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

April 21, 2022

 

 

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)

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

   21 April 2022

Release Number

   12/22

BHP OPERATIONAL REVIEW

FOR THE NINE MONTHS ENDED 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.

 

Production

   Mar YTD22
(vs Mar YTD21)
     Mar Q22
(vs Dec Q21)
    

Mar Q22 vs Dec Q21 commentary

Copper (kt)

     1,111.7 (10%      369.7 1%      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 result of social unrest.

Iron ore (Mt)

     189.1 0%        59.7 (10%    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 Flank.

Metallurgical coal (Mt)(2)

     28.2 (2%      10.6 20%      Increased volumes as a result of lower rainfall than the prior period coupled with strong operational performance driven by improved truck productivity.

Energy coal (Mt)(3)

     9.8 (1%      2.6 (13%    Lower volumes due to continued wet weather and COVID-19 related absenteeism impacting stripping and mine productivity, as well as an increased proportion of higher quality products.

Nickel (kt)

     58.0 (13%      18.7 (13%    Lower volumes reflecting temporary labour constraints due to COVID-19 related absenteeism and workforce shortages.

Discontinued operations

 

     

Petroleum (MMboe)

     77.3 2%        24.1 (6%    Lower volumes due to reduced seasonal gas demand at Bass Strait and lower well productivity at Atlantis.

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

 

BHP Operational Review for the nine months ended 31 March 2022    1


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.”

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

   Mar
YTD22
     Mar
Q22
     Mar YTD22
vs
Mar YTD21
    Mar Q22
vs
Mar Q21
    Mar Q22
vs
Dec Q21
    Previous FY22
guidance
     Current FY22
guidance
    

 

 

Copper (kt)

     1,111.7        369.7        (10 %)      (6 %)      1     1,590 –1,760        1,570 –1,620        Lowered  

Escondida (kt)

     714.7        226.4        (13 %)      (9 %)      (7 %)      1,020 –1,080        1,000 –1,030        Lowered  

Pampa Norte (kt)

     204.0        68.2        37     31     0     260 – 300        260 – 300        Unchanged  

Olympic Dam (kt)

     82.7        39.0        (46 %)      (30 %)      >100     140 – 150        140 – 150        Lower end  

Antamina (kt)

     110.3        36.1        2     4     (6 %)      120 – 140        120 – 140        Upper end  

Iron ore (Mt)

     189.1        59.7        0     1     (10 %)      249 – 259        249 – 259     

WAIO (Mt)

     186.0        58.7        (1 %)      0     (10 %)      246 – 255        246 – 255        Unchanged  

WAIO (100% basis) (Mt)

     211.1        66.7        0     0     (10 %)      278 – 288        278 – 288        Unchanged  

Samarco (Mt)

     3.1        1.0        >100     13     (3 %)      3 – 4        3 – 4        Upper 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.

 

BHP Operational Review for the nine months ended 31 March 2022    2


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.

 

BHP Operational Review for the nine months ended 31 March 2022    3


Copper

Production

 

     Mar YTD22      Mar Q22      Mar YTD22
vs

Mar YTD21
    Mar Q22
vs

Mar Q21
    Mar Q22
vs

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.

 

BHP Operational Review for the nine months ended 31 March 2022    4


Iron Ore

Production

 

     Mar YTD22      Mar Q22      Mar YTD22
vs

Mar YTD21
    Mar Q22
vs

Mar Q21
    Mar Q22
vs

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 YTD22
vs

Mar YTD21
    Mar Q22
vs

Mar Q21
    Mar Q22
vs

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.

 

BHP Operational Review for the nine months ended 31 March 2022    5


Other

Nickel production

 

     Mar YTD22      Mar Q22      Mar YTD22
vs
Mar YTD21
    Mar Q22
vs
Mar Q21
    Mar Q22
vs
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

 

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 99% 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, project is 5% complete

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.

 

BHP Operational Review for the nine months ended 31 March 2022    6


Discontinued operations - Petroleum

Production

 

     Mar YTD22      Mar Q22      Mar YTD22
vs
Mar YTD21
    Mar Q22
vs
Mar Q21
    Mar Q22
vs
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

 

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    H2 CY22    New floating production facility with the capacity to produce up to 140,000 gross barrels of oil equivalent per day.    First production is expected in the second half of the 2022 calendar year. On budget. The overall project is 98% 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.    On schedule and budget. The overall project is 8% complete.
Scarborough (Western Australia) 26.5% (non-operator)    1,500    CY26    New upstream facilities designed to deliver daily gas quantities to manufacture 8 Mtpa LNG and 180 TJ/day of domestic gas.    On schedule and budget. The overall project is 13% complete.

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

 

BHP Operational Review for the nine months ended 31 March 2022    7


Petroleum exploration

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

 

Well

  

Location

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

Wasabi-2

   Gulf of Mexico GC124    Oil    Early Miocene    75% (BHP
Operator)
   17 November
2021
   764 m    10,114 m    Plugged &
Abandoned;
Encountered
sub-commercial
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.

 

BHP Operational Review for the nine months ended 31 March 2022    8


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.

 

BHP Operational Review for the nine months ended 31 March 2022    9


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

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Stefanie Wilkinson

Group Company Secretary

 

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BHP Operational Review for the nine months ended 31 March 2022    10


Production summary

           Quarter ended      Year to date  
     BHP
interest
    Mar
2021
     Jun
2021
     Sep
2021
     Dec
2021
     Mar
2022
     Mar 2022      Mar 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  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2022    11


Production summary

 

             
           Quarter ended      Year to date  
     BHP
interest
    Mar
2021
     Jun
2021
     Sep
2021
     Dec
2021
     Mar
2022
     Mar
2022
     Mar 2021  

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  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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.

 

BHP Operational Review for the nine months ended 31 March 2022    12


Production and sales report

 

          Quarter ended      Year to 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  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Payable gold concentrate

   (troy oz)      37,954        38,893        41,962        42,937        36,303        121,202        128,075  

Payable silver concentrate

   (troy 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  

Payable gold concentrate

   (troy oz)      37,954        38,893        41,962        42,937        36,303        121,202        128,075  

Payable silver concentrate

   (troy 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%.

 

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  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Payable gold concentrate

   (troy oz)      —          4,728        6,967        5,776        7,929        20,672        —    

Payable silver concentrate

   (troy 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  

Payable gold concentrate

   (troy oz)      —          4,728.0        6,967.0        5,776.0        7,929        20,672        —    

Payable silver concentrate

   (troy koz)      —          214.0        273.0        215.0        261        749        —    

Payable molybdenum

   (t)      —          —          —          —          —          —          —    

 

BHP Operational Review for the nine months ended 31 March 2022    13


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  

Payable silver

   (troy 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  

Payable silver

   (troy 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  

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  

Refined gold

   (troy oz)      37,075        48,478        26,277        37,805        29,355        93,437        97,520  

Refined silver

   (troy 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  

Refined gold

   (troy oz)      38,852        47,300        24,654        38,768        30,935        94,357        96,296  

Refined silver

   (troy koz)      242        245        126        290        182        598        629  

 

(1)

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

 

BHP Operational Review for the nine months ended 31 March 2022    14


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  

 

BHP Operational Review for the nine months ended 31 March 2022    15


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.

 

    

    

    

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.

 

BHP Operational Review for the nine months ended 31 March 2022    16


Production and sales report                                    
           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.

 

BHP Operational Review for the nine months ended 31 March 2022    17


Production and sales report

 

           Quarter ended      Year to date  
         Mar
2021
     Jun
2021
     Sep
2021
     Dec
2021
     Mar
2022
     Mar
2022
     Mar
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  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

BHP Operational Review for the nine months ended 31 March 2022    18


Production and sales report

 

                                                      
           Quarter ended      Year to date  
         Mar
2021
     Jun
2021
     Sep
2021
     Dec
2021
     Mar
2022
     Mar
2022
     Mar
2021
 

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  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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.

 

BHP Operational Review for the nine months ended 31 March 2022    19


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
Date: April 21, 2022     By:  

/s/ Stefanie Wilkinson

    Name:   Stefanie Wilkinson
    Title:   Group Company Secretary
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