UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
May 18, 2021
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BHP GROUP LIMITED
(ABN 49 004 028 077)
(Exact name of Registrant as specified in its charter)
VICTORIA, AUSTRALIA
(Jurisdiction of incorporation or organisation)
171 COLLINS STREET, MELBOURNE,
VICTORIA 3000 AUSTRALIA
(Address of principal executive offices)
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BHP GROUP PLC
(REG. NO. 3196209)
(Exact
name of Registrant as specified in its charter)
ENGLAND AND WALES
(Jurisdiction of incorporation or organisation)
NOVA SOUTH, 160 VICTORIA STREET
LONDON, SW1E 5LB
UNITED
KINGDOM
(Address of principal executive offices)
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: ☒ Form 20-F ☐ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ☐ Yes ☒ No
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b): n/a
NEWS RELEASE
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Release Time
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IMMEDIATE
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Date
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18 May 2021
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Release Number
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06/21
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Bank of America Metals, Mining and Steel Conference
BHP CEO, Mike Henry, will present at the Bank of America Metals, Mining and Steel Conference today.
A copy of the presentation and speech are attached.
These are
also available on BHPs website at: https://www.bhp.com/investor-centre/investor-presentations-and-briefings/
The webcast of the presentation
will be available at: http://www.veracast.com/webcasts/bofa/globalmetalsminingandsteel2021/id8I309l.cfm
Further information on BHP can be found
at: bhp.com
Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary
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Media Relations
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Investor Relations
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Email: media.relations@bhp.com
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Email: investor.relations@bhp.com
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Australia and Asia
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Australia and Asia
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Gabrielle Notley
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Tara Dines
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Tel: +61 3 9609 3830 Mobile: +61 411 071 715
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Tel: +61 3 9609 2222 Mobile: + 61 499 249 005
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Europe, Middle East and Africa
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Europe, Middle East and Africa
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Neil Burrows
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James Bell
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Tel: +44 20 7802 7484 Mobile: +44 7786 661 683
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Tel: +44 20 7802 7144 Mobile: +44 7961 636 432
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Americas
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Americas
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Judy Dane
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Brian Massey
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Tel: +1 713 961 8283 Mobile: +1 713 299 5342
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Tel: +1 713 296 7919 Mobile: +1 832 870 7677
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BHP Group Limited ABN 49 004 028 077
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BHP Group plc Registration number 3196209
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LEI WZE1WSENV6JSZFK0JC28
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LEI 549300C116EOWV835768
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Registered in Australia
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Registered in England and Wales
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Registered Office: Level 18, 171 Collins Street
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Registered Office: Nova South, 160 Victoria Street
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Melbourne Victoria 3000 Australia
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London SW1E 5LB United Kingdom
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Tel +61 1300 55 4757 Fax +61 3 9609 3015
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Tel +44 20 7802 4000 Fax +44 20 7802 4111
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Members of the BHP Group which is
headquartered in Australia
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Bank of America Metals, Mining and Steel Conference
18 May 2021
Positioned for the future
Thank you. Its great to have the opportunity to join you again.
Just before I turn to the main topics I am going to speak to today, I want to start by saying how pleased I am with how the company is performing.
We are safer and delivering more reliable performance. This, coupled with the quality of our assets and our disciplined cost control, is allowing us to secure
maximum benefit from the record high iron ore and copper prices.
We have delivered a number of major projects in the past twelve months the
185 thousand tonne per annum expansion at the Spence copper asset, Atlantis Phase 3 and the Ruby project in Petroleum, and in the next few days we will announce first production at the 80 million tonne per annum South Flank iron ore
project, with its higher grade and lump fraction. All brought in on time and on budget in spite of COVID-19, and perfectly timed given where copper and iron ore prices are at.
We had the counter-cyclical acquisition of an extra stake in the Shenzi asset in Petroleum. And we have secured more exploration partnerships and early stage
growth opportunities in copper and nickel. Finally, we have made marked progress on our efforts to reduce operational emissions and have signed a number of partnerships with others in the value chain targeted at reducing Scope 3 emissions. So
overall, the company is really going well at the moment.
Building upon this strong near term performance though, today I want to talk about two things:
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Firstly, the critical need for resources in meeting the worlds decarbonisation challenge and to support
global economic growth and development.
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And secondly, BHPs commitment to playing a leading role in ensuring these demands get met sustainably.
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We are optimistic for the future. We believe the world can both decarbonise and achieve the higher living standards that people aspire
to. We are at the centre of both these aims.
Recent times have seen greater uncertainty and volatility in markets and geopolitics, and growing
expectations on the part of shareholders, communities and broader society. In addition, there are increasing technical and financial challenges in finding and developing the fresh supply required in some commodities.
Successful companies will be those with a clear strategy and sense of purpose, who are exceptional operators and allocators of capital, are in tune with the
changing world around them and who focus on bringing this all together to create long-term value for all their stakeholders. This is BHP. We have built the organisational capability, relationships and balance sheet strength to allow us to thrive in
this environment.
The outlook for our commodities is compelling.
Government stimulus and pro-growth agendas, which are expected to remain in place for an extended period, are anticipated to lead to robust growth, a lift in
inflation and solid demand for mineral resources and oil and gas.
This is occurring at a time when our industrys capital discipline and decline in
exploration success over a number of years means there are fewer high quality growth projects in the industry pipeline to meet this demand.
The drive to
more rapidly decarbonise the globe may also accelerate demand for many of the products we produce. A growing number of governments are committing to tackling climate change with greater ambition and are cooperating to do so.
A transition to a world where warming is limited to no more than 1.5 degrees above pre-industrial levels is positive for BHP and would allow us to create
significant value.
In a Paris-aligned scenario1, we expect a more than doubling of the amount of
primary copper and a quadrupling of the amount of primary nickel demand over the next 30 years, as was produced over the last 30. Demand for steel will almost double on this basis, and potash will be vital for more efficient agricultural practices.
And as the shift to cleaner energy sources occurs, the world will still need oil and gas to power mobility and everyday life on its pathway to decarbonisation.
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This speech should be read in conjunction with the BHP Climate
Change Report 2020 available at bhp.com which details our planning cases and portfolio analysis under a 1.5°C Paris-aligned Scenario.
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1
The world is going to need more supply of some commodities in order to continue to grow and to make the
transition to cleaner energy.
The level of global effort, innovation and coordination to limit warming to 1.5 degrees is massive. However, the commitment
and intention for the future is becoming clearer.
At BHP for over 130 years we have been reliably providing our customers with high quality supply of the
commodities they need and for the world to grow. Like our purpose says, we have been bringing people and resources together to build a better world.
The
world is continuing to evolve and it is doing so in a way that plays to BHPs strengths.
We are running our operations exceptionally well. We are
safer, more reliable, and more productive than ever before. We have now had almost two and a half years fatality free, an exceptional result. And our two largest assets, Western Australia Iron Ore and our Escondida copper mine, have continued to set
production and throughput records, while delivering excellent cost performance.
We remain hungry to improve. We have redoubled our focus on becoming even
safer. We are systematically unlocking even greater performance from our equipment and infrastructure. We are enabling our people and are investing in capability be it in trade skills, through our FutureFit Academy and Operations Services, or
technical skills, through our centres of excellence. And we are underpinning this by ensuring we have an inclusive and diverse workforce.
Our portfolio
is well-positioned. We produce commodities essential to everyday life, global economic growth and the energy transition. Around 60 per cent2 of our production is in commodities that support
steel-making, which we anticipate will see strong demand as the world decarbonises.
Around one
quarter2 of our portfolio is currently in future facing commodities, which for us are copper, nickel and potash, and we expect to grow this over the coming years. This includes an
increase in average copper production over the next five years of more than 300 thousand tonnes per annum3, equivalent to adding another Spence to the portfolio.
Given our rock-solid foundations of a strong balance sheet and disciplined approach to capital allocation, we are positioned well to be able to continue to
pursue new opportunities for growth.
As we have done for over a century, we will continue to meet the worlds changing and growing demand for
commodities.
There is though an obvious tension between the worlds need for more resources and the need to make the world more sustainable: both
for people and for the environment. It is essential that both are achieved. Growing demand must be met ever more sustainably.
This requires alignment
between resources companies like BHP, investors and society on how best to navigate this tension. Better alignment will enable the transition to be achieved more sustainably, quickly and cost effectively. Conversely, a lack of alignment will result
in poorer sustainability outcomes, and slower and more costly progress on the energy transition.
BHP is committed to continuing to create value for
shareholders and all of its stakeholders. We will continue to demonstrate leadership on sustainability, including on climate change.
We have been taking
real action on climate for decades. Most of our assets are already at the lower end of their respective emissions intensity curves, and we are working to lower them further.
Consistent with our commitment to reduce operational emissions by at least 30 per cent by 20304 and
be net zero by 2050, a number of our assets are on the way to having a substantial portion, or even all, their electricity provided by renewables.
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Based on FY20 copper equivalent production at FY20 average realised prices.
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Represents average copper production from our existing operations over the next five years, relative to
mid-point of FY21 guidance.
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FY2020 baseline will be adjusted for any material acquisitions and divestments based on greenhouse gas
emissions at the time of the transaction. Carbon offsets will be used as required.
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Beyond greening our electricity supplies, we will decarbonise our mining equipment, through displacing diesel.
This is a much more complex task but we are partnering with industry and equipment manufacturers to drive this transition.
Outside our operations, we are
working with others in our value chain to develop solutions for hard-to-abate emissions.
For example, we are working with some of the worlds
leading steel makers, and with technology start-ups, to identify pathways and develop technologies to reduce steel-making emissions. Over the past six months, we have established partnerships with three major steelmakers in China and Japan, whose
combined output equates to around 10 per cent of global steel production more than that produced in all of Europe.
And, as one of the
worlds largest bulk freight charterers, we are working with the maritime industry to support greener freight. We have pioneered the worlds first tender for LNG-fuelled bulk carriers; successfully completed a trial of marine biofuels;
and, just last month, were the only resources company to become a founding member of the Maritime Decarbonisation Centre to be set up in Singapore.
These
actions are aligned with our commitment to addressing climate change by reducing our own emissions and by working with partners to reduce emissions in the value chains in which we operate.
We believe the future is increasingly clear and our strategy, portfolio, capabilities and approach to social value position us to play an important role in
meeting the twin objectives of an accelerated energy transition, and continued economic development and improvement in living standards. We are committed to doing so sustainably. And we are well-placed to generate great returns and value for
shareholders and to support others to grow and prosper.
Thank you.
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Positioned for the future Mike Henry Chief Executive Officer 18 May 2021
Disclaimer Forward-looking statements This presentation contains forward-looking statements, including
statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of management; assumed long-term scenarios; potential global responses to climate change;
the potential effect of possible future events on the value of the BHP portfolio; closure or divestment of certain assets, operations or facilities (including associated costs); anticipated production or construction commencement dates; capital
costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; and tax and regulatory developments. Forward-looking
statements may be identified by the use of terminology, including, but not limited to, intend, aim, project, anticipate, estimate, plan, believe, expect,
may, should, will, would, continue, annualised or similar words. These statements discuss future expectations concerning the results of assets or financial conditions, or
provide other forward-looking information. These forward-looking statements are based on the information available as at the date of this release and/or the date of the Groups planning processes or scenario analysis processes. There are
inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate. Scenarios do not constitute definitive outcomes for us. Scenario analysis relies on assumptions that may or may not be, or
prove to be, correct and may or may not eventuate, and scenarios may be impacted by additional factors to the assumptions disclosed. Additionally, forward-looking statements 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. BHP cautions against reliance on any
forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. For example, our future revenues from our assets, projects
or mines described in this release will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the
feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing assets. Other factors that may affect the actual construction or production commencement dates, costs or production
output and anticipated lives of assets, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market
prices of the minerals, petroleum or metals we produce; activities of government authorities in the countries where we sell our products and in the countries where we are exploring or developing projects, facilities or mines, including increases in
taxes; changes in environmental and other regulations; the duration and severity of the COVID-19 pandemic and its impact on our business; political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHPs
filings with the U.S. Securities and Exchange Commission (the SEC) (including in Annual Reports on Form 20-F) which are available on the SECs website at www.sec.gov. Except as required by applicable regulations or by law, BHP does
not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. BHP Climate Change Report 2020 This
presentation should be read in conjunction with the BHP Climate Change Report 2020 available at bhp.com. Some of the information in this presentation provides a concise overview of certain aspects of that Report and may omit information, analysis
and assumptions and, accordingly, BHP cautions readers from relying on that information in this presentation in isolation. Presentation of data Numbers presented may not add up precisely to the totals provided due to rounding. All footnote content
is contained on slide 9. No offer of securities Nothing in this presentation should be construed as either an offer or a solicitation of an offer to buy or sell BHP securities in any jurisdiction, or be treated or relied upon as a recommendation or
advice by BHP. Reliance on third party information The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as
to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by BHP. BHP and its subsidiaries In this presentation, the terms BHP, the Company,
the Group, our business, organization, Group, we, us and our refer to BHP Group Limited, BHP Group Plc and, except where the context otherwise requires, their
respective subsidiaries set out in note 13 Related undertaking of the Group in section 5.2 of BHPs Annual Report and Form 20-F. Those terms do not include non-operated assets. This presentation includes references to BHPs
assets (including those under exploration, projects in development or execution phases, sites and closed operations) that have been wholly owned and/or operated by BHP and that have been owned as a joint venture operated by BHP (referred to as
operated assets or operations) during the period from 1 July 2020 to 31 December 2020. Our functions are also included. BHP also holds interests in assets that are owned as a joint venture but not operated by BHP (referred to
in this release as non-operated joint ventures or non-operated assets). Our non-operated assets include Antamina, Cerrejón, Samarco, Atlantis, Mad Dog, Bass Strait and North West Shelf. Notwithstanding that this
presentation may include production, financial and other information from non-operated assets, non-operated assets are not included in the Group and, as a result, statements regarding our operations, assets and values apply only to our operated
assets unless otherwise stated. References in this release to a joint venture are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are not intended to characterise the legal
relationship between the owners of the asset. Bank of America Metals, Mining and Steel Conference 18 May 2021 2
Creating value for the long term Economic growth and the energy transition represent significant opportunity
for BHP Our commodities are essential to global economic growth and the energy transition ~4x ~2x BHP will do best in a transition to a world as much nickel as much copper needed over next and steel needed where warming is limited to 1.5ºC 1 1
30 years over next 30 years Our world-class operations, portfolio and balance sheet position us well to capitalise on opportunities >300ktpa ~10% more BHP copper of global steelmaking We are committed to leadership in social value production (on
average) production in emissions over next five years2 reduction partnerships with us Bank of America Metals, Mining and Steel Conference 18 May 2021 3
BHP
A compelling outlook for value Encouraging signs of recovery and renewal in the near term; major inflection
points beckon beyond that Policy makers Fears of Growth & inflation Synchronised Macro environment remain growth austerity and expectations upswing focused deflation recede increase Demand Disciplined Tightens market BHP The resources cycle
recovery supply balances opportunity Climate strategies Easier-to-abate Widespread carbon Increased likelihood Decarbonisation take shape sectors take-off pricing of Paris outcomes Bank of America Metals, Mining and Steel Conference 18
May 2021 5
BHP benefits from more rapid decarbonisation As decarbonisation accelerates the world will require more copper,
nickel, potash and steel 1.5°C Scenario1 Cumulative demand in the next 30 years compared to the last 30 years (%) Central Energy View Lower Carbon View 400 Climate Crisis Planning range5 350% 300 200 100 0 Nickel1 Potash Uranium3 Copper1 Iron
ore4 Natural gas Metallurgical coal4 Oil Source: BHP, Vivid Economics. Note: Our portfolio is tested across a range of future scenarios, including a scenario where warming is limited to 1.5°C. Scenarios were developed prior to the impacts of the
COVID-19 pandemic, and therefore any possible effects of the pandemic were not considered in the modelling. Bank of America Metals, Mining and Steel Conference 18 May 2021 6
Capitalising on opportunities Reliably and sustainably producing the high quality commodities needed by the
world Safer, more reliable with higher margin Portfolio well positioned to protect and grow value Strong free cash flow and balance sheet High shareholder returns Escondida Strong social value performance Bank of America Metals, Mining and Steel
Conference 18 May 2021 7
We are committed to sustainability leadership Resources are essential for global economic growth and the energy
transition Environmental accountability Creating Social value Leading Governance practices All the while remaining accountable. Committed to material positive impact Providing skilled jobs for our people Our progress will be a key metric for in
decarbonisation of our sector. and support for our communities. success. Targeting lower operational emissions: Social investment: No less than 1% of Gender balance: Executive Leadership At least 30% by FY2030 from FY2020 pre-tax profit7 Team at 50%
and Board at 33%; goal to levels6; goal of net zero by 2050 achieve whole-of-company gender balance Indigenous employment: 8% in by 2025 Partnering: Decarbonisation pathways for Australia by end-FY2025 our value chain (HBIS, China BaoWu, JFE,
Executive remuneration: Linked to LNG bulk carriers) Health and safety: Target fatality safety, returns and climate targets elimination (technology and contractor (where weighting increased in Impact investing: Renewable power and partnerships);
support wellbeing (mental FY2021) desalination health framework) Bank of America Metals, Mining and Steel Conference 18 May 2021 8
Footnotes 1. Slide 3 and 6: Represents cumulative demand in the next 30 years compared to the last 30 years.
Nickel and copper demand references primary metal. Figures refer to BHPs 1.5°C Scenario. BHPs scenarios are outlined in the Climate Change Report 2020. Source: BHP, Vivid Economics. 2. Slide 3: Represents average copper production
from our existing operations over the next five years, relative to mid-point of FY21 guidance. 3. Slide 6: Nuclear power was used as a proxy for historic and future cumulative demand for uranium. 4. Slide 6: Iron ore and metallurgical coal demand
based on Contestable Market (Global seaborne market plus Chinese domestic demand). 5. Slide 6: Our Planning Ranges reflect our deterministic view of future outcomes for commodity demand. The low and high end of the range are constructed to be both
plausible and challenging, with the balance of risks around these boundary cases necessarily skewed back towards the body of the range. 6. Slide 8: FY2020 baseline will be adjusted for any material acquisitions and divestments based on greenhouse
gas emissions at the time of the transaction. Carbon offsets will be used as required. 7. Slide 8: No less than 1% pre-tax profit (3-year rolling average). Bank of America Metals, Mining and Steel Conference 18 May 2021 9
BHP
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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BHP Group Limited and BHP Group Plc
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Date: May 18, 2021
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By:
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/s/ Stefanie Wilkinson
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Name:
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Stefanie Wilkinson
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Title:
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Group Company Secretary
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