TIDMBHP
RNS Number : 7564F
BHP Group PLC
16 July 2019
Release Time IMMEDIATE
Date 17 July 2019
Release Number 14/19
BHP OPERATIONAL REVIEW
FOR THE YEARED 30 JUNE 2019
-- Exceeded full year production guidance for petroleum and met
revised guidance for copper and iron ore. Metallurgical coal and
energy coal production marginally below guidance predominantly as a
result of lower than expected wash plant yields and adverse weather
impacts during the June 2019 quarter.
-- Group copper equivalent production increased by 11% in the
June 2019 quarter reflecting a strong operational performance
across the portfolio, particularly at Western Australia Iron Ore
and Queensland Coal which achieved annualised run rates above 290
Mt (excluding the impact of Tropical Cyclone Veronica) and 48 Mt
respectively during the quarter.
-- Group copper equivalent production for the 2019 financial
year declined by 2%(1) , with annual production records at two
petroleum and four minerals operations offset by grade and natural
field decline, weather-related interruptions and several unplanned
outages.
-- We expect to achieve full year unit cost guidance(2) at
Petroleum, Escondida and Western Australia Iron Ore. Queensland
Coal and New South Wales Energy Coal unit costs are expected to be
marginally above guidance (based on 2019 financial year guidance
exchange rates of AUD/USD 0.75 and USD/CLP 663).
-- Group copper equivalent production(1) for the 2020 financial
year is expected to be slightly higher than the 2019 financial year
despite a 7% decline in petroleum volumes largely due to natural
field decline.
-- In Petroleum, the Bélé-1, Tuk-1 and Hi-Hat-1 exploration
wells in Trinidad and Tobago all encountered hydrocarbons during
the quarter. Over the full year, seven out of nine wells drilled
were successful.
-- All major projects under development are tracking to plan.
-- Underlying improvements in productivity were largely offset
by the impact of unplanned production outages of US$835 million
during the first half, in addition to grade decline in copper and
higher unit costs in coal. A negative movement of approximately
US$1 billion is now expected to be recorded for the 2019 financial
year.
FY19 Jun Q19
(vs FY18) (vs Mar
Production Q19) Jun Q19 commentary
-------------- ----------- --------- ------------------------------------------
Higher seasonal gas volumes and higher
Petroleum uptime due to planned shutdowns in
(MMboe) 121 30 the previous quarter at Bass Strait.
(+1%) (+3%)
Strong performance at all three Chilean
operations partially offset by the
impact of two minor production outages
Copper (kt) 1,689 444 at Olympic Dam.
(-4%) (+6%)
Iron ore (Mt) 238 63 Increased production at Western Australia
Iron Ore (WAIO) reflected the return
to full capacity following Tropical
Cyclone Veronica in March 2019.
(0%) (+12%)
Metallurgical 42 12 Record production at BMC and improved
coal (Mt) mining performance across most operations
following significant wet weather impacts
in the previous quarter.
(-1%) (+20%)
Energy coal 27 7 Increased stripping performance at
(Mt) New South Wales Energy Coal (NSWEC),
partially offset by the impact of adverse
weather at Cerrejón.
(-6%) (+10%)
Nickel (kt) 87 29 Increased production reflected completion
of final repairs and ramp up of the
Kalgoorlie smelter in the prior quarter.
(-6%) (+49%)
We expect the financial results for the second half of the 2019
financial year to reflect certain items as summarised in the table
on page 3.
1
Summary
BHP Chief Executive Officer, Andrew Mackenzie:
"We finished the 2019 financial year with an 11 per cent
increase in quarterly production, driven by strong operational
performances across our portfolio, including annual production
records at a number of our petroleum, copper, iron ore and
metallurgical coal operations. Our overall production was broadly
in line with last year, overcoming the impacts of weather, grade
and natural field decline, and unplanned outages in the first half.
Our exploration program delivered encouraging results, with seven
out of nine petroleum wells successful and further evaluation of
the Oak Dam copper prospect underway. Strong underlying performance
puts us in a position to deliver higher volumes in the 2020
financial year. BHP's suite of attractive options, together with
our culture and transformation programs, will grow returns and
create long-term financial and social value."
Operational performance
Production and guidance are summarised below.
FY19 Jun Q19 Jun Q19
vs vs vs FY20 FY20e
Production FY19 Jun Q19 FY18 Jun Q18 Mar Q19 guidance vs FY19
------------------------------------ ----- ------- ----- -------- -------- ------------- ------------------
Petroleum (MMboe) 121 30 1% 4% 3% 110 - 116 (9%) - (4%)
Copper (kt) 1,689 444 (4%) (4%) 6% 1,705 - 1,820 1% - 8%
Escondida (kt) 1,135 288 (6%) (9%) 7% 1,160 - 1,230 2% - 8%
Other copper(i) (kt) 554 157 3% 6% 3% 545 - 590 (2%) - 6%
Iron ore(ii) (Mt) 238 63 0% (2%) 12% 242 - 253 2% - 6%
WAIO (100% basis) (Mt) 270 71 (2%) (1%) 12% 273 - 286 1% - 6%
Metallurgical coal (Mt) 42 12 (1%) (1%) 20% 41 - 45 (3%) - 6%
Queensland Coal (100% basis) (Mt) 75 21 (1%) (1%) 20% 73 - 79 (2%) - 6%
Energy coal (Mt) 27 7 (6%) (18%) 10% 24 - 26 (13%) - (5%)
NSWEC (Mt) 18 5 (2%) (14%) 19% 15 - 17 (18%) - (7%)
Cerrejón (Mt) 9 2 (13%) (28%) (8%) 9 Broadly unchanged
Nickel (kt) 87 29 (6%) 12% 49% 87 Broadly unchanged
(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Increase in BHP's share of volumes reflects the expiry of
the Wheelarra Joint Venture sublease in March 2018, with control of
the sublease area reverted to the Jimblebar Joint Venture, which is
accounted for on a consolidated basis with minority interest
adjustments.
Major development projects
During the year, the North West Shelf Greater Western Flank-B
project achieved first production ahead of schedule and under
budget. The BHP Board also approved the Atlantis Phase 3 project in
the US Gulf of Mexico.
At the end of the 2019 financial year, BHP had five major
projects under development in petroleum, copper, iron ore and
potash, with a combined budget of US$11.1 billion over the life of
the projects.
2
Summary of disclosures
BHP expects its financial results for the second half of the
2019 financial year to reflect certain items as summarised in the
table below. The table does not provide a comprehensive list of all
items impacting the period. The financial statements are the
subject of ongoing work that will not be finalised until the
release of the financial results on 20 August 2019. Accordingly the
information is subject to update.
H2 FY19
impact
Description US$M(i) Classification(ii)
------------------------------------------------------------------------ ------------------- -----------------------
Continuing operations
Unit costs for Petroleum, Escondida and WAIO expected to be in line with Refer footnote(iii) Operating costs
full year guidance,
although tracking to upper limits
Queensland Coal and NSWEC unit costs expected to be marginally above Refer footnote(iii) Operating costs
full year guidance due
to the impacts of higher stripping costs and wet weather in Queensland
Increase in closure and rehabilitation provision for closed mines(iv) 250 Operating costs
Restructuring and redundancy costs in relation to World Class Functions 100 Operating costs
Exploration expense (including petroleum and minerals exploration 294 Exploration expense
programs)
The Group's adjusted effective tax rate for the full year is expected to Refer footnote(iii) Taxation expense
be at the higher
end of the guidance range of 33 to 38 per cent
Non-cash fair value adjustments related to interest rate and exchange Refer footnote(iii) Net debt
rate movements are expected
to increase net debt in the June 2019 half year
Special dividend paid to shareholders on 30 January 2019 5,188 Financing cash outflow
Dividends paid to non-controlling interests 570 Financing cash outflow
Provision for decommissioning the Germano dam at Samarco 260 Exceptional item charge
Financial impact on BHP Billiton Brasil of the Samarco dam failure Refer footnote(iii) Exceptional item charge
Discontinued operations
Net proceeds received from the sale of Onshore US (including final four 3,503 Investing cash inflow
instalment payments)
(i) Numbers are not tax effected, unless otherwise noted.
(ii) There will be a corresponding balance sheet, cash flow
and/or income statement impact as relevant.
(iii) Financial impact is the subject of ongoing work and is not yet finalised.
(iv) Increase is attributable to closed mines managed by
Petroleum due to their geographical location.
Underlying improvements in productivity were largely offset by
the impact of unplanned production outages of US$835 million during
the December 2018 half year. Productivity for the June 2019 half
year has been impacted by higher than expected unit costs at
Queensland Coal (lower volumes, wet weather and increased
contractor stripping costs); New South Wales Energy Coal (higher
strip ratio and contractor stripping costs); and Nickel West (mine
plan changes); in addition to expected grade decline in copper. As
a result, we expect a negative movement in productivity of
approximately US$1 billion for the 2019 financial year, excluding
the impact of Tropical Cyclone Veronica on our WAIO operations.
3
Average realised prices
The average realised prices achieved for our major commodities
are summarised below.
FY19 Jun H19 Jun H19
vs vs vs
Average realised prices(i) Jun H19 Dec H18 FY19 FY18 FY18 Jun H18 Dec H18
------------------------------------- --------- --------- ------ ------ ------- ---------- ----------
Oil (crude and condensate) (US$/bbl) 63.29 69.91 66.59 60.57 10% (7%) (9%)
Natural gas (US$/Mscf)(ii) 4.42 4.67 4.55 4.44 2% (8%) (5%)
LNG (US$/Mscf) 8.53 10.19 9.43 8.07 17% (1%) (16%)
Copper (US$/lb)(iii) 2.70 2.54 2.62 3.00 (13%) (8%) 6%
Iron ore (US$/wmt, FOB) 77.74 55.62 66.68 56.71 18% 37% 40%
Metallurgical coal (US$/t) 179.53 179.82 179.67 177.22 1% (5%) 0%
Hard coking coal (US$/t)(iv) 201.33 197.86 199.61 194.59 3% (2%) 2%
Weak coking coal (US$/t)(iv) 126.46 134.12 130.18 131.70 (1%) (12%) (6%)
Thermal coal (US$/t)(v) 72.18 84.15 77.90 86.94 (10%) (17%) (14%)
Nickel metal (US$/t) 12,444 12,480 12,462 12,591 (1%) (11%) 0%
(i) Based on provisional, unaudited estimates. Prices exclude
sales from equity accounted investments, third party product and
internal sales, and represent the weighted average of various sales
terms (for example: FOB, CIF and CFR), unless otherwise noted.
Includes the impact of provisional pricing and finalisation
adjustments.
(ii) Includes internal sales.
(iii) Comparative financial information has been restated for
the new accounting standard, IFRS 15 Revenue from Contracts with
Customers, which became effective from 1 July 2018.
(iv) 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.
(v) Export sales only; excludes Cerrejón. Includes thermal coal
sales from metallurgical coal mines.
The majority of iron ore shipments were linked to the index
price for the month of shipment, with price differentials
predominantly a reflection of market fundamentals and product
quality. The majority of metallurgical coal and energy coal exports
were linked to the index price for the month of shipment or sold on
the spot market at fixed or index-linked prices, with price
differentials reflecting product quality.
At 30 June 2019, the Group had 322 kt of outstanding copper
sales that were revalued at a weighted average price of US$2.72 per
pound. The final price of these sales will be determined in the
2020 financial year. In addition, 364 kt of copper sales from the
2018 financial year were subject to a finalisation adjustment in
the current period. The provisional pricing and finalisation
adjustments will decrease Underlying EBITDA(3) by US$242 million in
the 2019 financial year and is included in the average realised
copper price in the above table.
Corporate update
On 26 June 2019, BHP Western Australia Iron Ore and its Joint
Venture Partners (JVPs) settled a dispute with the Western
Australian Government in relation to a long-standing deduction made
by BHP and its JVPs in the calculation of royalties. The settlement
resolved all issues relating to this deduction and there is no
assertion by the State that BHP, or its JVPs, have deliberately or
knowingly sought to avoid or minimise the royalties payable to the
State of Western Australia. As part of the settlement, BHP and its
JVPs have ceased to claim the deduction in question and have agreed
to make a payment of A$250 million (100 per cent basis) to the
State in resolution of the dispute. The payment will be made in the
first half of the 2020 financial year.
In January 2019, BHP agreed to fund US$438 million in financial
support for the Renova Foundation until 31 December 2019 which will
be offset against the Group's provision for the Samarco dam
failure. In addition, in June 2019 BHP agreed to fund a short-term
facility of up to US$79 million to be made available to Samarco
until 31 December 2019.
4
BHP is currently reviewing the assumptions used to determine the
Group's provision for the Samarco dam failure, including an
expected increase in the total cost estimate related to the timing
of lifting the fishing ban, delays in the resettlement of
communities impacted by the dam failure and increases in the number
of people eligible for financial assistance and compensation. For
the second half of the 2019 financial year, we are not yet in a
position to provide an update to the ongoing potential financial
impacts on BHP Billiton Brasil of the Samarco dam failure. Any
financial impacts will continue to be treated as an exceptional
item.
Due to legislative changes in Brazil, Samarco is currently
progressing plans for the accelerated decommissioning of its
upstream tailings dams (the Germano dam complex). The accelerated
timing is expected to result in a provision of approximately US$260
million (BHP share), as Samarco is not currently expected to
generate sufficient cash flows to fund the required decommissioning
costs. BHP will recognise this in its financial results for the
second half of the 2019 financial year and treat it as an
exceptional item.
Petroleum
Production
FY19 Jun Q19 Jun Q19
Jun vs vs vs
FY19 Q19 FY18 Jun Q18 Mar Q19
----------------- ----------------- ------- ---------- ----------
Crude oil, condensate and
natural gas liquids (MMboe) 55 13 (4%) (1%) 1%
Natural gas (bcf) 397 98 5% 8% 5%
Total petroleum production
(MMboe) 121 30 1% 4% 3%
Petroleum - Total petroleum production increased by one per cent
to 121 MMboe. Volumes are expected to decrease to between 110 and
116 MMboe in the 2020 financial year as a result of planned
maintenance at Atlantis and natural field decline across the
portfolio.
Crude oil, condensate and natural gas liquids production
decreased by four per cent to 55 MMboe due to natural field decline
across the portfolio and a 70-day planned dry dock maintenance
program at Pyrenees completed during the September 2018 quarter.
This decline was partly offset by higher uptime and stronger field
performance at Atlantis and Mad Dog.
Natural gas production increased by five per cent to 397 bcf,
reflecting increased tax barrels at Trinidad and Tobago in
accordance with the terms of our Production Sharing Contract and
higher uptime at North West Shelf. This was partially offset by
planned maintenance at Trinidad and Tobago in the December 2018
quarter, the impact of Tropical Cyclone Veronica in Western
Australia and natural field decline across the portfolio.
Projects
Project and Capital expenditure Initial production
ownership US$M target date Capacity Progress
--------------------- ----------------------- ---------------------- ---------------------- ----------------------
Mad Dog Phase 2 2,154 CY22 New floating On schedule and
(US Gulf of Mexico) production facility budget. The overall
23.9% (non-operator) with the capacity to project is 53%
produce up to 140,000 complete.
gross barrels
of crude oil per day.
Atlantis Phase 3 696 CY20 New subsea production On schedule and
(US Gulf of Mexico) system that will tie budget. The overall
44% (non-operator) back to the existing project is 13%
Atlantis facility, complete.
with capacity
to produce up to
38,000 gross barrels
of oil equivalent per
day.
The Bass Strait West Barracouta project is tracking to plan and
study work continues on the Ruby project in Trinidad and Tobago
with an investment decision expected during the September 2019
quarter.
5
Petroleum exploration
Exploration and appraisal wells drilled during the June 2019
quarter are summarised below.
Total
Formation BHP Spud Water well
Well Location Target age equity date depth depth Status
----------------- ----------- ------- ---------- ------------------- --------- -------- -------- -------------
Bélé-1 Trinidad & Gas Pliocene 70% (BHP Operator) 2 March 2,102 m 3,982 m Hydrocarbons
Tobago 2019 encountered;
Block Plugged and
23(a) abandoned
Tuk-1 Trinidad & Gas Pliocene 70% (BHP Operator) 24 April 1,954 m 4,511 m Hydrocarbons
Tobago 2019 encountered;
Block Plugged and
23(a) abandoned
Hi-Hat-1 Trinidad & Gas Pliocene 70% (BHP Operator) 20 May 1,782 m 3,804 m Hydrocarbons
Tobago 2019 encountered;
Block 14 Plugged and
abandoned
Western Dry hole;
Australia 15.8% (Woodside 2 May Plugged and
Achernar-1 WA-28-P Gas Jurassic Operator) 2019 122 m 3,285 m abandoned
In Trinidad and Tobago, Phase 3 of our deepwater drilling
campaign was completed. This campaign included three wells -
Bélé-1, Tuk-1 and Hi-Hat-1 - which have all been successfully
drilled and encountered gas. These three discoveries in our
Northern licences have established additional volumes around the
Bongos discovery and evaluations are ongoing. Technical work is
underway to assess further exploration targets and commercial
options for the Northern Gas play.
In Australia, as part of the North West Shelf Joint Venture, we
participated in the Achernar-1 exploration to fulfil a well
commitment on the WA-28-P exploration permit. The well was a dry
hole and was plugged and abandoned.
In Mexico, we spud the Trion-3DEL appraisal well on 9 July 2019
to further delineate the scale and characterisation of the
resource.
Petroleum exploration expenditure for the 2019 financial year
was US$685 million, of which US$388 million was expensed.
Copper
Production
FY19 Jun Q19 Jun Q19
vs vs vs
FY19 Jun Q19 FY18 Jun Q18 Mar Q19
--------------- ---------------- ----- -------- --------
Copper (kt) 1,689 444 (4%) (4%) 6%
Zinc (t) 98,112 22,469 (18%) (38%) 8%
Uranium (t) 3,565 975 6% (13%) (12%)
Copper - Total copper production decreased by four per cent to
1,689 kt. Production of between 1,705 and 1,820 kt is expected in
the 2020 financial year.
Escondida copper production decreased by six per cent to 1,135
kt, as an expected 12 per cent decline in copper grade was
partially offset by record average concentrator throughput of 344
ktpd. Production of between 1,160 and 1,230 kt is expected in the
2020 financial year, underpinned by a further uplift in
concentrator throughput, partly offset by an approximately five per
cent reduction in copper grade of concentrator feed.
Pampa Norte copper production decreased by seven per cent to 247
kt due to adverse weather impacts in the March 2019 quarter and a
production outage at Spence following a fire at the electro-winning
plant in September 2018. This was partially offset by record ore
milled at Spence and Cerro Colorado after implementing maintenance
improvement initiatives as part of our broader transformation
program. Production at Pampa Norte is expected to be between 230
and 250 kt in the 2020 financial year.
6
Olympic Dam copper production increased by 17 per cent to 160 kt
as a result of the major smelter maintenance campaign in the prior
period, which was partially offset by an unplanned acid plant
outage in August 2018, and two minor production outages in May 2019
relating to the smelter and to the refinery crane. Underground
operations continue to perform well, with record development
kilometres achieved(4) . Production is expected to increase to
between 180 and 205 kt in the 2020 financial year reflecting
improved operational performance, partially offset by planned
maintenance related to the replacement of the refinery crane
(pre-work scheduled for the September 2019 quarter and physical
replacement and commissioning scheduled for the March 2020
quarter). During the 2019 financial year, we successfully completed
the heap leach research and development trial, confirming the
viability of the technology to extract copper, uranium, gold and
silver at Olympic Dam.
Antamina copper production increased by six per cent to 147 kt
and zinc production decreased by 18 per cent to 98 kt, reflecting
higher copper head grades and lower zinc head grades, in line with
the mine plan. Antamina successfully completed a collective
agreement with the SUTRACOMASA Union on 11 June 2019, for 36 months
expiring on 31 July 2021. Copper production of approximately 135 kt
and zinc production of approximately 110 kt is expected in the 2020
financial year.
During the June 2019 quarter, we went live with our Integrated
Operations centre in Santiago, which enables planning, control and
monitoring across the supply chains for Escondida and Spence.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
-------------- ------------ ----------- --------------------------- ---------------------
Spence Growth 2,460 FY21 New 95 ktpd concentrator On schedule and
Option is expected to increase budget. The overall
Spence's payable copper project is 60%
in concentrate production complete.
by approximately 185
ktpa in the first
10 years of operation
and extend the mining
operations by more
than 50 years.
(Chile)
100%
Iron Ore
Production
FY19 Jun Q19 Jun Q19
vs vs vs
FY19 Jun Q19 FY18 Jun Q18 Mar Q19
------- ------- ----- -------- --------
Iron ore production (kt) 237,964 62,595 0% (2%) 12%
Iron ore - Total iron ore production was broadly unchanged at
238 Mt (270 Mt on a 100 per cent basis). Production of between 242
and 253 Mt (273 and 286 Mt on a 100 per cent basis) is expected in
the 2020 financial year as we undertake a significant maintenance
program at Port Hedland. This program is designed to improve
productivity and provide a stable base for our tightly coupled
supply chain as we sustainably increase production towards 290 Mtpa
(100 per cent basis). As part of this, a major car dumper
maintenance campaign is planned for the September 2019 quarter,
with a corresponding impact expected on production.
At WAIO, volumes were flat reflecting record production at
Jimblebar and inventory impacts from the Mt Whaleback fire in the
prior period. This was offset by the impacts of planned maintenance
in the September 2018 quarter, a train derailment on 5 November
2018 and Tropical Cyclone Veronica in March 2019. The port ramp up
subsequent to the cyclone was achieved on 10 April 2019. During the
quarter, WAIO achieved an annualised run rate above 290 Mt,
excluding the cyclone impact.
7
Mining and processing operations at Samarco remain suspended
following the failure of the Fundão tailings dam and Santarém water
dam on 5 November 2015.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
-------------- ------------ ----------- ---------------------------- --------------------------
South Flank 3,061 CY21 Sustaining iron ore On schedule and
mine to replace production budget. The overall
from the 80 Mtpa project is 39% complete.
(100 per cent basis)
Yandi mine.
(Australia)
85%
Coal
Production
FY19 Jun Q19 Jun Q19
vs vs vs
FY19 Jun Q19 FY18 Jun Q18 Mar Q19
------ ------- ----- -------- --------
Metallurgical coal (kt) 42,401 11,894 (1%) (1%) 20%
Energy coal (kt) 27,487 7,429 (6%) (18%) 10%
Metallurgical coal - Metallurgical coal production was broadly
flat at 42 Mt (75 Mt on a 100 per cent basis). Production is
expected to be between 41 and 45 Mt (73 and 79 Mt on a 100 per cent
basis) in the 2020 financial year. With major wash plant shutdowns
at Goonyella, Peak Downs and Caval Ridge planned in the September
2019 quarter, volumes will be significantly weighted to the
subsequent three quarters of the financial year.
At Queensland Coal, record annual production was achieved at BMC
due to improved wash plant performance and increased yields at
South Walker Creek and higher wash plant throughput at Poitrel
following the purchase of the remaining 50 per cent of Red Mountain
processing facility. Despite record stripping, BMA's production
decreased slightly due to unfavourable weather impacts (March and
June 2019 quarters) and lower wash plant yields (June 2019
quarter).
Energy coal - Energy coal production for the 2019 financial year
decreased six per cent to 27 Mt. Production is expected to decrease
to between 24 and 26 Mt in the 2020 financial year.
New South Wales Energy Coal production decreased by two per cent
as record stripping performance was offset by higher strip ratios
and lower wash plant yields as we progress through the monocline
and optimise our mine plan to focus on higher quality products
given widening quality differentials. In the 2020 financial year,
the combination of the monocline and a changed product mix to focus
on higher quality products is expected to result in a decrease in
production to between 15 and 17 Mt.
Cerrejón production decreased by 13 per cent due to adverse
weather and its impacts on mine sequencing. Production is expected
to be approximately 9 Mt in the 2020 financial year.
Other
Nickel production
FY19 Jun Q19 Jun Q19
vs vs vs
FY19 Jun Q19 FY18 Jun Q18 Mar Q19
---- ------- ----- -------- --------
Nickel (kt) 87.4 28.7 (6%) 12% 49%
Nickel - Nickel West production decreased by six per cent to 87
kt as operations were suspended following a fire at the Kalgoorlie
smelter in September 2018. The smelter returned to operation on 1
October 2018, with final repairs and ramp up completed in the March
2019 quarter. The Kwinana refinery achieved record saleable
production of 74 kt in the 2019 financial year. Total nickel
production is expected to be broadly unchanged in the 2020
financial year.
8
Potash project
Project and Investment
ownership US$M Scope Progress
------------- ---------- ------------------------------- -----------------------------
Jansen Potash 2,700 Investment to finish The project is 84% complete
the excavation and lining and within the approved
of the production and budget. Boring equipment
service shafts, and to has been removed from
continue the installation both shafts and preparation
of essential surface work for final shaft
infrastructure and utilities. lining is continuing.
(Canada)
100%
Minerals exploration
Minerals exploration expenditure for the 2019 financial year was
US$188 million, of which US$128 million was expensed. Greenfield
minerals exploration is predominantly focused on advancing copper
targets within Chile, Ecuador, Peru, Canada, South Australia and
the South-West United States.
During the June 2019 quarter, the second phase of the drilling
program at Oak Dam was progressed, with 12,425 metres in 10 holes.
The program tested lateral continuity, thicknesses and orientation
of the central part of the mineralised system, with the drill
results currently being evaluated and interpreted.
Consistent with our exploration focus on copper, in April 2019,
BHP secured a five per cent interest in Midland Exploration Inc.,
which has copper exploration tenements in Canada.
In May 2019, BHP entered into a two-year, US$2 million
Exploration Financing Agreement with Riverside Resources to fund
exploration in Mexico's north-eastern Sonora region. The
exploration program will focus on the central part of the Laramide
Copper Belt.
In July 2019, BHP entered into a binding earn-in and joint
venture agreement with Luminex for its Tarqui and Tarqui 2 mining
concessions in Ecuador. BHP will act as manager and operator of the
joint venture company, and is preparing to continue exploration
activities on the sites.
Variance analysis relates to the relative performance of BHP
and/or its operations during the 2019 financial year compared with
the 2018 financial year, unless otherwise noted. Production
volumes, sales volumes and capital and exploration expenditure from
subsidiaries are reported on a 100 per cent basis; production and
sales volumes from equity accounted investments and other
operations are reported on a proportionate consolidation basis.
Numbers presented may not add up precisely to the totals provided
due to rounding. Copper equivalent production based on 2019
financial year average realised prices.
The following footnotes apply to this Operational Review:
(1) Excludes production from Onshore US
(2) 2019 financial year unit cost guidance: Petroleum
<US$11/boe, Escondida <US$1.15/lb, WAIO <US$15/t,
Queensland Coal US$68-72/t and NSWEC US$51/t; based on exchange
rates of AUD/USD 0.75 and USD/CLP 663.
(3) Underlying EBIT and Underlying EBITDA are used to reflect
the underlying performance of BHP. Underlying EBIT is earnings
before net finance costs, taxation and any exceptional items.
Underlying EBITDA is Underlying EBIT before depreciation,
amortisation and impairment.
(4) Based on business-as-usual development; excludes project development.
The following abbreviations may have been used throughout this
report: barrels (bbl); billion cubic feet (bcf); cost and freight
(CFR); cost, insurance and freight (CIF); dry metric tonne unit
(dmtu); free on board (FOB); grams per tonne (g/t); kilograms per
tonne (kg/t); kilometre (km); metre (m); million barrels of oil
equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds
(lb); thousand barrels of oil equivalent (Mboe); thousand 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', '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 27 'Subsidiaries'
in section 5.1 of BHP's 30 June 2018 Annual Report and Form 20-F,
unless stated otherwise. 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.
9
Further information on BHP can be found at: bhp.com
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
Australia and Asia Australia and Asia
Gabrielle Notley Tara Dines
Tel: +61 3 9609 3830 Mobile: +61 411 Tel: +61 3 9609 2222 Mobile: +61 499
071 715 249 005
United Kingdom and South Africa United Kingdom and South Africa
Neil Burrows Elisa Morniroli
Tel: +44 20 7802 7484 Mobile: +44 7786 Tel: +44 20 7802 7611 Mobile: +44 7825
661 683 926 646
North America Americas
Judy Dane James Wear
Tel: +1 713 961 8283 Mobile: +1 713 Tel: +1 713 993 3737 Mobile: +1 347
299 5342 882 3011
BHP Group Limited ABN 49 004 028 077 BHP Group plc Registration number 3196209
LEI WZE1WSENV6JSZFK0JC28 LEI 549300C116EOWV835768
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Registered Office: Nova South, 160 Victoria
Street Street
Melbourne Victoria 3000 Australia London SW1E 5LB United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 Tel +44 20 7802 4000 Fax +44 20 7802
3015 4111
Members of the BHP Group which is
headquartered in Australia
Follow us on social media
10
Production summary
Year to
Quarter ended date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2018 2018 2018 2019 2019 2019 2018
Petroleum (1)
Petroleum
Conventional
Crude oil, condensate
and NGL (Mboe) 13,486 14,087 14,497 13,236 13,366 55,186 57,405
Natural gas (bcf) 90.7 112.3 93.9 92.9 97.8 396.9 377.0
Total (Mboe) 28,603 32,804 30,147 28,719 29,666 121,336 120,238
Copper (2)
Copper
Payable metal in concentrate
(kt)
Escondida (3) 57.5% 246.1 240.0 212.6 205.4 224.1 882.1 925.8
Antamina 33.8% 34.6 37.0 38.3 34.5 37.4 147.2 139.5
Total 280.7 277.0 250.9 239.9 261.5 1,029.3 1,065.3
Cathode (kt)
Escondida (3) 57.5% 70.1 55.4 71.9 62.4 63.5 253.2 287.5
Pampa Norte (4) 100% 70.6 43.4 61.8 67.2 74.1 246.5 263.8
Olympic Dam 100% 42.0 33.3 31.6 50.2 45.2 160.3 136.7
Total 182.7 132.1 165.3 179.8 182.8 660.0 688.0
Total copper (kt) 463.4 409.1 416.2 419.7 444.3 1,689.3 1,753.3
Lead
Payable metal in concentrate
(t)
Antamina 33.8% 546 563 600 456 770 2,389 3,434
Total 546 563 600 456 770 2,389 3,434
Zinc
Payable metal in concentrate
(t)
Antamina 33.8% 35,983 30,558 24,237 20,848 22,469 98,112 119,800
Total 35,983 30,558 24,237 20,848 22,469 98,112 119,800
Gold
Payable metal in concentrate
(troy oz)
Escondida (3) 57.5% 68,345 63,578 73,726 73,998 74,704 286,006 229,102
Olympic Dam (refined gold) 100% 33,497 23,471 17,856 28,609 37,032 106,968 91,556
Total 101,842 87,049 91,582 102,607 111,736 392,974 320,658
Silver
Payable metal in concentrate
(troy koz)
Escondida (3) 57.5% 2,527 1,997 2,570 2,189 2,074 8,830 8,796
Antamina 33.8% 1,321 1,309 1,178 1,062 1,209 4,758 5,437
Olympic Dam (refined
silver) 100% 278 213 212 230 268 923 792
Total 4,126 3,519 3,960 3,481 3,551 14,511 15,025
Uranium
Payable metal in concentrate
(t)
Olympic Dam 100% 1,123 555 929 1,106 975 3,565 3,364
Total 1,123 555 929 1,106 975 3,565 3,364
Molybdenum
Payable metal in concentrate
(t)
Antamina 33.8% 261 464 417 82 178 1,141 1,662
Total 261 464 417 82 178 1,141 1,662
11
Production summary
Quarter ended Year to date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2018 2018 2018 2019 2019 2019 2018
Iron Ore
Iron Ore
Production (kt)
(5)
Newman 85% 18,500 16,378 17,578 15,608 17,058 66,622 67,071
Area C Joint Venture 85% 12,041 11,696 10,280 11,627 13,837 47,440 51,517
Yandi Joint Venture 85% 17,339 16,870 15,627 15,214 17,486 65,197 64,048
Jimblebar (6) 85% 15,092 16,353 14,326 13,658 14,209 58,546 30,627
Wheelarra 85% 614 114 30 10 5 159 25,158
Samarco 50% - - - - - - -
Total 63,586 61,411 57,841 56,117 62,595 237,964 238,421
Coal
Metallurgical coal
Production (kt)
(7)
BMA 50% 9,220 7,744 7,694 7,608 9,090 32,136 32,893
BHP Mitsui Coal
(8) 80% 2,789 2,614 2,578 2,269 2,804 10,265 9,747
Total 12,009 10,358 10,272 9,877 11,894 42,401 42,640
Energy coal
Production (kt)
Australia 100% 6,261 3,982 4,311 4,552 5,412 18,257 18,541
Colombia 33.3% 2,762 2,658 2,356 2,199 2,017 9,230 10,617
Total 9,023 6,640 6,667 6,751 7,429 27,487 29,158
Other
Nickel
Saleable production
(kt)
Nickel West (9) 100% 25.6 21.4 18.1 19.2 28.7 87.4 93.0
Total 25.6 21.4 18.1 19.2 28.7 87.4 93.0
Cobalt
Saleable production
(t)
Nickel West 100% 277 249 154 194 302 899 1,060
Total 277 249 154 194 302 899 1,060
(1) LPG and ethane are reported as natural gas liquids (NGL).
Product-specific conversions are made and NGL is reported in
barrels of oil equivalent (boe). Total boe conversions are based on
6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of
saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%.
(9) Production restated to include other nickel by-products.
Throughout this report figures in italics indicate that this
figure has been adjusted since it was previously reported.
12
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Petroleum - Conventional
(1)
Bass Strait
Crude oil and condensate (Mboe) 1,361 1,653 1,401 893 1,246 5,193 5,815
NGL (Mboe) 1,428 1,840 1,447 849 1,299 5,435 6,132
Natural gas (bcf) 29.9 35.1 25.2 21.0 30.6 111.9 125.9
Total petroleum
products (MMboe) 7.8 9.3 7.0 5.2 7.6 29.3 32.9
North West Shelf
Crude oil and condensate (Mboe) 1,267 1,514 1,520 1,431 1,357 5,822 5,560
NGL (Mboe) 186 242 206 193 189 830 823
Natural gas (bcf) 34.2 36.6 37.5 36.6 34.8 145.5 142.4
Total petroleum
products (MMboe) 7.2 7.9 8.0 7.7 7.3 30.9 30.1
Pyrenees
Crude oil and condensate (Mboe) 1,168 282 1,101 940 1,001 3,324 5,138
Total petroleum
products (MMboe) 1.2 0.3 1.1 0.9 1.0 3.3 5.1
Other Australia
(2)
Crude oil and condensate (Mboe) 7 7 8 6 7 28 32
Natural gas (bcf) 13.9 13.8 13.9 13.0 12.2 52.9 56.7
Total petroleum
products (MMboe) 2.3 2.3 2.3 2.2 2.0 8.8 9.5
Atlantis (3)
Crude oil and condensate (Mboe) 3,471 3,190 3,802 3,888 3,607 14,487 13,329
NGL (Mboe) 217 215 268 275 248 1,006 878
Natural gas (bcf) 1.5 1.5 1.9 2.0 2.2 7.6 6.7
Total petroleum
products (MMboe) 3.9 3.7 4.4 4.5 4.2 16.8 15.3
Mad Dog (3)
Crude oil and condensate (Mboe) 581 1,270 1,158 1,258 1,246 4,932 3,972
NGL (Mboe) 27 61 54 58 23 196 198
Natural gas (bcf) 0.1 0.2 0.2 0.2 0.2 0.8 0.6
Total petroleum
products (MMboe) 0.6 1.4 1.2 1.3 1.3 5.3 4.3
Shenzi (3)
Crude oil and condensate (Mboe) 2,110 2,016 2,024 1,881 1,725 7,646 9,237
NGL (Mboe) 151 122 121 112 (2) 353 616
Natural gas (bcf) 0.4 0.4 0.4 0.4 0.4 1.6 1.7
Total petroleum
products (MMboe) 2.3 2.2 2.2 2.1 1.8 8.3 10.1
Trinidad/Tobago
Crude oil and condensate (Mboe) 233 447 200 284 235 1,166 718
Natural gas (bcf) 9.8 24.0 14.0 19.5 17.3 74.8 40.0
Total petroleum
products (MMboe) 1.9 4.4 2.5 3.5 3.1 13.6 7.4
Other Americas
(3) (4)
Crude oil and condensate (Mboe) 313 207 218 284 272 981 938
NGL (Mboe) 22 3 4 18 3 28 33
Natural gas (bcf) 0.3 - 0.1 0.2 0.1 0.4 0.5
Total petroleum
products (MMboe) 0.4 0.2 0.2 0.3 0.3 1.1 1.1
UK (5)
Crude oil and condensate (Mboe) 38 36 36 - - 72 143
NGL (Mboe) 18 21 21 - - 42 88
Natural gas (bcf) 0.6 0.7 0.7 - - 1.4 2.5
Total petroleum
products (MMboe) 0.2 0.2 0.2 - - 0.3 0.6
Algeria
Crude oil and condensate (Mboe) 888 961 908 866 910 3,645 3,755
Total petroleum
products (MMboe) 0.9 1.0 0.9 0.9 0.9 3.6 3.8
13
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Petroleum - Total
(1)
Conventional
Crude oil and
condensate (Mboe) 11,437 11,583 12,376 11,731 11,606 47,296 48,637
NGL (Mboe) 2,049 2,504 2,121 1,505 1,760 7,890 8,768
Natural gas (bcf) 90.7 112.3 93.9 92.9 97.8 396.9 377.0
Total (Mboe) 28,603 32,804 30,147 28,719 29,666 121,336 120,238
Total petroleum production
(MMboe) 48,952.0 52,854.7 36,061.0 28,719.3 29,666.0 147,301 192,346
(1) Total boe conversions are based on 6 bcf of natural gas
equals 1 MMboe. Negative production figures represent finalisation
adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(5) BHP completed the sale of its interest in the Bruce and
Keith oil and gas fields on 30 November 2018. The sale has an
effective date of 1 January 2018.
14
Production and sales report
Quarter ended Year to date
.
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Copper
Metals production is payable
metal unless otherwise
stated.
Escondida, Chile
(1)
Material mined (kt) 106,788 107,260 105,580 103,936 100,693 417,469 416,411
Sulphide ore milled (kt) 31,732 30,513 30,507 32,027 32,519 125,566 118,275
Average concentrator
head grade (%) 0.96% 0.94% 0.87% 0.82% 0.86% 0.87% 0.99%
Production ex mill (kt) 253.6 241.9 219.9 216.9 230.9 909.6 956.1
Production
Payable copper (kt) 246.1 240.0 212.6 205.4 224.1 882.1 925.8
Copper cathode
(EW) (kt) 70.1 55.4 71.9 62.4 63.5 253.2 287.5
- Oxide leach (kt) 27.1 19.5 23.4 20.9 23.4 87.2 101.4
- Sulphide leach (kt) 43.0 35.8 48.5 41.5 40.1 165.9 186.1
Total copper (kt) 316.2 295.4 284.5 267.8 287.6 1,135.3 1,213.3
(troy
Payable gold concentrate oz) 68,345 63,578 73,726 73,998 74,704 286,006 229,102
Payable silver (troy
concentrate koz) 2,527 1,997 2,570 2,189 2,074 8,830 8,796
Sales
Payable copper (kt) 260.3 216.5 229.2 212.0 223.4 881.1 920.4
Copper cathode
(EW) (kt) 80.9 53.2 72.3 56.6 67.5 249.6 288.3
(troy
Payable gold concentrate oz) 68,345 63,578 73,726 73,999 74,704 286,007 229,102
Payable silver (troy
concentrate koz) 2,527 1,997 2,570 2,189 2,074 8,830 8,796
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 17,918 18,488 19,875 15,561 13,534 67,458 77,256
Ore milled (kt) 4,833 4,802 5,069 4,277 4,740 18,888 18,300
Average copper grade (%) 0.58% 0.53% 0.62% 0.63% 0.64% 0.60% 0.59%
Production
Copper cathode (EW) (kt) 19.0 14.2 19.4 18.2 23.4 75.2 63.3
Sales
Copper cathode (EW) (kt) 20.9 13.8 19.0 15.5 26.8 75.1 64.6
Spence
Material mined (kt) 23,103 23,007 21,661 18,632 19,213 82,513 89,976
Ore milled (kt) 4,009 5,642 5,428 4,376 5,224 20,670 19,447
Average copper grade (%) 1.11% 1.21% 1.10% 1.03% 1.02% 1.09% 1.13%
Production
Copper cathode (EW) (kt) 51.6 29.2 42.4 49.0 50.7 171.3 200.5
Sales
Copper cathode (EW) (kt) 57.1 29.7 39.1 46.1 55.0 169.9 202.1
15
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Copper (continued)
Metals production is payable metal unless otherwise
stated.
Antamina, Peru
Material mined (100%) (kt) 59,002 62,470 62,850 57,900 58,994 242,214 235,428
Sulphide ore milled
(100%) (kt) 12,973 13,197 12,912 11,466 12,864 50,439 51,059
Average head grades
- Copper (%) 0.91% 0.96% 1.02% 1.04% 1.02% 1.01% 0.94%
- Zinc (%) 1.19% 1.10% 0.85% 0.87% 0.86% 0.92% 1.03%
Production
Payable copper (kt) 34.6 37.0 38.3 34.5 37.4 147.2 139.5
Payable zinc (t) 35,983 30,558 24,237 20,848 22,469 98,112 119,800
(troy
Payable silver koz) 1,321 1,309 1,178 1,062 1,209 4,758 5,437
Payable lead (t) 546 563 600 456 770 2,389 3,434
Payable molybdenum (t) 261 464 417 82 178 1,141 1,662
Sales
Payable copper (kt) 36.6 33.6 40.7 33.3 36.0 143.6 137.6
Payable zinc (t) 33,088 31,822 26,072 20,595 21,750 100,239 115,108
(troy
Payable silver koz) 1,311 1,193 1,236 1,027 937 4,393 5,308
Payable lead (t) 595 612 649 749 296 2,306 4,050
Payable molybdenum (t) 388 208 535 256 127 1,126 1,749
Olympic Dam, Australia
Material mined (1) (kt) 2,201 2,044 2,434 2,191 2,425 9,094 7,499
Ore milled (kt) 2,171 1,242 2,157 2,371 2,195 7,965 7,215
Average copper grade (%) 2.12% 2.05% 2.10% 2.22% 2.30% 2.18% 2.19%
Average uranium grade (kg/t) 0.69 0.62 0.62 0.65 0.65 0.64 0.64
Production
Copper cathode (ER
and EW) (kt) 42.0 33.3 31.6 50.2 45.2 160.3 136.7
Payable uranium (t) 1,123 555 929 1,106 975 3,565 3,364
(troy
Refined gold oz) 33,497 23,471 17,856 28,609 37,032 106,968 91,556
(troy
Refined silver koz) 278 213 212 230 268 923 792
Sales
Copper cathode (ER
and EW) (kt) 46.0 33.9 26.6 47.4 50.5 158.4 138.7
Payable uranium (t) 1,230 765 828 550 1,427 3,570 2,757
(troy
Refined gold oz) 35,714 21,145 17,812 27,574 36,133 102,664 96,863
(troy
Refined silver koz) 307 216 177 241 257 891 846
(1) Material mined refers to run of mine ore mined and
hoisted.
16
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Iron Ore
Iron ore production and sales
are reported on a wet tonnes
basis.
Pilbara, Australia
Production
Newman (kt) 18,500 16,378 17,578 15,608 17,058 66,622 67,071
Area C Joint Venture (kt) 12,041 11,696 10,280 11,627 13,837 47,440 51,517
Yandi Joint Venture (kt) 17,339 16,870 15,627 15,214 17,486 65,197 64,048
Jimblebar (1) (kt) 15,092 16,353 14,326 13,658 14,209 58,546 30,627
Wheelarra (kt) 614 114 30 10 5 159 25,158
Total production (kt) 63,586 61,411 57,841 56,117 62,595 237,964 238,421
Total production
(100%) (kt) 72,145 69,342 65,515 63,609 71,133 269,599 275,091
Sales
Lump (kt) 15,173 15,014 14,020 13,603 15,296 57,933 58,207
Fines (kt) 47,730 46,527 44,059 41,981 47,570 180,137 178,564
Total (kt) 62,903 61,541 58,079 55,584 62,866 238,070 236,771
Total sales (100%) (kt) 71,385 69,421 65,758 62,853 72,478 270,510 273,239
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil (1)
Production (kt) - - - - - - -
Sales (kt) - - 10 - - 10 39
(1) Mining and processing operations remain suspended following
the failure of the Fundão tailings dam and Santarém water dam on 5
November 2015.
17
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Coal
Coal production is reported on the
basis of saleable product.
Queensland Coal
Production (1)
BMA
Blackwater (kt) 1,849 1,704 1,680 1,484 1,735 6,603 6,688
Goonyella (kt) 2,639 1,989 1,813 2,141 2,620 8,563 7,961
Peak Downs (kt) 1,658 1,131 1,685 1,468 1,649 5,933 6,350
Saraji (kt) 1,201 1,111 1,288 1,250 1,243 4,892 5,053
Daunia (kt) 629 620 419 470 669 2,178 2,556
Caval Ridge (kt) 1,244 1,189 809 795 1,174 3,967 4,285
Total BMA (kt) 9,220 7,744 7,694 7,608 9,090 32,136 32,893
Total BMA (100%) (kt) 18,440 15,488 15,388 15,216 18,180 64,272 65,786
BHP Mitsui Coal (2)
South Walker Creek (kt) 1,615 1,505 1,636 1,429 1,624 6,194 6,029
Poitrel (kt) 1,174 1,109 942 840 1,180 4,071 3,718
Total BHP Mitsui
Coal (kt) 2,789 2,614 2,578 2,269 2,804 10,265 9,747
Total Queensland
Coal (kt) 12,009 10,358 10,272 9,877 11,894 42,401 42,640
Total Queensland
Coal (100%) (kt) 21,229 18,102 17,966 17,485 20,984 74,537 75,533
Sales
Coking coal (kt) 8,489 7,356 7,514 7,221 7,932 30,023 29,941
Weak coking coal (kt) 2,866 2,813 3,058 3,282 2,942 12,095 11,430
Thermal coal (kt) 85 141 157 379 350 1,027 528
Total (kt) 11,440 10,310 10,729 10,882 11,224 43,145 41,899
Total (100%) (kt) 20,162 18,102 18,818 19,176 19,789 75,885 74,083
(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) 6,261 3,982 4,311 4,552 5,412 18,257 18,541
Sales
Export thermal coal (kt) 5,795 3,549 4,809 3,529 5,181 17,068 16,646
Inland thermal coal (kt) 160 332 393 302 975 2,002 1,376
Total (kt) 5,955 3,881 5,202 3,831 6,156 19,070 18,022
Cerrejón, Colombia
Production (kt) 2,762 2,658 2,356 2,199 2,017 9,230 10,617
Sales thermal coal
- export (kt) 2,763 2,589 2,297 2,200 2,245 9,331 10,380
18
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Other
Nickel production is reported
on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 55.6 50.2 44.9 52.5 52.8 200.4 204.8
Average nickel grade (%) 18.8 18.9 19.8 19.2 19.5 77.4 80.9
Leinster
Nickel concentrate (kt) 78.4 78.8 65.3 51.8 48.3 244.2 299.4
Average nickel grade (%) 9.8 8.4 8.4 9.3 10.8 36.9 37.2
Saleable production
Refined nickel (1)
(2) (kt) 18.5 19.8 16.3 17.6 19.9 73.6 71.4
Intermediates and nickel
by-products (1) (3) (kt) 7.1 1.6 1.8 1.6 8.8 13.8 21.6
Total nickel (1) (kt) 25.6 21.4 18.1 19.2 28.7 87.4 93.0
Cobalt by-products (t) 277 249 154 194 302 899 1,060
Sales - -
Refined nickel (1)
(2) (kt) 17.5 19.3 17.3 17.9 19.9 74.4 71.0
Intermediates and nickel
by-products (1) (3) (kt) 6.3 2.2 2.1 0.1 8.4 12.8 20.7
Total nickel (1) (kt) 23.8 21.5 19.4 18.0 28.3 87.2 91.7
Cobalt by-products (t) 277 249 154 194 302 899 1,060
(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
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2018 2018 2018 2019 2019 2019 2018
Onshore US - Discontinued
operations (1)(2)
Eagle Ford (3)
Crude oil and condensate (Mboe) 3,826 3,256 1,035 - - 4,291 13,841
NGL (Mboe) 1,767 1,919 614 - - 2,533 7,278
Natural gas (bcf) 13.9 13.8 4.3 - - 18.1 54.7
Total petroleum
products (MMboe) 7.9 7.5 2.4 - - 9.8 30.2
Permian (3)
Crude oil and condensate (Mboe) 1,903 1,478 631 - - 2,109 5,622
NGL (Mboe) 770 687 284 - - 971 2,282
Natural gas (bcf) 6.4 4.8 1.9 - - 6.7 18.6
Total petroleum
products (MMboe) 3.7 3.0 1.2 - - 4.2 11.0
Haynesville (3)
Crude oil and condensate (Mboe) - 11 - - - 11 1
NGL (Mboe) - - - - - - -
Natural gas (bcf) 33.1 39.0 13.9 - - 52.9 105.3
Total petroleum
products (MMboe) 5.5 6.5 2.3 - - 8.8 17.6
Fayetteville (4)
Natural gas (bcf) 19.1 18.6 - - - 18.6 79.9
Total petroleum
products (MMboe) 3.2 3.1 - - - 3.1 13.3
Onshore US
Crude oil and condensate (Mboe) 5,729 4,745 1,666 - - 6,411 19,464
NGL (Mboe) 2,537 2,606 898 - - 3,504 9,560
Natural gas (bcf) 72.5 76.2 20.1 - - 96.3 258.5
Total (Mboe) 20,349 20,051 5,914 - - 25,965 72,107
(1) Total boe conversions are based on 6 bcf of natural gas
equals 1 MMboe. Negative production figures represent finalisation
adjustments.
(2) Volumes are net of mineral holder royalties.
(3) BHP completed the sale of its interests in the Eagle Ford,
Haynesville and Permian assets on 31 October 2018.
(4) BHP completed the sale of its Fayetteville assets on 28 September 2018.
20
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDSFFEEMFUSEFW
(END) Dow Jones Newswires
July 17, 2019 02:00 ET (06:00 GMT)
Bhp (LSE:BHP)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Bhp (LSE:BHP)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
