TIDMBHP
RNS Number : 1944N
BHP Group Limited
19 January 2023
Release Time IMMEDIATE
Date 19 January 2023
Release Number 1/23
BHP OPERATIONAL REVIEW
FOR THE HALF YEARED 31 DECEMBER 2022
-- We remained fatality free at our operated assets for the
fourth consecutive year and continued to deliver reliable
operational performance during the quarter.
-- Western Australia Iron Ore (WAIO) achieved record production
of 146 Mt (100% basis) for the half year.
-- Production guidance for the 2023 financial year remains
unchanged, with Escondida and BHP Mitsubishi Alliance (BMA)
trending to the low end of their respective guidance ranges.
-- Full year unit cost guidance(1) for Escondida and WAIO
remains unchanged. Unit cost guidance for BMA and New South Wales
Energy Coal (NSWEC) has been increased, largely reflecting
production impacts from significant wet weather and inflationary
pressures.
-- BHP entered into a Scheme Implementation Deed with OZ
Minerals Ltd (OZL) to acquire 100% of OZL by way of a scheme
arrangement for a cash price of A$28.25 per OZL share.
BHP Chief Executive Officer, Mike Henry:
"BHP delivered safe and reliable operating performance in the
first half of the 2023 financial year. Employees and contractors
across BHP continued to prioritise safety, resulting in the fourth
consecutive year without a fatality.
WA Iron Ore (WAIO) delivered record production for the half year
through strong supply chain performance, supported by the ongoing
ramp-up at South Flank. Copper production at Escondida rose despite
road blockades in Chile in the December quarter and the Spence
Growth Option continued to ramp up, while Olympic Dam's ongoing
smelter performance saw near-record material processing and record
gold production. In Queensland, coal production was again impacted
by heavy rainfall. As foreshadowed, we are seeing the impact of
inflation across our global supply chains and continue to focus on
productivity and controllable costs.
BHP believes China will be a stabilising force when it comes to
commodity demand in the 2023 calendar year, with OECD nations
experiencing economic headwinds. China's pro-growth policies,
including in the property sector, and an easing of COVID-19
restrictions are expected to support progressive improvement from
the difficult economic conditions of the first half. China is
expected to achieve its fifth straight year of over 1 billion
tonnes of steel production.
During the quarter, we continued to progress a number of growth
pathways to shape our portfolio toward future facing commodities
and reduce our operational emissions. In December 2022, BHP's
scheme implementation deed to acquire 100% of Australian copper
producer OZ Minerals received unanimous support from the OZ
Minerals Board ahead of a shareholder vote in the coming
months."
1
Dec H22 Dec Q22
Production (vs Dec H21) (vs Sep Q22) Dec Q22 vs Sep Q22 commentary
----------------------- ------------- ------------- ----------------------------------------------------------------------------------------------
Copper (kt) 834.4 424.3 Higher volumes at Escondida due to higher throughput, higher concentrate volumes at Spence
reflecting the ramp up of the Spence Growth Option, and strong volumes at Olympic Dam as a
result of planned refinery maintenance in the prior period.
12% 3%
Iron ore (Mt) 132.0 66.9 Record production at WAIO in the month of December 2022 due to strong supply chain performance
and reduced impacts of labour constraints and wet weather.
2% 3%
Metallurgical coal (Mt) 13.6 7.0 Higher volumes due to improved strip ratios and the planned longwall move at Broadmeadow in
the prior period, partially offset by continued significant wet weather.
5% 4%
Energy coal (Mt) 5.5 2.9 Higher volumes due to improved operating conditions, including less significant wet weather
impacts and reduced labour shortages in the December 2022 quarter, partially offset by planned
wash plant maintenance completed in November 2022.
(24%) 9%
Nickel (kt) 38.4 17.7 Lower volumes due to planned maintenance at the smelter and refinery.
(2%) (14%)
Summary
Operational performance
Production and guidance are summarised below.
Dec H22 Dec Q22 Dec Q22 Previous Current
Dec Dec vs vs vs FY23 FY23
Production H22 Q22 Dec H21 Dec Q21 Sep Q22 guidance guidance
Copper (kt) 834.4 424.3 12% 16% 3% 1,635 - 1,825 1,635 - 1,825
Escondida (kt) 510.7 258.0 5% 5% 2% 1,080 - 1,180 1,080 - 1,180 Low end
Pampa Norte (kt) 147.3 76.7 8% 12% 9% 240 - 290 240 - 290 Unchanged
Olympic Dam (kt) 104.1 54.4 138% 283% 9% 195 - 215 195 - 215 Unchanged
Antamina (kt) 72.3 35.2 (3%) (8%) (5%) 120 - 140 120 - 140 Unchanged
Iron ore (Mt) 132.0 66.9 2% 1% 3% 249 - 260 249 - 260
WAIO (Mt) 129.7 65.8 2% 1% 3% 246 - 256 246 - 256 Unchanged
WAIO (100% basis) (Mt) 146.4 74.3 1% 1% 3% 278 - 290 278 - 290 Unchanged
Samarco (Mt) 2.2 1.1 8% 6% (5%) 3 - 4 3 - 4 Unchanged
Metallurgical coal - BMA (Mt) 13.6 7.0 5% 10% 4% 29 - 32 29 - 32
BMA (100% basis) (Mt) 27.2 13.9 5% 10% 4% 58 - 64 58 - 64 Low end
Energy coal - NSWEC (Mt) 5.5 2.9 (24%) (4%) 9% 13 - 15 13 - 15 Unchanged
Nickel (kt) 38.4 17.7 (2%) (18%) (14%) 80 - 90 80 - 90 Unchanged
Summary of disclosures
BHP expects its financial results for the half year ended 31
December 2022 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 21 February 2023. Accordingly, the information
in the table below contains preliminary information that is subject
to update and finalisation.
3
H1 FY23
impact
Description US$M(i) Classification(ii)
---------------------------------------------------------------------------- ------------------ --------------------
Unit costs for the December 2022 half year at Escondida are expected to be - Operating costs
towards the upper
end of full year guidance; unit costs at WAIO, BMA and NSWEC are expected to
be above full
year guidance (at guidance exchange rates)
Note: weaker Australian dollar and Chilean peso than guidance rates in the
period(iii)
For the 2023 financial year, unit costs at WAIO and Escondida are tracking - Operating costs
towards the upper
end of full year guidance (at guidance exchange rates)
Unit cost guidance for BMA has been increased to between US$100 and US$105
per tonne (at guidance
exchange rates) reflecting full year volumes tracking to the low end of
production guidance
due to significant wet weather, inventory movements and inflationary
pressures
Unit cost guidance for NSWEC has been increased to between US$84 and US$91
per tonne (at guidance
exchange rates) reflecting production impacts from record wet weather,
inflationary pressures
and price-linked logistics costs
Exploration expense 127 Exploration expense
The Group's adjusted effective tax rate for H1 FY23 is expected to be - Taxation expense
slightly below the full
year guidance range of 30 to 35 per cent
Working capital movements relating to royalties, net price impacts on 1,000-1,400 Operating cash flow
receivables and payables,
and other movements
Settlement of derivative related to the funding of the final FY22 dividend 210 Operating cash flow
(note: together
with the payment of US$8.7 billion reported in financing cash outflow, the
combined payment
of US$8.9 billion represents the final dividend determined on 16 August 2022
in the financial
results for the year ended 30 June 2022)
Additional net proceeds(iv) received from the sale of BHP's 80 per cent 74 Investing cash flow
interest in BMC
Dividends paid to non-controlling interests 527 Financing cash flow
Financial impact on BHP Brasil of the Samarco dam failure Refer footnote (v) Exceptional item
The financial impact is expected to primarily relate to amortisation of
discounting on the
provision and the impact of foreign exchange
i Numbers are not tax effected, unless otherwise noted.
ii There will be a corresponding balance sheet, cash flow and/or
income statement impact as relevant, unless otherwise noted.
iii Average exchange rates for H1 FY23 of AUD/USD 0.67 (guidance
rate AUD/USD 0.72) and USD/CLP 920 (guidance rate USD/CLP 830).
iv Second purchase price instalment offset by working capital adjustments .
v Financial impact is the subject of ongoing work and is not yet
finalised. See corporate update section for further information on
Samarco.
Average realised prices
The average realised prices achieved for our major commodities
are summarised below.
Dec H22 Dec H22 Dec H22
vs vs vs
Average realised prices(i) Dec H22 Dec H21 Jun H22 FY22 Dec H21 Jun H22 FY22
--------------------------------- ------- ------- ------- ------ -------- -------- -------
Copper (US$/lb) 3.49 4.31 4.02 4.16 (19%) (13%) (16%)
Iron ore (US$/wmt, FOB) 85.46 113.54 112.65 113.10 (25%) (24%) (24%)
Metallurgical coal (US$/t) 268.73 259.71 423.82 347.10 3% (37%) (23%)
Hard coking coal (US$/t)(ii) 270.65 278.60 437.60 366.82 (3%) (38%) (26%)
Weak coking coal (US$/t)(ii) 252.12 218.65 382.56 296.51 15% (34%) (15%)
Thermal coal (US$/t)(iii) 354.30 137.68 302.60 216.78 157% 17% 63%
Nickel metal (US$/t) 24,362 19,651 27,399 23,275 24% (11%) 5%
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 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.
iii Includes thermal coal sales from metallurgical coal mines.
4
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 for the December 2022 half year were based
on an average moisture rate of 6.8 per cent. The large majority of
metallurgical coal and energy coal exports were linked to index
pricing for the month of scheduled shipment or priced on the spot
market at fixed or index-linked prices, with price differentials
reflecting product quality. The large majority of copper cathodes
sales were linked to index price 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.
At 31 December 2022, the Group had 319 kt of outstanding copper
sales that were revalued at a weighted average price of US$3.80 per
pound. The final price of these sales will be determined over the
remainder of the 2023 financial year. In addition, 354 kt of copper
sales from the 2022 financial year were subject to a finalisation
adjustment in the current period. The provisional pricing and
finalisation adjustments will decrease Underlying EBITDA by US$59
million in the December 2022 half year and are included in the
average realised copper price in the above table.
Corporate update
Portfolio
In December 2022, BHP announced the signing of a Scheme
Implementation Deed (SID) with OZ Minerals Ltd (OZL) to acquire 100
per cent of OZL through a scheme of arrangement for a cash price of
A$28.25 per OZL share. The SID confirms the terms of the scheme and
BHP's non-binding indicative proposal announced on 18 November
2022. The implementation of the scheme is subject to satisfaction
of certain conditions including OZL shareholder approval. The OZL
Board has unanimously recommended that OZL shareholders vote in
favour of the scheme in the absence of a superior proposal and
subject to an independent expert concluding that the scheme is in
the best interests of OZL shareholders.
In October 2022, BHP agreed to invest an additional US$50
million (the second investment) in the Kabanga Nickel Project
(Kabanga) in Tanzania, subject to the satisfaction of customary
conditions precedent. On closing, BHP's equity stake in Kabanga
will increase to 14.3 per cent. In addition, BHP has signed an
agreement with Kabanga Nickel Limited giving BHP the option to
increase its interest in Kabanga to 51 per cent.
Decarbonisation
Throughout the December 2022 quarter we continued to make
progress towards our decarbonisation targets and goals and
supported efforts to reduce greenhouse gas (GHG) emissions across
our value chain.
In October 2022, BHP entered into an agreement with
ArcelorMittal, Mitsubishi Heavy Industries and Mitsubishi
Development for a multi-year trial of carbon capture technology,
which will involve a feasibility and design study to support
progress to full scale deployment, and trials at two of
ArcelorMittal's steel plants.
In November 2022, BHP signed a renewable Power Purchase
Agreement (PPA) with Neoen , which is expected to meet half of
Olympic Dam's electricity needs from the 2026 financial year, based
on current forecast demand, and allow Olympic Dam to record a net
zero emission position for the contracted volume of supply.
Samarco
In December 2022, BHP agreed to fund US$915 million in further
financial support for the Renova Foundation. The funding is for the
2023 calendar year and will be offset against the Group's provision
for the Samarco dam failure.
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 21 February 2023. Any financial impacts
will continue to be treated as an exceptional item.
5
Copper
Production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
Copper (kt) 834.4 424.3 12% 16% 3%
Zinc (t) 62,614 29,929 0% 1% (8%)
Uranium (t) 1,760 943 115% 229% 15%
Copper - Total copper production increased by 12 per cent to 834
kt. Guidance for the 2023 financial year remains unchanged at
between 1,635 and 1,825 kt.
Escondida copper production increased by five per cent to 511 kt
primarily due to higher concentrator feed grade of 0.79 per cent,
compared to 0.72 per cent in the December 2021 half year. The
higher grade was partially offset by lower throughput and the
impact of road blockades across Chile in the December 2022 quarter,
which reduced availability of some key mine supplies. Full year
production is trending towards the low end of the guidance range of
between 1,080 and 1,180 kt as a result of lower than expected
concentrator feed grade and throughput. Production is weighted to
the second half of the year, with concentrator feed grade expected
to improve compared to the December 2022 half year. Medium term
guidance of 1.2 Mtpa of copper production on average over the next
five years remains unchanged.
Pampa Norte copper production increased by eight per cent to 147
kt reflecting the continued ramp up of the Spence Growth Option
(SGO). Guidance for the 2023 financial year remains unchanged at
between 240 and 290 kt. The SGO plant modifications started in
August 2022 and are planned to be completed in the 2023 calendar
year. Expected capital expenditure for the works remains unchanged
at approximately US$100 million. Further studies are ongoing for
additional capacity uplift at SGO. Cerro Colorado continues to
transition towards planned closure at the end of the 2023 calendar
year.
At Spence, we continue to closely monitor previously identified
Tailings Storage Facility (TSF) anomalies. We have reduced the
volume of water in the tailings facility and continue to work with
the local regulatory agencies, including on the implementation of a
remediation plan for the TSF. The SGO concentrator continues to
operate with no impact to production or market guidance. Spence is
expected to reach an average of approximately 270 ktpa of
production for four years (including cathodes) following the
completion of the SGO plant modifications and remediation of TSF
anomalies.
Olympic Dam copper production increased by 138 per cent to 104
kt primarily as a result of the major smelter maintenance campaign
(SCM21) in the prior period. Continued strong concentrator and
smelter performance resulted in near record material milled and
concentrate smelted in the half year. Record gold production was
also achieved in the half year as a result of debottlenecking
initiatives implemented in the prior year. Copper production
guidance for the 2023 financial year remains unchanged at between
195 and 215 kt.
Antamina copper production decreased by three per cent to 72 kt
reflecting lower copper head grades partially offset by higher
throughput. Zinc production was flat at 63 kt reflecting lower zinc
head grades offset by higher throughput. Guidance remains unchanged
for the 2023 financial year, with copper production of between 120
and 140 kt, and zinc production of between 115 and 135 kt.
6
Iron ore
Production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
-------- ------- -------- -------- --------
Iron ore production (kt) 131,975 66,902 2% 1% 3%
Iron ore - Total iron ore production increased by two per cent
to 132 Mt. Guidance for the 2023 financial year remains unchanged
at between 249 and 260 Mt.
WAIO achieved record production of 130 Mt (146 Mt on a 100 per
cent basis) in the December 2022 half year. This reflects continued
strong supply chain performance, including improved car dumper
utilisation, and lower COVID-19 related impacts than the prior
period. This was partially offset by wet weather impacts in the
September 2022 quarter. South Flank ramp up to full production
capacity of 80 Mtpa (100 per cent basis) by the end of the 2024
financial year remains on track. Natural variability in the ore
grade is expected as the mine progresses through the close to
surface material, however this is expected to stabilise as we move
deeper into the ore body and achieve full ramp up.
WAIO production guidance for the 2023 financial year remains
unchanged at between 246 and 256 Mt (278 and 290 Mt on a 100 per
cent basis) and reflects the tie-in of the port debottlenecking
project (PDP1) as well as the continued ramp up of South Flank in
the second half of the year.
Samarco production increased by eight per cent to 2.2 Mt (BHP
share), reflecting the successful ramp up of one concentrator,
following the recommencement of iron ore pellet production in
December 2020. Guidance for the 2023 financial year remains
unchanged at between 3 and 4 Mt (BHP share).
Coal
Production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
------- ------- -------- -------- --------
Metallurgical coal (kt) 13,614 6,952 5% 10% 4%
Energy coal (kt) 5,473 2,851 (24%) (4%) 9%
Metallurgical coal - BMA production increased by five per cent
to 14 Mt (27 Mt on a 100 per cent basis) driven by an improvement
in underlying truck productivity, in particular for the autonomous
fleets following completion of the transitions at Goonyella and
Daunia, higher yields as a result of mine sequencing, as well as
the reduced impact of labour constraints relative to the prior
period. This was partially offset by the impact of significant wet
weather during the December 2022 half year(2) . Full year
production is trending to the low end of the guidance range of
between 29 and 32 Mt (58 and 64 Mt on a 100 per cent basis) as a
result of significant wet weather. An additional long wall move at
Broadmeadow has been accelerated into the June 2023 quarter due to
improved mining rates.
Negotiations for the BMA Enterprise Agreement (EA) 2022 have
concluded with a successful workforce ballot on 22 December 2022.
The EA applies to the Goonyella Riverside, Peak Downs, Saraji and
Blackwater mines. The new EA has been approved by the Fair Work
Commission and will operate from 19 January 2023 for a period of
three years.
7
The Queensland Government's decision to raise coal royalties to
the highest maximum rate in the world makes Queensland
uncompetitive and puts investment and jobs at risk. We see strong
long-term demand from global steelmakers for Queensland's high
quality metallurgical coal, however in the absence of government
policy that is both competitive and predictable, we are unable to
make significant new investments in Queensland. This increase to
royalties will impact the local businesses, suppliers and
communities in Central Queensland where we operate.
Energy coal - NSWEC production decreased by 24 per cent to 5 Mt,
reflecting the ongoing impacts of record wet weather, continued
labour shortages, planned wash plant maintenance during the
December 2022 quarter and an increased proportion of washed coal.
Higher quality coals made up approximately 90 per cent of sales,
compared to approximately 80 per cent in the December 2021 half
year. Production guidance for the 2023 financial year remains
unchanged at between 13 and 15 Mt.
Other
Nickel production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
------- ------- -------- -------- --------
Nickel (kt) 38.4 17.7 (2%) (18%) (14%)
Nickel - Nickel West production decreased by two per cent to 38
kt, reflecting the slower than expected ramp up of the refinery
following planned smelter and refinery maintenance during the
December 2022 quarter. Guidance for the 2023 financial year remains
unchanged at between 80 and 90 kt, with volumes weighted to the
second half of the financial year.
Potash - Our major potash project under development at Jansen is
tracking to plan. For the 2023 financial year, we will continue to
focus on civil and mechanical construction on the surface and
underground, as well as equipment procurement and port
construction.
Projects
Capital Initial
expenditure production
Project and US$M target
ownership date Capacity Progress
------------ ------------ ----------- ------------------------------- --------------
Jansen Stage 5,723 End-CY26 Design, engineering and Project is 16%
1 construction of an underground complete
potash mine and surface
infrastructure, with capacity
to produce 4.35 Mtpa.
(Canada)
100%
8
Minerals exploration
Minerals exploration expenditure for the December 2022 half year
was US$156 million, of which US$127 million was expensed.
In August 2022, we announced the establishment of BHP Xplor , an
innovative accelerator program to support early-stage mineral
exploration companies to find critical resources, such as copper
and nickel. The program merges concepts from venture capital and
early-stage accelerators offering participants in-kind services,
mentorship, and networking opportunities. Applications for the
program closed on 31 October 2022 and we received a significant
number of applications from around the world. We have selected
seven companies into the accelerator program which begins in
January 2023.
We initiated greenfield exploration activities in southern
Colombia and continue to progress activity in Australia, Canada,
Chile, Ecuador, north-west Mexico, Peru and the south-west United
States.
At Oak Dam in South Australia, BHP is continuing next stage
resource definition drilling with six drill rigs.
Following a review of prospectivity and core results, BHP
acquired a 19.9 per cent interest via a placement in Brixton
Metals, providing exposure to a large block of ground prospective
for copper in northern British Columbia, Canada.
The termination agreement in respect of the Earn-In Agreement
over the Tarqui copper project in Ecuador has been signed by BHP
and Luminex. BHP's exit from the project was finalised in early
January 2023.
9
Variance analysis relates to the relative performance of BHP
and/or its operations during the six months ended December 2022
compared with the six months ended December 2021, 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.
The following footnotes apply to this Operational Review:
1 2023 financial year unit cost guidance: Escondida
US$1.25-1.45/lb, WAIO US$18-19/t, BMA US$100-105/t and NSWEC
US$84-91/t; based on exchange rates of AUD/USD 0.72 and USD/CLP
830.
2 493 mm of rainfall recorded at Moranbah in the December 2022
half year compared to 368 mm in the December 2021 half year.
The following abbreviations may have been used throughout this
report: 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); megawatt (MW);
metre (m); millimetre (mm); million tonnes (Mt); million tonnes per
annum (Mtpa); ounces (oz); pounds (lb); thousand ounces (koz);
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 and, except where the context otherwise requires, our
subsidiaries. Refer to note 28 'Subsidiaries' of the Financial
Statements in BHP's 30 June 2022 Appendix 4E for a list of our
significant subsidiaries. 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 and Samarco. 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.
10
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11
Production summary
Quarter ended Year to date
------------------------------------------- ------------------
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2021 2022 2022 2022 2022 2022 2021
---------- ------- ------- ------- ------- ------- -------- --------
Copper (1)
Copper
Payable metal in
concentrate (kt)
Escondida (2) 57.5% 196.2 178.2 233.5 203.1 208.3 411.4 390.9
Pampa Norte (3) 100.0% 24.2 32.4 28.2 28.6 32.5 61.1 50.6
Antamina 33.8% 38.4 36.1 39.6 37.1 35.2 72.3 74.2
Total 258.8 246.7 301.3 268.8 276.0 544.8 515.7
Cathode (kt)
Escondida (2) 57.5% 48.4 48.2 55.8 49.6 49.7 99.3 97.4
Pampa Norte (3) 100% 44.1 35.8 49.0 42.0 44.2 86.2 85.2
Olympic Dam 100% 14.2 39.0 55.7 49.7 54.4 104.1 43.7
Total 106.7 123.0 160.5 141.3 148.3 289.6 226.3
Total copper (kt) 365.5 369.7 461.8 410.1 424.3 834.4 742.0
Lead
Payable metal in
concentrate (t)
Antamina 33.8% 277 282 181 228 114 342 655
Total 277 282 181 228 114 342 655
Zinc
Payable metal in
concentrate (t)
Antamina 33.8% 29,603 32,732 27,576 32,685 29,929 62,614 62,892
Total 29,603 32,732 27,576 32,685 29,929 62,614 62,892
Gold
Payable metal in
concentrate (troy
oz)
Escondida (2) 57.5% 42,937 36,303 45,770 38,236 48,402 86,638 84,899
Pampa Norte (3) 100% 5,776 7,929 8,198 5,521 3,875 9,396 12,743
Olympic Dam (refined
gold) 100% 37,805 29,355 26,080 47,184 43,280 90,464 64,082
Total 86,518 73,587 80,048 90,941 95,557 186,498 161,724
Silver
Payable metal in
concentrate (troy
koz)
Escondida (2) 57.5% 1,462 1,270 1,311 1,210 1,510 2,720 2,753
Pampa Norte (3) 100% 215 261 262 252 245 497 488
Antamina 33.8% 1,308 1,191 1,212 1,190 923 2,113 2,675
Olympic Dam (refined
silver) 100% 258 149 145 295 261 556 449
Total 3,243 2,871 2,930 2,947 2,939 5,886 6,365
12
Production summary
Quarter ended Year to date
------------------------------------------- ------------------
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2021 2022 2022 2022 2022 2022 2021
---------- ------- ------- ------- ------- ------- -------- --------
Uranium
Payable metal in
concentrate (t)
Olympic Dam 100% 287 781 776 817 943 1,760 818
Total 287 781 776 817 943 1,760 818
Molybdenum
Payable metal in
concentrate (t)
Pampa Norte (3) 100% - - 71 34 216 250 -
Antamina 33.8% 217 190 249 262 348 610 359
Total 217 190 320 296 564 860 359
Iron Ore
Iron Ore
Production (kt) (4)
Newman 85% 14,577 11,940 14,063 14,053 16,172 30,225 31,038
Area C Joint Venture 85% 22,911 24,888 27,685 26,971 26,302 53,273 41,858
Yandi Joint Venture 85% 12,261 8,418 6,409 5,497 5,613 11,110 24,095
Jimblebar (5) 85% 15,324 13,444 15,005 17,404 17,720 35,124 30,333
Samarco 50% 1,029 994 1,000 1,148 1,095 2,243 2,077
Total 66,102 59,684 64,162 65,073 66,902 131,975 129,401
Coal
Metallurgical coal
Production (kt) (6)
BHP Mitsubishi Alliance
(BMA) 50% 6,300 7,944 8,183 6,662 6,952 13,614 13,015
Total 6,300 7,944 8,183 6,662 6,952 13,614 13,015
Energy coal
Production (kt)
NSW Energy Coal 100% 2,967 2,577 3,919 2,622 2,851 5,473 7,205
Total 2,967 2,577 3,919 2,622 2,851 5,473 7,205
Other
Nickel
Saleable production
(kt)
Nickel West 100% 21.5 18.7 18.8 20.7 17.7 38.4 39.3
Total 21.5 18.7 18.8 20.7 17.7 38.4 39.3
Cobalt
Saleable production
(t)
Nickel West 100% 220 125 110 238 93 331 397
Total 220 125 110 238 93 331 397
------- ------- ------- ------- ------- -------- --------
1 Metal production is reported on the basis of payable metal.
2 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
3 Includes Cerro Colorado and Spence.
4 Iron ore production is reported on a wet tonnes basis.
5 Shown on a 100% basis. BHP interest in saleable production is 85%.
6 Metallurgical coal production is reported on the basis of
saleable product. Production figures may include some thermal
coal.
Throughout this report figures in italics indicate that this
figure has been adjusted since it was previously reported.
13
Production and sales report
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2021 2022 2022 2022 2022 2022 2021
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Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile
(1)
Material mined (kt) 117,284 107,676 115,409 110,248 101,987 212,235 231,158
Concentrator throughput (kt) 35,787 30,235 34,318 32,894 33,911 66,805 69,315
Average copper grade
- concentrator (%) 0.71% 0.80% 0.88% 0.83% 0.76% 0.79% 0.72%
Production ex mill (kt) 203.6 191.5 239.5 214.6 212.8 427.4 404.8
Production
Payable copper (kt) 196.2 178.2 233.5 203.1 208.3 411.4 390.9
Copper cathode (EW) (kt) 48.4 48.2 55.8 49.6 49.7 99.3 97.4
- Oxide leach (kt) 13.1 12.2 17.5 15.2 17.6 32.8 27.9
- Sulphide leach (kt) 35.3 36.0 38.3 34.4 32.1 66.5 69.5
Total copper (kt) 244.6 226.4 289.3 252.7 258.0 510.7 488.3
(troy
Payable gold concentrate oz) 42,937 36,303 45,770 38,236 48,402 86,638 84,899
(troy
Payable silver concentrate koz) 1,462 1,270 1,311 1,210 1,510 2,720 2,753
Sales
Payable copper (kt) 200.2 177.0 230.4 196.7 216.0 412.7 390.7
Copper cathode (EW) (kt) 49.7 47.2 58.9 45.9 53.5 99.4 96.4
(troy
Payable gold concentrate oz) 42,937 36,303 45,770 38,236 48,402 86,638 84,899
(troy
Payable silver concentrate koz) 1,462 1,270 1,311 1,210 1,510 2,720 2,753
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
14
Production and sales report
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Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 4,782 3,516 3,604 3,179 583 3,762 10,160
Ore stacked (kt) 4,029 3,181 4,259 4,373 4,119 8,492 7,595
Average copper grade
- stacked (%) 0.62% 0.53% 0.55% 0.54% 0.56% 0.55% 0.61%
Production
Copper cathode (EW) (kt) 15.3 11.6 14.7 12.8 12.2 25.0 28.7
Sales
Copper cathode (EW) (kt) 16.0 10.5 16.2 13.3 12.2 25.5 28.1
Spence
Material mined (kt) 24,025 24,040 26,749 26,956 26,980 53,936 45,179
Ore stacked (kt) 5,071 5,055 5,099 5,577 5,155 10,732 10,329
Average copper grade
- stacked (%) 0.66% 0.67% 0.66% 0.70% 0.66% 0.68% 0.65%
Concentrator throughput (kt) 6,234 6,512 6,311 6,433 7,602 14,035 12,020
Average copper grade
- concentrator (%) 0.60% 0.65% 0.66% 0.63% 0.60% 0.61% 0.62%
Production
Payable copper (kt) 24.2 32.4 28.2 28.6 32.5 61.1 50.6
Copper cathode (EW) (kt) 28.8 24.2 34.3 29.2 32.0 61.2 56.5
Total copper (kt) 53.0 56.6 62.5 57.8 64.5 122.3 107.1
(troy
Payable gold concentrate oz) 5,776 7,929 8,198 5,521 3,875 9,396 12,743
(troy
Payable silver concentrate koz) 215 261 262 252 245 497 488
Payable molybdenum (t) - - 71 34 216 250 -
Sales
Payable copper (kt) 24.9 28.1 28.1 26.0 22.0 48.0 53.3
Copper cathode (EW) (kt) 31.2 20.2 35.4 29.1 33.4 62.5 58.9
(troy
Payable gold concentrate oz) 5,776 7,929 8,198 5,521 3,875 9,396 12,743
(troy
Payable silver concentrate koz) 215 261 262 252 245 497 488
Payable molybdenum (t) - - 25 25 216 241 -
15
Production and sales report
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2021 2022 2022 2022 2022 2022 2021
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Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 58,179 58,118 64,026 63,865 68,750 132,615 124,760
Concentrator throughput
(100%) (kt) 13,011 13,135 13,131 13,858 14,272 28,130 26,230
Average head grades
- Copper (%) 1.00% 0.94% 1.02% 0.93% 0.86% 0.89% 0.98%
- Zinc (%) 1.11% 1.13% 1.05% 1.09% 0.99% 1.04% 1.14%
Production
Payable copper (kt) 38.4 36.1 39.6 37.1 35.2 72.3 74.2
Payable zinc (t) 29,603 32,732 27,576 32,685 29,929 62,614 62,892
(troy
Payable silver koz) 1,308 1,191 1,212 1,190 923 2,113 2,675
Payable lead (t) 277 282 181 228 114 342 655
Payable molybdenum (t) 217 190 249 262 348 610 359
Sales
Payable copper (kt) 41.9 32.9 40.7 37.6 34.7 72.3 74.6
Payable zinc (t) 32,513 29,920 30,847 33,820 29,127 62,947 65,148
(troy
Payable silver koz) 1,405 1,078 1,230 1,015 850 1,865 2,508
Payable lead (t) 344 269 363 130 91 221 576
Payable molybdenum (t) 170 199 205 250 298 548 256
Olympic Dam, Australia
Material mined (1) (kt) 1,998 2,424 2,477 2,412 2,264 4,676 3,933
Ore milled (kt) 1,105 2,122 2,436 2,570 2,687 5,257 3,129
Average copper grade (%) 2.17% 2.21% 2.15% 2.13% 2.08% 2.10% 2.08%
Average uranium grade (kg/t) 0.55 0.62 0.56 0.58 0.58 0.58 0.55
Production
Copper cathode (ER
and EW) (kt) 14.2 39.0 55.7 49.7 54.4 104.1 43.7
Payable uranium (t) 287 781 776 817 943 1,760 818
(troy
Refined gold oz) 37,805 29,355 26,080 47,184 43,280 90,464 64,082
(troy
Refined silver koz) 258 149 145 295 261 556 449
Sales
Copper cathode (ER
and EW) (kt) 17.9 36.3 55.8 45.9 56.8 102.7 47.0
Payable uranium (t) 541 236 1,031 272 1,127 1,399 1,077
(troy
Refined gold oz) 38,768 30,935 24,622 49,542 41,900 91,442 63,422
(troy
Refined silver koz) 290 182 87 320 233 553 416
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
16
Production and sales report
Quarter ended Year to date
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2021 2022 2022 2022 2022 2022 2021
------- ------- ------- ------- ------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia
Iron Ore, Australia
Production
Newman (kt) 14,577 11,940 14,063 14,053 16,172 30,225 31,038
Area C Joint Venture (kt) 22,911 24,888 27,685 26,971 26,302 53,273 41,858
Yandi Joint Venture (kt) 12,261 8,418 6,409 5,497 5,613 11,110 24,095
Jimblebar (1) (kt) 15,324 13,444 15,005 17,404 17,720 35,124 30,333
Total production (kt) 65,073 58,690 63,162 63,925 65,807 129,732 127,324
Total production (100%) (kt) 73,852 66,674 71,660 72,135 74,292 146,427 144,439
Sales
Lump (kt) 17,827 16,966 20,006 19,561 20,375 39,936 35,373
Fines (kt) 46,809 42,187 44,308 42,696 44,121 86,817 91,848
Total (kt) 64,636 59,153 64,314 62,257 64,496 126,753 127,221
Total sales (100%) (kt) 73,222 67,110 72,796 70,276 72,688 142,964 144,037
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
Production (kt) 1,029 994 1,000 1,148 1,095 2,243 2,077
Sales (kt) 950 943 991 1,146 1,097 2,243 2,061
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Production and sales report
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Coal
Coal production is reported on the basis of saleable product.
BHP Mitsubishi Alliance
(BMA), Australia
Production (1)
Blackwater (kt) 1,202 1,478 1,751 1,283 1,160 2,443 2,605
Goonyella (kt) 1,797 2,336 2,429 1,780 1,997 3,777 3,595
Peak Downs (kt) 960 1,395 1,366 1,325 1,480 2,805 2,183
Saraji (kt) 1,081 1,366 1,168 1,020 1,243 2,263 2,080
Daunia (kt) 304 338 472 324 441 765 681
Caval Ridge (kt) 956 1,031 997 930 631 1,561 1,871
Total production (kt) 6,300 7,944 8,183 6,662 6,952 13,614 13,015
Total production (100%) (kt) 12,600 15,888 16,366 13,324 13,904 27,228 26,030
Sales
Coking coal (kt) 4,875 6,334 6,734 5,615 5,872 11,487 10,290
Weak coking coal (kt) 754 805 1,118 600 727 1,327 1,488
Thermal coal (kt) 455 484 765 267 428 695 1,031
Total sales (kt) 6,084 7,623 8,617 6,482 7,027 13,509 12,809
Total sales (100%) (kt) 12,168 15,246 17,234 12,964 14,054 27,018 25,618
1 Production figures include some thermal coal.
18
Production and sales report
Quarter ended Year to date
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2021 2022 2022 2022 2022 2022 2021
------ ------ ------ ------ ------ ------ ------
NSW Energy Coal,
Australia
Production (kt) 2,967 2,577 3,919 2,622 2,851 5,473 7,205
Sales - export (kt) 3,718 2,703 3,923 2,441 2,862 5,303 7,498
Quarter ended Year to date
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2021 2022 2022 2022 2022 2022 2021
------ ------ ------ ------ ------ ------ ------
Other
Nickel production is reported on
the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 47.0 47.1 48.0 42.6 39.6 82.2 100.7
Average nickel grade (%) 13.2 14.4 16.1 17.0 15.5 16.3 13.9
Leinster
Nickel concentrate (kt) 77.4 78.0 76.0 66.8 47.9 114.7 151.2
Average nickel grade (%) 9.1 8.9 10.3 9.9 9.4 9.7 9.0
Saleable production
Refined nickel (1) (kt) 18.2 13.3 11.7 17.5 10.8 28.3 32.6
Nickel sulphate (2) (kt) 0.4 0.7 0.5 1.2 0.4 1.6 0.4
Intermediates and
nickel by-products
(3) (kt) 2.9 4.7 6.6 2.0 6.5 8.5 6.3
Total nickel (kt) 21.5 18.7 18.8 20.7 17.7 38.4 39.3
Cobalt by-products (t) 220 125 110 238 93 331 397
Sales
Refined nickel (1) (kt) 16.9 15.3 11.7 18.1 10.2 28.3 30.7
Nickel sulphate (2) (kt) 0.1 0.7 0.5 0.8 0.5 1.3 0.1
Intermediates and
nickel by-products
(3) (kt) 3.1 2.7 6.4 1.8 7.7 9.5 7.0
Total nickel (kt) 20.1 18.7 18.6 20.7 18.4 39.1 37.8
Cobalt by-products (t) 220 125 110 238 93 331 397
1 High quality refined nickel metal, including briquettes and powder.
2 Nickel sulphate crystals produced from nickel powder.
3 Nickel contained in matte and by-product streams.
19
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