TIDMBHP

RNS Number : 8244I

BHP Group Limited

21 April 2022

 
Release Time     IMMEDIATE 
Date             21 April 2022 
Release Number   12/22 
 

BHP OPERATIONAL REVIEW

FOR THE NINE MONTHSED 31 MARCH 2022

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

-- We continue to deliver safe, reliable production and navigate the COVID-19 challenges as the pandemic evolves.

-- Production guidance for the 2022 financial year remains unchanged for iron ore, metallurgical coal and energy coal. Full year total copper production guidance has been lowered to between 1,570 and 1,620 kt, reflecting lowered production guidance for Escondida. Full year nickel production guidance has been lowered to between 80 and 85 kt due to COVID-19 related labour constraints.

-- Full year unit cost guidance(1) for Western Australia Iron Ore (WAIO), Escondida and Queensland Coal remains unchanged. Full year unit cost guidance for New South Wales Energy Coal (NSWEC) has been increased to between US$76 and US$81 per tonne, reflecting a targeted increase in the proportion of higher quality coal to capture more value from the record high prices for higher quality thermal coal.

-- Our potash major projects under development are tracking to plan. The Jansen shaft project is 99% complete while Jansen Stage 1 activities continue to progress at the port, the Jansen site and for the underground mining systems.

-- The divestment of BHP's interest in BHP Mitsui Coal (BMC) to Stanmore Resources Limited is expected to complete on 3 May 2022.

-- Completion of the proposed merger of BHP's oil and gas portfolio with Woodside Petroleum Ltd is targeted for 1 June 2022, subject to the satisfaction of conditions precedent including approval by Woodside shareholders at the Woodside general meeting on 19 May 2022.

1

 
                Mar YTD22  Mar Q22 
                 (vs Mar    (vs Dec 
Production        YTD21)      Q21)    Mar Q22 vs Dec Q21 commentary 
--------------  ---------  --------  --------------------------------------- 
                                     Higher volumes at Olympic Dam 
                                      following completion of the planned 
                                      smelter maintenance campaign. 
                                      This was partially offset by lower 
                                      volumes at Escondida mainly due 
                                      to COVID-19 workforce impacts 
                                      and public road blockades as a 
Copper (kt)       1,111.7     369.7   result of social unrest. 
                    (10%)        1% 
                                     Lower volumes at WAIO reflecting 
                                      temporary labour constraints due 
                                      to COVID-19, train driver shortages 
                                      and planned maintenance activities. 
                                      This was partially offset by record 
                                      production from the MAC hub with 
                                      the continued ramp up of South 
Iron ore (Mt)       189.1      59.7   Flank . 
                       0%     (10%) 
                                     Increased volumes as a result 
                                      of lower rainfall than the prior 
                                      period coupled with strong operational 
Metallurgical                         performance driven by improved 
 coal (Mt)(2)        28.2      10.6   truck productivity. 
                     (2%)       20% 
                                     Lower volumes due to continued 
                                      wet weather and COVID-19 related 
                                      absenteeism impacting stripping 
                                      and mine productivity, as well 
Energy coal                           as an increased proportion of 
 (Mt)(3)              9.8       2.6   higher quality products. 
                     (1%)     (13%) 
                                     Lower volumes reflecting temporary 
                                      labour constraints due to COVID-19 
                                      related absenteeism and workforce 
Nickel (kt)          58.0      18.7   shortages. 
                    (13%)     (13%) 
Discontinued operations 
                                     Lower volumes due to reduced seasonal 
Petroleum                             gas demand at Bass Strait and 
 (MMboe)             77.3      24.1   lower well productivity at Atlantis. 
                       2%      (6%) 
 
 

Group copper equivalent production decreased by 3%(4) over the nine months ended 31 March 2022 mainly due to lower copper volumes.

2

Summary

BHP Chief Executive Officer, Mike Henry:

"BHP delivered safe and reliable production in the third quarter. Our WA iron ore business continues to perform strongly as we navigate the state's first major COVID-19 wave, and we remain on track to achieve full year volume and cost guidance. Amid record high prices, our Queensland metallurgical coal business delivered strong underlying performance and benefited from better weather in the quarter.

In copper, Spence production is increasing and the Olympic Dam smelter is performing strongly as it returns to full production following planned maintenance. These gains have been more than offset at Escondida by impacts from COVID-19 and public road blockades in Antofagasta, which are reflected in a revision to overall production guidance.

Our Jansen potash project is on track, with good progress on the shafts, in the underground mining systems and at the port. The merger of our petroleum assets with Woodside has progressed and is set for completion in June 2022, while the divestment of our BMC business to Stanmore should complete in May 2022.

Market volatility and inflationary pressures have increased further as a result of the Russian invasion of Ukraine. We continue our work to mitigate cost pressures through a sharp focus on operational reliability and cost discipline. While we expect conditions to improve during the course of the 2023 calendar year, we anticipate the skills shortages and overall labour market tightness in Australia and Chile to continue in the period ahead.

Our hearts go out to all those impacted by the tragic events in Ukraine. The BHP Foundation has donated US$5 million to aid the response to the humanitarian crisis. "

3

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.

 
                                            Mar YTD22  Mar Q22  Mar Q22 
                                                   vs       vs       vs                    Current 
                               Mar     Mar        Mar      Mar      Dec        Previous       FY22 
Production                   YTD22     Q22      YTD21      Q21      Q21   FY22 guidance   guidance 
------------------------  --------  ------  ---------  -------  -------  --------------  ---------  --------- 
                                                                                  1,590      1,570 
Copper (kt)                1,111.7   369.7      (10%)     (6%)       1%         - 1,760    - 1,620    Lowered 
                                                                                  1,020      1,000 
 Escondida (kt)              714.7   226.4      (13%)     (9%)     (7%)         - 1,080    - 1,030    Lowered 
                                                                                  260 -      260 - 
 Pampa Norte (kt)            204.0    68.2        37%      31%       0%             300        300  Unchanged 
                                                                                  140 -      140 -      Lower 
 Olympic Dam (kt)             82.7    39.0      (46%)    (30%)    >100%             150        150        end 
                                                                                  120 -      120 -      Upper 
 Antamina (kt)               110.3    36.1         2%       4%     (6%)             140        140        end 
                                                                                  249 -      249 - 
Iron ore (Mt)                189.1    59.7         0%       1%    (10%)             259        259 
                                                                                  246 -      246 - 
 WAIO (Mt)                   186.0    58.7       (1%)       0%    (10%)             255        255  Unchanged 
 WAIO (100% basis)                                                                278 -      278 - 
  (Mt)                       211.1    66.7         0%       0%    (10%)             288        288  Unchanged 
                                                                                                        Upper 
 Samarco (Mt)                  3.1     1.0      >100%      13%     (3%)           3 - 4      3 - 4        end 
Metallurgical coal 
 (Mt)(i)                      28.2    10.6       (2%)      10%      20%         38 - 41    38 - 41  Unchanged 
 BMA (Mt)                     21.0     7.9       (7%)       3%      26%               -    29 - 31 
 BHP Mitsui Coal 
  (100% basis) (Mt)            7.3     2.6        18%      41%       4%               -     9 - 10 
 Queensland Coal 
  (100% basis) (Mt)           49.2    18.5       (4%)       7%      22%         68 - 72    68 - 72  Unchanged 
Energy coal - NSWEC 
 (Mt)                          9.8     2.6       (1%)    (14%)    (13%)         13 - 15    13 - 15  Unchanged 
Nickel (kt)                   58.0    18.7      (13%)     (8%)    (13%)         85 - 95    80 - 85    Lowered 
Discontinued operations 
Petroleum (MMboe)(ii)         77.3    24.1         2%     (5%)     (6%)               -          - 
 

(i) Completion of the divestment of BMC is expected on 3 May 2022. Full year BMA and BMC production guidance has been itemised under Queensland Coal, however economic and operating control of BMC will transfer to Stanmore Resources Limited once the sale has completed .

(ii) Given our announcement of a binding share sale agreement for the proposed merger of BHP's oil and gas portfolio with Woodside in November 2021 with completion of the merger expected to occur on 1 June 2022, no further annual production guidance for Petroleum will be provided. The effective date of the merger is 1 July 2021.

4

Major development projects

At the end of March 2022, BHP had two major projects under development, the US$2.97 billion Jansen mine shafts project and the US$5.7 billion Jansen Stage 1 project. Our major projects under development are tracking to plan.

Corporate update

Portfolio

In February 2022, BHP advanced its early-stage copper interests by investing C$100 million to acquire a five per cent equity interest in Filo Mining, a Toronto Stock Exchange listed exploration and development company. Filo Mining owns the Filo del Sol project located in the Atacama Region of Chile and adjacent to the San Juan Province in Argentina, which is in the advanced exploration stage. The proceeds from BHP's investment will be used for exploration and project studies. Filo Mining and BHP have agreed to form a joint advisory committee to share expertise, exploration concepts, and discuss future project development options.

All conditions precedent under the Share Sale and Purchase Agreement for the divestment of BHP's 80 per cent interest in BMC to Stanmore Resources Limited have been satisfied , and completion is expected to occur on 3 May 2022. The purchase price comprises US$1.1 billion cash on completion, US$100 million in cash six months after completion and the potential for up to US$150 million in a commodity price-linked earnout payable in the 2024 calendar year.

Completion of the merger of BHP's oil and gas portfolio with Woodside is targeted for 1 June 2022, subject to satisfaction of conditions precedent including approval by Woodside shareholders at the Woodside general meeting on 19 May 2022. All required regulatory and competition approvals have been obtained, other than the National Offshore Petroleum Titles Administrator approval which is expected prior to completion. BHP is expected to receive 914,768,948 newly issued Woodside shares at completion and determine a fully franked in specie dividend of the Woodside shares to BHP shareholders. BHP shareholders are expected to be entitled to one Woodside share for every 5.5340 BHP shares they hold on the BHP register at the record date of 26 May 2022. Additional information on the proposed in specie dividend and share distribution can be found in our announcement on 8 April 2022.

Samarco

Samarco's Judicial Reorganisation process is continuing in the Commercial Courts of Belo Horizonte, State of Minas Gerais. The Judicial Reorganisation is a process for Samarco to restructure its financial debts in order to establish a sustainable independent financial position that would allow Samarco to continue its operations safely and meet its Renova Foundation obligations. BHP Brasil will continue to support Samarco in this process. The Judicial Reorganisation does not affect Samarco's obligation or commitment to make full redress for the 2015 Fundão dam failure, and it does not impact Renova Foundation's ability to undertake remediation and compensation works. BHP Brasil and Vale each hold a 50 per cent interest in Samarco.

Separately, negotiations are also ongoing with State and Federal Prosecutors and other Brazilian public authorities on the review of the Framework Agreement(5) , seeking a definitive and substantive settlement of Brazilian claims relating to the dam failure.

5

Copper

Production

 
                                   Mar YTD22   Mar Q22   Mar Q22 
                                          vs        vs        vs 
              Mar YTD22  Mar Q22   Mar YTD21   Mar Q21   Dec Q21 
              ---------  -------  ----------  --------  -------- 
Copper (kt)     1,111.7    369.7       (10%)      (6%)        1% 
Zinc (t)         95,624   32,732       (13%)      (2%)       11% 
Uranium (t)       1,599      781       (40%)      (6%)     >100% 
 

Copper - Total copper production decreased by 10 per cent to 1,112 kt. Guidance for the 2022 financial year has been lowered to between 1,570 and 1,620 kt, from between 1,590 and 1,760 kt, which reflects lowered production guidance for Escondida.

Our Chilean assets experienced a challenging operating environment in the March 2022 quarter due to a reduction in our operational workforce as a result of a significant increase in COVID-19 cases in Chile, particularly the Omicron variant, and the mitigation measures implemented. This is despite high COVID-19 vaccination rates and continued use of control measures at our operating sites.

Escondida copper production decreased by 13 per cent to 715 kt primarily due to grade decline in the current mining area, the impact of a reduced operational workforce from COVID-19 and public road blockades associated with social unrest affecting access to site for both workers and supplies. Escondida achieved record material mined for the nine months to March 2022 despite these challenges. Production guidance for the 2022 financial year has been lowered to between 1,000 and 1,030 kt, from between 1,020 and 1,080 kt, reflecting the impact of increased COVID-19 cases and related supply constraints, as well as the road blockades. Concentrator feed grade decline in the current mining area remains forecast at approximately 2 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.

Pampa Norte copper production increased by 37 per cent to 204 kt, reflecting the continued ramp up of the Spence Growth Option (SGO), partially offset by the impact of lower cathode production as a result of grade decline and the public road blockades. Ore stacking grade for cathodes is now expected to decline by approximately 15 per cent for the 2022 financial year due to a change in mine sequencing. Production guidance for the 2022 financial year remains unchanged at between 260 and 300 kt. We continue to progress the plant design modifications required at SGO to achieve planned copper production levels. The Spence guidance to average 300 ktpa (including cathodes) in the first four years of production will be subject to the timing of these modifications being completed.

Olympic Dam copper production decreased by 46 per cent to 83 kt as a result of the execution of the major smelter maintenance campaign which was completed in January 2022. The subsequent smelter ramp up to full capacity was achieved in April 2022, and has delivered 17 per cent higher smelted tonnes compared to the ramp up after the prior maintenance campaign in 2017. Production for the 2022 financial year is expected to be at the lower end of the guidance range of between 140 and 150 kt primarily as a result of COVID-19 related impacts to the completion of the smelter maintenance campaign.

Antamina copper production increased by two per cent to 110 kt, reflecting higher copper head grades. Zinc production decreased by 13 per cent to 96 kt reflecting lower zinc head grades. Production guidance remains unchanged, with copper production expected to be at the upper end of the 120 to 140 kt guidance range, and zinc production between 115 and 130 kt.

6

Iron Ore

Production

 
                                                Mar YTD22   Mar Q22   Mar Q22 
                                                       vs        vs        vs 
                           Mar YTD22  Mar Q22   Mar YTD21   Mar Q21   Dec Q21 
                           ---------  -------  ----------  --------  -------- 
Iron ore production (kt)     189,101   59,700          0%        1%     (10%) 
 

Iron ore - Total iron ore production in line with the prior period at 189 Mt. Production guidance for the 2022 financial year remains unchanged at between 249 and 259 Mt.

WAIO production of 186 Mt (211 Mt on a 100 per cent basis) was in line with the prior period. The impacts of temporary labour constraints relating to COVID-19, train driver shortages, planned track renewal works in the March 2022 quarter, and the planned major maintenance on car dumper one and the Jimblebar train load out in the first half were offset by continued strong supply chain performance, including higher car dumper performance, and favourable weather compared to the prior period. South Flank ramp up to full production capacity of 80 Mtpa (100 per cent basis) over three years remains on track with an average rate of 58 Mtpa achieved in the March 2022 quarter contributing to record production from the MAC hub and record lump sales.

Production guidance for the 2022 financial year remains unchanged at between 246 and 255 Mt (278 and 288 Mt on a 100 per cent basis). Production in the June 2022 quarter is expected to be impacted by continued COVID-19 related absenteeism as Western Australia approaches anticipated peak case numbers, and planned car dumper maintenance.

Samarco production was 3.1 Mt (BHP share), following the recommencement of iron ore pellet production at one concentrator in December 2020. Production guidance for the 2022 financial year remains unchanged at between 3 and 4 Mt (BHP share), with production expected to be at the upper end of the guidance range.

Coal

Production

 
                                                  Mar YTD22   Mar Q22   Mar Q22 
                                                         vs        vs        vs 
                             Mar YTD22  Mar Q22   Mar YTD21   Mar Q21   Dec Q21 
                             ---------  -------  ----------  --------  -------- 
Metallurgical coal (kt)(2)      28,230   10,562        (2%)       10%       20% 
Energy coal (kt)(3)              9,782    2,577        (1%)     (14%)     (13%) 
 

Metallurgical coal - Metallurgical coal production decreased by two per cent to 28 Mt (49 Mt on a 100 per cent basis). Queensland Coal production guidance for the 2022 financial year remains unchanged at between 38 and 41 Mt (68 and 72 Mt on a 100 per cent basis), of which BMA is expected to contribute between 29 and 31 Mt, and BMC is expected to contribute between 9 and 10 Mt. The divestment of BHP's 80 per cent interest in BMC to Stanmore Resources Limited is expected to complete on 3 May 2022 upon which date the economic interest in and operating control of BMC transfers to Stanmore Resources Limited.

At Queensland Coal, strong underlying operational performance, including improvements in underlying truck productivity, have been offset by significant wet weather impacts across most operations in the first half of the year and labour constraints, including COVID-19 related absenteeism, impacting stripping and mine productivity. Labour shortages and COVID-19 related absenteeism remain a risk for the remainder of the year.

Energy coal - Energy coal production is broadly in line with the prior period at 10 Mt. Production guidance for the 2022 financial year remains unchanged at between 13 and 15 Mt.

At NSWEC, continued wet weather and COVID-19 related labour constraints impacted stripping performance and mine productivity in the March 2022 quarter, offsetting the strong first half operational performance. Higher quality products now make up almost 90 per cent of sales compared to approximately 65 per cent of sales in the prior period, maximising the benefit from the widening price spread.

7

Other

Nickel production

 
                                   Mar YTD22   Mar Q22   Mar Q22 
                                          vs        vs        vs 
              Mar YTD22  Mar Q22   Mar YTD21   Mar Q21   Dec Q21 
              ---------  -------  ----------  --------  -------- 
Nickel (kt)        58.0     18.7       (13%)      (8%)     (13%) 
 

Nickel - Nickel West production decreased by 13 per cent to 58 kt due to the impacts of COVID-19 related labour absenteeism and workforce shortages in the March 2022 quarter, planned asset integrity work to support operational stability completed in the December 2021 quarter, as well as planned maintenance in the September 2021 quarter. Production guidance for the 2022 financial year has been lowered to between 80 and 85 kt from between 85 and 95 kt, largely reflecting the impact from COVID-19 related labour constraints.

   Potash   - Our potash major projects under development are tracking to plan. 

Projects

 
                               Initial 
                 Capital      production 
Project and     expenditure     target 
 ownership         US$M          date     Capacity                         Progress 
-------------  ------------  -----------  -------------------------------  --------------------- 
Jansen Potash         2,972         CY27  Investment to finish the         The project is 
                                           excavation and lining of         99% 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, project is 
                                           potash mine and surface          5% complete 
                                           infrastructure, with capacity 
                                           to produce 4.35 Mtpa. 
  (Canada) 
  100% 
 

Minerals exploration

Total minerals exploration expenditure for the nine months to March 2022 was US$170 million, of which US$127 million was expensed.

Work continues on existing projects, joint ventures and farm-in agreements, as well as leveraging technology to both look deeper in mature exploration jurisdictions and delineate new high potential search spaces globally. Greenfield minerals exploration is being undertaken on advancing copper targets in Chile, Ecuador, 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 testing targets with drilling in Chile, Ecuador, the United States and Australia.

In April 2022, BHP agreed to fund a new C$2 million nickel exploration program in Nunavik, Quebec as part of its strategic alliance with Midland Exploration(6) . The exploration program will run during the 2022 calendar year and consist of regional magnetotelluric surveys, as well as two phases of prospecting.

At Oak Dam in South Australia, BHP is continuing next stage resource definition drilling with four drill rigs now active on site, an increase from two drill rigs previously, after commencing the program in May 2021.

8

Discontinued operations - Petroleum

Production

 
                                                                            Mar YTD22   Mar Q22   Mar Q22 
                                                                                vs         vs        vs 
                                                        Mar YTD22  Mar Q22   Mar YTD21   Mar Q21   Dec Q21 
                                                        ---------  -------  ----------  --------  -------- 
Crude oil, condensate and natural gas liquids (MMboe)        36.6     11.5          8%      (1%)      (7%) 
Natural gas (bcf)                                           244.4     75.9        (3%)      (8%)      (5%) 
Total petroleum production (MMboe)                           77.3     24.1          2%      (5%)      (6%) 
 

Completion of the proposed merger of BHP's oil and gas portfolio with Woodside Petroleum Ltd is targeted for 1 June 2022, subject to the satisfaction of conditions precedent including approval by Woodside shareholders at the Woodside general meeting on 19 May 2022. The effective date of the merger is 1 July 2021. The half year financial results for 31 December 2021 were prepared on the basis that BHP Petroleum is a discontinued operation.

Total petroleum production increased by two per cent to 77 MMboe. No further production guidance for the 2022 financial year will be provided for Petroleum given the business is presented as a discontinued operation.

Crude oil, condensate and natural gas liquids production increased by eight per cent to 37 MMboe, reflecting the additional 28 percent working interest acquired in Shenzi in November 2020, new production from Atlantis and Shenzi, increased volumes from Ruby following first production in May 2021, and lower impact from weather events in the Gulf of Mexico. The increase was partially offset by natural field decline across the portfolio.

Natural gas production decreased by three per cent to 244 bcf, reflecting natural field decline, decreased production at North West Shelf and unplanned downtime at Angostura. The decline in production has been partially offset by increased volumes from Ruby and higher seasonal demand for gas at Bass Strait.

Projects

 
                                       Initial 
                         Capital      production 
Project and             expenditure     target 
 ownership                 US$M          date     Capacity                     Progress 
---------------------  ------------  -----------  ---------------------------  -------------------------- 
Mad Dog Phase                 2,154      H2 CY22  New floating production      First production is 
 2                                                 facility with the capacity   expected in the second 
 (US Gulf of                                       to produce up to 140,000     half of the 2022 calendar 
 Mexico)                                           gross barrels of oil         year. On budget. 
 23.9% (non-operator)                              equivalent per day.          The overall project 
                                                                                is 98% complete. 
Shenzi North                    392         CY24  A two-well subsea tie-in     On schedule and budget. 
 development                                       to the Shenzi platform,      The overall project 
 (US Gulf of                                       with the capacity to         is 8% complete. 
 Mexico)                                           produce up to 30,000 
 72% (operator)                                    gross barrels of oil 
                                                   equivalent per day. 
Scarborough                   1,500         CY26  New upstream facilities      On schedule and budget. 
 (Western Australia)                               designed to deliver          The overall project 
 26.5% (non-operator)                              daily gas quantities         is 13% complete. 
                                                   to manufacture 8 Mtpa 
                                                   LNG and 180 TJ/day of 
                                                   domestic gas. 
 

The divestment of our interest in the ROD Integrated Development in Algeria was completed in April 2022.

9

Petroleum exploration

Exploration and appraisal wells drilled during the March 2022 quarter are summarised below.

 
                                                                                  Total 
                               Formation                                  Water    well 
Well       Location   Target    age            BHP equity   Spud date      depth   depth  Status 
---------  ---------  -------  --------------  -----------  ------------  ------  ------  --------------- 
                                                                                          Plugged 
                                                                                           & Abandoned; 
           Gulf of                                                                         Encountered 
            Mexico                             75% (BHP     17 November   764     10,114   sub-commercial 
Wasabi-2    GC124     Oil      Early Miocene    Operator)    2021          m       m       hydrocarbons 
 

In the central Gulf of Mexico, the Wasabi-2 well encountered sub-commercial hydrocarbons and was plugged and abandoned. This completes the Wasabi exploration program, with results under evaluation to determine next steps.

On 2 March, 2022, BHP signed a farm-out agreement with a subsidiary of Shell plc. to assign 40 per cent equity in each of the two Barbados offshore Exploration Licences - the Bimshire and Carlisle Bay Blocks. The agreement is subject to customary regulatory approvals and third-party consents. Completion of the deal is expected by the end of the June 2022 quarter.

Petroleum exploration expenditure for nine months ended March 2022 was US$362 million, of which US$261 million was expensed. An approximately US$540 million exploration and appraisal program is being executed for the 2022 financial year.

Variance analysis relates to the relative performance of BHP and/or its operations during the nine months ended March 2022 compared with the nine months ended March 2021, 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 is based on 2021 financial year average realised prices.

The following footnotes apply to this Operational Review:

(1) 2022 financial year unit cost guidance: Escondida US$1.20-1.40/lb, WAIO US$17.50-18.50/t, Queensland Coal US$85-94/t however economic and operating control of BMC is expected to transfer to Stanmore Resources Limited on 3 May 2022, and NSWEC US$76-81/t (revised from US$62-70/t); based on exchange rates of AUD/USD 0.78 and USD/CLP 727.

(2) We announced the divestment of our interest in BMC in November 2021, however will continue to report BMC production as part of Queensland Coal. We maintain economic and operating control of BMC until the sale has completed, which is expected to occur on 3 May 2022.

(3) BHP completed the sale of its 33.3 per cent interest in Cerrejón on 11 January 2022. The transaction has an effective economic date of 31 December 2020 and volumes have been reported separately in the production and sales report.

   (4)       Excludes Petroleum production. 

(5) The Framework Agreement was entered into between Samarco, Vale and BHP Brasil and the relevant Brazilian authorities in March 2016 and established the Renova Foundation to develop and implement environmental and socio-economic programs to remediate and provide compensation for damage caused by the Samarco dam failure.

(6) BHP signed an agreement for a nickel exploration alliance with Midland Exploration in August 2020.

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, 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.

10

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

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11

NEWS RELEASE

21 April 2022

BHP OPERATIONAL REVIEW

FOR THE NINE MONTHSED 31 MARCH 2022

Production and sales summary (Excel version)

www.bhp.com

12

Production summary

 
                                                           Quarter ended                    Year to date 
                                            -------------------------------------------  ------------------ 
                                    BHP       Mar      Jun      Sep      Dec      Mar       Mar       Mar 
                                  interest    2021     2021     2021     2021     2022      2022      2021 
                                ----------  -------  -------  -------  -------  -------  --------  -------- 
 Copper (1) 
 Copper 
 Payable metal in concentrate 
  (kt) 
  Escondida (2)                      57.5%    202.7    195.6    194.7    196.2    178.2     569.1     676.1 
  Pampa Norte (3)                   100.0%      5.6     21.1     26.4     24.2     32.4      83.0       6.3 
  Antamina                           33.8%     34.7     36.1     35.8     38.4     36.1     110.3     107.9 
 
  Total                                       243.0    252.8    256.9    258.8    246.7     762.4     790.3 
 
 Cathode (kt) 
  Escondida (2)                      57.5%     46.6     51.1     49.0     48.4     48.2     145.6     145.4 
  Pampa Norte (3)                     100%     46.4     48.3     41.1     44.1     35.8     121.0     142.5 
  Olympic Dam                         100%     55.4     50.8     29.5     14.2     39.0      82.7     154.5 
 
  Total                                       148.4    150.2    119.6    106.7    123.0     349.3     442.4 
 
 Total copper (kt)                            391.4    403.0    376.5    365.5    369.7   1,111.7   1,232.7 
 
 Lead 
 Payable metal in concentrate 
  (t) 
  Antamina                           33.8%      468      381      378      277      282       937     2,151 
 
  Total                                         468      381      378      277      282       937     2,151 
 
 Zinc 
 Payable metal in concentrate 
  (t) 
  Antamina                           33.8%   33,299   35,483   33,289   29,603   32,732    95,624   109,606 
 
  Total                                      33,299   35,483   33,289   29,603   32,732    95,624   109,606 
 
 Gold 
 Payable metal in concentrate 
  (troy oz) 
  Escondida (2)                      57.5%   37,954   38,893   41,962   42,937   36,303   121,202   128,075 
  Pampa Norte (3)                     100%        -    4,728    6,967    5,776    7,929    20,672         - 
  Olympic Dam (refined 
   gold)                              100%   37,075   48,478   26,277   37,805   29,355    93,437    97,520 
 
  Total                                      75,029   92,099   75,206   86,518   73,587   235,311   225,595 
 
 Silver 
 Payable metal in concentrate 
  (troy koz) 
  Escondida (2)                      57.5%    1,318    1,234    1,291    1,462    1,270     4,023     4,525 
  Pampa Norte (3)                     100%        -      214      273      215      261       749         - 
  Antamina                           33.8%    1,463    1,409    1,367    1,308    1,191     3,866     4,556 
  Olympic Dam (refined 
   silver)                            100%      275      185      191      258      149       598       625 
 
  Total                                       3,056    3,042    3,122    3,243    2,871     9,236     9,706 
 
 

13

Production summary

 
                                                           Quarter ended                    Year to date 
                                            -------------------------------------------  ------------------ 
                                    BHP       Mar      Jun      Sep      Dec      Mar       Mar       Mar 
                                  interest    2021     2021     2021     2021     2022      2022      2021 
                                ----------  -------  -------  -------  -------  -------  --------  -------- 
 Uranium 
 Payable metal in concentrate 
  (t) 
  Olympic Dam                         100%      834      614      531      287      781     1,599     2,653 
 
  Total                                         834      614      531      287      781     1,599     2,653 
 
 Molybdenum 
 Payable metal in concentrate 
  (t) 
  Pampa Norte (3)                     100%        -        -        -        -        -         -         - 
  Antamina                           33.8%      276      111      142      217      190       549       752 
 
  Total                                         276      111      142      217      190       549       752 
 
 Iron Ore 
 Iron Ore 
 Production (kt) (4) 
  Newman                               85%   14,614   14,560   16,461   14,577   11,847    42,885    48,661 
  Area C Joint Venture                 85%   13,010   15,920   18,947   22,911   24,888    66,746    36,466 
  Yandi Joint Venture                  85%   16,112   18,405   11,834   12,261    8,418    32,513    50,191 
  Jimblebar (5)                        85%   15,241   15,337   15,009   15,324   13,553    43,886    52,056 
  Samarco                              50%      878    1,023    1,048    1,029      994     3,071       915 
 
  Total                                      59,855   65,245   63,299   66,102   59,700   189,101   188,289 
 
 Coal 
 Metallurgical coal 
 Production (kt) (6) 
  BMA                                  50%    7,727    9,253    6,715    6,300    7,944    20,959    22,631 
  BHP Mitsui Coal (7) 
   (8)                                 80%    1,863    2,570    2,135    2,518    2,618     7,271     6,171 
 
  Total                                       9,590   11,823    8,850    8,818   10,562    28,230    28,802 
 
 Energy coal 
 Production (kt) 
  NSW Energy Coal                     100%    2,981    4,492    4,238    2,967    2,577     9,782     9,834 
 
  Total                                       2,981    4,492    4,238    2,967    2,577     9,782     9,834 
 
 Production (kt) 
  Cerrejón (9)                  33.3%    1,795    1,784    2,060    2,176        -     4,236     3,180 
 
  Total                                       1,795    1,784    2,060    2,176        -     4,236     3,180 
 
 Other 
 Nickel 
 Saleable production 
  (kt) 
  Nickel West                         100%     20.4     22.4     17.8     21.5     18.7      58.0      66.6 
 
  Total                                        20.4     22.4     17.8     21.5     18.7      58.0      66.6 
 
 Cobalt 
 Saleable production 
  (t) 
  Nickel West                         100%      273      241      177      220      125       522       747 
 
  Total                                         273      241      177      220      125       522       747 
 
 

14

Production summary

 
                                                       Quarter ended                   Year to date 
                                        -------------------------------------------  ---------------- 
                               BHP        Mar      Jun      Sep      Dec      Mar      Mar      Mar 
                             interest     2021     2021     2021     2021     2022     2022     2021 
                           -----------  -------  -------  -------  -------  -------  -------  ------- 
 Discontinued operations 
 Petroleum (10) (11) 
 Production 
  Crude oil, condensate 
   and NGL (Mboe)                        11,601   12,205   12,751   12,345   11,456   36,552   33,837 
  Natural gas (bcf)                        82.6     88.6     88.4     80.1     75.9    244.4    252.0 
 
  Total (Mboe)                           25,368   26,972   27,484   25,695   24,106   77,285   75,837 
 
 
   (1)      Metal production is reported on the basis of payable metal. 
   (2)      Shown on a 100% basis. BHP interest in saleable production is 57.5%. 
   (3)      Includes Cerro Colorado and Spence. 
   (4)      Iron ore production is reported on a wet tonnes basis. 
   (5)      Shown on a 100% basis. BHP interest in saleable production is 85%. 

(6) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

   (7)      Shown on a 100% basis. BHP interest in saleable production is 80%. 

(8) BHP announced the divestment of its interest in BHP Mitsui Coal (BMC) in November 2021, but will continue to report BMC as part of Queensland Coal as BHP maintain economic and operating control of BMC until the sale has completed, which is expected to occur on 3 May 2022.

(9) BHP completed the sale of its 33.3 per cent interest in Cerrejón on 11 January 2022. Production reported until 31 December 2021.

(10) BHP announced a binding share sale agreement for the proposed merger of BHP's oil and gas portfolio with

Woodside in November 2021   with completion expected on 1 June 2022. 

(11) 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.

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

15

Production and sales report

 
                                                                                                Year to 
                                                          Quarter ended                           date 
                                        ------------------------------------------------  ------------------ 
                                          Mar       Jun       Sep       Dec       Mar        Mar       Mar 
                                          2021      2021      2021      2021      2022       2022      2021 
                                        -------  --------  --------  --------  ---------  --------  -------- 
 Copper 
 Metals production is payable metal 
  unless otherwise stated. 
 
 Escondida, Chile 
  (1) 
  Material mined                (kt)     95,978   104,043   113,874   117,284    107,676   338,834   276,609 
  Concentrator throughput       (kt)     32,654    31,903    33,528    35,787     30,235    99,550   103,690 
  Average copper grade 
   - concentrator               (%)       0.78%     0.77%     0.73%     0.71%      0.80%     0.74%     0.82% 
  Production ex mill            (kt)      207.8     202.8     201.2     203.6      191.5     596.3     697.8 
 
  Production 
  Payable copper                (kt)      202.7     195.6     194.7     196.2      178.2     569.1     676.1 
  Copper cathode (EW)           (kt)       46.6      51.1      49.0      48.4       48.2     145.6     145.4 
   - Oxide leach                (kt)       16.1      14.5      14.8      13.1       12.2      40.1      49.4 
   - Sulphide leach             (kt)       30.5      36.6      34.2      35.3       36.0     105.5      96.0 
 
  Total copper                  (kt)      249.3     246.7     243.7     244.6      226.4     714.7     821.5 
 
                                (troy 
  Payable gold concentrate       oz)     37,954    38,893    41,962    42,937     36,303   121,202   128,075 
                                (troy 
  Payable silver concentrate     koz)     1,318     1,234     1,291     1,462      1,270     4,023     4,525 
 
  Sales 
  Payable copper                (kt)      196.9     194.1     190.5     200.2      177.0     567.7     678.3 
  Copper cathode (EW)           (kt)       49.6      49.6      46.7      49.7       47.2     143.6     143.8 
                                (troy 
  Payable gold concentrate       oz)     37,954    38,893    41,962    42,937     36,303   121,202   128,075 
                                (troy 
  Payable silver concentrate     koz)     1,318     1,234     1,291     1,462      1,270     4,023     4,525 
 
   (1)     Shown on a 100% basis. BHP interest in saleable production is 57.5%. 

16

Production and sales report

 
                                                                                                Year to 
                                                          Quarter ended                           date 
                                        -------------------------------------------------  ---------------- 
                                          Mar       Jun        Sep        Dec       Mar      Mar      Mar 
                                          2021      2021       2021       2021      2022     2022     2021 
                                        -------  ---------  ---------  ---------  -------  -------  ------- 
 Pampa Norte, Chile 
  Cerro Colorado 
  Material mined                (kt)      6,153      5,498      5,378      4,782    3,516   13,676   25,521 
  Ore stacked                   (kt)      3,283      3,702      3,566      4,029    3,181   10,776   10,881 
  Average copper grade 
   - stacked                    (%)       0.58%      0.58%      0.60%      0.62%    0.53%    0.59%    0.61% 
  Production 
  Copper cathode (EW)           (kt)       13.9       14.7       13.4       15.3     11.6     40.3     45.5 
  Sales 
  Copper cathode (EW)           (kt)       13.2       15.4       12.1       16.0     10.5     38.6     44.4 
  Spence 
  Material mined                (kt)     19,195     21,262     21,154     24,025   24,040   69,219   55,940 
  Ore stacked                   (kt)      5,536      4,609      5,258      5,071    5,055   15,384   15,546 
  Average copper grade 
   - stacked                    (%)       0.64%      0.72%      0.64%      0.66%    0.67%    0.66%    0.84% 
  Concentrator throughput       (kt)      2,471      4,929      5,786      6,234    6,512   18,532    3,678 
  Average copper grade 
   - concentrator               (%)           -      0.63%      0.65%      0.60%    0.65%    0.63%        - 
  Production 
  Payable copper                (kt)        5.6       21.1       26.4       24.2     32.4     83.0      6.3 
  Copper cathode (EW)           (kt)       32.5       33.6       27.7       28.8     24.2     80.7     97.0 
 
  Total copper                  (kt)       38.1       54.7       54.1       53.0     56.6    163.7    103.3 
 
                                (troy 
  Payable gold concentrate       oz)          -      4,728      6,967      5,776    7,929   20,672        - 
                                (troy 
  Payable silver concentrate     koz)         -        214        273        215      261      749        - 
  Payable molybdenum            (t)           -          -          -          -        -        -        - 
  Sales 
  Payable copper                (kt)        1.8       20.8       28.4       24.9     28.1     81.4      1.8 
  Copper cathode (EW)           (kt)       30.7       34.1       27.7       31.2     20.2     79.1     95.7 
                                (troy 
  Payable gold concentrate       oz)          -    4,728.0    6,967.0    5,776.0    7,929   20,672        - 
                                (troy 
  Payable silver concentrate     koz)         -      214.0      273.0      215.0      261      749        - 
  Payable molybdenum            (t)           -          -          -          -        -        -        - 
 
 

17

Production and sales report

 
                                                     Quarter ended                     Year to date 
                                     ---------------------------------------------  ------------------ 
                                       Mar      Jun      Sep      Dec       Mar        Mar       Mar 
                                       2021     2021     2021     2021      2022       2022      2021 
                                     -------  -------  -------  -------  ---------  --------  -------- 
 Antamina, Peru 
  Material mined (100%)      (kt)     53,762   63,393   66,581   58,179     58,118   182,878   156,249 
  Concentrator throughput 
   (100%)                    (kt)     12,651   13,466   13,219   13,011     13,135    39,365    39,936 
  Average head grades 
   - Copper                  (%)       0.94%    0.93%    0.97%    1.00%      0.94%     0.97%     0.95% 
   - Zinc                    (%)       1.16%    1.24%    1.16%    1.11%      1.13%     1.13%     1.26% 
  Production 
  Payable copper             (kt)       34.7     36.1     35.8     38.4       36.1     110.3     107.9 
  Payable zinc               (t)      33,299   35,483   33,289   29,603     32,732    95,624   109,606 
                             (troy 
  Payable silver              koz)     1,463    1,409    1,367    1,308      1,191     3,866     4,556 
  Payable lead               (t)         468      381      378      277        282       937     2,151 
  Payable molybdenum         (t)         276      111      142      217        190       549       752 
  Sales 
  Payable copper             (kt)       31.7     37.3     32.7     41.9       32.9     107.5     106.2 
  Payable zinc               (t)      34,141   32,044   32,635   32,513     29,920    95,068   112,019 
                             (troy 
  Payable silver              koz)     1,342    1,540    1,103    1,405      1,078     3,586     4,380 
  Payable lead               (t)         689      556      232      344        269       845     2,382 
  Payable molybdenum         (t)         192      268       86      170        199       455       936 
 
 

18

Production and sales report

 
                                                    Quarter ended                    Year to date 
                                    ---------------------------------------------  ---------------- 
                                      Mar      Jun      Sep      Dec       Mar       Mar      Mar 
                                      2021     2021     2021     2021      2022      2022     2021 
                                    -------  -------  -------  -------  ---------  -------  ------- 
 Olympic Dam, Australia 
  Material mined (1)       (kt)       1,979    2,143    1,935    1,998      2,424    6,357    6,561 
  Ore Milled               (kt)       2,238    2,429    2,024    1,105      2,122    5,251    7,058 
  Average copper grade     (%)        2.02%    1.95%    2.03%    2.17%      2.21%    2.13%    2.02% 
  Average uranium 
   grade                   (kg/t)      0.61     0.56     0.55     0.55       0.62     0.58     0.58 
  Production 
  Copper cathode (ER 
   and EW)                 (kt)        55.4     50.8     29.5     14.2       39.0     82.7    154.5 
  Payable uranium          (t)          834      614      531      287        781    1,599    2,653 
                           (troy 
  Refined gold              oz)      37,075   48,478   26,277   37,805     29,355   93,437   97,520 
                           (troy 
  Refined silver            koz)        275      185      191      258        149      598      625 
  Sales 
  Copper cathode (ER 
   and EW)                 (kt)        55.6     52.7     29.1     17.9       36.3     83.3    151.7 
  Payable uranium          (t)          779    1,179      536      541        236    1,313    2,637 
                           (troy 
  Refined gold              oz)      38,852   47,300   24,654   38,768     30,935   94,357   96,296 
                           (troy 
  Refined silver            koz)        242      245      126      290        182      598      629 
 
 
   (1)     Material mined refers to underground ore mined, subsequently hoisted or trucked to surface. 

19

Production and sales report

 
                                                Quarter ended                    Year to date 
                                 -------------------------------------------  ------------------ 
                                   Mar      Jun      Sep      Dec      Mar       Mar       Mar 
                                   2021     2021     2021     2021     2022      2022      2021 
                                 -------  -------  -------  -------  -------  --------  -------- 
 Iron Ore 
 Iron ore production and sales 
  are reported on a wet tonnes 
  basis. 
 Western Australia 
  Iron Ore, Australia 
  Production 
  Newman                  (kt)    14,614   14,560   16,461   14,577   11,847    42,885    48,661 
  Area C Joint Venture    (kt)    13,010   15,920   18,947   22,911   24,888    66,746    36,466 
  Yandi Joint Venture     (kt)    16,112   18,405   11,834   12,261    8,418    32,513    50,191 
  Jimblebar (1)           (kt)    15,241   15,337   15,009   15,324   13,553    43,886    52,056 
 
  Total production        (kt)    58,977   64,222   62,251   65,073   58,706   186,030   187,374 
 
  Total production 
   (100%)                 (kt)    66,695   72,848   70,587   73,852   66,674   211,113   211,254 
 
  Sales 
  Lump                    (kt)    15,593   16,410   17,546   17,827   16,966    52,339    49,352 
  Fines                   (kt)    42,939   48,837   45,039   46,809   42,187   134,035   137,453 
 
  Total                   (kt)    58,532   65,247   62,585   64,636   59,153   186,374   186,805 
 
  Total sales (100%)      (kt)    66,032   73,712   70,815   73,222   67,110   211,147   210,159 
 
 
 

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

 
 Samarco, Brazil 
  Production        (kt)    878   1,023   1,048   1,029   994   3,071   915 
  Sales             (kt)    646   1,052   1,111     950   943   3,004   646 
 

20

Production and sales report

 
                                                Quarter ended                    Year to date 
                                ---------------------------------------------  ---------------- 
                                  Mar       Jun       Sep      Dec      Mar      Mar      Mar 
                                  2021      2021      2021     2021     2022     2022     2021 
                                -------  ---------  -------  -------  -------  -------  ------- 
 Coal 
 Coal production is reported on the 
  basis of saleable product. 
 Queensland Coal, 
  Australia 
  Production (1) 
  BMA 
  Blackwater             (kt)     1,416      1,887    1,403    1,202    1,478    4,083      4,337 
  Goonyella              (kt)     2,232      2,752    1,798    1,797    2,336    5,931      6,696 
  Peak Downs             (kt)     1,595      1,597    1,223      960    1,395    3,578      4,295 
  Saraji                 (kt)     1,238      1,391      999    1,081    1,366    3,446      3,098 
  Daunia                 (kt)       496        478      377      304      338    1,019      1,450 
  Caval Ridge            (kt)       750      1,148      915      956    1,031    2,902      2,755 
 
  Total BMA              (kt)     7,727      9,253    6,715    6,300    7,944   20,959     22,631 
 
  Total BMA (100%)       (kt)    15,454     18,506   13,430   12,600   15,888   41,918     45,262 
 
  BHP Mitsui Coal (2) 
   (3) 
  South Walker Creek     (kt)     1,031      1,500    1,462    1,535    1,530    4,527      3,387 
  Poitrel                (kt)       832      1,070      673      983    1,088    2,744      2,784 
 
  Total BHP Mitsui 
   Coal                  (kt)     1,863      2,570    2,135    2,518    2,618    7,271      6,171 
 
  Total Queensland 
   Coal                  (kt)     9,590     11,823    8,850    8,818   10,562   28,230     28,802 
 
  Total Queensland 
   Coal (100%)           (kt)    17,317     21,076   15,565   15,118   18,506   49,189     51,433 
 
  Sales 
  BMA 
  Coking coal            (kt)     6,752      7,801    5,415    4,875    6,334   16,624     19,470 
  Weak coking coal       (kt)     1,038      1,069      734      754      805    2,293      2,951 
  Thermal coal           (kt)       206        400      576      455      484    1,515        267 
 
  Total BMA              (kt)     7,996      9,270    6,725    6,084    7,623   20,432     22,688 
 
  Total BMA (100%)       (kt)    15,992     18,540   13,450   12,168   15,246   40,864     45,376 
 
  BHP Mitsui Coal (2) 
   (3) 
  Coking coal            (kt)       357        535      313      458      576    1,347      1,632 
  Weak coking coal       (kt)     1,404      2,027    1,788    1,812    2,013    5,613      4,467 
  Thermal coal           (kt)         -          -        -        -        -        -          - 
 
  Total BHP Mitsui 
   Coal                  (kt)     1,761      2,562    2,101    2,270    2,589    6,960      6,099 
 
  Total Queensland 
   Coal                  (kt)     9,757     11,832    8,826    8,354   10,212   27,392     28,787 
 
  Total Queensland 
   Coal (100%)           (kt)    17,753     21,102   15,551   14,438   17,835   47,824     51,475 
 
 
 
   (1)     Production figures include some thermal coal. 
   (2)     Shown on a 100% basis. BHP interest in saleable production is 80%. 

(3) BHP announced the divestment of its interest in BHP Mitsui Coal (BMC) in November 2021, but will continue to report BMC as part of Queensland Coal as BHP maintain economic and operating control of BMC until the sale has completed, which is expected to occur on 3 May 2022.

21

Production and sales report

 
                                                  Quarter ended                  Year to date 
                                   ------------------------------------------  --------------- 
                                     Mar      Jun     Sep     Dec      Mar       Mar      Mar 
                                     2021     2021    2021    2021     2022      2022     2021 
                                   -------  ------  ------  ------  ---------  -------  ------ 
 NSW Energy Coal, 
  Australia 
  Production                (kt)     2,981   4,492   4,238   2,967      2,577    9,782   9,834 
  Sales thermal coal 
   - export                 (kt)     2,827   4,691   3,780   3,718      2,703   10,201   9,935 
 Cerrejón, Colombia 
  (1) 
  Production                (kt)     1,795   1,784   2,060   2,176          -    4,236   3,180 
  Sales thermal coal 
   - export                 (kt)     1,746   1,619   2,180   2,012          -    4,192   3,110 
 
 

(1) BHP completed the sale of its 33.3 per cent interest in Cerrejón on 11 January 2022. Production reported until 31 December 2021.

 
                                               Quarter ended                Year to date 
                                  --------------------------------------  --------------- 
                                    Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                    2021    2021    2021    2021    2022    2022     2021 
                                  ------  ------  ------  ------  ------  -------  ------ 
 Other 
 Nickel production is reported 
  on the basis of saleable product 
 Nickel West, Australia 
  Mt Keith 
  Nickel concentrate       (kt)     54.1    50.4    53.7    47.0    47.1    147.8   174.2 
  Average nickel grade     (%)      13.3    13.3    14.6    13.2    14.4     14.1    14.7 
  Leinster 
  Nickel concentrate       (kt)     71.5    71.4    73.8    77.4    78.0    229.2   210.5 
  Average nickel grade     (%)      10.2    10.5     8.9     9.1     8.9      9.0     9.6 
  Saleable production 
  Refined nickel (1)       (kt)     15.2    17.1    14.4    18.2    13.3     45.9    52.9 
  Nickel sulphate (2)      (kt)        -       -       -     0.4     0.7      1.1       - 
  Intermediates and 
   nickel by-products 
   (3)                     (kt)      5.2     5.3     3.4     2.9     4.7     11.0    13.7 
 
  Total nickel             (kt)     20.4    22.4    17.8    21.5    18.7     58.0    66.6 
 
  Cobalt by-products       (t)       273     241     177     220     125      522     747 
  Sales 
  Refined nickel (1)       (kt)     15.0    17.8    13.8    16.9    15.3     46.0    53.0 
  Nickel sulphate (2)      (kt)        -       -       -     0.1     0.7      0.8       - 
  Intermediates and 
   nickel by-products 
   (3)                     (kt)      5.9     4.0     3.9     3.1     2.7      9.7    13.1 
 
  Total nickel             (kt)     20.9    21.8    17.7    20.1    18.7     56.5    66.1 
 
  Cobalt by-products       (t)       273     241     177     220     125      522     748 
 
    (1)    High quality refined nickel metal, including briquettes and powder. 
    (2)    Nickel sulphate crystals produced from nickel powder. 
    (3)    Nickel contained in matte and by-product streams. 

22

Production and sales report

 
                                                    Quarter ended                Year to date 
                                       --------------------------------------  ---------------- 
                                         Mar     Jun     Sep     Dec     Mar     Mar      Mar 
                                         2021    2021    2021    2021    2022    2022     2021 
                                       ------  ------  ------  ------  ------  -------  ------- 
 Discontinued operations 
 Petroleum (1) (2) 
 Bass Strait 
  Crude oil and condensate    (Mboe)      859   1,205   1,201     971     895    3,067    3,167 
  NGL                         (Mboe)    1,035   1,563   1,655   1,140   1,149    3,944    3,752 
  Natural gas                 (bcf)      22.7    32.8    35.8    25.8    22.4     84.0     80.2 
 
  Total petroleum 
   products                   (Mboe)    5,677   8,235   8,823   6,411   5,777   21,011   20,285 
 
 North West Shelf 
  Crude oil and condensate    (Mboe)    1,183     933     973   1,027   1,016    3,016    3,578 
  NGL                         (Mboe)      188     177     148     180     185      513      515 
  Natural gas                 (bcf)      31.1    26.5    24.3    25.8    26.4     76.5     91.1 
 
  Total petroleum 
   products                   (Mboe)    6,554   5,527   5,171   5,507   5,601   16,279   19,276 
 
 Pyrenees 
  Crude oil and condensate    (Mboe)      679     690     710     723     684    2,117    2,342 
 
  Total petroleum 
   products                   (Mboe)      679     690     710     723     684    2,117    2,342 
 
 Macedon 
  Crude oil and condensate    (Mboe)        1       -       1       1       -        2        3 
  Natural gas                 (bcf)      12.4    12.6    12.7    12.6    12.5     37.8     37.7 
 
  Total petroleum 
   products                   (Mboe)    2,068   2,100   2,118   2,101   2,083    6,302    6,287 
 
 Atlantis (3) 
  Crude oil and condensate    (Mboe)    2,590   3,117   3,171   3,222   2,692    9,085    7,396 
  NGL                         (Mboe)      171     218     222     186     171      579      472 
  Natural gas                 (bcf)       1.4     1.6     1.7     1.5     1.3      4.5      3.7 
 
  Total petroleum 
   products                   (Mboe)    2,994   3,602   3,676   3,658   3,080   10,414    8,484 
 
 Mad Dog (3) 
  Crude oil and condensate    (Mboe)    1,209   1,099   1,155   1,137     964    3,256    3,350 
  NGL                         (Mboe)       57      77      46      56      35      137      143 
  Natural gas                 (bcf)       0.2     0.2     0.2     0.1     0.1      0.4      0.5 
 
  Total petroleum 
   products                   (Mboe)    1,299   1,209   1,234   1,210   1,016    3,460    3,576 
 
 Shenzi (3) 
  Crude oil and condensate    (Mboe)    2,328   2,023   2,016   2,335   2,378    6,729    5,487 
  NGL                         (Mboe)      130      87     102     134     114      350      288 
  Natural gas                 (bcf)       0.4     0.1     0.4     0.4     0.4      1.2      1.0 
 
  Total petroleum 
   products                   (Mboe)    2,525   2,127   2,185   2,536   2,559    7,280    5,942 
 
 Trinidad/Tobago 
  Crude oil and condensate    (Mboe)      139     236     491     396     288    1,175      337 
  Natural gas                 (bcf)      14.4    14.7    13.3    13.9    12.7     39.9     37.7 
 
  Total petroleum 
   products                   (Mboe)    2,539   2,686   2,708   2,713   2,405    7,826    6,620 
 
 Other Americas 
  (3) (4) 
  Crude oil and condensate    (Mboe)      187     104      83      81      91      255      589 
  NGL                         (Mboe)        -       8       3       -       6        9       13 
  Natural gas                 (bcf)         -     0.1       -       -     0.1      0.1      0.1 
 
  Total petroleum 
   products                   (Mboe)      187     129      86      81     114      281      619 
 
 Algeria 
  Crude oil and condensate    (Mboe)      845     668     774     756     788    2,318    2,405 
 
  Total petroleum 
   products                   (Mboe)      845     668     774     756     788    2,318    2,405 
 
 

23

Production and sales report

 
                                                      Quarter ended                   Year to date 
                                       -------------------------------------------  ---------------- 
                                         Mar      Jun      Sep      Dec      Mar      Mar      Mar 
                                         2021     2021     2021     2021     2022     2022     2021 
                                       -------  -------  -------  -------  -------  -------  ------- 
 Discontinued operations 
  (continued) 
 Petroleum (1) (2) 
 Total production 
  Crude oil and condensate    (Mboe)    10,020   10,075   10,575   10,649    9,796   31,020   28,654 
  NGL                         (Mboe)     1,581    2,130    2,176    1,696    1,660    5,532    5,183 
  Natural gas                 (bcf)       82.6     88.6     88.4     80.1     75.9    244.4    252.0 
 
  Total                       (Mboe)    25,368   26,972   27,484   25,695   24,106   77,285   75,837 
 
 

(1) BHP announced a binding share sale agreement for the proposed merger of BHP's oil and gas portfolio with Woodside in November 2021 with completion of the merger expected to occur on 1 June 2022. The effective date of the merger is 1 July 2021.

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

   (3)    Gulf of Mexico volumes are net of royalties. 
   (4)    Other Americas includes Neptune, Genesis and Overriding Royalty Interest. 

24

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April 21, 2022 02:00 ET (06:00 GMT)

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