TIDMBHP
RNS Number : 8915S
BHP Group Limited
19 July 2022
Release Time IMMEDIATE
Date 19 July 2022
Release Number 24/22
BHP OPERATIONAL REVIEW
FOR THE YEARED 30 JUNE 2022
Note: All guidance is subject to further potential impacts from
COVID-19 during the 2023 financial year.
-- We continue to deliver safe and reliable production. We
remained fatality free during the year and have delivered record
sales volumes from Western Australia Iron Ore (WAIO), allowing us
to fully capitalise on the opportunity presented by high iron ore
prices.
-- Full year production guidance for iron ore and energy coal
were achieved, as were revised guidance for copper and
metallurgical coal. Full year nickel production was lower than
revised guidance due to a smelter outage in the June 2022
quarter.
-- Full year unit cost guidance(1) is expected to be achieved
for WAIO and Escondida. New South Wales Energy Coal (NSWEC) unit
costs are expected to be towards the bottom end of revised
guidance, which was updated to reflect a targeted increase in the
proportion of higher quality energy coal to capture more value from
record high prices. BMA unit costs are expected to be marginally
above revised guidance for Queensland Coal primarily due to the
impact of the divestment of BMC.
-- The Jansen shaft project was completed in the June 2022
quarter. Jansen Stage 1 is tracking to plan, with activities
progressing at the port and at the Jansen site. We are working to
bring forward Jansen Stage 1 first production into 2026 and are
assessing options to accelerate Jansen Stage 2.
-- The divestment of BHP's 80% interest in BMC to Stanmore and
the merger of BHP's oil and gas portfolio with Woodside Energy were
completed during the June 2022 quarter.
-- BHP announced that it will retain NSWEC in its portfolio and
seek relevant approvals to enable mining beyond the current mining
consent that expires in 2026, towards a cessation of mining in
2030.
-- The financial results for the second half of the 2022
financial year are expected to reflect certain items as summarised
in the table on page 3.
1
FY22 Jun Q22
Production (vs FY21) (vs Mar Q22) Jun Q22 vs Mar Q22 commentary
-------------------------- ---------- ------------- -------------------------------------------------------------------------------------------------
Copper (kt) 1,573.5 461.8 Higher volumes at Escondida due to increased grade and concentrator throughput, at Spence
due to improved leaching performance and at Olympic Dam following major smelter maintenance
campaign impacts in the prior period.
(4%) 25%
Iron ore (Mt) 253.2 64.2 Higher volumes at WAIO reflecting record production from the Mining Area C hub with the continued
ramp up of South Flank and improved supply chain performance.
0% 8%
Metallurgical coal (Mt)(2) 29.1 8.2 Higher volumes driven by improved truck productivity, partially offset by heavy rainfall in
the quarter.
(9%) 3%
Energy coal (Mt)(3) 13.7 3.9 Higher volumes due to less wet weather and reduced COVID-19 related labour impacts.
(4%) 52%
Nickel (kt) 76.8 18.8 Higher volumes due to reduced COVID-19 labour impacts, offset by an unplanned smelter outage.
(14%) 1%
Group copper equivalent production for the 2022 financial year
decreased by 4%(4) mainly due to lower copper and coal volumes.
Group copper equivalent production for the 2023 financial year is
expected to increase by approximately 4% from the 2022 financial
year.
2
Summary
BHP Chief Executive Officer, Mike Henry:
"BHP produced a strong fourth quarter to cap off a year of
significant progress. Our performance for the year has been
underpinned by safe, reliable operations and firm demand for our
commodities. We completed another year fatality free and we are
unwavering in our effort to improve safety, and this includes
addressing sexual assault and harassment, racism and bullying.
We delivered record full-year sales volumes at our iron ore
business in Western Australia as a result of reliable operational
performance and the South Flank project which continued to ramp up.
In copper, Escondida in Chile had record material mined and
near-record concentrator throughput, while Olympic Dam in South
Australia performed strongly in the fourth quarter after planned
smelter maintenance.
Queensland metallurgical coal delivered strong underlying
performance for the quarter in the face of significant wet weather.
BHP is assessing the impacts on BMA economic reserves and mine
lives as a result of the increase in coal royalties by the
Queensland Government. The near tripling of top end royalties has
worsened what was already one of the world's highest coal royalty
regimes, threatening investment and jobs in the state.
Our US$5.7 billion Jansen potash project in Canada is tracking
to plan and we are working to bring first production forward to
2026. Also during the year, we merged our petroleum business with
Woodside, completed the sales of BMC and Cerrejón, and decided to
retain New South Wales Energy Coal until the cessation of mining in
2030 subject to relevant approvals. We also unified our corporate
structure, and added to our global options in copper and
nickel.
Broader market volatility continues and we expect the lag effect
of inflationary pressures to continue through the 2023 financial
year, along with labour market tightness and supply chain
constraints. Over the year ahead, China is expected to contribute
positively to growth as stimulus policies take effect, however, the
continuing conflict in the Ukraine, the unfolding energy crisis in
Europe and policy tightening globally is expected to result in an
overall slowing of global growth. Our strong focus on safety,
operational reliability, cost control and social value will help us
navigate these challenges and continue to deliver for all of our
stakeholders."
3
Operational performance
Production and guidance are summarised below.
Note: All guidance is subject to further potential impacts from
COVID-19 during the 2023 financial year.
FY22 Jun Q22 Jun Q22
Jun vs vs vs FY23 FY23e
Production(i) FY22 Q22 FY21 Jun Q21 Mar Q22 guidance vs FY22
-------------------------------------------- -------- ------ ----- -------- -------- ------------- ------------
Copper (kt) 1,573.5 461.8 (4%) 15% 25% 1,635 - 1,825 4% - 16%
Escondida (kt) 1,004.0 289.3 (6%) 17% 28% 1,080 - 1,180 8% - 18%
Pampa Norte (kt) 281.2 77.2 29% 11% 13% 240 - 290 (15%) - 3%
Olympic Dam (kt) 138.4 55.7 (33%) 10% 43% 195 - 215 41% - 55%
Antamina (kt) 149.9 39.6 4% 10% 10% 120 - 140 (20%) - (7%)
Iron ore (Mt) 253.2 64.2 0% (2)% 8% 249 - 260 (2%) - 3%
WAIO (Mt) 249.2 63.2 (1%) (2%) 8% 246 - 256 (1%) - 3%
WAIO (100% basis) (Mt) 282.8 71.7 0% (2%) 7% 278 - 290 (2%) - 3%
Samarco (Mt) 4.1 1.0 110% (2%) 1% 3 - 4 (26%) - (2%)
Metallurgical coal - BMA (Mt) 29.1 8.2 (9%) (12%) 3% 29 - 32 0% - 10%
Metallurgical coal - BMA (100% basis) (Mt) 58.3 16.4 (9%) (12%) 3% 58 - 64 0% - 10%
Energy coal - NSWEC (Mt) 13.7 3.9 (4%) (13%) 52% 13 - 15 (5%) - 9%
Nickel (kt) 76.8 18.8 (14%) (16%) 1% 80 - 90 4% - 17%
i Excludes BMC and Petroleum production. The divestment of BHP's
80 per cent interest in BMC to Stanmore Resources Limited and the
merger of BHP's oil and gas portfolio with Woodside Energy Group
Limited were completed on 3 May 2022 and 1 June 2022 respectively.
Production data for these assets are below in the production and
sales report.
4
Summary of disclosures
BHP expects its financial results for the second half of the
2022 financial year to reflect certain items as summarised in the
table below. The table does not provide a comprehensive list of all
items impacting the period. The financial statements are the
subject of ongoing work that will not be finalised until the
release of BHP's financial results on 16 August 2022. Accordingly
the information in the table below contains preliminary information
that is subject to update and finalisation.
H2 FY22
impact
Description US$M(i) Classification(ii)
-------------------------------------------------------------------------- ----------------- -----------------------
Unit costs for WAIO, Escondida and NSWEC are expected to be in line with - Operating costs
full year guidance
(at guidance exchange rates), with NSWEC tracking towards the bottom end
of revised guidance
Note: weaker Australian dollar and Chilean peso than guidance rates in the
period(iii)
Unit costs for BMA are expected to be marginally above full year revised - Operating costs
guidance for Queensland
Coal, due to the impact of the divestment of BMC, and higher diesel and
electricity prices
(at guidance exchange rates)
Note: weaker Australian dollar than guidance rates in the period(iii)
Impairment charge related to an increase in closure and rehabilitation 400 - 450 Operating costs
provision at Cerro
Colorado due to additional work required to re-profile waste dumps for
closure and an increase
in scope for the closure activities
Exploration expense (minerals exploration programs) 119 Exploration expense
The Group's adjusted effective tax rate for the full year is expected to - Taxation expense
be within the guidance
range of 30 to 35 per cent
Dividends paid to non-controlling interests 1,250 - 1,300 Financing cash outflow
Gain on sale of BHP's 80 per cent interest in BMC (after tax) 825 - 875 Exceptional item gain
Net proceeds(iv) received from the sale of BHP's 80 per cent interest in 1,250 Investing cash inflow
BMC
Transaction costs related to Unification (after tax) 430 Exceptional item charge
Financial impact on BHP Brasil of the Samarco dam failure Refer footnote(v) Exceptional item
Discontinued operations
Gain on merger of BHP's oil and gas portfolio (after tax) 8,000 - 8,300 Exceptional item gain
Net cash payment to Woodside at completion of the merger and cash left in 1,100 Investing cash outflow
the BHP Petroleum
bank accounts to fund ongoing operations(vi)
i Numbers are not tax effected, unless otherwise noted.
ii There will be a corresponding balance sheet, cash flow and/or
income statement impact as relevant, unless otherwise noted.
iii Average exchange rates for FY22 of AUD/USD 0.73 (guidance
rate AUD/USD 0.78) and USD/CLP 811 (guidance rate USD/CLP 727).
iv Net of cash remaining in BMC on completion of US$63 million.
v Financial impact is the subject of ongoing work and is not yet
finalised. See corporate update section for further information on
Samarco.
vi As part of completion, BHP made a net cash payment of US$0.7
billion to Woodside. The net payment to Woodside is subject to a
customary post-completion review which may result in an adjustment
to the amount paid. In addition, US$0.4 billion in cash was left in
the BHP Petroleum bank accounts.
Major development projects
In June 2022, we completed the US$2.97 billion Jansen mine
shafts project.
At the end of the 2022 financial year, BHP had one major project
under development, the US$5.7 billion Jansen Stage 1 project, which
is tracking to plan.
5
Average realised prices
The average realised prices achieved for our major commodities
are summarised below.
FY22 Jun H22 Jun H22
vs vs vs
Average realised pricesi Jun H22 Dec H21 FY22 FY21 FY21 Jun H21 Dec H21
--------------------------------- ------- ------- ------ ------ ----- -------- --------
Copper (US$/lb) 4.02 4.31 4.16 3.81 9% (7%) (7%)
Iron ore (US$/wmt, FOB) 112.65 113.54 113.10 130.56 (13%) (29%) (1%)
Metallurgical coal (US$/t) 423.82 259.71 347.10 106.64 225% 269% 63%
Hard coking coal (US$/t)(ii) 437.60 278.60 366.82 112.72 225% 269% 57%
Weak coking coal (US$/t)(ii) 382.56 218.65 296.51 89.62 231% 266% 75%
Thermal coal (US$/t)(iii) 302.60 137.68 216.78 58.42 271% 327% 120%
Nickel metal (US$/t) 27,399 19,651 23,275 16,250 43% 56% 39%
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 Hard coking coal (HCC) refers generally to those
metallurgical coals with a Coke Strength after Reaction (CSR) of 35
and above, which includes coals across the spectrum from Premium
Coking to Semi Hard Coking coals, while weak coking coal (WCC)
refers generally to those metallurgical coals with a CSR below
35.
iii Includes thermal coal sales from metallurgical coal mines.
The large majority of iron ore shipments were linked to index
pricing for the month of shipment, with price differentials
predominantly a reflection of market fundamentals and product
quality. Iron ore sales for the June 2022 half year were based on
an average moisture rate of 6.9 per cent. The large majority of
metallurgical coal and energy coal exports were linked to index
pricing for the month of scheduled shipment or priced on the spot
market at fixed or index-linked prices, with price differentials
reflecting product quality. The majority of copper cathodes sales
were linked to index price for quotation periods one month after
month of shipment, and three to four months after month of shipment
for copper concentrates sales with price differentials applied for
location and treatment costs.
At 30 June 2022, the Group had 354 kt of outstanding copper
sales that were revalued at a weighted average price of US$3.75 per
pound. The final price of these sales will be determined in the
2023 financial year. In addition, 323 kt of copper sales from the
2021 financial year were subject to a finalisation adjustment in
the current financial year. The provisional pricing and
finalisation adjustments will decrease Underlying EBITDA by US$473
million in the 2022 financial year and are included in the average
realised copper price in the above table.
6
Corporate update
Portfolio
In April 2022, we signed a letter of intent with a consortium
led by the Global Maritime forum to assess the development of an
iron ore Green Corridor between Australia and East Asia. Green
Corridors are specific shipping routes where the economics,
infrastructure and logistics of zero or near-zero emission shipping
are more feasible and where deployment can be supported by targeted
policy and industry action. The new consortium will facilitate a
robust public-private dialogue to investigate conditions that need
to be in place to mobilise demand and to feasibly scale zero or
near-zero- greenhouse gas emission shipping on the corridor.
On 3 May 2022, BHP completed the sale of its 80 per cent
interest in BMC to Stanmore Resources Limited. Stanmore Resources
paid US$1.1 billion cash consideration at completion plus a
preliminary completion adjustment of approximately US$200 million
for working capital. US$100 million cash remains payable to BHP on
3 November 2022 with potential for an additional amount of up to
US$150 million in a price-linked earnout payable to BHP in the 2024
calendar year. The total cash consideration for the transaction
could be up to US$1.35 billion plus the final completion adjustment
amount. The Group expects to recognise a net gain on sale of
between US$825 million and US$875 million post-tax as an
exceptional item in the 2022 financial year.
On 1 June 2022, the merger of BHP's oil and gas portfolio with
Woodside was completed. BHP paid a fully franked in specie dividend
and distributed Woodside shares to eligible BHP shareholders. The
implied value of the in specie dividend was approximately US$19.6
billion or US$3.86 per BHP share. The sale of the Woodside shares
of ineligible overseas shareholders and BHP shareholders that
elected to participate in the sale facility, was completed and the
proceeds have been distributed to participating shareholders. As
part of completion, BHP made a net cash payment of approximately
US$0.7 billion to Woodside. The net payment to Woodside is subject
to a customary post-completion review which may result in an
adjustment to the amount paid. The Group expects to recognise a net
gain on the merger of between US$8.0 billion and US$8.3 billion
post-tax as an exceptional item in the 2022 financial year(5) .
On 16 June 2022, BHP announced that we will retain New South
Wales Energy Coal (NSWEC) in our portfolio, seek the relevant
approvals to continue mining beyond its current mining consent that
expires in 2026 and proceed with a managed process to cease mining
at the asset by the end of the 2030 financial year. A trade sale
process for NSWEC was conducted however the process did not result
in a viable offer. Assessment of the resource economics,
geotechnical profile and future investment requirements determined
that continued mining in the near term and moving to closure in
2030 provides the optimal financial outcome when compared to
alternate options. Continuation of mining to the end of the 2030
financial year will afford eight years to work with our people,
state and federal governments and local communities in the Hunter
Valley region on a transition approach that supports long-term
community sustainability.
7
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, among other things,
continue its operations safely and meet its Renova Foundation
obligations. BHP Brasil will continue to support Samarco in this
process. The Judicial Reorganisation is not expected to 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.
Separately, negotiations are also ongoing with State and Federal
Prosecutors and other Brazilian public authorities on the review of
the Framework Agreement(6) , seeking a definitive and substantive
settlement of Brazilian claims relating to the dam failure.
On 8 July 2022, the United Kingdom (UK) Court of Appeal decided
to allow the group action in the UK against BHP seeking
compensation on behalf of individuals, municipalities, private
businesses and indigenous peoples in Brazil to continue in the UK.
The judgment overturns the earlier decision of the High Court that
dismissed the group action. BHP has sought permission to appeal the
judgment to the UK Supreme Court. The judgment is not a decision in
relation to the merits of the claims made in the group action. It
is concerned with the preliminary question of whether the group
action can continue against BHP in the United Kingdom.
The impact of this decision and recent legal decisions in Brazil
on the Group's Samarco provision is currently being assessed.
We will provide an update to the ongoing potential financial
impacts on BHP Brasil of the Samarco dam failure with the release
of the financial results on 16 August 2022. Any financial impacts
will continue to be treated as an exceptional item.
Copper
Production
FY22 Jun Q22 Jun Q22
vs vs vs
FY22 Jun Q22 FY21 Jun Q21 Mar Q22
-------- ------- ----- -------- --------
Copper (kt) 1,573.5 461.8 (4%) 15% 25%
Zinc (t) 123,200 27,576 (15%) (22%) (16%)
Uranium (t) 2,375 776 (27%) 26% (1%)
Copper - Total copper production decreased by four per cent to
1,574 kt. Production for the 2023 financial year is expected to be
between 1,635 and 1,825 kt.
8
Escondida copper production decreased by six per cent to 1,004
kt primarily due to higher than expected concentrator feed grade
decline of four per cent, public road blockades affecting access to
site for both workers and supplies, and the impact of a reduced
operational workforce from COVID-19. Despite these challenges,
Escondida achieved record material mined for the 2022 financial
year and near record concentrator throughput of 367 ktpd.
Production is expected to increase to between 1,080 and 1,180 kt
for the 2023 financial year and reflects an expected increase in
concentrator feed grade compared to the 2022 financial year. Medium
term guidance of 1.2 Mtpa of copper production on average over the
next five years remains unchanged, with production expected to be
weighted towards the latter years.
Pampa Norte copper production increased by 29 per cent to 281 kt
reflecting the ramp up of the Spence Growth Option (SGO), partially
offset by the impact of lower cathode production as a result of a
14 per cent decline in Pampa Norte stacking feed grade. Production
for the 2023 financial year is expected to be between 240 and 290
kt. This reflects a forecast decline in stacking feed grade at
Pampa Norte, the commencement of plant design modifications at SGO
and the continued transition towards the planned closure of Cerro
Colorado at the end of the 2023 calendar year.
Olympic Dam copper production decreased by 33 per cent to 138 kt
as a result of the major smelter maintenance campaign (SCM21),
which included COVID-19 impacts on the availability of workforce
and was subsequently completed in January 2022. Near record
production in the June 2022 quarter followed the successful ramp up
of the smelter to full capacity in April 2022. Average copper grade
of 2.14 per cent was achieved in the 2022 financial year as the
majority of material mined is from the Southern Mine Area.
Production for the 2023 financial year is expected to increase to
between 195 and 215 kt .
Antamina copper production increased by four per cent to 150 kt,
reflecting higher copper head grades. Zinc production decreased by
15 per cent to 123 kt reflecting lower zinc head grades. Copper
production of between 120 and 140 kt, and zinc production of
between 115 and 135 kt is expected for the 2023 financial year.
Iron Ore
Production
FY22 Jun Q22 Jun Q22
vs vs vs
FY22 Jun Q22 FY21 Jun Q21 Mar Q22
-------- ------- ----- -------- --------
Iron ore production (kt) 253,247 64,162 0% (2%) 8%
Iron ore - Total iron ore production was in line with the prior
period at 253 Mt. Production for the 2023 financial year is
expected to be between 249 and 260 Mt.
9
WAIO production of 249 Mt (283 Mt on a 100 per cent basis) was
in line with the prior period, reflecting continued strong supply
chain performance and favourable weather compared to the prior
period, offset by the impacts of temporary labour constraints
relating to COVID-19, planned track renewal works in the March 2022
quarter and the planned major maintenance on the Jimblebar train
load out and car dumper one in the first half. Our preventative
maintenance programs continue to underpin the strength of the WAIO
supply chain, delivering increased car dumper, reclaimer and ship
loader availability year on year and enabling record sales volumes
of 284 Mt (100 per cent basis). South Flank ramp up to full
production capacity of 80 Mtpa (100 per cent basis) is ahead of
schedule with an average rate of 67 Mtpa achieved in the June 2022
quarter contributing to record production from the Mining Area C
(MAC) hub and record lump sales.
WAIO production for the 2023 financial year is expected to be
between 246 and 256 Mt (278 and 290 Mt on a 100 per cent basis)
reflecting the tie-in of the port debottlenecking project (PDP1)
and the continued ramp up of South Flank.
Samarco production of 4.1 Mt (BHP share) reflected the ramp up
of production to capacity, following the recommencement of iron ore
pellet production at one concentrator in December 2020. Production
for the 2023 financial year is expected to be between 3 and 4 Mt
(BHP share).
Coal
Production
FY22 Jun Q22 Jun Q22
vs vs vs
FY22 Jun Q22 FY21 Jun Q21 Mar Q22
------- ------- ----- -------- --------
Metallurgical coal (kt)(2) 29,142 8,183 (9%) (12%) 3%
Energy coal (kt)(3) 13,701 3,919 (4%) (13%) 52%
Metallurgical coal - BMA production decreased by nine per cent
to 29 Mt (58 Mt on a 100 per cent basis). Significant wet weather
impacts across most BMA operations and labour constraints,
including COVID-19 related absenteeism which impacted stripping and
mine productivity, more than offset record production at the
Broadmeadow mine. Following the automation of Daunia's truck fleet
in November 2021, the automation of Goonyella's pre-strip truck
fleet was completed in March 2022 with the Goonyella coal truck
fleet expected to be fully autonomous by the end of the December
2022 quarter. Production for the 2023 financial year is expected to
be between 29 and 32 Mt (58 and 64 Mt on a 100 per cent basis). A
long wall move at Broadmeadow mine is scheduled for the September
2022 quarter.
The divestment of our interest in BMC was completed on 3 May
2022 and BMC volumes are no longer included in metallurgical coal
volumes.
Following the announcement of the change to the Queensland
royalty regime from 1 July 2022, we will assess the impact on
production, jobs and the communities of Central Queensland. At spot
metallurgical coal prices(7) , the effective pre-tax royalty rate
has increased by approximately 7 percentage points to 19 per cent.
This further cost pressure will discourage investment, operational
growth, job creation and local business spending across the state.
The new tax damages Queensland's reputation as a stable place to
invest, and will make it harder for the state to compete against
other global jurisdictions in attracting major new investments that
would deliver longer term value to communities and the state
economy.
10
Energy coal - NSWEC production decreased by four per cent to 14
Mt, reflecting lower volumes due to an increased proportion of
washed coal to capitalise on higher margins for higher quality
coals, COVID-19 related labour constraints which impacted stripping
performance and mine productivity, and wet weather. Higher quality
coals now make up almost 90 per cent of sales compared to
approximately 60 per cent of sales in the prior year. Production
for the 2023 financial year is expected to be between 13 and 15 Mt
reflecting a continued focus on higher quality coals.
Other
Nickel production
FY22 Jun Q22 Jun Q22
vs vs vs
FY22 Jun Q22 FY21 Jun Q21 Mar Q22
---- ------- ----- -------- --------
Nickel (kt) 76.8 18.8 (14%) (16%) 1%
Nickel - Nickel West production decreased by 14 per cent to 77
kt due to the significant impacts of COVID-19 related labour
absenteeism and workforce shortages, and unplanned downtime at the
oxygen plant leading to a 15 day smelter outage in the June 2022
quarter . Production for the 2023 financial year is expected to be
between 80 and 90 kt, weighted to the second half of the year due
to planned smelter maintenance in the first half.
Potash - Our major potash project under development is tracking
to plan.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
------------- ------------ ----------- ------------------------------- ---------------------
Jansen Potash 2,972 CY27 Investment to finish the 100% complete.
excavation and lining of This project will
the production and service not be reported
shafts, and to continue in the projects
the installation of essential section of future
surface infrastructure Operational Reviews.
and utilities.
(Canada)
100%
Jansen Stage 5,723 CY27 Design, engineering and Approved in August
1 construction of an underground 2021, project is
potash mine and surface 8% complete
infrastructure, with capacity
to produce 4.35 Mtpa.
(Canada)
100%
Minerals exploration
Total minerals exploration expenditure for 2022 financial year
was US$256 million, of which US$199 million was expensed.
Work continues on existing exploration 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.
We continued to progress our early stage options in future
facing commodities throughout the year. Work continued on the
farm-in agreement executed in October 2021 for the early-stage
Elliott copper project covering 7,200 km(2) in the Northern
Territory, Australia, and in April 2022 we agreed to fund a nickel
exploration program in Nunavik, Quebec, as part of our strategic
alliance with Midland Exploration(8) .
At Oak Dam in South Australia, BHP is continuing next stage
resource definition drilling with six drill rigs.
11
Variance analysis relates to the relative performance of BHP
and/or its operations during the 2022 financial year compared with
the 2021 financial year, unless otherwise noted. Production
volumes, sales volumes and capital and exploration expenditure from
subsidiaries are reported on a 100 per cent basis; production and
sales volumes from equity accounted investments and other
operations are reported on a proportionate consolidation basis.
Numbers presented may not add up precisely to the totals provided
due to rounding. Copper equivalent production is based on 2022
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
(which includes BMA of US$88-96/t; divestment of BMC was completed
on 3 May 2022), and NSWEC US$76-81/t; based on exchange rates of
AUD/USD 0.78 and USD/CLP 727.
2 BHP completed the sale of BMC on 3 May 2022. The transaction
has an effective economic date of 3 May 2022 and volumes have been
reported separately in the production and sales report.
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 production from Cerrejón (divestment completed 11
January 2022), BMC (divestment completed 3 May 2022) and Petroleum
(merger completed 1 June 2022).
5 The net gain on merger will be included as an exceptional item
in profit after taxation from discontinued operations in the
financial statements.
6 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.
7 PLV FOB spot price of US$243.50/t as at 13 July 2022. Source: Platts.
8 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 and, except where the context otherwise requires, the
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
and Samarco. 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.
12
Further information on BHP can be found at: bhp.com
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Group Company Secretary
Media Relations Investor Relations
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13
NEWS RELEASE
19 July 2022
BHP OPERATIONAL REVIEW
FOR THE YEARED 30 JUNE 2022
Production and sales summary (Excel version)
www.bhp.com
14
Production summary
Quarter ended Year to date
------------------------------------------- ------------------
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2021 2021 2021 2022 2022 2022 2021
---------- ------- ------- ------- ------- ------- -------- --------
Copper (1)
Copper
Payable metal in
concentrate (kt)
Escondida (2) 57.5% 195.6 194.7 196.2 178.2 233.5 802.6 871.7
Pampa Norte (3) 100.0% 21.1 26.4 24.2 32.4 28.2 111.2 27.4
Antamina 33.8% 36.1 35.8 38.4 36.1 39.6 149.9 144.0
Total 252.8 256.9 258.8 246.7 301.3 1,063.7 1,043.1
Cathode (kt)
Escondida (2) 57.5% 51.1 49.0 48.4 48.2 55.8 201.4 196.5
Pampa Norte (3) 100% 48.3 41.1 44.1 35.8 49.0 170.0 190.8
Olympic Dam 100% 50.8 29.5 14.2 39.0 55.7 138.4 205.3
Total 150.2 119.6 106.7 123.0 160.5 509.8 592.6
Total copper (kt) 403.0 376.5 365.5 369.7 461.8 1,573.5 1,635.7
Lead
Payable metal in
concentrate (t)
Antamina 33.8% 381 378 277 282 181 1,118 2,532
Total 381 378 277 282 181 1,118 2,532
Zinc
Payable metal in
concentrate (t)
Antamina 33.8% 35,483 33,289 29,603 32,732 27,576 123,200 145,089
Total 35,483 33,289 29,603 32,732 27,576 123,200 145,089
Gold
Payable metal in
concentrate (troy
oz)
Escondida (2) 57.5% 38,893 41,962 42,937 36,303 45,770 166,972 166,968
Pampa Norte (3) 100% 4,728 6,967 5,776 7,929 8,198 28,870 4,728
Olympic Dam (refined
gold) 100% 48,478 26,277 37,805 29,355 26,080 119,517 145,998
Total 92,099 75,206 86,518 73,587 80,048 315,359 317,694
Silver
Payable metal in
concentrate (troy
koz)
Escondida (2) 57.5% 1,234 1,291 1,462 1,270 1,311 5,334 5,759
Pampa Norte (3) 100% 214 273 215 261 262 1,011 214
Antamina 33.8% 1,409 1,367 1,308 1,191 1,212 5,078 5,965
Olympic Dam (refined
silver) 100% 185 191 258 149 145 743 810
Total 3,042 3,122 3,243 2,871 2,930 12,166 12,748
15
Production summary
Quarter ended Year to date
------------------------------------------- ------------------
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2021 2021 2021 2022 2022 2022 2021
---------- ------- ------- ------- ------- ------- -------- --------
Uranium
Payable metal in
concentrate (t)
Olympic Dam 100% 614 531 287 781 776 2,375 3,267
Total 614 531 287 781 776 2,375 3,267
Molybdenum
Payable metal in
concentrate (t)
Pampa Norte (3) 100% - - - - 71 71 -
Antamina 33.8% 111 142 217 190 249 798 863
Total 111 142 217 190 320 869 863
Iron Ore
Iron Ore
Production (kt) (4)
Newman 85% 14,560 16,461 14,577 11,940 14,063 57,041 63,221
Area C Joint Venture 85% 15,920 18,947 22,911 24,888 27,685 94,431 52,386
Yandi Joint Venture 85% 18,405 11,834 12,261 8,418 6,409 38,922 68,596
Jimblebar (5) 85% 15,337 15,009 15,324 13,444 15,005 58,782 67,393
Samarco 50% 1,023 1,048 1,029 994 1,000 4,071 1,938
Total 65,245 63,299 66,102 59,684 64,162 253,247 253,534
Coal
Metallurgical coal
Production (kt) (6)
BHP Mitsubishi Alliance
(BMA) 50% 9,253 6,715 6,300 7,944 8,183 29,142 31,884
Total 9,253 6,715 6,300 7,944 8,183 29,142 31,884
Production (kt) (6)
BHP Mitsui Coal (BMC)
(7 8) 80% 2,570 2,135 2,518 2,618 651 7,922 8,741
Total 2,570 2,135 2,518 2,618 651 7,922 8,741
Energy coal
Production (kt)
NSW Energy Coal 100% 4,492 4,238 2,967 2,577 3,919 13,701 14,326
Total 4,492 4,238 2,967 2,577 3,919 13,701 14,326
Production (kt)
Cerrejón (9) 33.3% 1,784 2,060 2,176 - - 4,236 4,964
Total 1,784 2,060 2,176 - - 4,236 4,964
Other
Nickel
Saleable production
(kt)
Nickel West 100% 22.4 17.8 21.5 18.7 18.8 76.8 89.0
Total 22.4 17.8 21.5 18.7 18.8 76.8 89.0
Cobalt
Saleable production
(t)
Nickel West 100% 241 177 220 125 110 632 988
Total 241 177 220 125 110 632 988
16
Production summary
Quarter ended Year to date
------------------------------------------- -----------------
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2021 2021 2021 2022 2022 2022 2021
----------- ------- ------- ------- ------- ------- ------- --------
Discontinued operations
Petroleum (10 11)
Production
Crude oil, condensate
and NGL (Mboe) 12,205 12,751 12,345 11,367 7,057 43,520 46,042
Natural gas (bcf) 88.6 88.4 80.1 75.9 58.8 303.2 340.6
Total (Mboe) 26,972 27,484 25,695 24,017 16,857 94,053 102,809
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 may include some thermal
coal.
7 Shown on a 100% basis. BHP interest in saleable production is 80%.
8 BHP completed the sale of its 80 per cent interest in BHP
Mitsui Coal (BMC) on 3 May 2022. Production reported until 30 April
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 The merger of BHP's oil and gas portfolio with Woodside was
completed on 1 June 2022. Production reported until 31 May
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.
17
Production and sales report
Year to
Quarter ended date
------------------------------------------------ ------------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
-------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal
unless otherwise stated.
Escondida, Chile (1)
Material mined (kt) 104,043 113,874 117,284 107,676 115,409 454,243 380,652
Concentrator throughput (kt) 31,903 33,528 35,787 30,235 34,318 133,868 135,593
Average copper grade
- concentrator (%) 0.77% 0.73% 0.71% 0.80% 0.88% 0.78% 0.81%
Production ex mill (kt) 202.8 201.2 203.6 191.5 239.5 835.8 900.6
Production
Payable copper (kt) 195.6 194.7 196.2 178.2 233.5 802.6 871.7
Copper cathode (EW) (kt) 51.1 49.0 48.4 48.2 55.8 201.4 196.5
- Oxide leach (kt) 14.5 14.8 13.1 12.2 17.5 57.6 63.9
- Sulphide leach (kt) 36.6 34.2 35.3 36.0 38.3 143.8 132.6
Total copper (kt) 246.7 243.7 244.6 226.4 289.3 1,004.0 1,068.2
(troy
Payable gold concentrate oz) 38,893 41,962 42,937 36,303 45,770 166,972 166,968
(troy
Payable silver concentrate koz) 1,234 1,291 1,462 1,270 1,311 5,334 5,759
Sales
Payable copper (kt) 194.1 190.5 200.2 177.0 230.4 798.1 872.4
Copper cathode (EW) (kt) 49.6 46.7 49.7 47.2 58.9 202.5 193.4
(troy
Payable gold concentrate oz) 38,893 41,962 42,937 36,303 45,770 166,972 166,968
(troy
Payable silver concentrate koz) 1,234 1,291 1,462 1,270 1,311 5,334 5,759
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
18
Production and sales report
Year to
Quarter ended date
------------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------- ------- ------- ------- ------- ------- -------
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 5,498 5,378 4,782 3,516 3,604 17,280 31,019
Ore stacked (kt) 3,702 3,566 4,029 3,181 4,259 15,035 14,583
Average copper grade
- stacked (%) 0.58% 0.60% 0.62% 0.53% 0.55% 0.58% 0.60%
Production
Copper cathode (EW) (kt) 14.7 13.4 15.3 11.6 14.7 55.0 60.2
Sales
Copper cathode (EW) (kt) 15.4 12.1 16.0 10.5 16.2 54.8 59.8
Spence
Material mined (kt) 21,262 21,154 24,025 24,040 26,749 95,968 77,202
Ore stacked (kt) 4,609 5,258 5,071 5,055 5,099 20,483 20,155
Average copper grade
- stacked (%) 0.72% 0.64% 0.66% 0.67% 0.66% 0.66% 0.81%
Concentrator throughput (kt) 4,929 5,786 6,234 6,512 6,311 24,843 8,607
Average copper grade
- concentrator (%) 0.63% 0.65% 0.60% 0.65% 0.66% 0.64% 0.59%
Production
Payable copper (kt) 21.1 26.4 24.2 32.4 28.2 111.2 27.4
Copper cathode (EW) (kt) 33.6 27.7 28.8 24.2 34.3 115.0 130.6
Total copper (kt) 54.7 54.1 53.0 56.6 62.5 226.2 158.0
(troy
Payable gold concentrate oz) 4,728 6,967 5,776 7,929 8,198 28,870 4,728
(troy
Payable silver concentrate koz) 214 273 215 261 262 1,011 214
Payable molybdenum (t) - - - - 71 71 -
Sales
Payable copper (kt) 20.8 28.4 24.9 28.1 28.1 109.5 22.6
Copper cathode (EW) (kt) 34.1 27.7 31.2 20.2 35.4 114.5 129.8
(troy
Payable gold concentrate oz) 4,728 6,967 5,776 7,929 8,198 28,870 4,728
(troy
Payable silver concentrate koz) 214 273 215 261 262 1,011 214
Payable molybdenum (t) - - - - 25 25 -
19
Production and sales report
Year to
Quarter ended date
------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------- ------- ------- ------- ------- -------- --------
Copper (continued)
Metals production is payable
metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 63,393 66,581 58,179 58,118 64,026 246,904 219,642
Concentrator throughput
(100%) (kt) 13,466 13,219 13,011 13,135 13,131 52,496 53,402
Average head grades
- Copper (%) 0.93% 0.97% 1.00% 0.94% 1.02% 0.98% 0.95%
- Zinc (%) 1.24% 1.16% 1.11% 1.13% 1.05% 1.11% 1.25%
Production
Payable copper (kt) 36.1 35.8 38.4 36.1 39.6 149.9 144.0
Payable zinc (t) 35,483 33,289 29,603 32,732 27,576 123,200 145,089
(troy
Payable silver koz) 1,409 1,367 1,308 1,191 1,212 5,078 5,965
Payable lead (t) 381 378 277 282 181 1,118 2,532
Payable molybdenum (t) 111 142 217 190 249 798 863
Sales
Payable copper (kt) 37.3 32.7 41.9 32.9 40.7 148.2 143.5
Payable zinc (t) 32,044 32,635 32,513 29,920 30,847 125,915 144,063
(troy
Payable silver koz) 1,540 1,103 1,405 1,078 1,230 4,816 5,920
Payable lead (t) 556 232 344 269 363 1,208 2,938
Payable molybdenum (t) 268 86 170 199 205 660 1,204
Olympic Dam, Australia
Material mined (1) (kt) 2,143 1,935 1,998 2,424 2,477 8,834 8,704
Ore milled (kt) 2,429 2,024 1,105 2,122 2,436 7,687 9,487
Average copper grade (%) 1.95% 2.03% 2.17% 2.21% 2.15% 2.14% 2.00%
Average uranium grade (kg/t) 0.56 0.55 0.55 0.62 0.56 0.57 0.57
Production
Copper cathode (ER
and EW) (kt) 50.8 29.5 14.2 39.0 55.7 138.4 205.3
Payable uranium (t) 614 531 287 781 776 2,375 3,267
(troy
Refined gold oz) 48,478 26,277 37,805 29,355 26,080 119,517 145,998
(troy
Refined silver koz) 185 191 258 149 145 743 810
Sales
Copper cathode (ER
and EW) (kt) 52.7 29.1 17.9 36.3 55.8 139.1 204.4
Payable uranium (t) 1,179 536 541 236 1,031 2,344 3,816
(troy
Refined gold oz) 47,300 24,654 38,768 30,935 24,622 118,979 143,596
(troy
Refined silver koz) 245 126 290 182 87 685 874
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
20
Production and sales report
Year to
Quarter ended date
------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 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) 14,560 16,461 14,577 11,940 14,063 57,041 63,221
Area C Joint Venture (kt) 15,920 18,947 22,911 24,888 27,685 94,431 52,386
Yandi Joint Venture (kt) 18,405 11,834 12,261 8,418 6,409 38,922 68,596
Jimblebar (1) (kt) 15,337 15,009 15,324 13,444 15,005 58,782 67,393
Wheelarra (kt) - - - - - - -
Total production (kt) 64,222 62,251 65,073 58,690 63,162 249,176 251,596
Total production (100%) (kt) 72,848 70,587 73,852 66,674 71,660 282,773 284,102
Sales
Lump (kt) 16,410 17,546 17,827 16,966 20,006 72,345 65,762
Fines (kt) 48,837 45,039 46,809 42,187 44,308 178,343 186,290
Total (kt) 65,247 62,585 64,636 59,153 64,314 250,688 252,052
Total sales (100%) (kt) 73,712 70,815 73,222 67,110 72,796 283,943 283,871
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
Production (kt) 1,023 1,048 1,029 994 1,000 4,071 1,938
Sales (kt) 1,052 1,111 950 943 991 3,995 1,698
21
Production and sales report
Year to
Quarter ended date
------------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on
the basis of saleable product.
BHP Mitsubishi Alliance
(BMA), Australia
Production (1)
Blackwater (kt) 1,887 1,403 1,202 1,478 1,751 5,834 6,224
Goonyella (kt) 2,752 1,798 1,797 2,336 2,429 8,360 9,448
Peak Downs (kt) 1,597 1,223 960 1,395 1,366 4,944 5,892
Saraji (kt) 1,391 999 1,081 1,366 1,168 4,614 4,489
Daunia (kt) 478 377 304 338 472 1,491 1,928
Caval Ridge (kt) 1,148 915 956 1,031 997 3,899 3,903
Total production (kt) 9,253 6,715 6,300 7,944 8,183 29,142 31,884
Total production (100%) (kt) 18,506 13,430 12,600 15,888 16,366 58,284 63,768
Sales
Coking coal (kt) 7,801 5,415 4,875 6,334 6,734 23,358 27,271
Weak coking coal (kt) 1,069 734 754 805 1,118 3,411 4,020
Thermal coal (kt) 400 576 455 484 765 2,280 667
Total sales (kt) 9,270 6,725 6,084 7,623 8,617 29,049 31,958
Total sales (100%) (kt) 18,540 13,450 12,168 15,246 17,234 58,098 63,916
1 Production figures include some thermal coal.
Year to
Quarter ended date
----------------------------------------- --------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------ ------ ------ ------ --------- ------ ------
BHP Mitsui Coal (BMC),
Australia (1 2)
Production
South Walker Creek (kt) 1,500 1,462 1,535 1,530 414 4,941 4,887
Poitrel (kt) 1,070 673 983 1,088 237 2,981 3,854
Total BHP Mitsui Coal (kt) 2,570 2,135 2,518 2,618 651 7,922 8,741
Sales
Coking coal (kt) 535 313 458 576 146 1,493 2,167
Weak coking coal (kt) 2,027 1,788 1,812 2,013 667 6,280 6,494
Thermal coal (kt) - - - - - - -
Total BHP Mitsui Coal (kt) 2,562 2,101 2,270 2,589 813 7,773 8,661
1 Shown on a 100% basis. BHP interest in saleable production is 80%.
2 BHP completed the sale of its 80 per cent interest in BHP
Mitsui Coal (BMC) on 3 May 2022. Production reported until 30 April
2022.
22
Production and sales report
Year to
Quarter ended date
----------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------ ------ ------ ------ --------- ------- -------
NSW Energy Coal,
Australia
Production (kt) 4,492 4,238 2,967 2,577 3,919 13,701 14,326
Sales thermal coal
- export (kt) 4,691 3,780 3,718 2,703 3,923 14,124 14,626
Cerrejón, Colombia
(1)
Production (kt) 1,784 2,060 2,176 - - 4,236 4,964
Sales thermal coal
- export (kt) 1,619 2,180 2,012 - - 4,192 4,729
1 BHP completed the sale of its 33.3 per cent interest in
Cerrejón on 11 January 2022. Production reported until 31 December
2021.
Year to
Quarter ended date
---------------------------------------- --------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------ ------ ------ ------ -------- ------ ------
Other
Nickel production is reported
on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 50.4 53.7 47.0 47.1 48.0 195.8 224.6
Average nickel grade (%) 13.3 14.6 13.2 14.4 16.1 14.6 14.4
Leinster
Nickel concentrate (kt) 71.4 73.8 77.4 78.0 76.0 305.2 281.9
Average nickel grade (%) 10.5 8.9 9.1 8.9 10.3 9.3 9.8
Saleable production
Refined nickel (1) (kt) 17.1 14.4 18.2 13.3 11.7 57.6 70.0
Nickel sulphate (2) (kt) - - 0.4 0.7 0.5 1.6 -
Intermediates and
nickel by-products
(3) (kt) 5.3 3.4 2.9 4.7 6.6 17.6 19.0
Total nickel (kt) 22.4 17.8 21.5 18.7 18.8 76.8 89.0
Cobalt by-products (t) 241 177 220 125 110 632 988
Sales
Refined nickel (1) (kt) 17.8 13.8 16.9 15.3 11.7 57.7 70.8
Nickel sulphate (2) (kt) - - 0.1 0.7 0.5 1.3 -
Intermediates and
nickel by-products
(3) (kt) 4.0 3.9 3.1 2.7 6.4 16.1 17.1
Total nickel (kt) 21.8 17.7 20.1 18.7 18.6 75.1 87.9
Cobalt by-products (t) 241 177 220 125 110 632 989
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.
23
Production and sales report
Year to
Quarter ended date
-------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------ ------ ------ ------ ------ ------- -------
Discontinued operations
Petroleum (1 2)
Bass Strait
Crude oil and condensate (Mboe) 1,205 1,201 971 895 699 3,766 4,372
NGL (Mboe) 1,563 1,655 1,140 1,149 1,115 5,059 5,315
Natural gas (bcf) 32.8 35.8 25.8 22.4 24.1 108.1 113.0
Total petroleum products (Mboe) 8,235 8,823 6,411 5,777 5,831 26,842 28,520
North West Shelf
Crude oil and condensate (Mboe) 933 973 1,027 1,016 651 3,667 4,511
NGL (Mboe) 177 148 180 185 128 641 692
Natural gas (bcf) 26.5 24.3 25.8 26.4 17.4 93.9 117.6
Total petroleum products (Mboe) 5,527 5,171 5,507 5,601 3,679 19,958 24,803
Pyrenees
Crude oil and condensate (Mboe) 690 710 723 684 454 2,571 3,032
Total petroleum products (Mboe) 690 710 723 684 454 2,571 3,032
Macedon
Crude oil and condensate (Mboe) - 1 1 - - 2 3
Natural gas (bcf) 12.6 12.7 12.6 12.5 8.4 46.2 50.3
Total petroleum products (Mboe) 2,100 2,118 2,101 2,083 1,400 7,702 8,387
Atlantis (3)
Crude oil and condensate (Mboe) 3,117 3,171 3,222 2,692 1,944 11,029 10,513
NGL (Mboe) 218 222 186 171 119 698 690
Natural gas (bcf) 1.6 1.7 1.5 1.3 0.9 5.4 5.3
Total petroleum products (Mboe) 3,602 3,676 3,658 3,080 2,213 12,627 12,086
Mad Dog (3)
Crude oil and condensate (Mboe) 1,099 1,155 1,137 964 659 3,915 4,449
NGL (Mboe) 77 46 56 35 26 163 220
Natural gas (bcf) 0.2 0.2 0.1 0.1 0.1 0.5 0.7
Total petroleum products (Mboe) 1,209 1,234 1,210 1,016 702 4,162 4,785
Shenzi (3)
Crude oil and condensate (Mboe) 2,023 2,016 2,335 2,378 910 7,639 7,510
NGL (Mboe) 87 102 134 114 41 391 375
Natural gas (bcf) 0.1 0.4 0.4 0.4 0.1 1.3 1.1
Total petroleum products (Mboe) 2,127 2,185 2,536 2,559 968 8,248 8,069
Trinidad/Tobago
Crude oil and condensate (Mboe) 236 491 396 288 257 1,432 573
Natural gas (bcf) 14.7 13.3 13.9 12.7 7.8 47.7 52.4
Total petroleum products (Mboe) 2,686 2,708 2,713 2,405 1,557 9,383 9,306
Other Americas (3
4)
Crude oil and condensate (Mboe) 104 83 81 91 54 309 693
NGL (Mboe) 8 3 - 6 - 9 21
Natural gas (bcf) 0.1 - - 0.1 - 0.1 0.2
Total petroleum products (Mboe) 129 86 81 114 54 335 748
Algeria (5)
Crude oil and condensate (Mboe) 668 774 756 699 - 2,229 3,073
Total petroleum products (Mboe) 668 774 756 699 - 2,229 3,073
24
Production and sales report
Year to
Quarter ended date
------------------------------------------- -----------------
Jun Sep Dec Mar Jun Jun Jun
2021 2021 2021 2022 2022 2022 2021
------- ------- ------- ------- ------- ------- --------
Discontinued operations
(continued)
Petroleum (1)
Total production
Crude oil and condensate (Mboe) 10,075 10,575 10,649 9,707 5,628 36,559 38,729
NGL (Mboe) 2,130 2,176 1,696 1,660 1,429 6,961 7,313
Natural gas (bcf) 88.6 88.4 80.1 75.9 58.8 303.2 340.6
Total (Mboe) 26,972 27,484 25,695 24,017 16,857 94,053 102,809
1 The merger of BHP's oil and gas portfolio with Woodside was
completed on 1 June 2022. Production reported until 31 May
2022.
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.
5 The divestment of our interest in the ROD Integrated
Development in Algeria was completed in April 2022.
25
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END
UPDLVLLFLDLLBBD
(END) Dow Jones Newswires
July 19, 2022 02:00 ET (06:00 GMT)
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