     —          —          —          —          —          —          —    
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       55,587        61,557        57,691        63,586        61,391        61,391        55,587  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     8,296        7,394        7,983        9,220        7,744        7,744        8,296  

BHP Mitsui Coal (8)

     80     2,271        2,291        2,396        2,789        2,614        2,614        2,271  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,567        9,685        10,379        12,009        10,358        10,358        10,567  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

Australia

     100     4,235        4,383        3,662        6,261        3,982        3,982        4,235  

Colombia

     33.3     2,497        2,914        2,444        2,762        2,658        2,658        2,497  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       6,732        7,297        6,106        9,023        6,640        6,640        6,732  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West (9)

     100     23.3        23.1        21.1        25.6        21.4        21.4        23.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       23.3        23.1        21.1        25.6        21.4        21.4        23.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt

                      

Saleable production (t)

                      

Nickel West

     100     280        263        240        277        249        249        280  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       280        263        240        277        249        249        280  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 2018    10


Production and sales report

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

Petroleum - Conventional (1)

                       

Bass Strait

                       

Crude oil and condensate

   (Mboe)      1,815        1,513        1,126        1,361        1,653        1,653        1,815  

NGL

   (Mboe)      1,950        1,584        1,170        1,428        1,840        1,840        1,950  

Natural gas

   (bcf)      42.6        32.9        20.5        29.9        35.1        35.1        42.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      10.9        8.6        5.7        7.8        9.3        9.3        10.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

North West Shelf

                       

Crude oil and condensate

   (Mboe)      1,474        1,442        1,377        1,267        1,514        1,514        1,474  

NGL

   (Mboe)      227        200        210        186        242        242        227  

Natural gas

   (bcf)      36.2        36.2        35.8        34.2        36.6        36.6        36.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      7.7        7.7        7.6        7.2        7.9        7.9        7.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pyrenees

                       

Crude oil and condensate

   (Mboe)      1,510        1,210        1,250        1,168        282        282        1,510  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.5        1.2        1.3        1.2        0.3        0.3        1.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Australia (2)

                       

Crude oil and condensate

   (Mboe)      9        8        8        7        7        7        9  

Natural gas

   (bcf)      16.1        13.3        13.4        13.9        13.8        13.8        16.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.7        2.2        2.2        2.3        2.3        2.3        2.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Atlantis (3)

                       

Crude oil and condensate

   (Mboe)      3,022        3,377        3,459        3,471        3,190        3,190        3,022  

NGL

   (Mboe)      218        195        248        217        215        215        218  

Natural gas

   (bcf)      1.6        1.8        1.8        1.5        1.5        1.5        1.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.5        3.9        4.0        3.9        3.7        3.7        3.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mad Dog (3)

                       

Crude oil and condensate

   (Mboe)      1,020        1,231        1,140        581        1,270        1,270        1,020  

NGL

   (Mboe)      44        72        55        27        61        61        44  

Natural gas

   (bcf)      0.1        0.2        0.2        0.1        0.2        0.2        0.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.1        1.3        1.2        0.6        1.4        1.4        1.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Shenzi (3)

                       

Crude oil and condensate

   (Mboe)      2,291        2,513        2,323        2,110        2,016        2,016        2,291  

NGL

   (Mboe)      141        184        140        151        122        122        141  

Natural gas

   (bcf)      0.4        0.5        0.4        0.4        0.4        0.4        0.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.5        2.8        2.5        2.3        2.2        2.2        2.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Trinidad/Tobago

                       

Crude oil and condensate

   (Mboe)      118        135        232        233        447        447        118  

Natural gas

   (bcf)      9.7        10.5        10.0        9.8        24.0        24.0        9.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.7        1.9        1.9        1.9        4.4        4.4        1.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Americas (3) (4)

                       

Crude oil and condensate

   (Mboe)      229        207        189        313        207        207        229  

NGL

   (Mboe)      5        3        3        22        3        3        5  

Natural gas

   (bcf)      0.1        0.1        —          0.3        —          —          0.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.3        0.2        0.2        0.4        0.2        0.2        0.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

UK

                       

Crude oil and condensate

   (Mboe)      40        22        43        38        36        36        40  

NGL

   (Mboe)      39        13        18        18        21        21        39  

Natural gas

   (bcf)      0.5        0.6        0.8        0.6        0.7        0.7        0.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.2        0.1        0.2        0.2        0.2        0.2        0.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Algeria

                       

Crude oil and condensate

   (Mboe)      938        960        969        888        961        961        938  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.9        1.0        1.0        0.9        1.0        1.0        0.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Operational Review for the quarter ended 30 September 2018    11


Production and sales report

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

Petroleum - Onshore US - Discontinued Operations (1)(5)

                       

Eagle Ford

                       

Crude oil and condensate

   (Mboe)      3,457        3,720        2,838        3,826        3,256        3,256        3,457  

NGL

   (Mboe)      1,856        2,100        1,555        1,767        1,919        1,919        1,856  

Natural gas

   (bcf)      13.8        14.4        12.6        13.9        13.8        13.8        13.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      7.6        8.2        6.5        7.9        7.5        7.5        7.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Permian

                       

Crude oil and condensate

   (Mboe)      1,179        1,142        1,398        1,903        1,478        1,478        1,179  

NGL

   (Mboe)      587        460        465        770        687        687        587  

Natural gas

   (bcf)      4.5        3.6        4.1        6.4        4.8        4.8        4.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.5        2.2        2.5        3.7        3.0        3.0        2.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Haynesville

                       

Crude oil and condensate

   (Mboe)      —          1        —          —          11        11        —    

NGL

   (Mboe)      —          —          —          —          —          —          —    

Natural gas

   (bcf)      21.5        22.0        28.7        33.1        39.0        39.0        21.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.6        3.7        4.8        5.5        6.5        6.5        3.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fayetteville

                       

Natural gas

   (bcf)      21.6        20.5        18.7        19.1        18.4        18.4        21.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.6        3.4        3.1        3.2        3.1        3.1        3.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Petroleum - Total (1)

                       

Conventional

                       

Crude oil and condensate

   (Mboe)      12,466        12,618        12,116        11,437        11,583        11,583        12,466  

NGL

   (Mboe)      2,624        2,251        1,844        2,049        2,504        2,504        2,624  

Natural gas

   (bcf)      107.3        96.1        82.9        90.7        112.3        112.3        107.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      32,973        30,886        27,777        28,603        32,804        32,804        32,973  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Onshore US - Discontinued Operations (5)

                       

Crude oil and condensate

   (Mboe)      4,636        4,863        4,236        5,729        4,745        4,745        4,636  

NGL

   (Mboe)      2,443        2,560        2,020        2,537        2,606        2,606        2,443  

Natural gas

   (bcf)      61.4        60.5        64.1        72.5        76.0        76.0        61.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      17,312        17,506        16,939        20,349        20,018        20,018        17,312  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)

Onshore US volumes are net of mineral holder royalties.

 

 

BHP Operational Review for the quarter ended 30 September 2018    12


Production and sales report

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

Copper

                 

Metals production is payable metal unless otherwise stated.

 

Escondida, Chile (1)

                 

Material mined

   (kt)      104,867       101,371       103,385       106,788       107,260       107,260       104,867  

Sulphide ore milled

   (kt)      24,080       30,260       32,203       31,732       30,513       30,513       24,080  

Average concentrator head grade

   (%)      1.06     0.98     0.96     0.96     0.94     0.94     1.06

Production ex mill

   (kt)      204.2       245.7       252.6       253.6       241.9       241.9       204.2  

Production

                 

Payable copper

   (kt)      196.3       238.5       244.9       246.1       240.0       240.0       196.3  

Copper cathode (EW)

   (kt)      71.9       76.1       69.4       70.1       55.4       55.4       71.9  

- Oxide leach

   (kt)      22.4       27.4       24.5       27.1       19.5       19.5       22.4  

- Sulphide leach

   (kt)      49.5       48.7       44.9       43.0       35.8       35.8       49.5  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total copper

   (kt)      268.2       314.6       314.3       316.2       295.4       295.4       268.2  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payable gold concentrate

   (troy oz)      50,525       50,279       59,953       68,345       63,578       63,578       50,525  

Payable silver concentrate

   (troy koz)      1,737       2,193       2,339       2,527       1,997       1,997       1,737  

Sales

                 

Payable copper

   (kt)      195.1       236.7       228.3       260.3       216.5       216.5       195.1  

Copper cathode (EW)

   (kt)      61.6       84.1       61.7       80.9       53.2       53.2       61.6  

Payable gold concentrate

   (troy oz)      50,525       50,279       59,953       68,345       63,578       63,578       50,525  

Payable silver concentrate

   (troy koz)      1,737       2,193       2,339       2,527       1,997       1,997       1,737  

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

    

Pampa Norte, Chile

                 

Cerro Colorado

                 

Material mined

   (kt)      21,381       20,191       17,766       17,918       18,488       18,488       21,381  

Ore milled

   (kt)      3,951       4,611       4,905       4,833       4,802       4,802       3,951  

Average copper grade

   (%)      0.62     0.59     0.58     0.58     0.53     0.53     0.62

Production

                 

Copper cathode (EW)

   (kt)      13.3       17.4       13.6       19.0       14.2       14.2       13.3  

Sales

                 

Copper cathode (EW)

   (kt)      12.3       17.7       13.7       20.9       13.8       13.8       12.3  

Spence

                 

Material mined

   (kt)      22,314       23,096       21,463       23,103       23,007       23,007       22,314  

Ore milled

   (kt)      5,375       4,919       5,144       4,009       5,642       5,642       5,375  

Average copper grade

   (%)      1.21     1.18     1.03     1.11     1.15     1.15     1.21

Production

                 

Copper cathode (EW)

   (kt)      44.7       51.0       53.2       51.6       29.2       29.2       44.7  

Sales

                 

Copper cathode (EW)

   (kt)      43.0       52.2       49.8       57.1       29.7       29.7       43.0  

 

 

BHP Operational Review for the quarter ended 30 September 2018    13


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

Copper (continued)

                       

Metals production is payable metal unless otherwise stated.

 

Antamina, Peru

                       

Material mined (100%)

   (kt)      59,216        59,125        58,085        59,002        62,470        62,470        59,216  

Sulphide ore milled (100%)

   (kt)      12,822        13,098        12,166        12,973        13,197        13,197        12,822  

Average head grades

                       

- Copper

   (%)      0.94      0.89      1.01      0.91      0.96      0.96      0.94

- Zinc

   (%)      0.99      0.93      1.01      1.19      1.10      1.10      0.99

Production

                       

Payable copper

   (kt)      35.9        33.8        35.2        34.6        37.0        37.0        35.9  

Payable zinc

   (t)      29,201        29,054        25,562        35,983        30,558        30,558        29,201  

Payable silver

   (troy koz)      1,596        1,331        1,189        1,321        1,309        1,309        1,596  

Payable lead

   (t)      1,415        1,009        464        546        563        563        1,415  

Payable molybdenum

   (t)      402        579        420        261        464        464        402  

Sales

                       

Payable copper

   (kt)      31.9        37.0        32.1        36.6        33.6        33.6        31.9  

Payable zinc

   (t)      25,224        30,340        26,456        33,088        31,822        31,822        25,224  

Payable silver

   (troy koz)      1,475        1,470        1,052        1,311        1,193        1,193        1,475  

Payable lead

   (t)      1,624        972        859        595        612        612        1,624  

Payable molybdenum

   (t)      168        693        500        388        208        208        168  

Olympic Dam, Australia

                       

Material mined (1)

   (kt)      1,851        1,391        2,056        2,201        2,044        2,044        1,851  

Ore milled

   (kt)      2,302        554        2,188        2,171        1,242        1,242        2,302  

Average copper grade

   (%)      2.10      2.22      2.36      2.12      2.05      2.05      2.10

Average uranium grade

   (kg/t)      0.55        0.58        0.71        0.69        0.62        0.62        0.55  

Production

                       

Copper cathode (ER and EW)

   (kt)      42.0        12.2        40.5        42.0        33.3        33.3        42.0  

Uranium oxide concentrate

   (t)      880        243        1,118        1,123        559        559        880  

Refined gold

   (troy oz)      13,101        15,969        28,989        33,497        23,471        23,471        13,101  

Refined silver

   (troy koz)      131        135        248        278        213        213        131  

Sales

                       

Copper cathode (ER and EW)

   (kt)      31.6        24.3        36.8        46.0        33.9        33.9        31.6  

Uranium oxide concentrate

   (t)      680        338        509        1,230        765        765        680  

Refined gold

   (troy oz)      22,435        17,999        20,715        35,714        21,145        21,145        22,435  

Refined silver

   (troy koz)      219        118        202        307        216        216        219  

 

(1)

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

 

 

BHP Operational Review for the quarter ended 30 September 2018    14


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

Iron Ore

                       

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

 

Pilbara, Australia

                       

Production

                       

Newman

   (kt)      13,842        18,317        16,412        18,500        16,378        16,378        13,842  

Area C Joint Venture

   (kt)      13,099        13,575        12,802        12,041        11,696        11,696        13,099  

Yandi Joint Venture

   (kt)      14,559        16,348        15,802        17,339        16,870        16,870        14,559  

Jimblebar (1)

   (kt)      6,283        4,583        4,669        15,092        16,333        16,333        6,283  

Wheelarra

   (kt)      7,804        8,734        8,006        614        114        114        7,804  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

   (kt)      55,587        61,557        57,691        63,586        61,391        61,391        55,587  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

   (kt)      64,287        71,611        67,048        72,145        69,342        69,342        64,287  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Lump

   (kt)      13,896        15,145        13,993        15,173        15,014        15,014        13,896  

Fines

   (kt)      40,733        45,769        44,332        47,730        46,527        46,527        40,733  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      54,629        60,914        58,325        62,903        61,541        61,541        54,629  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

   (kt)      63,322        70,733        67,799        71,385        69,421        69,421        63,322  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

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

 

Samarco, Brazil (1)

                       

Production

   (kt)      —          —          —          —          —          —          —    

Sales

   (kt)      —          14        25        —          —          —          —    

 

(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 2018    15


Production and sales report    

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

Coal

                       

Coal production is reported on the basis of saleable product.

 

Queensland Coal

                       

Production (1)

                       

BMA

                       

Blackwater

   (kt)      1,985        1,470        1,384        1,849        1,704        1,704        1,985  

Goonyella

   (kt)      1,639        1,369        2,314        2,639        1,989        1,989        1,639  

Peak Downs

   (kt)      1,602        1,367        1,723        1,658        1,131        1,131        1,602  

Saraji

   (kt)      1,414        1,198        1,240        1,201        1,111        1,111        1,414  

Daunia

   (kt)      662        718        547        629        620        620        662  

Caval Ridge

   (kt)      994        1,272        775        1,244        1,189        1,189        994  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

   (kt)      8,296        7,394        7,983        9,220        7,744        7,744        8,296  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Mitsui Coal (2)

                       

South Walker Creek

   (kt)      1,400        1,524        1,490        1,615        1,505        1,505        1,400  

Poitrel

   (kt)      871        767        906        1,174        1,109        1,109        871  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Mitsui Coal

   (kt)      2,271        2,291        2,396        2,789        2,614        2,614        2,271  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

   (kt)      10,567        9,685        10,379        12,009        10,358        10,358        10,567  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Coking coal

   (kt)      7,934        6,341        7,177        8,489        7,356        7,356        7,934  

Weak coking coal

   (kt)      3,150        2,816        2,598        2,866        2,813        2,813        3,150  

Thermal coal

   (kt)      102        173        168        85        141        141        102  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      11,186        9,330        9,943        11,440        10,310        10,310        11,186  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)   Production figures include some thermal coal.

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

    

    

NSW Energy Coal, Australia

                       

Production

   (kt)      4,235        4,383        3,662        6,261        3,982        3,982        4,235  

Sales

                       

Export thermal coal

   (kt)      3,622        4,048        3,181        5,795        3,549        3,549        3,622  

Inland thermal coal

   (kt)      405        411        400        160        332        332        405  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      4,027        4,459        3,581        5,955        3,881        3,881        4,027  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                       

Production

   (kt)      2,497        2,914        2,444        2,762        2,658        2,658        2,497  

Sales thermal coal - export

   (kt)      2,518        2,619        2,480        2,763        2,589        2,589        2,518  

 

 

BHP Operational Review for the quarter ended 30 September 2018    16


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

Nickel production is reported on the basis of saleable product

 

Nickel West, Australia

                       

Mt Keith

                       

Nickel concentrate

   (kt)      54.4        49.8        44.9        55.6        50.2        50.2        54.4  

Average nickel grade

   (%)      20.5        20.3        21.3        18.8        18.9        18.9        20.5  

Leinster

                       

Nickel concentrate

   (kt)      78.7        87.6        54.7        78.4        78.8        78.8        78.7  

Average nickel grade

   (%)      9.3        8.8        9.3        9.8        8.4        8.4        9.3  

Saleable production

                       

Refined nickel (1) (2)

   (kt)      16.0        17.7        19.2        18.5        19.8        19.8        16.0  

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

   (kt)      7.3        5.4        1.9        7.1        1.6        1.6        7.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel (1)

   (kt)      23.3        23.1        21.1        25.6        21.4        21.4        23.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt

   (t)      280        263        240        277        249        249        280  

Sales

                       

Refined nickel (1) (2)

   (kt)      16.3        17.7        19.5        17.5        19.3        19.3        16.3  

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

   (kt)      5.0        6.9        2.5        6.3        2.2        2.2        5.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel (1)

   (kt)      21.2        24.6        21.9        23.8        21.5        21.5        21.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cobalt

   (t)      280        263        240        277        249        249        280  

 

(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 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: October 17, 2018     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary