Other
Nickel production
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Sep Q20
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Sep Q20
vs
Sep Q19
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Sep Q20
vs
Jun Q20
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Nickel (kt)
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22.2
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3
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%
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(7
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%)
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Nickel Nickel West production increased by three per cent to 22 kt, reflecting improved operational stability
and strong performance from the new mines. Planned biannual maintenance at the Kalgoorlie Smelter and Kwinana Refinery was completed during the September 2020 quarter. Guidance for the 2021 financial year remains unchanged at between 85 and 95 kt.
Operations Services The Operations Services team continues to grow, with over 3,300 permanent jobs now created in Australia, successfully
accelerating safety, productivity and efficiency outcomes across WAIO, Queensland Coal and NSWEC. In October 2020, BHP committed 2,500 additional apprenticeship and traineeship positions which will be made available through the first two BHP
FutureFit academies in Mackay in Queensland and Perth in Western Australia, over the next five years.
Potash project
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Project and
ownership
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Investment
US$M
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Scope
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Progress
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Jansen Potash
(Canada)
100%
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2,972
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Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.
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Budget revised to fund the completion of the shafts. The project is 86% complete(i).
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(i)
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Project percentage completion rebased on US$2,972 million revised budget (previously US$2,700 million).
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Following delays to completion of the shafts as a result of initial challenges with placement of the shaft lining, since rectified, and
impacts from our COVID-19 response plan, the budget to fund the completion of the shafts has been increased by US$272 million in October 2020. The revised budget for the current scope of work is now
US$3.0 billion.
Minerals exploration
Minerals
exploration expenditure for the September 2020 quarter was US$44 million, of which US$27 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Mexico, Peru,
Canada, South Australia and the south-west United States.
At Oak Dam in South Australia, the third phase of the exploration drilling program continues to
deliver encouraging results. Further high grade mineralised intercepts of copper, with associated gold, uranium and silver, were confirmed. Multiple intervals ranging between 0.24 and 4.20 per cent copper were identified by laboratory assay
results from 12 of the 14 drill holes, totalling 21,543 metres. For further details refer to Appendix 1. The exploration project will now be transferred to the Minerals Australia Planning and Technical team for assessment, and next stage resource
definition drilling to inform future design is expected to commence in the first half of the 2021 calendar year.
In August 2020, BHP signed an agreement
with Midland Exploration to undertake a nickel exploration alliance in north-eastern Quebec, Canada. The main objective of this agreement is to identify, test and develop high quality exploration targets towards the discovery of new significant
nickel deposits.
In September 2020, BHP entered into an Option Agreement with Encounter Resources covering the 4,500 km2 prospective Elliott Copper
Project in the Northern Territory, Australia. It provides BHP with the right, following the completion of a jointly designed validation program, to enter an earn-in and joint venture agreement to earn up to
75 per cent interest in Elliott by spending up to A$22 million over 10 years.
BHPs acquisition of the Honeymoon Well tenements and a
50 per cent interest in the Albion Downs North and Jericho exploration joint ventures was also completed in September 2020. The Honeymoon Well increases Nickel Wests position in one of the worlds major Nickel sulphide provinces and
the exploration joint ventures provide us with new access to prospective tenements. Several deposits are under consideration and are expected to be included in Nickel West long term plans in the future.
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BHP Operational Review for the quarter ended 30 September 2020
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10
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