Wrap Text
Quarterly Activities Report
BHP Group Limited
BHP Group Limited ABN 49 004 028 077
Registered in Australia
Registered Office: Level 18, 171 Collins Street Melbourne VIC 3000
Share code: BHG
ISIN: AU000000BHP4
18 January 2024
Operational review for the half year ended 31 December 2023
Strong H1 in copper, iron ore and energy coal. Challenging half in metallurgical coal.
Tragically, a team member from BEP Engineering & Maintenance, a contracting
partner to BMA, was fatally injured in an incident at BMA’s Saraji mine
earlier this week. Our deepest sympathies are with their family, friends
and colleagues at this difficult time. We are committed to learning from
this tragedy and investigations into the incident are underway.
Operationally, BHP has had a solid first half. WA Iron Ore production was up 5%
quarter-on-quarter, while first half copper production rose 7% reflecting a
record half at Spence and ongoing strong performance and additional tonnes at
Copper South Australia. NSW Energy Coal had its best first half in five years, while
BMA had a tough six months following significant planned maintenance and low
starting inventories. At Nickel West, we are evaluating options to to mitigate the
impacts of the sharp fall in nickel prices.
We progressed our growth agenda during the quarter with ongoing construction of
the Jansen mine in Canada and the sanction of Jansen Stage 2, which doubles our
planned potash production capacity. In South Australia, we successfully
integrated our Copper SA business and significant exploration drilling beneath
Olympic Dam has identified attractive copper mineralisation above 1% grade along
a 2 km strike, with areas above 2%.
Mike Henry
BHP Chief Executive Officer
Summary
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Operational performance Portfolio
Production guidance unchanged, except at BMA Enhancing the quality of our portfolio
FY24 production guidance ranges remain unchanged for all assets with the exception of BMA which has been lowered to
between 23 and 25 Mt (46 - 50 Mt at 100%) excl. Blackwater and Daunia from the expected sale completion date of 2 April 2024.
Copper production increased/1/ 7%, including a record quarter at Carrapateena, and energy coal production increased 36%, with its FY24
production now expected to be in the upper end of the guidance range.
We are investing in growth with the approval of US$4.9 bn in Jansen Stage 2. We continued our strategic focus on higher
and quality metallurgical coal with the planned divestment of BMA's Blackwater and Daunia mines for cash consideration of up to
US$4.1 bn (100% basis).
We have undertaken ~62 km of exploratory drilling beneath Olympic Dam (OD Deeps), which has shown extensive mineralisation continuity,
with attractive copper grades of above 1% along more than 2 km in strike and more than 1 km in depth.
Results are included in Appendix 3.
---------------------------------------------------------------------------------------------------------------------------------
Financial performance Leadership
Unit cost guidance Executive Leadership Team update
WAIO, Escondida and Spence are expected to be within their respective unit cost guidance ranges at FY24, with BMA unit cost guidance
for FY24 increasing to between US$110/t and US$116/t as a result of the lowered production guidance.
In December, we announced a number of changes to our Executive Leadership Team, effective 1 March 2024, including that Catherine Raw
will join BHP from SSE plc as Chief Development Officer effective 29 April 2024.
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Quarter performance YTD performance FY24 production guidance
------------------------------- ----------------- ---------------------------------------
Production Q2 FY24 v Q1 FY24 v Q2 FY23 HY24 v HY23 Previous Current
----------------------------------- --------- --------- --------- ------- -------- ------------- -------------
Copper (kt)........................ 437.4 (4%) 3% 894.4 7% 1,720 - 1,910 1,720 - 1,910
Escondida (kt).................. 254.6 (7%) (1%) 527.9 3% 1,080 - 1,180 1,080 - 1,180 Unchanged
Pampa Norte (kt)................ 59.8 (24%) (22%) 138.1 (6%) 210 - 250/i/ 210 - 250/i/ Unchanged
Copper South Australia (kt)..... 82.0 14% 51% 153.7 48% 310 - 340 310 - 340 Unchanged
Antamina (kt)................... 39.2 21% 11% 71.7 (1%) 120 - 140 120 - 140 Unchanged
Carajas (kt).................... 1.8 50% 3.0 -- -- --
Iron ore (Mt)...................... 65.8 4% (2%) 129.0 (2%) 254 - 264.5 254 - 264.5
WAIO (Mt)....................... 64.5 4% (2%) 126.5 (3%) 250 - 260 250 - 260 Unchanged
WAIO (100% basis) (Mt).......... 72.7 5% (2%) 142.1 (3%) 282 - 294 282 - 294 Unchanged
Samarco (Mt).................... 1.3 6% 19% 2.5 13% 4 - 4.5 4 - 4.5 Unchanged
Metallurgical coal - BMA (Mt)...... 5.7 2% (18%) 11.3 (17%) 28 - 31 23 - 25 Lowered
BMA (100% basis) (Mt)........... 11.4 2% (18%) 22.6 (17%) 56 - 62 46 - 50 Lowered
Energy coal - NSWEC (Mt)........... 3.9 7% 35% 7.5 36% 13 - 15 13 - 15 Upper end
Nickel - Nickel West (kt).......... 19.6 (3%) 11% 39.8 4% 77 - 87 77 - 87 Unchanged
i Production guidance for FY24 is for Spence only and excludes Cerro Colorado
which produced 11 kt before ceasing production on 9 November 2023.
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BHP | Operational review for the half year ended 31 December 2023
Summary of disclosures
BHP expects its financial results for the half year ended 31 December 2023 (HY24) to
reflect certain items 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 20 February 2024. Accordingly, the information in the
table below contains preliminary information that is subject to update and
finalisation.
H1 impact/i/
Description (US$M) Classification/ii/
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Unit costs (at guidance FX)/iii/
----------------------------------------------------------------------------------------------------------------------------------
At HY24, unit costs at WAIO and Escondida are expected to be within their
respective guidance ranges, while Spence is expected to be in the lower half of
its guidance range. Unit costs at BMA are expected to be substantially higher
than the revised guidance range due to the lower volumes -- Operating costs
----------------------------------------------------------------------------------------------------------------------------------
For FY24, unit cost guidance for WAIO, Escondida and Spence remains unchanged.
Unit cost guidance for BMA has been increased to between US$110/t and US$116/t
as a result of the decrease in expected production, and excludes Blackwater and
Daunia from the expected date of completion of the divestment -- Operating costs
----------------------------------------------------------------------------------------------------------------------------------
Note: weaker Australian dollar and Chilean peso than guidance rates were realised Refer footnote/iii/
in the period
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Income statement
----------------------------------------------------------------------------------------------------------------------------------
The Group's adjusted effective tax rate for HY24 is expected to be in the lower
half of the guidance range of 30 - 35% -- Taxation expense
----------------------------------------------------------------------------------------------------------------------------------
Cash flow statement
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Working capital movements including net price impacts, closure and
rehabilitation payments and other movements ~1,500 - 1,700 Up Operating cash flow
----------------------------------------------------------------------------------------------------------------------------------
Cash tax paid ~3,500 - 3,600 Down Operating cash flow
----------------------------------------------------------------------------------------------------------------------------------
Dividends received from equity-accounted investments ~200 Up Operating cash flow
----------------------------------------------------------------------------------------------------------------------------------
Dividends paid to non-controlling interests ~600 Down Financing cash flow
----------------------------------------------------------------------------------------------------------------------------------
Payment of the H2 FY23 dividend ~4,000 Down Financing cash flow
----------------------------------------------------------------------------------------------------------------------------------
Balance sheet
----------------------------------------------------------------------------------------------------------------------------------
The Group's net debt balance at 31 December 2023 is expected to be between $12.5
and $13.0 bn -- Net debt
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Exceptional items
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Financial impact on BHP Brasil of the Samarco dam failure
The financial impact is expected to primarily relate to amortisation of
discounting on the provision and the impact of foreign exchange Refer footnote/iv/ Exceptional item
----------------------------------------------------------------------------------------------------------------------------------
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 HY24 of AUD/USD 0.65 (guidance rate AUD/USD 0.67)
and USD/CLP 874 (guidance rate USD/CLP 810).
iv Financial impact is the subject of ongoing work and is not yet finalised.
See Iron ore section for further information on Samarco operations.
----------------------------------------------------------------------------------------------------------------------------------
LOGO Further information in Appendix 1
Detailed production and sales information for all operations in Appendix 2
Detailed drilling results for Olympic Dam Deeps Appendix 3
----------------------------------------------------------------------------------------------------------------------------------
2
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BHP | Operational review for the half year ended 31 December 2023
Segment and asset performance | FY24 YTD v FY23 YTD
Copper
Production Total copper production increased by 7% to 894
kt. Copper guidance for FY24 remains unchanged at
between 1,720 and 1,910 kt.
894 kt Up 7%
Escondida 528 kt Up 3% (100% basis)
HY23 834 kt
Increased production was primarily due to higher concentrator feed grade of
FY24e 1,720 - 1,910 kt 0.81%, compared to 0.79% in HY23 and higher concentrator throughput.
Concentrator feed grade is expected to be between 0.85% and 0.90% for FY24.
Production guidance for FY24 remains unchanged at between 1,080 and 1,180 kt.
Average realised price
Pampa Norte 138 kt Down 6%
US$3.66/lb Down 5%
Production at Spence increased 4% to a half year record of 127 kt, driven by
HY23 US$3.49/lb improved concentrator throughput.
Record concentrate production was partially
offset by lower cathode production, in line with
an expected decline in stacked feed grade. The
concentrator plant modifications which commenced
in August 2022 are expected to be completed in
FY24.
We approved an incremental US$570 m in sustaining
capital to progress remediation of previously
identified anomalies in the Spence Tailings
Storage Facility (TSF). These plans have been
developed with the Engineer of Record,
Independent Tailings Review Board and expert
consultants. This is the first stage to remediate
the TSF. Production guidance for Spence for FY24
remains unchanged at between 210 and 250 kt and
remains subject to successful remediation of the
TSF anomalies.
Cerro Colorado entered temporary care and
maintenance in December 2023, after producing 11
kt for the period.
Copper South Australia 154 kt Up 48%
Production increased by 51 kt due to the
additional volumes from Prominent Hill and
Carrapateena. Successful integration of the
Copper South Australia asset has resulted in
strong underlying operational performance,
including record quarterly copper production at
Carrapateena in Q2. Strong smelter performance at
Olympic Dam was supported by increased transfers
of concentrate from Prominent Hill for processing
to higher margin cathode. Olympic Dam also
delivered record half year gold production and
sales.
Production guidance for FY24 remains unchanged at
between 310 and 340 kt.
Crusher 2 at Carrapateena remains on track to
come online in Q3 FY24 and to ramp up in Q4 FY24.
We have also had continued success with
exploration drilling across the asset. Drilling
to date beneath the known Olympic Dam ore body
(OD Deeps) confirms attractive mineralisation
continuity at above 1% copper grade (refer to
Appendix 3). At Oak Dam, there are 12 active
drill rigs (up from 10) and the accommodation
camp is nearing completion.
Other copper
At Antamina, copper production decreased by 1% to
72 kt, while zinc production was 10% higher at 69
kt, both in line with planned concentrator feed
grades. Production guidance at Antamina remains
unchanged for FY24 with expected copper
production of between 120 to 140 kt and zinc
production of between 85 and 105 kt.
Carajas produced 3.0 kt of copper and 2.1 troy
koz of gold. Operations were stopped in August
due to a geotechnical event, and gradually
restarted in October. In Q3 FY24 operations will
continue to ramp back up with shipments also
expected to resume.
3
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BHP | Operational review for the half year ended 31 December 2023
Iron ore
Production Total iron ore production decreased by 2% to 129 Mt. Guidance for FY24 remains
unchanged at between 254 and 264.5 Mt.
129 Mt Down 2%
WAIO 126 Mt Down 3% | 142 Mt (100% basis)
HY23 132 Mt
Lower production due to the continued tie-in activity for the Rail Technology
FY24e 254 - 264.5 Mt Programme (RTP1), and the impacts of the ongoing ramp up of the Central Pilbara
hub (South Flank and Mining Area C).
South Flank is on track to ramp up
to full production capacity of 80 Mtpa (100%
Average realised price basis) by the end of FY24. The planned tie-in of
the Port Debottlenecking
US$103.70/wmt Up 21% Project (PDP1) is on track to be completed in CY24, following commissioning on
7 December 2023.
HY23 US$85.46/wmt
Production guidance for FY24 remains unchanged at
between 250 and 260 Mt (282 and 294 Mt on a 100%
basis).
Samarco 2.5 Mt Up 13% | 5.1 Mt (100% basis)
Production increased as a result of higher
concentrator throughput. Production guidance for
FY24 remains unchanged at between 4 and 4.5 Mt.
In December 2023, BHP Brasil approved up to
US$925 m in further financial support for the
Renova Foundation. The funding is for CY24 and
will be deducted from the Group's provision for
the Samarco dam failure.
--------------------------------------------------------------------------------------------------------------
Coal
Metallurgical coal
Production BMA 11.3 Mt Down 17% | 22.6 Mt (100% basis)
11.3 Mt Down 17% On 15 January, a team member from BEP Engineering & Maintenance, a contracting partner to BMA,
was fatally injured in a vehicle incident at Saraji mine. Investigations are underway and we are
HY23 13.6 Mt working closely with the relevant authorities. Operations at Saraji were suspended and are
expected to progressively restart over the coming days.
FY24e 23 - 25 Mt
In the period, lower production was a result of a significant increase in planned maintenance
across the asset, the extended longwall move, and geotechnical faulting which
impacted underground operations at Broadmeadow until early November. Production
was also impacted by an increase in prime stripping to improve value chain
stability following depleted inventory positions arising from extended weather
impacts and labour constraints over recent years.
Average realised price Full year production guidance is now expected to be between 23 and 25 Mt (46 and
50 Mt on a 100% basis). This guidance excludes Blackwater and Daunia from the date
US$266.43/t Down 1% of completion of the divestment which is expected to occur on 2 April 2024. This
has been lowered from 28 - 31 Mt (56 and 62 Mt on a 100% basis), inclusive of
HY23 US$268.73/t Blackwater and Daunia.
Energy coal
Production NSWEC 7.5 Mt Up 36%
7.5 Mt Up 36% Increased production as a result of strong operating performance as eased
labour constraints and improved weather conditions enabled an uplift in truck
HY23 5.5 Mt productivity, with record annualised truck hours for the half. Domestic sales
under the NSW Government Coal Market Price Emergency (Directions for Coal
FY24e 13 - 15 Mt Mines) Notice commenced in Q4 FY23, which resulted in a lower proportion of
washed coal and contributed to the higher volumes.
Average realised price Production guidance for FY24 is expected to be at the upper end of the range of between 13 and 15 Mt.
US$123.29/t Up 65% We submitted a modification request to the NSW Government to extend mining
approval to 30 June 2030 in support of the 2030 closure plan. The modification
HY23 US$354.30/t submission went on public exhibition for four weeks in November 2023. The approval
process will continue through FY24.
Group & Unallocated
Nickel
Production Nickel West 40 kt Up 4%
40 kt Up 4% Production increased due to improved performance, and a shorter shutdown period
at the Kalgoorlie Smelter offsetting downtime at the Kwinana Refinery.
HY23 38 kt
Production guidance remains unchanged at between 77 and 87 kt for FY24.
FY24e 77 - 87 kt
The nickel industry is undergoing a number of structural changes and is at a
cyclical low in realised pricing. Nickel West is not immune to these challenges.
Average realised price Operations are being actively optimised, and options are being evalauted to mitigate
the impacts of the sharp fall in nickel prices. Given the market conditions, a carrying value
US$18,602/tDown 24% assessment of the Group's nickel assets is ongoing, and a further update will
be provided with the release of the financial results on 20 February 2024.
HY23 US$24,362/t
4
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BHP | Operational review for the half year ended 31 December 2023
Quarterly performance | Q2 FY24 v Q1 FY24
----------------------------------------------------------------- ---------------------------------------------------------------
Copper Iron ore
437 kt Down 4% Lower concentrator grade at Escondida and 66 Mt Up 4% Increased production at WAIO as a result
concentrator throughput at Spence, of the Q1 impacts of the RTP1
Q1 FY24 457 kt partially offset by higher volumes at Q1 FY24 63 Mt integration, planned equipment
Copper South Australia following planned maintenance and Central Pilbara hub
maintenance in Q1. ramp up.
----------------------------------------------------------------- ---------------------------------------------------------------
Metallurgical coal Energy coal
5.7 Mt Up 2% Production increased due to the lower 3.9 Mt Up 7% Higher production as a result of
planned wash plant maintenance, the ramp strong performance across the value
Q1 FY24 5.6 Mt up of the longwall at Broadmeadow, and Q1 FY24 3.6 Mt chain, largely drive by of strong
improved strip ratio. This was partially Q1 stripping performance, and the
offset by significantly increased opportune draw down of raw coal.
rainfall.
----------------------------------------------------------------- ---------------------------------------------------------------
Nickel
20 kt Down 3% Lower volumes due to downtime at the
Kwinana Refinery.
Q1 FY24 20 kt
---------------------------------------------------------------------------------------------------------------------------------
The following footnotes apply to this Operational Review:
1 Prior year comparatives do not include production volumes for the operations
acquired from OZL on 2 May 2023.
5
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BHP | Operational review for the half year ended 31 December 2023
Appendix 1
Average realised prices/1/
Q2 FY24 v HY24 v HY24 v
Q2 FY24 HY24 Q1 FY24 H2 FY23 HY23
--------- -------- ----------- --------- --------
Copper (US$/lb)/2,3,4/.............................. 3.68 3.66 1% (4%) 5%
Iron ore (US$/wmt, FOB)/5/.......................... 109.47 103.70 12% 4% 21%
Metallurgical coal (US$/t)/6/....................... 293.21 266.43 24% (2%) (1%)
Hard coking coal (US$/t)/7/...................... 305.69 274.99 26% 0% 2%
Weak coking coal (US$/t)/7/...................... 214.26 204.55 12% (18%) (19%)
Thermal coal (US$/t)/6,8/........................... 121.35 123.29 (3%) (22%) (65%)
Nickel metal (US$/t)................................ 16,812 18,602 (17%) (21%) (24%)
1 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.
2 At 31 December 2023, the Group had 356 kt of outstanding copper sales that
were revalued at a weighted average price of US$3.87/lb. The final price of
these sales will be determined over the remainder of FY24. In addition, 342
kt of copper sales from FY23 were subject to a finalisation adjustment in
the current period. The displayed prices include the impact of these
provisional pricing and finalisation adjustments.
3 The large majority of copper cathodes sales were linked to index price for
quotation periods one month after month of shipment, and three to four
months after month of shipment for copper concentrates sales with price
differentials applied for location and treatment costs.
4 Does not include sales from assets acquired through the purchase of OZL.
5 The large majority of iron ore shipments were linked to index pricing for
the month of shipment, with price differentials predominantly a reflection
of market fundamentals and product quality. Iron ore sales for HY24 and Q2
FY24 were based on an average moisture rate of 6.7% (HY23: 6.8%).
6 The large majority of metallurgical coal and energy coal exports were linked
to index pricing for the month of scheduled shipment or priced on the spot
market at fixed or index-linked prices, with price differentials reflecting
product quality.
7 Hard coking coal (HCC) refers generally to those metallurgical coals with a
Coke Strength after Reaction (CSR) of 35 and above, which includes coals
across the spectrum from Premium Coking to Semi Hard Coking coals, while
weak coking coal (WCC) refers generally to those metallurgical coals with a
CSR below 35.
8 Export sales only. Includes thermal coal sales from metallurgical coal
mines.
Current year unit cost guidance
Previous Current
FY24 guidance/1/ FY24 guidance/1/
---------------- ----------------
Escondida unit cost (US$/lb)/2/............................... 1.40 - 1.70 1.40 - 1.70 Unchanged
Spence unit cost (US$/lb)..................................... 2.00 - 2.30 2.00 - 2.30 Unchanged
WAIO unit cost (US$/t)........................................ 17.40 - 18.90 17.40 - 18.90 Unchanged
BMA unit cost (US$/t)......................................... 95 - 105 110 - 116 Increased
1 FY24 unit cost guidance is based on exchange rates of AUD/USD 0.67 and
USD/CLP 810.
2 Escondida unit costs for FY24 onwards exclude revenue-based government
royalties.
Medium term guidance
Production Unit cost
guidance guidance/1/
---------------- ---------------------
Escondida/2/ 1,200 - 1,300 kt US$1.30 - $1.60/lb/3/
Spence/4/ ~250 kt
WAIO (100% basis) >305 Mt <US$17/t
1 Medium term unit cost guidance is based on exchange rates of AUD/USD 0.67
and USD/CLP 810.
2 Medium term refers to FY25 and FY26.
3 Escondida unit costs for FY24 onwards exclude revenue-based government
royalties.
4 Average of 250 ktpa over five years on the basis that remediation of the
previously identified TSF anomalies does not impact operations.
Major projects
Capital First
expenditure production
Commodity Project and ownership Project scope / capacity US$M target date Progress
--------- --------------------- ------------------------------------------ ----------- ----------- -----------------------
Potash Jansen Stage 1 Design, engineering and construction of an 5,723 End-CY26 Project is 38% complete
(Canada) underground potash mine and surface
100% infrastructure, with capacity to produce
4.15 Mtpa.
Potash Jansen Stage 2 Development of additional mining districts, 4,859 FY29 Approval announced
(Canada) completion of the second shaft hoist October 2023
100% infrastructure, expansion of processing
facilities and addition of rail cars to
facilitate production of an incremental
4.36 Mtpa.
6
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BHP | Operational review for the half year ended 31 December 2023
The operating expenditure related to Potash for HY24 is expected to be ~US$130
m.
Exploration
Minerals exploration and evaluation expenditure was US$199 m for HY24 (HY23:
US$156 m) of which US$170 m was expensed (HY23: US$127 m).
7
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BHP | Operational review for the half year ended 31 December 2023
Appendix 2
Production
----------------------------------------------------------------------
Quarter ended Year to date
------------------------------------------- -------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
------- ------- ------- ------- ------- ------- ------- -------
Group production and sales summary
By commodity
Metals production is payable metal unless otherwise noted.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
Copper Payable metal in concentrate kt 276.0 262.4 310.7 317.3 308.7 626.0 544.8 15%
------- ------- ------- ------- ------- ------- ------- -------
Escondida kt 208.3 200.8 220.5 221.3 207.7 429.0 411.4 4%
Pampa Norte kt 32.5 32.0 32.2 38.8 32.6 71.4 61.1 17%
Copper South Australia kt 19.9 23.5 27.4 50.9
Antamina kt 35.2 29.6 36.5 32.5 39.2 71.7 72.3 (1)%
Carajas kt 1.6 1.2 1.8 3.0
------- ------- ------- ------- ------- ------- ------- -------
Cathode kt 148.3 143.5 165.5 139.7 128.7 268.4 289.6 (7)%
------- ------- ------- ------- ------- ------- ------- -------
Escondida kt 49.7 50.8 72.5 52.0 46.9 98.9 99.3 0%
Pampa Norte kt 44.2 41.0 36.3 39.5 27.2 66.7 86.2 (23)%
Copper South Australia kt 54.4 51.7 56.7 48.2 54.6 102.8 104.1 (1)%
Total kt 424.3 405.9 476.2 457.0 437.4 894.4 834.4 7%
------- ------- ------- ------- ------- ------- ------- -------
Lead Payable metal in concentrate t 114 169 146 96 105 201 342 (41)%
------- ------- ------- ------- ------- ------- ------- -------
Antamina t 114 169 146 96 105 201 342 (41)%
------- ------- ------- ------- ------- ------- ------- -------
Zinc Payable metal in concentrate t 29,929 23,612 38,822 35,669 33,475 69,144 62,614 10%
------- ------- ------- ------- ------- ------- ------- -------
Antamina t 29,929 23,612 38,822 35,669 33,475 69,144 62,614 10%
------- ------- ------- ------- ------- ------- ------- -------
Gold Payable metal in concentrate troy oz 52,277 57,106 96,655 89,024 94,794 183,818 96,034 91%
------- ------- ------- ------- ------- ------- ------- -------
Escondida troy oz 48,402 48,954 53,503 48,063 48,633 96,696 86,638 12%
Pampa Norte troy oz 3,875 8,152 9,263 3,931 2,854 6,785 9,396 (28)%
Copper South Australia troy oz 32,736 36,228 42,051 78,279
Carajas troy oz 1,153 802 1,256 2,058
------- ------- ------- ------- ------- ------- ------- -------
Refined gold troy oz 43,280 49,086 46,479 53,028 55,828 108,856 90,464 20%
------- ------- ------- ------- ------- ------- ------- -------
Copper South Australia troy oz 43,280 49,086 46,479 53,028 55,828 108,856 90,464 20%
Total troy oz 95,557 106,192 143,134 142,052 150,622 292,674 186,498 57%
------- ------- ------- ------- ------- ------- ------- -------
Silver Payable metal in concentrate troy koz 2,678 2,556 2,592 2,582 3,074 5,656 5,330 6%
------- ------- ------- ------- ------- ------- ------- -------
Escondida troy koz 1,510 1,346 1,008 1,168 1,401 2,569 2,720 (6)%
Pampa Norte troy koz 245 409 412 356 388 744 497 50%
Copper South Australia troy koz 201 260 310 570
Antamina troy koz 923 801 971 798 975 1,773 2,113 (16)%
------- ------- ------- ------- ------- ------- ------- -------
Refined silver troy koz 261 277 256 261 221 482 556 (13)%
------- ------- ------- ------- ------- ------- ------- -------
Copper South Australia troy koz 261 277 256 261 221 482 556 (13)%
Total troy koz 2,939 2,833 2,848 2,843 3,295 6,138 5,886 4%
------- ------- ------- ------- ------- ------- ------- -------
Uranium Payable metal in concentrate t 943 833 813 825 986 1,811 1,760 3%
------- ------- ------- ------- ------- ------- ------- -------
Copper South Australia t 943 833 813 825 986 1,811 1,760 3%
------- ------- ------- ------- ------- ------- ------- -------
Molybdenum Payable metal in concentrate t 564 636 666 612 481 1,093 860 27%
------- ------- ------- ------- ------- ------- ------- -------
Pampa Norte t 216 407 333 329 145 474 250 90%
Antamina t 348 229 333 283 336 619 610 1%
------- ------- ------- ------- ------- ------- ------- -------
Iron ore Western Australia Iron
Ore (WAIO) kt 65,807 58,725 64,074 62,004 64,460 126,464 129,732 (3)%
Samarco kt 1,095 1,048 1,221 1,231 1,302 2,533 2,243 13%
Total kt 66,902 59,773 65,295 63,235 65,762 128,997 131,975 (2)%
------- ------- ------- ------- ------- ------- ------- -------
Metallurgical
coal/1/ BHP Mitsubishi Alliance (BMA) kt 6,952 6,929 8,477 5,601 5,717 11,318 13,614 (17)%
------- ------- ------- ------- ------- ------- ------- -------
Energy coal NSW Energy Coal (NSWEC) kt 2,851 3,934 4,765 3,613 3,855 7,468 5,473 36%
------- ------- ------- ------- ------- ------- ------- -------
Nickel Nickel West kt 17.7 19.6 22.0 20.2 19.6 39.8 38.4 4%
------- ------- ------- ------- ------- ------- ------- -------
Cobalt Nickel West t 93 175 246 192 182 374 331 13%
------- ------- ------- ------- ------- ------- ------- -------
1 Includes BMA thermal coal sales.
Sales
------------------------------------------------------------------------
Quarter ended Year to date
-------------------------------------------- --------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
-------- ------- ------- ------- ------- ------- ------- --------
Group production and sales summary
By commodity
Metals production is payable metal unless otherwise noted.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
Copper Payable metal in concentrate kt 272.7 268.4 323.1 298.0 316.5 614.5 533.0 15%
-------- ------- ------- ------- ------- ------- ------- --------
Escondida kt 216.0 197.3 220.3 209.5 211.7 421.2 412.7 2%
Pampa Norte kt 22.0 38.7 38.6 31.3 34.9 66.2 48.0 38%
Copper South Australia kt 27.6 22.2 31.6 53.8
Antamina kt 34.7 32.4 34.5 32.8 38.3 71.1 72.3 (2)%
-------- ------- ------- ------- ------- ------- ------- --------
Carajas kt 2.1 2.2 -- 2.2
-------- ------- ------- ------- ------- ------- ------- --------
Cathode kt 155.9 130.3 179.9 131.9 137.6 269.5 290.1 (7)%
Escondida kt 53.5 43.8 78.0 49.2 52.2 101.4 99.4 2%
Pampa Norte kt 45.6 36.0 42.4 36.6 31.1 67.7 88.0 (23)%
Copper South Australia kt 56.8 50.5 59.5 46.1 54.3 100.4 102.7 (2)%
Total kt 428.6 398.7 503.0 429.9 454.1 884.0 823.1 7%
-------- ------- ------- ------- ------- ------- ------- --------
Lead Payable metal in concentrate t 91 181 143 154 91 245 221 11%
-------- ------- ------- ------- ------- ------- ------- --------
Antamina t 91 181 143 154 91 245 221 11%
-------- ------- ------- ------- ------- ------- ------- --------
Zinc Payable metal in concentrate t 29,127 25,851 37,629 33,912 37,092 71,004 62,947 13%
-------- ------- ------- ------- ------- ------- ------- --------
Antamina t 29,127 25,851 37,629 33,912 37,092 71,004 62,947 13%
-------- ------- ------- ------- ------- ------- ------- --------
Gold Payable metal in concentrate troy oz 52,277 57,106 108,552 87,703 98,969 186,672 96,034 94%
-------- ------- ------- ------- ------- ------- ------- --------
Escondida troy oz 48,402 48,954 53,503 48,063 48,633 96,696 86,638 12%
Pampa Norte troy oz 3,875 8,152 9,263 3,931 2,854 6,785 9,396 (28)%
Copper South Australia troy oz 44,098 34,176 47,482 81,658
Carajas troy oz 1,688 1,533 -- 1,533
-------- ------- ------- ------- ------- ------- ------- --------
Refined gold troy oz 41,900 47,300 49,182 54,036 55,349 109,385 91,442 20%
-------- ------- ------- ------- ------- ------- ------- --------
Copper South Australia troy oz 41,900 47,300 49,182 54,036 55,349 109,385 91,442 20%
Total troy oz 94,177 104,406 157,734 141,739 154,318 296,057 187,476 58%
-------- ------- ------- ------- ------- ------- ------- --------
Silver Payable metal in concentrate troy koz 2,605 2,523 2,409 2,527 2,938 5,465 5,082 8%
-------- ------- ------- ------- ------- ------- ------- --------
Escondida troy koz 1,510 1,346 1,008 1,168 1,401 2,569 2,720 (6)%
Pampa Norte troy koz 245 409 412 356 388 744 497 50%
Copper South Australia troy koz 242 258 364 622
Antamina troy koz 850 768 747 745 785 1,530 1,865 (18)%
-------- ------- ------- ------- ------- ------- ------- --------
Refined silver troy koz 233 307 270 219 222 441 553 (20)%
-------- ------- ------- ------- ------- ------- ------- --------
Copper South Australia troy koz 233 307 270 219 222 441 553 (20)%
Total troy koz 2,838 2,830 2,679 2,746 3,160 11,371 10,717 6%
-------- ------- ------- ------- ------- ------- ------- --------
Uranium Payable metal in concentrate t 1,127 683 1,275 481 895 1,376 1,399 (2)%
-------- ------- ------- ------- ------- ------- ------- --------
Copper South Australia t 1,127 683 1,275 481 895 1,376 1,399 (2)%
-------- ------- ------- ------- ------- ------- ------- --------
Molybdenum Payable metal in concentrate t 514 789 594 564 468 1,032 789 31%
-------- ------- ------- ------- ------- ------- ------- --------
Pampa Norte t 216 492 367 303 162 465 241 93%
Antamina t 298 297 227 261 306 567 548 3%
-------- ------- ------- ------- ------- ------- ------- --------
Iron ore Western Australia Iron
Ore (WAIO) kt 64,496 59,204 62,926 64,180 62,606 126,786 126,753 0%
Samarco kt 1,097 1,111 1,160 1,136 1,329 2,465 2,243 10%
Total kt 65,593 60,315 64,086 65,316 63,935 129,251 128,996 0%
-------- ------- ------- ------- ------- ------- ------- --------
Metallurgical
coal/1/ BHP Mitsubishi Alliance (BMA) kt 7,027 6,186 8,876 5,325 5,706 11,031 13,509 (18)%
-------- ------- ------- ------- ------- ------- ------- --------
Energy coal NSW Energy Coal (NSWEC) kt 2,862 3,667 4,894 3,307 4,250 7,557 5,303 43%
-------- ------- ------- ------- ------- ------- ------- --------
Nickel Nickel West kt 18.4 19.6 23.4 18.9 20.0 38.9 39.1 (1)%
-------- ------- ------- ------- ------- ------- ------- --------
Cobalt Nickel West t 93 175 246 192 110 302 331 (9)%
-------- ------- ------- ------- ------- ------- ------- --------
1 Includes BMA thermal coal sales.
8
--------------------------------------------------------------------------------
BHP | Operational review for the half year ended 31 December 2023
Production
----------------------------------------------------------------------
Quarter ended Year to date
------------------------------------------- -------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
------- ------- ------- ------- ------- ------- ------- -------
Production and sales
By asset
Copper
Metals production is payable metal unless otherwise noted.
Escondida, Chile/1/ BHP interest 57.5%
Material mined kt 101,987 106,170 95,451 87,462 95,168 182,630 212,235 (14)%
Concentrator throughput kt 33,911 33,309 30,750 33,332 34,752 68,084 66,805 2%
Average copper grade -
concentrator % 0.76% 0.78% 0.93% 0.85% 0.78% 0.81% 0.79% 2%
Production ex mill kt 212.8 210.0 228.9 225.7 217.6 443.3 427.4 4%
------- ------- ------- ------- ------- ------- ------- -------
Payable copper kt 208.3 200.8 220.5 221.3 207.7 429.0 411.4 4%
Copper cathode (EW) kt 49.7 50.8 72.5 52.0 46.9 98.9 99.3 0%
Oxide leach kt 17.6 14.7 29.3 17.5 17.0 34.5 32.8 5%
Sulphide leach kt 32.1 36.1 43.2 34.5 29.9 64.4 66.5 (3)%
Total copper kt 258.0 251.6 293.0 273.3 254.6 527.9 510.7 3%
------- ------- ------- ------- ------- ------- ------- -------
Payable gold concentrate troy oz 48,402 48,954 53,503 48,063 48,633 96,696 86,638 12%
Payable silver concentrate troy koz 1,510 1,346 1,008 1,168 1,401 2,569 2,720 (6)%
------- ------- ------- ------- ------- ------- ------- -------
1 Shown on a 100% basis.
Pampa Norte, Chile BHP interest 100%
Copper Payable metal in concentrate kt 32.5 32.0 32.2 38.8 32.6 71.4 61.1 17%
Cathode kt 44.2 41.0 36.3 39.5 27.2 66.7 86.2 (23)%
Total copper kt 76.7 73.0 68.5 78.3 59.8 138.1 147.3 (6)%
------- ------- ------- ------- ------- ------- ------- -------
Gold troy oz 3,875 8,152 9,263 3,931 2,854 6,785 9,396 (28)%
------- ------- ------- ------- ------- ------- ------- -------
Silver troy koz 245 409 412 356 388 744 497 50%
------- ------- ------- ------- ------- ------- ------- -------
Molybdenum t 216 407 333 329 145 474 250 90%
------- ------- ------- ------- ------- ------- ------- -------
Cerro Colorado/1/
Material mined kt 583 172 145 -- -- -- 3,762 (100)%
Ore stacked kt 4,119 3,567 3,928 154 -- 154 8,492 (98)%
Average copper grade - stacked % 0.56% 0.57% 0.53% 0.58% -- 0.58% 0.55% 6%
------- ------- ------- ------- ------- ------- ------- -------
Copper cathode (EW) kt 12.2 12.0 12.2 9.5 1.6 11.1 25.0 (56)%
Spence
Material mined kt 26,980 24,858 25,622 27,654 25,973 53,627 53,936 (1)%
Ore stacked kt 5,155 4,947 5,625 5,113 4,744 9,857 10,732 (8)%
Average copper grade - stacked % 0.66% 0.60% 0.58% 0.60% 0.59% 0.60% 0.68% (13)%
Concentrator throughput kt 7,602 7,290 6,927 8,473 7,151 15,624 14,035 11%
Average copper grade -
concentrator % 0.60% 0.61% 0.61% 0.64% 0.65% 0.64% 0.61% 5%
------- ------- ------- ------- ------- ------- ------- -------
Payable copper kt 32.5 32.0 32.2 38.8 32.6 71.4 61.1 17%
Copper cathode (EW) kt 32.0 29.0 24.1 30.0 25.6 55.6 61.2 (9)%
Total copper kt 64.5 61.0 56.3 68.8 58.2 127.0 122.3 4%
------- ------- ------- ------- ------- ------- ------- -------
Payable gold concentrate troy oz 3,875 8,152 9,263 3,931 2,854 6,785 9,396 (28)%
Payable silver concentrate troy koz 245 409 412 356 388 744 497 50%
Payable molybdenum t 216 407 333 329 145 474 250 90%
------- ------- ------- ------- ------- ------- ------- -------
1 Cerro Colorado entered temporary care and maintenance in December 2023.
Sales
----------------------------------------------------------------------
Quarter ended Year to date
------------------------------------------- -------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
------- ------- ------- ------- ------- ------- ------- -------
Production and sales
By asset
Copper
Metals production is payable metal unless otherwise noted.
Escondida, Chile/1/ BHP interest 57.5%
Material mined kt
Concentrator throughput kt
Average copper grade -
concentrator %
Production ex mill kt
-------- ------- ------- ------- ------- ------- ------- --------
Payable copper kt 216.0 197.3 220.3 209.5 211.7 421.2 412.7 2%
Copper cathode (EW) kt 53.5 43.8 78.0 49.2 52.2 101.4 99.4 2%
Oxide leach kt
Sulphide leach kt
Total copper kt 269.5 241.1 298.3 258.7 263.9 522.6 512.1 2%
-------- ------- ------- ------- ------- ------- ------- --------
Payable gold concentrate troy oz 48,402 48,954 53,503 48,063 48,633 96,696 86,638 12%
Payable silver concentrate troy koz 1,510 1,346 1,008 1,168 1,401 2,569 2,720 (6)%
-------- ------- ------- ------- ------- ------- ------- --------
1 Shown on a 100% basis.
Pampa Norte, Chile BHP interest 100%
Copper Payable metal in concentrate kt 22.0 38.7 38.6 31.3 34.9 66.2 48.0 38%
Cathode kt 45.6 36.0 42.4 36.6 31.1 67.7 88.0 (23)%
Total copper kt 67.6 74.7 81.0 67.9 66.0 133.9 136.0 (2)%
-------- ------- ------- ------- ------- ------- ------- --------
Gold troy oz 3,875 8,152 9,263 3,931 2,854 6,785 9,396 (28)%
-------- ------- ------- ------- ------- ------- ------- --------
Silver troy koz 245 409 412 356 388 744 497 50%
-------- ------- ------- ------- ------- ------- ------- --------
Molybdenum t 216 492 367 303 162 465 241 93%
-------- ------- ------- ------- ------- ------- ------- --------
Cerro Colorado/1/
Material mined kt
Ore stacked kt
Average copper grade - stacked %
Copper cathode (EW) kt 12.2 10.9 14.1 8.8 3.7 12.5 25.5 (51)%
Spence
Material mined kt
Ore stacked kt
Average copper grade - stacked %
Concentrator throughput kt
Average copper grade -
concentrator %
-------- ------- ------- ------- ------- ------- ------- --------
Payable copper kt 22.0 38.7 38.6 31.3 34.9 66.2 48.0 38%
Copper cathode (EW) kt 33.4 25.1 28.3 27.8 27.4 55.2 62.5 (12)%
Total copper kt 55.4 63.8 66.9 59.1 62.3 121.4 110.5 10%
-------- ------- ------- ------- ------- ------- ------- --------
Payable gold concentrate troy oz 3,875 8,152 9,263 3,931 2,854 6,785 9,396 (28)%
Payable silver concentrate troy koz 245 409 412 356 388 744 497 50%
Payable molybdenum t 216 492 367 303 162 465 241 93%
-------- ------- ------- ------- ------- ------- ------- --------
1 Cerro Colorado entered temporary care and maintenance in December 2023.
9
--------------------------------------------------------------------------------
BHP | Operational review for the half year ended 31 December 2023
Production
----------------------------------------------------------------------
Quarter ended Year to date
------------------------------------------- -------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
------- ------- ------- ------- ------- ------- ------- -------
Copper (continued)
Copper South Australia, Australia BHP interest 100%
Copper Payable metal in concentrate kt 19.9 26.2 30.6 56.8
Cathode kt 54.4 51.7 56.7 48.2 54.6 102.8 104.1 (1)%
Total copper kt 54.4 51.7 76.6 74.4 85.2 159.6 104.1 53%
------- ------- ------- ------- ------- ------- ------- -------
Payable metal in concentrate
transfer to Olympic Dam/1/ kt -- (2.7) (3.2) (5.9)
Net copper kt 54.4 51.7 76.6 71.7 82.0 153.7 104.1 48%
------- ------- ------- ------- ------- ------- ------- -------
Gold Payable metal in concentrate troy oz 32,736 41,424 48,051 89,475
Refined gold troy oz 43,280 49,086 46,479 53,028 55,828 108,856 90,464 20%
Total gold troy oz 43,280 49,086 79,215 94,452 103,879 198,331 90,464 119%
------- ------- ------- ------- ------- ------- ------- -------
Payable metal in concentrate
transfer to Olympic Dam/1/ troy oz -- (5,196) (6,000) (11,196)
Net gold troy oz 43,280 49,086 79,215 89,256 97,879 187,135 90,464 107%
------- ------- ------- ------- ------- ------- ------- -------
Silver Payable metal in concentrate troy koz 201 271 323 594
Refined silver troy koz 261 277 256 261 221 482 556 (13)%
Total silver troy koz 261 277 457 532 544 1,076 556 94%
------- ------- ------- ------- ------- ------- ------- -------
Payable metal in concentrate
transfer to Olympic Dam/1/ troy koz -- (11) (13) (24)
Net silver troy koz 261 277 457 521 531 1,052 556 89%
------- ------- ------- ------- ------- ------- ------- -------
Uranium t 943 833 813 825 986 1,811 1,760 3%
------- ------- ------- ------- ------- ------- ------- -------
Olympic Dam
Material mined kt 2,264 2,317 2,356 2,655 2,537 5,192 4,676 11%
Ore milled kt 2,687 2,433 2,755 2,596 2,634 5,230 5,257 (1)%
Average copper grade % 2.08% 1.95% 2.00% 1.96% 2.12% 2.04% 2.10% (3)%
Average uranium grade kg/t 0.58 0.59 0.55 0.56 0.62 0.59 0.58 2%
------- ------- ------- ------- ------- ------- ------- -------
Copper cathode (ER and EW) kt 54.4 51.7 56.7 48.2 54.6 102.8 104.1 (1)%
Refined gold troy oz 43,280 49,086 46,479 53,028 55,828 108,856 90,464 20%
Refined silver troy koz 261 277 256 261 221 482 556 (13)%
Payable uranium t 943 833 813 825 986 1,811 1,760 3%
Prominent Hill/2/
Material mined kt 661 1,110 1,125 2,235
Ore milled kt 1,228 1,652 1,800 3,452
Average copper grade % 0.77% 0.85% 0.83% 0.84%
Production ex mill kt 16.3 23.8 23.6 47.4
------- ------- ------- ------- ------- ------- ------- -------
Payable copper kt 8.2 12.1 12.9 25.0
Payable gold concentrate troy oz 17,432 22,031 25,779 47,810
Payable silver concentrate troy koz 44 63 65 128
Carrapateena/2/
Material mined kt 880 1,201 1,310 2,511
Ore milled kt 856 1,230 1,307 2,537
Average copper grade % 1.52% 1.29% 1.52% 1.41%
Production ex mill kt 30.1 37.6 49.2 86.8
------- ------- ------- ------- ------- ------- ------- -------
Payable copper kt 11.7 14.1 17.7 31.8
Payable gold concentrate troy oz 15,304 19,393 22,272 41,665
Payable silver concentrate troy koz 157 208 258 466
------- ------- ------- ------- ------- ------- ------- -------
1 Excludes prior year production previously reported and transferred during the
period. 2 Production and sales included from 1 May 2023, following the
acquisition of OZL on 2 May 2023.
Sales
------------------------------------------------------------------------
Quarter ended Year to date
-------------------------------------------- --------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
-------- ------- ------- ------- ------- ------- ------- --------
Copper (continued)
Copper South Australia, Australia BHP interest 100%
Copper Payable metal in concentrate kt 27.6 22.2 31.6 53.8
Cathode kt 56.8 50.5 59.5 46.1 54.3 100.4 102.7 (2)%
Total copper kt 56.8 50.5 87.1 68.3 85.9 154.2 102.7 50%
------- ------- ------- ------- ------- ------- ------- --------
Payable metal in concentrate
transfer to Olympic Dam/1/ kt
Net copper kt
------- ------- ------- ------- ------- ------- ------- --------
Gold Payable metal in concentrate troy oz 44,098 34,176 47,482 81,658
Refined gold troy oz 41,900 47,300 49,182 54,036 55,349 109,385 91,442 20%
Total gold troy oz 41,900 47,300 93,280 88,212 102,831 191,043 91,442 109%
------- ------- ------- ------- ------- ------- ------- --------
Payable metal in concentrate
transfer to Olympic Dam/1/ troy oz
Net gold troy oz
------- ------- ------- ------- ------- ------- ------- --------
Silver Payable metal in concentrate troy koz 242 258 364 622
Refined silver troy koz 233 307 270 219 222 441 553 (20)%
Total silver troy koz 233 307 512 477 586 1,063 553 92%
------- ------- ------- ------- ------- ------- ------- --------
Payable metal in concentrate
transfer to Olympic Dam/1/ troy koz
Net silver troy koz
------- ------- ------- ------- ------- ------- ------- --------
Uranium t 1,127 683 1,275 481 895 1,376 1,399 (2)%
------- ------- ------- ------- ------- ------- ------- --------
Olympic Dam
Material mined kt
Ore milled kt
Average copper grade %
Average uranium grade kg/t
------- ------- ------- ------- ------- ------- ------- --------
Copper cathode (ER and EW) kt 56.8 50.5 59.5 46.1 54.3 100.4 102.7 (2)%
Refined gold troy oz 41,900 47,300 49,182 54,036 55,349 109,385 91,442 20%
Refined silver troy koz 233 307 270 219 222 441 553 (20)%
Payable uranium t 1,127 683 1,275 481 895 1,376 1,399 (2)%
Prominent Hill/2/
Material mined kt
Ore milled kt
Average copper grade %
Production ex mill kt
------- ------- ------- ------- ------- ------- ------- --------
Payable copper kt 15.7 8.4 10.6 19.0
Payable gold concentrate troy oz 28,856 15,524 20,045 35,569
Payable silver concentrate troy koz 87 53 59 112
Carrapateena/2/
Material mined kt
Ore milled kt
Average copper grade %
Production ex mill kt
------- ------- ------- ------- ------- ------- ------- --------
Payable copper kt 11.9 13.8 21.0 34.8
Payable gold concentrate troy oz 15,242 18,652 27,437 46,089
Payable silver concentrate troy koz 155 205 305 510
------- ------- ------- ------- ------- ------- ------- --------
1 Excludes prior year production previously reported and transferred during the
period. 2 Production and sales included from 1 May 2023, following the
acquisition of OZL on 2 May 2023.
10
--------------------------------------------------------------------------------
BHP | Operational review for the half year ended 31 December 2023
Production
----------------------------------------------------------------------
Quarter ended Year to date
------------------------------------------- -------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
------- ------- ------- ------- ------- ------- ------- -------
Copper (continued)
Antamina, Peru BHP interest 33.75%
Material mined kt 68,750 57,939 62,894 63,310 61,539 124,849 132,615 (6)%
Concentrator throughput kt 14,272 12,349 13,897 14,246 14,824 29,070 28,130 3%
Average head grade - copper % 0.86% 0.88% 0.88% 0.83% 0.90% 0.87% 0.89% (3)%
Average head grade - zinc % 0.99% 1.06% 1.25% 1.17% 1.03% 1.10% 1.04% 6%
------- ------- ------- ------- ------- ------- ------- -------
Payable copper kt 35.2 29.6 36.5 32.5 39.2 71.7 72.3 (1)%
Payable zinc t 29,929 23,612 38,822 35,669 33,475 69,144 62,614 10%
Payable silver troy koz 923 801 971 798 975 1,773 2,113 (16)%
Payable lead t 114 169 146 96 105 201 342 (41)%
Payable molybdenum t 348 229 333 283 336 619 610 1%
------- ------- ------- ------- ------- ------- ------- -------
Carajas, Brazil/1/ BHP interest 100%
Material mined kt 103 74 115 189
Ore milled kt 100 70 119 189
Average copper grade % 1.71% 1.91% 1.69% 1.77%
Production ex mill kt 6.6 5.2 7.6 12.8
------- ------- ------- ------- ------- ------- ------- -------
Payable copper kt 1.6 1.2 1.8 3.0
Payable gold concentrate troy oz 1,153 802 1,256 2,058
------- ------- ------- ------- ------- ------- ------- -------
1 Production and sales included from 1 May 2023, following the acquisition of OZL on 2 May 2023.
Iron ore
Iron ore production and sales are reported on a wet tonnes basis.
WAIO, Australia BHP interest 85%
Newman kt 16,172 11,925 14,795 13,234 15,468 28,702 30,225 (5)%
Area C Joint Venture kt 26,302 25,284 28,818 25,804 26,074 51,878 53,273 (3)%
Yandi Joint Venture kt 5,613 4,941 5,359 3,150 4,978 8,128 11,110 (27)%
Jimblebar/1/ kt 17,720 16,575 15,102 19,816 17,940 37,756 35,124 7%
Total kt 65,807 58,725 64,074 62,004 64,460 126,464 129,732 (3)%
------- ------- ------- ------- ------- ------- ------- -------
Total (100%) kt 74,292 66,163 72,717 69,448 72,670 142,118 146,427 (3)%
------- ------- ------- ------- ------- ------- ------- -------
Lump kt
Fines kt
Total kt
Total (100%) kt
------- ------- ------- ------- ------- ------- ------- -------
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil BHP interest 50%
Total kt 1,095 1,048 1,221 1,231 1,302 2,533 2,243 13%
------- ------- ------- ------- ------- ------- ------- -------
Sales
------------------------------------------------------------------------
Quarter ended Year to date
-------------------------------------------- --------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
-------- ------- ------- ------- ------- ------- ------- --------
Copper (continued)
Antamina, Peru BHP interest 33.75%
Material mined kt
Concentrator throughput kt
Average head grade - copper %
Average head grade - zinc %
-------- ------- ------- ------- ------- ------- ------- --------
Payable copper kt 34.7 32.4 34.5 32.8 38.3 71.1 72.3 (2)%
Payable zinc t 29,127 25,851 37,629 33,912 37,092 71,004 62,947 13%
Payable silver troy koz 850 768 747 745 785 1,530 1,865 (18)%
Payable lead t 91 181 143 154 91 245 221 11%
Payable molybdenum t 298 297 227 261 306 567 548 3%
-------- ------- ------- ------- ------- ------- ------- --------
Carajas, Brazil/1/ BHP interest 100%
Material mined kt
Ore milled kt
Average copper grade %
Production ex mill kt
-------- ------- ------- ------- ------- ------- ------- --------
Payable copper kt 2.1 2.2 -- 2.2
Payable gold concentrate troy oz 1,688 1,533 -- 1,533
-------- ------- ------- ------- ------- ------- ------- --------
1 Production and sales included from 1 May 2023, following the acquisition of OZL on 2 May 2023.
Iron ore
Iron ore production and sales are reported on a wet tonnes basis.
WAIO, Australia BHP interest 85%
Newman kt
Area C Joint Venture kt
Yandi Joint Venture kt
Jimblebar/1/ kt
Total kt
Total (100%) kt
-------- ------- ------- ------- ------- ------- ------- --------
Lump kt 20,375 18,021 20,022 20,969 19,176 40,145 39,936 1%
Fines kt 44,121 41,183 42,904 43,211 43,430 86,641 86,817 0%
Total kt 64,496 59,204 62,926 64,180 62,606 126,786 126,753 0%
-------- ------- ------- ------- ------- ------- ------- --------
Total (100%) kt 72,688 66,580 71,172 71,748 70,340 142,088 142,964 (1)%
-------- ------- ------- ------- ------- ------- ------- --------
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil BHP interest 50%
Total kt 1,097 1,111 1,160 1,136 1,329 2,465 2,243 10%
-------- ------- ------- ------- ------- ------- ------- --------
11
--------------------------------------------------------------------------------
BHP | Operational review for the half year ended 31 December 2023
Production
----------------------------------------------------------------------
Quarter ended Year to date
------------------------------------------- -------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
------- ------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
BMA, Australia BHP interest 50%
Blackwater kt 1,160 1,107 1,505 1,295 1,182 2,477 2,443 1%
Goonyella kt 1,997 2,185 2,348 827 1,736 2,563 3,777 (32)%
Peak Downs kt 1,480 1,251 1,424 1,121 846 1,967 2,805 (30)%
Saraji kt 1,243 1,007 1,326 1,010 701 1,711 2,263 (24)%
Daunia kt 441 607 617 545 431 976 765 28%
Caval Ridge kt 631 772 1,257 803 821 1,624 1,561 4%
Total/1/ kt 6,952 6,929 8,477 5,601 5,717 11,318 13,614 (17)%
------- ------- ------- ------- ------- ------- ------- -------
Total (100%) kt 13,904 13,858 16,954 11,202 11,434 22,636 27,228 (17)%
------- ------- ------- ------- ------- ------- ------- -------
Coking coal kt
Weak coking coal kt
Thermal coal kt
Total kt
Total (100%) kt
------- ------- ------- ------- ------- ------- ------- -------
1 Production figures include some thermal coal.
NSWEC, Australia BHP interest 100%
Export kt
Domestic/1/ kt
Total kt 2,851 3,934 4,765 3,613 3,855 7,468 5,473 36%
------- ------- ------- ------- ------- ------- ------- -------
1 Domestic sales are made under the NSW Government Coal Market Price Emergency
(Directions for Coal Mines) Notice 2023.
Other
Nickel production is reported on the basis of saleable product.
Nickel West, Australia BHP interest 100%
Mt Keith Nickel concentrate kt 39.6 38.8 44.5 42.7 43.8 86.5 82.2 5%
Average nickel grade % 15.5 16.5 16.2 16.7 16.8 16.8 16.3 3%
------- ------- ------- ------- ------- ------- ------- -------
Leinster Nickel concentrate kt 47.9 68.4 71.1 66.0 63.4 129.4 114.7 13%
Average nickel grade % 9.4 8.6 8.5 8.1 8.0 8.1 9.7 (17)%
------- ------- ------- ------- ------- ------- ------- -------
Refined nickel/1/ kt 10.8 13.2 13.1 13.8 12.6 26.4 28.3 (7)%
Nickel sulphate/2/ kt 0.4 0.9 0.7 0.9 0.7 1.6 1.6 0%
Intermediates and nickel
by-products/3/ kt 6.5 5.5 8.2 5.5 6.3 11.8 8.5 39%
Total nickel kt 17.7 19.6 22.0 20.2 19.6 39.8 38.4 4%
------- ------- ------- ------- ------- ------- ------- -------
Cobalt by-products t 93 175 246 192 182 374 331 13%
------- ------- ------- ------- ------- ------- ------- -------
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.
Sales
------------------------------------------------------------------------
Quarter ended Year to date
-------------------------------------------- --------------------------
Dec Mar Jun Sep Dec Dec Dec Var
2022 2023 2023 2023 2023 2023 2022 %
-------- ------- ------- ------- ------- ------- ------- --------
Coal
Coal production is reported on the basis of saleable product.
BMA, Australia BHP interest 50%
Blackwater kt
Goonyella kt
Peak Downs kt
Saraji kt
Daunia kt
Caval Ridge kt
Total/1/ kt
Total (100%) kt
-------- ------- ------- ------- ------- ------- ------- --------
Coking coal kt 5,872 5,372 7,448 4,497 4,756 9,253 11,487 (19)%
Weak coking coal kt 727 710 1,064 529 752 1,281 1,327 (3)%
Thermal coal kt 428 104 364 299 198 497 695 (28)%
Total kt 7,027 6,186 8,876 5,325 5,706 11,031 13,509 (18)%
-------- ------- ------- ------- ------- ------- ------- --------
Total (100%) kt 14,054 12,372 17,752 10,650 11,412 22,062 27,018 (18)%
-------- ------- ------- ------- ------- ------- ------- --------
1 Production figures include some thermal coal.
NSWEC, Australia BHP interest 100%
Export kt 2,862 3,667 4,693 3,087 3,942 7,029 5,303 33%
Domestic/1/ kt 201 220 308 528
Total kt 2,862 3,667 4,894 3,307 4,250 7,557 5,303 43%
-------- ------- ------- ------- ------- ------- ------- --------
1 Domestic sales are made under the NSW Government Coal Market Price Emergency
(Directions for Coal Mines) Notice 2023.
Other
Nickel production is reported on the basis of saleable product.
Nickel West, Australia BHP interest 100%
Mt Keith Nickel concentrate kt
Average nickel grade %
Leinster Nickel concentrate kt
Average nickel grade %
-------- ------- ------- ------- ------- ------- ------- --------
Refined nickel/1/ kt 10.2 13.0 13.1 13.2 13.0 26.2 28.3 (7)%
Nickel sulphate/2/ kt 0.5 0.9 0.8 0.8 0.7 1.5 1.3 15%
Intermediates and nickel
by-products/3/ kt 7.7 5.7 9.5 4.9 6.3 11.2 9.5 18%
Total nickel kt 18.4 19.6 23.4 18.9 20.0 38.9 39.1 (1)%
-------- ------- ------- ------- ------- ------- ------- --------
Cobalt by-products t 93 175 246 192 110 302 331 (9)%
-------- ------- ------- ------- ------- ------- ------- --------
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.
12
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BHP | Operational review for the half year ended 31 December 2023
Appendix 3
Explanatory Notes and JORC Table 1
Project status update - Olympic Dam "Deeps" (OD Deeps)
In 2006-07, three deep holes were drilled below known Olympic Dam
mineralisation, testing a modelled density anomaly, and subsequently intersected
mineralisation. These holes, RD1988, RD2786A and RD2785 returned mineralised
intercepts.
Table 1. Historic deep drilling below Olympic Dam from 2006-07.
Depth from Depth to Interval Cu U/3/O/8/ Au Ag Density
Hole ID (m) (m) (m) (%) (ppm) (g/t) (g/t) (g/cm/3/)
------- ---------- -------- -------- ------ --------- ------ ------ ---------
RD1988............ 922 1897.9 975.9 1.53 266 0.98 4.24 3.73
RD2786A........... 1771 1847 76 1.36 279 0.92 4.67 3.82
and....... 1925 2027 102 1.52 288 0.74 5.92 3.57
RD2785............ 2058 2184 126 0.86 228 0.49 2.61 3.05
In 2020-21 BHP Olympic Dam geologists reviewed mineralisation potential at depth
and commenced exploration drilling in 2022. As of 9/th/ September 2023, total
drilling of the OD Deeps mineralisation, including historic drilling, was
approximately 62 km, with nominal drill space ranging from 160 m to 320 m. All
holes completed to target depth intersected mineralisation and have outlined a
mineralisation extending more than 2 km along strike, and more than 1 km in
depth. Mineralisation continues to be open along strike and at depth.
The iron oxide copper gold (IOCG) mineralisation style of the OD Deeps appears
similar to the main body of Olympic Dam (refer to Section 2-Reporting of
Exploration Results). Mineralisation is dominantly chalcopyrite with some areas
of bornite. To date, and noting wide spaced drilling, continuity continues to
appear favourable above 1% copper grade. The absolute extent of mineralisation
has not been discovered. However, along strike there are geological indications
of decreasing brecciation as well as decreasing iron content. These suggest a
diminishing system along strike.
Figure 1 describes the location of the new drilling and Figures 2, 3, 4 and 5
show the new drilling on cross section(s), long section, and level plan.
Mineralised intercepts provided in Table 2 and drilling collar location is
provided in Table 3.
This release reflects progress in our exploration activities at Olympic Dam.
Further work will be required to enable an estimate of Mineral Resources.
13
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BHP | Operational review for the half year ended 31 December 2023
Table 2. Length and density-weighted mineralised intercepts reported as down
hole lengths.
Depth from Depth to Interval Cu U/3/O/8/ Au Ag Density
Hole ID (m) (m) (m) (%) (ppm) (g/t) (g/t) (g/cm/3/)
------- ---------- ---------- -------- ------ --------- ------ ------ ---------
RU50-12091....................... 516 1096 (EOH) 580 2.22 473 0.93 4.87 3.77
including............. 522 648 126 4.41 945 0.99 7.13 3.90
RD4552A.......................... 1608 2050 442 1.38 350 0.65 2.98 3.49
including............. 1790 1912 122 2.15 506 0.89 4.20 3.88
RD4552AW2........................ 1862 2252 390 1.38 396 0.65 2.43 3.35
including............. 2124 2176 52 1.72 483 0.63 1.33 3.55
RD4577W1......................... 2022 2322 300 1.53 426 0.72 4.16 3.52
RU50-17932....................... 718 1000 (EOH) 282 1.46 340 0.88 3.66 3.70
including............. 718 744 26 3.34 876 0.93 2.04 3.98
RD4552AW3........................ 2101 2401 300 1.50 330 1.04 5.81 3.60
including............. 2101 2143 42 2.09 327 1.39 12.52 3.71
RU48-14098W1..................... 1807.5 1985 177.5 1.54 402 0.87 11.22 3.54
including............. 1912.5 1985 72.5 2.29 422 1.31 21.60 3.86
RU48-14099....................... 1388 1587.5 199.5 1.68 357 0.80 6.37 3.63
including............. 1388 1462 74 2.35 534 0.73 6.42 3.69
RD4551........................... 1298 1486 188 1.17 325 0.52 5.57 3.38
RD4551W1......................... 1474 1646 172 1.52 348 0.65 7.91 3.61
including............. 1596 1646 50 2.03 355 0.83 9.11 3.82
RD4551W2A........................ 1320 1390 70 1.33 327 0.73 5.09 3.76
RD4554W2......................... 1917 1971 54 1.99 386 1.32 13.37 3.89
and............. 2123 2307 184 1.38 340 0.76 5.63 3.53
RD4554W3......................... 1560 1662 102 1.74 468 0.95 2.62 3.85
and............. 1698 1734 36 1.67 415 0.66 1.30 3.87
RD4568W1......................... 1384 1580 196 1.12 292 0.76 5.08 3.67
and............. 1626 1696 70 1.62 290 0.88 7.87 3.74
and............. 1816 1836 20 2.04 244 0.22 3.52 3.19
RD4554W1......................... 1691 1911 220 1.09 293 0.77 5.69 3.50
including............. 1691 1713 22 1.68 456 0.91 12.02 3.50
and............. 2001 2041 40 2.32 439 0.57 9.20 3.36
and............. 2187 2211 24 1.18 464 0.24 1.50 3.06
RD4561W4......................... 1772 1810 38 2.42 799 0.16 0.91 3.50
RU48-14097....................... 1148 1198 50 1.25 328 0.27 0.59 3.26
and............. 1392 1426 34 2.37 224 0.73 8.97 3.76
and............. 1516 1580 64 1.38 254 0.93 5.46 3.80
RU50-12093W1..................... 539.2 644 104.8 1.23 409 0.92 4.24 3.42
and............. 770 834 64 1.29 335 0.62 3.33 3.28
RU50-17930....................... 618 782 164 1.02 306 0.61 3.93 3.41
RU48-14098....................... 1604 1632 28 1.09 309 0.45 1.17 3.16
and............. 1690 1737.5 47.5 1.41 433 0.70 1.90 3.45
and............. 1760 1812.5 52.5 2.08 335 1.03 8.53 3.52
RU48-17326....................... 1126 1192 66 1.36 264 0.25 <1.0 3.08
and............. 1332 1378 46 1.38 438 0.67 2.45 3.62
and............. 1524 1574 50 1.41 378 0.64 7.04 3.38
RD4573W1......................... 1348 1380 32 1.47 340 0.20 1.07 3.00
and............. 1574 1680 106 1.32 331 0.75 5.71 3.94
RD4574W1......................... 1459 1523 64 1.14 619 0.50 0.42 3.34
RD4575........................... 1380 1390 10 1.39 349 0.31 1.15 3.04
and............. 1434 1494 60 1.07 511 0.38 0.75 3.29
RU50-17931....................... 424 448 24 1.62 482 0.98 7.81 3.67
RD4561........................... 1294 1334 40 1.31 348 0.73 5.39 3.87
RD4578A.......................... 1872 1886 14 1.03 1797 0.15 0.58 4.04
RD4571........................... 1610 1628 18 1.08 989 0.26 4.20 3.63
14
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BHP | Operational review for the half year ended 31 December 2023
Figure 1. New drill hole traces shown against all Olympic Dam drilling.
Reference sections provides for cross sections and long section.
Figure 2. Representative cross-section (A-A' from Figure 1)
showing simplified geology and down hole Cu assays.
Figure 3. Representative cross-section (B-B' from Figure 1)
showing simplified geology and down hole Cu assays.
Figure 4. Representative composite long-section (C-C' and D-D' from Figure
1) showing simplified geology and significant intercepts.
Figure 5. Representative level plan at -1300mRL,
with deeps drilling projects to level.
Section 1 Sampling Techniques and Data
Sampling techniques
. Drilling included oriented diamond drilling from surface and available
underground locations.
. Diamond core was sampled at either 2 m or 2.5 m intervals in
mineralisation.
Drilling techniques
. Surface parent holes were collared in PQ3 diameter (83 mm) in the
overburden and continued in HQ3 (61.1 mm) or HQ (63.5 mm). Wedge (child)
holes were drilled in NQ2 (50.6 mm). Navigational drilling was completed on
surface drilling and select underground drilling, and also used parent
holes and subsequent wedges.
. Underground parent holes were collared in HQ (63.5 mm) to a depth of
approximately 500 m, continued in NQ2 (50.6 mm) to a depth of approximately
1,700 m, and drilling completed in BQ (36.5 mm) when required.
. All down hole surveys used a north-seeking gyroscope to end of hole. The
core was oriented using the Reflect ACT III tool. At the end of each run,
the low side of the core was marked by the drillers and this was used as
the reference for marking the whole drill core.
Drill sample recovery
. Sample recoveries were visually estimated to be greater than 99%.
. The style of mineralisation and drilling methods employed lead to very high
sample recovery, so no further effort was considered necessary to increase
core recovery. In general for drill core, there is no clear relationship
between sample recovery and grade, and no significant bias is expected from
preferential loss or gain of fine or coarse material.
Logging
. Drill holes were logged in qualitative detail below the post mineral cover.
. Logging included, but was not limited to, lithology composition and texture,
alteration minerals, sulphide distribution and geotechnical logging for
rock-mass qualification. Drill holes were logged to a level of detail that
would support future studies.
. Structural measurements were recorded from oriented core.
. Core was photographed dry.
Sub-sampling techniques and sample preparation
. Diamond core was split by core saw, with half core submitted for assay and
the other half stored in trays at Olympic Dam. Samples are submitted as 2 m
or 2.5 m intervals.
. Approximately 4-8 kg samples were submitted to an analytical laboratory for
final drying, staged crushing to 2 mm, splitting to approximately 2-3 kg
portion, followed by pulverisation to 90% passing 75 micron particle size
pulp.
. Duplicate samples were collected at each preparation stage where a reduction
in sample mass occurred.
. Bulk dry density measurements were collected on all assayed samples using
water immersion method.
. Sample sizes are considered appropriate for the style of the mineralisation.
Quality of assay data and laboratory tests
. All samples were submitted to Intertek Group Plc (Intertek), Adelaide
Laboratory, South Australia.
15
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BHP | Operational review for the half year ended 31 December 2023
. Drill hole results reported here were analysed for either the routine
Olympic Dam multi-element suite or an expanded Olympic Dam multi-element
suite. The routine suite includes Cu, Ag, Co, Ni, Pb, Zn (3-acid digest,
measured via IOC-OES) and Li-borate fusion measured via ICP-OES/MS (Al, As,
Ba, Bi, Ca, Ce, Cr, Fe, K, La, Mg, Mn, Mo, Na, P, Sb, Sc, Si, Sr, Ti, U, V,
Y, Zr). The expanded suite includes 4-acid digest measured via ICP-OES/MS
(Cu, Ni, Pb, Zn, Ag, As, Bi, Cd, Co, Ge, In, Li, Re, Se, Te, Tl) and
Li-borate fusion measured via ICP-OES/MS (Al, Ba, Be, Ca, Ce, Cr, Cs, Dy,
Er, Eu, Fe, Ga, Gd, Hf, Ho, K, La, Lu, Mg, Mn, Mo, Na, Nb, Nd, P, Pr, Rb,
Sb, Sc, Si, Sm, Sn, Sr, Ta, Tb, Th, Ti, Tm, U, V, W, Y, Yb, Zr) and
loss-on-ignition. All samples were assayed for Au (via 25-g FA with ICP-OES
finish), and C and S (via induction furnace combustion, measured by infrared
analyser).
. Comparative analysis between the 4- and 3-acid digest methods demonstrates
equal accuracy and precision within the Olympic Dam mineral system. The
4-acid digest is used to expand the geochemical suite of elements when
initially characterising new parts of the deposit. Drill holes (Table 3)
assayed via the 3-acid method were RD4552A, RD4554, RD45554W1, RD4554W2,
RD4554W3, RU48-14097, RU48-14098, RU48-14098W1, RU48-14099, RU48-17326. The
remainder were assayed via the 4-acid method.
. Quality control samples consisted of duplicates (1:25), analytical blanks
(1:50) and certified standards (1:25).
. Quality control results were reviewed when received. All performed within
acceptable accuracy and precision limits.
Verification of sampling and assaying
. BHP has robust QAQC standards and procedures relating to sampling and assay
quality control.
. Significant intersections were compiled by BHP staff members, and were
verified by the Competent Person.
. There were no adjustments to the assay data. Data is electronically uploaded
to the database from the external laboratory.
. All drill hole data is managed internally via a SQL server hosted database
with strict validation rules.
. No twinned holes have been drilled.
Location of data points
. All surface drill hole collar locations (historic and recent) have been
surveyed with Leica GS16 Rover and manually entered into acQuire database.
Underground drill holes collar locations have been surveyed using Leica TS16
Total Station.
. All coordinates are provided in Geocentric Datum of Australia 1994 (GDA94
Zone 53), and all surface collars correlate well with the Olympic Dam
topographic model, and all underground drill collars correlate well with
underground development.
Table 3. Collar Dip and Azimuths as presented may not reflect the variation of
deep directional drilling effect at depth as per section A-A' in Figure 3.
Easting Northing RL End of Hole Dip Azimuth
Hole ID Type Collar location (m) (m) (m) (m) (degree) (degree)
------- -------- --------------- --------- ---------------- ----------- -------- --------
RD4551................ parent surface 682,771 6,628,552 100 2262.8 -76 335
RD4551W1.............. wedge surface 682,771 6,628,552 100 2260.3 -76 335
RD4551W2A............. wedge surface 682,771 6,628,552 100 2257.5 -76 335
RD4552A............... parent surface 681,234 6,628,589 99 2337.6 -75 337
RD4552AW2............. wedge surface 681,234 6,628,589 99 2445.3 -75 337
RD4552AW3............. wedge surface 681,234 6,628,589 99 2523.7 -75 337
RD4554................ parent surface 681,885 6,628,678 98 1419.3 -76 327
RD4554W1.............. wedge surface 681,885 6,628,678 98 2346.8 -76 327
RD4554W2.............. wedge surface 681,885 6,628,678 98 2565.8 -76 327
RD4554W3.............. wedge surface 681,885 6,628,678 98 2231.3 -76 327
RD4561................ parent surface 682,257 6,628,686 101 1609.1 -74 353
RD4561W4.............. wedge surface 682,257 6,628,686 101 1867.0 -74 353
RD4568W1.............. wedge surface 682,257 6,628,681 101 2145.5 -76 319
RD4571................ parent surface 683,123 6,630,335 105 2554.9 -59 152
RD4572W1.............. wedge surface 683,364 6,630,263 103 2661.9 -63 148
RD4573W1.............. wedge surface 682,628 6,630,057 102 2320.0 -69 158
RD4574W1.............. wedge surface 683,142 6,628,612 99 2667.0 -60 334
16
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BHP | Operational review for the half year ended 31 December 2023
Easting Northing RL End of Hole Dip Azimuth
Hole ID Type Collar location (m) (m) (m) (m) (degree) (degree)
------- -------- --------------- --------- ---------------- ----------- -------- --------
RD4575................ parent surface 683,444 6,628,602 102 1614.8 -61 336
RD4577................ parent surface 681,226 6,628,588 99 691.4 -77 326
RD4577W1.............. wedge surface 681,226 6,628,588 99 2511.7 -79 330
RD4578A............... parent surface 683,439 6,628,607 102 2449.1 -65 352
RU48-14097............ parent underground 681,942 6,630,450 -474 2254.4 -55 165
RU48-14098............ parent underground 681,942 6,630,451 -474 1982.5 -62 143
RU48-14098W1.......... wedge underground 681,942 6,630,451 -474 2388.4 -62 143
RU48-14099............ parent underground 681,837 6,630,515 -472 2073.9 -52 174
RU48-17326............ parent underground 681,942 6,630,449 -474 1801.1 -42 155
RU50-12091............ parent underground 681,581 6,629,753 -462 1100.0 65 229
RU50-12093W1.......... wedge underground 681,587 6,629,752 -461 900.0 -59 189
RU50-17930............ parent underground 681,587 6,629,751 -461 867.5 -54 154
RU50-17931............ parent underground 681,586 6,629,751 -461 896.4 -45 190
RU50-17932............ parent underground 681,587 6,629,752 -462 1000.0 -69 198
Data spacing and distribution
. Drilling from surface, and some underground, used parent and wedge-styled
drilling.
. Nominal drill space ranging from 160 m to 320 m.
. Sample length was 2 m to 2.5m in length. No compositing was undertaken for
reporting.
. Drilling is perpendicular to the interpreted orebody orientation. The
current drilling does not provide sufficient information for estimation of a
Mineral Resource.
Orientation of data in relation to geological structure
. Drilling at Olympic Dam is designed to intersect nominally perpendicular to
the strike of the mineralisation.
. Drill holes were angled approximately north-south and were designed to drill
from outside the hydrothermal system, inwards towards mineralisation.
Sample security
. Core trays are transported by BHP contractors from the drill rigs to the
core processing facility at Olympic Dam, Roxby Downs. Samples in calico bags
are transported from Olympic Dam via road on trucks to Intertek, Adelaide,
South Australia.
. Calico bag numbers are automatically generated. Intertek is informed of the
sample number ranges for each pending shipment and are recorded in their
management system. Intertek use these to create barcode labels for Kraft
geochemical bags used for storing the pulverised samples. On sample receipt,
Intertek manually checks the submitted sample list against all samples in
the shipment. Once the samples are pulverised, all further steps are tracked
using the bar codes. BHP is informed of any discrepancies.
. BHP has internal governance and standards related to sample security and
data management. BHP undertakes routine verification of these practices.
Audits or reviews
. OD Deeps exploration results have not been externally audited.
. BHP routinely reviews standards, procedures and results from external
laboratories. No issues have been noted from any BHP review.
17
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BHP | Operational review for the half year ended 31 December 2023
Section 2 Reporting of Exploration Results
Mineral tenement and land tenure status
. The Roxby Downs (Indenture Ratification) Act 1982 (SA) provides statutory
authority for an agreement (Indenture) between BHP and the State of South
Australia. The Indenture establishes the legal framework for existing and
future operations at Olympic Dam and defines the roles and responsibilities
of the South Australian Government and BHP. Part of the Indenture provides
for the grant of Olympic Dam's special mining lease (SML).
. The indenture confers continuous mining rights (via the SML) to BHP until
the deposit is economically depleted. The lease is granted for 50 years,
with extension rights for a further 50 years. Additional extensions can be
requested. The current 50-year period ends in 2036. All agreements are in
place as part of the normal operating practices.
Exploration done by other parties
. The project has a long exploration history, dating back to 1975 by Western
Mining Corporation (prior to their acquisition by BHP in 2005) and BHP.
Geology
. The geology of the Olympic Dam iron-oxide copper uranium gold and silver
(IOCG) deposit is described comprehensively in numerous publications. In
summary, the deposit occurs entirely within the Olympic Dam Breccia Complex
(ODBC) (see Figure 6), hosted within the 1,593.28 (plus or minus) 0.26 Ma
Roxby Downs Granite (RDG). The ODBC, which contains the mineralised rock
volume, has an overall areal extent of around 50 km2. It is approximately 6
km long and 3 km wide, and typically extends to depths of 900 m and up to
2,300 m beneath the surface locally.
The ODBC is unconformably overlain by approximately ~350 m of unaltered,
unmineralized Neoproterozoic to Cambrian flat-lying sedimentary rocks. The
primary host rock within the ODBC is the RDG. Lesser, yet significant bedded
clastic facies, clasts of 1594.63 (plus or minus) 0.71 Ma Gawler Range
Volcanic felsic feldspar-phyric lavas in hematite-rich breccias and dykes,
and mafic-ultramafic lavas/dykes (MDY) which are pre-, syn- and
post-mineralisation, are an integral part of the Olympic Dam ore-forming
system. The ODBC and surrounding unbrecciated RDG are intruded by the
regionally extensive ca 825 Ma Gairdner Dyke Swarm (dolerite). The host
rocks for mineralisation consist of RDG and other lithologies (bedded
clastic facies, felsic lavas, mafic-ultramafic lavas, sills and dykes, and a
subvolcanic quartz-phyric rhyolite), all of which have been weakly to
intensely brecciated (via tectonic, magmatic and hydrothermal processes).
These are variably replaced by iron oxides forming a compositional continuum
from recognisable lithologies to iron oxide breccias, where the primary
lithology texture is obliterated by iron oxide alteration. Lithological
contacts are typically obscured by faulting and brecciation.
There are more than 125 minerals within the deposit, 15 of which account for
more than 98 per cent of the rock mass. The most common gangue minerals are
hematite, quartz, muscovite, K-feldspar, chlorite, fluorite, siderite and
barite. The dominant sulfide minerals within the deposit are
chalcocite/digenite/djurleite (referred to here as chalcocite), bornite,
chalcopyrite and pyrite, with lesser concentrations of sphalerite, galena,
molybdenite, tennantite-tetrahedrite and trace amounts of native copper. The
sulfides typically occur as disseminated grains in the breccia matrix and
clasts. The grain size varies from <20 (micro)m up to several millimetres,
with an average size of ~100 (micro)m. Sulfides occur rarely as veins in
granite-dominated breccias.
The Cu (plus or minus) Fe sulfides display a distinct upwards and inwards
deposit scale zonation, from pyrite (right arrow) chalcopyrite-pyrite (right
arrow) chalcopyrite exsolution lamellae in brown bornite (right arrow)
purple bornite-chalcocite symplectites (right arrow) digenite lamellae in
chalcocite.
Figure 6. Simplified geological plan of the Olympic Dam deposit,
approximately 350 m below surface.
Drill hole information
. Table 1 provides historic hole information for context. Tables 2 and 3, as
well as Figures 1 and 5 provide details of new drill hole coordinates,
orientations and locations, lengths and mineralised intercepts for the OD
Deeps exploration drilling. Figures 2 and 3 provide representative cross
sections. Figure 4 provides a representative long section.
Data aggregation methods
. All reported intersections are length and density weighted with reported
intersection in Table 2.
. Intervals in Table 2 have more than 1% Cu with no more than 10 consecutive
metres of less than 0.5% Cu, with an average internal waste of no more than
3 m. Two exceptions, due drilling orientation, to this are RD4552A (442 m
mineralised interval reported) and RU48-14098W1 (177.5 m mineralised
interval reported) which have single instances of 14m and 18m, respectively,
internal waste <0.5%Cu.
18
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BHP | Operational review for the half year ended 31 December 2023
Relationship between mineralisation widths and intercept lengths
. Intersections are presented as apparent (downhole) lengths. True width is
unknown.
Diagrams
. Figures in the main body text provide details of drill hole location and
context.
Balanced reporting
. All exploration results from the OD Deeps exploration program to 9 September
2023 have been included.
Other substantive exploration data
. Representative magnetic susceptibility measurements are recorded at 1 m
intervals within mineralisation.
. 2D and pseudo 3D seismic data acquisition was undertaken in July 2022. In
June-August 2023 BHP acquired 3D seismic data, with processing underway.
Further work
. BHP will consider future drilling to test lateral and depth extents, as well
as grade continuity.
Competent Person statement
The information in the report to which this statement is attached that relates
to Exploration Results is based on information compiled by Dr Kathy Ehrig, a
Competent Person who is a Member of The Australasian Institute of Mining and
Metallurgy (FAusIMM(CP)). Dr Ehrig is a full-time employee of BHP. Dr Ehrig has
sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the `Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr
Ehrig consents to the inclusion in the report of the matters based on her
information in the form and context in which it appears.
19
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BHP | Operational review for the half year ended 31 December 2023
Variance analysis relates to the relative performance of BHP and/or its
operations during the six months ended December 2023 compared with the six
months ended December 2022, unless otherwise noted. Production volumes, sales
volumes and capital and exploration expenditure from subsidiaries are reported
on a 100% 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.
The following abbreviations may have been used throughout this report: billion
tonnes (Bt); cost and freight (CFR); cost, insurance and freight (CIF), carbon
dioxide equivalent (CO2-e), dry metric tonne unit (dmtu); free on board (FOB);
giga litres (GL); greenhouse gas (GHG); grams per cubic centimeter (g/cm3);
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kilometre (km); million ounces per annum (Mozpa); metres (m); million pounds (Mlb);
million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz);
OZ Minerals Limited (OZL); part per million (ppm); pounds (lb); thousand ounces (koz);
thousand ounces per annum (kozpa); thousand tonnes (kt); thousand tonnes per annum (ktpa);
thousand tonnes per day (ktpd); tonnes (t); total recordable injury frequency (TRIF);
wet metric tonnes (wmt); and year to date (YTD).
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, our subsidiaries. Refer to note 30 `Subsidiaries' of
the Financial Statements in BHP's 30 June 2023 Annual Report for a list of our
significant subsidiaries. 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.
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.
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BHP | Operational review for the half year ended 31 December 2023
Date: 18-01-2024 08:15:00
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