TIDMBHP
RNS Number : 7456F
BHP Group PLC
20 July 2021
Release Time IMMEDIATE
Date 20 July 2021
Release Number 09/21
BHP OPERATIONAL REVIEW
FOR THE YEARED 30 JUNE 2021
Note: All guidance is subject to further potential impacts from
COVID-19 during the 2022 financial year.
-- Record production was achieved at Western Australia Iron Ore
(WAIO) and Goonyella. Olympic Dam achieved both the highest annual
copper production since the acquisition by BHP in 2005 and the
highest gold production ever for the operation. Escondida
maintained average concentrator throughput at record levels despite
a
challenging operating environment in Chile as a result of impacts from COVID-19.
-- Petroleum production for the 2021 financial year was slightly
above guidance. Full year production guidance for copper, iron ore,
metallurgical coal and nickel were delivered, as was revised
guidance for energy coal.
-- Full year unit cost guidance(1) expected to be achieved for
WAIO, Escondida and Queensland Coal (based on exchange rates of
AUD/USD 0.70 and USD/CLP 769). Petroleum unit costs are expected to
be slightly better than guidance. New South Wales Energy Coal
(NSWEC) unit costs are expected to be marginally above
guidance.
-- During the year, we successfully achieved first production at
four major development projects, all of which were delivered on or
ahead of schedule and on budget. The South Flank iron ore project
in Western Australia and the Ruby oil and gas project in Trinidad
and Tobago both achieved first production in May 2021. The Atlantis
Phase 3 petroleum project and the Spence Growth Option copper
project achieved first production in the first half of the 2021
financial year.
-- In exploration, we have continued to add to our early stage
options in future facing commodities throughout the year, with the
signing of an agreement for a nickel exploration alliance in Canada
and of a farm-in agreement for the Elliott copper project in
Australia. At Oak Dam in South Australia, next stage resource
definition drilling to inform future design commenced in May
2021.
-- The financial results for the second half of the 2021
financial year are expected to reflect certain items as summarised
in the table on page 3.
FY21 Jun Q21
Production (vs FY20) (vs Mar Q21) Jun Q21 vs Mar Q21 commentary
Petroleum (MMboe) 102.8 27.0 Increased volumes due to higher seasonal demand at Bass Strait and improved uptime at Atlantis.
(6%) 6%
Copper (kt) 1,635.7 403.0 Higher volumes as a result of the ongoing ramp up of concentrate production at Spence following
first production at the Spence Growth Option in December 2020.
(5%) 3%
Iron ore (Mt) 253.5 65.2 Increased volumes at WAIO reflects record quarterly production at Mining Area C, which included
first ore from South Flank in May 2021, and continued strong operational performance enabled
by improved supply chain reliability.
2% 9%
Metallurgical coal (Mt) 40.6 11.8 Higher volumes at Queensland Coal reflects a strong underlying operational performance, includi
ng
record quarterly production at Goonyella and BMA, following significant wet weather impacts
in the prior period.
(1%) 23%
Energy coal (Mt) 19.3 6.3 Higher volumes at NSWEC due to record wash plant performance and lower strip ratios, and signif
icant
weather impacts in the prior period.
(17%) 31%
Nickel (kt) 89.0 22.4 Higher volumes due to planned maintenance undertaken in the prior period.
11% 10%
Group copper equivalent production for the 2021 financial year
was broadly in line with the prior year. Group copper equivalent
production for the 2022 financial year is expected to be in line
with the 2021 financial year despite continued impacts from a
reduction in operational workforces in our Chilean copper assets in
response to COVID-19 and petroleum natural field decline.
1
Summary
BHP Chief Executive Officer, Mike Henry:
"BHP safely delivered another year of excellent operational
performance and its second consecutive financial year with zero
fatalities at our operated assets. We set several production
records and brought on four major projects safely, on schedule and
on budget.
This strong performance is a reflection of the capability and
commitment of our employees and contractors, the strength of our
systems and the support of our business partners.
We achieved production records at our Western Australia Iron Ore
operations and the Goonyella Riverside metallurgical coal mine in
Queensland. We maintained all-time high concentrator throughput at
our Escondida copper mine in Chile. Olympic Dam in South Australia
had its highest annual copper production since BHP acquired the
asset in 2005, and its best-ever gold production.
South Flank, the largest and one of the most
technically-advanced iron ore mines in Australia, began production
in May and will boost the overall quality of BHP's iron ore product
suite. In the same month, the Ruby project in Trinidad and Tobago
started production. Atlantis Phase 3 in the Gulf of Mexico and the
Spence expansion in Chile began production in the first half of the
year.
BHP is in great shape. Our operations are performing well, we
continue our track record of disciplined capital allocation, and
our portfolio is positively leveraged to the megatrends of
decarbonisation, electrification and population growth."
Operational performance
Production and guidance are summarised below.
Note: All guidance is subject to further potential impacts from
COVID-19 during the 2022 financial year.
FY21 Jun Q21 Jun Q21
Jun vs vs vs FY22 FY22e
Production FY21 Q21 FY20 Jun Q20 Mar Q21 guidance vs FY21
Petroleum (MMboe) 102.8 27.0 (6%) 2% 6% 99 - 106 (4%) - 3%
Copper (kt) 1,635.7 403.0 (5%) (3%) 3% 1,590 - 1,760 (3%) - 8%
Escondida (kt) 1,068.2 246.7 (10%) (16%) (1%) 1,000 - 1,080 (6%) - 1%
Pampa Norte (kt) 218.2 69.4 (10%) 27% 33% 330 - 370 51% - 70%
Olympic Dam (kt) 205.3 50.8 20% 7% (8%) 140 - 170 (32%) - (17%)
Antamina (kt) 144.0 36.1 16% 103% 4% 120 - 140 (17%) - (3%)
Iron ore (Mt) 253.5 65.2 2% (2%) 9% 249 - 259 (2%) - 2%
WAIO (Mt) 251.6 64.2 1% (4%) 9% 246 - 255 (2%) - 1%
WAIO (100% basis) (Mt) 284.1 72.8 1% (4%) 9% 278 - 288 (2%) - 1%
Samarco (Mt) 1.9 1.0 100% 100% 17% 3 - 4 55% - 106%
Metallurgical coal (Mt) 40.6 11.8 (1%) 2% 23% 39 - 44 (4%) - 8%
Queensland Coal (100% basis) (Mt) 72.5 21.1 0% 2% 22% 70 - 78 (3%) - 8%
Energy coal (Mt)(i) 19.3 6.3 (17%) 11% 31% 13 - 15 (33%) - (22%)
NSWEC (Mt) 14.3 4.5 (11%) (8%) 51% 13 - 15 (9%) - 5%
Cerrejón (Mt)(i) 5.0 1.8 (30%) 133% (1%) n/a n/a
Nickel (kt) 89.0 22.4 11% (6%) 10% 85 - 95 (4%) - 7%
(i) We will no longer provide production guidance for Cerrejón
reflecting the announced divestment of our interest in June 2021
and volumes will be reported separately from 1 July 2021 until
transaction completion.
2
Summary of disclosures
BHP expects its financial results for the second half of the
2021 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 17 August 2021. Accordingly the
information is subject to update.
H2 FY21
impact
Description US$M(i) Classification(ii)
Unit costs for WAIO, Escondida and Queensland Coal are Operating costs
expected to be in line with full year
guidance (at guidance exchange rates), with Escondida
tracking towards the low end of guidance
and WAIO tracking towards the upper end of guidance
Note: stronger Australian dollar and Chilean peso than
guidance rates in the period(iii)
Petroleum unit costs are expected to be slightly better Operating costs
than full year guidance driven by
higher than expected volumes
NSWEC unit costs are expected to be marginally above Operating costs
full year guidance largely as a result
of lower volumes due to significant weather impacts and
an increased proportion of washed
coal in response to widening price quality
differentials, consistent with our strategy to
focus on higher quality products
Increase in closure and rehabilitation provision for 375 - 425 Operating costs
closed mines (reported in group and unallocated,
approximately 75 per cent of the increase) and closed
sites at Petroleum and WAIO
Business development and evaluation expense for 90 Development and evaluation expense
Petroleum
Exploration expense (including petroleum and minerals 430 Exploration expense
exploration programs)
Higher depreciation and amortisation mainly at Yandi 450 - 500 Depreciation, amortisation and impairments
(due to a decrease in life of mine) and
Bass Strait (due to a decrease in estimated reserves)
The Group's adjusted effective tax rate for FY21 is Taxation expense
expected to be within the guidance range
of 32 to 37 per cent
Dividends paid to non-controlling interests 1,400 Financing cash outflow
Impairment charge related to the announced divestment 85 Exceptional item charge
of Cerrejón (after tax)
Costs directly attributable to COVID-19 (after tax)(iv) 150 - 200 Exceptional item charge
Financial impact on BHP Brasil of the Samarco dam Refer footnote(v) Exceptional item charge
failure
(i) Numbers are not tax effected, unless otherwise noted.
(ii) There will be a corresponding balance sheet, cash flow
and/or income statement impact as relevant.
(iii) Average exchange rates for FY21 of AUD/USD 0.75 (guidance
rate AUD/USD 0.70) and USD/CLP 746 (guidance rate USD/CLP 769).
(iv) Relates to additional costs incurred at our operated assets
for the increased provision of health and hygiene services and the
impacts of maintaining social distancing requirements. For example,
additional accommodation and cleaning costs at the Spence Growth
Option project and additional port costs at WAIO due to quarantine
restrictions.
(v) Financial impact is the subject of ongoing work and is not yet finalised.
3
Major development projects
During the year, we successfully achieved first production at
four major development projects, all of which were delivered on or
ahead of schedule and on budget.
The Atlantis Phase 3 petroleum project and the Spence Growth
Option copper project achieved first production in the first half
of the 2021 financial year.
During the June 2021 quarter, the South Flank iron ore
sustaining project in Western Australia and the Ruby oil and gas
project in Trinidad and Tobago achieved first production. Given
this, South Flank and Ruby project progress will not be reported in
future Operational Reviews.
At the end of the 2021 financial year, BHP had two major
projects under development in petroleum (Mad Dog Phase 2) and
potash (Jansen mine shafts), with both of these tracking to
plan.
The Jansen Stage 1 project in Canada remains on track for a go
or no-go decision in the next two months.
Corporate update
On 28 June 2021, BHP announced that it had signed a Sale and
Purchase Agreement with Glencore to divest its 33.3 per cent
interest in Cerrejón, a non-operated energy coal joint venture in
Colombia, for US$294 million cash consideration. Subject to the
satisfaction of customary competition and regulatory requirements,
we expect completion to occur in the second half of the 2022
financial year. The transaction has an effective economic date of
31 December 2020. The purchase price is subject to adjustments at
transaction completion, including for any dividends paid by
Cerrejón to BHP during the period from signing to completion. A
further impairment charge related to Cerrejón of approximately
US$85 million post tax will be recognised as an exceptional item in
the financial results for the second half of the 2021 financial
year. For the 2021 financial year, BHP will continue to report
Cerrejón, including the impairment charge, in its Income Statement
within profit/(loss) from equity accounted investments. It will
continue to be reported within our Coal segment and asset tables.
On the Balance Sheet, it will be reclassified as an asset held for
sale. Beyond the 2021 financial year, BHP expects the sale of
Cerrejón to complete with no net impact on BHP's Income Statement
and, as a result, we would no longer report it in our Coal segment
or asset tables.
The broader carrying value assessment of the Group's assets is
ongoing with a particular focus on Jansen and NSWEC, and will be
finalised in conjunction with the release of the financial results
on 17 August 2021.
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 (JR Court). On 12 April 2021, the JR
Court accepted the case and appointed four judicial administrators.
On 5 July 2021, the judicial administrators filed a revised list of
creditors with the JR Court, which kept shareholders' claims as
listed by Samarco, with the Renova Foundation not listed as a
creditor. This excludes the Renova Foundation's funding and
programs from the JR. The revised list of creditors is not final as
it is still open to discussion before the JR court. 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.
4
In addition, negotiations are ongoing with State and Federal
Prosecutors and certain other Brazilian public authorities on the
review of the Framework Agreement. The Framework Agreement was
entered into between Samarco, Vale and BHP Brasil and the relevant
Brazilian authorities in March 2016 and established Foundation
Renova to develop and implement environmental and socio-economic
programs to remediate and provide compensation for damage caused by
the Samarco dam failure.
We will provide an update to the ongoing potential financial
impacts on BHP Brasil of the Samarco dam failure with the release
of the financial results on 17 August 2021. Any financial impacts
will continue to be treated as an exceptional item.
We have continued to take action to support the reduction of
value chain greenhouse gas emissions. On 21 April 2021, we
announced the signing of a Memorandum of Cooperation to become one
of the founding members of the Maritime Decarbonisation Centre to
be set up in Singapore. The Maritime Decarbonisation Centre will be
a focal point for the global maritime industry's efforts in both
decarbonisation and innovation, bringing together experts and the
industry, including start-ups to develop technologies and co-create
innovative solutions. BHP is the only resources company that is
part of the alliance.
Average realised prices
The average realised prices achieved for our major commodities
are summarised below.
Jun H21 Jun H21
FY21 vs vs
Average realised vs Jun Dec
prices(i) Jun H21 Dec H20 FY21 FY20 FY20 H20 H20
Oil (crude and condensate)
(US$/bbl) 63.05 41.40 52.56 49.53 6% 68% 52%
Natural gas (US$/Mscf)(ii) 4.86 3.83 4.34 4.04 8% 29% 27%
LNG (US$/Mscf) 7.04 4.45 5.63 7.26 (22%) 2% 58%
Copper (US$/lb) 4.34 3.32 3.81 2.50 52% 82% 31%
Iron ore (US$/wmt,
FOB) 158.17 103.78 130.56 77.36 69% 106% 52%
Metallurgical coal
(US$/t) 114.81 97.61 106.64 130.97 (19%) (5%) 18%
Hard coking coal
(US$/t)(iii) 118.54 106.30 112.72 143.65 (22%) (11%) 12%
Weak coking coal
(US$/t)(iii) 104.40 73.17 89.62 92.59 (3%) 24% 43%
Thermal coal (US$/t)(iv) 70.83 44.35 58.42 57.10 2% 27% 60%
Nickel metal (US$/t) 17,537 15,140 16,250 13,860 17% 41% 16%
(i) Based on provisional, unaudited estimates. Prices exclude
sales from equity accounted investments, third party product and
internal sales, and represent the weighted average of various sales
terms (for example: FOB, CIF and CFR), unless otherwise noted.
Includes the impact of provisional pricing and finalisation
adjustments.
(ii) Includes internal sales.
(iii) Hard coking coal (HCC) refers generally to those
metallurgical coals with a Coke Strength after Reaction (CSR) of 35
and above, which includes coals across the spectrum from Premium
Coking to Semi Hard Coking coals, while weak coking coal (WCC)
refers generally to those metallurgical coals with a CSR below
35.
(iv) Export sales only; excludes Cerrejón. Includes thermal coal
sales from metallurgical coal mines.
The large majority of oil sales were linked to West Texas
intermediate (WTI) or Brent based indices, with differentials
applied for quality, locational and transportation costs. The large
majority of iron ore shipments were linked to index pricing for the
month of shipment, with price differentials predominantly a
reflection of market fundamentals and product quality. Iron ore
sales were based on an average moisture rate of 7.3 per cent. The
large majority of metallurgical coal and energy coal exports were
linked to index pricing for the month of shipment or sold on the
spot market at fixed or index-linked prices, with price
differentials reflecting product quality. The majority of copper
cathodes sales were linked to index price for quotation periods one
month after month of shipment, and three to four months after month
of shipment for copper concentrates sales with price differentials
applied for location and treatment costs.
At 30 June 2021, the Group had 323 kt of outstanding copper
sales that were revalued at a weighted average price of US$4.25 per
pound. The final price of these sales will be determined in the
2022 financial year. In addition, 304 kt of copper sales from the
2020 financial year were subject to a finalisation adjustment in
the current period. The provisional pricing and finalisation
adjustments will increase Underlying EBITDA(2) by US$47 million in
the 2021 financial year and are included in the average realised
copper price in the above table.
5
Petroleum
Production
FY21 Jun Q21 Jun Q21
vs vs vs
FY21 Jun Q21 FY20 Jun Q20 Mar Q21
Crude oil, condensate and natural gas liquids (MMboe) 46.0 12.2 (6%) 7% 5%
Natural gas (bcf) 340.6 88.6 (5%) (1%) 7%
Total petroleum production (MMboe) 102.8 27.0 (6%) 2% 6%
Petroleum - Total petroleum production decreased by six per cent
to 103 MMboe, with volumes slightly above the top end of our
guidance range. Production is expected to be between 99 and 106
MMboe in the 2022 financial year, reflecting a full year of the
additional 28 per cent working interest acquired in Shenzi,
increased production at Shenzi from infill wells and increased
volumes from Ruby following first production in May 2021, offset by
natural field decline across the portfolio.
Crude oil, condensate and natural gas liquids production
decreased by six per cent to 46 MMboe due to natural field decline
across the portfolio, a highly active hurricane season in the Gulf
of Mexico in the first half of the year and downtime at Atlantis,
with tie-in activity in the first half of the year and unplanned
downtime in the March 2021 quarter. These impacts were partially
offset by the earlier than scheduled achievement of first
production from the Atlantis Phase 3 project in July 2020 and the
additional working interest acquired in Shenzi, completed on 6
November 2020.
Natural gas production decreased by five per cent to 341 bcf,
reflecting planned shutdowns at Angostura related to the Ruby
tie-in, lower gas demand at Bass Strait and natural field decline
across the portfolio. The decline was partially offset by improved
reliability at Bass Strait and higher domestic gas sales at Macedon
.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
Ruby 283 H1 CY21 Five production wells First production achieved
tied back into existing in May 2021, ahead
operated processing of schedule and on
facilities, with capacity budget. The drilling
to produce up to 16,000 and completion activities
gross barrels of oil of the remaining wells
per day and 80 million will continue to be
gross standard cubic progressed as part
feet of natural gas of the planned asset
per day. activities.
(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 93% complete.
Mexico) gross barrels of crude
23.9% (non-operator) oil per day.
The Bass Strait West Barracouta project achieved first
production in April 2021, on schedule and budget.
In May 2021, we completed a transaction with EnVen Energy
Ventures, LLC to transfer our 35 per cent ownership interest in the
operated Neptune field in the Gulf of Mexico.
In the June 2021 quarter, drilling commenced on the second
Shenzi infill well. Drilling of the first Shenzi infill well took
place in March 2021, with production expected from both infill
wells in the 2022 financial year. 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. First production from Mad Dog
Phase 2 is expected in the middle of the 2022 calendar year.
6
Petroleum exploration
No exploration and appraisal wells were drilled during the June
2021 quarter.
In Trinidad and Tobago, the Transocean drilling rig (Development
Driller III) arrived on location in our Northern licences in June
2021 and is preparing to commence drilling of two Calypso gas
appraisal wells in July 2021.
Petroleum exploration expenditure for the 2021 financial year
was US$322 million, of which US$296 million was expensed. Our
exploration spend for the full year is lower than guidance due to
changes in appraisal well phasing from the June 2021 quarter to the
September 2021 quarter.
Copper
Production
FY21 Jun Q21 Jun Q21
vs vs vs
FY21 Jun Q21 FY20 Jun Q20 Mar Q21
Copper (kt) 1,635.7 403.0 (5%) (3%) 3%
Zinc (t) 145,089 35,483 64% 158% 7%
Uranium (t) 3,267 614 (11%) (40%) (26%)
Copper - Total copper production decreased by five per cent to
1,636 kt. Production for the 2022 financial year is expected to be
between 1, 590 and 1, 760 kt .
For the 2021 financial year, our Chilean assets operated with a
substantial reduction in their operational workforces as a result
of the preventative measures we implemented to mitigate the impact
of COVID-19. In the June 2021 quarter, escalating COVID-19
infections in Chile led to increased pressures on Chile's health
system, which resulted in strict quarantine measures and border
restrictions. We expect the operating environment for our Chilean
assets to remain challenging, with reductions in our on-site
workforce forecast to continue in the 2022 financial year.
Escondida copper production decreased by 10 per cent to 1,068 kt
as continued strong concentrator throughput of 371 ktpd, at record
levels, was more than offset by the impact of expected lower
concentrator feed grade and lower cathode production. This was
slightly above the upper end of our increased guidance range as a
result of improved maintenance practices and strong mine equipment
performance. Concentrator throughput continued to be prioritised
over cathode production in the June 2021 quarter as part of an
effort to offset the impact of the reduced operational workforce.
Production of between 1,000 and 1,080 kt is expected for the 2022
financial year and reflects a continuing need to catch up on mine
development due to reduced material movement in the 2021 financial
year, as well as uncertainty around COVID-19 impacts. Decline in
the copper grade of concentrator feed in the 2022 financial year is
expected to be approximately two per cent. 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, 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
commenced in June 2021.
7
Pampa Norte copper production decreased by 10 per cent to 218 kt
largely due to a decline in stacking feed grade at Spence of 11 per
cent , planned maintenance at Spence and the impact of a reduced
operational workforce as a result of COVID-19 restrictions. This
was slightly lower than guidance due to continued COVID-19 related
impacts on the ramp-up of the Spence Growth Option (SGO).
Production for the 2022 financial year is expected to increase by
more than 50 per cent to between 330 and 370 kt, reflecting the
continued ramp-up of SGO, partially offset by a forecast decline in
stacking feed grade at Pampa Norte of approximately nine per cent.
The ramp-up to full production capacity at SGO is still expected to
take approximately 12 months from first production in December
2020, following which Spence is forecast to average 300 ktpa of
production (including cathodes) over the first four years of
operation.
On 10 June 2021, Spence successfully completed negotiations for
a new collective agreement that applies to the Union of Operators
and Maintainers, effective for 36 months from 1 June 2021.
On 7 June 2021, we completed negotiations for an extension of
the current agreement with the Specialists and Supervisors Union of
BHP Chile (comprising mainly employees from the Centre of
Integrated Operations in Santiago that services Escondida and
Spence), effective for 18 months from 1 June 2021.
Olympic Dam copper production increased by 20 per cent to 205
kt, the highest annual production achieved since our acquisition in
2005, reflecting improved smelter stability and strong underground
mine performance. Olympic Dam also achieved record gold production
of 146 koz. Commissioning of the refinery crane is now complete .
Production for the 2022 financial year is expected to decrease to
between 140 and 170 kt as a result of the planned major smelter
maintenance campaign and subsequent ramp up planned between August
2021 and February 2022.
Antamina copper production increased 16 per cent to 144 kt and
zinc production increased 64 per cent to a record 145 kt,
reflecting both higher copper and zinc head grades. Copper
production of between 120 and 140 kt, and zinc production of
between 115 and 130 kt is expected for the 2022 financial year.
Iron Ore
Production
FY21 Jun Q21 Jun Q21
vs vs vs
FY21 Jun Q21 FY20 Jun Q20 Mar Q21
Iron ore production (kt) 253,534 65,245 2% (2%) 9%
Iron ore - Total iron ore production increased by two per cent
to 254 Mt. Production of between 249 and 259 Mt is expected in the
2022 financial year.
WAIO production increased by one per cent to a record 252 Mt
(284 Mt on a 100 per cent basis), reflecting record production at
Jimblebar and Mining Area C, which included first ore from South
Flank in May 2021. This was achieved despite significant weather
impacts, temporary rail labour shortages due to COVID-19 related
border restrictions and the planned Mining Area C and South Flank
major tie-in activity . S trong operational performance across the
supply chain reflected continued improvements in car dumper
performance and reliability, and train cycle times.
Yandi resource has commenced its end-of-life ramp-down as South
Flank ramps up, and is expected to continue to provide supply chain
flexibility with a lower level of production to continue for a few
years.
Production of between 246 and 255 Mt (278 and 288 Mt on a 100
per cent basis) is expected for the 2022 financial year as W AIO
continues to focus on incremental volume growth through
productivity improvements. We continue with our program to further
improve port reliability and this includes a major maintenance
campaign on car dumper one planned for the September 2021
quarter.
8
Samarco production was 1.9 Mt following the recommencement of
iron ore pellet production at one concentrator in December 2020.
Production of between 3 and 4 Mt (BHP share) is expected for the
2022 financial year. Production capacity of approximately 8 Mtpa
(100 per cent basis) is expected to be reached in the second half
of the 2022 financial year.
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 First production achieved in May 2021, on schedule and on budget.
mine.
(Australia)
85%
South Flank will ramp up to full production capacity of 80 Mtpa
( 100 per cent basis) over three years. South Flank's high quality
ore will increase WAIO's average iron ore grade from 61 to 62 per
cent, and the overall proportion of lump from 25 to between 30 and
33 per cent, once fully ramped up.
Coal
Production
FY21 Jun Q21 Jun Q21
vs vs vs
FY21 Jun Q21 FY20 Jun Q20 Mar Q21
Metallurgical coal (kt) 40,625 11,823 (1%) 2% 23%
Energy coal (kt) 19,290 6,276 (17%) 11% 31%
Metallurgical coal - Metallurgical coal production decreased by
one per cent to 41 Mt (73 Mt on a 100 per cent basis), in line with
original guidance. Production is expected to be between 39 and 44
Mt (70 and 78 Mt on a 100 per cent basis) in the 2022 financial
year as we expect restrictions on coal imports into China to remain
for a number of years. Production is expected to be weighted to the
second half of the year due to planned wash plant maintenance in
the first half of the year.
At Queensland Coal, strong underlying operational performance,
including record production at Goonyella facilitated by record
tonnes from Broadmeadow mine, was offset by significant wet weather
impacts across most operations earlier in the year, as well as
planned wash plant maintenance at Saraji and Caval Ridge in the
first half of the year. At South Walker Creek, despite record
stripping, production decreased as a result of higher strip ratios
due to ongoing impacts from geotechnical constraints and lower
yields.
Energy coal - Energy coal production decreased by 17 per cent to
19 Mt. Production is expected to decrease to between 13 and 15 Mt
in the 2022 financial year, reflecting the announced divestment of
our interest in Cerrejón in June 2021 and that Cerrejón volumes
will now be separately reported from 1 July 2021 until transaction
completion .
NSWEC production decreased by 11 per cent to 14 Mt despite
increased stripping. This decrease reflects significant weather
impacts and higher strip ratios, as well as lower volumes due to an
increased proportion of washed coal in response to widening price
quality differentials, consistent with our strategy to focus on
higher quality products, and reduced port capacity following damage
to a shiploader at the Newcastle port in November 2020. The
shiploader is expected to be back in operation during the September
2021 quarter. Production is expected to be between 13 and 15 Mt in
the 2022 financial year reflecting a continued focus on higher
quality products.
9
Cerrejón production decreased by 30 per cent to 5 Mt mainly 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. On 28 June 2021, BHP announced it had signed a Sale
and Purchase Agreement with Glencore to divest its 33.3 per cent
interest in Cerrejón. The transaction has an effective economic
date of 31 December 2020. Subject to the satisfaction of customary
competition and regulatory requirements, we expect completion to
occur in the second half of the 2022 financial year.
Other
Nickel production
FY21 Jun Q21 Jun Q21
vs vs vs
FY21 Jun Q21 FY20 Jun Q20 Mar Q21
Nickel (kt) 89.0 22.4 11% (6%) 10%
Nickel - Nickel West production increased by 11 per cent to 89
kt reflecting strong performance from the new mines and improved
operational stability following major quadrennial maintenance
shutdowns in the prior year. Production is expected to be between
85 and 95 kt in the 2022 financial year, with planned maintenance
in the September 2021 quarter. First production from the Nickel
Sulphate plant expected in the September 2021 quarter.
Potash - Final negotiations on the port solution are
progressing. The Jansen Stage 1 project in Canada remains on track
for a go or no-go decision in the next two months.
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 93% complete.
and to
continue the installation of essential surface infrastructure and utilities.
(Canada)
100%
Minerals exploration
Minerals exploration expenditure for the 2021 financial year was
US$192 million, of which US$134 million was expensed. Greenfield
minerals exploration is predominantly focused on advancing copper
targets in Chile, Ecuador, Mexico, Peru, Canada, Australia and the
south-west United States, and nickel targets are being advanced in
Canada and Australia.
We have continued to add to our early stage options in future
facing commodities throughout the year. We have a signed agreement
for a nickel exploration alliance with Midland Exploration in
Canada (August 2020) and we have exercised our option to sign a
farm-in agreement with Encounter Resources for the Elliott copper
project in Australia (May 2021).
Drilling for copper targets is underway in Chile, Ecuador, Peru
and the United States, while further drilling is anticipated for
copper and nickel in Australia during the 2021 calendar year. At
Oak Dam in South Australia, next stage resource definition drilling
to inform future design commenced in May 2021.
10
Variance analysis relates to the relative performance of BHP
and/or its operations during the 2021 financial year compared with
the 2020 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 2021
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, WAIO US$13-14/t,
Queensland Coal US$74-78/t and NSWEC US$55-59/t; based on exchange
rates of AUD/USD 0.70 and USD/CLP 769.
(2) Underlying EBITDA is used to help assess current operational
profitability excluding the impacts of sunk costs (i.e.
depreciation from initial investment). Underlying EBITDA is
earnings before net finance costs, depreciation, amortisation and
impairments, taxation expense, discontinued operations and
exceptional items. Underlying EBITDA includes BHP's share of
profit/(loss) from investments accounted for using the equity
method including net finance costs, depreciation, amortisation and
impairments and taxation expense/(benefit).
The following abbreviations may have been used throughout this
report: barrels (bbl); billion cubic feet (bcf); cost and freight
(CFR); cost, insurance and freight (CIF); dry metric tonne unit
(dmtu); free on board (FOB); grams per tonne (g/t); kilograms per
tonne (kg/t); kilometre (km); metre (m); million barrels of oil
equivalent (MMboe); million barrels of oil per day (MMbpd); million
cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes
per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil
equivalent (Mboe); thousand barrels of oil equivalent per day
(Mboe/d); thousand ounces (koz); thousand standard cubic feet
(Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa);
thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes
(wmt).
In this release, the terms 'BHP', the 'Group', 'BHP Group',
'we', 'us', 'our' and ourselves' are used to refer to BHP Group
Limited, BHP Group plc and, except where the context otherwise
requires, their respective subsidiaries as defined in note 29
'Subsidiaries' in section 5.1 of BHP's 30 June 2020 Annual Report
and Form 20-F. Those terms do not include non-operated assets.
Notwithstanding that this release may include production, financial
and other information from non-operated assets, non-operated assets
are not included in the BHP Group and, as a result, statements
regarding our operations, assets and values apply only to our
operated assets unless stated otherwise. Our non-operated assets
include Antamina, Cerrejón, Samarco, Atlantis, Mad Dog, Bass Strait
and North West Shelf. BHP Group cautions against undue reliance on
any forward-looking statement or guidance in this release,
particularly in light of the current economic climate and
significant volatility, uncertainty and disruption arising in
connection with COVID-19. These forward looking statements are
based on information available as at the date of this release and
are not guarantees or predictions of future performance and involve
known and unknown risks, uncertainties and other factors, many of
which are beyond our control and which may cause actual results to
differ materially from those expressed in the statements contained
in this release.
11
Further information on BHP can be found at: bhp.com
Authorised for lodgement by:
Stephanie Wilkinson
Group Company Secretary
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
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12
Production summary
Quarter ended Year to date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2020 2020 2020 2021 2021 2021 2020
Petroleum (1)
Petroleum
Production
Crude oil, condensate
and NGL (Mboe) 11,355 11,507 10,729 11,601 12,205 46,042 48,863
Natural gas (bcf) 89.8 90.9 78.5 82.6 88.6 340.6 359.6
Total (Mboe) 26,322 26,657 23,812 25,368 26,972 102,809 108,796
Copper (2)
Copper
Payable metal in
concentrate (kt)
Escondida (3) 57.5% 228.5 236.7 236.7 202.7 195.6 871.7 925.9
Pampa Norte (4) 100.0% - - 0.7 5.6 21.1 27.4 -
Antamina 33.8% 17.8 34.6 38.6 34.7 36.1 144.0 124.5
Total 246.3 271.3 276.0 243.0 252.8 1,043.1 1,050.4
Cathode (kt)
Escondida (3) 57.5% 65.5 47.9 50.9 46.6 51.1 196.5 259.4
Pampa Norte (4) 100% 54.5 42.5 53.6 46.4 48.3 190.8 242.7
Olympic Dam 100% 47.6 51.5 47.6 55.4 50.8 205.3 171.6
Total 167.6 141.9 152.1 148.4 150.2 592.6 673.7
Total copper (kt) 413.9 413.2 428.1 391.4 403.0 1,635.7 1,724.1
Lead
Payable metal in
concentrate (t)
Antamina 33.8% 262 690 993 468 381 2,532 1,671
Total 262 690 993 468 381 2,532 1,671
Zinc
Payable metal in
concentrate (t)
Antamina 33.8% 13,736 34,398 41,909 33,299 35,483 145,089 88,462
Total 13,736 34,398 41,909 33,299 35,483 145,089 88,462
13
Production summary
Quarter ended Year to date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2020 2020 2020 2021 2021 2021 2020
Gold
Payable metal in concentrate
(troy oz)
Escondida (3) 57.5% 43,422 42,332 47,789 37,954 38,893 166,968 177,422
Olympic Dam (refined
gold) 100% 34,150 36,608 23,837 37,075 48,478 145,998 145,972
Total 77,572 78,940 71,626 75,029 87,371 312,966 323,394
Silver
Payable metal in concentrate
(troy koz)
Escondida (3) 57.5% 1,599 1,580 1,627 1,318 1,234 5,759 6,413
Antamina 33.8% 626 1,326 1,767 1,463 1,409 5,965 4,116
Olympic Dam (refined
silver) 100% 295 157 193 275 185 810 984
Total 2,520 3,063 3,587 3,056 2,828 12,534 11,513
Uranium
Payable metal in
concentrate (t)
Olympic Dam 100% 1,016 874 945 834 614 3,267 3,678
Total 1,016 874 945 834 614 3,267 3,678
Molybdenum
Payable metal in
concentrate (t)
Antamina 33.8% 243 284 192 276 111 863 1,666
Total 243 284 192 276 111 863 1,666
Iron Ore
Iron Ore
Production (kt)
(5)
Newman 85% 17,110 16,410 17,637 14,614 14,560 63,221 65,641
Area C Joint Venture 85% 13,973 11,889 11,567 13,010 15,920 52,386 51,499
Yandi Joint Venture 85% 19,087 17,666 16,413 16,112 18,405 68,596 69,262
Jimblebar (6) 85% 16,559 20,075 16,740 15,241 15,337 67,393 61,754
Wheelarra 85% - - - - - - 3
Samarco 50% - - 37 878 1,023 1,938 -
Total 66,729 66,040 62,394 59,855 65,245 253,534 248,159
14
Production summary
Quarter ended Year to date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2020 2020 2020 2021 2021 2021 2020
Coal
Metallurgical coal
Production (kt)
(7)
BMA 50% 9,078 7,365 7,539 7,727 9,253 31,884 31,575
BHP Mitsui Coal
(8) 80% 2,536 2,325 1,983 1,863 2,570 8,741 9,543
Total 11,614 9,690 9,522 9,590 11,823 40,625 41,118
Energy coal
Production (kt)
NSW Energy Coal 100% 4,887 3,624 3,229 2,981 4,492 14,326 16,052
Cerrejón 33.3% 767 1,038 347 1,795 1,784 4,964 7,115
Total 5,654 4,662 3,576 4,776 6,276 19,290 23,167
Other
Nickel
Saleable production
(kt)
Nickel West (9) 100% 23.9 22.2 24.0 20.4 22.4 89.0 80.1
Total 23.9 22.2 24.0 20.4 22.4 89.0 80.1
Cobalt
Saleable production
(t)
Nickel West 100% 312 238 236 273 241 988 775
Total 312 238 236 273 241 988 775
(1) LPG and ethane are reported as natural gas liquids (NGL).
Product-specific conversions are made and NGL is reported in
barrels of oil equivalent (boe). Total boe conversions are based on
6 bcf of natural gas equals 1,000 Mboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of
saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%.
(9) Production restated to include other nickel by-products.
Throughout this report figures in italics indicate that this
figure has been adjusted since it was previously reported.
15
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Petroleum (1)
Bass Strait
Crude oil and condensate (Mboe) 1,231 1,305 1,003 859 1,205 4,372 4,993
NGL (Mboe) 1,493 1,660 1,057 1,035 1,563 5,315 5,666
Natural gas (bcf) 28.1 34.1 23.4 22.7 32.8 113.0 110.9
Total petroleum
products (Mboe) 7,408 8,648 5,960 5,677 8,235 28,520 29,149
North West Shelf
Crude oil and condensate (Mboe) 1,260 1,215 1,180 1,183 933 4,511 5,239
NGL (Mboe) 203 162 165 188 177 692 796
Natural gas (bcf) 35.2 29.6 30.4 31.1 26.5 117.6 135.2
Total petroleum
products (Mboe) 7,334 6,310 6,412 6,554 5,527 24,803 28,569
Pyrenees
Crude oil and condensate (Mboe) 971 837 826 679 690 3,032 3,801
Total petroleum
products (Mboe) 971 837 826 679 690 3,032 3,801
Other Australia
(2)
Crude oil and condensate (Mboe) 1 1 1 1 - 3 11
Natural gas (bcf) 11.9 12.7 12.6 12.4 12.6 50.3 46.5
Total petroleum
products (Mboe) 1,987 2,118 2,101 2,068 2,100 8,387 7,770
Atlantis (3)
Crude oil and condensate (Mboe) 2,223 2,421 2,385 2,590 3,117 10,513 11,276
NGL (Mboe) 54 154 147 171 218 690 669
Natural gas (bcf) 1.1 1.2 1.1 1.4 1.6 5.3 5.6
Total petroleum
products (Mboe) 2,456 2,775 2,715 2,994 3,602 12,086 12,880
Mad Dog (3)
Crude oil and condensate (Mboe) 1,297 1,211 930 1,209 1,099 4,449 4,867
NGL (Mboe) 33 48 38 57 77 220 189
Natural gas (bcf) 0.3 0.2 0.1 0.2 0.2 0.7 0.9
Total petroleum
products (Mboe) 1,374 1,292 985 1,299 1,209 4,785 5,195
Shenzi (3) (4)
Crude oil and condensate (Mboe) 1,584 1,395 1,764 2,328 2,023 7,510 6,245
NGL (Mboe) 40 71 87 130 87 375 298
Natural gas (bcf) 0.4 0.3 0.3 0.4 0.1 1.1 1.2
Total petroleum
products (Mboe) 1,686 1,516 1,901 2,525 2,127 8,069 6,740
Trinidad/Tobago
Crude oil and condensate (Mboe) 72 102 96 139 236 573 510
Natural gas (bcf) 12.8 12.8 10.5 14.4 14.7 52.4 58.9
Total petroleum
products (Mboe) 2,201 2,235 1,846 2,539 2,686 9,306 10,319
Other Americas
(3) (5)
Crude oil and condensate (Mboe) 198 212 190 187 104 693 957
NGL (Mboe) 5 2 11 - 8 21 33
Natural gas (bcf) - - 0.1 - 0.1 0.2 0.4
Total petroleum
products (Mboe) 209 214 218 187 129 748 1,059
16
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Algeria
Crude oil and condensate (Mboe) 690 711 849 845 668 3,073 3,313
Total petroleum
products (Mboe) 690 711 849 845 668 3,073 3,313
Petroleum (1)
Total production
Crude oil and condensate (Mboe) 9,527 9,410 9,224 10,020 10,075 38,729 41,212
NGL (Mboe) 1,828 2,097 1,505 1,581 2,130 7,313 7,651
Natural gas (bcf) 89.8 90.9 78.5 82.6 88.6 340.6 359.6
Total (Mboe) 26,322 26,657 23,812 25,368 26,972 102,809 108,796
(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.
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile
(1)
Material mined (kt) 75,062 83,357 97,274 95,978 104,043 380,652 383,413
Sulphide ore
milled (kt) 34,755 34,733 36,303 32,654 31,903 135,593 135,810
Average concentrator
head grade (%) 0.81% 0.85% 0.83% 0.78% 0.77% 0.81% 0.84%
Production ex
mill (kt) 236.8 243.9 246.1 207.8 202.8 900.6 957.9
Production
Payable copper (kt) 228.5 236.7 236.7 202.7 195.6 871.7 925.9
Copper cathode
(EW) (kt) 65.5 47.9 50.9 46.6 51.1 196.5 259.4
- Oxide leach (kt) 26.8 15.3 18.0 16.1 14.5 63.9 106.3
- Sulphide leach (kt) 38.7 32.6 32.9 30.5 36.6 132.6 153.1
Total copper (kt) 294.0 284.6 287.6 249.3 246.7 1,068.2 1,185.3
Payable gold (troy
concentrate oz) 43,422 42,332 47,789 37,954 38,893 166,968 177,422
Payable silver (troy
concentrate koz) 1,599 1,580 1,627 1,318 1,234 5,759 6,413
Sales
Payable copper (kt) 221.0 237.1 244.3 196.9 194.1 872.4 903.5
Copper cathode
(EW) (kt) 72.1 46.5 47.7 49.6 49.6 193.4 260.9
Payable gold (troy
concentrate oz) 43,422 42,332 47,789 37,954 38,893 166,968 177,422
Payable silver (troy
concentrate koz) 1,599 1,580 1,627 1,318 1,234 5,759 6,413
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
17
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Pampa Norte,
Chile
Cerro Colorado
Material mined (kt) 15,734 12,618 6,750 6,153 5,498 31,019 67,617
Ore milled (kt) 4,553 4,036 3,562 3,283 3,702 14,583 18,131
Average copper
grade (%) 0.60% 0.66% 0.58% 0.58% 0.58% 0.60% 0.56%
Production
Copper cathode
(EW) (kt) 16.9 15.8 15.8 13.9 14.7 60.2 67.5
Sales
Copper cathode
(EW) (kt) 18.7 14.6 16.6 13.2 15.4 59.8 67.3
Spence
Material mined (kt) 24,082 18,260 18,485 19,195 21,262 77,202 91,558
Ore milled (1) (kt) 2,829 4,408 6,809 8,007 9,538 28,762 18,788
Average copper
grade (2) (%) 0.95% 1.10% 0.76% 0.62% 0.67% 0.74% 0.91%
Production
Payable copper (kt) - - 0.7 5.6 21.1 27.4 -
Copper cathode
(EW) (kt) 37.6 26.7 37.8 32.5 33.6 130.6 175.2
Sales
Payable copper (kt) - - - 1.8 20.8 22.6 -
Copper cathode
(EW) (kt) 41.0 24.1 40.9 30.7 34.1 129.8 176.8
(1) June 2021 quarter comprised of concentrator throughput of
4,929 kt and cathode throughput of 4,609 kt.
June 2021 year to date comprised of concentrator throughput of
8,607 kt and cathode throughput of 20,155 kt.
(2) June 2021 quarter weighted average of concentrate grade of
0.63% and cathode grade of 0.72%.
June 2021 year to date weighted average of concentrate grade of
0.59% and cathode grade of 0.81%.
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined
(100%) (kt) 13,975 45,458 57,029 53,762 63,393 219,642 189,370
Sulphide ore
milled (100%) (kt) 6,736 13,202 14,083 12,651 13,466 53,402 46,400
Average head
grades
- Copper (%) 0.91% 0.94% 0.97% 0.94% 0.93% 0.95% 0.94%
- Zinc (%) 1.02% 1.30% 1.30% 1.16% 1.24% 1.25% 0.92%
Production
Payable copper (kt) 17.8 34.6 38.6 34.7 36.1 144.0 124.5
Payable zinc (t) 13,736 34,398 41,909 33,299 35,483 145,089 88,462
(troy
Payable silver koz) 626 1,326 1,767 1,463 1,409 5,965 4,116
Payable lead (t) 262 690 993 468 381 2,532 1,671
Payable molybdenum (t) 243 284 192 276 111 863 1,666
Sales
Payable copper (kt) 18.2 33.8 40.7 31.7 37.3 143.5 125.7
Payable zinc (t) 11,680 32,769 45,109 34,141 32,044 144,063 86,691
(troy
Payable silver koz) 581 1,310 1,728 1,342 1,540 5,920 3,746
Payable lead (t) 188 748 945 689 556 2,938 1,615
Payable molybdenum (t) 223 392 352 192 268 1,204 1,327
18
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Olympic Dam,
Australia
Material mined
(1) (kt) 1,963 2,203 2,379 1,979 2,143 8,704 8,707
Ore milled (kt) 2,454 2,443 2,377 2,238 2,429 9,487 8,985
Average copper
grade (%) 2.13% 2.03% 2.01% 2.02% 1.95% 2.00% 2.27%
Average uranium
grade (kg/t) 0.60 0.53 0.60 0.61 0.56 0.57 0.66
Production
Copper cathode
(ER and EW) (kt) 47.6 51.5 47.6 55.4 50.8 205.3 171.6
Payable uranium (t) 1,016 874 945 834 614 3,267 3,678
(troy
Refined gold oz) 34,150 36,608 23,837 37,075 48,478 145,998 145,972
(troy
Refined silver koz) 295 157 193 275 185 810 984
Sales
Copper cathode
(ER and EW) (kt) 48.5 49.5 46.6 55.6 52.7 204.4 171.0
Payable uranium (t) 1,293 859 999 779 907 3,544 3,411
(troy
Refined gold oz) 37,743 36,054 21,390 38,852 47,300 143,596 151,279
(troy
Refined silver koz) 270 222 165 242 245 874 981
(1) Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia Iron
Ore, Australia
Production
Newman (kt) 17,110 16,410 17,637 14,614 14,560 63,221 65,641
Area C Joint
Venture (kt) 13,973 11,889 11,567 13,010 15,920 52,386 51,499
Yandi Joint Venture (kt) 19,087 17,666 16,413 16,112 18,405 68,596 69,262
Jimblebar (1) (kt) 16,559 20,075 16,740 15,241 15,337 67,393 61,754
Wheelarra (kt) - - - - - - 3
Total production (kt) 66,729 66,040 62,357 58,977 64,222 251,596 248,159
Total production
(100%) (kt) 75,589 74,152 70,407 66,695 72,848 284,102 281,058
Sales
Lump (kt) 17,252 17,056 16,703 15,593 16,410 65,762 63,636
Fines (kt) 50,904 48,390 46,124 42,939 48,837 186,290 186,962
Total (kt) 68,156 65,446 62,827 58,532 65,247 252,052 250,598
Total sales (100%) (kt) 77,048 73,355 70,772 66,032 73,712 283,871 283,259
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
(1)
Production (kt) - - 37 878 1,023 1,938 -
Sales (kt) - - - 646 1,052 1,698 -
(1) Samarco commenced iron ore pellet production in December
2020 after meeting the licencing requirements to restart operations
at the Germano complex in Minas Gerais and Ubu complex in Espírito
Santo, Brazil.
19
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal,
Australia
Production (1)
BMA
Blackwater (kt) 1,703 1,184 1,737 1,416 1,887 6,224 5,545
Goonyella (kt) 2,651 2,312 2,152 2,232 2,752 9,448 8,765
Peak Downs (kt) 1,635 1,487 1,213 1,595 1,597 5,892 5,783
Saraji (kt) 1,399 817 1,043 1,238 1,391 4,489 4,963
Daunia (kt) 588 490 464 496 478 1,928 2,170
Caval Ridge (kt) 1,102 1,075 930 750 1,148 3,903 4,349
Total BMA (kt) 9,078 7,365 7,539 7,727 9,253 31,884 31,575
Total BMA (100%) (kt) 18,156 14,730 15,078 15,454 18,506 63,768 63,150
BHP Mitsui Coal (2)
South Walker Creek (kt) 1,264 1,238 1,118 1,031 1,500 4,887 5,415
Poitrel (kt) 1,272 1,087 865 832 1,070 3,854 4,128
Total BHP Mitsui
Coal (kt) 2,536 2,325 1,983 1,863 2,570 8,741 9,543
Total Queensland
Coal (kt) 11,614 9,690 9,522 9,590 11,823 40,625 41,118
Total Queensland
Coal (100%) (kt) 20,692 17,055 17,061 17,317 21,076 72,509 72,693
Sales
BMA
Coking coal (kt) 7,547 6,187 6,531 6,752 7,801 27,271 27,701
Weak coking coal (kt) 1,040 977 936 1,038 1,069 4,020 3,289
Thermal coal (kt) 183 58 3 206 400 667 531
Total BMA (kt) 8,770 7,222 7,470 7,996 9,270 31,958 31,521
Total BMA (100%) (kt) 17,540 14,444 14,940 15,992 18,540 63,916 63,041
BHP Mitsui Coal (2)
Coking coal (kt) 778 671 604 357 535 2,167 2,782
Weak coking coal (kt) 1,756 1,545 1,518 1,404 2,027 6,494 6,783
Total BHP Mitsui
Coal (kt) 2,534 2,216 2,122 1,761 2,562 8,661 9,565
Total Queensland
Coal (kt) 11,304 9,438 9,592 9,757 11,832 40,619 41,086
Total Queensland
Coal (100%) (kt) 20,074 16,660 17,062 17,753 21,102 72,577 72,606
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
NSW Energy Coal,
Australia
Production (kt) 4,887 3,624 3,229 2,981 4,492 14,326 16,052
Sales
Export thermal coal (kt) 4,871 3,168 3,940 2,827 4,691 14,626 15,301
Inland thermal coal
(1) (kt) - - - - - - 567
Total (kt) 4,871 3,168 3,940 2,827 4,691 14,626 15,868
(1) The domestic sales contract ended in the September 2019 quarter.
Cerrejón, Colombia
Production (kt) 767 1,038 347 1,795 1,784 4,964 7,115
Sales thermal coal
- export (kt) 1,143 994 370 1,746 1,619 4,729 7,501
20
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2020 2020 2020 2021 2021 2021 2020
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 60.2 64.4 55.7 54.1 50.4 224.6 178.2
Average nickel grade (%) 16.5 15.8 14.7 13.3 13.3 14.4 16.9
Leinster
Nickel concentrate (kt) 72.0 66.2 72.8 71.5 71.4 281.9 253.6
Average nickel grade (%) 10.2 9.0 9.5 10.2 10.5 9.8 9.7
Saleable production
Refined nickel (1)
(2) (kt) 20.5 17.3 20.4 15.2 17.1 70.0 65.6
Intermediates and
nickel by-products
(1) (3) (kt) 3.4 4.9 3.6 5.2 5.3 19.0 14.5
Total nickel (1) (kt) 23.9 22.2 24.0 20.4 22.4 89.0 80.1
Cobalt by-products (t) 312 238 236 273 241 988 775
Sales
Refined nickel (1)
(2) (kt) 19.7 17.1 20.9 15.0 17.8 70.8 64.1
Intermediates and
nickel by-products
(1) (3) (kt) 4.2 4.6 2.6 5.9 4.0 17.1 15.5
Total nickel (1) (kt) 23.9 21.7 23.5 20.9 21.8 87.9 79.6
Cobalt by-products (t) 312 238 237 273 241 989 787
(1) Production and sales restated to include other nickel by-products.
(2) High quality refined nickel metal, including briquettes and powder.
(3) Nickel contained in matte and by-product streams.
21
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July 20, 2021 02:00 ET (06:00 GMT)
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