TIDMBHP
RNS Number : 2353M
BHP Group PLC
19 January 2021
Release Time IMMEDIATE
20 January
Date 2021
Release Number 01/21
BHP OPERATIONAL REVIEW
FOR THE HALF YEARED 31 DECEMBER 2020
Note: All guidance is subject to further potential impacts from
COVID-19 during the 2021 financial year.
-- We achieved another strong operational performance during the
half. Measures to counter the risk from COVID-19 remain in
place.
-- Record production was achieved at Western Australia Iron Ore
(WAIO) and record average concentrator throughput was delivered at
Escondida.
-- Group copper equivalent production was broadly flat in the
December 2020 half year. Strong underlying operational performance
offset the impacts of planned maintenance, natural field decline,
copper grade decline and adverse weather.
-- Production guidance for the 2021 financial year remains
unchanged for petroleum and metallurgical coal. Iron ore guidance
has increased to between 245 and 255 Mt as a result of the restart
of Samarco in December 2020. Copper guidance has been narrowed to
between 1,510 and 1,645 kt and reflects strong performance at
Escondida. Energy coal guidance has been reduced to between 21 and
23 Mt following a 91-day strike at Cerrejón.
-- Full year unit cost guidance(1) (based on exchange rates of
AUD/USD 0.70 and USD/CLP 769) remains unchanged for the 2021
financial year.
-- Our major projects under development are progressing to plan.
The Spence Growth Option achieved first production in December
2020, on schedule and on budget. The Jansen Stage 1 project remains
on track for Final Investment Decision in the middle of the 2021
calendar year. South Flank is tracking well and is on schedule for
first production in the middle of the 2021 calendar year.
-- In petroleum, we completed the acquisition of an additional
28% interest in Shenzi, a tier one asset with optionality, on 6
November 2020.
-- The financial results for the December 2020 half year are
expected to reflect certain items as summarised in the table on
page 3 and includes an impairment charge of between US$1.15 billion
and US$1.25 billion post tax (exceptional item) in relation to New
South Wales Energy Coal (NSWEC) and associated deferred tax assets
.
Dec H20 Dec Q20
Production (vs Dec19) (vs Sep Q20) Dec Q20 vs Sep Q20 commentary
----------------------- ----------- ------------- -----------------------------------------------------------------------------------------------
Petroleum (MMboe) 50.5 23.8 Lower volumes due to Hurricanes Delta and Zeta in the Gulf of Mexico and lower seasonal demand
at Bass Strait, partially offset by additional Shenzi volumes from 6 November 2020, on completi
on
of the acquisition of an increased working interest.
(12%) (11%)
Copper (kt) 841.3 428.1 Higher volumes as a result of quarterly concentrator throughput record at Escondida and planned
maintenance at Spence that impacted September 2020 quarter production.
(5%) 4%
Iron ore (Mt) 128.4 62.4 Lower volumes at WAIO reflects planned Mining Area C and South Flank major tie-in activity,
weather impacts and a temporary power disruption at Yarnima. Samarco
6% (6%) re-commenced iron ore pellet production in December 2020.
Metallurgical coal (Mt) 19.2 9.5 Lower volumes at Queensland Coal due to significant wet weather events impacting operations
and unplanned maintenance at South Walker Creek.
(5%) (2%)
Energy coal (Mt) 8.2 3.6 Lower volumes at NSWEC in response to reduced export shipping capacity at Newcastle Port and
lower volumes at Cerrejón as a result of a 91-day strike.
(30%) (23%)
Nickel (kt) 46.2 24.0 Higher volumes due to planned maintenance undertaken in the prior period.
31% 8%
1
Summary
BHP Chief Executive Officer, Mike Henry:
"BHP delivered strong safety and operational performance in the
first half of the 2021 financial year, including record production
at Western Australia Iron Ore and concentrator throughput at
Escondida.
Overall group production for the half was in line with previous
strong results. We achieved a number of milestones, bringing on new
production through the Spence Growth Option in Chile and the safe
restart of Samarco in Brazil. In petroleum, we increased our stake
in the high-quality Shenzi asset and Atlantis Phase 3 began
production ahead of schedule. Coal production was impacted by wet
weather in Australia and strike action in Colombia.
Our major development projects in iron ore, petroleum and potash
are progressing well. We continue to build on our strong
foundations, increasing future-facing options in copper and nickel
through exploration, partnerships and acquisitions.
We are well positioned to sustainably grow shareholder and
social value as the global economy recovers from the pandemic."
Operational performance
Production and guidance are summarised below.
Note: All guidance is subject to further potential impacts from
COVID-19 during the 2021 financial year.
Dec H20 Dec Q20 Dec Q20 Previous Current
Dec Dec vs vs vs FY21 FY21
Production H20 Q20 Dec H19 Dec Q19 Sep Q20 guidance guidance
--------------------- ------ ------ -------- -------- -------- ------------- -------------
Petroleum (MMboe) 50.5 23.8 (12%) (16%) (11%) 95 - 102 95 - 102 Upper half of range
Copper (kt) 841.3 428.1 (5%) (6%) 4% 1,480 - 1,645 1,510 - 1,645
Escondida (kt) 572.2 287.6 (5%) (7%) 1% 940 - 1,030 970 - 1,030 Narrowed range
Pampa Norte (kt) 96.8 54.3 (22%) (10%) 28% 240 - 270 240 - 270 Unchanged
Olympic Dam (kt) 99.1 47.6 16% (6%) (8%) 180 - 205 180 - 205 Unchanged
Antamina (kt) 73.2 38.6 (1%) 7% 12% 120 - 140 120 - 140 Unchanged
Samarco
Iron ore(i) (Mt) 128.4 62.4 6% 3% (6%) 244 - 253 245 - 255 1 - 2 Mt for FY21
WAIO (100% basis)
(Mt) 144.6 70.4 5% 3% (5%) 276 - 286 276 - 286 Unchanged
Metallurgical coal
(Mt) 19.2 9.5 (5%) (13%) (2%) 40 - 44 40 - 44
Queensland Coal (100%
basis) (Mt) 34.1 17.1 (5%) (13%) 0% 71 - 77 71 - 77 Lower half of range
Energy coal (Mt) 8.2 3.6 (30%) (41%) (23%) 22 - 24 21 - 23
NSWEC (Mt) 6.9 3.2 (7%) (14%) (11%) 15 - 17 15 - 17 Unchanged
Cerrejón (Mt) 1.4 0.3 (68%) (85%) (67%) 7 6 Lowered
Nickel (kt) 46.2 24.0 31% 75% 8% 85 - 95 85 - 95 Unchanged
(i) Iron ore comprises WAIO and Samarco (previous FY21 guidance
did not include production for Samarco).
2
Summary of disclosures
BHP expects its December 2020 half year financial results to
reflect certain items as summarised in the table below. The table
does not provide a comprehensive list of all items impacting the
period. The financial statements are the subject of ongoing work
that will not be finalised until the release of the financial
results on 16 February 2021. Accordingly the information is subject
to update.
H1 FY21
impact
Description US$M(i) Classification(ii)
-------------------------------------------------------------- ----------------- -----------------------------------
Gain from optimised settlement outcome for the cancellation of 100 Other income
power contracts as part of
a shift towards 100 per cent renewable energy at Escondida and
Spence
Unit costs are expected to be in line with full year guidance - Operating costs
(at guidance exchange rates),
with Petroleum and Escondida tracking towards the lower end of
guidance and Queensland Coal
and NSWEC tracking slightly above guidance at H1 FY21
Note: stronger Australian dollar and weaker Chilean peso than
guidance rates in the period(iii)
Business development and evaluation expense for Petroleum 106 Development and evaluation expense
Exploration expense (including petroleum and minerals 237 Exploration expense
exploration programs)
Premiums paid to acquire multi-currency hybrids following the 400 Net f inance costs
completion of value accretive
repurchase programs in September 2020 and November 2020
The Group's adjusted effective tax rate for H1 FY21 is - Taxation expense
expected to be within the guidance
range of 32 to 37 per cent
Completion of the transaction to acquire an additional 28 per 480 Investing cash outflow
cent working interest in Shenzi
Dividends paid to non-controlling interests 750 Financing cash outflow
Commissioning of the Spence desalination plant and 600 Net debt
capitalisation of the associated lease
The Group's net debt target range is US$12 to US$17 billion, - Net debt
with net debt expected to be
at the bottom of the range reflecting higher prices and strong
operational performance partially
offset by a short-term build in working capital and an adverse
foreign exchange impact on
expenses and capital expenditure
Impairment charge related to property, plant and equipment at 1,150 - 1,250 Exceptional item charge
NSWEC, and recoverability of
associated tax losses (after tax)
Costs directly attributable to COVID-19 (after tax)(iv) 200 - 250 Exceptional item charge
Financial impact on BHP Brasil of the Samarco dam failure Refer footnote(v) Exceptional item charge
(i) Numbers are not tax effected, unless otherwise noted.
(ii) There will be a corresponding balance sheet, cash flow
and/or income statement impact as relevant.
(iii) Average exchange rates for H1 FY21 of AUD/USD 0.72
(guidance rate AUD/USD 0.70) and USD/CLP 771 (guidance rate USD/CLP
769).
(iv) Relates to additional costs incurred at our operated assets
for the increased provision of health and hygiene services and the
impacts of maintaining social distancing requirements. For example,
additional accommodation and cleaning costs at the Spence Growth
Option project and additional port costs at WAIO due to quarantine
restrictions.
(v) Financial impact is the subject of ongoing work and is not yet finalised.
3
Major development projects
In December 2020, the Spence Growth Option achieved first
production on schedule and on budget. Given this, the Spence Growth
Option will not be reported in future Operational Reviews.
At the end of December 2020, BHP had four major projects under
development in petroleum, iron ore and potash, with a combined
budget of US$8.5 billion over the life of the projects. Our major
projects under development are tracking to plan.
On 15 January 2021, the Final Environmental Impact Study (FEIS)
was published for the Resolution Copper Mining (RCM) project, which
is a joint venture between Rio Tinto (55 per cent) and BHP (45 per
cent), managed by Rio Tinto. The FEIS and subsequent Land Exchange
are steps in an independent governmental, social and environmental
assessment and licencing process. Any mine construction is expected
to be several years away and will be subject to additional
regulatory and government approvals and stakeholder consultation,
including with the relevant Native American tribes to seek
consent.
The Jansen Stage 1 project in Canada is expected to be presented
to the BHP Board for Final Investment Decision in the middle of the
2021 calendar year.
Average realised prices
The average realised prices achieved for our major commodities
are summarised below.
Dec H20 Dec H20 Dec H20
vs vs vs
Average realised prices(i) Dec H20 Dec H19 Jun H20 FY20 Dec H19 Jun H20 FY20
------------------------------------- -------- -------- -------- ------ --------- --------- --------
Oil (crude and condensate) (US$/bbl) 41.40 60.64 37.51 49.53 (32%) 10% (16%)
Natural gas (US$/Mscf)(ii) 3.83 4.26 3.76 4.04 (10%) 2% (5%)
LNG (US$/Mscf) 4.45 7.62 6.87 7.26 (42%) (35%) (39%)
Copper (US$/lb) 3.32 2.60 2.39 2.50 28% 39% 33%
Iron ore (US$/wmt, FOB) 103.78 78.30 76.67 77.36 33% 35% 34%
Metallurgical coal (US$/t) 97.61 140.94 121.25 130.97 (31%) (19%) (25%)
Hard coking coal (US$/t)(iii) 106.30 154.01 133.51 143.65 (31%) (20%) (26%)
Weak coking coal (US$/t)(iii) 73.17 101.06 84.43 92.59 (28%) (13%) (21%)
Thermal coal (US$/t)(iv) 44.35 58.55 55.91 57.10 (24%) (21%) (22%)
Nickel metal (US$/t) 15,140 15,715 12,459 13,860 (4%) 22% 9%
(i) Based on provisional, unaudited estimates. Prices exclude
sales from equity accounted investments, third party product and
internal sales, and represent the weighted average of various sales
terms (for example: FOB, CIF and CFR), unless otherwise noted.
Includes the impact of provisional pricing and finalisation
adjustments.
(ii) Includes internal sales.
(iii) Hard coking coal (HCC) refers generally to those
metallurgical coals with a Coke Strength after Reaction (CSR) of 35
and above, which includes coals across the spectrum from Premium
Coking to Semi Hard Coking coals, while weak coking coal (WCC)
refers generally to those metallurgical coals with a CSR below
35.
(iv) Export sales only; excludes Cerrejón. Includes thermal coal
sales from metallurgical coal mines.
The large majority of oil sales were linked to West Texas
intermediate (WTI) or Brent based indices, with differentials
applied for quality, locational and transportation costs. The large
majority of iron ore shipments were linked to index pricing for the
month of shipment, with price differentials predominantly a
reflection of market fundamentals and product quality. Iron ore
sales were based on an average moisture rate of 7.3 per cent. The
large majority of metallurgical coal and energy coal exports were
linked to index pricing for the month of shipment or sold on the
spot market at fixed or index-linked prices, with price
differentials reflecting product quality. The majority of copper
cathodes sales were linked to index pricing for quotation periods
one month after month of shipment, and three to four months after
month of shipment for copper concentrates sales with price
differentials applied for location and treatment costs.
4
At 31 December 2020, the Group had 349 kt of outstanding copper
sales that were revalued at a weighted average price of US$3.52 per
pound. The final price of these sales will be determined over the
remainder of the 2021 financial year. In addition, 304 kt of copper
sales from the 2020 financial year were subject to a finalisation
adjustment in the current period. The provisional pricing and
finalisation adjustments will increase Underlying EBITDA(2) by
US$323 million in the 2021 financial year and are included in the
average realised copper price in the above table.
Corporate update
BHP expects to recognise an impairment charge of between US$1.15
billion and US$1.25 billion post tax in relation to NSWEC and
associated deferred tax assets, resulting in net operating assets
of between US$250 million and US$350 million (excluding tax). This
reflects current market conditions for Australian thermal coal, the
strengthening Australian dollar, changes to the mine plan and
updated assessment of the likelihood of recovering tax losses. This
will be reported as an exceptional item in the December 2020 half
year. The broader carrying value assessment of the Group's assets
is ongoing and will be finalised in conjunction with the release of
the financial results on 16 February 2021.
During the half year, BHP has successfully reduced gross debt by
a total of US$4.1 billion (excluding standard repayments on final
maturity). Two multi-currency hybrid repurchase programs were
completed (US$1.7 billion on 17 September 2020 and US$1.1 billion
on 23 November 2020). The programs were funded from surplus cash,
and will reduce future interest costs while also reducing the
Group's gross debt balance. The hybrid repurchase programs were
strongly value accretive, with this being higher than the premium
paid to acquire the hybrids. This premium over book value generated
an upfront accounting loss of approximately US$400 million
(pre-tax), which will be reported in net finance costs in the
December 2020 half year financial results. BHP also redeemed US$1.0
billion of 6.250 per cent hybrid notes on 19 October 2020 and the
remaining US$0.3 billion of 6.750 per cent hybrid notes on 30
December 2020. Both redemptions were also completed using surplus
cash. BHP remains in a strong liquidity position.
BHP remains committed to supporting the Renova Foundation and
its work to progress the remediation and compensatory programs to
restore the environment and re-establish communities affected by
the Samarco tragedy. Good progress continues to be made with 12th
Federal Court of Belo Horizonte in Brazil which is seeking to
expedite the remediation process related to the Fundão dam failure.
The R$155 billion (approximately US$28 billion) Federal Public
Prosecution Office claim remains suspended.
In December 2020, Samarco re-commenced iron ore pellet
production as part of a gradual restart of mining and processing
operations. BHP has agreed to fund a total of US$765 million in
further financial support for the Renova Foundation and Samarco.
This comprises US$725 million to fund the Renova Foundation until
31 December 2021, which will be offset against the Group's
provision for the Samarco dam failure, and a short-term facility of
up to US$40 million(3) to be made available to Samarco until 31
December 2021.
We will provide an update to the ongoing potential financial
impacts on BHP Brasil of the Samarco dam failure with the release
of the financial results on 16 February 2021. Any financial impacts
will continue to be treated as an exceptional item.
5
Petroleum
Production
Dec H20 Dec Q20 Dec Q20
vs vs vs
Dec H20 Dec Q20 Dec H19 Dec Q19 Sep Q20
-------- -------- --------- --------- ---------
Crude oil, condensate and natural gas liquids (MMboe) 22 11 (14%) (20%) (7%)
Natural gas (bcf) 169 79 (10%) (11%) (14%)
Total petroleum production (MMboe) 50 24 (12%) (16%) (11%)
Petroleum - Total petroleum production decreased by 12 per cent
to 50 MMboe. Guidance for the 2021 financial year remains unchanged
at between 95 and 102 MMboe. Volumes are expected to be in the
upper half of the guidance range as additional production from
Shenzi, following the acquisition of a further 28 per cent working
interest, is partially offset by the impacts of significant
hurricane activity in the Gulf of Mexico.
Crude oil, condensate and natural gas liquids production
decreased by 14 per cent to 22 MMboe due to lower demand at Bass
Strait and North West Shelf, the impacts of planned tie-in and
commissioning activities at Atlantis, and natural field decline
across the portfolio. Production was further impacted by lower
uptime at our Gulf of Mexico assets due to a more active hurricane
season. These impacts were partially offset by the earlier than
scheduled achievement of first production from the Atlantis Phase 3
project.
Natural gas production decreased by 10 per cent to 169 bcf,
reflecting the planned Ruby shutdowns, a decrease in tax barrels at
Trinidad and Tobago in accordance with the terms of our Production
Sharing Contract, lower domestic gas sales at Bass Strait and North
West Shelf, and natural field decline across the portfolio. This
decline was partially offset by higher domestic gas sales at
Macedon.
The acquisition of an additional 28 per cent working interest in
Shenzi was completed on 6 November 2020. This transaction is
consistent with our strategy of targeting counter-cyclical
acquisitions in high-quality producing or near producing assets and
brings BHP's working interest to 72 per cent. This adds
approximately 11,000 barrels of oil equivalent per day of
production (90 per cent oil) as of the transaction closing date of
6 November 2020.
Projects
Capital Initial
expenditure production
Project and US$M target
ownership date Capacity Progress
--------------------- ------------ ----------- --------------------------- -----------------------
Ruby 283 CY21 Five production wells On schedule and budget.
tied back into existing
operated processing
facilities, with capacity
to produce up to 16,000
gross barrels of oil
per day and 80 million
gross standard cubic
feet of natural gas
per day.
(Trinidad The overall project
& Tobago) is 62% complete.
68.46% (operator)
Mad Dog Phase 2,154 CY22 New floating production On schedule and budget.
2 facility with the capacity The overall project
(US Gulf of to produce up to 140,000 is 86% complete.
Mexico) gross barrels of crude
23.9% (non-operator) oil per day.
The Bass Strait West Barracouta project is on schedule and
budget, and is expected to achieve first production in the 2021
calendar year.
In December 2020, BHP and the North West Shelf joint venture
partners executed fully-termed Gas Processing Agreements for
processing third-party gas from Pluto and Waitsia projects through
the North West Shelf facilities.
6
Petroleum exploration
Exploration and appraisal wells drilled during the December 2020
quarter are summarised below.
Formation Total well
Well Location Target age BHP equity Spud date Water depth depth Status
------------ ----------- ------- ----------- ------------------- ----------- ----------- ---------- --------
Trinidad &
Tobago 20 August
Broadside-1 Block 3 Oil Miocene 65% (BHP Operator) 2020 2,019 m 7,064 m Dry hole
In Trinidad and Tobago, the Broadside-1 exploration well in the
Southern Licence reached the main reservoir on 22 October 2020 and
did not encounter hydrocarbons. The well was a dry hole and was
plugged and abandoned on 8 November 2020. The results are under
evaluation to determine next steps on the Southern Licences.
In Mexico, we commenced an Ocean Bottom Node seismic
acquisition(4) over the Trion field on 9 November 2020, as part of
our ongoing evaluation and analysis. The survey was 95 per cent
complete as of 31 December 2020 and will be completed in the March
2021 quarter. The results will be incorporated into the current
evaluation of the Trion opportunity.
Petroleum exploration expenditure for the December 2020 half
year was US$195 million, of which US$181 million was expensed. An
approximately US$450 million exploration and appraisal program is
being executed for the 2021 financial year.
Copper
Production
Dec H20 Dec Q20 Dec Q20
vs vs vs
Dec H20 Dec Q20 Dec H19 Dec Q19 Sep Q20
------- ------- -------- -------- --------
Copper (kt) 841 428 (5%) (6%) 4%
Zinc (t) 76,307 41,909 78% 86% 22%
Uranium (t) 1,819 945 (4%) 0% 8%
Copper - Total copper production decreased by five per cent to
841 kt. Guidance for the 2021 financial year narrowed to between
1,510 and 1,645 kt from between 1,480 and 1,645 kt.
For the December 2020 half year, our Chilean assets operated
with a reduction in their operational workforces of approximately
30 per cent as a result of the comprehensive plan we have
implemented for COVID-19. The operating environment across our
Chilean assets is expected to remain challenging, with reductions
in our workforce forecast to remain substantial during the March
2021 quarter.
Escondida copper production decreased by five per cent to 572 kt
with record concentrator throughput of 386 ktpd, enabled by
improved maintenance practices, offset by the impact of lower
concentrator feed grade and lower cathode production. As a result
of the reduced operational workforce and the need to balance mine
development and production requirements, concentrator throughput
continues to be prioritised over cathode production (approximately
30 kt impact on cathode volumes in the December 2020 half year).
Guidance for the 2021 financial year has been narrowed to between
970 and 1,030 kt from between 940 and 1,030 kt. Production is also
likely to be affected in the 2022 financial year by reduced
material movement in the 2021 financial year. Guidance of an annual
average of 1.2 Mt of copper production over the next five years
remains unchanged.
7
Pampa Norte copper production decreased 22 per cent to 97 kt,
largely due to planned maintenance at Spence and the impact of a
reduced operational workforce due to COVID-19 preventative
measures. The Spence Growth Option achieved first production in
December 2020. Guidance for the 2021 financial year remains
unchanged at between 240 and 270 kt, reflecting the reduced
operational workforce, the start-up of the Spence Growth Option and
expected grade decline of approximately five per cent (previously
expected to be approximately seven per cent but updated as a result
of mine plan optimisation at Spence).
Olympic Dam copper production increased by 16 per cent to 99 kt,
reflecting improved smelter stability and strong underground mine
performance. The physical replacement and commissioning of the
refinery crane remains on track to be completed in the March 2021
quarter. Guidance for the 2021 financial year remains unchanged at
between 180 and 205 kt. Production in the 2022 financial year is
expected to be lower as a result of the major smelter maintenance
campaign planned for the first half of the year.
Antamina copper production decreased by one per cent to 73 kt
and zinc production increased by 78 per cent to a record 76 kt,
reflecting lower copper head grades and higher zinc head grades.
Guidance for the 2021 financial year remains unchanged with copper
production of between 120 and 140 kt, and zinc production of
between 140 and 160 kt.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
-------------------- ----------- ---------- --------------------------------------------------------------------------------------------- ----------------------------------------------------------------------
Spence Growth Option 2,460 FY21 New 95 ktpd concentrator is expected to increase payable copper in concentrate production First production achieved in December 2020, on schedule and on budget.
by 185 ktpa in the first 10 years of operation and extend the mining operations by more than
50 years.
(Chile)
100%
The Spence Growth Option achieved first copper production in
December 2020, with first production of molybdenum expected around
the middle of the 2021 calendar year following completion of the
molybdenum plant. First copper sales are expected during the March
2021 quarter, while ramp up to full production capacity is expected
to take approximately 12 months. The commissioning of the
desalination plant and capitalisation of the associated US$600
million lease (approximate) also occurred in December 2020.
Iron Ore
Production
Dec H20 Dec Q20 Dec Q20
vs vs vs
Dec H20 Dec Q20 Dec H19 Dec Q19 Sep Q20
------- ------- -------- -------- --------
Iron ore production (kt) 128,434 62,394 6% 3% (6%)
Iron ore - Total iron ore production increased by six per cent
to 128 Mt. Guidance for the 2021 financial year has increased to
between 245 and 255 Mt, reflecting the restart of Samarco in
December 2020 (between 1 and 2 Mt).
WAIO production increased by six per cent to a six month record
128 Mt (145 Mt on a 100 per cent basis), reflecting record
production at Jimblebar and s trong performance across the supply
chain, with significant improvements in car dumper productivity and
reliability. This was partially offset by weather impacts and the
planned Mining Area C and South Flank major tie-in activity .
Production in the March 2021 quarter is expected to be impacted by
planned Ore Handling Plant maintenance across the mines and
continued Mining Area C and South Flank tie-in activity. Guidance
for the 2021 financial year remains unchanged at between 244 and
253 Mt (276 and 286 Mt on a 100 per cent basis).
8
Samarco re-commenced iron ore pellet production in December 2020
after meeting the licencing requirements to restart operations at
the Germano complex in Minas Gerais and Ubu complex in Espírito
Santo, Brazil. Samarco's operations were suspended following the
failure of the Fundão dam on 5 November 2015. Samarco's gradual
restart of operations incorporates one concentrator at the Germano
complex and a pelletising plant at Ubu, as well as a new system of
tailings disposal combining a confined pit and tailings filtering
system for dry stacking. Production for the 2021 financial year is
expected to be between 1 and 2 Mt. Production capacity of
approximately 8 Mtpa (100 per cent basis) is expected once ramped
up.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
------------- ----------- ---------- ------------------------------------------------------------------------------------------ --------------------------------------
South Flank 3,061 Mid-CY21 Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi On schedule and budget.
mine.
(Australia) The overall project is 90% complete.
85%
Coal
Production
Dec H20 Dec Q20 Dec Q20
vs vs vs
Dec H20 Dec Q20 Dec H19 Dec Q19 Sep Q20
------- ------- -------- -------- --------
Metallurgical coal (kt) 19,212 9,522 (5%) (13%) (2%)
Energy coal (kt) 8,238 3,576 (30%) (41%) (23%)
Metallurgical coal - Metallurgical coal production decreased by
five per cent to 19 Mt (34 Mt on a 100 per cent basis). G uidance
for the 2021 financial year remains unchanged at between 40 and 44
Mt (71 and 77 Mt on a 100 per cent basis) with a stronger second
half performance projected in line with our plans. Volumes are
expected to be at the lower half of the guidance range following
significant wet weather impacts during the December 2020 quarter.
We continue to monitor for any potential impacts on volumes from
restrictions on coal imports into China.
At Queensland Coal, volumes were lower as a result of planned
wash plant maintenance at Saraji and Caval Ridge and significant
wet weather impacts from La Niña across most operations. South
Walker Creek production decreased largely due to higher strip
ratios and lower yields. Poitrel was also impacted by lower yields
during the period.
Energy coal - Energy coal production decreased by 30 per cent to
8 Mt. Following a strike at Cerrejón, guidance for the 2021
financial year has been reduced to between 21 and 23 Mt from
between 22 and 24 Mt .
NSWEC production decreased by seven per cent to 6.9 Mt. This
decrease reflects significant weather impacts and higher strip
ratios, as well as lower volumes due to an increased proportion of
washed coal in response to reduced port capacity, following damage
to a shiploader at the Newcastle port in November 2020, and
widening price quality differentials. Guidance for the 2021
financial year remains unchanged at between 15 and 17 Mt.
Cerrejón production decreased by 68 per cent to 1.4 Mt due to a
91-day strike that started on 31 August 2020. During the period,
Cerrejón successfully completed negotiations with Sintracarbón and
signed a new Collective Labor Agreement, effective from 1 July 2020
to 31 December 2023. Operations restarted in the first week of
December 2020 and are continuing to ramp up. The impact of the
strike was 1.5 Mt. Guidance for the 2021 financial year has been
reduced to approximately 6 Mt from 7 Mt.
9
Other
Nickel production
Dec H20 Dec Q20 Dec Q20
vs vs vs
Dec H20 Dec Q20 Dec H19 Dec Q19 Sep Q20
------- ------- -------- -------- --------
Nickel (kt) 46.2 24.0 31% 75% 8%
Nickel - Nickel West production increased by 31 per cent to 46
kt reflecting strong performance from the new mines and improved
operational stability following major quadrennial maintenance
shutdowns in the prior period. Guidance for the 2021 financial year
remains unchanged at between 85 and 95 kt.
Potash project
Project and Investment
ownership US$M Scope Progress
------------- ---------- ------------------------------------------------------------------------------------ ----------------------------
Jansen Potash 2,972 Investment to finish the excavation and lining of the production and service shafts, The project is 89% complete.
and to
continue the installation of essential surface infrastructure and utilities.
(Canada)
100%
Minerals exploration
Minerals exploration expenditure for the December 2020 half year
was US$86 million, of which US$56 million was expensed. Greenfield
minerals exploration is predominantly focused on advancing copper
targets within Chile, Ecuador, Mexico, Peru, Canada, Australia and
the south-west United States.
At Oak Dam in South Australia, following a successful third
phase of drilling, the exploration project has been transferred to
the Minerals Australia Planning and Technical team for assessment,
and next stage resource definition drilling to inform future design
is expected to commence around the middle of the 2021 calendar
year.
During the half year, we added to our early stage optionality in
future facing commodities with a signed agreement with Midland
Exploration to undertake a nickel exploration alliance in
north-eastern Quebec (August 2020), the completion of the
acquisition of the nickel Honeymoon Well tenements and a 50 per
cent interest in the Albion Downs North and Jericho exploration
joint ventures (September 2020) and an Option Agreement with
Encounter Resources covering the 4,500 km(2) prospective Elliott
Copper Project in the Northern Territory (September 2020).
10
Variance analysis relates to the relative performance of BHP
and/or its operations during the December 2020 half year compared
with the December 2019 half year, unless otherwise noted.
Production volumes, sales volumes and capital and exploration
expenditure from subsidiaries are reported on a 100 per cent basis;
production and sales volumes from equity accounted investments and
other operations are reported on a proportionate consolidation
basis. Numbers presented may not add up precisely to the totals
provided due to rounding. Copper equivalent production based on
2020 financial year average realised prices.
The following footnotes apply to this Operational Review:
(1) 2021 financial year unit cost guidance: Petroleum
US$11-12/boe, Escondida US$1.00-1.25/lb, WAIO US$13-14/t and
Queensland Coal US$69-75/t; based on exchange rates of AUD/USD 0.70
and USD/CLP 769.
(2) Underlying EBITDA is used to help assess current operational
profitability excluding the impacts of sunk costs (i.e.
depreciation from initial investment). Underlying EBITDA is
earnings before net finance costs, depreciation, amortisation and
impairments, taxation expense, discontinued operations and
exceptional items. Underlying EBITDA includes BHP's share of
profit/(loss) from investments accounted for using the equity
method including net finance costs, depreciation, amortisation and
impairments and taxation expense/(benefit).
(3) Short-term facility of up to US$40 million includes US$4
million related to the decommissioning of the Germano dam which
will be offset against the Group's provision.
(4) Permit: EIA - ASEA/UGI/DGGEERNCM/0122/2018, expediente
28TM2018X0042. CNH Revised Appraisal Plan Approval - Resolucion
CNH.14.001/2020.
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 barrels of oil per day (MMbpd); million
cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes
per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil
equivalent (Mboe); thousand barrels of oil equivalent per day
(Mboe/d); thousand ounces (koz); thousand standard cubic feet
(Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa);
thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes
(wmt).
In this release, the terms 'BHP', the 'Group', 'BHP Group',
'we', 'us', 'our' and ourselves' are used to refer to BHP Group
Limited, BHP Group plc and, except where the context otherwise
requires, their respective subsidiaries as defined in note 29
'Subsidiaries' in section 5.1 of BHP's 30 June 2020 Annual Report
and Form 20-F. Those terms do not include non-operated assets.
Notwithstanding that this release may include production, financial
and other information from non-operated assets, non-operated assets
are not included in the BHP Group and, as a result, statements
regarding our operations, assets and values apply only to our
operated assets unless stated otherwise. Our non-operated assets
include Antamina, Cerrejón, Samarco, Atlantis, Mad Dog, Bass Strait
and North West Shelf. BHP Group cautions against undue reliance on
any forward-looking statement or guidance in this release,
particularly in light of the current economic climate and
significant volatility, uncertainty and disruption arising in
connection with COVID-19. These forward looking statements are
based on information available as at the date of this release and
are not guarantees or predictions of future performance and involve
known and unknown risks, uncertainties and other factors, many of
which are beyond our control and which may cause actual results to
differ materially from those expressed in the statements contained
in this release.
11
Further information on BHP can be found at: bhp.com
Authorised for lodgement by:
Geof Stapledon
Acting Group Company Secretary
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
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12
Production summary
Year to
Quarter ended date
------------------------------------------- ----------------
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2019 2020 2020 2020 2020 2020 2019
---------- ------- ------- ------- ------- ------- ------- -------
Petroleum (1)
Petroleum
Production
Crude oil, condensate
and NGL (Mboe) 13,412 11,589 11,355 11,507 10,729 22,236 25,919
Natural gas (bcf) 88.7 80.7 89.8 90.9 78.5 169.4 189.1
Total (Mboe) 28,195 25,039 26,322 26,657 23,812 50,469 57,436
Copper (2)
Copper
Payable metal in concentrate
(kt)
Escondida (3) 57.5% 240.3 220.1 228.5 236.7 236.7 473.4 477.3
Pampa Norte (4) 100.0% - - - - 0.7 0.7 -
Antamina 33.8% 36.2 32.9 17.8 34.6 38.6 73.2 73.8
Total 276.5 253.0 246.3 271.3 276.0 547.3 551.1
Cathode (kt)
Escondida (3) 57.5% 68.4 69.6 65.5 47.9 50.9 98.8 124.3
Pampa Norte (4) 100% 60.0 64.3 54.5 42.5 53.6 96.1 123.9
Olympic Dam 100% 50.5 38.4 47.6 51.5 47.6 99.1 85.6
Total 178.9 172.3 167.6 141.9 152.1 294.0 333.8
Total copper (kt) 455.4 425.3 413.9 413.2 428.1 841.3 884.9
Lead
Payable metal in concentrate
(t)
Antamina 33.8% 383 621 262 690 993 1,683 788
Total 383 621 262 690 993 1,683 788
Zinc
Payable metal in concentrate
(t)
Antamina 33.8% 22,483 31,789 13,736 34,398 41,909 76,307 42,937
Total 22,483 31,789 13,736 34,398 41,909 76,307 42,937
13
Production summary
Quarter ended Year to date
------------------------------------------- ------------------
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2019 2020 2020 2020 2020 2020 2019
---------- ------- ------- ------- ------- ------- -------- --------
Gold
Payable metal in concentrate
(troy oz)
Escondida (3) 57.5% 49,209 35,990 43,422 42,332 47,789 90,121 98,010
Olympic Dam (refined
gold) 100% 35,382 33,235 34,150 36,608 23,837 60,445 78,587
Total 84,591 69,225 77,572 78,940 71,626 150,566 176,597
Silver
Payable metal in concentrate
(troy koz)
Escondida (3) 57.5% 1,798 1,390 1,599 1,580 1,627 3,207 3,424
Antamina 33.8% 1,173 1,216 626 1,326 1,767 3,093 2,274
Olympic Dam (refined
silver) 100% 203 241 295 157 193 350 448
Total 3,174 2,847 2,520 3,063 3,587 6,650 6,146
Uranium
Payable metal in
concentrate (t)
Olympic Dam 100% 949 776 1,016 874 945 1,819 1,886
Total 949 776 1,016 874 945 1,819 1,886
Molybdenum
Payable metal in
concentrate (t)
Antamina 33.8% 527 491 243 284 192 476 932
Total 527 491 243 284 192 476 932
Iron Ore
Iron Ore
Production (kt)
(5)
Newman 85% 15,766 16,449 17,110 16,410 17,637 34,047 32,082
Area C Joint Venture 85% 12,727 12,179 13,973 11,889 11,567 23,456 25,347
Yandi Joint Venture 85% 14,857 17,491 19,087 17,666 16,413 34,079 32,684
Jimblebar (6) 85% 17,045 13,911 16,559 20,075 16,740 36,815 31,284
Wheelarra 85% - - - - - - 3
Samarco 50% - - - - 37 37 -
Total 60,395 60,030 66,729 66,040 62,394 128,434 121,400
14
Production summary
Quarter ended Year to date
---------------------------------------- ----------------
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2019 2020 2020 2020 2020 2020 2019
---------- ------- ------ ------- ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt)
(7)
BMA 50% 8,723 6,869 9,078 7,365 7,539 14,904 15,628
BHP Mitsui Coal (8) 80% 2,201 2,353 2,536 2,325 1,983 4,308 4,654
Total 10,924 9,222 11,614 9,690 9,522 19,212 20,282
Energy coal
Production (kt)
NSW Energy Coal 100% 3,763 3,810 4,887 3,624 3,229 6,853 7,355
Cerrejón 33.3% 2,315 1,978 767 1,038 347 1,385 4,370
Total 6,078 5,788 5,654 4,662 3,576 8,238 11,725
Other
Nickel
Saleable production
(kt)
Nickel West (9) 100% 13.7 20.9 23.9 22.2 24.0 46.2 35.3
Total 13.7 20.9 23.9 22.2 24.0 46.2 35.3
Cobalt
Saleable production
(t)
Nickel West 100% 120 132 312 238 236 474 331
Total 120 132 312 238 236 474 331
(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 1,000 Mboe.
(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.
15
Production and sales report
Quarter ended Year to date
-------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2019 2020 2020 2020 2020 2020 2019
------ ------ ------ ------ ------ ------- -------
Petroleum (1)
Bass Strait
Crude oil and condensate (Mboe) 1,427 926 1,231 1,305 1,003 2,308 2,836
NGL (Mboe) 1,405 958 1,493 1,660 1,057 2,717 3,215
Natural gas (bcf) 27.8 18.4 28.1 34.1 23.4 57.5 64.4
Total petroleum
products (Mboe) 7,465 4,957 7,408 8,648 5,960 14,608 16,784
North West Shelf
Crude oil and condensate (Mboe) 1,376 1,266 1,260 1,215 1,180 2,395 2,713
NGL (Mboe) 200 191 203 162 165 327 402
Natural gas (bcf) 32.9 35.0 35.2 29.6 30.4 60.0 65.0
Total petroleum
products (Mboe) 7,059 7,287 7,334 6,310 6,412 12,722 13,948
Pyrenees
Crude oil and condensate (Mboe) 934 917 971 837 826 1,663 1,913
Total petroleum
products (Mboe) 934 917 971 837 826 1,663 1,913
Other Australia
(2)
Crude oil and condensate (Mboe) 1 1 1 1 1 2 9
Natural gas (bcf) 11.4 11.2 11.9 12.7 12.6 25.3 23.4
Total petroleum
products (Mboe) 1,901 1,874 1,987 2,118 2,101 4,219 3,909
Atlantis (3)
Crude oil and condensate (Mboe) 3,525 2,769 2,223 2,421 2,385 4,806 6,284
NGL (Mboe) 245 178 54 154 147 301 437
Natural gas (bcf) 1.8 1.3 1.1 1.2 1.1 2.3 3.2
Total petroleum
products (Mboe) 4,070 3,170 2,456 2,775 2,715 5,490 7,254
Mad Dog (3)
Crude oil and condensate (Mboe) 1,202 1,272 1,297 1,211 930 2,141 2,298
NGL (Mboe) 52 55 33 48 38 86 101
Natural gas (bcf) 0.2 0.2 0.3 0.2 0.1 0.3 0.4
Total petroleum
products (Mboe) 1,287 1,355 1,374 1,292 985 2,277 2,466
Shenzi (3) (4)
Crude oil and condensate (Mboe) 1,671 1,645 1,584 1,395 1,764 3,159 3,016
NGL (Mboe) 94 94 40 71 87 158 164
Natural gas (bcf) 0.3 0.3 0.4 0.3 0.3 0.6 0.5
Total petroleum
products (Mboe) 1,815 1,791 1,686 1,516 1,901 3,417 3,263
Trinidad/Tobago
Crude oil and condensate (Mboe) 166 97 72 102 96 198 341
Natural gas (bcf) 14.2 14.0 12.8 12.8 10.5 23.3 32.1
Total petroleum
products (Mboe) 2,533 2,427 2,201 2,235 1,846 4,081 5,691
Other Americas
(3) (5)
Crude oil and condensate (Mboe) 230 344 198 212 190 402 415
NGL (Mboe) 4 22 5 2 11 13 6
Natural gas (bcf) 0.1 0.3 - - 0.1 0.1 0.1
Total petroleum
products (Mboe) 251 412 209 214 218 432 438
16
Production and sales report
Quarter ended Year to date
---------------------------------------------------- -------------
Dec Mar Jun Sep Dec Dec Dec
2019 2020 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------------
Algeria
Crude oil and condensate (Mboe) 880 854 690 711 849 1,560 1,769
Total petroleum
products (Mboe) 880 854 690 711 849 1,560 1,769
Petroleum (1)
Total production
Crude oil and condensate (Mboe) 11,412 10,091 9,527 9,410 9,224 18,634 21,594
NGL (Mboe) 2,000 1,498 1,828 2,097 1,505 3,602 4,325
Natural gas (bcf) 88.7 80.7 89.8 90.9 78.5 169.4 189.1
Total (Mboe) 28,195 25,039 26,322 26,657 23,812 50,469 57,436
(1) Total boe conversions are based on 6 bcf of natural gas
equals 1,000 Mboe. Negative production figures represent
finalisation adjustments.
(2) Other Australia includes Minerva and Macedon. Minerva ceased production in September 2019.
(3) Gulf of Mexico volumes are net of royalties.
(4) BHP completed the acquisition of an additional 28% working
interest in Shenzi on 6 November 2020, taking its total working
interest to 78%.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
Copper
Metals production is payable metal unless
otherwise stated.
Escondida, Chile (1)
Material mined (kt) 100,057 107,268 75,062 83,357 97,274 180,631 201,083
Sulphide ore milled (kt) 33,659 33,440 34,755 34,733 36,303 71,036 67,615
Average concentrator
head grade (%) 0.87% 0.82% 0.81% 0.85% 0.83% 0.84% 0.86%
Production ex mill (kt) 246.1 230.0 236.8 243.9 246.1 490.0 491.1
Production
Payable copper (kt) 240.3 220.1 228.5 236.7 236.7 473.4 477.3
Copper cathode (EW) (kt) 68.4 69.6 65.5 47.9 50.9 98.8 124.3
- Oxide leach (kt) 28.3 29.3 26.8 15.3 18.0 33.3 50.2
- Sulphide leach (kt) 40.1 40.2 38.7 32.6 32.9 65.5 74.2
Total copper (kt) 308.7 289.7 294.0 284.6 287.6 572.2 601.6
(troy
Payable gold concentrate oz) 49,209 35,990 43,422 42,332 47,789 90,121 98,010
(troy
Payable silver concentrate koz) 1,798 1,390 1,599 1,580 1,627 3,207 3,424
Sales
Payable copper (kt) 248.3 212.0 221.0 237.1 244.3 481.4 470.5
Copper cathode (EW) (kt) 70.6 65.9 72.1 46.5 47.7 94.2 122.9
(troy
Payable gold concentrate oz) 49,209 35,990 43,422 42,332 47,789 90,121 98,010
(troy
Payable silver concentrate koz) 1,798 1,390 1,599 1,580 1,627 3,207 3,424
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
17
Production and sales report
Quarter ended Year to date
------------------------------------------- ------------------
Dec Mar Jun Sep Dec Dec Dec
2019 2020 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- -------- --------
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 18,102 18,710 15,734 12,618 6,750 19,368 33,173
Ore milled (kt) 5,009 4,574 4,553 4,036 3,562 7,598 9,004
Average copper
grade (%) 0.57% 0.54% 0.60% 0.66% 0.58% 0.62% 0.56%
Production
Copper cathode
(EW) (kt) 13.8 20.4 16.9 15.8 15.8 31.6 30.2
Sales
Copper cathode
(EW) (kt) 15.8 18.3 18.7 14.6 16.6 31.2 30.3
Spence
Material mined (kt) 23,132 23,304 24,082 18,260 18,485 36,745 44,172
Ore milled (1) (kt) 5,133 5,191 2,829 4,408 6,809 11,217 10,768
Average copper
grade (2) (%) 0.90% 0.87% 0.95% 1.10% 0.76% 0.89% 0.93%
Production
Payable copper (kt) - - - - 0.7 0.7 -
Copper cathode
(EW) (kt) 46.2 43.9 37.6 26.7 37.8 64.5 93.7
Sales
Payable copper (kt) - - - - - - -
Copper cathode
(EW) (kt) 44.3 44.8 41.0 24.1 40.9 65.0 91.0
(1) December 2020 quarter comprised of preliminary concentrator
throughput of 1,207 kt and cathode throughput of 5,602 kt.
(2) December 2020 quarter weighted average of preliminary
concentrate grade of 0.43% and cathode grade of 0.83%.
Copper (continued)
Metals production is payable metal unless
otherwise stated.
Antamina, Peru
Material mined
(100%) (kt) 63,224 52,872 13,975 45,458 57,029 102,487 122,523
Sulphide ore milled
(100%) (kt) 13,637 12,906 6,736 13,202 14,083 27,285 26,758
Average head grades
- Copper (%) 0.96% 0.88% 0.91% 0.94% 0.97% 0.96% 0.97%
- Zinc (%) 0.82% 1.09% 1.02% 1.30% 1.30% 1.30% 0.81%
Production
Payable copper (kt) 36.2 32.9 17.8 34.6 38.6 73.2 73.8
Payable zinc (t) 22,483 31,789 13,736 34,398 41,909 76,307 42,937
(troy
Payable silver koz) 1,173 1,216 626 1,326 1,767 3,093 2,274
Payable lead (t) 383 621 262 690 993 1,683 788
Payable molybdenum (t) 527 491 243 284 192 476 932
Sales
Payable copper (kt) 43.6 30.8 18.2 33.8 40.7 74.5 76.7
Payable zinc (t) 23,808 31,007 11,680 32,769 45,109 77,878 44,004
(troy
Payable silver koz) 1,396 815 581 1,310 1,728 3,038 2,350
Payable lead (t) 432 151 188 748 945 1,693 1,276
Payable molybdenum (t) 400 531 223 392 352 744 573
18
Production and sales report
Quarter ended Year to date
---------------------------------------------------- -------------
Dec Mar Jun Sep Dec Dec Dec
2019 2020 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------------
Olympic Dam, Australia
Material mined
(1) (kt) 2,347 1,920 1,928 2,203 2,379 4,582 4,824
Ore milled (kt) 2,153 2,178 2,416 2,443 2,377 4,820 4,353
Average copper
grade (%) 2.36% 2.31% 2.17% 2.03% 2.02% 2.03% 2.33%
Average uranium
grade (kg/t) 0.71 0.69 0.60 0.53 0.60 0.56 0.68
Production
Copper cathode
(ER and EW) (kt) 50.5 38.4 47.6 51.5 47.6 99.1 85.6
Payable uranium (t) 949 776 1,016 874 945 1,819 1,886
(troy
Refined gold oz) 35,382 33,235 34,150 36,608 23,837 60,445 78,587
(troy
Refined silver koz) 203 241 295 157 193 350 448
Sales
Copper cathode
(ER and EW) (kt) 49.0 41.4 48.5 49.5 46.6 96.1 81.1
Payable uranium (t) 638 702 1,293 859 999 1,858 1,416
(troy
Refined gold oz) 36,507 36,956 37,743 36,054 21,390 57,444 76,580
(troy
Refined silver koz) 202 259 270 222 165 387 452
(1) Material mined refers to run of mine ore mined and hoisted.
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia Iron Ore, Australia
Production
Newman (kt) 15,766 16,449 17,110 16,410 17,637 34,047 32,082
Area C Joint
Venture (kt) 12,727 12,179 13,973 11,889 11,567 23,456 25,347
Yandi Joint
Venture (kt) 14,857 17,491 19,087 17,666 16,413 34,079 32,684
Jimblebar (1) (kt) 17,045 13,911 16,559 20,075 16,740 36,815 31,284
Wheelarra (kt) - - - - - - 3
Total production (kt) 60,395 60,030 66,729 66,040 62,357 128,397 121,400
Total production
(100%) (kt) 68,044 68,168 75,589 74,152 70,407 144,559 137,301
Sales
Lump (kt) 15,982 15,617 17,252 17,056 16,703 33,759 30,767
Fines (kt) 45,785 44,764 50,904 48,390 46,124 94,514 91,294
Total (kt) 61,767 60,381 68,156 65,446 62,827 128,273 122,061
Total sales
(100%) (kt) 69,481 68,439 77,048 73,355 70,772 144,127 137,772
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
(1)
Production (kt) - - - - 37 37 -
Sales (kt) - - - - - - -
(1) Samarco commenced iron ore pellet production in December
2020 after meeting the licencing requirements to restart operations
at the Germano complex in Minas Gerais and Ubu complex in Espírito
Santo, Brazil.
19
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Dec Mar Jun Sep Dec Dec Dec
2019 2020 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis
of saleable product.
Queensland Coal,
Australia
Production (1)
BMA
Blackwater (kt) 1,734 1,063 1,703 1,184 1,737 2,921 2,779
Goonyella (kt) 2,662 1,963 2,651 2,312 2,152 4,464 4,151
Peak Downs (kt) 1,386 1,339 1,635 1,487 1,213 2,700 2,809
Saraji (kt) 1,325 1,025 1,399 817 1,043 1,860 2,539
Daunia (kt) 579 447 588 490 464 954 1,135
Caval Ridge (kt) 1,037 1,032 1,102 1,075 930 2,005 2,215
Total BMA (kt) 8,723 6,869 9,078 7,365 7,539 14,904 15,628
Total BMA (100%) (kt) 17,446 13,738 18,156 14,730 15,078 29,808 31,256
BHP Mitsui Coal (2)
South Walker Creek (kt) 1,196 1,577 1,264 1,238 1,118 2,356 2,574
Poitrel (kt) 1,005 776 1,272 1,087 865 1,952 2,080
Total BHP Mitsui
Coal (kt) 2,201 2,353 2,536 2,325 1,983 4,308 4,654
Total Queensland
Coal (kt) 10,924 9,222 11,614 9,690 9,522 19,212 20,282
Total Queensland
Coal (100%) (kt) 19,647 16,091 20,692 17,055 17,061 34,116 35,910
Sales
BMA
Coking coal (kt) 7,179 6,417 7,547 6,187 6,531 12,718 13,737
Weak coking coal (kt) 971 644 1,040 977 936 1,913 1,605
Thermal coal (kt) 30 224 183 58 3 61 124
Total BMA (kt) 8,180 7,285 8,770 7,222 7,470 14,692 15,466
Total BMA (100%) (kt) 16,360 14,570 17,540 14,444 14,940 29,384 30,932
BHP Mitsui Coal (2)
Coking coal (kt) 596 667 778 671 604 1,275 1,337
Weak coking coal (kt) 1,504 1,691 1,756 1,545 1,518 3,063 3,336
Total BHP Mitsui
Coal (kt) 2,100 2,358 2,534 2,216 2,122 4,338 4,673
Total Queensland
Coal (kt) 10,280 9,643 11,304 9,438 9,592 19,030 20,139
Total Queensland
Coal (100%) (kt) 18,460 16,928 20,074 16,660 17,062 33,722 35,605
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
NSW Energy Coal, Australia
Production (kt) 3,763 3,810 4,887 3,624 3,229 6,853 7,355
Sales
Export thermal coal (kt) 3,952 3,403 4,871 3,168 3,940 7,108 7,027
Inland thermal coal
(1) (kt) - - - - - - 567
Total (kt) 3,952 3,403 4,871 3,168 3,940 7,108 7,594
(1) The domestic sales contract ended in the September 2019 quarter.
Cerrejón, Colombia
Production (kt) 2,315 1,978 767 1,038 347 1,385 4,370
Sales thermal coal
- export (kt) 2,261 2,028 1,143 994 370 1,364 4,330
20
Production and sales report
Quarter ended Year to date
-------------------------------------------------- --------------------
Dec Mar Jun Sep Dec Dec Dec
2019 2020 2020 2020 2020 2020 2019
------- ------ ------ ------ ------ --------- --------------------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 31.5 42.8 60.2 64.4 55.7 120.1 75.2
Average nickel
grade (%) 17.3 15.8 16.5 15.8 14.7 15.3 17.9
Leinster
Nickel concentrate (kt) 56.6 57.8 72.0 66.2 72.8 139.0 123.8
Average nickel
grade (%) 8.6 9.8 10.2 9.0 9.5 9.3 9.4
Saleable production
Refined nickel
(1) (2) (kt) 11.1 16.6 20.5 17.3 20.4 37.7 28.5
Intermediates and
nickel by-products
(1) (3) (kt) 2.6 4.3 3.4 4.9 3.6 8.5 6.8
Total nickel (1) (kt) 13.7 20.9 23.9 22.2 24.0 46.2 35.3
Cobalt by-products (t) 120 132 312 238 236 474 331
Sales
Refined nickel
(1) (2) (kt) 10.6 16.8 19.7 17.1 20.9 38.0 27.6
Intermediates and
nickel by-products
(1) (3) (kt) 2.7 2.9 4.2 4.6 2.6 7.2 8.4
Total nickel (1) (kt) 13.3 19.7 23.9 21.7 23.5 45.2 36.0
Cobalt by-products (t) 131 132 312 238 237 475 343
(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.
21
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