TIDMBHP

RNS Number : 4518P

BHP Group PLC

19 October 2021

 
Release Time     IMMEDIATE 
Date             19 October 2021 
Release Number   23/21 
 

BHP OPERATIONAL REVIEW

FOR THE QUARTERED 30 SEPTEMBER 2021

Note: All guidance is subject to further potential impacts from COVID-19 during the 2022 financial year.

-- We safely delivered reliable operational performance during the quarter as we executed a series of planned major maintenance activities across our assets.

   --    All production and unit cost guidance(1) remains unchanged for the 2022 financial year. 

-- Our major projects under development are tracking to plan, with two new projects, the Jansen Stage 1 potash project and the Shenzi North development project in the US Gulf of Mexico, approved during the September 2021 quarter. The Jansen shaft project is 96% complete, and the Trion oil project in Mexico moved into the Front End Engineering Design (FEED) phase and is expected to progress to a Final Investment Decision from mid-calendar year 2022.

-- The announced agreement to pursue a proposed merger of our Petroleum business with Woodside to create a global top 10 independent energy company is progressing to plan, with full form transaction documents expected in November 2021.

-- We announced our i ntention to unify our corporate structure under BHP's existing Australian parent company subject to final Board and other approvals. Unification would create a simplified structure and enhance strategic flexibility. If approved, unification is expected to occur in March 2022 quarter.

-- In Petroleum, the Calypso appraisal well Bongos-3 in Trinidad and Tobago spud on 27 July 2021 and encountered hydrocarbons. A side track is currently being drilled to complete the appraisal.

-- In Copper exploration, BHP exercised its option to form an exploration joint venture with Red Tiger Resources for the Intercept Hill copper project, which borders BHP's Oak Dam site in South Australia.

 
                            Sep Q21        Sep Q21 
Production                (vs Sep Q20)   (vs Jun Q21)  Sep Q21 vs Jun Q21 commentary 
-----------------------  -------------  -------------  ------------------------------------------------------------------------------------------------- 
Petroleum (MMboe)                 27.5           27.5  Higher volumes due to increased production from Ruby and higher seasonal gas demand at Bass 
                                                        Strait, partially offset by lower production at North West Shelf and natural field decline. 
                                    3%             2% 
Copper (kt)                      376.5          376.5  Lower volumes at Olympic Dam due to the commencement of the planned smelter maintenance campaign, 
                                                        albeit approximately one month delayed due to COVID-19 related border restrictions. 
                                  (9%)           (7%) 
Iron ore (Mt)                     63.3           63.3  Lower volumes reflects planned major maintenance including car dumper one and the impacts 
                                                        of temporary rail labour shortages due to COVID-19 related border restrictions, which have 
                                                        improved during September 2021. 
                                  (4%)           (3%) 
Metallurgical coal (Mt)            8.9            8.9  Lower volumes due to planned maintenance at BMA, a planned longwall move at Broadmeadow and 
                                                        mining in higher strip ratio areas at BMC. This was partially offset by record stripping at 
                                                        BMC reflecting a step up in underlying truck productivity at South Walker Creek. 
                                  (9%)          (25%) 
Energy coal (Mt)                   4.2            4.2  Lower volumes at NSWEC due to mining in higher strip ratio areas, partially offset by increased 
                                                        stripping enabled by continued improvement in underlying truck productivity. 
                                   17%           (6%) 
Nickel (kt)                       17.8           17.8  Lower volumes due to planned maintenance across the supply chain. 
                                 (20%)          (21%) 
 

Group copper equivalent production decreased by 5% in the September 2021 quarter following lower minerals volumes largely a result of planned maintenance.

1

Summary

BHP Chief Executive Officer, Mike Henry:

"BHP's operations delivered reliably during the first quarter and we completed planned major maintenance activities across a number of our assets. We continue to skilfully navigate the ongoing challenges of COVID-19.

We progressed the ramp-up of production of high quality iron ore at South Flank and copper from the Spence Growth Option, and we delivered first nickel sulphate from our new plant at Kwinana.

We sanctioned the Jansen Stage 1 potash project in Canada, and made a series of targeted investments in copper and nickel exploration in Australia and Canada. These are aligned with our efforts to increase our exposure to future facing commodities and to position the portfolio to continue to deliver attractive returns and long-term value to shareholders."

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.

 
                                               Sep Q21   Sep Q21        Current 
                                         Sep        vs        vs           FY22 
Production                               Q21   Sep Q20   Jun Q21       guidance 
------------------------------------  ------  --------  --------  -------------  --------- 
Petroleum (MMboe)                       27.5        3%        2%       99 - 106  Unchanged 
Copper (kt)                            376.5      (9%)      (7%)  1,590 - 1,760 
  Escondida (kt)                       243.7     (14%)      (1%)  1,000 - 1,080  Unchanged 
  Pampa Norte (kt)                      67.5       59%      (3%)      330 - 370  Unchanged 
  Olympic Dam (kt)                      29.5     (43%)     (42%)      140 - 170  Unchanged 
  Antamina (kt)                         35.8        3%      (1%)      120 - 140  Unchanged 
Iron ore (Mt)                           63.3      (4%)      (3%)      249 - 259 
  WAIO (Mt)                             62.3      (6%)      (3%)      246 - 255  Unchanged 
  WAIO (100% basis) (Mt)                70.6      (5%)      (3%)      278 - 288  Unchanged 
  Samarco (Mt)                           1.0      100%        2%          3 - 4  Unchanged 
Metallurgical coal (Mt)                  8.9      (9%)     (25%)        39 - 44 
  Queensland Coal (100% basis) (Mt)     15.6      (9%)     (26%)        70 - 78  Unchanged 
Energy coal (Mt)(i)                      4.2       17%      (6%)        13 - 15 
  NSWEC (Mt)                             4.2       17%      (6%)        13 - 15  Unchanged 
Nickel (kt)                             17.8     (20%)     (21%)        85 - 95  Unchanged 
Assets held for sale 
Energy coal - Cerrejón (Mt)(i)      2.1       98%       15%            n/a 
 

(i) Cerrejón production guidance has ceased reflecting the announced divestment of our interest in June 2021 and volumes will be reported separately from 1 July 2021 until transaction completion.

Major development projects

During the September 2021 quarter, the BHP Board approved an investment of US$5.7 billion (C$7.5 billion) for the Jansen Stage 1 project in Canada and US$544 million for the Shenzi North development project in the US Gulf of Mexico.

At the end of the September 2021 quarter, BHP had four major projects under development, in petroleum (Mad Dog Phase 2 and Shenzi North development) and potash (Jansen mine shafts and Jansen Stage 1), with a combined budget of US$11.42 billion over the life of the projects.

2

Corporate update

In August 2021, we announced a merger proposal to combine our Petroleum business with Woodside Petroleum Ltd by an all-stock merger, subject to confirmatory due diligence, negotiation and execution of full form transaction documents and satisfaction of conditions precedent including required approvals. The proposed merger would create a global top 10 independent energy company by production and be the largest energy company on the Australian Stock Exchange. Execution of a Share Sale Agreement and Integration and Transition Services Agreement is expected to take place in November 2021. Following receipt of all approvals, the merger is expected to be completed in the second quarter of the 2022 calendar year with an effective date of 1 July 2021. An integration team with representatives from both companies has been established and is progressing integration planning activities, which includes developing a path to unlock estimated synergies of more than US$400 million per annum.

In August 2021, we also announced that we intend to unify our dual listed company (DLC) structure, subject to final Board approval, third party consents, regulatory, shareholder and court approvals. Unification would result in a corporate structure that is simpler, more efficient and improves portfolio flexibility to maximise value for shareholders over the long-term, including facilitating a simpler separation of Petroleum. Constructive engagement with regulators and third parties continues and the process remains on track. If all approvals are received, unification is expected to occur in the March 2022 quarter.

On 14 September 2021, BHP released its Climate Transition Action Plan 2021 (CTAP). The CTAP builds on the Climate Change Report we released in September last year and has been designed with reference to the structure of the Climate Action 100+ Net Zero Company Benchmark, which was established in late 2020. It provides an update on BHP's performance in a format that responds to evolving investor assessment and disclosure frameworks, announces our enhanced position on Scope 3, and continues BHP's demonstrated and long-term commitment to engagement and transparency on our approach to climate change.

In October 2021, we entered into renewable energy supply agreements that will see Olympic Dam reduce its operational emissions to zero for 50 per cent of its electricity consumption by 2025, based on current forecast demand. Iberdrola Renewable Energy Park near Port Augusta in South Australia will supply the renewable energy under the agreement and, once in operation in July 2022, will be Australia's largest solar-wind hybrid plant. This announcement follows BHP's entry into renewable energy agreements for BHP's operations in Western Australia, Queensland and Chile.

In October 2021, we also signed a Memorandum of Understanding (MoU) with South Korea's POSCO, one of the world's largest steelmakers to jointly explore greenhouse gas emissions reduction technologies in the integrated steelmaking value chain.

Our Support Agreement with Noront Resources (Noront) to make an all-cash takeover offer for Noront remains in place. Noront owns an extensive land package that includes the Eagle's Nest nickel and copper deposit in the James Bay Lowlands, Ontario, in an emerging metals area known as the Ring of Fire.

Samarco's Judicial Reorganisation process is continuing in the Commercial Courts of Belo Horizonte, State of Minas Gerais. The Judicial Reorganisation is a means for Samarco to restructure its financial debts in order to establish a sustainable independent financial position as Samarco continues to rebuild its operations safely and meet its Renova Foundation obligations.

In addition, negotiations are ongoing with State and Federal Prosecutors and certain other Brazilian public authorities in relation to 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. The suspended R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim is under discussion as part of these negotiations, which were provided for in the Governance Agreement signed between the parties in 2018.

3

Petroleum

Production

 
                                                                      Sep Q21     Sep Q21 
                                                                           vs          vs 
                                                          Sep Q21     Sep Q20     Jun Q21 
                                                        ---------  ----------  ---------- 
Crude oil, condensate and natural gas liquids (MMboe)        12.8         11%          4% 
Natural gas (bcf)                                            88.4        (3%)          0% 
Total petroleum production (MMboe)                           27.5          3%          2% 
 

Petroleum - Total petroleum production increased by three per cent to 28 MMboe. Guidance for the 2022 financial year remains unchanged at between 99 and 106 MMboe.

Crude oil, condensate and natural gas liquids production increased by eleven per cent to 13 MMboe, reflecting lower impact from weather events in the Gulf of Mexico, increased volumes from Ruby following first production in May 2021 and the additional 28 percent working interest acquired in Shenzi in November 2020, partially offset by natural field decline across the portfolio.

Natural gas production decreased by three per cent to 88 bcf, reflecting decreased production at North West Shelf and natural field decline across the portfolio, partially offset by increased volumes from Ruby and higher seasonal demand for gas at Bass Strait.

Projects

 
                         Capital       Initial 
                        expenditure   production 
Project and                US$M         target 
 ownership                               date     Capacity                     Progress 
---------------------  ------------  -----------  ---------------------------  ----------------------- 
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 95% complete. 
 Mexico)                                           gross barrels of oil 
 23.9% (non-operator)                              equivalent per day. 
Shenzi North                    392         CY24  A two-well subsea tie-in     Approved in August 
 development                                       to the Shenzi platform,      2021. 
 (US Gulf of                                       with the capacity to 
 Mexico)                                           produce up to 30,000 
 72% (operator)                                    gross barrels of oil 
                                                   equivalent per day. 
 

On 5 August 2021, we announced an investment of US$544 million for Shenzi North development in the US Gulf of Mexico. The capital expenditure represents a 100 per cent share interest. BHP is the operator and holds a 72 per cent share in Shenzi North. Repsol holds the remaining 28 per cent working interest. First production is targeted for the 2024 calendar year.

We also announced the approval of US$258 million in capital expenditure to move the Trion oil project in Mexico into the Front End Engineering Design (FEED) phase. The focus of these studies will be on completion of the engineering, commercial arrangements and execution planning required to progress to a Final Investment Decision (FID) from mid-calendar year 2022.

In the September 2021 quarter, onshore construction and commissioning of the Mad Dog Phase 2 project's semi-submersible floating production platform, Argos, was completed and it is in the process of being towed to the final location for offshore execution. First production from Mad Dog Phase 2 is expected in the middle of the 2022 calendar year.

In October 2021, one of the two Shenzi infill wells was brought online and early flowback results looks promising. Both Shenzi infill wells are expected to be online in the 2022 financial year.

Engineering work continues to progress at Scarborough. BHP and Woodside (the operator) have developed a plan towards Scarborough FID by the end of the 2021 calendar year prior to the proposed completion date for the merger. As part of this plan, BHP and Woodside have agreed an option for BHP to divest its 26.5 per cent interest in the Scarborough Joint Venture (JV) to Woodside and 50 per cent interest in the Thebe and Jupiter JVs to Woodside if the Scarborough JV takes a FID by 15 December 2021 and the merger does not proceed.

4

Petroleum exploration

Exploration and appraisal wells drilled during the September 2021 quarter are summarised below.

 
                                      Formation                                   Water      Total well 
Well        Location   Target         age         BHP equity           Spud date  depth      depth       Status 
----------  ---------  -------------  ----------  -------------------  ---------  ---------  ----------  ------------- 
            Trinidad 
             & Tobago 
             Block     Lowest         Late                             27 July                           Hydrocarbons 
Bongos-3     TTDAA 14   hydrocarbons   Miocene    70% (BHP Operator)    2021      2,114 m    5,360 m     encountered 
            Trinidad 
             & Tobago 
             Block                    Late                             27 July                           Drilling 
Bongos-3X    TTDAA 14  Gas             Miocene    70% (BHP Operator)    2021      2,114 m    4,197 m(i)  ahead(i) 
            Trinidad 
             & Tobago 
             Block                    Late                             6 August 
Bongos-4     TTDAA 14  Gas             Miocene    70% (BHP Operator)    2021      2,177 m    3,368 m     Suspended(ii) 
 
   (i)      Well depth and status as at 30 September 2021. 
   (ii)     Bongos-4 will resume at completion of Bongos-3X. 

In Trinidad and Tobago, the Calypso appraisal program is currently underway. The Bongos-3 well was spud on 27 July 2021 and the formation evaluation program was completed on 18 September 2021. The well encountered hydrocarbons and a side track (Bongos-3X) is currently being drilled for further appraisal. The Bongos-4 well was spud on 6 August 2021 and is currently suspended, with operations due to recommence following the completion of Bongos-3X operations.

In the central Gulf of Mexico, the Wasabi exploration well (GC124-001) was spud on 7 October 2021.

In Barbados, the government has approved our proposed seismic program and we plan to acquire a 3D seismic survey over a portion of the Bimshire and Carlisle Bay blocks. The survey is expected to commence in the December 2021 quarter.

Petroleum exploration expenditure for the September 2021 quarter was US$87 million, of which US$35 million was expensed. An approximate US$540 million exploration and appraisal program is being executed for the 2022 financial year.

Copper

Production

 
                           Sep Q21     Sep Q21 
                              vs          vs 
                Sep Q21     Sep Q20     Jun Q21 
              ---------  ----------  ---------- 
Copper (kt)       376.5        (9%)        (7%) 
Zinc (t)         33,289        (3%)        (6%) 
Uranium (t)         531       (39%)       (14%) 
 

Copper - Total copper production decreased by nine per cent to 377 kt. Guidance for the 2022 financial year remains unchanged at between 1, 590 and 1, 760 kt, with production weighted to the second half of the financial year .

In the September 2021 quarter, the operating environment for our Chilean assets improved due to high COVID-19 vaccination rates. However, some uncertainty related to COVID-19 impacts remains as the pandemic evolves.

Escondida copper production decreased by 14 per cent to 244 kt due to forecast concentrator feed grade decline. Guidance for the 2022 financial year remains unchanged at between 1,000 and 1,080kt. Decline in concentrator feed grade is expected to be approximately two per cent for the year. Medium term 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 13 August 2021, Escondida successfully completed negotiations for a new collective agreement with the Union N(o) 1 of Operators and Maintainers, effective for 36 months from 2 August 2021.

5

Pampa Norte copper production increased by 59 per cent to 68 kt, reflecting the continued ramp-up of the Spence Growth Option (SGO), which has brought on a new concentrate stream. Guidance for the 2022 financial year remains unchanged at between 330 and 370 kt with the new stream of concentrate production at Spence partially offset by a forecast decline in stacking grade at Pampa Norte of approximately 10 per cent. The ramp up to full production capacity at SGO is expected to be complete by December 2021, following which Spence is forecast to average 300 ktpa of production (including cathodes) over the first four years of operation. On 11 September 2021, Cerro Colorado and Union N(o) 1 (Operators and Maintainers) reached a new collective agreement, effective for 36 months from 1 September 2021.

Olympic Dam copper production decreased by 43 per cent to 30 kt, reflecting the ramp down and commencement of the major smelter maintenance campaign, approximately one month later than plan due to COVID-19 border restrictions impacting the availability of workforce. The maintenance campaign is expected to complete towards the end of the December 2021 quarter, followed by a ramp up to full capacity by March 2022. Guidance for the 2022 financial year remains unchanged at between 140 and 170 kt.

Antamina copper production increased by three per cent to 36 kt and zinc production decreased by three per cent to 33 kt, reflecting higher copper and lower zinc head grades. Guidance remains unchanged for the 2022 financial year, with copper production of between 120 and 140 kt, and zinc production of between 115 and 130 kt.

Iron Ore

Production

 
                                        Sep Q21     Sep Q21 
                                           vs          vs 
                             Sep Q21     Sep Q20     Jun Q21 
                           ---------  ----------  ---------- 
Iron ore production (kt)      63,299        (4%)        (3%) 
 

Iron ore - Total iron ore production decreased by four per cent to 63 Mt. Guidance for the 2022 financial year remains unchanged at between 249 and 259 Mt.

WAIO production decreased by six per cent to 62 Mt (71 Mt on a 100 per cent basis), mainly reflecting higher planned maintenance during the quarter, including major maintenance of car dumper one and the train load out at Jimblebar. Temporary rail labour shortages related to COVID-19 related border restrictions also had a minor impact. This was partially offset by strong mine performance and optimisation of Yandi's end-of-life ramp-down. South Flank ramp up continues, with additional temporary crushing capacity to provide an ore for rail buffer during commissioning. Ramp up to full production capacity of 80 Mtpa (100 per cent basis) over three years remains unchanged.

On 7 September 2021, BHP received regulatory approval to increase capacity at our Port Hedland operations to 330 Mtpa (100 per cent basis), subject to the outcomes of standard appeals processes. Our near-term focus remains on sustainable achievement of 290 Mtpa, with plans to creep beyond this through productivity in the medium term. To support this on the 13 October 2021, the Board approved a port debottlenecking program which is expected to commence in the December 2021 quarter.

Samarco production was 1.0 Mt following the recommencement of iron ore pellet production at one concentrator in December 2020. Guidance of between 3 and 4 Mt (BHP share) remains unchanged for the 2022 financial year.

6

Coal

Production

 
                                       Sep Q21     Sep Q21 
                                          vs          vs 
                            Sep Q21     Sep Q20     Jun Q21 
                          ---------  ----------  ---------- 
Metallurgical coal (kt)       8,850        (9%)       (25%) 
Energy coal (kt)              4,238         17%        (6%) 
 

Metallurgical coal - Metallurgical coal production decreased by nine per cent to 9 Mt (16 Mt on a 100 per cent basis). Guidance for the 2022 financial year remains unchanged at between 39 and 44 Mt (70 and 78 Mt on a 100 per cent basis), with volumes weighted to the second half of the year following planned maintenance in the September 2021 quarter.

Queensland Coal production decreased as a result of planned wash plant maintenance at Goonyella and Peak Downs, planned dragline maintenance at Caval Ridge and mining in higher strip ratio areas at Poitrel in line with the mine plan. This was partially offset by record stripping at BMC and a significant uplift in truck productivity at South Walker Creek.

Energy coal - Energy coal production increased by 17 per cent to 4 Mt. Guidance for the 2022 financial year remains unchanged at between 13 and 15 Mt. Following our announcement to divest our interest in Cerrejón in June 2021, Cerrejón volumes are no longer included in energy coal guidance and will be reported separately until transaction completion, which is expected to occur in the second half of the 2022 financial year.

NSWEC production increased as a result of increased stripping volumes enabled by improved truck productivity and reduced wet weather impacts. The shiploader at the Newcastle port, which was damaged in November 2020, is now back in operation and operating at full design capacity.

Other

Nickel production

 
                           Sep Q21     Sep Q21 
                              vs          vs 
                Sep Q21     Sep Q20     Jun Q21 
              ---------  ----------  ---------- 
Nickel (kt)        17.8       (20%)       (21%) 
 

Nickel - Nickel West production decreased by 20 per cent to 18 kt, reflecting planned maintenance at the Kalgoorlie Smelter, Kwinana Refinery and the Leinster and Kambalda concentrators in the September 2021 quarter. Guidance for the 2022 financial year remains unchanged at between 85 and 95 kt. The first batch of nickel sulphate crystals were produced in the September 2021 quarter and customer certification is underway. We expect first saleable production in the December 2021 quarter.

Potash - In August 2021, we announced the approval of capital expenditure of US$5.7 billion (C$7.5 billion) for the Jansen Stage 1 project. Construction is expected to take approximately six years, followed by a ramp up period of two years, with first production expected in the 2027 calendar year.

7

A separate US$2.97 billion scope of work for construction of two shafts and associated infrastructure at the site is 96% complete and is expected to be complete in the 2022 calendar year.

Projects

 
                 Capital       Initial 
                expenditure   production 
Project and        US$M         target 
 ownership                       date     Capacity                         Progress 
-------------  ------------  -----------  -------------------------------  --------------------- 
Jansen Potash         2,972         CY27  Investment to finish the         The project is 
                                           excavation and lining of         96% complete. Target 
                                           the production and service       project completion 
                                           shafts, and to continue          in CY22. 
                                           the installation of essential 
                                           surface infrastructure 
                                           and utilities. 
  (Canada) 
  100% 
Jansen Stage          5,723         CY27  Design, engineering and          Approved in August 
 1                                         construction of an underground   2021. 
                                           potash mine and surface 
                                           infrastructure, with capacity 
                                           to produce 4.35 Mtpa. 
  (Canada) 
  100% 
 

Minerals exploration

Minerals exploration expenditure for the September 2021 quarter was US$56 million, of which US$42 million was expensed. We have continued to add to our early stage options in future facing commodities. Greenfield minerals exploration is being undertaken on advancing copper targets in Chile, Ecuador, Colombia, Mexico, Peru, Canada, Australia and the south-west United States. Nickel targets are also being advanced in Canada and Australia. Specifically in copper, we are undertaking target drilling in Chile, Ecuador and the United States, while further drilling is planned in the 2022 financial year in Australia and Mexico.

On 14 October 2021, BHP exercised its option to form an exploration joint venture with Red Tiger Resources for the Intercept Hill copper project, which borders Oak Dam in South Australia. BHP's joint venture interest commences at 65 per cent with the option to earn a further 10 per cent over the next three years. This follows BHP's completion of Stage 1 of an exploration farm-in agreement with Red Tiger Resources, announced on 31 October 2018.

In October 2021, BHP also executed its farm-in agreement for the early-stage prospective Elliott copper project in the Northern Territory, Australia. On execution of the agreement, the area of tenements covered had increased by approximately 40 per cent since September 2020, up to 7,200 km(2) . Under the terms of the agreement, BHP can earn up to 75 per cent interest in Elliott by spending up to A$25 million over 10 years.

At Oak Dam in South Australia, BHP is continuing next stage resource definition drilling, after commencing the program in May 2021.

In nickel, additional to our Support Agreement with Noront Resources (Noront) to make an all-cash takeover offer for Noront, our Midland Exploration partners are progressing work towards drill-targets in northern Quebec for nickel sulphides.

8

Variance analysis relates to the relative performance of BHP and/or its operations during the 2022 financial year compared with the 2021 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) 2022 financial year unit cost guidance: Petroleum US$11-12/boe, Escondida US$1.20-1.40/lb, WAIO US$17.50-18.50/t, Queensland Coal US$80-90/t and NSWEC US$62-70/t; based on exchange rates of AUD/USD 0.78 and USD/CLP 727.

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 30 'Subsidiaries' in section 3.1 of BHP's 30 June 2021 Annual Report and Form 20-F. Those terms do not include non-operated assets. Notwithstanding that this release may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise. Our non-operated assets include Antamina, Cerrejón, Samarco, Atlantis, Mad Dog, Bass Strait and North West Shelf. BHP Group cautions against undue reliance on any forward-looking statement or guidance in this release, particularly in light of the current economic climate and significant volatility, uncertainty and disruption arising in connection with COVID-19. These forward looking statements are based on information available as at the date of this release and are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this release.

9

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

Authorised for lodgement by:

Stephanie Wilkinson

Group Company Secretary

 
Media Relations                    Investor Relations 
 
 Email: media.relations@bhp.com     Email: investor.relations@bhp.com 
 
Australia and Asia                 Australia and Asia 
 
 Gabrielle Notley                   Dinesh Bishop 
 Tel: +61 3 9609 3830 Mobile:       Mobile: +61 407 033 909 
 +61 411 071 715 
                                    Europe, Middle East and Africa 
 Europe, Middle East and Africa 
                                    James Bell 
 Neil Burrows                       Tel: +44 20 7802 7144 Mobile: 
 Tel: +44 20 7802 7484 Mobile:      +44 7961 636 432 
 +44 7786 661 683 
                                    Americas 
 Americas 
                                    Brian Massey 
 Judy Dane                          Tel: +1 713 296 7919 Mobile: 
 Tel: +1 713 961 8283 Mobile:       +1 832 870 7677 
 +1 713 299 5342 
 
 
BHP Group Limited ABN 49 004          BHP Group plc Registration 
 028 077                               number 3196209 
 LEI WZE1WSENV6JSZFK0JC28              LEI 549300C116EOWV835768 
 Registered in Australia               Registered in England and Wales 
 Registered Office: Level 18,          Registered Office: Nova South, 
 171 Collins Street                    160 Victoria Street 
 Melbourne Victoria 3000 Australia     London SW1E 5LB United Kingdom 
 Tel +61 1300 55 4757 Fax +61          Tel +44 20 7802 4000 Fax +44 
 3 9609 3015                           20 7802 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       Sep      Dec      Mar      Jun      Sep      Sep      Sep 
                            interest    2020     2020     2021     2021     2021     2021     2020 
                          ----------  -------  -------  -------  -------  -------  -------  ------- 
 Petroleum (1) 
 Petroleum 
 Production 
 Crude oil, condensate 
 and NGL (Mboe)                        11,507   10,729   11,601   12,205   12,751   12,751   11,507 
 Natural gas (bcf)                       90.9     78.5     82.6     88.6     88.4     88.4     90.9 
 
 Total (Mboe)                          26,657   23,812   25,368   26,972   27,484   27,484   26,657 
 
 
 Copper (2) 
 Copper 
 Payable metal in 
  concentrate (kt) 
 Escondida (3)               57.5%      236.7    236.7    202.7    195.6    194.7    194.7    236.7 
 Pampa Norte (4)            100.0%          -      0.7      5.6     21.1     26.4     26.4        - 
 Antamina                    33.8%       34.6     38.6     34.7     36.1     35.8     35.8     34.6 
 
 Total                                  271.3    276.0    243.0    252.8    256.9    256.9    271.3 
 
 
 Cathode (kt) 
 Escondida (3)               57.5%       47.9     50.9     46.6     51.1     49.0     49.0     47.9 
 Pampa Norte (4)             100%        42.5     53.6     46.4     48.3     41.1     41.1     42.5 
 Olympic Dam                 100%        51.5     47.6     55.4     50.8     29.5     29.5     51.5 
 
 Total                                  141.9    152.1    148.4    150.2    119.6    119.6    141.9 
 
 
 
 Total copper (kt)                      413.2    428.1    391.4    403.0    376.5    376.5    413.2 
 
 
 Lead 
 Payable metal in 
  concentrate (t) 
 Antamina                    33.8%        690      993      468      381      378      378      690 
 
 Total                                    690      993      468      381      378      378      690 
 
 
 Zinc 
 Payable metal in 
  concentrate (t) 
 Antamina                    33.8%     34,398   41,909   33,299   35,483   33,289   33,289   34,398 
 
 Total                                 34,398   41,909   33,299   35,483   33,289   33,289   34,398 
 
 
 Gold 
 Payable metal in concentrate 
  (troy oz) 
 Escondida (3)               57.5%     42,332   47,789   37,954   38,893   41,962   41,962   42,332 
 Pampa Norte (4)             100%           -        -        -    4,728    6,967    6,967        - 
 Olympic Dam (refined 
  gold)                      100%      36,608   23,837   37,075   48,478   26,277   26,277   36,608 
 
 Total                                 78,940   71,626   75,029   92,099   75,206   75,206   78,940 
 
 
 Silver 
 Payable metal in concentrate 
  (troy koz) 
 Escondida (3)               57.5%      1,580    1,627    1,318    1,234    1,291    1,291    1,580 
 Pampa Norte (4)             100%           -        -        -      214      273      273        - 
 Antamina                    33.8%      1,326    1,767    1,463    1,409    1,367    1,367    1,326 
 Olympic Dam (refined 
  silver)                    100%         157      193      275      185      191      191      157 
 
 Total                                  3,063    3,587    3,056    3,042    3,122    3,122    3,063 
 
 
 

11

Production summary

 
                                                                                      Year to 
                                                   Quarter ended                        date 
                                    -------------------------------------------  ---------------- 
                            BHP       Sep      Dec      Mar      Jun      Sep      Sep      Sep 
                          interest    2020     2020     2021     2021     2021     2021     2020 
                        ----------  -------  -------  -------  -------  -------  -------  ------- 
 Uranium 
 Payable metal in 
  concentrate (t) 
 Olympic Dam               100%         874      945      834      614      531      531      874 
 
 Total                                  874      945      834      614      531      531      874 
 
 
 Molybdenum 
 Payable metal in 
  concentrate (t) 
 Pampa Norte (4)           100%           -        -        -        -        -        -        - 
 Antamina                  33.8%        284      192      276      111      142      142      284 
 
 Total                                  284      192      276      111      142      142      284 
 
 
 
 Iron Ore 
 Iron Ore 
 Production (kt) 
  (5) 
 Newman                     85%      16,410   17,637   14,614   14,560   16,461   16,461   16,410 
 Area C Joint Venture       85%      11,889   11,567   13,010   15,920   18,947   18,947   11,889 
 Yandi Joint Venture        85%      17,666   16,413   16,112   18,405   11,834   11,834   17,666 
 Jimblebar (6)              85%      20,075   16,740   15,241   15,337   15,009   15,009   20,075 
 Samarco                    50%           -       37      878    1,023    1,048    1,048        - 
 
 Total                               66,040   62,394   59,855   65,245   63,299   63,299   66,040 
 
 
 Coal 
 Metallurgical coal 
 Production (kt) 
  (7) 
 BMA                        50%       7,365    7,539    7,727    9,253    6,715    6,715    7,365 
 BHP Mitsui Coal 
  (8)                       80%       2,325    1,983    1,863    2,570    2,135    2,135    2,325 
 
 Total                                9,690    9,522    9,590   11,823    8,850    8,850    9,690 
 
 
 Energy coal 
 Production (kt) 
 NSW Energy Coal           100%       3,624    3,229    2,981    4,492    4,238    4,238    3,624 
 
 Total                                3,624    3,229    2,981    4,492    4,238    4,238    3,624 
 
 
 Other 
 Nickel 
 Saleable production 
  (kt) 
 Nickel West               100%        22.2     24.0     20.4     22.4     17.8     17.8     22.2 
 
 Total                                 22.2     24.0     20.4     22.4     17.8     17.8     22.2 
 
 
 Cobalt 
 Saleable production 
  (t) 
 Nickel West               100%         238      236      273      241      177      177      238 
 
 Total                                  238      236      273      241      177      177      238 
 
 
 Assets held for 
  sale (9) 
 Energy coal 
 Production (kt) 
 Cerrejón             33.3%      1,038      347    1,795    1,784    2,060    2,060    1,038 
 
 Total                                1,038      347    1,795    1,784    2,060    2,060    1,038 
 
 

12

(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) Cerrejón volumes will be reported separately from 1 July 2021 until transaction completion.

Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.

13

Production and sales report

 
                                                                                        Year to 
                                                     Quarter ended                        date 
                                      -------------------------------------------  ---------------- 
                                        Sep      Dec      Mar      Jun      Sep      Sep      Sep 
                                        2020     2020     2021     2021     2021     2021     2020 
                                      -------  -------  -------  -------  -------  -------  ------- 
 
 Petroleum (1) 
 
 Bass Strait 
 Crude oil and condensate    (Mboe)     1,305    1,003      859    1,205    1,201    1,201    1,305 
 NGL                         (Mboe)     1,660    1,057    1,035    1,563    1,655    1,655    1,660 
 Natural gas                 (bcf)       34.1     23.4     22.7     32.8     35.8     35.8     34.1 
 
 Total petroleum products    (Mboe)     8,648    5,960    5,677    8,235    8,823    8,823    8,648 
 
 
 North West Shelf 
 Crude oil and condensate    (Mboe)     1,215    1,180    1,183      933      973      973    1,215 
 NGL                         (Mboe)       162      165      188      177      148      148      162 
 Natural gas                 (bcf)       29.6     30.4     31.1     26.5     24.3     24.3     29.6 
 
 Total petroleum products    (Mboe)     6,310    6,412    6,554    5,527    5,171    5,171    6,310 
 
 
 Pyrenees 
 Crude oil and condensate    (Mboe)       837      826      679      690      710      710      837 
 
 Total petroleum products    (Mboe)       837      826      679      690      710      710      837 
 
 
 Macedon (2) 
 Crude oil and condensate    (Mboe)         1        1        1        -        1        1        1 
 Natural gas                 (bcf)       12.7     12.6     12.4     12.6     12.7     12.7     12.7 
 
 Total petroleum products    (Mboe)     2,118    2,101    2,068    2,100    2,118    2,118    2,118 
 
 
 Atlantis (3) 
 Crude oil and condensate    (Mboe)     2,421    2,385    2,590    3,117    3,171    3,171    2,421 
 NGL                         (Mboe)       154      147      171      218      222      222      154 
 Natural gas                 (bcf)        1.2      1.1      1.4      1.6      1.7      1.7      1.2 
 
 Total petroleum products    (Mboe)     2,775    2,715    2,994    3,602    3,676    3,676    2,775 
 
 
 Mad Dog (3) 
 Crude oil and condensate    (Mboe)     1,211      930    1,209    1,099    1,155    1,155    1,211 
 NGL                         (Mboe)        48       38       57       77       46       46       48 
 Natural gas                 (bcf)        0.2      0.1      0.2      0.2      0.2      0.2      0.2 
 
 Total petroleum products    (Mboe)     1,292      985    1,299    1,209    1,234    1,234    1,292 
 
 
 Shenzi (3) (4) 
 Crude oil and condensate    (Mboe)     1,395    1,764    2,328    2,023    2,016    2,016    1,395 
 NGL                         (Mboe)        71       87      130       87      102      102       71 
 Natural gas                 (bcf)        0.3      0.3      0.4      0.1      0.4      0.4      0.3 
 
 Total petroleum products    (Mboe)     1,516    1,901    2,525    2,127    2,185    2,185    1,516 
 
 
 Trinidad/Tobago 
 Crude oil and condensate    (Mboe)       102       96      139      236      491      491      102 
 Natural gas                 (bcf)       12.8     10.5     14.4     14.7     13.3     13.3     12.8 
 
 Total petroleum products    (Mboe)     2,235    1,846    2,539    2,686    2,708    2,708    2,235 
 
 
 Other Americas (3) 
  (5) 
 Crude oil and condensate    (Mboe)       212      190      187      104       83       83      212 
 NGL                         (Mboe)         2       11        -        8        3        3        2 
 Natural gas                 (bcf)          -      0.1        -      0.1        -        -        - 
 
 Total petroleum products    (Mboe)       214      218      187      129       86       86      214 
 
 
 Algeria 
 Crude oil and condensate    (Mboe)       711      849      845      668      774      774      711 
 
 Total petroleum products    (Mboe)       711      849      845      668      774      774      711 
 
 

14

Production and sales report

 
                                                                                             Year to 
                                                       Quarter ended                           date 
                                      -----------------------------------------------  ------------------ 
                                         Sep       Dec       Mar       Jun      Sep       Sep       Sep 
                                         2020      2020      2021      2021     2021      2021      2020 
                                      --------  --------  --------  --------  -------  --------  -------- 
 
 Petroleum (1) 
 
 Total production 
 Crude oil and condensate    (Mboe)      9,410     9,224    10,020    10,075   10,575    10,575     9,410 
 NGL                         (Mboe)      2,097     1,505     1,581     2,130    2,176     2,176     2,097 
 Natural gas                 (bcf)        90.9      78.5      82.6      88.6     88.4      88.4      90.9 
 
 Total                       (Mboe)     26,657    23,812    25,368    26,972   27,484    27,484    26,657 
 
 

(1) Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe. Negative production figures represent finalisation adjustments.

   (2)      Previously reported as 'Other Australia'. No change to reported numbers. 
   (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. 

15

Production and sales report

 
                                                     Quarter ended                              Year to date 
                               -------------------------------------------------------  -------------------------- 
                                   Sep        Dec        Mar        Jun         Sep           Sep           Sep 
                                   2020       2020       2021       2021        2021          2021          2020 
                               ---------  ---------  ---------  ----------  ----------  --------------  ---------- 
Copper 
Metals production is payable metal 
 unless otherwise stated. 
 
Escondida, Chile 
 (1) 
  Material mined       (kt)       83,357     97,274     95,978     104,043     113,874         113,874    83,357 
  Concentrator 
   throughput 
   (2)                 (kt)       34,733     36,303     32,654      31,903      33,528          33,528    34,733 
  Average copper 
   grade 
   - concentrator (3)  (%)         0.85%      0.83%      0.78%       0.77%       0.73%           0.73%     0.85% 
  Production ex mill   (kt)        243.9      246.1      207.8       202.8       201.2           201.2     243.9 
 
Production 
  Payable copper       (kt)        236.7      236.7      202.7       195.6       194.7           194.7     236.7 
  Copper cathode (EW)  (kt)         47.9       50.9       46.6        51.1        49.0            49.0      47.9 
   - Oxide leach       (kt)         15.3       18.0       16.1        14.5        14.8            14.8      15.3 
   - Sulphide leach    (kt)         32.6       32.9       30.5        36.6        34.2            34.2      32.6 
 
  Total copper         (kt)        284.6      287.6      249.3       246.7       243.7           243.7     284.6 
 
  Payable gold         (troy 
   concentrate          oz)       42,332     47,789     37,954      38,893      41,962          41,962    42,332 
  Payable silver       (troy 
   concentrate          koz)       1,580      1,627      1,318       1,234       1,291           1,291     1,580 
 
Sales 
  Payable copper       (kt)        237.1      244.3      196.9       194.1       190.5           190.5     237.1 
  Copper cathode (EW)  (kt)         46.5       47.7       49.6        49.6        46.7            46.7      46.5 
  Payable gold         (troy 
   concentrate          oz)       42,332     47,789     37,954      38,893      41,962          41,962    42,332 
  Payable silver       (troy 
   concentrate          koz)       1,580      1,627      1,318       1,234       1,291           1,291     1,580 
 
 

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

(2) Previously reported as 'Sulphide ore milled'. No change to reported numbers.

(3) Previously reported as 'Average concentrator head grade'. No change to reported numbers.

16

Production and sales report

 
                                                         Quarter ended                      Year to date 
                                       -----------------------------------------------  ------------------- 
                                          Sep      Dec      Mar       Jun        Sep       Sep        Sep 
                                          2020     2020     2021      2021       2021      2021       2020 
                                       -------  -------  -------  ----------  --------  --------  --------- 
Copper (continued) 
Metals production is payable metal unless otherwise 
 stated. 
 
Pampa Norte, Chile 
  Cerro Colorado 
  Material mined               (kt)     12,618    6,750    6,153       5,498     5,378     5,378   12,618 
  Ore stacked (1)              (kt)      4,036    3,562    3,283       3,702     3,566     3,566    4,036 
  Average copper grade 
   - stacked (2)               (%)       0.66%    0.58%    0.58%       0.58%     0.60%     0.60%    0.66% 
 
  Production 
  Copper cathode (EW)          (kt)       15.8     15.8     13.9        14.7      13.4      13.4     15.8 
 
  Sales 
  Copper cathode (EW)          (kt)       14.6     16.6     13.2        15.4      12.1      12.1     14.6 
 
  Spence 
  Material mined               (kt)     18,260   18,485   19,195      21,262    21,154    21,154   18,260 
  Ore stacked (1)              (kt)      4,408    5,602    5,536       4,609     5,258     5,258    4,408 
  Average copper grade 
   - stacked (2)               (%)       1.10%    0.83%    0.64%       0.72%     0.64%     0.64%    1.10% 
  Concentrator throughput 
   (3)                         (kt)          -    1,207    2,471       4,929     5,786     5,786        - 
  Average copper grade 
   - concentrator (4)          (%)           -    0.43%    0.58%       0.63%     0.65%     0.65%        - 
 
  Production 
  Payable copper               (kt)          -      0.7      5.6        21.1      26.4      26.4        - 
  Copper cathode (EW)          (kt)       26.7     37.8     32.5        33.6      27.7      27.7     26.7 
 
  Total copper                 (kt)       26.7     38.5     38.1        54.7      54.1      54.1     26.7 
 
  Payable gold concentrate     (troy 
   (5)                          oz)          -        -        -       4,728     6,967     6,967        - 
  Payable silver concentrate   (troy 
   (5)                          koz)         -        -        -         214       273       273        - 
  Payable molybdenum 
   (6)                         (t)           -        -        -           -         -         -        - 
 
  Sales 
  Payable copper               (kt)          -        -      1.8        20.8      28.4      28.4        - 
  Copper cathode (EW)          (kt)       24.1     40.9     30.7        34.1      27.7      27.7     24.1 
  Payable gold concentrate     (troy 
   (5)                          oz)          -        -        -     4,728.0     6,967     6,967        - 
  Payable silver concentrate   (troy 
   (5)                          koz)         -        -        -       214.0       273       273        - 
  Payable molybdenum 
   (6)                         (t)           -        -        -           -         -         -        - 
 
 

(1) Previously reported as 'Ore milled'. No change to reported numbers.

(2) Previously reported as 'Average copper grade'. No change to reported numbers.

(3) New line reflecting ore processed through the concentrator.

(4) New line reflecting the amount of copper contained in the ore processed through the concentrator.

(5) New line reflecting payable metal contained in the copper concentrate.

(6) New line reflecting payable molybdenum contained in the molybdenum concentrate. No saleable production in the September 2021 quarter.

17

Production and sales report

 
                                                  Quarter ended                    Year to date 
                                  -------------------------------------------  ------------------- 
                                     Sep      Dec      Mar      Jun      Sep      Sep       Sep 
                                     2020     2020     2021     2021     2021     2021      2020 
                                  -------  -------  -------  -------  -------  -------  ---------- 
Copper (continued) 
Metals production is payable metal unless otherwise 
 stated. 
 
Antamina, Peru 
Material mined (100%)     (kt)     45,458   57,029   53,762   63,393   66,581   66,581    45,458 
Concentrator throughput 
 (100%) (1)               (kt)     13,202   14,083   12,651   13,466   13,219   13,219    13,202 
Average head grades 
 - Copper                 (%)       0.94%    0.97%    0.94%    0.93%    0.97%    0.97%     0.94% 
 - Zinc                   (%)       1.30%    1.30%    1.16%    1.24%    1.16%    1.16%     1.30% 
 
Production 
Payable copper            (kt)       34.6     38.6     34.7     36.1     35.8     35.8      34.6 
Payable zinc              (t)      34,398   41,909   33,299   35,483   33,289   33,289    34,398 
                          (troy 
Payable silver             koz)     1,326    1,767    1,463    1,409    1,367    1,367     1,326 
Payable lead              (t)         690      993      468      381      378      378       690 
Payable molybdenum        (t)         284      192      276      111      142      142       284 
 
Sales 
Payable copper            (kt)       33.8     40.7     31.7     37.3     32.7     32.7      33.8 
Payable zinc              (t)      32,769   45,109   34,141   32,044   32,635   32,635    32,769 
                          (troy 
Payable silver             koz)     1,310    1,728    1,342    1,540    1,103    1,103     1,310 
Payable lead              (t)         748      945      689      556      232      232       748 
Payable molybdenum        (t)         392      352      192      268       86       86       392 
 
 
   (1)   Previously reported as 'Sulphide ore milled (100%)'. No change to reported numbers. 

18

Production and sales report

 
                                                    Quarter ended                     Year to date 
                                   ---------------------------------------------  ------------------ 
                                      Sep       Dec      Mar      Jun      Sep       Sep       Sep 
                                      2020      2020     2021     2021     2021      2021      2020 
                                   --------  -------  -------  -------  --------  -------  --------- 
Olympic Dam, Australia 
Material mined (1)        (kt)        2,203    2,379    1,979    2,143     1,935    1,935    2,203 
Ore Milled                (kt)        2,443    2,377    2,238    2,429     2,024    2,024    2,443 
Average copper grade      (%)         2.03%    2.01%    2.02%    1.95%     2.03%    2.03%    2.03% 
Average uranium grade     (kg/t)       0.53     0.60     0.61     0.56      0.55     0.55     0.53 
 
Production 
Copper cathode (ER 
 and EW)                  (kt)         51.5     47.6     55.4     50.8      29.5     29.5     51.5 
Payable uranium           (t)           874      945      834      614       531      531      874 
                          (troy 
Refined gold               oz)       36,608   23,837   37,075   48,478    26,277   26,277   36,608 
                          (troy 
Refined silver             koz)         157      193      275      185       191      191      157 
 
Sales 
Copper cathode (ER 
 and EW)                  (kt)         49.5     46.6     55.6     52.7      29.1     29.1     49.5 
Payable uranium           (t)           859      999      779    1,179       536      536      859 
                          (troy 
Refined gold               oz)       36,054   21,390   38,852   47,300    24,654   24,654   36,054 
                          (troy 
Refined silver             koz)         222      165      242      245       126      126      222 
 
 
   (1)   Material mined refers to underground ore mined, subsequently hoisted or trucked to surface. 

19

Production and sales report

 
                                                    Quarter ended                          Year to date 
                                ----------------------------------------------------  --------------------- 
                                    Sep        Dec       Mar        Jun        Sep        Sep        Sep 
                                    2020       2020      2021       2021       2021       2021       2020 
                                ---------  ---------  --------  ---------  ---------  ---------  ---------- 
Iron Ore 
Iron ore production and sales are reported on a wet tonnes basis. 
 
Western Australia 
 Iron Ore, Australia 
  Production 
  Newman                 (kt)      16,410     17,637    14,614     14,560     16,461     16,461    16,410 
  Area C Joint Venture   (kt)      11,889     11,567    13,010     15,920     18,947     18,947    11,889 
  Yandi Joint Venture    (kt)      17,666     16,413    16,112     18,405     11,834     11,834    17,666 
  Jimblebar (1)          (kt)      20,075     16,740    15,241     15,337     15,009     15,009    20,075 
 
  Total production       (kt)      66,040     62,357    58,977     64,222     62,251     62,251    66,040 
 
  Total production 
   (100%)                (kt)      74,152     70,407    66,695     72,848     70,587     70,587    74,152 
 
 
  Sales 
  Lump                   (kt)      17,056     16,703    15,593     16,410     17,546     17,546    17,056 
  Fines                  (kt)      48,390     46,124    42,939     48,837     45,039     45,039    48,390 
 
  Total                  (kt)      65,446     62,827    58,532     65,247     62,585     62,585    65,446 
 
  Total sales (100%)     (kt)      73,355     70,772    66,032     73,712     70,815     70,815    73,355 
 
 
 
   (1)   Shown on a 100% basis. BHP interest in saleable production is 85%. 
 
Samarco, Brazil (1) 
   Production   (kt)     -   37   878   1,023   1,048   1,048   - 
   Sales        (kt)     -    -   646   1,052   1,111   1,111   - 
 

(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.

20

Production and sales report

 
                                                  Quarter ended                                     Year to date 
                       ------------------------------------------------------------------  ---------------------------- 
                            Sep           Dec          Mar          Jun           Sep           Sep            Sep 
                            2020          2020         2021         2021          2021          2021           2020 
                       ------------  -----------  -----------  -----------  -------------  ------------  -------------- 
Coal 
Coal production is reported on the basis of saleable product. 
 
Queensland 
Coal, 
Australia 
Production (1) 
  BMA 
  Blackwater    (kt)          1,184        1,737        1,416        1,887          1,403         1,403         1,184 
  Goonyella     (kt)          2,312        2,152        2,232        2,752          1,798         1,798         2,312 
  Peak Downs    (kt)          1,487        1,213        1,595        1,597          1,223         1,223         1,487 
  Saraji        (kt)            817        1,043        1,238        1,391            999           999           817 
  Daunia        (kt)            490          464          496          478            377           377           490 
  Caval Ridge   (kt)          1,075          930          750        1,148            915           915         1,075 
 
  Total BMA     (kt)          7,365        7,539        7,727        9,253          6,715         6,715         7,365 
 
  Total BMA 
   (100%)       (kt)         14,730       15,078       15,454       18,506         13,430        13,430        14,730 
 
 
BHP Mitsui 
Coal (2) 
  South Walker 
   Creek        (kt)          1,238        1,118        1,031        1,500          1,462         1,462         1,238 
  Poitrel       (kt)          1,087          865          832        1,070            673           673         1,087 
 
  Total BHP 
   Mitsui Coal  (kt)          2,325        1,983        1,863        2,570          2,135         2,135         2,325 
 
 
 
  Total 
   Queensland 
   Coal         (kt)          9,690        9,522        9,590       11,823          8,850         8,850         9,690 
 
  Total 
   Queensland 
   Coal 
   (100%)       (kt)         17,055       17,061       17,317       21,076         15,565        15,565        17,055 
 
 
Sales 
BMA 
  Coking coal   (kt)          6,187        6,531        6,752        7,801          5,415         5,415         6,187 
  Weak coking 
   coal         (kt)            977          936        1,038        1,069            734           734           977 
  Thermal coal  (kt)             58            3          206          400            576           576            58 
 
  Total BMA     (kt)          7,222        7,470        7,996        9,270          6,725         6,725         7,222 
 
  Total BMA 
   (100%)       (kt)         14,444       14,940       15,992       18,540         13,450        13,450        14,444 
 
 
BHP Mitsui 
Coal (2) 
  Coking coal   (kt)            671          604          357          535            313           313           671 
  Weak coking 
   coal         (kt)          1,545        1,518        1,404        2,027          1,788         1,788         1,545 
 
  Total BHP 
   Mitsui Coal  (kt)          2,216        2,122        1,761        2,562          2,101         2,101         2,216 
 
 
 
  Total 
   Queensland 
   Coal         (kt)          9,438        9,592        9,757       11,832          8,826         8,826         9,438 
 
  Total 
   Queensland 
   Coal 
   (100%)       (kt)         16,660       17,062       17,753       21,102         15,551        15,551        16,660 
 
 
   (1)    Production figures include some thermal coal. 
   (2)    Shown on a 100% basis. BHP interest in saleable production is 80%. 
 
NSW Energy Coal, 
Australia 
  Production         (kt)         3,624        3,229        2,981        4,492         4,238        4,238        3,624 
  Sales thermal 
   coal 
   - export          (kt)         3,168        3,940        2,827        4,691         3,780        3,780        3,168 
 

21

Production and sales report

 
                                                     Quarter ended                   Year to date 
                                     -------------------------------------------  ---------------- 
                                        Sep      Dec      Mar      Jun      Sep      Sep      Sep 
                                        2020     2020     2021     2021     2021     2021     2020 
                                     -------  -------  -------  -------  -------  -------  ------- 
Other 
Nickel production is reported on the basis of saleable product 
 
Nickel West, Australia 
   Mt Keith 
   Nickel concentrate         (kt)      64.4     55.7     54.1     50.4     53.7     53.7     64.4 
   Average nickel grade       (%)       15.8     14.7     13.3     13.3     14.6     14.6     15.8 
 
   Leinster 
   Nickel concentrate         (kt)      66.2     72.8     71.5     71.4     73.8     73.8     66.2 
   Average nickel grade       (%)        9.0      9.5     10.2     10.5      8.9      8.9      9.0 
 
   Saleable production 
   Refined nickel (1)         (kt)      17.3     20.4     15.2     17.1     14.4     14.4     17.3 
   Nickel sulphate (2)        (kt)         -        -        -        -        -        -        - 
   Intermediates and nickel 
    by-products (3)           (kt)       4.9      3.6      5.2      5.3      3.4      3.4      4.9 
 
   Total nickel               (kt)      22.2     24.0     20.4     22.4     17.8     17.8     22.2 
 
 
   Cobalt by-products         (t)        238      236      273      241      177      177      238 
 
   Sales 
   Refined nickel (1)         (kt)      17.1     20.9     15.0     17.8     13.8     13.8     17.1 
   Nickel sulphate (2)        (kt)         -        -        -        -        -        -        - 
   Intermediates and nickel 
    by-products (3)           (kt)       4.6      2.6      5.9      4.0      3.9      3.9      4.6 
 
   Total nickel               (kt)      21.7     23.5     20.9     21.8     17.7     17.7     21.7 
 
 
   Cobalt by-products         (t)        238      237      273      241      177      177      238 
 
 
 

(1) High quality refined nickel metal, including briquettes and powder.

(2) New line for nickel sulphate product. No saleable production in the September 2021 quarter.

(3) Nickel contained in matte and by-product streams.

 
Assets held for sale (1) 
Coal production is reported on the basis of saleable product. 
 
Cerrejón, Colombia 
   Production             (kt)    1,038   347   1,795   1,784   2,060    2,060   1,038 
   Sales thermal coal - 
    export                (kt)      994   370   1,746   1,619   2,180    2,180     994 
 

(1) Cerrejón volumes will be reported separately from 1 July 2021 until transaction completion.

22

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DRLFFAEFAEFSESS

(END) Dow Jones Newswires

October 19, 2021 02:00 ET (06:00 GMT)

Bhp (LSE:BHP)
Historical Stock Chart
From Nov 2021 to Dec 2021 Click Here for more Bhp Charts.
Bhp (LSE:BHP)
Historical Stock Chart
From Dec 2020 to Dec 2021 Click Here for more Bhp Charts.