TIDMBHP

RNS Number : 0978W

BHP Group PLC

21 April 2021

 
Release Time     IMMEDIATE 
Date             21 April 2021 
Release Number   05/21 
 

BHP OPERATIONAL REVIEW

FOR THE NINE MONTHSED 31 MARCH 2021

Note: All guidance is subject to further potential impacts from COVID-19 during the 2021 financial year.

-- Record production was achieved at Western Australia Iron Ore (WAIO) and record average concentrator throughput was delivered at Escondida.

-- Production guidance for the 2021 financial year remains unchanged for petroleum and iron ore. Copper guidance has increased to between 1,535 kt and 1,660 kt and reflects stronger than expected performance at Escondida. Metallurgical coal guidance has been reduced to between 39 and 41 Mt as a result of significant wet weather impacts during the December 2020 and March 2021 quarters. Energy coal guidance has been reduced to between 18 and 20 Mt as a result of significant weather impacts at New South Wales Energy Coal (NSWEC) and lower than expected volumes at Cerrejón.

-- Full year unit cost guidance(1) (based on exchange rates of AUD/USD 0.70 and USD/CLP 769) remains unchanged for Petroleum and WAIO. Unit costs for Escondida have been lowered to be between US$0.95 and US$1.10(1) per pound, reflecting strong production and lower deferred stripping costs. Unit costs for Queensland Coal have been increased to be between US$74 and US$78(1) per tonne, reflecting lower expected volumes for the full year.

-- The Bass Strait West Barracouta gas project achieved first production in April 2021, and is on schedule and budget. Our major projects under development are also progressing to plan. The Ruby project in Trinidad and Tobago is progressing ahead of schedule and on budget, with first production on track for May 2021. South Flank is tracking well with commissioning activities planned for the June 2021 quarter and is on schedule for first production in the middle of the 2021 calendar year. Jansen Stage 1 project remains on track for Final Investment Decision in the middle of the 2021 calendar year.

 
                            Mar YTD21        Mar Q21 
Production                (vs Mar YTD20)   (vs Dec Q20)                                    Mar Q21 vs Dec Q20 commentary 
Petroleum (MMboe)                   75.8           25.4  Higher volumes reflect increased Shenzi working interest (following completion of the acquisition 
                                                          in November 2020) and impacts from Hurricanes Delta and Zeta in the Gulf of Mexico in the 
                                                          prior quarter. This was partially offset by lower seasonal demand at Bass Strait. 
                                    (8%)             7% 
Copper (kt)                      1,232.7          391.4  Lower volumes primarily as a result of decreased throughput at Escondida, reflecting the impact 
                                                          of a reduced operational workforce due to the continuation of COVID-19 restrictions, and lower 
                                                          concentrator feed grade. 
                                    (6%)           (9%) 
Iron ore (Mt)                      188.3           59.9  Lower volumes at WAIO reflects weather impacts and planned O re Handling Plant and stacker 
                                                          maintenance at Newman, partially offset by improved car dumper performance. 
                                      4%           (4%) 
Metallurgical coal (Mt)             28.8            9.6  Queensland Coal volumes in line with prior quarter as operations continue to be impacted by 
                                                          significant wet weather events. 
                                    (2%)             1% 
Energy coal (Mt)                    13.0            4.8  Higher volumes at Cerrejón as a result of a strike in the prior period, partially offset 
                                                          by lower volumes at NSWEC due to significant wet weather impacts and increased washed coal 
                                                          in response to reduced port capacity following damage to a shiploader at the Newcastle port. 
                                   (26%)            34% 
 Nickel (kt)                        66.6           20.4   Lower volumes largely as a result of planned maintenance undertaken at the Kwinana refinery. 
                                     19%          (15%) 
 

Group copper equivalent production was marginally lower over the nine months ended March 2021. Strong underlying operational performance was offset by the impacts of planned maintenance, natural field decline, copper grade decline and adverse weather.

1

Summary

BHP Chief Executive Officer, Mike Henry:

"BHP's strong safety and operational performance continued during the quarter, with record year-to-date production at Western Australia Iron Ore, the Goonyella Riverside metallurgical coal mine in Queensland and concentrator throughput at Escondida in Chile.

We are reliably executing our major projects, bringing on new supply in copper, petroleum and iron ore. The Spence Growth Option and Samarco are ramping up and West Barracouta, in Petroleum, started production this month. First production from Petroleum's Ruby project is expected in the coming weeks and South Flank, with its higher grade and lump proportion, is on track to begin production in the middle of the year.

BHP continues to deliver on decarbonising, in line with the Paris Agreement goals. We have established emissions reduction partnerships with three major steelmakers in China and Japan whose combined output equates to around 10 per cent of global steel production. In shipping, we have successfully completed an initial trial of marine biofuels, in addition to the tender awarded last year for LNG-powered iron ore vessels. In our own operations, we have established significant renewable power supply agreements for our Kwinana nickel refinery, Queensland Coal operations, and Escondida and Spence copper mines.

With our focus on keeping our people safe, costs down and productivity up, we are well positioned to finish the year strongly and continue delivering the essential products the world needs."

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.

 
                                       Mar YTD21   Mar Q21   Mar Q21       Previous        Current 
                         Mar     Mar          vs        vs        vs           FY21           FY21 
Production             YTD21     Q21   Mar YTD20   Mar Q20   Dec Q20       guidance       guidance 
------------------  --------  ------  ----------  --------  --------  -------------  ------------- 
                                                                                                         Upper half of 
Petroleum (MMboe)       75.8    25.4        (8%)        1%        7%       95 - 102       95 - 102               range 
Copper (kt)          1,232.7   391.4        (6%)      (8%)      (9%)  1,510 - 1,645  1,535 - 1,660 
  Escondida (kt)       821.5   249.3        (8%)     (14%)     (13%)    970 - 1,030  1,010 - 1,060           Increased 
  Pampa Norte (kt)     148.8    52.0       (21%)     (19%)      (4%)      240 - 270      225 - 255             Lowered 
                                                                                                         Upper half of 
  Olympic Dam (kt)     154.5    55.4         25%       44%       16%      180 - 205      180 - 205               range 
  Antamina (kt)        107.9    34.7          1%        5%     (10%)      120 - 140      120 - 140  Upper end of range 
Iron ore(i) (Mt)       188.3    59.9          4%        0%      (4%)      245 - 255      245 - 255 
  WAIO (100%                                                                                             Upper half of 
   basis) (Mt)         211.3    66.7          3%      (2%)      (5%)      276 - 286      276 - 286               range 
Metallurgical coal 
 (Mt)                   28.8     9.6        (2%)        4%        1%        40 - 44        39 - 41 
  Queensland Coal 
   (100% basis) 
   (Mt)                 51.4    17.3        (1%)        8%        2%        71 - 77        70 - 73             Lowered 
Energy coal (Mt)        13.0     4.8       (26%)     (17%)       34%        21 - 23        18 - 20 
  NSWEC (Mt)             9.8     3.0       (12%)     (22%)      (8%)        15 - 17        14 - 15             Lowered 
  Cerrejón 
   (Mt)                  3.2     1.8       (50%)      (9%)      417%             6          4 - 5             Lowered 
Nickel (kt)             66.6    20.4         19%      (2%)     (15%)        85 - 95        85 - 95           Unchanged 
 
   (i)     Iron ore comprises WAIO and Samarco. 

2

Major development projects

At the end of March 2021, 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.

In March 2021, the US Department of Agriculture directed the US Forest Service to rescind the Resolution Copper Mining (RCM) project's Final Environmental Impact Statement and the draft Record of Decision that were both issued in January 2021. BHP supports RCM's collaboration with the US Forest Service, and its commitment to further consultation with local communities and Native American tribes in an effort to seek consent, as it continues to study the project.

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.

Corporate update

On 9 April 2021, Samarco announced that it filed for judicial reorganisation (JR) with the Commercial Courts of Belo Horizonte, State of Minas Gerais, Brazil. The request for JR was granted by the Belo Horizonte Justice on 12 April 2021. The JR is a means for Samarco to restructure its financial debts in order to establish a sustainable independent financial position for Samarco to continue to rebuild its operations safely and meet its Renova Foundation obligations. Samarco's filing follows unsuccessful attempts to negotiate a debt restructure with financial creditors and multiple legal actions filed by those creditors which threaten Samarco's operations. Samarco's operations will continue during the JR and restructure process. The JR does not affect Samarco's obligation or commitment to make full redress for the 2015 Fundão dam failure, and it does not impact Renova Foundation's ability to undertake that remediation and compensation.

In February 2021, we signed a memorandum of understanding (MOU) with a large Japanese steel producer, JFE, to jointly study technologies and pathways capable of making material reductions to greenhouse gas emissions from the integrated steelmaking process. We have agreed to invest up to US$15 million over the five-year partnership.

In March 2021, we also signed a MOU with China's HBIS Group Co., Ltd (HBIS), one of the world's largest steelmakers and one of our major customers of iron ore, with the intention to invest up to US$15 million over three years to jointly study and explore greenhouse gas emissions reduction technologies and pathways. The three-year partnership intends to collaborate on three priority areas: hydrogen-based direct reduction technology, the recycling and reuse of steelmaking slag, and the role of iron ore lump utilisation to help reduce emissions from ironmaking and steelmaking.

The partnerships with JFE and HBIS follow other investments to support the reduction of value chain emissions, including up to US$35 million for the collaboration with China's largest steelmaker, China Baowu (November 2020), awarding our first LNG-fuelled Newcastlemax bulk carriers contract (September 2020), with the aim to reduce CO(2) -e emissions by 30 per cent per voyage and a successfully completed marine biofuel trial which enables us to develop an informed strategy on the structural supply and use of biofuels to support our key shipping routes (April 2021). The advanced biofuel reduces CO(2) -e emissions by 80 to 90 per cent well-to-exhaust compared with heavy fuel oil (HFO) and very-low sulphur fuel oil (VLSFO), and uses sustainable waste and residue streams as feedstock.

In February 2021, we also executed a 10-year PPA contract with Merredin Solar Farm to supply up to 50 per cent of the Nickel West Kwinana Refinery electricity needs by 2024, based on 2020 financial year levels. This contract will further increase the sustainability of the nickel produced by Nickel West and will help to reduce emissions from electricity at the refinery by up to 50 per cent.

3

Petroleum

Production

 
                                                                             Mar YTD21   Mar Q21   Mar Q21 
                                                                                    vs        vs        vs 
                                                        Mar YTD21  Mar Q21   Mar YTD20   Mar Q20   Dec Q20 
                                                        ---------  -------  ----------  --------  -------- 
Crude oil, condensate and natural gas liquids (MMboe)        33.8     11.6       (10%)        0%        8% 
Natural gas (bcf)                                           252.0     82.6        (7%)        2%        5% 
Total petroleum production (MMboe)                           75.8     25.4        (8%)        1%        7% 
 

Petroleum - Total petroleum production decreased by eight per cent to 76 MMboe. Guidance for the 2021 financial year remains unchanged at between 95 and 102 MMboe, with volumes expected to be in the upper half of the guidance range.

Crude oil, condensate and natural gas liquids production decreased by 10 per cent to 34 MMboe reflecting lower demand at Bass Strait and North West Shelf, and production impacts at Atlantis due to planned tie-in and commissioning activities in the first half of the year and unplanned downtime in the March 2021 quarter, as well as natural field decline across the portfolio. Production was further impacted by higher downtime at our Gulf of Mexico assets due to a more active hurricane season in the first half of the year. These impacts were partially offset by the earlier than scheduled achievement of first production from the Atlantis Phase 3 project in the September 2020 quarter and the acquisition of an additional 28 per cent working interest in Shenzi, completed on 6 November 2020.

Natural gas production decreased by seven per cent to 252 bcf, reflecting planned shutdowns at Angostura related to the Ruby tie-in, 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 in the first half of the year , and natural field decline across the portfolio. This decline was partially offset by higher domestic gas sales at Macedon.

Projects

 
                                         Initial 
                            Capital   production 
Project and             expenditure       target 
 ownership                     US$M         date  Capacity                     Progress 
---------------------  ------------  -----------  ---------------------------  ----------------------- 
Ruby                            283      H1 CY21  Five production wells        Ahead of schedule 
                                                   tied back into existing      and on budget. The 
                                                   operated processing          overall project is 
                                                   facilities, with capacity    78% complete. 
                                                   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 
  & Tobago) 
  68.46% (operator) 
Mad Dog Phase                 2,154     Mid-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 90% 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 achieved first production in April 2021.

In March 2021, we successfully completed the drilling of Shenzi North GC608 development well which is within the Wilding discovery, and commenced drilling of the first of two Shenzi infill wells which is expected to be completed in the June 2021 quarter. A second Shenzi infill well is planned to be drilled in the June 2021 quarter. The successful acquisition of an increased working interest in Shenzi in November 2020 realises further value from the continued Shenzi development.

The Mad Dog Phase 2 project achieved a major milestone in April 2021 as the semi-submersible floating production platform, Argos, arrived in the US from South Korea. The platform will undergo final preparatory work and regulatory inspections before being towed offshore for installation. First production from Mad Dog Phase 2 is expected in the middle of the 2022 calendar year.

4

Petroleum exploration

No exploration and appraisal wells were drilled during the March 2021 quarter. Petroleum exploration expenditure for nine months ended March 2021 was US$230 million, of which US$211 million was expensed. Our exploration and appraisal program for the 2021 financial year is now expected to be approximately US$400 million (reduced from US$450 million), due to appraisal well phasing through the June 2021 quarter and the September 2021 quarter.

Copper

Production

 
                                   Mar YTD21   Mar Q21   Mar Q21 
                                          vs        vs        vs 
              Mar YTD21  Mar Q21   Mar YTD20   Mar Q20   Dec Q20 
              ---------  -------  ----------  --------  -------- 
Copper (kt)     1,232.7    391.4        (6%)      (8%)      (9%) 
Zinc (t)        109,606   33,299         47%        5%     (21%) 
Uranium (t)       2,653      834          0%        7%     (12%) 
 

Copper - Total copper production decreased by six per cent to 1,233 kt. Guidance for the 2021 financial year increased to between 1,535 and 1,660 kt from between 1,510 and 1,645 kt.

For the nine months to March 2021, our Chilean assets continued to operate with a substantial reduction in their operational workforces as a result of COVID-19 restrictions. The operating environment across our Chilean assets is expected to become more challenging in the June 2021 quarter, given escalating COVID-19 infections , increased pressures on Chile's health system and border restrictions. Reductions in our on-site workforce are forecast to remain substantial.

Escondida copper production decreased by eight per cent to 821 kt with record concentrator throughput of 378 ktpd achieved offset by the impact of lower concentrator feed grade and lower cathode volumes. Concentrator throughput continues to be prioritised over cathode production as a result of the reduced operational workforce and to prioritise yield of ore. Guidance for the 2021 financial year has been increased to between 1,010 and 1,060 kt from between 970 and 1,030 kt. Production in the 2022 financial year is expected to be broadly in line with the 2021 financial year guidance and reflects a continuation of the impacts of COVID-19 and a need to catch up on mine development due to reduced material movement in the current financial year. Guidance of an annual average of 1.2 Mt of copper production over the next five years remains unchanged, with production expected to be weighted towards the latter years.

On 1 April 2021, Escondida successfully completed negotiations for a new collective agreement that applies to the Intermel Union of Operators and Maintainers (Intermel), effective for 24 months from 1 April 2021. Escondida's collective agreement with Union N(o) 1 of Operators and Maintainers expires on 1 August 2021 and negotiations are expected to commence in June 2021.

Pampa Norte copper production decreased by 21 per cent to 149 kt, largely due to planned maintenance at Spence and the impact of a reduced operational workforce as a result of COVID-19 restrictions. Guidance for the 2021 financial year has been lowered to between 225 and 255 kt from between 240 and 270 kt, reflecting COVID-19 related impacts on the ramp-up of the Spence Growth Option (SGO). SGO achieved first copper sales, on schedule, in March 2021, following first copper production in December 2020. The ramp-up to full production capacity at SGO is still on track and is expected to take approximately 12 months from first production, following which Spence is expected to average 300 ktpa of production (including cathodes) over the first four years.

Spence's collective agreement with Union for Operators and Maintainers expires on 30 May 2021 , with negotiations for a new agreement currently underway.

5

Olympic Dam copper production increased by 25 per cent to 155 kt, reflecting improved smelter performance and stability. Production for the March 2021 quarter was 55 kt, the highest quarterly production rate in five years. The new refinery crane is in the final stages of commissioning . Guidance for the 2021 financial year remains unchanged at between 180 and 205 kt, with volumes expected to be in the upper half of the guidance range. 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 increased by one per cent to 108 kt and zinc production increased by 47 per cent to 110 kt, reflecting higher copper and zinc head grades. Guidance for the 2021 financial year remains unchanged, with copper production expected to be at the upper end of the 120 to 140 kt guidance range, and zinc production of between 140 and 160 kt.

Iron Ore

Production

 
                                                Mar YTD21   Mar Q21   Mar Q21 
                                                       vs        vs        vs 
                           Mar YTD21  Mar Q21   Mar YTD20   Mar Q20   Dec Q20 
                           ---------  -------  ----------  --------  -------- 
Iron ore production (kt)     188,289   59,855          4%        0%      (4%) 
 

Iron ore - Total iron ore production increased by four per cent to 188 Mt. Guidance for the 2021 financial year remains unchanged at between 245 and 255 Mt. Volumes are expected to be in the upper half of the guidance range as a result of strong performance at WAIO.

WAIO production increased by three per cent to a nine month record 187 Mt (211 Mt on a 100 per cent basis), reflecting record production at Jimblebar and s trong performance across the supply chain, with improved train cycle times and car dumper performance and reliability. This record performance was achieved despite significant weather impacts in December 2020, January 2021 and February 2021, and the planned Mining Area C and South Flank major tie-in activity . Commissioning activities for South Flank are expected to commence in the June 2021 quarter. Volumes for the 2021 financial year are expected to be in the upper half of the guidance range of between 244 and 253 Mt (276 and 286 Mt on a 100 per cent basis).

Samarco production was 915 kt, after iron ore pellet production re-commenced at one concentrator in December 2020. Production for the 2021 financial year is expected to be between 1 and 2 Mt (BHP share). Production capacity of approximately 8 Mtpa (100 per cent basis) is expected once operations are gradually 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 95% complete. 
  85% 
 

6

Coal

Production

 
                                                                Mar                     Mar                      Mar 
                                                               YTD21                    Q21                      Q21 
                                                                vs                       vs                       vs 
                                                                Mar                     Mar                      Dec 
                          Mar YTD21  Mar Q21                   YTD20                    Q20                      Q20 
                          ---------  -------  ----------------------  -----------------------  ----------------------- 
Metallurgical coal (kt)      28,802    9,590                    (2%)                       4%                       1% 
Energy coal (kt)             13,014    4,776                   (26%)                    (17%)                      34% 
 

Metallurgical coal - Metallurgical coal production decreased by two per cent to 29 Mt (51 Mt on a 100 per cent basis). G uidance for the 2021 financial year has been reduced to between 39 and 41 Mt (70 and 73 Mt on a 100 per cent basis) from between 40 and 44 Mt (71 and 77 Mt on a 100 per cent basis) as a result of significant wet weather impacts during the December 2020 and March 2021 quarters. We continue to monitor for any potential impacts on volumes from restrictions on coal imports into China.

At Queensland Coal, strong underlying operational performance, including record stripping at BMA and record production at Goonyella, was offset by significant wet weather impacts across most operations and planned wash plant maintenance at Saraji and Caval Ridge in the first half of the year. At South Walker Creek, production decreased despite record truck and shovel stripping in the March 2021 quarter, as a result of higher strip ratios due to ongoing impacts from geotechnical constraints and lower yields.

Energy coal - Energy coal production decreased by 26 per cent to 13 Mt. Following a strike at Cerrejón and prolonged wet weather impacts at NSWEC, guidance for the 2021 financial year has been reduced to between 18 and 20 Mt from between 21 and 23 Mt .

NSWEC production decreased by 12 per cent to 9.8 Mt. This decrease reflects significant weather impacts, with more than double the amount of rainfall year-to-date compared with the same period in the prior year, including the wettest March on record, and higher strip ratios. Lower volumes also reflect 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. Production guidance for the 2021 financial year has been reduced to between 14 and 15 Mt from between 15 and 17 Mt.

Cerrejón production decreased by 50 per cent to 3.2 Mt largely as a result of a 91-day strike in the first half of the year and subsequent delays to the restart of production, as well as the impact of a reduced operational workforce due to COVID-19 restrictions. Guidance for the 2021 financial year has now been reduced to between 4 and 5 Mt from 6 Mt.

Other

Nickel production

 
                                  Mar YTD21   Mar Q21   Mar Q21 
                                      vs         vs        vs 
              Mar YTD21  Mar Q21   Mar YTD20   Mar Q20   Dec Q20 
              ---------  -------  ----------  --------  -------- 
Nickel (kt)        66.6     20.4         19%      (2%)     (15%) 
 

Nickel - Nickel West production increased by 19 per cent to 67 kt as a result of major quadrennial maintenance shutdowns in the prior period and strong performance from the new mines. Production for the March 2021 quarter was impacted by the planned maintenance undertaken at the Kwinana refinery during the quarter. Guidance for the 2021 financial year remains unchanged at between 85 and 95 kt.

7

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 91% complete. 
                            and to 
                           continue the installation of essential surface infrastructure and utilities. 
  (Canada) 
  100% 
 

Minerals exploration

Minerals exploration expenditure for the nine months to March 2021 was US$126 million, of which US$83 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.

Drilling for copper targets is underway in the United States, Ecuador, and Chile. Further drilling is anticipated for copper in Peru and for nickel in Australia during the 2021 calendar year. At Oak Dam in South Australia, next stage resource definition drilling to inform future design is expected to commence around the middle of the 2021 calendar year.

8

Variance analysis relates to the relative performance of BHP and/or its operations during the nine months ended March 2021 compared with the nine months ended March 2020, 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$0.95-1.10/lb, (previously US$1.00-1.25/lb), WAIO US$13-14/t and Queensland Coal US$$74-78//t; (previously US$69-75/t); based on exchange rates of AUD/USD 0.70 and USD/CLP 769.

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.

9

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

Authorised for lodgement by:

Stefanie Wilkinson

Group Company Secretary

 
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Australia and Asia                    Australia and Asia 
 
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10

Production summary

 
                                                           Quarter ended                Year to date 
                                              --------------------------------------  ---------------- 
                                      BHP       Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                    interest    2020    2020    2020    2020    2021    2021     2020 
                                  ----------  ------  ------  ------  ------  ------  -------  ------- 
 Petroleum (1) 
 Petroleum 
 Production 
  Crude oil, condensate 
   and NGL (Mboe)                             11,589  11,355  11,507  10,729  11,601   33,837   37,508 
  Natural gas (bcf)                             80.7    89.8    90.9    78.5    82.6    252.0    269.8 
  Total (Mboe)                                25,039  26,322  26,657  23,812  25,368   75,837   82,475 
 
 Copper (2) 
 Copper 
 Payable metal in concentrate 
  (kt) 
  Escondida (3)                        57.5%   220.1   228.5   236.7   236.7   202.7    676.1    697.4 
  Pampa Norte (4)                     100.0%       -       -       -     0.7     5.6      6.3        - 
  Antamina                             33.8%    32.9    17.8    34.6    38.6    34.7    107.9    106.7 
  Total                                        253.0   246.3   271.3   276.0   243.0    790.3    804.1 
 
 Cathode (kt) 
  Escondida (3)                        57.5%    69.6    65.5    47.9    50.9    46.6    145.4    193.9 
  Pampa Norte (4)                       100%    64.3    54.5    42.5    53.6    46.4    142.5    188.2 
  Olympic Dam                           100%    38.4    47.6    51.5    47.6    55.4    154.5    124.0 
  Total                                        172.3   167.6   141.9   152.1   148.4    442.4    506.1 
 
 Total copper (kt)                             425.3   413.9   413.2   428.1   391.4  1,232.7  1,310.2 
 
 Lead 
 Payable metal in concentrate 
  (t) 
  Antamina                             33.8%     621     262     690     993     468    2,151    1,409 
  Total                                          621     262     690     993     468    2,151    1,409 
 
 Zinc 
 Payable metal in concentrate 
  (t) 
  Antamina                             33.8%  31,789  13,736  34,398  41,909  33,299  109,606   74,726 
  Total                                       31,789  13,736  34,398  41,909  33,299  109,606   74,726 
 
 

11

Production summary

 
                                                           Quarter ended                Year to date 
                                              --------------------------------------  ---------------- 
                                      BHP       Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                    interest    2020    2020    2020    2020    2021    2021     2020 
                                  ----------  ------  ------  ------  ------  ------  -------  ------- 
 Gold 
 Payable metal in concentrate 
  (troy oz) 
  Escondida (3)                        57.5%  35,990  43,422  42,332  47,789  37,954  128,075  134,000 
  Olympic Dam (refined 
   gold)                                100%  33,235  34,150  36,608  23,837  37,075   97,520  111,822 
  Total                                       69,225  77,572  78,940  71,626  75,029  225,595  245,822 
 
 Silver 
 Payable metal in concentrate 
  (troy koz) 
  Escondida (3)                        57.5%   1,390   1,599   1,580   1,627   1,318    4,525    4,814 
  Antamina                             33.8%   1,216     626   1,326   1,767   1,463    4,556    3,490 
  Olympic Dam (refined 
   silver)                              100%     241     295     157     193     275      625      689 
  Total                                        2,847   2,520   3,063   3,587   3,056    9,706    8,993 
 
 Uranium 
 Payable metal in concentrate 
  (t) 
  Olympic Dam                           100%     776   1,016     874     945     834    2,653    2,662 
  Total                                          776   1,016     874     945     834    2,653    2,662 
 
 Molybdenum 
 Payable metal in concentrate 
  (t) 
  Antamina                             33.8%     491     243     284     192     276      752    1,423 
  Total                                          491     243     284     192     276      752    1,423 
 
 
 Iron Ore 
 Iron Ore 
 Production (kt) (5) 
  Newman                                 85%  16,449  17,110  16,410  17,637  14,614   48,661   48,531 
  Area C Joint Venture                   85%  12,179  13,973  11,889  11,567  13,010   36,466   37,526 
  Yandi Joint Venture                    85%  17,491  19,087  17,666  16,413  16,112   50,191   50,175 
  Jimblebar (6)                          85%  13,911  16,559  20,075  16,740  15,241   52,056   45,195 
  Wheelarra                              85%       -       -       -       -       -        -        3 
  Samarco                                50%       -       -       -      37     878      915        - 
  Total                                       60,030  66,729  66,040  62,394  59,855  188,289  181,430 
 

12

Production summary

 
                                                     Quarter ended                Year to date 
                                        --------------------------------------  --------------- 
                                          Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                          BHP interest    2020    2020    2020    2020    2021    2021     2020 
                         -------------  ------  ------  ------  ------  ------  -------  ------ 
 Coal 
 Metallurgical coal 
 Production (kt) (7) 
  BMA                              50%   6,869   9,078   7,365   7,539   7,727   22,631  22,497 
  BHP Mitsui Coal 
   (8)                             80%   2,353   2,536   2,325   1,983   1,863    6,171   7,007 
  Total                                  9,222  11,614   9,690   9,522   9,590   28,802  29,504 
 
 Energy coal 
 Production (kt) 
  NSW Energy Coal                 100%   3,810   4,887   3,624   3,229   2,981    9,834  11,165 
  Cerrejón                  33.3%   1,978     767   1,038     347   1,795    3,180   6,348 
  Total                                  5,788   5,654   4,662   3,576   4,776   13,014  17,513 
 
 Other 
 Nickel 
 Saleable production 
  (kt) 
  Nickel West (9)                 100%    20.9    23.9    22.2    24.0    20.4     66.6    56.2 
  Total                                   20.9    23.9    22.2    24.0    20.4     66.6    56.2 
 
 Cobalt 
 Saleable production 
  (t) 
  Nickel West                     100%     132     312     238     236     273      747     463 
  Total                                    132     312     238     236     273      747     463 
 
 

(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.

13

Production and sales report

 
                                                    Quarter ended                Year to date 
                                       --------------------------------------  ---------------- 
                                         Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                         2020    2020    2020    2020    2021    2021     2020 
                                       ------  ------  ------  ------  ------  -------  ------- 
 Petroleum (1) 
 Bass Strait 
  Crude oil and condensate    (Mboe)      926   1,231   1,305   1,003     859    3,167    3,762 
  NGL                         (Mboe)      958   1,493   1,660   1,057   1,035    3,752    4,173 
  Natural gas                 (bcf)      18.4    28.1    34.1    23.4    22.7     80.2     82.8 
  Total petroleum 
   products                   (Mboe)    4,957   7,408   8,648   5,960   5,677   20,285   21,741 
 
 North West Shelf 
  Crude oil and condensate    (Mboe)    1,266   1,260   1,215   1,180   1,183    3,578    3,979 
  NGL                         (Mboe)      191     203     162     165     188      515      593 
  Natural gas                 (bcf)      35.0    35.2    29.6    30.4    31.1     91.1    100.0 
  Total petroleum 
   products                   (Mboe)    7,287   7,334   6,310   6,412   6,554   19,276   21,235 
 
 Pyrenees 
  Crude oil and condensate    (Mboe)      917     971     837     826     679    2,342    2,830 
  Total petroleum 
   products                   (Mboe)      917     971     837     826     679    2,342    2,830 
 
 Other Australia 
  (2) 
  Crude oil and condensate    (Mboe)        1       1       1       1       1        3       10 
  Natural gas                 (bcf)      11.2    11.9    12.7    12.6    12.4     37.7     34.6 
  Total petroleum 
   products                   (Mboe)    1,874   1,987   2,118   2,101   2,068    6,287    5,783 
 
 Atlantis (3) 
  Crude oil and condensate    (Mboe)    2,769   2,223   2,421   2,385   2,590    7,396    9,053 
  NGL                         (Mboe)      178      54     154     147     171      472      615 
  Natural gas                 (bcf)       1.3     1.1     1.2     1.1     1.4      3.7      4.5 
  Total petroleum 
   products                   (Mboe)    3,170   2,456   2,775   2,715   2,994    8,484   10,424 
 
 Mad Dog (3) 
  Crude oil and condensate    (Mboe)    1,272   1,297   1,211     930   1,209    3,350    3,570 
  NGL                         (Mboe)       55      33      48      38      57      143      156 
  Natural gas                 (bcf)       0.2     0.3     0.2     0.1     0.2      0.5      0.6 
  Total petroleum 
   products                   (Mboe)    1,355   1,374   1,292     985   1,299    3,576    3,821 
 
 Shenzi (3) (4) 
  Crude oil and condensate    (Mboe)    1,645   1,584   1,395   1,764   2,328    5,487    4,661 
  NGL                         (Mboe)       94      40      71      87     130      288      258 
  Natural gas                 (bcf)       0.3     0.4     0.3     0.3     0.4      1.0      0.8 
  Total petroleum 
   products                   (Mboe)    1,791   1,686   1,516   1,901   2,525    5,942   50,543 
 
 Trinidad/Tobago 
  Crude oil and condensate    (Mboe)       97      72     102      96     139      337      438 
  Natural gas                 (bcf)      14.0    12.8    12.8    10.5    14.4     37.7     46.1 
  Total petroleum 
   products                   (Mboe)    2,427   2,201   2,235   1,846   2,539    6,620    8,118 
 
 Other Americas (3) 
 (5) 
  Crude oil and condensate    (Mboe)      344     198     212     190     187      589      759 
  NGL                         (Mboe)       22       5       2      11       -       13       28 
  Natural gas                 (bcf)       0.3       -       -     0.1       -      0.1      0.4 
  Total petroleum 
   products                   (Mboe)      412     209     214     218     187      619      850 
 
 

14

Production and sales report

 
                                                           Quarter ended              Year to date 
                                                ----------------------------------  ---------------- 
                                         Mar      Jun      Sep      Dec      Mar      Mar      Mar 
                                         2020     2020     2020     2020     2021     2021     2020 
                                       -------  -------  -------  -------  -------  -------  ------- 
 Algeria 
  Crude oil and condensate    (Mboe)       854      690      711      849      845    2,405    2,623 
  Total petroleum 
   products                   (Mboe)       854      690      711      849      845    2,405    2,623 
 
 
 Petroleum (1) 
 
 Total production 
  Crude oil and condensate    (Mboe)    10,091    9,527    9,410    9,224   10,020   28,654   31,685 
  NGL                         (Mboe)     1,498    1,828    2,097    1,505    1,581    5,183    5,823 
  Natural gas                 (bcf)       80.7     89.8     90.9     78.5     82.6    252.0    269.8 
  Total                       (Mboe)    25,039   26,322   26,657   23,812   25,368   75,837   82,475 
 

(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 72%.

(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)    107,268  75,062  83,357  97,274  95,978  276,609  308,351 
 Sulphide ore milled         (kt)     33,440  34,755  34,733  36,303  32,654  103,690  101,055 
 Average concentrator 
  head grade                 (%)       0.82%   0.81%   0.85%   0.83%   0.78%    0.82%    0.85% 
 Production ex mill          (kt)      230.0   236.8   243.9   246.1   207.8    697.8    721.1 
 
 Production 
 Payable copper              (kt)      220.1   228.5   236.7   236.7   202.7    676.1    697.4 
 Copper cathode 
  (EW)                       (kt)       69.6    65.5    47.9    50.9    46.6    145.4    193.9 
  - Oxide leach              (kt)       29.3    26.8    15.3    18.0    16.1     49.4     79.5 
  - Sulphide leach           (kt)       40.2    38.7    32.6    32.9    30.5     96.0    114.4 
 Total copper                (kt)      289.7   294.0   284.6   287.6   249.3    821.5    891.3 
 
                             (troy 
 Payable gold concentrate     oz)     35,990  43,422  42,332  47,789  37,954  128,075  134,000 
 Payable silver              (troy 
  concentrate                 koz)     1,390   1,599   1,580   1,627   1,318    4,525    4,814 
 
 Sales 
 Payable copper              (kt)      212.0   221.0   237.1   244.3   196.9    678.3    682.5 
 Copper cathode 
  (EW)                       (kt)       65.9    72.1    46.5    47.7    49.6    143.8    188.8 
                             (troy 
 Payable gold concentrate     oz)     35,990  43,422  42,332  47,789  37,954  128,075  134,000 
 Payable silver              (troy 
  concentrate                 koz)     1,390   1,599   1,580   1,627   1,318    4,525    4,814 
 
 

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

15

Production and sales report

 
                                            Quarter ended                Year to date 
                               --------------------------------------  --------------- 
                                 Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                 2020    2020    2020    2020    2021    2021     2020 
                               ------  ------  ------  ------  ------  -------  ------ 
 Pampa Norte, Chile 
  Cerro Colorado 
  Material mined        (kt)   18,710  15,734  12,618   6,750   6,153   25,521  51,883 
  Ore milled            (kt)    4,574   4,553   4,036   3,562   3,283   10,881  13,578 
  Average copper 
   grade                (%)     0.54%   0.60%   0.66%   0.58%   0.58%    0.61%   0.55% 
 
  Production 
  Copper cathode 
   (EW)                 (kt)     20.4    16.9    15.8    15.8    13.9     45.5    50.6 
 
  Sales 
  Copper cathode 
   (EW)                 (kt)     18.3    18.7    14.6    16.6    13.2     44.4    48.6 
 
  Spence 
  Material mined        (kt)   23,304  24,082  18,260  18,485  19,195   55,940  67,476 
  Ore milled (1)        (kt)    5,191   2,829   4,408   6,809   8,007   19,224  15,959 
  Average copper 
   grade (2)            (%)     0.87%   0.95%   1.10%   0.76%   0.62%    0.78%   0.91% 
 
  Production 
  Payable copper        (kt)        -       -       -     0.7     5.6      6.3       - 
  Copper cathode 
   (EW)                 (kt)     43.9    37.6    26.7    37.8    32.5     97.0   137.6 
 
  Sales 
  Payable copper        (kt)        -       -       -       -     1.8      1.8       - 
  Copper cathode 
   (EW)                 (kt)     44.8    41.0    24.1    40.9    30.7     95.7   135.8 
 

(1) March 2021 quarter comprised of concentrator throughput of 2,471 kt and cathode throughput of 5,536 kt.

March 2021 year to date comprised of concentrator throughput of 3,678 kt and cathode throughput of 15,546 kt.

(2) March 2021 quarter weighted average of concentrate grade of 0.58% and cathode grade of 0.64%.

March 2021 year to date weighted average of concentrate grade of 0.53% and cathode grade of 0.84%.

 
Copper (continued) 
Metals production is payable metal unless otherwise 
 stated. 
 
Antamina, Peru 
 Material mined 
  (100%)                (kt)    52,872  13,975  45,458  57,029  53,762  156,249  175,395 
 Sulphide ore milled 
  (100%)                (kt)    12,906   6,736  13,202  14,083  12,651   39,936   39,664 
 Average head grades 
  - Copper              (%)      0.88%   0.91%   0.94%   0.97%   0.94%    0.95%    0.94% 
  - Zinc                (%)      1.09%   1.02%   1.30%   1.30%   1.16%    1.26%    0.90% 
 
 Production 
 Payable copper         (kt)      32.9    17.8    34.6    38.6    34.7    107.9    106.7 
 Payable zinc           (t)     31,789  13,736  34,398  41,909  33,299  109,606   74,726 
                        (troy 
 Payable silver          koz)    1,216     626   1,326   1,767   1,463    4,556    3,490 
 Payable lead           (t)        621     262     690     993     468    2,151    1,409 
 Payable molybdenum     (t)        491     243     284     192     276      752    1,423 
 
 Sales 
 Payable copper         (kt)      30.8    18.2    33.8    40.7    31.7    106.2    107.5 
 Payable zinc           (t)     31,007  11,680  32,769  45,109  34,141  112,019   75,011 
                        (troy 
 Payable silver          koz)      815     581   1,310   1,728   1,342    4,380    3,165 
 Payable lead           (t)        151     188     748     945     689    2,382    1,427 
 Payable molybdenum     (t)        531     223     392     352     192      936    1,104 
 

16

Production and sales report

 
                                                 Quarter ended                Year to date 
                                    --------------------------------------  --------------- 
                                      Mar     Jun     Sep     Dec     Mar     Mar     Mar 
                                      2020    2020    2020    2020    2021    2021    2020 
                                    ------  ------  ------  ------  ------  ------  ------- 
Olympic Dam, Australia 
 Material mined (1)        (kt)      1,920   1,928   2,203   2,379   1,979   6,561    6,744 
 Ore milled                (kt)      2,178   2,416   2,443   2,377   2,238   7,058    6,531 
 Average copper grade      (%)       2.31%   2.17%   2.03%   2.02%   2.02%   2.02%    2.33% 
 Average uranium 
  grade                    (kg/t)     0.69    0.60    0.53    0.60    0.61    0.58     0.68 
 
 Production 
 Copper cathode (ER 
  and EW)                  (kt)       38.4    47.6    51.5    47.6    55.4   154.5    124.0 
 Payable uranium           (t)         776   1,016     874     945     834   2,653    2,662 
                           (troy 
 Refined gold               oz)     33,235  34,150  36,608  23,837  37,075  97,520  111,822 
                           (troy 
 Refined silver             koz)       241     295     157     193     275     625      689 
 
 Sales 
 Copper cathode (ER 
  and EW)                  (kt)       41.4    48.5    49.5    46.6    55.6   151.7    122.5 
 Payable uranium           (t)         702   1,293     859     999     779   2,637    2,118 
                           (troy 
 Refined gold               oz)     36,956  37,743  36,054  21,390  38,852  96,296  113,536 
                           (troy 
 Refined silver             koz)       259     270     222     165     242     629      711 
 

(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)      16,449  17,110  16,410  17,637  14,614   48,661   48,531 
 Area C Joint Venture    (kt)      12,179  13,973  11,889  11,567  13,010   36,466   37,526 
 Yandi Joint Venture     (kt)      17,491  19,087  17,666  16,413  16,112   50,191   50,175 
 Jimblebar (1)           (kt)      13,911  16,559  20,075  16,740  15,241   52,056   45,195 
 Wheelarra               (kt)           -       -       -       -       -        -        3 
 Total production        (kt)      60,030  66,729  66,040  62,357  58,977  187,374  181,430 
 Total production 
  (100%)                 (kt)      68,168  75,589  74,152  70,407  66,695  211,254  205,469 
 
 Sales 
 Lump                    (kt)      15,617  17,252  17,056  16,703  15,593   49,352   46,384 
 Fines                   (kt)      44,764  50,904  48,390  46,124  42,939  137,453  136,058 
 Total                   (kt)      60,381  68,156  65,446  62,827  58,532  186,805  182,442 
 Total sales (100%)      (kt)      68,439  77,048  73,355  70,772  66,032  210,159  206,211 
 

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

 
Samarco, Brazil (1) 
 Production             (kt)            -      -      -     37    878    915      - 
 
 Sales                  (kt)            -      -      -      -    646    646      - 
 
 

(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.

17

Production and sales report

 
                                                        Quarter ended                Year to date 
                                           --------------------------------------  --------------- 
                                             Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                             2020    2020    2020    2020    2021    2021     2020 
                                           ------  ------  ------  ------  ------  -------  ------ 
Coal 
Coal production is reported on the 
 basis of saleable product. 
 
Queensland Coal, Australia 
      Production (1) 
      BMA 
 Blackwater                   (kt)          1,063   1,703   1,184   1,737   1,416    4,337   3,842 
 Goonyella                    (kt)          1,963   2,651   2,312   2,152   2,232    6,696   6,114 
 Peak Downs                   (kt)          1,339   1,635   1,487   1,213   1,595    4,295   4,148 
 Saraji                       (kt)          1,025   1,399     817   1,043   1,238    3,098   3,564 
 Daunia                       (kt)            447     588     490     464     496    1,450   1,582 
 Caval Ridge                  (kt)          1,032   1,102   1,075     930     750    2,755   3,247 
 Total BMA                    (kt)          6,869   9,078   7,365   7,539   7,727   22,631  22,497 
 Total BMA (100%)             (kt)         13,738  18,156  14,730  15,078  15,454   45,262  44,994 
 
      BHP Mitsui Coal (2) 
 South Walker Creek           (kt)          1,577   1,264   1,238   1,118   1,031    3,387   4,151 
 Poitrel                      (kt)            776   1,272   1,087     865     832    2,784   2,856 
 Total BHP Mitsui 
  Coal                        (kt)          2,353   2,536   2,325   1,983   1,863    6,171   7,007 
 
 Total Queensland 
  Coal                        (kt)          9,222  11,614   9,690   9,522   9,590   28,802  29,504 
 Total Queensland 
  Coal (100%)                 (kt)         16,091  20,692  17,055  17,061  17,317   51,433  52,001 
 
      Sales 
      BMA 
 Coking coal                  (kt)          6,417   7,547   6,187   6,531   6,752   19,470  20,154 
 Weak coking coal             (kt)            644   1,040     977     936   1,038    2,951   2,249 
 Thermal coal                 (kt)            224     183      58       3     206      267     348 
 Total BMA                    (kt)          7,285   8,770   7,222   7,470   7,996   22,688  22,751 
 Total BMA (100%)             (kt)         14,570  17,540  14,444  14,940  15,992   45,376  45,501 
 
      BHP Mitsui Coal (2) 
 Coking coal                  (kt)            667     778     671     604     357    1,632   2,004 
 Weak coking coal             (kt)          1,691   1,756   1,545   1,518   1,404    4,467   5,027 
 Total BHP Mitsui 
  Coal                        (kt)          2,358   2,534   2,216   2,122   1,761    6,099   7,031 
 
 Total Queensland 
  Coal                        (kt)          9,643  11,304   9,438   9,592   9,757   28,787  29,782 
 Total Queensland 
  Coal (100%)                 (kt)         16,928  20,074  16,660  17,062  17,753   51,475  52,532 
 
 
   (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)        3,810  4,887  3,624  3,229  2,981  9,834  11,165 
 
     Sales 
 Export thermal coal           (kt)        3,403  4,871  3,168  3,940  2,827  9,935  10,430 
 Inland thermal coal 
  (1)                          (kt)            -      -      -      -      -      -     567 
 Total                         (kt)        3,403  4,871  3,168  3,940  2,827  9,935  10,997 
 
 
   (1)   The domestic sales contract ended in the September 2019 quarter. 
 
Cerrejón, Colombia 
 Production                 (kt)        1,978    767  1,038    347  1,795  3,180  6,348 
 
 Sales thermal coal 
  - export                  (kt)        2,028  1,143    994    370  1,746  3,110  6,358 
 
 

18

Production and sales report

 
                                                Quarter ended                Year to date 
                                   --------------------------------------  --------------- 
                                     Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                     2020    2020    2020    2020    2021    2021     2020 
                                   ------  ------  ------  ------  ------  -------  ------ 
Other 
Nickel production is reported 
 on the basis of saleable product 
 
Nickel West, Australia 
 Mt Keith 
 Nickel concentrate         (kt)     42.8    60.2    64.4    55.7    54.1    174.2   118.0 
 Average nickel grade       (%)      15.8    16.5    15.8    14.7    13.3     14.7    17.1 
 
 Leinster 
 Nickel concentrate         (kt)     57.8    72.0    66.2    72.8    71.5    210.5   181.6 
 Average nickel grade       (%)       9.8    10.2     9.0     9.5    10.2      9.6     9.5 
 
 Saleable production 
 Refined nickel (1) 
  (2)                       (kt)     16.6    20.5    17.3    20.4    15.2     52.9    45.1 
 Intermediates and 
  nickel by-products 
  (1) (3)                   (kt)      4.3     3.4     4.9     3.6     5.2     13.7    11.1 
 Total nickel (1)           (kt)     20.9    23.9    22.2    24.0    20.4     66.6    56.2 
 
 Cobalt by-products         (t)       132     312     238     236     273      747     463 
 
 Sales 
 Refined nickel (1) 
  (2)                       (kt)     16.8    19.7    17.1    20.9    15.0     53.0    44.4 
 Intermediates and 
  nickel by-products 
  (1) (3)                   (kt)      2.9     4.2     4.6     2.6     5.9     13.1    11.3 
 Total nickel (1)           (kt)     19.7    23.9    21.7    23.5    20.9     66.1    55.7 
 
 Cobalt by-products         (t)       132     312     238     237     273      748     475 
 
   (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. 

19

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April 21, 2021 02:00 ET (06:00 GMT)

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