6-K 1 d40231d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

October 19, 2021

 

 

 

BHP GROUP LIMITED

(ABN 49 004 028 077)

(Exact name of Registrant as specified in its charter)

 

VICTORIA, AUSTRALIA

(Jurisdiction of incorporation or organisation)

 

171 COLLINS STREET, MELBOURNE,

VICTORIA 3000 AUSTRALIA

(Address of principal executive offices)

  

BHP GROUP PLC

(REG. NO. 3196209)

(Exact name of Registrant as specified in its charter)

 

ENGLAND AND WALES

(Jurisdiction of incorporation or organisation)

 

NOVA SOUTH, 160 VICTORIA STREET

LONDON, SW1E 5LB

UNITED KINGDOM

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:  ☒ Form 20-F    ☐ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:  ☐ Yes    ☒ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):    n/a

 

 

 

NEWS RELEASE    LOGO

 

Release Time        

    IMMEDIATE

Date

    19 October 2021

Release Number

    23/21

BHP OPERATIONAL REVIEW FOR THE QUARTER ENDED 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 intention 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.

 

Production

    Sep Q21
(vs Sep Q20)		     Sep Q21
(vs Jun Q21)		    

Sep Q21 vs Jun Q21 commentary

Petroleum (MMboe)

     
 27.5
3		  
% 		    
 27.5
2		  
% 		   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.

Copper (kt)

     
 376.5
(9		  
%) 		    
 376.5
(7		  
%) 		   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.

Iron ore (Mt)

     
 63.3
(4		  
%) 		    
 63.3
(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.

Metallurgical coal (Mt)

     
 8.9
(9		  
%) 		    
 8.9
(25		  
%) 		   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.

Energy coal (Mt)

     
 4.2
17		  
% 		    
 4.2
(6		  
%) 		   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.

Nickel (kt)

     
 17.8
(20		  
%) 		    
 17.8
(21		  
%) 		   Lower volumes due to planned maintenance across the supply chain.

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

 

 

BHP Operational Review for the quarter ended 30 September 2021    2

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.

 

Production

    Sep
Q21		      Sep Q21
vs
Sep Q20		     Sep Q21
vs
Jun Q21		     Current
FY22
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$11.2 billion over the life of the projects.

 

 

BHP Operational Review for the quarter ended 30 September 2021    3

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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    4

Petroleum

Production

 

     Sep Q21      Sep Q21
vs
Sep Q20		     Sep Q21
vs
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

 

Project and
ownership

    Capital
expenditure
US$M		      Initial
production
target date		     

Capacity

   

Progress

Mad Dog Phase 2 (US Gulf of Mexico) 23.9% (non-operator)

      2,154        Mid-CY22      New floating production facility with the capacity to produce up to 140,000 gross barrels of oil equivalent per day.    On schedule and budget. The overall project is 95% complete.

Shenzi North development (US Gulf of Mexico) 72% (operator)

      392        CY24      A two-well subsea tie-in to the Shenzi platform, with the capacity to produce up to 30,000 gross barrels of oil equivalent per day.    Approved in August 2021.

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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    5

Petroleum exploration

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

 

Well

   

Location

    Target    Formation age    BHP equity    Spud date    Water
depth		    Total well
depth		   Status

Bongos-3

    Trinidad & Tobago Block TTDAA 14    Lowest
hydrocarbons		    Late Miocene    70% (BHP
Operator)		    27 July 2021    2,114 m    5,360 m   Hydrocarbons
encountered

Bongos-3X

    Trinidad & Tobago Block TTDAA 14    Gas    Late Miocene    70% (BHP
Operator)		    27 July 2021    2,114 m    4,197 m(i)   Drilling
ahead(i)

Bongos-4

    Trinidad & Tobago Block TTDAA 14    Gas    Late Miocene    70% (BHP
Operator)		    6 August 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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    6

Copper

Production

 

     Sep Q21      Sep Q21
vs
Sep Q20		     Sep Q21
vs
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°1 of Operators and Maintainers, effective for 36 months from 2 August 2021.

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°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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    7

Iron Ore

Production

 

     Sep Q21      Sep Q21
vs
Sep Q20		     Sep Q21
vs
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.

Coal

Production

 

     Sep Q21      Sep Q21
vs
Sep Q20		     Sep Q21
vs
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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    8

Other

Nickel production

 

     Sep
Q21		      Sep Q21
vs
Sep Q20		     Sep Q21
vs
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.

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

 

Project and
ownership

    Capital
expenditure
US$M		     

Initial
production
target date

   

Capacity

   

Progress

Jansen Potash

(Canada)

100%

      2,972      CY27    Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.    The project is 96% complete. Target project completion in CY22.

Jansen Stage 1

(Canada)

100%

      5,723      CY27    Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.35 Mtpa.    Approved in August 2021.

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 km2. 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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    9

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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    10

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

Authorised for lodgement by:

Stephanie Wilkinson

Group Company Secretary

 

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BHP Operational Review for the quarter ended 30 September 2021    10

Production summary

 

           Quarter ended      Year to date  
   BHP
interest		     Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
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  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

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  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

BHP Operational Review for the quarter ended 30 September 2021    11

Production summary

 

                                                       
           Quarter ended      Year to date  
   BHP
interest		     Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
2020		  

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  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    12

Production and sales report

 

                                                     
         Quarter ended      Year to date  
       Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
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  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

BHP Operational Review for the quarter ended 30 September 2021    13

Production and sales report

            Quarter ended      Year to date  
            Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    14

Production and sales report

 

           Quarter ended     Year to date  
           Sep
2020		     Dec
2020		     Mar
2021		     Jun
2021		     Sep
2021		     Sep
2021		     Sep
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 concentrate

      (troy oz)       42,332       47,789       37,954       38,893       41,962       41,962       42,332  

Payable silver concentrate

      (troy 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 concentrate

      (troy oz)       42,332       47,789       37,954       38,893       41,962       41,962       42,332  

Payable silver concentrate

      (troy 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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    15

Production and sales report

 

           Quarter ended     Year to date  
           Sep
2020		     Dec
2020		     Mar
2021		     Jun
2021		     Sep
2021		     Sep
2021		     Sep
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 (5)

     (troy oz)       —         —         —         4,728       6,967       6,967       —    

Payable silver concentrate (5)

     (troy 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 (5)

     (troy oz)       —         —         —         4,728       6,967       6,967       —    

Payable silver concentrate (5)

     (troy koz)       —         —         —         214       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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    16

Production and sales report

 

           Quarter ended     Year to date  
           Sep
2020		     Dec
2020		     Mar
2021		     Jun
2021		     Sep
2021		     Sep
2021		     Sep
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  

Payable silver

      (troy 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  

Payable silver

      (troy 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.

    

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  

Refined gold

      (troy oz)       36,608       23,837       37,075       48,478       26,277       26,277       36,608  

Refined silver

      (troy 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  

Refined gold

      (troy oz)       36,054       21,390       38,852       47,300       24,654       24,654       36,054  

Refined silver

      (troy koz)       222       165       242       245       126       126       222  

 

(1)

Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.

 

 

BHP Operational Review for the quarter ended 30 September 2021    17

Production and sales report

 

          Quarter ended      Year to date  
          Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    19

Production and sales report

 

          Quarter ended      Year to date  
          Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
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  

 

 

BHP Operational Review for the quarter ended 30 September 2021    20

Production and sales report

 

          Quarter ended      Year to date  
          Sep
2020		      Dec
2020		      Mar
2021		      Jun
2021		      Sep
2021		      Sep
2021		      Sep
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.

 

 

BHP Operational Review for the quarter ended 30 September 2021    21

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

      BHP Group Limited and BHP Group Plc
Date: October 19, 2021     By:  

/s/ Stefanie Wilkinson

    Name:   Stefanie Wilkinson
    Title:   Group Company Secretary