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

17 October 2024

 

 

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

 

 

 


LOGO          17 October 2024

Operational review for the quarter ended 30 September 2024

Strong operational performance with increased copper, iron ore and coal production.

“BHP had a strong start to the 2025 financial year, with production up across all major commodities for the quarter. Copper production was up 4% due to higher grade and recoveries at Escondida, and WAIO production was up 3% as we unlocked capacity by completing the debottlenecking work at the port.

We are also seeing signs of stabilisation in our steelmaking coal business with production up 20% in the quarter, excluding the recently divested Blackwater and Daunia mines.

We added to our copper growth prospects in the quarter, announcing a proposed 50/50 joint venture in Argentina with Lundin Mining to advance what we consider to be one of the most significant global copper discoveries in decades.

In Canada, our Jansen Stage 1 potash project is 58% complete after a productive summer period with first production scheduled in around two years.

China has announced a series of monetary easing policies in an effort to support economic growth, and has indicated more significant fiscal stimulus is on the horizon. Upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.”

 

  

Mike Henry

BHP Chief Executive Officer

Summary

 

  
   

Operational excellence

  

Social value

On track to meet FY25 production guidance

  

Climate Transition Action Plan

Strong operational performance with copper production increasing 4% driven by higher concentrator feed grades and recoveries at Escondida. Production at WAIO increased 2% following commissioning of the Port Debottlenecking Project (PDP1) and completion of the South Flank ramp up.   

We released our second Climate Transition Action Plan (CTAP) which lays out our climate strategy and GHG emissions goals and targets, and provides an in depth view of our plans and how we’re progressing against them. The CTAP will be put to a shareholder advisory vote at our upcoming AGM on 30 October 2024. We also announced collaborations with India’s JSW Steel and Carbon Clean and Steel Authority of India to support decarbonisation technology in steelmaking.

 

   

Portfolio

  

Outlook

Increased exposure to copper

  

Copper outlook supports growth pipeline

In July, we agreed to jointly acquire Filo Corp. with Lundin Mining through a Canadian plan of arrangement. In September, the Filo Corp shareholders approved the plan of arrangement. We also agreed to form a 50/50 joint venture with Lundin Mining to consolidate and advance the Filo del Sol and Josemaria copper projects. We expect the transaction to complete in Q3 FY25, subject to regulatory approvals.    We published our outlook for the copper market, including copper demand, copper supply and long-term copper pricing. We expect copper demand to grow by 70% by 2050, as a result of traditional economic growth, electrification and the energy transition, and digital infrastructure (including data centres). We will be hosting an investor site visit to our Chilean copper assets in November 2024 to outline our attractive organic copper growth pipeline in the region.

 

     
Production    Quarter performance     Production guidance  
 
     Q1 FY25      v Q4 FY24     v Q1 FY24     Current FY25
guidance
       
           

Copper (kt)

     476.3        (6 %)      4     1,845 – 2,045          
 

Escondida (kt)

     304.2        (2 %)      11     1,180 – 1,300       Unchanged  
 

Pampa Norte (kt)i

     60.1        (9 %)      (23 %)i      240 – 270 i      Unchanged  
 

Copper South Australia (kt)

     73.4        (18 %)      2     310 – 340       Unchanged  
 

Antamina (kt)

     36.3        (5 %)      12     115 – 135       Unchanged  
 

Carajás (kt)

     2.3        10     92     -       -  
           

Iron ore (Mt)

     64.6        (7 %)      2     255 – 265.5          
 

WAIO (Mt)

     63.4        (7 %)      2     250 – 260       Unchanged  
 

WAIO (100% basis) (Mt)

     71.6        (7 %)      3     282 – 294       Unchanged  
 

Samarco (Mt)

     1.3        23     4     5 – 5.5       Unchanged  
           

Steelmaking coal – BMA (Mt)

     4.5        (8 %)      (19 %)ii      16.5 – 19          
 

BMA (100% basis) (Mt)

     9.0        (8 %)      (19 %)ii      33 – 38       Unchanged  
           

Energy coal – NSWEC (Mt)

     3.7        (2 %)      2     13 – 15       Unchanged  
 

Nickel – Western Australia Nickel (kt)

     19.6        (15 %)      (3 %)      -       -  

 

i

Q1 FY24 includes 9.5 kt from Cerro Colorado which entered care and maintenance in December 2023. Excluding these volumes, Q1 FY25 production decreased 13%. Production guidance for FY25 is for Spence only. Refer to production and sales report and copper for further information.

ii

Q1 FY24 production includes 1.8 Mt (3.7 Mt on a 100% basis) from Blackwater and Daunia mines which were divested on 2 April 2024. Excluding these volumes, Q1 FY25 production increased 20%. Refer to production and sales report and steelmaking coal for further information.


BHP | Operational review for the year ended 30 September 2024

 

Segment and asset performance | FY25 YTD v FY24 YTD

 

 

LOGO

 

  

 

Further information in Appendix 1

 

Detailed production and sales information for all operations in Appendix 2

 

Copper   

Production

 

476 kt LOGO 4%

 

Q1 FY24 457 kt

 

FY25e 1,845 – 2,045 kt

 

Average realised price

 

US$4.24/lb LOGO 17%

 

Q1 FY24 US$3.63/lb

  

Total copper production increased 4% to 476 kt. Copper production guidance for FY25 remains unchanged at between 1,845 and 2,045 kt.

 

Escondida 304 kt LOGO 11% (100% basis)

 

Increased production primarily due to a higher concentrator feed grade of 1.00% (Q1 FY24: 0.85%) and higher recoveries as mining progressed into areas of higher-grade ore as planned. This was partially offset by planned lower cathode production, as the integration of the FullSaL project continued. The project remains on track for first production later in FY25.

 

A new collective agreement with Union N°1 of Operators and Maintainers was signed and became effective for 36 months from 2 August 2024. The associated industrial action did not have a material impact on production during the quarter as a result of mitigating actions taken by management, including mine resequencing and prioritisation of ore movement.

 

During Q1 FY25, one access ramp into the PL1 high grade mining area was impacted by geotechnical instability. We utilised alternative access ramps and completed stabilisation works, and as a result no material production impacts are expected.

 

Production guidance for FY25 remains unchanged at between 1,180 and 1,300 kt, weighted to the second half. Concentrator feed grade for FY25 is expected to remain above 0.90%.

 

Pampa Norte 60 kt LOGO 23%

 

   Spence production decreased 13% as expected, as a result of lower cathode production in line with an expected decline in stacked feed grade and planned quarterly maintenance at the concentrator. Concentrator feed grade and recoveries are in line with prior periods.
   Production guidance for Spence remains unchanged at between 240 and 270 kt for FY25.
   Cerro Colorado remains in temporary care and maintenance (having contributed 9.5 kt in Q1 FY24).
  

Copper South Australia 73 kt LOGO 2%

   Higher production primarily driven by strong underlying operational performance, particularly at Carrapateena following the commissioning of Crusher 2 in Q3 FY24 which has enabled higher productivity from the sub-level cave and resulted in an increase in ore mined and milled. We also completed planned major maintenance at Olympic Dam on the hoist and underground materials handling system, and annual planned maintenance at the refinery. Production was lower at Prominent Hill due to minor pit geotechnical instability and ventilation constraints which impacted trucking capacity and ore mined, both of which have since been rectified.
   Production guidance for FY25 remains unchanged at between 310 and 340 kt, weighted to the second half.
  

Other copper

   At Antamina, copper production increased 12% to 36 kt as a result of higher ore grade and recoveries, partially offset by planned lower concentrator throughput. Zinc production was 46% lower at 19 kt, as a result of planned lower feed grades. FY25 copper production guidance of between 115 and 135 kt and zinc production guidance of between 90 and 110 kt remain unchanged.
   Carajás produced 2.3 kt of copper and 1.7 troy koz of gold.

 

2


BHP | Operational review for the year ended 30 September 2024

 

Iron ore

 

Production

 

65 Mt LOGO 2%

 

Q1 FY24 63 Mt

 

FY25e 255 – 265.5 Mt

 

Average realised price

 

US$80.10/wmt LOGO 18%

 

Q1 FY24 US$98.04/wmt

  

Iron ore production increased 2% to 65 Mt. Production guidance for FY25 remains unchanged at between 255 and 265.5 Mt.

 

WAIO 63.4 Mt LOGO 2% | 71.6 Mt (100% basis)

 

Production increased as a result of strong supply chain performance with increased capacity unlocked by PDP1. Higher volumes were delivered from the Central Pilbara hub (South Flank and Mining Area C) following the completion of South Flank ramp up in FY24. We continue to progress the multi-year Rail Technology Program (RTP1), with tie-in activity increasing in FY25.

 

Production guidance for FY25 remains unchanged at between 250 and 260 Mt (282 and 294 Mt on a 100% basis).

 

Samarco 1.3 Mt LOGO 4% | 2.6 Mt (100% basis)]

 

Production increased due to early resumption of Pelletizing Plant No. 4 enabling improved performance. Production guidance for FY25 remains unchanged at between 5 and 5.5 Mt. The second concentrator at Samarco is expected to come online during Q3 FY25, which will increase production capacity to ~16 Mtpa of pellets (100% basis) once fully ramped up, which is expected to be by the end of FY26.

 

BHP Brasil, Samarco and Vale have been engaging in negotiations with the Brazilian State and Federal Governments and other public entities to seek a settlement of obligations under the Framework Agreement, the Federal Public Prosecution Office Claim, and other claims by government entities relating to the Samarco dam failure. Those negotiations are ongoing.

 

BHP Group Limited and BHP Group (UK) Limited are defendants to a group action claim in the English High Court, brought by over 600,000 claimants seeking damages in relation to the Fundão Dam failure in 2015. The liability hearing for the group action will begin on 21 October 2024.

 

Coal

 

Steelmaking coal

 

  

Production

 

4.5 Mt LOGO 19%

 

Q1 FY24 5.6 Mt

 

FY25e 16.5 – 19 Mt

 

Average realised price

 

US$214.86/t LOGO 9%

 

Q1 FY24 US$237.07/t

 

  

BMA 4.5 Mt LOGO 19% | 9 Mt (100% basis)

 

Production increased 20% (excluding 1.8 Mt from Blackwater and Daunia in Q1 FY24), due to increased stripping enabled by improved truck productivity as well as Q1 FY24 being impacted by the extended longwall move at Broadmeadow. We maintain our focus on restoring value chain stability, with an increase in raw coal inventory, which will continue into CY26.

 

During the quarter we completed planned maintenance at Goonyella Riverside and Hay Point Coal Terminal, and commenced a longwall move at Broadmeadow.

 

Production guidance for FY25 remains unchanged at between 16.5 and 19 Mt (33 and 38 Mt on a 100% basis).

 

3


BHP | Operational review for the year ended 30 September 2024

 

Energy coal

 

  

Production

 

3.7 Mt LOGO 2%

 

Q1 FY24 3.6 Mt

 

FY25e 13 – 15 Mt

 

Average realised price

 

US$124.32/t LOGO 1%

 

Q1 FY24 US$125.66/t

  

NSWEC 3.7 Mt LOGO 2%

 

Production increased 2%, including a higher proportion of washed coal in line with our strategy of prioritising higher quality coals. This was enabled by a drawdown of inventory to offset the impacts of reduced truck availability and unfavourable weather conditions.

 

Production guidance for FY25 remains unchanged at between 13 and 15 Mt.

 

The modification to extend mining consent to 30 June 2030 is currently being assessed by the NSW Government with an outcome anticipated in Q3 FY25.

 

 

Group & Unallocated

Nickel   
Production    Western Australia Nickel 19.6 kt LOGO 3%

19.6 kt LOGO 3%

 

Q1 FY24 20.2 kt

 

Average realised price

 

US$16,359/t LOGO 20%

 

Q1 FY24 US$20,354/t

  

Production decreased as we commenced the temporary suspension of operations at Nickel West. Operations will be suspended from October 2024 and handover activities will be completed by December 2024. We continue to support the workforce through this transition period and have made redeployment offers to a large portion of our frontline employees.

 

We expect costs to remain elevated during the transition to suspension in the first half and we plan to invest ~US$300 m per annum beginning in January 2025 to preserve optionality for a potential restart.

 

No production guidance has been provided for FY25.

Quarterly performance | Q1 FY25 v Q4 FY24

 

 

Copper

 

     

 

Iron ore

 

   

476 kt LOGO 6%

 

Q4 FY24 505 kt

  Lower production due to planned maintenance, in particular across Copper SA, lower concentrator throughput and production across leaching at Escondida due to mine sequencing, and planned lower grades at Spence.  

65 Mt LOGO 7%

 

Q4 FY24 69 Mt

  Lower production at WAIO as a result of planned equipment maintenance and increased RTP1 tie-in activity.

 

Steelmaking coal

 

 

 

Energy coal

 

4.5 Mt LOGO 8%

 

Q4 FY24 4.9 Mt

 

Lower production as a result of the ramp down and commencement of the longwall move at Broadmeadow in Q1 FY25, and higher yield and lower strip ratio in the prior quarter as a result of mine sequencing.

 

 

3.7 Mt LOGO 2%

 

Q4 FY24 3.8 Mt

  Slightly lower production due to operational challenges from truck availability and wet weather, partially offset by a drawdown of inventory.

 

Nickel

 

           

19.6 kt LOGO 15%

 

Q4 FY24 23.0 kt

 

Lower production as transition of operations to temporary suspension commenced.

 

       

 

 

4


BHP | Operational review for the year ended 30 September 2024

 

Appendix 1

Average realised pricesi

 

      Quarter  
      Q1 FY25      v Q4 FY24     v Q1 FY24  

Copper (US$/lb)ii

     4.24        (7 %)      17

Iron ore (US$/wmt, FOB)

     80.10        (12 %)      (18 %) 

Steelmaking coal (US$/t)iii

     214.86        (12 %)      (9 %) 

Thermal coal (US$/t)iv

     124.32        1     (1 %) 

Nickel metal (US$/t)v

     16,359        (11 %)      (20 %) 

 

i

Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments.

 

ii

Sales from Carrapateena and Prominent Hill acquired through the purchase of OZL are included from Q4 FY24.

 

iii

From FY25, steelmaking coal refers to Hard Coking Coal which is generally those steelmaking coals with a Coke Strength after Reaction (CSR) of 35 and above, and includes coals across the spectrum from Premium Coking to Semi Hard Coking coals. Comparative periods include impacts from Weak Coking Coal, which refers generally to those steelmaking coals with a CSR below 35, which were sold by Blackwater and Daunia mines, divested on 2 April 2024.

 

iv

Export sales only. Includes thermal coal sales from steelmaking coal mines.

 

v

Relates to refined nickel metal only, excludes intermediate products and nickel sulphate.

Current year unit cost guidance

 

Unit cost     

Current

 

FY25 guidancei

           

Escondida (US$/lb)

       1.30 –1.60          Unchanged  

Spence (US$/lb)

       2.00 – 2.30          Unchanged  

Copper South Australia (US$/lb)

       1.30 –1.80 ii          Unchanged  

WAIO (US$/t)

       18.00 –19.50          Unchanged  

BMA (US$/t)

       112 – 124          Unchanged  

 

i

FY25 unit cost guidance is based on exchange rates of AUD/USD 0.66 and USD/CLP 842.

 

ii

Calculated using the following assumptions for by-products: gold US$2,000/oz, and uranium US$80/lb.

Medium term guidancei

 

        Production
guidance
       Unit cost
guidanceii
 

Escondidaiii

       900 –1,000 ktpa        US$ 1.50 –1.80/lb  

Spence

       ~250 ktpa        US$ 2.05 – 2.35/lb  

WAIO

       >305 Mtpa          <US$17.50/t  

BMA

       43 – 45 Mtpa          <US$110/t  

 

i

Medium term refers to a five year time horizon unless otherwise noted.

 

ii

Unit cost guidance is based on exchange rates of AUD/USD 0.66 and USD/CLP 842.

 

iii

Medium term refers to FY27 onwards. Production for FY25 and FY26 are expected to average between 1,200 and 1,300 kt.

Major projects

 

Commodity    Project and ownership   Project scope / capacity   

Capital

expenditure

US$M

    

First

production

target date

     Progress  

Potash

   Jansen Stage 1
(Canada)
100%
  Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.15 Mtpa.      5,723        End-CY26       

Project is 58

complete


 

Potash

   Jansen Stage 2
(Canada)
100%
  Development of additional mining districts, completion of the second shaft hoist infrastructure, expansion of processing facilities and addition of rail cars to facilitate production of an incremental 4.36 Mtpa.      4,859        FY29       

Project is 4

complete


 

The operating expenditure related to Potash for FY25 is expected to be ~US$300 m.

Exploration

Minerals exploration and evaluation expenditure was US$104 m for Q1 FY25 (Q1 FY24: US$105 m) of which US$91 m was expensed (Q1 FY24: US$93 m).

 

5


BHP | Operational Review for the quarter ended 30 September 2024

 

Appendix 2

 

            Production                 Sales  
            Quarter ended           Year to date                 Quarter ended           Year to date  
            Sep     Dec     Mar     Jun     Sep           Sep     Sep     Var                 Sep     Dec     Mar     Jun     Sep           Sep     Sep     Var  
            2023     2023     2024     2024     2024           2024     2023     %                 2023     2023     2024     2024     2024           2024     2023     %  

Group production and sales summary

 

                     

By commodity

 

                     

Metals production is payable metal unless otherwise noted.

 

                                             

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

 

                                                                                                       

Copper

  Payable metal in concentrate   kt     317.3       308.7       339.0       370.4       360.9         360.9       317.3       14         298.0       316.5       281.5       378.7       429.1         429.1       298.0       44
  Escondida   kt     221.3       207.7       239.2       258.5       264.8         264.8       221.3       20         209.5       211.7       204.0       261.3       310.8         310.8       209.5       48
  Pampa Norte   kt     38.8       32.6       39.5       39.4       35.7         35.7       38.8       (8 )%          31.3       34.9       26.9       49.3       44.0         44.0       31.3       41
  Copper South Australia   kt     23.5       27.4       23.3       32.1       21.8         21.8       23.5       (7 )%          22.2       31.6       17.1       28.0       30.4         30.4       22.2       37
  Antamina   kt     32.5       39.2       33.9       38.3       36.3         36.3       32.5       12         32.8       38.3       31.3       37.4       39.6         39.6       32.8       21
  Carajás   kt     1.2       1.8       3.1       2.1       2.3         2.3       1.2       92         2.2       -       2.2       2.7       4.3         4.3       2.2       95
  Cathode   kt     139.7       128.7       126.8       134.4       115.4         115.4       139.7       (17 )%          131.9       137.6       120.1       142.3       110.7         110.7       131.9       (16 )% 
  Escondida   kt     52.0       46.9       49.0       50.7       39.4         39.4       52.0       (24 )%          49.2       52.2       44.3       54.6       37.6         37.6       49.2       (24 )% 
  Pampa Norte   kt     39.5       27.2       22.1       26.5       24.4         24.4       39.5       (38 )%          36.6       31.1       22.1       26.5       24.1         24.1       36.6       (34 )% 
  Copper South Australia   kt     48.2       54.6       55.7       57.2       51.6         51.6       48.2       7         46.1       54.3       53.7       61.2       49.0         49.0       46.1       6
    Total   kt     457.0       437.4       465.8       504.8       476.3         476.3       457.0       4         429.9       454.1       401.6       521.0       539.8         539.8       429.9       26

Lead

  Payable metal in concentrate   t     96       105       -       131       21         21       96       (78 )%          154       91       108       9       125         125       154       (19 )% 
    Antamina   t     96       105       -       131       21         21       96       (78 )%          154       91       108       9       125         125       154       (19 )% 

Zinc

  Payable metal in concentrate   t     35,669       33,475       18,409       15,839       19,374         19,374       35,669       (46 )%          33,912       37,092       17,559       14,118       19,609         19,609       33,912       (42 )% 
    Antamina   t     35,669       33,475       18,409       15,839       19,374         19,374       35,669       (46 )%          33,912       37,092       17,559       14,118       19,609         19,609       33,912       (42 )% 

Gold

  Payable metal in concentrate   troy oz     89,020       94,768       79,159       100,013       85,668         85,668       89,020       (4 )%          87,687       98,969       70,398       92,323       98,936         98,936       87,687       13
  Escondida   troy oz     48,063       48,633       38,955       45,410       46,963         46,963       48,063       (2 )%          48,063       48,633       38,955       45,410       46,963         46,963       48,063       (2 )% 
  Pampa Norte   troy oz     3,931       2,854       1,819       4,676       4,043         4,043       3,931       3         3,931       2,854       1,819       4,676       4,043         4,043       3,931       3
  Copper South Australia   troy oz     36,228       42,051       36,427       48,355       32,928         32,928       36,228       (9 )%          34,176       47,482       28,136       40,507       44,761         44,761       34,176       31
  Carajás   troy oz     798       1,230       1,958       1,572       1,734         1,734       798       117         1,517       -       1,488       1,730       3,169         3,169       1,517       109
  Refined gold   troy oz     53,028       55,828       49,128       49,139       37,385         37,385       53,028       (29 )%          54,036       55,349       41,710       52,687       40,326         40,326       54,036       (25 )% 
  Copper South Australia   troy oz     53,028       55,828       49,128       49,139       37,385         37,385       53,028       (29 )%          54,036       55,349       41,710       52,687       40,326         40,326       54,036       (25 )% 
    Total   troy oz     142,048       150,596       128,287       149,152       123,053         123,053       142,048       (13 )%          141,723       154,318       112,108       145,010       139,262         139,262       141,723       (2 )% 

Silver

  Payable metal in concentrate   troy koz     2,582       3,074       2,620       3,317       3,150         3,150       2,582       22         2,527       2,938       2,431       3,137       3,126         3,126       2,527       24
  Escondida   troy koz     1,168       1,401       1,328       1,549       1,546         1,546       1,168       32         1,168       1,401       1,328       1,549       1,546         1,546       1,168       32
  Pampa Norte   troy koz     356       388       327       583       503         503       356       41         356       388       327       583       503         503       356       41
  Copper South Australia   troy koz     260       310       252       312       223         223       260       (14 )%          258       364       189       311       295         295       258       14
  Antamina   troy koz     798       975       713       873       878         878       798       10         745       785       587       694       782         782       745       5
  Refined silver   troy koz     261       221       248       265       206         206       261       (21 )%          219       222       188       329       202         202       219       (8 )% 
  Copper South Australia   troy koz     261       221       248       265       206         206       261       (21 )%          219       222       188       329       202         202       219       (8 )% 
    Total   troy koz     2,843       3,295       2,868       3,582       3,356         3,356       2,843       18         2,746       3,160       2,619       3,466       3,328         6,454       5,273       22

Uranium

  Payable metal in concentrate   t     825       986       863       929       672         672       825       (19 )%          481       895       394       1,554       677         677       481       41
    Copper South Australia   t     825       986       863       929       672         672       825       (19 )%          481       895       394       1,554       677         677       481       41

Molybdenum

  Payable metal in concentrate   t     612       481       824       699       1,084         1,084       612       77         564       468       677       678       862         862       564       53
  Pampa Norte   t     329       145       203       117       182         182       329       (45 )%          303       162       219       134       181         181       303       (40 )% 
    Antamina   t     283       336       621       582       902         902       283       219         261       306       458       544       681         681       261       161

Iron ore

  Western Australia Iron Ore (WAIO)   kt     62,004       64,460       60,299       68,173       63,363         63,363       62,004       2         64,180       62,606       61,868       67,323       63,408         63,408       64,180       (1 )% 
  Samarco   kt     1,231       1,302       1,174       1,041       1,285         1,285       1,231       4         1,136       1,329       1,258       1,043       1,002         1,002       1,136       (12 )% 
    Total   kt     63,235       65,762       61,473       69,214       64,648         64,648       63,235       2         65,316       63,935       63,126       68,366       64,410         64,410       65,316       (1 )% 

Steelmaking coal¹

  BHP Mitsubishi Alliance (BMA)   kt     5,601       5,717       6,035       4,922       4,515         4,515       5,601       (19 )%          5,325       5,706       6,359       4,904       4,273         4,273       5,325       (20 )% 

Energy coal

  NSW Energy Coal (NSWEC)   kt     3,613       3,855       4,149       3,751       3,675         3,675       3,613       2         3,307       4,250       3,932       3,678       3,951         3,951       3,307       19

Nickel

  Western Australia Nickel   kt     20.2       19.6       18.8       23.0       19.6         19.6       20.2       (3 )%          18.9       20.0       18.8       23.2       19.9         19.9       18.9       5

Cobalt

  Western Australia Nickel   t     192       182       179       181       294         294       192       53         192       110       179       181       294         294       192       53

1 Includes BMA thermal coal sales.

 

6


BHP | Operational Review for the quarter ended 30 September 2024

 

           

 

Production

 

           

 

Sales

 

 
            Quarter ended         Year to date             Quarter ended         Year to date  
            Sep
2023
    Dec
2023
    Mar
2024
    Jun
2024
    Sep
2024
        Sep
2024
    Sep
2023
    Var
%
            Sep
2023
    Dec
2023
    Mar
2024
    Jun
2024
    Sep
2024
        Sep
2024
    Sep
2023
    Var
%
 

Production and sales

                                         

By asset

                                         

Copper

                                         
 

Metals production is payable metal unless otherwise noted.

                                         

Escondida, Chile¹

  BHP interest 57.5%

 

                                     
  Material mined   kt     87,462       95,168       103,872       102,752       100,416         100,416       87,462       15                      
  Concentrator throughput   kt     33,332       34,752       31,653       34,377       32,488         32,488       33,332       (3 )%                       
  Average copper grade—concentrator   %     0.85%       0.78%       0.92%       0.99%       1.00%         1.00%       0.85%       18                      
  Production ex mill   kt     225.7       217.6       238.6       279.5       269.9         269.9       225.7       20                                                                      
  Payable copper   kt     221.3       207.7       239.2       258.5       264.8         264.8       221.3       20         209.5       211.7       204.0       261.3       310.8         310.8       209.5       48
  Copper cathode (EW)   kt     52.0       46.9       49.0       50.7       39.4         39.4       52.0       (24 )%          49.2       52.2       44.3       54.6       37.6         37.6       49.2       (24)
  Oxide leach   kt     17.5       17.0       14.4       13.8       7.8         7.8       17.5       (55 )%                       
  Sulphide leach   kt     34.5       29.9       34.6       36.9       31.6         31.6       34.5       (8 )%                       
  Total copper   kt     273.3       254.6       288.2       309.2       304.2         304.2       273.3       11         258.7       263.9       248.3       315.9       348.4         348.4       258.7       35
  Payable gold concentrate   troy oz     48,063       48,633       38,955       45,410       46,963         46,963       48,063       (2 )%          48,063       48,633       38,955       45,410       46,963         46,963       48,063       (2)
    Payable silver concentrate   troy koz     1,168       1,401       1,328       1,549       1,546         1,546       1,168       32         1,168       1,401       1,328       1,549       1,546         1,546       1,168       32

1 Shown on a 100% basis.

                                         

Pampa Norte, Chile

  BHP interest 100%                                        

Copper

  Payable metal in concentrate   kt     38.8       32.6       39.5       39.4       35.7         35.7       38.8       (8 )%          31.3       34.9       26.9       49.3       44.0         44.0       31.3       41
  Cathode   kt     39.5       27.2       22.1       26.5       24.4         24.4       39.5       (38 )%          36.6       31.1       22.1       26.5       24.1         24.1       36.6       (34)
    Total copper   kt     78.3       59.8       61.6       65.9       60.1         60.1       78.3       (23 )%          67.9       66.0       49.0       75.8       68.1         68.1       67.9       0

Gold

      troy oz     3,931       2,854       1,819       4,676       4,043         4,043       3,931       3         3,931       2,854       1,819       4,676       4,043         4,043       3,931       3

Silver

      troy koz     356       388       327       583       503         503       356       41         356       388       327       583       503         503       356       41

Molybdenum

      t     329       145       203       117       182         182       329       (45 )%          303       162       219       134       181         181       303       (40)
                                                                                                                         

Cerro Colorado¹

                                           
  Material mined   kt     -       -       -       -       -         -       -       -                        
  Ore stacked   kt     154       -       -       -       -         -       154       (100 )%                       
  Average copper grade—stacked   %     0.58%       -       -       -       -         -       0.58%       (100 )%                                                                       
  Copper cathode (EW)   kt     9.5       1.6       -       -       -         -       9.5       (100 )%          8.8       3.7       -       -       -         -       8.8       (100)
                                                                                                                         

Spence

                                           
  Material mined   kt     27,654       25,973       15,968       19,951       23,260         23,260       27,654       (16 )%                       
  Ore stacked   kt     5,113       4,744       6,008       5,926       4,928         4,928       5,113       (4 )%                       
  Average copper grade—stacked   %     0.60%       0.59%       0.56%       0.54%       0.73%         0.73%       0.60%       22                      
  Concentrator throughput   kt     8,473       7,151       8,055       7,766       7,547         7,547       8,473       (11 )%                       
  Average copper grade—concentrator   %     0.64%       0.65%       0.64%       0.70%       0.64%         0.64%       0.64%       0%                                                                        
  Payable copper   kt     38.8       32.6       39.5       39.4       35.7         35.7       38.8       (8 )%          31.3       34.9       26.9       49.3       44.0         44.0       31.3       41
  Copper cathode (EW)   kt     30.0       25.6       22.1       26.5       24.4         24.4       30.0       (19 )%          27.8       27.4       22.1       26.5       24.1         24.1       27.8       (13)
  Total copper   kt     68.8       58.2       61.6       65.9       60.1         60.1       68.8       (13 )%          59.1       62.3       49.0       75.8       68.1         68.1       59.1       15
  Payable gold concentrate   troy oz     3,931       2,854       1,819       4,676       4,043         4,043       3,931       3         3,931       2,854       1,819       4,676       4,043         4,043       3,931       3
  Payable silver concentrate   troy koz     356       388       327       583       503         503       356       41         356       388       327       583       503         503       356       41
    Payable molybdenum   t     329       145       203       117       182         182       329       (45 )%          303       162       219       134       181         181       303       (40)

1 Cerro Colorado entered temporary care and maintenance in December 2023.

 

7


BHP | Operational Review for the quarter ended 30 September 2024

 

             Production                 Sales  
             Quarter ended           Year to date                 Quarter ended           Year to date  
             Sep     Dec     Mar     Jun     Sep           Sep     Sep     Var                 Sep     Dec     Mar     Jun     Sep           Sep     Sep     Var  
             2023     2023     2024     2024     2024         2024     2023     %             2023     2023     2024     2024     2024         2024     2023     %  

Copper (continued)

                                         

Copper South Australia, Australia

  BHP interest 100%

 

                                     

Copper

   Payable metal in concentrate   kt     26.2       30.6       27.4       34.7       27.9         27.9       26.2       6%           22.2       31.6       17.1       28.0       30.4         30.4       22.2       37%  
   Cathode   kt     48.2       54.6       55.7       57.2       51.6         51.6       48.2       7%           46.1       54.3       53.7       61.2       49.0         49.0       46.1       6%  
   Total copper   kt     74.4       85.2       83.1       91.9       79.5         79.5       74.4       7%           68.3       85.9       70.8       89.2       79.4         79.4       68.3       16%  
   Payable metal in concentrate transfer to Olympic Dam¹   kt     (2.7)       (3.2)       (4.1)       (2.6)       (6.1)         (6.1)       (2.7)       126%                        
     Net copper   kt     71.7       82       79       89.3       73.4         73.4       71.7       2%                                                                        

Gold

   Payable metal in concentrate   troy oz     41,424       48,051       43,209       52,045       46,452         46,452       41,424       12%           34,176       47,482       28,136       40,507       44,761         44,761       34,176       31%  
   Refined gold   troy oz     53,028       55,828       49,128       49,139       37,385         37,385       53,028       (29)%           54,036       55,349       41,710       52,687       40,326         40,326       54,036       (25)%  
   Total gold   troy oz     94,452       103,879       92,337       101,184       83,837         83,837       94,452       (11)%           88,212       102,831       69,846       93,194       85,087         85,087       88,212       (4)%  
   Payable metal in concentrate transfer to Olympic Dam¹   troy oz     (5,196)       (6,000)       (6,782)       (3,690)       (13,524)         (13,524)       (5,196)       160%                        
     Net gold   troy oz     89,256       97,879       85,555       97,494       70,313         70,313       89,256       (21)%                                                                        

Silver

   Payable metal in concentrate   troy koz     271       323       282       333       254         254       271       (6)%           258       364       189       311       295         295       258       14%  
   Refined silver   troy koz     261       221       248       265       206         206       261       (21)%           219       222       188       329       202         202       219       (8)%  
   Total silver   troy koz     532       544       530       598       460         460       532       (14)%           477       586       377       640       497         497       477       4%  
   Payable metal in concentrate transfer to Olympic Dam¹   troy koz     (11)       (13)       (30)       (21)       (31)         (31)       (11)       182%                        
     Net silver   troy koz     521       531       500       577       429         429       521       (18)%                                                                        

Uranium

       t     825       986       863       929       672         672       825       (19)%           481       895       394       1,554       677         677       481       41%  
                                            

Olympic Dam

                                            
   Material mined   kt     2,655       2,537       2,747       2,815       2,734         2,734       2,655       3%                        
   Ore milled   kt     2,596       2,634       2,511       2,912       2,617         2,617       2,596       1%                        
   Average copper grade   %     1.96%       2.12%       1.96%       2.00%       1.99%         1.99%       1.96%       2%                        
   Average uranium grade   kg/t     0.56       0.62       0.57       0.58       0.60         0.60       0.56       7%                                                                        
   Copper cathode (ER and EW)   kt     48.2       54.6       55.7       57.2       51.6         51.6       48.2       7%           46.1       54.3       53.7       61.2       49.0         49.0       46.1       6%  
   Refined gold   troy oz     53,028       55,828       49,128       49,139       37,385         37,385       53,028       (29)%           54,036       55,349       41,710       52,687       40,326         40,326       54,036       (25)%  
   Refined silver   troy koz     261       221       248       265       206         206       261       (21)%           219       222       188       329       202         202       219       (8)%  
   Payable uranium   t     825       986       863       929       672         672       825       (19)%           481       895       394       1,554       677         677       481       41%  
                                            

Prominent Hill²

                                            
   Material mined   kt     1,110       1,125       1,094       1,175       927         927       1,110       (16)%                        
   Ore milled   kt     1,652       1,800       1,473       1,815       1,559         1,559       1,652       (6)%                        
   Average copper grade   %     0.85%       0.83%       0.86%       0.94%       0.73%         0.73%       0.85%       (14)%                        
   Concentrate produced   kt     23.8       23.6       22.3       28.4       19.6         19.6       23.8       (18)%                                                                        
   Payable copper   kt     12.1       12.9       10.9       14.6       9.5         9.5       12.1       (21)%           8.4       10.6       6.5       7.3       10.9         10.9       8.4       30%  
   Payable gold concentrate   troy oz     22,031       25,779       21,019       25,357       20,976         20,976       22,031       (5)%           15,524       20,045       14,644       12,955       18,719         18,719       15,524       21%  
   Payable silver concentrate   troy koz     63       65       62       90       63         63       63       0%           53       59       38       48       73         73       53       38%  
                                            

Carrapateena²

                                            
   Material mined   kt     1,201       1,310       1,232       1,486       1,470         1,470       1,201       22%                        
   Ore milled   kt     1,230       1,307       1,226       1,450       1,446         1,446       1,230       18%                        
   Average copper grade   %     1.29%       1.52%       1.52%       1.57%       1.45%         1.45%       1.29%       12%                        
   Concentrate produced   kt     37.6       49.2       45.9       62.0       59.2         59.2       37.6       57%                                                                        
   Payable copper   kt     14.1       17.7       16.5       20.1       18.4         18.4       14.1       30%           13.8       21.0       10.6       20.7       19.5         19.5       13.8       41%  
   Payable gold concentrate   troy oz     19,393       22,272       22,190       26,688       25,476         25,476       19,393       31%           18,652       27,437       13,492       27,552       26,042         26,042       18,652       40%  
     Payable silver concentrate   troy koz     208       258       220       243       191         191       208       (8)%           205       305       151       263       222         222       205       8%  

1 Excludes prior year production previously reported and transferred during the period.

2 Production and sales included from 1 May 2023, following the acquisition of OZL on 2 May 2023.

 

8


BHP | Operational Review for the quarter ended 30 September 2024

 

             Production              Sales  
             Quarter ended          Year to date              Quarter ended          Year to date  
             Sep
2023
     Dec
2023
     Mar
2024
     Jun
2024
     Sep
2024
         Sep
2024
     Sep
2023
    

Var

%

             Sep
2023
     Dec
2023
     Mar
2024
     Jun
2024
     Sep
2024
         Sep
2024
     Sep
2023
    

Var

%

 
                                                         

Copper (continued)

                                                         
 

Antamina, Peru

 

BHP interest 33.75%

 

      
  Material mined  

kt

     63,310        61,539        56,233        62,481        64,094          64,094        63,310        1%                                
  Concentrator throughput  

kt

     14,246        14,824        14,312        14,534        13,096          13,096        14,246        (8)%                                
  Average head grade - copper  

%

     0.83%        0.90%        0.83%        0.91%        0.91%          0.91%        0.83%        10%                                
  Average head grade - zinc  

%

     1.17%        1.03%        0.68%        0.68%        0.67%          0.67%        1.17%        (43)%                                                                                
  Payable copper  

kt

     32.5        39.2        33.9        38.3        36.3          36.3        32.5        12%            32.8        38.3        31.3        37.4        39.6          39.6        32.8        21%  
  Payable zinc  

t

     35,669        33,475        18,409        15,839        19,374          19,374        35,669        (46)%            33,912        37,092        17,559        14,118        19,609          19,609        33,912        (42)%  
  Payable silver  

troy koz

     798        975        713        873        878          878        798        10%            745        785        587        694        782          782        745        5%  
  Payable lead  

t

     96        105        -        131        21          21        96        (78)%            154        91        108        9        125          125        154        (19)%  
    Payable molybdenum  

t

     283        336        621        582        902          902        283        219%            261        306        458        544        681          681        261        161%  
                                                           
 

Carajás, Brazil¹

 

BHP interest 100%

 

      
  Material mined  

kt

     74        115        163        134        180          180        74        143%                                
  Ore milled  

kt

     70        119        163        135        161          161        70        130%                                
  Average copper grade  

%

     1.91%        1.69%        2.07%        1.68%        1.61%          1.61%        1.91%        (16)%                                
  Production ex mill  

kt

     5.2        7.6        12.9        8.8        9.9          9.9        5.2        90%                                                                                
  Payable copper  

kt

     1.2        1.8        3.1        2.1        2.3          2.3        1.2        92%            2.2        -        2.2        2.7