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BHP Billiton PLC (BLT)

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Wednesday 18 July, 2018

BHP Billiton PLC

Operational Review for the Year Ended 30 June 2018

RNS Number : 9569U
BHP Billiton PLC
17 July 2018
 

Release Time

IMMEDIATE

Date

18 July 2018

Release Number

10/18

BHP OPERATIONAL REVIEW
FOR THE YEAR ENDED 30 JUNE 2018

·    Met or exceeded full year production guidance for petroleum, copper, iron ore and energy coal. Met revised guidance for metallurgical coal.

·    Group copper equivalent production increased by 8% in the 2018 financial year, with annual production records at Western Australia Iron Ore (WAIO), Queensland Coal and Spence.

·    We expect to achieve full year unit cost guidance at our major assets (based on 2018 financial year guidance exchange rates of AUD/USD 0.75 and USD/CLP 663).

·    Group copper equivalent production for the 2019 financial year is expected to be broadly in line with the 2018 financial year(1).

·    The exit process for Onshore US is progressing to plan. Bids have been received and we aim to announce one or more transactions within the coming months, targeting completion of any transactions by the end of the 2018 calendar year.

·    In Petroleum, the Victoria-1 exploration well in Trinidad and Tobago encountered gas and the
Samurai-2 well in the US Gulf of Mexico encountered hydrocarbons in multiple horizons.  

·    The South Flank sustaining iron ore project was approved during the June 2018 quarter.

·    We expect the financial results for the second half of the 2018 financial year to reflect certain items as summarised in the table on page two. 

 

Production

 

FY18
(vs FY17)

 

   Jun Q18
(vs Mar Q18)

 

Jun Q18 commentary

 

Petroleum (MMboe)

192
(-8%)

49
(+9%)

Improved well performance and positive trial results in Onshore US offset by natural field decline.

Copper (kt)

1,753
(+32%)

463
(+1%)

Higher volumes at Escondida supported by the ramp-up of the Los Colorados Extension project.

Iron ore(2) (Mt)

238
(+3%)

64
(+10%)

Record annualised production rate of 289 Mtpa (100% basis) reflects increased productivity across the supply chain following completion of the rail reliability project and improved car dumper performance. Production records at Jimblebar and Newman.

Metallurgical coal(2) (Mt)

43
(+7%)

12
(+16%)

Record quarterly production at Queensland Coal following improved performance at Blackwater and Broadmeadow, and higher feed rates at Caval Ridge. Production records at South Walker Creek and Poitrel.

Energy coal(2) (Mt)

29
(0%)

9
(+48%)

Record production at New South Wales Energy Coal underpinned by improved stripping fleet performance.

BHP Chief Executive Officer, Andrew Mackenzie, said: "We have delivered a strong finish to the 2018 financial year with an eight per cent increase in annual production and record output at Western Australia Iron Ore, Queensland Coal and at our Spence copper mine in Chile.  We further simplified the portfolio with the announced divestment of Cerro Colorado in Chile and Gregory Crinum in Australia and our investment in South Flank supports our ability to supply low cost, high quality products into Asia.

Good prices and our culture of continuous improvement give us positive momentum into the 2019 financial year."

1

Summary

Operational performance

Production for the 2018 financial year and guidance for the 2019 financial year are summarised in the table below.

Production


FY18

Jun
2018
 Qtr

FY18
vs
FY17

Jun Q18
vs
Jun Q17

Jun Q18
vs
Mar Q18


FY19
guidance

FY19e

vs FY18

Petroleum (MMboe)

192

49

(8%)

(6%)

9%



 Onshore US (MMboe)

72

20

(10%)

3%

20%

Refer footnote(iii)


 Conventional (MMboe)

120

29

(6%)

(11%)

3%

113 - 118

(6%) - (2%)

Copper (kt)

1,753

463

32%

20%

1%

1,675 - 1,770

(4%) - 1%

 Escondida (kt)

1,213

316

57%

40%

1%

1,120 - 1,180

(8%) - (3%)

   Other copper(i) (kt)

540

147

(3%)

(9%)

3%

555 - 590

3% - 9%

Iron ore(ii) (Mt)

238

64

3%

6%

10%

241 - 250

1% - 5%

 WAIO (100% basis) (Mt)

275

72

3%

3%

8%

273 - 283

(1%) - 3%

Metallurgical coal(ii) (Mt)

43

12

7%

41%

16%

43 - 46

1% - 8%

Energy coal(ii) (Mt)

29

9

0%

10%

48%

28 - 29

(4%) - (1%)

(i)     Other copper comprises Pampa Norte (including Cerro Colorado production for the first half of the 2019 financial year), Olympic Dam and Antamina.

(ii)    Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

(iii)   Given our intention to exit Onshore US, no annual guidance for the 2019 financial year for these assets will be provided; however, until completion, we expect a production run rate broadly consistent with the second half of the 2018 financial year.

Summary of disclosures

BHP expects its financial results for the second half of the 2018 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 the financial results on 21 August 2018. Accordingly the information is subject to update.

Description

H2 FY18
impact
US$M(i)

Classification(ii)

Non-cash fair value adjustment related to the Angostura (Trinidad and Tobago) gas sale embedded derivative

~60

↑ Operating costs

Exploration expense (including petroleum and minerals exploration programs)

448

↑ Exploration expense

The Group's adjusted effective tax rate for the full year  is expected to be within the guidance range of 30 to 35 per cent

-

Income tax expense

Non-cash fair value adjustments related to interest rate and exchange rate movements (weaker US dollar in the period) are expected to reduce net debt in the June 2018 half year

Under review

↓ Net debt

Dividends paid to non-controlling interests

~650

 ↑ Financing cash outflow

Financial impact on BHP Billiton Brasil of the Samarco Dam failure

440(iii)

Exceptional item charge

(i)     Numbers are not tax effected.

(ii)    There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant.

(iii)   The total financial impact on BHP Billiton Brasil of the Samarco Dam failure is expected to be US$650 million in the 2018 financial year (H1 US$210 million and H2 US$440 million).

 

2

Average realised prices

The average realised prices achieved for our major commodities are summarised below.

Average realised prices(i)

Jun H18

Dec H17

FY18

FY17

FY18
vs
FY17

Jun H18
vs
Jun H17

Jun H18
vs
Dec H17

Oil (crude and condensate) (US$/bbl)

67.07

53.76

60.12

47.61

26%

35%

25%

Natural gas (US$/Mscf)(ii)

3.71

3.54

3.62

3.34

8%

7%

5%

   US natural gas (US$/Mscf)

2.77

2.84

2.80

2.88

(3%)

(7%)

(2%)

LNG (US$/Mscf)

8.65

7.48

8.07

6.84

18%

17%

16%

Copper (US$/lb)

3.05

3.20

3.12

2.54

23%

13%

(5%)

Iron ore (US$/wmt, FOB)

56.86

56.54

56.71

58.42

(3%)

(8%)

1%

Metallurgical coal (US$/t)

189.66

164.22

177.22

163.30

9%

16%

15%

   Hard coking coal (US$/t)(iii)

205.80

182.29

194.59

179.83

8%

14%

13%

   Weak coking coal (US$/t)(iii)

143.40

120.99

131.70

121.32

9%

19%

19%

Thermal coal (US$/t)(iv)

86.47

87.49

86.94

74.67

16%

15%

(1%)

Nickel metal (US$/t)

13,974

11,083

12,591

10,184

24%

43%

26%

(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)    Includes internal sales.

(iii)   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.

(iv)   Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

The majority of iron ore shipments were linked to the index price for the month of shipment, with price differentials predominantly a reflection of product quality and market fundamentals. The majority of metallurgical coal and energy coal exports were linked to the index price for the month of shipment or sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.

At 30 June 2018, the Group had 364 kt of outstanding copper sales that were revalued at a weighted average price of US$3.01 per pound. The final price of these sales will be determined in the 2019 financial year. In addition, 254 kt of copper sales from the 2017 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase Underlying EBITDA(3) by US$2 million in the 2018 financial year and is included in the average realised copper price in the above table.

Major development projects

During the June 2018 quarter, the BHP Board approved US$2.9 billion (BHP share; US$3.4 billion 100 per cent) in capital expenditure for the South Flank sustaining iron ore project in Western Australia. A US$122 million increase in the budget of the Jansen project to US$2.7 billion has been incorporated to fund support services at the site as work continues on completion of the shafts. The forecast for the North West Shelf Greater Western Flank-B project has been reduced by US$98 million to US$216 million as the project is tracking ahead of schedule.

At the end of the 2018 financial year, BHP had five major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$10.6 billion over the life of the projects.

3

Corporate update

On 25 June 2018, Samarco, Vale and BHP, together with the Federal Government of Brazil, the states of Espirito Santo and Minas Gerais and the Public Prosecutors agreed an arrangement which settles the BRL20 billion Civil Claim, enhances community participation in decisions related to the remediation and compensation programs, and establishes a process to renegotiate those programs and to progress settlement of the BRL155 billion Civil Claim (Governance Agreement). The Governance Agreement is conditional on the Federal Government of Brazil signing the Agreement and ratification by the 12th Federal Court of Minas Gerais.

On 29 June 2018, BHP announced a total of US$211 million in further financial support for the Renova Foundation and Samarco until 31 December 2018. This comprises US$158 million to fund the Renova Foundation which will be offset against the Group's provision for the Samarco dam failure and a short-term facility of up to US$53 million to be made available to Samarco.  

Unrelated to the new Governance Agreement, BHP expects to recognise an income statement charge in the second half of the 2018 financial year of US$440 million in respect of the Samarco dam failure. This charge largely reflects updated assumptions relating to the continuation of the fishing ban, the number of eligible claimants, and the timeline and technical scope for resettlement of the communities.

The US$440 million income statement charge will be recognised as an exceptional item in the June 2018 half year.

The net increase in the provision is approximately US$250 million due to the offsetting impact of payments to the Renova Foundation to fund remediation and compensation Programs under the Framework Agreement. 

Petroleum

Production



FY18

Jun
2018
Qtr

FY18
vs
FY17

Jun Q18
vs
Jun Q17

Jun Q18
vs
Mar Q18

Crude oil, condensate and natural gas liquids (MMboe)

86

22

(11%)

(10%)

8%

Natural gas (bcf)

636

163

(5%)

(2%)

11%

Total petroleum production (MMboe)

192

49

(8%)

(6%)

9%

Petroleum - Total petroleum production for the 2018 financial year decreased by eight per cent to 192 MMboe.

In our Conventional business, volumes are expected to decrease to between 113 and 118 MMboe in the 2019 financial year as a result of additional downtime from planned dry dock maintenance at Pyrenees and natural field decline across the portfolio. Given our intention to exit Onshore US, no annual guidance for the 2019 financial year for these assets will be provided, however until completion, which we are targeting by the end of the 2018 calendar year, we expect a production run rate broadly consistent with the second half of the 2018 financial year.

Production breakdown

FY18

vs       FY17



Crude oil, condensate and natural gas liquids (MMboe)

Conventional

57

(8%)

Hurricane Harvey and Hurricane Nate in the Gulf of Mexico and natural field decline across the portfolio.

Onshore US

29

(16%)

Hurricane Harvey and natural field decline, which more than offset improved recoveries and additional wells in the Black Hawk and Permian.

Total

86

(11%)


Natural gas (bcf)




Conventional

377

(4%)

Maintenance at Bass Strait and Macedon.

Onshore US

259

(6%)

Hurricane Harvey and natural field decline, partially offset by additional wells in the Eagle Ford, Permian and Haynesville.

Total

636

(5%)


4

In the June 2018 quarter, BHP agreed to sell its 90 per cent interest in the Minerva Gas Plant in Victoria to the Casino Henry Joint Venture. The agreement provides for the transfer of the plant and associated land after the cessation of current operations processing gas from the offshore Minerva gas field, and remains conditional on completion of regulatory approvals and assignments. 

Projects

Project and
ownership

Capital expenditure (US$m)

Initial production target date

Capacity

Progress

North West Shelf Greater Western Flank-B
(Australia)
16.67% (non-operator)

216

CY19

To maintain LNG plant throughput from the North West Shelf operations.

Ahead of schedule and budget. The overall project is 87% complete.

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

2,154

CY22

New floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil per day.

On schedule and budget. The overall project is 23% complete.

Petroleum capital expenditure for the 2018 financial year increased by five per cent to US$1.6 billion.

Onshore US development activity

Onshore US drilling and development expenditure for 2018 financial year was US$0.9 billion. Our operated rig count declined from seven to five during the June 2018 quarter.

FY18


        Liquids focused areas

     Gas focused areas


(FY17)

 

Eagle Ford

Permian

Haynesville

Fayetteville

Total

Capital expenditure(i)

US$ billion

0.3 (0.3)

0.4 (0.2)

0.2 (0.1)

0.0 (0.0)

0.9 (0.6)

Rig allocation

At period end

2 (1)

2 (1)

1 (3)

0 (0)

5 (5)

Net wells drilled and completed(ii)

Period total

36 (51)

29 (21)

20 (5)

0 (2)

85 (79)

Net productive wells

At period end

958 (963)

155 (126)

393 (394)

1,042 (1,044)

2,548 (2,527)

(i)     Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.

(ii)    Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.

The exit process for our Onshore US assets is progressing to plan. Bids have been received and we aim to announce one or more transactions within the coming months, targeting completion of any transactions by the end of the 2018 calendar year.

Petroleum exploration

Exploration and appraisal wells drilled during the June 2018 quarter are summarised below.


Well


Location


Target


BHP equity


Spud date


Water depth

Total well depth


Status

Samurai-2

US Gulf of Mexico GC432

Oil

50%

(Murphy Operator)

16 April 2018

1,088 m

8,615 m

Hydrocarbons encountered, drilling ahead

Victoria-1

Trinidad & Tobago Block 5

Gas

65%

(BHP Operator)

12 June 2018

1,828 m

2,545 m

Hydrocarbons encountered, drilling ahead

In the US Gulf of Mexico, we increased our equity interest in the Murphy operated Samurai prospect (GC432 and GC476), the northern extension of the Wildling sub-basin, from 33.33 to 50 per cent. The Samurai-2 exploration well was spud on 16 April 2018 and encountered hydrocarbons in multiple horizons not previously observed by the Wildling-2 exploration well. As reported in the March 2018 Operational Review, we were the apparent high bidder on three blocks, EB914 and EB699 in the western Gulf of Mexico and GC823 to the west of the Mad Dog field, which we co-own with BP and Chevron. All three leases were awarded by the Regulator during the June 2018 quarter.

5

In Trinidad and Tobago, following the gas discovery at LeClerc, we commenced Phase 2 of our deepwater exploration drilling campaign to further assess the commercial potential of the Magellan play. The Victoria-1 exploration well was spud on 12 June 2018 and encountered gas. Following completion of the Victoria-1 well, we expect the Deepwater Invictus to drill the Bongos prospect in Northern Trinidad and Tobago.

In Mexico, we expect to begin drilling the first appraisal well at Trion in the December 2018 quarter.

In Australia, the fast track of the Exmouth sub-basin 3D seismic data has been received. The final processed data will be delivered during the September 2018 quarter.

Petroleum exploration expenditure for the 2018 financial year was US$709 million, of which US$516 million was expensed.

Copper

Production



FY18

Jun
2018
Qtr

FY18
vs
FY17

Jun Q18
vs
Jun Q17

Jun Q18
vs
Mar Q18

Copper (kt)

1,753

463

32%

20%

1%

Zinc (t)

119,800

35,983

37%

24%

41%

Uranium oxide concentrate (t)

3,364

1,123

(8%)

52%

0%

Copper - Total copper production for the 2018 financial year increased by 32 per cent to 1,753 kt. Total copper production of between 1,675 and 1,770 kt is expected in the 2019 financial year.

Escondida copper production for the 2018 financial year increased by 57 per cent to 1,213 kt, reflecting a full year of production following the industrial action in the previous year and supported by the start-up of the Los Colorados Extension project on 10 September 2017. Production of between 1,120 and 1,180 kt is forecast in the 2019 financial year, as higher expected throughput is offset by a significant decrease in average concentrator head grade consistent with the mine plan. The existing agreement with Union N°1 will expire on 1 August 2018 and negotiations for a new agreement are in progress. The Escondida Water Supply Extension (EWSE) is in execution phase and will deliver first water production in the 2020 financial year.

Pampa Norte copper production increased by four per cent to 264 kt supported by record production at Spence of 200 kt reflecting better recoveries and higher utilisation of the solvent extraction and electrowinning plants. On 19 June 2018, BHP entered into an agreement to sell Cerro Colorado to EMR Capital(4). The transaction is expected to close during the December 2018 quarter, subject to financing and customary closing conditions. Production at Spence is expected to be between 185 and 200 kt in the 2019 financial year, with volumes weighted to the second half as planned maintenance in May and June 2018 resulted in a lower stacking rate. During the period, we successfully completed the advanced negotiation with Spence Union N°1 (operators and maintenance) with the new agreement effective from 1 June 2018 for 36 months. An agreement was also reached with the Cerro Colorado Union N°2 (supervisors and staff) on the terms and conditions for a new collective agreement, effective for 36 months from 1 July 2018.

Olympic Dam copper production decreased by 18 per cent to 137 kt as a result of the planned major smelter maintenance campaign in the first half of the 2018 financial year and a slower than planned ramp-up. The operation returned to full capacity during the June 2018 quarter. Production is expected to increase to between 200 and 220 kt in the 2019 financial year reflecting improved operational stability and higher ore grades from the Southern Mine Area.

Antamina copper production increased by four per cent to 140 kt and zinc production increased 37 per cent to 120 kt due to higher head grades as mining continued through a zinc-rich ore zone. Copper production is expected to remain at similar levels in the 2019 financial year at approximately 135 kt, while zinc production is expected to be approximately 85 kt, consistent with the mine plan.

 

6

Projects

Project and
ownership

Capital expenditure (US$m)

Initial production target date

Capacity

Progress

Spence Growth Option
(Chile)
100%

 2,460

FY21

New 95 ktpd concentrator is expected to increase Spence's payable copper in concentrate production by approximately 185 ktpa in the first 10 years of operation and extend the mining operations by more than 50 years.

On schedule and budget. The overall project is 14% complete.

Iron Ore

Production



FY18

Jun
2018
Qtr

FY18
vs
FY17

Jun Q18
vs
Jun Q17

Jun Q18
vs
Mar Q18

Iron ore (kt)

238,421

63,586

3%

6%

10%

Iron ore - Total iron ore production for the 2018 financial year increased by three per cent to a record 238 Mt (275 Mt on a 100 per cent basis). WAIO production of between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per cent basis, is expected in the 2019 financial year.  A program of work to optimise maintenance schedules across our supply chain and improve port reliability and performance is planned for the September 2018 quarter, with a corresponding impact expected on production and unit costs.

At WAIO, increased production was supported by improved productivity and stability across the supply chain, including both rail and port, which has enabled record production at Jimblebar and Mining Area C. This was partially offset by the impact of lower opening stockpile levels following the Mt Whaleback fire in June 2017 and unplanned car dumper maintenance in the March 2018 quarter. WAIO produced at record annualised rates of 289 Mtpa (100 per cent basis) in the June 2018 quarter.

On 14 June 2018, the BHP Board approved US$2.9 billion (BHP share; US$3.4 billion 100 per cent) in capital expenditure for the South Flank project. The South Flank project will fully replace production from the 80 Mtpa (100 per cent basis) Yandi mine, with first ore targeted in the 2021 calendar year. South Flank will contribute to an increase in WAIO's average iron grade from 61 per cent to 62 per cent, and the overall proportion of lump from 25 per cent to approximately 35 per cent.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.

Projects

Project and
ownership

Capital expenditure (US$m)

Initial production target date

Capacity

Progress

South Flank
(Australia)
85%

 3,061(i)

CY21

Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi mine.

Project approved on 14 June 2018.

(i)     Includes initial funding of US$184 million announced on 26 June 2017.

 

7

Coal

Production



FY18

Jun
2018
Qtr

FY18
vs
FY17

Jun Q18
vs
Jun Q17

Jun Q18
vs
Mar Q18

Metallurgical coal (kt)

42,640

12,009

7%

41%

16%

Energy coal (kt)

29,158

9,023

0%

10%

48%

Metallurgical coal - Metallurgical coal production for the 2018 financial year increased by seven per cent to a record 43 Mt. Production is expected to increase to between 43 and 46 Mt in the 2019 financial year, with volumes weighted to the second half of the year. An extensive maintenance program is planned for the first half of the 2019 financial year, with a corresponding impact expected on production and unit costs.

At Queensland Coal, record production for the 2018 financial year was supported by record stripping performance, increased truck hours and higher wash-plant utilisation from low-cost debottlenecking activities. Production records were achieved at Peak Downs, Saraji, Caval Ridge, South Walker Creek and Poitrel. In the June 2018 quarter production increased by 16 per cent from the previous quarter following improved operational conditions at Blackwater (geotechnical issues) and Broadmeadow (challenging roof conditions), increased feed rates at the Caval Ridge wash-plant, and utilisation of additional wash-plant capacity at Poitrel following the purchase of the remaining 50 per cent of the Red Mountain processing facility.

On 30 May 2018, BHP announced it has entered into an arrangement to sell the Gregory Crinum mine, which was placed into care and maintenance in January 2016, to Sojitz Corporation(5). Completion of the sale is subject to the fulfilment of conditions precedent including customary regulatory approvals, which could take several months. 

On the Central Queensland Coal Network, where Aurizon is the rail track provider, we continue to engage with stakeholders and encourage Aurizon to ensure infrastructure productivity is maximised while they await the Queensland Competition Authority's final decision in respect of Access Undertaking 5 (UT5).

The Caval Ridge Southern Circuit project is progressing according to plan, and is expected to ramp-up early in the 2019 financial year. A longwall move at Broadmeadow is scheduled for the December 2018 quarter.

Energy coal - Energy coal production for the 2018 financial year was flat at 29 Mt. Production is expected to remain broadly unchanged at approximately 28 to 29 Mt in the 2019 financial year.

New South Wales Energy Coal production increased by two per cent, supported by record production and sales volumes during the June 2018 quarter from improved stripping performance, utilisation of raw coal inventory build from the prior quarter and additional bypass coal. Increasing stripping requirements in the September 2018 quarter are expected to result in lower production rates for the quarter compared to the remainder of the 2019 financial year. This was offset by a three per cent decline in Cerrejón production due to unfavourable weather impacts on mine sequencing, equipment availability and higher strip ratio areas being mined.

Other

Nickel production



FY18

Jun
2018
Qtr

FY18
vs
FY17

Jun Q18
vs
Jun Q17

Jun Q18
vs
Mar Q18

Nickel (kt)

90.6

24.9

6%

(1%)

21%

Nickel - Nickel West production for the 2018 financial year increased by six per cent to 91 kt, with increased production at the Mt Keith and Leinster operations supporting record metal production. Nickel production for the 2019 financial year is expected to remain broadly unchanged from the 2018 financial year.

 

8

Potash project

Project and
ownership

Investment
(US$m)

Scope

Progress

Jansen Potash
(Canada)
100%

2,700

Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.

Budget revised to fund support services at the site as work continues on completion of the shafts. The project is 79% complete.

Minerals exploration

Minerals exploration expenditure for the 2018 financial year was US$165 million, of which US$124 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Peru, Canada, South Australia and the South-West United States.

 

Variance analysis relates to the relative performance of BHP and/or its operations during the 2018 financial year compared with the 2017 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. Copper equivalent production based on 2017 financial year average realised prices.

 

The following footnotes apply to this Operational Review:

(1)   Excludes production from Onshore US and Cerro Colorado.

(2)   Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

(3)   Underlying EBIT and Underlying EBITDA are used to reflect the underlying performance of BHP. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items. Underlying EBITDA is Underlying EBIT before depreciation, amortisation and impairment.

(4)   On 19 June 2018, BHP announced it has entered into an agreement to sell the Cerro Colorado copper mine in Chile to EMR Capital. The total cash consideration consist of US$230 million to be paid to BHP after the closing of the transaction, plus approximately US$40 million in proceeds from the post-closing sale of certain copper inventory, and a contingent payment of up to US$50 million to be paid in the future, depending upon copper price performance.

(5)   On 30 May 2018, BHP Billiton Mitsubishi Alliance (BMA) announced it has entered into an agreement to sell the Gregory Crinum coal mine in central Queensland to Sojitz Corporation for A$100 million (100 per cent basis). In addition to the sale of the mine to Sojitz, BHP will be providing appropriate funding for rehabilitation of existing areas of disturbance at the site, with all rehabilitation liabilities transferred to Sojitz on completion.

 

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 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 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', 'Group', 'BHP Group', 'we', 'us', 'our' and ourselves' are used to refer to BHP Billiton Limited, BHP Billiton Plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 28 'Subsidiaries' in section 5.1 of BHP's 30 June 2017 Annual Report on Form 20-F and in note 13 'Related undertaking of the Group' in section 5.2 of BHP's 30 June 2017 Annual Report on Form 20-F. Notwithstanding that this release may include production and other data from non-operated assets, non-operated assets are not included in the BHP Group.

 

9

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

 

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United Kingdom and South Africa

 

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10

Production summary

 



Quarter ended

Year to date


BHP
interest

Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

Petroleum (1)









Petroleum









Crude oil, condensate and NGL (Mboe)









Onshore US


8,501

7,079

7,423

6,256

8,266

29,024

34,371

Conventional


15,612

15,090

14,869

13,960

13,486

57,405

62,708



 

 

 

 

 

 

 

Total


24,113

22,169

22,292

20,216

21,752

86,429

97,079



 

 

 

 

 

 

 

Natural gas (bcf)









Onshore US


67.2

61.4

60.5

64.1

72.5

258.5

275.0

Conventional


99.5

107.3

96.1

82.9

90.7

377.0

392.8



 

 

 

 

 

 

 

Total


166.7

168.7

156.6

147.0

163.2

635.5

667.8



 

 

 

 

 

 

 












 

 

 

 

 

 

 

Total petroleum production (MMboe)


51.9

50.3

48.4

44.7

49.0

192.4

208.4



 

 

 

 

 

 

 










Copper (2)









Copper









Payable metal in concentrate (kt)









Escondida (3)

57.5%

162.4

196.3

238.5

244.9

246.1

925.8

539.6

Antamina

33.8%

38.5

35.9

33.8

35.2

34.6

139.5

133.8



 

 

 

 

 

 

 

Total


200.9

232.2

272.3

280.1

280.7

1,065.3

673.4



 

 

 

 

 

 

 










Cathode (kt)









Escondida (3)

57.5%

62.8

71.9

76.1

69.4

70.1

287.5

232.0

Pampa Norte (4)

100%

72.3

58.0

68.4

66.8

70.6

263.8

254.3

Olympic Dam

100%

51.4

42.0

12.2

40.5

42.0

136.7

166.3



 

 

 

 

 

 

 

Total


186.5

171.9

156.7

176.7

182.7

688.0

652.6



 

 

 

 

 

 

 












 

 

 

 

 

 

 

Total copper (kt)


387.4

404.1

429.0

456.8

463.4

1,753.3

1,326.0



 

 

 

 

 

 

 










Lead









Payable metal in concentrate (t)









Antamina

33.8%

1,799

1,415

1,009

464

546

3,434

5,473



 

 

 

 

 

 

 

Total


1,799

1,415

1,009

464

546

3,434

5,473



 

 

 

 

 

 

 










Zinc









Payable metal in concentrate (t)









Antamina

33.8%

29,076

29,201

29,054

25,562

35,983

119,800

87,502



 

 

 

 

 

 

 

Total


29,076

29,201

29,054

25,562

35,983

119,800

87,502



 

 

 

 

 

 

 










Gold









Payable metal in concentrate (troy oz)









Escondida (3)

57.5%

33,941

50,525

50,279

59,953

68,345

229,102

110,858

Olympic Dam (refined gold)

100%

28,188

13,101

15,969

28,989

33,497

91,556

104,146



 

 

 

 

 

 

 

Total


62,129

63,626

66,248

88,942

101,842

320,658

215,004



 

 

 

 

 

 

 










Silver









Payable metal in concentrate (troy koz)








Escondida (3)

57.5%

1,234

1,737

2,193

2,339

2,527

8,796

4,326

Antamina

33.8%

1,691

1,596

1,331

1,189

1,321

5,437

5,783

Olympic Dam (refined silver)

100%

243

131

135

248

278

792

768



 

 

 

 

 

 

 

Total


3,168

3,464

3,659

3,776

4,126

15,025

10,877



 

 

 

 

 

 

 

12



Quarter ended

Year to date


BHP
interest

Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

Uranium









Payable metal in concentrate (t)









Olympic Dam

100%

737

880

243

1,118

1,123

3,364

3,661



 

 

 

 

 

 

 

Total


737

880

243

1,118

1,123

3,364

3,661



 

 

 

 

 

 

 










Molybdenum









Payable metal in concentrate (t)









Antamina

33.8%

328

402

579

420

261

1,662

1,144



 

 

 

 

 

 

 

Total


328

402

579

420

261

1,662

1,144



 

 

 

 

 

 

 


















Iron Ore









Iron Ore









Production (kt) (5)









Newman

85%

16,241

13,842

18,317

16,412

18,500

67,071

68,283

Area C Joint Venture

85%

13,016

13,099

13,575

12,802

12,041

51,517

48,744

Yandi Joint Venture

85%

17,415

14,559

16,348

15,802

17,339

64,048

65,355

Jimblebar (6)

85%

5,891

6,283

4,583

4,669

15,092

30,627

21,950

Wheelarra

85%

7,578

7,804

8,734

8,006

614

25,158

27,020

Samarco

50%

-

-

-

-

-

-

-



 

 

 

 

 

 

 

Total


60,141

55,587

61,557

57,691

63,586

238,421

231,352



 

 

 

 

 

 

 









Coal  









Metallurgical coal









Production (kt) (7)









BMA

50%

6,394

8,296

7,394

7,983

9,220

32,893

31,458

BHP Mitsui Coal (8)

80%

2,100

2,271

2,291

2,396

2,789

9,747

8,312

Haju (9)

75%

-

-

-

-

-

-

129



 

 

 

 

 

 

 

Total


8,494

10,567

9,685

10,379

12,009

42,640

39,899



 

 

 

 

 

 

 










Energy coal









Production (kt)









USA

100%

-

-

-

-

-

-

451

Australia

100%

5,711

4,235

4,383

3,662

6,261

18,541

18,176

Colombia

33.3%

2,475

2,497

2,914

2,444

2,762

10,617

10,959



 

 

 

 

 

 

 

Total


8,186

6,732

7,297

6,106

9,023

29,158

29,586



 

 

 

 

 

 

 










Other  









Nickel









Saleable production (kt)









Nickel West

100%

25.2

22.8

22.4

20.5

24.9

90.6

85.1



 

 

 

 

 

 

 

Total


25.2

22.8

22.4

20.5

24.9

90.6

85.1



 

 

 

 

 

 

 

 

 

 

13

                                                                                                                                                                                                                                                                                                                

(1)   LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.                                                 

(2)   Metal production is reported on the basis of payable metal.                                                                                                                                                                                                         

(3)   Shown on a 100% basis. BHP interest in saleable production is 57.5%.                                                                                                                                                                                        

(4)   Includes Cerro Colorado and Spence.                                                                                                                                                                                                                                           

(5)   Iron ore production is reported on a wet tonnes basis.                                                                                                                                                                                                                 

(6)   Shown on a 100% basis. BHP interest in saleable production is 85%.                                                                                                                                                                                           

(7)   Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.                                                         

(8)   Shown on a 100% basis. BHP interest in saleable production is 80%.                                                                                                                                                                                           

(9)   Shown on a 100% basis. BHP interest in saleable production is 75%.                                                                                                                                                                                           

                                                                                                                                                                                                                                                                                                              

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

Production and sales report



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017










Petroleum (1)


















Bass Strait









Crude oil and condensate

(Mboe)

1,552

1,815

1,513

1,126

1,361

5,815

6,599

NGL

(Mboe)

1,661

1,950

1,584

1,170

1,428

6,132

6,459

Natural gas

(bcf)

37.4

42.6

32.9

20.5

29.9

125.9

139.3



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

9.4

10.9

8.6

5.7

7.8

32.9

36.3



 

 

 

 

 

 

 










North West Shelf









Crude oil and condensate

(Mboe)

1,314

1,474

1,442

1,377

1,267

5,560

5,507

NGL

(Mboe)

209

227

200

210

186

823

964

Natural gas

(bcf)

32.5

36.2

36.2

35.8

34.2

142.4

140.3



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

6.9

7.7

7.7

7.6

7.2

30.1

29.9



 

 

 

 

 

 

 










Pyrenees









Crude oil and condensate

(Mboe)

1,606

1,510

1,210

1,250

1,168

5,138

6,517



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.6

1.5

1.2

1.3

1.2

5.1

6.5



 

 

 

 

 

 

 










Other Australia (2)









Crude oil and condensate

(Mboe)

9

9

8

8

7

32

35

Natural gas

(bcf)

16.3

16.1

13.3

13.4

13.9

56.7

66.1



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

2.7

2.7

2.2

2.2

2.3

9.5

11.1



 

 

 

 

 

 

 










Atlantis (3)









Crude oil and condensate

(Mboe)

3,637

3,022

3,377

3,459

3,471

13,329

13,835

NGL

(Mboe)

213

218

195

248

217

878

923

Natural gas

(bcf)

1.9

1.6

1.8

1.8

1.5

6.7

7.1



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

4.2

3.5

3.9

4.0

3.9

15.3

15.9



 

 

 

 

 

 

 










Mad Dog (3)









Crude oil and condensate

(Mboe)

1,167

1,020

1,231

1,140

581

3,972

4,472

NGL

(Mboe)

68

44

72

55

27

198

215

Natural gas

(bcf)

0.2

0.1

0.2

0.2

0.1

0.6

0.7



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.3

1.1

1.3

1.2

0.6

4.3

4.8



 

 

 

 

 

 

 










Shenzi (3)









Crude oil and condensate

(Mboe)

2,588

2,291

2,513

2,323

2,110

9,237

10,587

NGL

(Mboe)

179

141

184

140

151

616

565

Natural gas

(bcf)

0.6

0.4

0.5

0.4

0.4

1.7

2.1



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

2.9

2.5

2.8

2.5

2.3

10.1

11.5



 

 

 

 

 

 

 










Eagle Ford (4)









Crude oil and condensate

(Mboe)

4,278

3,457

3,720

2,838

3,826

13,841

17,608

NGL

(Mboe)

2,240

1,856

2,100

1,555

1,767

7,278

9,021

Natural gas

(bcf)

15.1

13.8

14.4

12.6

13.9

54.7

63.8



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

9.0

7.6

8.2

6.5

7.9

30.2

37.3



 

 

 

 

 

 

 

 

15



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017










Permian (4)









Crude oil and condensate

(Mboe)

1,336

1,179

1,142

1,398

1,903

5,622

5,331

NGL

(Mboe)

646

587

460

465

770

2,282

2,388

Natural gas

(bcf)

6.2

4.5

3.6

4.1

6.4

18.6

19.0



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

3.0

2.5

2.2

2.5

3.7

11.0

10.9



 

 

 

 

 

 

 










Haynesville (4)









Crude oil and condensate

(Mboe)

1

-

1

-

-

1

5

NGL

(Mboe)

-

-

-

-

-

-

18

Natural gas

(bcf)

21.4

21.5

22.0

28.7

33.1

105.3

95.6



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

3.6

3.6

3.7

4.8

5.5

17.6

16.0



 

 

 

 

 

 

 










Fayetteville (4)









Natural gas

(bcf)

24.5

21.6

20.5

18.7

19.1

79.9

96.6



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

4.1

3.6

3.4

3.1

3.2

13.3

16.1



 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

Production and sales report



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

Petroleum (1) (continued)


















Trinidad/Tobago









Crude oil and condensate

(Mboe)

139

118

135

232

233

718

562

Natural gas

(bcf)

9.4

9.7

10.5

10.0

9.8

40.0

32.6



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

1.7

1.7

1.9

1.9

1.9

7.4

6.0



 

 

 

 

 

 

 










Other Americas (3) (5)









Crude oil and condensate

(Mboe)

238

229

207

189

313

938

1,039

NGL

(Mboe)

10

5

3

3

22

33

22

Natural gas

(bcf)

0.1

0.1

0.1

-

0.3

0.5

0.4



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

0.3

0.3

0.2

0.2

0.4

1.1

1.1



 

 

 

 

 

 

 










UK









Crude oil and condensate

(Mboe)

64

40

22

43

38

143

268

NGL

(Mboe)

16

39

13

18

18

88

119

Natural gas

(bcf)

1.1

0.5

0.6

0.8

0.6

2.5

4.2



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

0.3

0.2

0.1

0.2

0.2

0.6

1.1



 

 

 

 

 

 

 










Algeria









Crude oil and condensate

(Mboe)

942

938

960

969

888

3,755

4,020



 

 

 

 

 

 

 

Total petroleum products

(MMboe)

0.9

0.9

1.0

1.0

0.9

3.8

4.0



 

 

 

 

 

 

 










BHP Petroleum









Crude oil and condensate









Onshore US

(Mboe)

5,615

4,636

4,863

4,236

5,729

19,464

22,944

Conventional

(Mboe)

13,256

12,466

12,618

12,116

11,437

48,637

53,441



 

 

 

 

 

 

 

Total

(Mboe)

18,871

17,102

17,481

16,352

17,166

68,101

76,385



 

 

 

 

 

 

 










NGL









Onshore US

(Mboe)

2,886

2,443

2,560

2,020

2,537

9,560

11,427

Conventional

(Mboe)

2,356

2,624

2,251

1,844

2,049

8,768

9,267



 

 

 

 

 

 

 

Total

(Mboe)

5,242

5,067

4,811

3,864

4,586

18,328

20,694



 

 

 

 

 

 

 










Natural gas









Onshore US

(bcf)

67.2

61.4

60.5

64.1

72.5

258.5

275.0

Conventional

(bcf)

99.5

107.3

96.1

82.9

90.7

377.0

392.8



 

 

 

 

 

 

 

Total

(bcf)

166.7

168.7

156.6

147.0

163.2

635.5

667.8



 

 

 

 

 

 

 










Total petroleum products









Onshore US

(Mboe)

19,701

17,312

17,506

16,939

20,349

72,107

80,204

Conventional

(Mboe)

32,195

32,973

30,886

27,777

28,603

120,238

128,175



 

 

 

 

 

 

 

Total

(Mboe)

51,896

50,286

48,392

44,716

48,952

192,346

208,379



 

 

 

 

 

 

 










(1)  Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.

(2) Other Australia includes Minerva and Macedon.                                                                                                                                                                      

(3)  Gulf of Mexico volumes are net of royalties.                                                                                                                                                                            

(4)  Onshore US volumes are net of mineral holder royalties.                                                                                                                                                        

(5)  Other Americas includes Neptune, Genesis and Overriding Royalty Interest.                                                                                                                     

17

Production and sales report



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

Copper









Metals production is payable metal unless otherwise stated.















Escondida, Chile (1)









Material mined

(kt)

93,389

104,867

101,371

103,385

106,788

416,411

316,801

Sulphide ore milled

(kt)

18,777

24,080

30,260

32,203

31,732

118,275

67,484

Average concentrator head grade

(%)

1.07%

1.06%

0.98%

0.96%

0.96%

0.99%

0.99%

Production ex mill

(kt)

167.0

204.2

245.7

252.6

253.6

956.1

557.5










Production









Payable copper

(kt)

162.4

196.3

238.5

244.9

246.1

925.8

539.6

Copper cathode (EW)

(kt)

62.8

71.9

76.1

69.4

70.1

287.5

232.0

 - Oxide leach

(kt)

20.3

22.4

27.4

24.5

27.1

101.4

80.4

 - Sulphide leach

(kt)

42.5

49.5

48.7

44.9

43.0

186.1

151.6



 

 

 

 

 

 

 

Total copper

(kt)

225.2

268.2

314.6

314.3

316.2

1,213.3

771.6



 

 

 

 

 

 

 










Payable gold concentrate

(troy oz)

33,941

50,525

50,279

59,953

68,345

229,102

110,858

Payable silver concentrate

(troy koz)

1,234

1,737

2,193

2,339

2,527

8,796

4,326










Sales









Payable copper

(kt)

163.3

195.1

236.7

228.3

260.3

920.4

534.6

Copper cathode (EW)

(kt)

56.0

61.6

84.1

61.7

80.9

288.3

232.8

Payable gold concentrate

(troy oz)

33,941

50,525

50,279

59,953

68,345

229,102

110,858

Payable silver concentrate

(troy koz)

1,234

1,737

2,193

2,339

2,527

8,796

4,326










(1)  Shown on a 100% basis. BHP interest in saleable production is 57.5%.                                                             

 

Pampa Norte, Chile









Cerro Colorado









Material mined

(kt)

15,760

21,381

20,191

17,766

17,918

77,256

58,235

Ore milled

(kt)

4,411

3,951

4,611

4,905

4,833

18,300

15,173

Average copper grade

(%)

0.53%

0.62%

0.59%

0.58%

0.58%

0.59%

0.60%










Production









Copper cathode (EW)

(kt)

18.8

13.3

17.4

13.6

19.0

63.3

64.7










Sales









Copper cathode (EW)

(kt)

19.8

12.3

17.7

13.7

20.9

64.6

65.5










Spence









Material mined

(kt)

24,230

22,314

23,096

21,463

23,103

89,976

93,442

Ore milled

(kt)

4,968

5,375

4,919

5,144

4,009

19,447

20,093

Average copper grade

(%)

1.13%

1.21%

1.18%

1.03%

1.11%

1.13%

1.14%










Production









Copper cathode (EW)

(kt)

53.5

44.7

51.0

53.2

51.6

200.5

189.6










Sales









Copper cathode (EW)

(kt)

55.7

43.0

52.2

49.8

57.1

202.1

187.4

18

Production and sales report



Quarter ended

Year to date

 



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

 

Copper (continued)









Metals production is payable metal unless otherwise stated.
















Antamina, Peru









Material mined (100%)

(kt)

62,254

59,216

59,125

58,085

59,002

235,428

244,491

Sulphide ore milled (100%)

(kt)

13,229

12,822

13,098

12,166

12,973

51,059

52,105

Average head grades









 - Copper

(%)

1.00%

0.94%

0.89%

1.01%

0.91%

0.94%

0.89%

 - Zinc

(%)

0.95%

0.99%

0.93%

1.01%

1.19%

1.03%

0.80%










Production









Payable copper

(kt)

38.5

35.9

33.8

35.2

34.6

139.5

133.8

Payable zinc

(t)

29,076

29,201

29,054

25,562

35,983

119,800

87,502

Payable silver

(troy koz)

1,691

1,596

1,331

1,189

1,321

5,437

5,783

Payable lead

(t)

1,799

1,415

1,009

464

546

3,434

5,473

Payable molybdenum

(t)

328

402

579

420

261

1,662

1,144










Sales









Payable copper

(kt)

36.9

31.9

37.0

32.1

36.6

137.6

132.9

Payable zinc

(t)

27,936

25,224

30,340

26,456

33,088

115,108

89,982

Payable silver

(troy koz)

1,513

1,475

1,470

1,052

1,311

5,308

5,482

Payable lead

(t)

1,493

1,624

972

859

595

4,050

4,835

Payable molybdenum

(t)

-

168

693

500

388

1,749

1,124

     









Olympic Dam, Australia









Material mined (1)

(kt)

1,974

1,851

1,391

2,056

2,201

7,499

8,008

Ore milled

(kt)

2,097

2,302

554

2,188

2,171

7,215

8,604

Average copper grade

(%)

2.30%

2.10%

2.22%

2.36%

2.12%

2.19%

2.08%

Average uranium grade

(kg/t)

0.58

0.55

0.58

0.71

0.69

0.64

0.62










Production









Copper cathode (ER and EW)

(kt)

51.4

42.0

12.2

40.5

42.0

136.7

166.3

Uranium oxide concentrate

(t)

737

880

243

1,118

1,123

3,364

3,661

Refined gold

(troy oz)

28,188

13,101

15,969

28,989

33,497

91,556

104,146

Refined silver

(troy koz)

243

131

135

248

278

792

768










Sales









Copper cathode (ER and EW)

(kt)

51.5

31.6

24.3

36.8

46.0

138.7

163.7

Uranium oxide concentrate

(t)

1,298

680

338

509

1,230

2,757

4,105

Refined gold

(troy oz)

24,726

22,435

17,999

20,715

35,714

96,863

97,194

Refined silver

(troy koz)

251

219

118

202

307

846

746










(1)  Material mined refers to run of mine ore mined and hoisted.                                                                                                  

 

 

19

Production and sales report



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017










Iron Ore









Iron ore production and sales are reported on a wet tonnes basis.















Pilbara, Australia









Production









Newman

(kt)

16,241

13,842

18,317

16,412

18,500

67,071

68,283

Area C Joint Venture

(kt)

13,016

13,099

13,575

12,802

12,041

51,517

48,744

Yandi Joint Venture

(kt)

17,415

14,559

16,348

15,802

17,339

64,048

65,355

Jimblebar (1)

(kt)

5,891

6,283

4,583

4,669

15,092

30,627

21,950

Wheelarra

(kt)

7,578

7,804

8,734

8,006

614

25,158

27,020



 

 

 

 

 

 

 

Total production

(kt)

60,141

55,587

61,557

57,691

63,586

238,421

231,352



 

 

 

 

 

 

 

Total production (100%)

(kt)

69,714

64,287

71,611

67,048

72,145

275,091

268,302



 

 

 

 

 

 

 










Sales









Lump

(kt)

15,104

13,896

15,145

13,993

15,173

58,207

56,191

Fines

(kt)

46,249

40,733

45,769

44,332

47,730

178,564

175,017



 

 

 

 

 

 

 

Total

(kt)

61,353

54,629

60,914

58,325

62,903

236,771

231,208



 

 

 

 

 

 

 

Total sales (100%)

(kt)

71,149

63,322

70,733

67,799

71,385

273,239

268,226



 

 

 

 

 

 

 

(1)  Shown on a 100% basis. BHP interest in saleable production is 85%.                                                                           

 

Samarco, Brazil (1)









Production

(kt)

-

-

-

-

-

-

-










Sales

(kt)

-

-

14

25

-

39

47

 

(1)  Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.                                                                                                                         

 

 

 

 

 

 

 

 

 

 

20

Production and sales report



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

Coal  









Coal production is reported on the basis of saleable product.










Queensland Coal









Production (1)









BMA









Blackwater

(kt)

1,766

1,985

1,470

1,384

1,849

6,688

7,296

Goonyella

(kt)

1,157

1,639

1,369

2,314

2,639

7,961

7,355

Peak Downs

(kt)

1,238

1,602

1,367

1,723

1,658

6,350

6,055

Saraji

(kt)

913

1,414

1,198

1,240

1,201

5,053

4,734

Daunia

(kt)

560

662

718

547

629

2,556

2,560

Caval Ridge

(kt)

760

994

1,272

775

1,244

4,285

3,458



 

 

 

 

 

 

 

Total BMA

(kt)

6,394

8,296

7,394

7,983

9,220

32,893

31,458



 

 

 

 

 

 

 










BHP Mitsui Coal (2)









South Walker Creek

(kt)

1,348

1,400

1,524

1,490

1,615

6,029

5,123

Poitrel

(kt)

752

871

767

906

1,174

3,718

3,189



 

 

 

 

 

 

 

Total BHP Mitsui Coal

(kt)

2,100

2,271

2,291

2,396

2,789

9,747

8,312



 

 

 

 

 

 

 

Total Queensland Coal

(kt)

8,494

10,567

9,685

10,379

12,009

42,640

39,770



 

 

 

 

 

 

 










Sales









Coking coal

(kt)

5,496

7,934

6,341

7,177

8,489

29,941

27,527

Weak coking coal

(kt)

2,502

3,150

2,816

2,598

2,866

11,430

10,721

Thermal coal

(kt)

142

102

173

168

85

528

598



 

 

 

 

 

 

 

Total

(kt)

8,140

11,186

9,330

9,943

11,440

41,899

38,846



 

 

 

 

 

 

 

(1)  Production figures include some thermal coal.          

(2)  Shown on a 100% basis. BHP interest in saleable production is 80%.

 

Haju, Indonesia (1)









Production

(kt)

-

-

-

-

-

-

129










Sales - export

(kt)

-

-

-

-

-

-

117










 

(1)  Shown on 100% basis. BHP interest in saleable production is 75%. BHP completed the sale of IndoMet Coal on 14 October 2016.

 

New Mexico, USA









Production









Navajo Coal (1)

(kt)

-

-

-

-

-

-

451



 

 

 

 

 

 

 

Total

(kt)

-

-

-

-

-

-

451



 

 

 

 

 

 

 










Sales thermal coal - local utility


-

-

-

-

-

-

105










 (1) The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP.

Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.

21

NSW Energy Coal, Australia









Production

(kt)

5,711

4,235

4,383

3,662

6,261

18,541

18,176










Sales









Export thermal coal

(kt)

4,913

3,622

4,048

3,181

5,795

16,646

16,499

Inland thermal coal

(kt)

327

405

411

400

160

1,376

1,400



 

 

 

 

 

 

 

Total

(kt)

5,240

4,027

4,459

3,581

5,955

18,022

17,899



 

 

 

 

 

 

 

     









Cerrejón, Colombia









Production

(kt)

2,475

2,497

2,914

2,444

2,762

10,617

10,959










Sales thermal coal - export

(kt)

2,803

2,518

2,619

2,480

2,763

10,380

11,043

     


















 

Production and sales report



Quarter ended

Year to date



Jun
2017

Sep
2017

Dec
2017

Mar
2018

Jun
2018

Jun
2018

Jun
2017

Other









Nickel production is reported on the basis of saleable product
















Nickel West, Australia









Production









Nickel contained in concentrate

(kt)

-

-

-

-

-

-

0.7

Nickel contained in finished matte

(kt)

5.3

6.8

4.6

1.3

6.4

19.1

13.5

Nickel metal

(kt)

19.9

16.0

17.8

19.2

18.5

71.5

70.9



 

 

 

 

 

 

 

Total nickel production

(kt)

25.2

22.8

22.4

20.5

24.9

90.6

85.1



 

 

 

 

 

 

 










Sales









Nickel contained in concentrate

(kt)

-

-

-

-

-

-

0.7

Nickel contained in finished matte

(kt)

4.9

4.6

6.4

2.1

5.9

19.0

13.0

Nickel metal

(kt)

18.1

16.6

17.9

19.7

17.8

72.0

69.3



 

 

 

 

 

 

 

Total nickel sales

(kt)

23.0

21.2

24.3

21.8

23.7

91.0

83.0



 

 

 

 

 

 

 

   









 

 

 

 

 

 

 

22


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