|
Operational Review for the quarter ended 30 September 2020
BHP Group Plc
Registration number 3196209
Registered in England and Wales
Share code: BHP
ISIN: GB00BH0P3Z91
NEWS RELEASE LOGO
Release Time IMMEDIATE
Date 20 October 2020
Release Number 19/20
BHP OPERATIONAL REVIEW
FOR THE QUARTER ENDED 30 SEPTEMBER 2020
Note: All guidance is subject to further potential impacts from COVID-19 during
the 2021 financial year.
. We continue to safely operate through the COVID-19 pandemic and deliver
strong outcomes.
. Group copper equivalent production increased by 2% in the September 2020
quarter following strong performances in metallurgical coal and iron ore,
with record production achieved at Jimblebar.
. All production and unit cost guidance (based on exchange rates of AUD/USD
0.70 and USD/CLP 769) remains unchanged for the 2021 financial year, except
for Cerrejon production guidance which is under review due to an ongoing
strike.
. Our major projects under development in petroleum, copper and iron ore are
tracking well. Atlantis Phase 3 achieved first production in July 2020,
ahead of schedule and on budget. First production from the Spence Growth
Option is expected between December 2020 and March 2021. The Jansen Stage 1
project remains on track for final investment decision in the middle of the
2021 calendar year. As a result of COVID-19 delays and the earlier
challenges encountered on lining the shafts, we have approved incremental
funding for completion of the current shaft lining project.
. In petroleum, we have agreed to acquire an additional 28% interest in
Shenzi, a tier one asset with optionality, at an attractive price. This
transaction is consistent with our strategy of targeting counter-cyclical
acquisitions in high-quality producing or near producing assets.
. In copper exploration, the third phase of the drilling program at Oak Dam
in South Australia delivered encouraging results, with further high grade
mineralised intercepts of copper, with associated gold, uranium and silver
confirmed. The project will now move to planning for early stage design
evaluation and commencement of resource definition drilling in the first
half of the 2021 calendar year.
Sep YTD20 Sep Q20
Production (vs Sep YTD19) (vs Jun Q20) Sep Q20 vs Jun Q20 commentary
---------- -------------- ------------ -----------------------------
Petroleum (MMboe)............. 27 27 Increased volumes due to first production from Atlantis Phase 3
(9%) 1% and higher seasonal demand at Bass Strait, partially offset by
lower volumes at Shenzi due to planned maintenance, the
impact of Tropical Storm Laura in the Gulf of Mexico and
weather impacts at North West Shelf.
Copper (kt)................... 413 413 Strong concentrator throughput at Escondida, higher production
(4%) 0% at Olympic Dam due to strong smelter performance and
recovery of production at Antamina following a six-week
COVID-19 related stoppage in June 2020 quarter, offset by
lower cathode production at Escondida due to COVID-19
impacts and Pampa Norte due to planned maintenance at
Spence.
Iron ore (Mt)................. 66 66 Record quarterly production at Jimblebar and strong supply
8% (1%) chain performance, offset by the impact from planned major car
dumper maintenance.
Metallurgical coal (Mt)....... 10 10 Record truck and shovel stripping performance more than offset
4% (17%) by the impact of significant planned wash plant maintenance
activities.
Energy coal (Mt).............. 5 5 Sustained strong truck productivity at NSWEC offset by the
(17%) (18%) impact of mining higher strip ratio areas, as expected. Increased
volumes at Cerrejon following a temporary shutdown in
response to COVID-19 in the previous quarter.
Nickel (kt)................... 22 22 Lower production due to planned annual maintenance at the
3% (7%) Kwinana refinery and Kalgoorlie smelter.
--------------------------------------------------------------------------------
BHP Operational Review for 1
the quarter ended 30 September 2020
Summary
BHP Chief Executive Officer, Mike Henry:
"BHP has started the new financial year with a strong first quarter of safety
and production performance. Group production rose two per cent from a year ago
driven by solid results in metallurgical coal and iron ore, our major growth
projects made good progress, and we secured more options in copper, nickel and
oil.
While our copper operations in South America continue to be impacted by
COVID-19 preventative measures, we achieved strong concentrator throughput at
Escondida and expect first production from the Spence Growth Option before the
end of March 2021. In Australia, Olympic Dam delivered its best quarterly
production in the past five years and we are on track for first production from
South Flank in the middle of the 2021 calendar year.
In petroleum, we have entered an agreement to increase our interest in the tier
one Shenzi asset while delivering first production from Atlantis Phase 3 ahead
of schedule and within budget. In copper, we secured an option agreement in the
Northern Territory in Australia and saw further promising exploration results
from Oak Dam. We bolstered our nickel options with an exploration alliance in
Canada and completion of the Honeymoon Well acquisition.
With a period of uncertainty to navigate, our efforts to be safer, more
reliable and lower cost are as important as ever. We are alive to the
challenges ahead but we look forward with confidence in our people and our
strategy."
Operational performance
Production and guidance are summarised below.
Note: All guidance is subject to further potential impacts from COVID-19 during
the 2021 financial year.
Sep Q20 Sep Q20 Previous Current
Sep vs vs FY21 FY21
Production Q20 Sep Q19 Jun Q20 guidance guidance
---------- ------ ------- ------- ------------- ------------ ---------
Petroleum (MMboe)...................... 27 (9%) 1% 95 - 102 95 -102 Unchanged
Copper (kt)............................ 413 (4%) 0% 1,480 - 1,645 1,480 -1,645
Escondida (kt)...................... 285 (3%) (3%) 940 - 1,030 940 - 1,030 Unchanged
Pampa Norte (kt).................... 43 (33%) (22%) 240 - 270 240 - 270 Unchanged
Olympic Dam (kt).................... 52 47% 8% 180 - 205 180 - 205 Unchanged
Antamina (kt)....................... 35 (8%) 94% 120 - 140 120 - 140 Unchanged
Iron ore (Mt).......................... 66 8% (1%) 244 - 253 244 - 253
WAIO (100% basis) (Mt).............. 74 7% (2%) 276 - 286 276 - 286 Unchanged
Metallurgical coal (Mt)................ 10 4% (17%) 40 - 44 40 - 44
Queensland Coal (100% basis) (Mt)... 17 5% (18%) 71 - 77 71 - 77 Unchanged
Energy coal (Mt)....................... 5 (17%) (18%) 22 - 24 Under review
NSWEC (Mt).......................... 4 1% (26%) 15 - 17 15 - 17 Unchanged
Cerrejon (Mt)....................... 1 (49%) 35% ~7 Under review
Nickel (kt)............................ 22 3% (7%) 85 - 95 85 - 95 Unchanged
Major development projects
During the September 2020 quarter, Atlantis Phase 3 achieved first production
ahead of schedule and on budget. Given this, the progress of Atlantis Phase 3
will not be reported in future Operational Reviews.
The Jansen Stage 1 project in Canada is expected to be presented to the BHP
Board for Final Investment Decision in the middle of the 2021 calendar year. As
a consequence of the challenges encountered earlier with placement of the shaft
lining and then the more recent impacts from our COVID-19 response plan, the
Board has approved additional funding of US$272 million for the completion of
the shafts, resulting in a total budget of US$3.0 billion (previously US$2.7
billion). Jansen Stage 1 remains well positioned with attractive medium to
longer-term commodity fundamentals, and is set to be a high-margin, low-cost,
long-life asset, with multiple, basin-wide, expansion opportunities. As always,
we will be disciplined about our entry into the market and it must pass our
strict Capital Allocation Framework tests.
--------------------------------------------------------------------------------
BHP Operational Review for 2
the quarter ended 30 September 2020
At the end of the September 2020 quarter, BHP had five major projects under
development in petroleum, copper, iron ore and potash, with a combined budget
of US$10.9 billion over the life of the projects.
Corporate update
On 10 September 2020, BHP released its Climate Change Report, which provided an
update on its progress on climate action, new climate commitments, and how it
integrates climate change into corporate strategy and portfolio decisions.
Over the last month BHP has reduced gross debt by a total of US$2.9 billion. On
17 September 2020, BHP successfully concluded its US$1.9 billion multi-currency
hybrid repurchase program. The program was funded from surplus cash, and will
reduce future interest costs while also reducing the Group's gross debt
balance. The hybrid repurchase program was strongly value accretive due to the
reduction in interest costs associated with the hybrids being higher than the
premium paid to acquire the hybrids over par value. This premium over par value
generated an upfront accounting loss of approximately US$250 million (pre-tax),
which will be reported in net finance costs in the December 2020 half year. On
19 October 2020, BHP redeemed the US$1.0 billion of 6.250 per cent hybrid notes
at par on their first call date, also using surplus cash. BHP remains in a
strong liquidity position.
On 25 September 2020, BHP exercised the first, one-year extension option under
the Group's US$5.5 billion revolving credit facility, which has extended the
maturity date of the facility to 10 October 2025 at no additional cost.
On 13 October 2020, BHP and the First Nations Heritage Protection Alliance
announced they have jointly agreed a path forward to enhance the influence and
voice of Traditional Owners in relation to heritage protection.
Good progress is continuing to be made with 12th Federal Court of Belo
Horizonte in Brazil which is seeking to expedite the remediation process
related to the Fundao dam failure, with recent judicial decisions regarding
financial assistance and compensation of impacted persons, as well as oversight
of other reparation programs. On 30 September 2020, the Federal and the Minas
Gerais State Public Prosecutors' Offices and the Federal, the Minas Gerais and
the Espirito Santo State Public Defenders' Offices filed a request to the 12th
Federal Court of Belo Horizonte for immediate resumption of the public civil
action filed in 2016. This claim had been suspended under a Governance
Agreement ratified on 8 August 2018, in which BHP Brasil, Samarco and Vale
established a process to renegotiate the environmental and socio-economic
programs over two years to progress settlement of the R$155 billion
(approximately US$28 billion) Federal Public Prosecution Office claim. BHP,
Samarco and Vale consider the resumption request without merit, given that
there was no default of obligations under the Governance Agreement. BHP,
Samarco and Vale remain committed to supporting the Renova Foundation and its
work to progress the remediation and compensatory programs to restore the
environment and re-establish communities affected by the Samarco tragedy.
--------------------------------------------------------------------------------
BHP Operational Review for 3
the quarter ended 30 September 2020
Petroleum
Production
Sep Q20 Sep Q20
vs vs
Sep Q20 Sep Q19 Jun Q20
------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe)... 12 (8%) 1%
Natural gas (bcf)....................................... 91 (9%) 1%
Total petroleum production (MMboe)...................... 27 (9%) 1%
Petroleum - Total petroleum production decreased by nine per cent to 27 MMboe.
Crude oil, condensate and natural gas liquids production declined by eight per
cent to 12 MMboe. This reflects natural field decline across the portfolio and
the impacts of tie-in and commissioning activities at Atlantis, which was
partially offset with the earlier than scheduled achievement of first
production from the Phase 3 project.
Natural gas production decreased by nine per cent to 91 bcf, reflecting a
decrease in tax barrels at Trinidad and Tobago in accordance with the terms of
our Production Sharing Contract, end-of-field life at Minerva in the September
2019 quarter, lower domestic gas sales at Bass Strait and North West Shelf and
natural field decline across the portfolio. This decline was partially offset
by higher domestic gas sales at Macedon.
Production in the December 2020 quarter is expected to reflect tie-in activity
for the Trinidad and Tobago Ruby project and impacts from Hurricane Delta in
the Gulf of Mexico, with the potential risk of further impacts given the higher
than average active hurricane season in the Gulf of Mexico.
On 6 October 2020, BHP signed a Membership Interest Purchase and Sale Agreement
with Hess Corporation to acquire an additional 28 per cent working interest in
Shenzi for US$505 million (subject to customary pre and post-closing
adjustments). The acquisition is consistent with our strategy of targeting
counter-cyclical acquisitions in high-quality producing or near producing
assets, and will bring BHP's working interest to 72 per cent. The effective
date of the transaction is 1 July 2020 with an expected close by December 2020,
subject to the satisfaction or waiver of customary and transaction-specific
conditions.
Total petroleum production guidance for the 2021 financial year remains
unchanged at between 95 and 102 MMboe. This will be updated to reflect the
additional production from Shenzi once the transaction is closed and the impact
of potential further weather events in the Gulf of Mexico during the December
2020 quarter.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ---------------------------------------
Atlantis Phase 3 696 Achieved New subsea production system First production achieved in July
(US Gulf of Mexico) in CY20 that will tie back to the existing 2020, ahead of schedule and on
44% (non-operator) Atlantis facility, with capacity to budget. The drilling and
produce up to 38,000 gross completion activities of the
barrels of oil equivalent per day. remaining wells will continue to
be progressed as part of planned
asset activities.
Ruby 283 CY21 Five production wells tied back On schedule and budget.
(Trinidad & Tobago) into existing operated processing The project is 39% complete.
68.46% facilities, with capacity to
(operator) produce up to 16,000 gross
barrels of oil per day and
80 million gross standard cubic
feet of natural gas per day.
Mad Dog Phase 2 2,154 CY22 New floating production facility On schedule and budget.
(US Gulf of Mexico) with the capacity to produce up to The project is 80% complete.
23.9% (non-operator) 140,000 gross barrels of crude oil
per day.
The Bass Strait West Barracouta project is on schedule and budget, and is
expected to achieve first production in the 2021 calendar year.
--------------------------------------------------------------------------------
BHP Operational Review for 4
the quarter ended 30 September 2020
Petroleum exploration
Exploration and appraisal wells drilled during the September 2020 quarter are
summarised below.
Formation Water Total well
Well Location Target age BHP equity Spud date depth depth Status
---- ----------------- ------- --------- ---------- --------------- ------- ------------ -------------------
Broadside-1...... Trinidad & Tobago Oil Miocene 65% (BHP 20 August 2020 2,019 m 8,142 m/(1)/ Drilling ahead/(1)/
Block 3 Operator)
In Trinidad and Tobago, the Deepwater Invictus rig is drilling ahead on the
Broadside-1 exploration well in the Southern licence.
In the US Gulf of Mexico, following Lease Sale 254, Blocks AC36, AC80 and AC81
in the western Gulf of Mexico were awarded in July 2020.
In the Gippsland Basin, we participated in a multi-client 3D seismic survey
(non-operated)/(2)/ that successfully completed in the September 2020 quarter.
Evaluation of the data is ongoing.
Petroleum exploration expenditure for the September 2020 quarter was
US$108 million, of which US$60 million was expensed. An approximately
US$450 million exploration and appraisal program is being executed for the 2021
financial year.
--------------------------------------------------------------------------------
BHP Operational Review for 5
the quarter ended 30 September 2020
Copper
Production
Sep Q20 Sep Q20
vs vs
Sep Q20 Sep Q19 Jun Q20
------- ------- -------
Copper (kt)..................... 413 (4%) 0%
Zinc (t)........................ 34,398 68% 150%
Uranium (t)..................... 874 (7%) (14%)
Copper - Total copper production decreased by four per cent to 413 kt. Guidance
for the 2021 financial year remains unchanged at between 1,480 and 1,645 kt.
For the September 2020 quarter, our Chilean assets operated with a reduction in
their operational workforces of approximately 30 per cent (versus approximately
35 per cent in the June 2020 quarter) as a result of the comprehensive plan we
have implemented for COVID-19. Our workforce are expected to remain at similar
levels during the December 2020 quarter.
Escondida copper production decreased by three per cent to 285 kt, with
continued strong concentrator throughput of 378 ktpd offset by lower cathode
production. The operating environment remains challenging, with a high degree
of uncertainty about the continued impacts from COVID-19 and expected
absenteeism levels.
Guidance for the 2021 financial year remains unchanged at between 940 and 1,030 kt, and
reflects a decline in the copper grade of concentrator feed of approximately
four per cent, and the need to continue to balance mine development and
production requirements with processing capacity. Production is also likely to
be affected in the 2022 financial year as a result of the COVID-19 impact of a
reduced operational workforce leading to lower material movement in the 2021
financial year. Guidance of an annual average of 1.2 Mt of copper production
over the next five years remains unchanged.
Escondida’s Collective Agreement with Union N°2 of Supervisors and Staff expired on
30 September 2020. On 16 October 2020, Escondida successfully completed negotiations
with Union N°2 of Supervisors and Staff and signed a new Collective Agreement,
effective for 36 months from 1 October 2020.
Pampa Norte copper production decreased by 33 per cent to 43 kt, largely due to
planned maintenance at Spence and the impact of a reduced operational workforce
due to COVID-19 preventative measures. Guidance for the 2021 financial year
remains unchanged at between 240 and 270 kt, and reflects the start-up of the
Spence Growth Option, partially offset by expected grade decline of
approximately seven per cent. Cerro Colorado is progressing in accordance with
its plan to reduce throughput and costs to achieve improved cash returns and
ensure viable mining operations for the remaining period of its current
environmental licence, which expires at the end of the 2023 calendar year.
Olympic Dam copper production increased 47 per cent to 52 kt, the highest
quarterly rate since the December 2015 quarter, supported by improved
underground mine productivity and strong smelter performance. The physical
replacement and commissioning of the refinery crane is scheduled to be
completed in the March 2021 quarter. Guidance for the 2021 financial year
remains unchanged at between 180 and 205 kt.
Antamina copper production decreased by eight per cent to 35 kt and zinc
production increased by 68 per cent to 34 kt, reflecting lower copper head
grades and higher zinc head grades, as well as the impacts of operating with a
reduced workforce due to COVID-19 preventative measures. While operations have
ramped up following a six-week COVID-19 related shutdown during the June 2020
quarter, Antamina continues to operate with a reduced workforce, which will
impact material mined in the 2021 financial year. Guidance remains unchanged
for the 2021 financial year, with copper production of between 120 and 140 kt,
and zinc production of between 140 and 160 kt.
--------------------------------------------------------------------------------
BHP Operational Review for 6
the quarter ended 30 September 2020
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ------------------------------------
Spence Growth Option.... 2,460 FY21 New 95 ktpd concentrator is On budget.
(Chile) expected to increase payable First production is expected
100% copper in concentrate production between December 2020 and
by ~185 ktpa in the first 10 years March 2021. The overall project
of operation and extend the is 97% complete.
mining operations by more than
50 years.
The Spence Growth Option is on track to achieve first production between
December 2020 and March 2021. The commissioning of the desalination plant and
capitalisation of the associated US$600 million lease (approximate) is on track
to occur in the first half of the 2021 financial year.
At Olympic Dam, we continue to study options for expansion. Following more than
400 km of underground drilling associated with the Brownfield Expansion (BFX)
project studies, we have improved knowledge of the ore body's variability. This
has provided challenges for the economics of the BFX project, and we have
decided the optimal way forward for now is through targeted debottlenecking
investments, plant upgrades and modernisation of our infrastructure. We will
continue to study longer-term options for growth. Over the next two years, our
focus will remain on completing our asset integrity program. This will underpin
more stable operations and expected copper production of more than 200 ktpa.
The long-term opportunity for Olympic Dam is unchanged, with our enhanced
understanding of the resource in the Southern Mine Area and the promising
results from Oak Dam providing strong foundations for unlocking the full growth
potential of this asset.
--------------------------------------------------------------------------------
BHP Operational Review for 7
the quarter ended 30 September 2020
Iron Ore
Production
Sep Q20 Sep Q20
vs vs
Sep Q20 Sep Q19 Jun Q20
------- ------- -------
Iron ore production (kt)...... 66,040 8% (1%)
------- ------- -------
Iron ore - Total iron ore production increased by eight per cent to 66 Mt (74
Mt on a 100 per cent basis). Guidance for the 2021 financial year remains
unchanged at between 244 and 253 Mt (276 and 286 Mt on a 100 per cent basis).
WAIO achieved higher volumes reflecting record production at Jimblebar and
strong performance across the supply chain. An uplift in car dumper reliability
and performance has been enabled by the BHP Operating System and improved
maintenance strategies. The ongoing program to improve productivity and provide
a stable base for our tightly coupled supply chain has progressed well with the
completion of a planned major maintenance campaign on car dumper three during
the September 2020 quarter. Production in the December 2020 quarter is expected
to be impacted by Mining Area C and South Flank major tie-in activity, and
maintenance on car dumper four, scheduled to align with the tie-in activity.
Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.
Restart can occur when the filtration system is complete and Samarco has met
all necessary safety requirements, and will be subject to final approval by
Samarco's shareholders.
Projects
Capital Initial
Project and expenditure production
ownership US$M target date Capacity Progress
----------- ----------- ----------- -------------------------------------- ------------------------------------
South Flank............ 3,061 Mid-CY21 Sustaining iron ore mine to replace On schedule and budget.
(Australia) production from the 80 Mtpa (100 per The overall project is 84% complete.
85% cent basis) Yandi mine.
BHP and the Banjima people have established a Heritage Advisory Council to
provide input into mine planning at South Flank. The consultation process
continues in parallel with our construction program at South Flank, which
remains on schedule.
--------------------------------------------------------------------------------
BHP Operational Review for 8
the quarter ended 30 September 2020
Coal
Production
Sep Q20 Sep Q20
vs vs
Sep Q20 Sep Q19 Jun Q20
------- ------- -------
Metallurgical coal (kt)......... 9,690 4% (17%)
Energy coal (kt)................ 4,662 (17%) (18%)
Metallurgical coal - Metallurgical coal production increased four per cent to
10 Mt (17 Mt on a 100 per cent basis). Guidance for the 2021 financial year
remains unchanged at between 40 and 44 Mt (71 and 77 Mt on a 100 per cent
basis), although we are monitoring for any potential impacts from
restrictions on coal imports into China. With Blackwater back at full capacity
at the end of the September 2020 quarter, volumes will be weighted to the
second half of the financial year.
At Queensland Coal, strong underlying operational performance, including record
truck and shovel stripping, was partially offset by planned major wash plant
shutdowns at Blackwater, Goonyella, Saraji and Caval Ridge. Blackwater,
Queensland Coal's largest mine, was back at full capacity by the end of
September 2020, following recovery from significant wet weather impacts in the
March 2020 quarter.
Energy coal - Energy coal production decreased by 17 per cent to 5 Mt. Guidance
for the 2021 financial year is under review due to the ongoing strike at
Cerrejon.
NSWEC production was broadly unchanged at 4 Mt with significantly improved
truck productivity offset by a higher average strip ratio. Guidance for the
2021 financial year remains unchanged at between 15 and 17 Mt, although we are
monitoring for any potential impacts from restrictions on coal imports
into China. As a result of tropical cyclones in south-eastern Asia, several
shipments were delayed until early October 2020.
Cerrejon production decreased by 49 per cent to 1 Mt predominantly due to a
strike that started on 31 August 2020. Guidance for the 2021 financial year of
approximately 7 Mt is under review.
--------------------------------------------------------------------------------
BHP Operational Review for 9
the quarter ended 30 September 2020
Other
Nickel production
Sep Q20 Sep Q20
vs vs
Sep Q20 Sep Q19 Jun Q20
------- ------- -------
Nickel (kt). 22.2 3% (7%)
Nickel - Nickel West production increased by three per cent to 22 kt,
reflecting improved operational stability and strong performance from the new
mines. Planned biannual maintenance at the Kalgoorlie Smelter and Kwinana
Refinery was completed during the September 2020 quarter. Guidance for the 2021
financial year remains unchanged at between 85 and 95 kt.
Operations Services - The Operations Services team continues to grow, with over
3,300 permanent jobs now created in Australia, successfully accelerating
safety, productivity and efficiency outcomes across WAIO, Queensland Coal and
NSWEC. In October 2020, BHP committed 2,500 additional apprenticeship and
traineeship positions which will be made available through the first two BHP
FutureFit academies in Mackay in Queensland and Perth in Western Australia,
over the next five years.
Potash project
Project and Investment
ownership US$M Scope Progress
----------- ---------- ------------------------------------------------- ------------------------------------------
Jansen Potash......... 2,972 Investment to finish the excavation and lining Budget revised to fund the completion of the
(Canada) of the production and service shafts, and to shafts. The project is 86% complete/(i)/.
100% continue the installation of essential surface
infrastructure and utilities.
(i) Project percentage completion rebased on US$2,972 million revised budget
(previously US$2,700 million).
Following delays to completion of the shafts as a result of initial challenges
with placement of the shaft lining, since rectified, and impacts from our
COVID-19 response plan, the budget to fund the completion of the shafts has
been increased by US$272 million in October 2020. The revised budget for the
current scope of work is now US$3.0 billion.
Minerals exploration
Minerals exploration expenditure for the September 2020 quarter was
US$44 million, of which US$27 million was expensed. Greenfield minerals
exploration is predominantly focused on advancing copper targets within Chile,
Ecuador, Mexico, Peru, Canada, South Australia and the south-west United States.
At Oak Dam in South Australia, the third phase of the exploration drilling
program continues to deliver encouraging results. Further high grade
mineralised intercepts of copper, with associated gold, uranium and silver,
were confirmed. Multiple intervals ranging between 0.24 and 4.20 per cent
copper were identified by laboratory assay results from 12 of the 14 drill
holes, totalling 21,543 metres. For further details refer to
Appendix 1. The exploration project will now be transferred to the Minerals
Australia Planning and Technical team for assessment, and next stage resource
definition drilling to inform future design is expected to commence in the
first half of the 2021 calendar year.
In August 2020, BHP signed an agreement with Midland Exploration to undertake a
nickel exploration alliance in north-eastern Quebec, Canada. The main objective
of this agreement is to identify, test and develop high quality exploration
targets towards the discovery of new significant nickel deposits.
In September 2020, BHP entered into an Option Agreement with Encounter
Resources covering the 4,500 km/2/ prospective Elliott Copper Project in the
Northern Territory, Australia. It provides BHP with the right, following the
completion of a jointly designed validation program, to enter an earn-in and
joint venture agreement to earn up to 75 per cent interest in Elliott by
spending up to A$22 million over 10 years.
BHP's acquisition of the Honeymoon Well tenements and a 50 per cent interest in
the Albion Downs North and Jericho exploration joint ventures was also
completed in September 2020. The Honeymoon Well increases Nickel West's
position in one of the world's major Nickel sulphide provinces and the
exploration joint ventures provide us with new access to prospective tenements.
Several deposits are under consideration and are expected to be included in
Nickel West long term plans in the future.
--------------------------------------------------------------------------------
BHP Operational Review for 10
the quarter ended 30 September 2020
Variance analysis relates to the relative performance of BHP and/or its
operations during the September 2020 quarter compared with the September 2019
quarter, unless otherwise noted. Production volumes, sales volumes and capital
and exploration expenditure from subsidiaries are reported on a 100 per cent
basis; production and sales volumes from equity accounted investments and other
operations are reported on a proportionate consolidation basis. Numbers
presented may not add up precisely to the totals provided due to rounding.
Copper equivalent production based on 2020 financial year average realised
prices.
The following footnotes apply to this Operational Review:
(1) Well depth and status as at 30 September 2020.
(2) Non-operated CGG, EP:4619.
The following abbreviations may have been used throughout this report: barrels
(bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and
freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per
tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million
barrels of oil equivalent (MMboe); million barrels of oil per day (MMbpd);
million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per
annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent
(Mboe); thousand barrels of oil equivalent per day (Mboe/d); thousand ounces
(koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand
tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet
metric tonnes (wmt).
In this release, the terms 'BHP', the 'Group', 'BHP Group', 'we', 'us', 'our'
and ourselves' are used to refer to BHP Group Limited, BHP Group plc and,
except where the context otherwise requires, their respective subsidiaries as
defined in note 29 'Subsidiaries' in section 5.1 of BHP's 30 June 2020 Annual
Report and Form 20-F,. Those terms do not include non-operated assets.
Notwithstanding that this release may include production, financial and other
information from non-operated assets, non-operated assets are not included in
the BHP Group and, as a result, statements regarding our operations, assets and
values apply only to our operated assets unless stated otherwise. Our
non-operated assets include Antamina, Cerrejon, Samarco, Atlantis, Mad Dog,
Bass Strait and North West Shelf. BHP Group cautions against undue reliance on
any forward-looking statement or guidance in this release, particularly in
light of the current economic climate and significant volatility, uncertainty
and disruption arising in connection with COVID-19. These forward looking
statements are based on information available as at the date of this release
and are not guarantees or predictions of future performance and involve known
and unknown risks, uncertainties and other factors, many of which are beyond
our control and which may cause actual results to differ materially from those
expressed in the statements contained in this release.
--------------------------------------------------------------------------------
BHP Operational Review for 11
the quarter ended 30 September 2020
Further information on BHP can be found at: bhp.com
Sponsor: UBS South Africa (Pty) Limited
Authorised for lodgement by:
Caroline Cox
Group General Counsel and Company Secretary
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
Australia and Asia Australia and Asia
Gabrielle Notley Tara Dines
Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Tel: +61 3 9609 2222 Mobile: +61 499 249 005
Europe, Middle East and Africa Europe, Middle East and Africa
Neil Burrows Elisa Morniroli
Tel: +44 20 7802 7484 Mobile: +44 7786 661 683 Tel: +44 20 7802 7611 Mobile: +44 7825 926 646
Americas Americas
Judy Dane Brian Massey
Tel: +1 713 961 8283 Mobile: +1 713 299 5342 Tel: +1 713 296 7919 Mobile: +1 832 870 7677
BHP Group Limited ABN 49 004 028 077 BHP Group plc Registration number 3196209
LEI WZE1WSENV6JSZFK0JC28 LEI 549300C116EOWV835768
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Registered Office: Nova South, 160 Victoria Street
Melbourne Victoria 3000 Australia London SW1E 5LB United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Group which is
headquartered in Australia
LOGO
Follow us on social media
--------------------------------------------------------------------------------
BHP Operational Review for 12
the quarter ended 30 September 2020
Production summary
Quarter ended Year to date
------------------------------------ ---------------
Sep Dec Mar Jun Sep Sep Sep
BHP 2019 2019 2020 2020 2020 2020 2019
interest ------ ------- ------- ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Production
Crude oil, condensate and NGL (Mboe)... 12,507 13,412 11,589 11,355 11,507 11,507 12,507
Natural gas (bcf)...................... 100.4 88.7 80.7 89.8 90.9 90.9 100.4
------ ------- ------- ------ ------ ------- -------
Total (Mboe)........................... 29,240 28,195 25,039 26,322 26,657 26,657 29,240
------ ------- ------- ------ ------ ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/........................ 57.5% 237.0 240.3 220.1 228.5 236.7 236.7 237.0
Antamina............................... 33.8% 37.6 36.2 32.9 17.8 34.6 34.6 37.6
------ ------- ------- ------ ------ ------- -------
Total.................................. 274.6 276.5 253.0 246.3 271.3 271.3 274.6
------ ------- ------- ------ ------ ------- -------
Cathode (kt)
Escondida /(3)/........................ 57.5% 55.9 68.4 69.6 65.5 47.9 47.9 55.9
Pampa Norte /(4)/...................... 100% 63.9 60.0 64.3 54.5 42.5 42.5 63.9
Olympic Dam............................ 100% 35.1 50.5 38.4 47.6 51.5 51.5 35.1
------ ------- ------- ------ ------ ------- -------
Total.................................. 154.9 178.9 172.3 167.6 141.9 141.9 154.9
------ ------- ------- ------ ------ ------- -------
------ ------- ------- ------ ------ ------- -------
Total copper (kt)......................... 429.5 455.4 425.3 413.9 413.2 413.2 429.5
------ ------- ------- ------ ------ ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................... 33.8% 405 383 621 262 690 690 405
------ ------- ------- ------ ------ ------- -------
Total.................................. 405 383 621 262 690 690 405
------ ------- ------- ------ ------ ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................... 33.8% 20,454 22,483 31,789 13,736 34,398 34,398 20,454
------ ------- ------- ------ ------ ------- -------
Total.................................. 20,454 22,483 31,789 13,736 34,398 34,398 20,454
------ ------- ------- ------ ------ ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/......................... 57.5% 48,801 49,209 35,990 43,422 42,332 42,332 48,801
Olympic Dam (refined gold)............. 100% 43,205 35,382 33,235 34,150 36,608 36,608 43,205
------ ------- ------- ------ ------ ------- -------
Total.................................. 92,006 84,591 69,225 77,572 78,940 78,940 92,006
------ ------- ------- ------ ------ ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/........................ 57.5% 1,626 1,798 1,390 1,599 1,580 1,580 1,626
Antamina............................... 33.8% 1,101 1,173 1,216 626 1,326 1,326 1,101
Olympic Dam (refined silver)........... 100% 245 203 241 295 157 157 245
------ ------- ------- ------ ------ ------- -------
Total.................................. 2,972 3,174 2,847 2,520 3,063 3,063 2,972
------ ------- ------- ------ ------ ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam............................ 100% 937 949 776 1,016 874 874 937
------ ------- ------- ------ ------ ------- -------
Total.................................. 937 949 776 1,016 874 874 937
------ ------- ------- ------ ------ ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................... 33.8% 405 527 491 243 284 284 405
------ ------- ------- ------ ------ ------- -------
Total.................................. 405 527 491 243 284 284 405
------ ------- ------- ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 13
the quarter ended 30 September 2020
Production summary
Quarter ended Year to date
------------------------------------ ---------------
Sep Dec Mar Jun Sep Sep Sep
BHP 2019 2019 2020 2020 2020 2020 2019
interest ------ ------- ------- ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
Newman................................. 85% 16,316 15,766 16,449 17,110 16,410 16,410 16,316
Area C Joint Venture................... 85% 12,620 12,727 12,179 13,973 11,889 11,889 12,620
Yandi Joint Venture.................... 85% 17,827 14,857 17,491 19,087 17,666 17,666 17,827
Jimblebar /(6)/........................ 85% 14,239 17,045 13,911 16,559 20,075 20,075 14,239
Wheelarra.............................. 85% 3 -- -- -- -- -- 3
Samarco................................ 50% -- -- -- -- -- -- --
------ ------- ------- ------ ------ ------- -------
Total.................................. 61,005 60,395 60,030 66,729 66,040 66,040 61,005
------ ------- ------- ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt) /(7)/
BMA.................................... 50% 6,905 8,723 6,869 9,078 7,365 7,365 6,905
BHP Mitsui Coal /(8)/.................. 80% 2,453 2,201 2,353 2,536 2,325 2,325 2,453
------ ------- ------- ------ ------ ------- -------
Total.................................. 9,358 10,924 9,222 11,614 9,690 9,690 9,358
------ ------- ------- ------ ------ ------- -------
Energy coal
Production (kt)
Australia.............................. 100% 3,592 3,763 3,810 4,887 3,624 3,624 3,592
Colombia............................... 33.3% 2,055 2,315 1,978 767 1,038 1,038 2,055
------ ------- ------- ------ ------ ------- -------
Total.................................. 5,647 6,078 5,788 5,654 4,662 4,662 5,647
------ ------- ------- ------ ------ ------- -------
Other
Nickel
Saleable production (kt)
Nickel West /(9)/...................... 100% 21.6 13.7 20.9 23.9 22.2 22.2 21.6
------- ------- ------- ------ ------ ------- -------
Total.................................. 21.6 13.7 20.9 23.9 22.2 22.2 21.6
------- ------- ------- ------ ------ ------- -------
Cobalt
Saleable production (t)
Nickel West............................ 100% 211 120 132 312 238 238 211
------- ------- ------- ------ ------ ------- -------
Total.................................. 211 120 132 312 238 238 211
------- ------- ------- ------ ------ ------- -------
(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 1,000 Mboe.
(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) Production restated to include other nickel by-products.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
--------------------------------------------------------------------------------
BHP Operational Review for 14
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate....................... (Mboe) 1,409 1,427 926 1,231 1,305 1,305 1,409
NGL............................................ (Mboe) 1,810 1,405 958 1,493 1,660 1,660 1,810
Natural gas.................................... (bcf) 36.6 27.8 18.4 28.1 34.1 34.1 36.6
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 9,319 7,465 4,957 7,408 8,648 8,648 9,319
------- ------- ------- ------- ------- ------- -------
North West Shelf
Crude oil and condensate....................... (Mboe) 1,337 1,376 1,266 1,260 1,215 1,215 1,337
NGL............................................ (Mboe) 202 200 191 203 162 162 202
Natural gas.................................... (bcf) 32.1 32.9 35.0 35.2 29.6 29.6 32.1
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 6,889 7,059 7,287 7,334 6,310 6,310 6,889
------- ------- ------- ------- ------- ------- -------
Pyrenees
Crude oil and condensate....................... (Mboe) 979 934 917 971 837 837 979
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 979 934 917 971 837 837 979
------- ------- ------- ------- ------- ------- -------
Other Australia /(2)/
Crude oil and condensate....................... (Mboe) 8 1 1 1 1 1 8
Natural gas.................................... (bcf) 12.0 11.4 11.2 11.9 12.7 12.7 12.0
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 2,008 1,901 1,874 1,987 2,118 2,118 2,008
------- ------- ------- ------- ------- ------- -------
Atlantis /(3)/
Crude oil and condensate....................... (Mboe) 2,759 3,525 2,769 2,223 2,421 2,421 2,759
NGL............................................ (Mboe) 192 245 178 54 154 154 192
Natural gas.................................... (bcf) 1.4 1.8 1.3 1.1 1.2 1.2 1.4
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 3,184 4,070 3,170 2,456 2,775 2,775 3,184
------- ------- ------- ------- ------- ------- -------
Mad Dog /(3)/
Crude oil and condensate....................... (Mboe) 1,096 1,202 1,272 1,297 1,211 1,211 1,096
NGL............................................ (Mboe) 49 52 55 33 48 48 49
Natural gas.................................... (bcf) 0.2 0.2 0.2 0.3 0.2 0.2 0.2
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,178 1,287 1,355 1,374 1,292 1,292 1,178
------- ------- ------- ------- ------- ------- -------
Shenzi /(3)/
Crude oil and condensate....................... (Mboe) 1,345 1,671 1,645 1,584 1,395 1,395 1,345
NGL............................................ (Mboe) 70 94 94 40 71 71 70
Natural gas.................................... (bcf) 0.2 0.3 0.3 0.4 0.3 0.3 0.2
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 1,448 1,815 1,791 1,686 1,516 1,516 1,448
------- ------- ------- ------- ------- ------- -------
Trinidad/Tobago
Crude oil and condensate....................... (Mboe) 175 166 97 72 102 102 175
Natural gas.................................... (bcf) 17.9 14.2 14.0 12.8 12.8 12.8 17.9
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 3,158 2,533 2,427 2,201 2,235 2,235 3,158
------- ------- ------- ------- ------- ------- -------
Other Americas /(3) (4)/
Crude oil and condensate....................... (Mboe) 185 230 344 198 212 212 185
NGL............................................ (Mboe) 2 4 22 5 2 2 2
Natural gas.................................... (bcf) -- 0.1 0.3 -- -- -- --
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 187 251 412 209 214 214 187
------- ------- ------- ------- ------- ------- -------
--------------------------------------------------------------------------------
BHP Operational Review for 15
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Algeria
Crude oil and condensate....................... (Mboe) 889 880 854 690 711 711 889
------- ------- ------- ------- ------- ------- -------
Total petroleum products....................... (Mboe) 889 880 854 690 711 711 889
------- ------- ------- ------- ------- ------- -------
Petroleum /(1)/
Total production
Crude oil and condensate....................... (Mboe) 10,182 11,412 10,091 9,527 9,410 9,410 10,182
NGL............................................ (Mboe) 2,325 2,000 1,498 1,828 2,097 2,097 2,325
Natural gas.................................... (bcf) 100.4 88.7 80.7 89.8 90.9 90.9 100.4
------- ------- ------- ------- ------- ------- -------
Total.......................................... (Mboe) 29,240 28,195 25,039 26,322 26,657 26,657 29,240
------- ------- ------- ------- ------- ------- -------
(1) Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe.
Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon. Minerva ceased production in
September 2019.
(3) Gulf of Mexico volumes are net of royalties.
(4) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
--------------------------------------------------------------------------------
BHP Operational Review for 16
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined.................................... (kt) 101,026 100,057 107,268 75,062 83,357 83,357 101,026
Sulphide ore milled............................... (kt) 33,956 33,659 33,440 34,755 34,733 34,733 33,956
Average concentrator head grade................... (%) 0.86% 0.87% 0.82% 0.81% 0.85% 0.85% 0.86%
Production ex mill................................ (kt) 245.0 246.1 230.0 236.8 243.9 243.9 245.0
Production
Payable copper.................................... (kt) 237.0 240.3 220.1 228.5 236.7 236.7 237.0
Copper cathode (EW)............................... (kt) 55.9 68.4 69.6 65.5 47.9 47.9 55.9
- Oxide leach..................................... (kt) 21.9 28.3 29.3 26.8 15.3 15.3 21.9
- Sulphide leach.................................. (kt) 34.1 40.1 40.2 38.7 32.6 32.6 34.1
------- ------- ------- ------- ------- ------- -------
Total copper...................................... (kt) 292.9 308.7 289.7 294.0 284.6 284.6 292.9
------- ------- ------- ------- ------- ------- -------
Payable gold concentrate.......................... (troy oz) 48,801 49,209 35,990 43,422 42,332 42,332 48,801
Payable silver concentrate........................ (troy koz) 1,626 1,798 1,390 1,599 1,580 1,580 1,626
Sales
Payable copper.................................... (kt) 222.2 248.3 212.0 221.0 237.1 237.1 222.2
Copper cathode (EW)............................... (kt) 52.3 70.6 65.9 72.1 46.5 46.5 52.3
Payable gold concentrate.......................... (troy oz) 48,801 49,209 35,990 43,422 42,332 42,332 48,801
Payable silver concentrate........................ (troy koz) 1,626 1,798 1,390 1,599 1,580 1,580 1,626
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined.................................... (kt) 15,071 18,102 18,710 15,734 12,618 12,618 15,071
Ore milled........................................ (kt) 3,995 5,009 4,574 4,553 4,036 4,036 3,995
Average copper grade.............................. (%) 0.54% 0.57% 0.54% 0.60% 0.66% 0.66% 0.54%
Production
Copper cathode (EW)............................... (kt) 16.4 13.8 20.4 16.9 15.8 15.8 16.4
Sales
Copper cathode (EW)............................... (kt) 14.5 15.8 18.3 18.7 14.6 14.6 14.5
Spence
Material mined.................................... (kt) 21,040 23,132 23,304 24,082 18,260 18,260 21,040
Ore milled........................................ (kt) 5,635 5,133 5,191 2,829 4,408 4,408 5,635
Average copper grade.............................. (%) 0.95% 0.90% 0.87% 0.95% 1.10% 1.10% 0.95%
Production
Copper cathode (EW)............................... (kt) 47.5 46.2 43.9 37.6 26.7 26.7 47.5
Sales
Copper cathode (EW)............................... (kt) 46.7 44.3 44.8 41.0 24.1 24.1 46.7
--------------------------------------------------------------------------------
BHP Operational Review for 17
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%)............................. (kt) 59,299 63,224 52,872 13,975 45,458 45,458 59,299
Sulphide ore milled (100%)........................ (kt) 13,121 13,637 12,906 6,736 13,202 13,202 13,121
Average head grades
- Copper.......................................... (%) 0.99% 0.96% 0.88% 0.91% 0.94% 0.94% 0.99%
- Zinc............................................ (%) 0.80% 0.82% 1.09% 1.02% 1.30% 1.30% 0.80%
Production
Payable copper.................................... (kt) 37.6 36.2 32.9 17.8 34.6 34.6 37.6
Payable zinc...................................... (t) 20,454 22,483 31,789 13,736 34,398 34,398 20,454
Payable silver.................................... (troy koz) 1,101 1,173 1,216 626 1,326 1,326 1,101
Payable lead...................................... (t) 405 383 621 262 690 690 405
Payable molybdenum................................ (t) 405 527 491 243 284 284 405
Sales
Payable copper.................................... (kt) 33.1 43.6 30.8 18.2 33.8 33.8 33.1
Payable zinc...................................... (t) 20,196 23,808 31,007 11,680 32,769 32,769 20,196
Payable silver.................................... (troy koz) 954 1,396 815 581 1,310 1,310 954
Payable lead...................................... (t) 844 432 151 188 748 748 844
Payable molybdenum................................ (t) 173 400 531 223 392 392 173
Olympic Dam, Australia
Material mined /(1)/.............................. (kt) 2,477 2,347 1,920 1,928 2,203 2,203 2,477
Ore milled........................................ (kt) 2,200 2,153 2,178 2,416 2,443 2,443 2,200
Average copper grade.............................. (%) 2.31% 2.36% 2.31% 2.17% 2.03% 2.03% 2.31%
Average uranium grade............................. (kg/t) 0.65 0.71 0.69 0.60 0.53 0.53 0.65
Production
Copper cathode (ER and EW)........................ (kt) 35.1 50.5 38.4 47.6 51.5 51.5 35.1
Payable uranium................................... (t) 937 949 776 1,016 874 874 937
Refined gold...................................... (troy oz) 43,205 35,382 33,235 34,150 36,608 36,608 43,205
Refined silver.................................... (troy koz) 245 203 241 295 157 157 245
Sales
Copper cathode (ER and EW)........................ (kt) 32.1 49.0 41.4 48.5 49.5 49.5 32.1
Payable uranium................................... (t) 778 638 702 1,293 859 859 778
Refined gold...................................... (troy oz) 40,073 36,507 36,956 37,743 36,054 36,054 40,073
Refined silver.................................... (troy koz) 250 202 259 270 222 222 250
(1) Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Operational Review for 18
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman............................................ (kt) 16,316 15,766 16,449 17,110 16,410 16,410 16,316
Area C Joint Venture.............................. (kt) 12,620 12,727 12,179 13,973 11,889 11,889 12,620
Yandi Joint Venture............................... (kt) 17,827 14,857 17,491 19,087 17,666 17,666 17,827
Jimblebar /(1)/................................... (kt) 14,239 17,045 13,911 16,559 20,075 20,075 14,239
Wheelarra......................................... (kt) 3 -- -- -- -- -- 3
------- ------- ------- ------- ------- ------- -------
Total production.................................. (kt) 61,005 60,395 60,030 66,729 66,040 66,040 61,005
------- ------- ------- ------- ------- ------- -------
Total production (100%)........................... (kt) 69,257 68,044 68,168 75,589 74,152 74,152 69,257
------- ------- ------- ------- ------- ------- -------
Sales
Lump.............................................. (kt) 14,785 15,982 15,617 17,252 17,056 17,056 14,785
Fines............................................. (kt) 45,509 45,785 44,764 50,904 48,390 48,390 45,509
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 60,294 61,767 60,381 68,156 65,446 65,446 60,294
------- ------- ------- ------- ------- ------- -------
Total sales (100%)................................ (kt) 68,291 69,481 68,439 77,048 73,355 73,355 68,291
------- ------- ------- ------- ------- ------- -------
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production........................................ (kt) -- -- -- -- -- -- --
Sales............................................. (kt) -- -- -- -- -- -- --
(1) Mining and processing operations remain suspended following the failure of
the Fundao tailings dam and Santarem water dam on 5 November 2015.
--------------------------------------------------------------------------------
BHP Operational Review for 19
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production /(1)/
BMA
Blackwater........................................ (kt) 1,045 1,734 1,063 1,703 1,184 1,184 1,045
Goonyella......................................... (kt) 1,489 2,662 1,963 2,651 2,312 2,312 1,489
Peak Downs........................................ (kt) 1,423 1,386 1,339 1,635 1,487 1,487 1,423
Saraji............................................ (kt) 1,214 1,325 1,025 1,399 817 817 1,214
Daunia............................................ (kt) 556 579 447 588 490 490 556
Caval Ridge....................................... (kt) 1,178 1,037 1,032 1,102 1,075 1,075 1,178
------- ------- ------- ------- ------- ------- -------
Total BMA......................................... (kt) 6,905 8,723 6,869 9,078 7,365 7,365 6,905
------- ------- ------- ------- ------- ------- -------
Total BMA (100%).................................. (kt) 13,810 17,446 13,738 18,156 14,730 14,730 13,810
------- ------- ------- ------- ------- ------- -------
BHP Mitsui Coal /(2)/
South Walker Creek................................ (kt) 1,378 1,196 1,577 1,264 1,238 1,238 1,378
Poitrel........................................... (kt) 1,075 1,005 776 1,272 1,087 1,087 1,075
------- ------- ------- ------- ------- ------- -------
Total BHP Mitsui Coal............................. (kt) 2,453 2,201 2,353 2,536 2,325 2,325 2,453
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal............................. (kt) 9,358 10,924 9,222 11,614 9,690 9,690 9,358
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal (100%)...................... (kt) 16,263 19,647 16,091 20,692 17,055 17,055 16,263
------- ------- ------- ------- ------- ------- -------
Sales
BMA
Coking coal....................................... (kt) 6,558 7,179 6,417 7,547 6,187 6,187 6,558
Weak coking coal.................................. (kt) 634 971 644 1,040 977 977 634
Thermal coal...................................... (kt) 94 30 224 183 58 58 94
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 7,286 8,180 7,285 8,770 7,222 7,222 7,286
------- ------- ------- ------- ------- ------- -------
BHP Mitsui Coal /(2)/
Coking coal....................................... (kt) 741 596 667 778 671 671 741
Weak coking coal.................................. (kt) 1,832 1,504 1,691 1,756 1,545 1,545 1,832
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 2,573 2,100 2,358 2,534 2,216 2,216 2,573
------- ------- ------- ------- ------- ------- -------
Total Queensland Coal............................. (kt) 9,859 10,280 9,643 11,304 9,438 9,438 9,859
--------------------------------------------- -----------------
Total Queensland Coal (100%)...................... (kt) 17,145 18,459 16,928 20,074 16,660 16,660 17,145
------- ------- ------- ------- ------- ------- -------
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
NSW Energy Coal, Australia
Production........................................ (kt) 3,592 3,763 3,810 4,887 3,624 3,624 3,592
Sales
Export thermal coal............................... (kt) 3,075 3,952 3,403 4,871 3,168 3,168 3,075
Inland thermal coal............................... (kt) 567 -- -- -- -- -- 567
------- ------- ------- ------- ------- ------- -------
Total............................................. (kt) 3,642 3,952 3,403 4,871 3,168 3,168 3,642
------- ------- ------- ------- ------- ------- -------
Cerrejon, Colombia
Production........................................ (kt) 2,055 2,315 1,978 767 1,038 1,038 2,055
Sales thermal coal - export....................... (kt) 2,069 2,261 2,028 1,143 994 994 2,069
--------------------------------------------------------------------------------
BHP Operational Review for 20
the quarter ended 30 September 2020
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Sep Dec Mar Jun Sep Sep Sep
2019 2019 2020 2020 2020 2020 2019
------- ------- ------- ------- ------- ------- -------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate................................ (kt) 43.7 31.5 42.8 60.2 64.4 64.4 43.7
Average nickel grade.............................. (%) 18.3 17.3 15.8 16.5 15.8 15.8 18.3
Leinster
Nickel concentrate................................ (kt) 67.2 56.6 57.8 72.0 66.2 66.2 67.2
Average nickel grade.............................. (%) 10.0 8.6 9.8 10.2 9.0 9.0 10.0
Saleable production
Refined nickel /(1)(2)/........................... (kt) 17.4 11.1 16.6 20.5 17.3 17.3 17.4
Intermediates and nickel by-products /(1)(3)/..... (kt) 4.2 2.6 4.3 3.4 4.9 4.9 4.2
------- ------- ------- ------- ------- ------- -------
Total nickel /(1)/................................ (kt) 21.6 13.7 20.9 23.9 22.2 22.2 21.6
------- ------- ------- ------- ------- ------- -------
Cobalt by-products................................ (t) 211 120 132 312 238 238 211
Sales
Refined nickel /(1)(2)/........................... (kt) 17.0 10.6 16.8 19.7 17.1 17.1 17.0
Intermediates and nickel by-products /(1)(3)/..... (kt) 5.7 2.7 2.9 4.2 4.6 4.6 5.7
------- ------- ------- ------- ------- ------- -------
Total nickel /(1)/................................ (kt) 22.7 13.3 19.7 23.9 21.7 21.7 22.7
------- ------- ------- ------- ------- ------- -------
Cobalt by-products................................ (t) 212 131 132 312 238 238 212
(1) Production and sales restated to include other nickel by-products.
(2) High quality refined nickel metal, including briquettes and powder.
(3) Nickel contained in matte and by-product streams.
--------------------------------------------------------------------------------
BHP Operational Review for 21
the quarter ended 30 September 2020
Appendix 1
Project Status Update
Between November 2019 and June 2020, a 14 diamond hole follow-up program
totalling 21,542.5 metres was completed at Oak Dam, located 65 kilometres to the
south east of BHP’s operations at Olympic Dam in South Australia (Figure 1).
Figure 2 describes the location of the phase three new drilling and Figure 3
shows the new drilling on cross sections.
Laboratory assay results confirm further mineralised intercepts of copper with
associated gold, uranium and silver metals, as per the table below, with further
detail included within this appendix.
Table 1: Summary of laboratory assay results showing mineralised intercepts of
copper with associated gold, uranium and silver.
Length/(i)/ Cu Au U3O8 Ag
Hole ID From To m % g/t ppm g/t
-------------------- ------ ------ ----------- ------ ------ ----- ------
AD27W4.............. 1243 1392 149 1.30 0.62 265 4.10
including........ 1281 1299 18 2.01 0.69 318 5.11
AD29W1.............. 1734 1854 120 0.95 0.47 222 2.50
including........ 1789 1821 32 2.00 1.05 365 5.65
AD30W1.............. 1190 1502 312 2.14 0.55 390 3.14
including........ 1343 1502 159 2.57 0.69 550 3.50
AD30W3.............. 1609 1803 194 0.81 0.25 327 1.06
AD31................ 1398 1568 170 0.62 0.09 39 1.06
AD31W1.............. 1194 1252 58 0.38 0.07 25 2.44
AD31W2.............. 1140 1333 193 0.87 0.09 27 2.67
AD32................ 1529 1643 114 1.64 0.58 214 4.66
including........ 1566 1643 77 1.95 0.67 250 5.18
AD32W1.............. 1664 1733 69 1.19 0.38 143 3.14
AD32W2.............. 2008 2323 315 1.05 0.56 252 2.94
including........ 2008 2066 58 2.49 1.21 398 9.48
AD33................ 1055 1174 119 1.17 0.12 140 4.37
including........ 1056 1112 56 1.84 0.14 203 5.79
(i) Not true widths.
Geology and Mineralisation
Phase three drilling continues to confirm IOCG-style alteration and
mineralisation described previously (BHP Copper Exploration Update/(1)/ dated 27
November 2018 and BHP Operational Review dated 17 October 2019/(2)/), with a
core of barren hematite-quartz breccias approximately central to the gravity
anomaly, surrounded by high-grade chalcocite and bornite mineralisation, which
grades outwards to more dominant chalcopyrite and pyrite mineralisation, towards
the contact with the host rocks. The simplified geology is shown in three
representative cross sections in Figure 3.
Further Work
BHP continues to evaluate the results reported to date to inform the next
phase of work expected to begin in the first half of the 2021 calendar year.
----------
(1) https://www.bhp.com/media-and-insights/news-releases/2018/11/bhp-copper-exploration-program-update
(2) https://www.bhp.com/-/media/documents/media/reports-and-presentations/2019/191017_bhpoperationalreviewforthequarterended
30september2019.pdf?la=en
--------------------------------------------------------------------------------
BHP Operational Review for 22
the quarter ended 30 September 2020
Figure 1: Location map of project within EL 5941.
[GRAPHIC]
Table 2: Drill hole collar locations and depths in Geocentric Datum of Australia (GDA 94, zone 53).
Easting Northing RL Starting depth Ending depth
Hole ID Type (m) (m) (m) (m) (m)
----------------- ------------------ ------- -------- ----- -------------- ------------
AD27W4........... wedge 710821 6571048 167 552 2176.1
AD29............. parent 710694 6570517 167 0 1107.7
AD29W1........... wedge 710694 6570517 167 550 2130.9
AD30............. parent (abandoned) 710109 6571733 183 0 800.3
AD30W1........... parent (redrill) 710109 6571733 183 598 1843.1
AD30W2.......... wedge 710109 6571733 183 728 1887.6
AD30W3........... wedge 710109 6571733 183 706.5 2074.3
AD31............. parent 712168 6571875 148 0 2350.1
AD31W1........... wedge 712168 6571875 148 745 2227.3
AD31W2........... wedge 712168 6571875 148 701.3 2273.2
AD32............. parent 709850 6571142 183 0 2287.1
AD32W1........... wedge 709850 6571142 183 731.4 2503.4
AD32W2........... wedge 709850 6571142 183 700 2470.3
AD33............. parent 710650 6572596 168 0 1423.3
--------------------------------------------------------------------------------
BHP Operational Review for 23
the quarter ended 30 September 2020
Figure 2: Drill hole traces projected to surface and cross section locations displayed on high resolution ground gravity.
[GRAPHIC]
Figure 3: Representative cross-sections showing simplified geology and down hole Cu assays.
[GRAPHIC]
--------------------------------------------------------------------------------
BHP Operational Review for 24
the quarter ended 30 September 2020
Table 3: Length and density weighted mineralised intercepts for phase three
drilling reported as apparent (down hole) widths. The complete breakdown of each
reported intersection is shown and includes high and low grade intervals to
demonstrate grade. Intervals with assays not reported here have <0.2% Cu.
Reported mineralised intervals contain no more than ten consecutive meters
of <0.2% Cu.
Length Cu Au U\3\O\8\ Ag
Hole ID From To m % g/t ppm g/t SG
-------------------- --------- ------ -------- ------ ------ --------- ------ ------
AD31................ 1196 1278 82 0.50 0.06 48 1.09 2.78
1330 1358 28 0.98 0.16 53 1.38 3.10
1398 1621 223 0.54 0.08 41 0.91 2.88
1398 1568 170 0.62 0.09 39 1.06 2.90
1568 1621 53 0.32 0.05 49 0.53 2.85
1965 2073 108 0.32 0.09 189 2.98 3.21
2308 2324 16 1.15 0.12 50 1.14 2.98
--------- ------ -------- ------ ------ --------- ------ ------
AD31W1.............. 1194 1252 58 0.38 0.07 25 2.44 2.82
1194 1224 30 0.49 0.09 17 3.33 2.78
1224 1252 28 0.26 0.06 33 1.51 2.87
1278 1360 82 0.44 0.06 30 1.24 2.89
1372 1400 28 0.27 0.03 17 0.73 2.79
1410 1446 36 0.36 0.06 19 1.38 2.80
--------- ------ -------- ------ ------ --------- ------ ------
AD32................ 1529 1643 114 1.64 0.58 214 4.66 3.19
1529 1566 37 0.94 0.37 134 3.50 3.02
1566 1643 77 1.95 0.67 250 5.18 3.27
1986 2102 116 0.93 0.36 226 1.68 3.72
1986 2010 24 2.15 0.77 394 3.80 3.93
2010 2068 58 0.71 0.29 221 1.08 3.84
2068 2102 34 0.36 0.16 97 1.09 3.37
--------- ------ -------- ------ ------ --------- ------ ------
AD30W1.............. 1190 1502 312 2.14 0.55 390 3.14 3.65
1190 1328 138 1.73 0.41 196 2.94 3.35
inc. 1303 1328 25 2.44 0.77 360 4.07 3.71
1328 1343 15 0.42 0.16 141 0.17 3.01
1343 1502 159 2.57 0.69 550 3.50 3.96
inc. 1343 1398 55 4.20 0.95 622 6.22 4.27
inc. 1412 1424 12 4.06 0.55 2089 6.55 4.14
inc. 1438 1464 26 2.79 0.55 430 3.15 4.10
1568 1624 56 0.41 0.43 54 3.45 2.90
1706 1772 66 0.32 0.02 26 0.46 2.94
--------- ------ -------- ------ ------ --------- ------ ------
AD32W1.............. 1664 1733 69 1.19 0.38 143 3.14 3.02
1664 1697 33 0.88 0.46 120 2.95 3.00
1697 1719 22 1.75 0.24 187 3.74 3.05
1719 1733 14 1.01 0.39 126 2.63 3.03
1836 1851 15 1.06 0.84 422 1.08 2.95
2020 2048 28 1.63 0.19 286 2.44 3.32
inc. 2022 2037 15 2.49 0.20 233 4.36 3.21
2060 2070 10 0.50 0.13 149 0.15 3.31
2084 2297 213 0.72 0.20 108 0.95 3.24
2084 2144 60 0.41 0.16 162 0.40 3.21
2144 2297 153 0.85 0.24 115 1.39 3.25
inc. 2173 2201 28 1.48 0.34 89 3.14 3.26
2384 2419 35 0.98 0.48 196 1.56 3.58
--------- ------ -------- ------ ------ --------- ------ ------
--------------------------------------------------------------------------------
BHP Operational Review for 25
the quarter ended 30 September 2020
Length Cu Au U\3\O\8\ Ag
Hole ID From To m % g/t ppm g/t SG
-------------------- --------- ------ -------- ------ ------ --------- ------ ------
AD30W3.............. 1083 1133 50 0.61 0.01 16 2.23 2.87
1256 1278 22 0.86 0.34 71 3.29 3.12
1609 1803 194 0.81 0.25 327 1.06 3.45
1826 1849 23 0.31 0.05 39 0.12 2.79
1878 1910 32 0.63 0.27 60 1.30 2.99
--------- ------ -------- ------ ------ --------- ------ ------
AD31W2.............. 1140 1333 193 0.87 0.09 27 2.67 2.88
1364 1423 59 0.51 0.10 85 1.09 3.09
1510 1695 185 0.54 0.08 45 6.61 2.93
1844 1911 67 0.28 0.06 38 0.64 2.92
--------- ------ -------- ------ ------ --------- ------ ------
AD32W2.............. 1459 1590 131 1.33 0.48 146 4.52 3.24
1459 1552 93 1.65 0.57 206 4.83 3.32
inc. 1476 1544 68 1.81 0.60 218 4.27 3.33
inc. 1501 1544 43 2.04 0.65 247 4.79 3.38
1552 1590 38 0.50 0.17 85 2.11 3.04
1619 1704 85 1.24 0.52 264 3.46 3.06
2008 2323 315 1.05 0.56 252 2.94 3.50
2008 2066 58 2.49 1.21 398 9.48 3.82
2066 2147 81 0.99 0.43 377 2.46 3.42
2147 2323 176 0.54 0.38 141 0.76 3.42
2349 2365 16 1.12 0.34 192 2.44 3.49
--------- ------ -------- ------ ------ --------- ------ ------
AD29W1.............. 821 2025 1204 0.43 0.19 107 2.30 3.40
821 835 14 1.36 0.13 407 5.32 3.25
835 988 153 0.39 0.06 104 1.21 3.65
1010 1041 31 0.43 0.03 106 16.10 3.54
1099 1111 12 0.61 0.07 31 5.97 3.33
1378 1421 43 0.43 0.44 116 3.16 3.17
1479 1708 229 0.66 0.25 158 1.23 3.63
inc. 1663 1708 45 0.93 0.28 242 0.72 3.98
1734 1854 120 0.95 0.47 222 2.50 3.71
inc. 1789 1821 32 2.00 1.05 365 5.65 3.78
1881 1951 70 0.38 0.42 116 1.95 3.29
1979 2025 46 0.48 0.56 161 0.81 3.17
--------- ------ -------- ------ ------ --------- ------ ------
AD27W4.............. 1243 1392 149 1.30 0.62 265 4.10 3.47
1243 1262 19 1.94 0.82 242 7.89 3.69
1262 1281 19 1.03 0.51 233 2.83 3.77
1281 1299 18 2.01 0.69 318 5.11 3.64
1299 1330 31 1.57 0.49 316 5.12 3.52
1330 1392 62 0.80 0.64 239 2.34 3.25
1431 1492 61 0.67 0.32 90 2.52 3.12
1502 1581 79 0.31 0.14 59 0.75 3.22
1502 1527 25 0.45 0.24 74 1.33 3.33
1527 1581 54 0.24 0.09 52 0.46 3.16
1596 1712 116 0.45 0.36 226 2.07 3.15
1596 1667 71 0.30 0.22 102 1.30 3.09
1667 1683 16 1.12 0.67 807 4.98 3.46
1683 1712 29 0.39 0.50 171 2.16 3.12
--------- ------ -------- ------ ------ --------- ------ ------
--------------------------------------------------------------------------------
BHP Operational Review for 26
the quarter ended 30 September 2020
Length Cu Au U\3\O\8\ Ag
Hole ID From To m % g/t ppm g/t SG
-------------------- --------- ------ -------- ------ ------ --------- ------ ------
AD27W4.............. 1765 2037 272 0.82 0.24 125 1.24 3.67
1765 1921 156 0.52 0.24 125 1.24 3.47
1921 2009 88 1.35 0.68 304 3.02 4.06
2009 2037 28 0.56 0.48 171 0.74 3.52
2098 2169 71 0.43 1.10 145 1.02 3.29
--------- ------ -------- ------ ------ --------- ------ ------
AD33................ 1055 1174 119 1.17 0.12 140 4.37 3.13
1055 1112 57 1.82 0.14 201 5.76 3.10
1112 1174 62 0.58 0.14 203 5.79 3.16
1195 1205 10 0.43 0.01 132 2.54 3.20
--------- ------ -------- ------ ------ --------- ------ ------
Drilling Techniques
. All drilling was diamond drilling from surface.
. Parent holes were collared in HWT to a depth of 6m and continued in PQ
until the Tregalona Shale unit in the post mineral cover (between 100 m and
150 m downhole depth). From the Tregalona Shale, drilling continued in HQ
to the depth chosen to begin navigational drilling. Navigational drilling
was completed on the parent hole (and subsequent wedges) to setup for one
to two wedges off parents AD29, AD31, AD30 and AD32. AD27W4 was wedged off
AD27 parent hole from the previous drilling campaign. AD33 was drilled from
surface without navigational drilling.
. Directional surveys using a north-seeking gyroscope were completed on each
hole inside the NQ2 rods.
Location of data points
. All drill hole collar locations (historic and recent) have been surveyed
with Trimble R8s and manually entered into acQuire database.
. All coordinates provided are measured and provided in Geocentric Datum of
Australia 1994 (GDA94 Zone 53).
Geological Logging
. 100% of new drill holes were logged in qualitative detail for the basement
rocks.
. The following observations were recorded: lithology composition and
texture, alteration minerals and sulphide distribution.
. Structural measurements have been recorded from orientated core measuring
alpha and beta angles of structures of interest.
. Core was photographed both wet and dry.
. Geotechnical logging for rock-quality designation, micro-defects and rock
classification commenced during the phase three drilling program.
Sampling Techniques
. Sample recoveries are visually estimated to be >97%.
. Sample loss is not considered material to reported grades.
. Diamond core was split by core saw, with half the core submitted for assay
and the other half stored in trays at Olympic Dam. Samples are submitted as
1 m or 2 m intervals.
. Specific gravity measurements were taken for all assayed samples.
. 6-8 kg samples were submitted to an analytical laboratory for final drying,
staged crushing to 2 mm, splitting to approximately 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.
--------------------------------------------------------------------------------
BHP Operational Review for 27
the quarter ended 30 September 2020
Quality of assay data and laboratory tests
. All samples were submitted to Intertek/Genalysis Laboratory in Adelaide.
. All new drill holes reported here were analysed for Cu, Ag, As, Bi, Co, Zn,
Ni, Pb, Al, Ca, Cr, Fe, K, Mg, Mn, Na, P, Sc, Si, Ti, V, Ba, Mo, Sb, Sr, U,
Y, Zr, Au, S, Ce, La, using 3-acid digest, total fusion, fire assay and
induction furnace digestions followed by ICP-OES/MS or infrared methods.
. Three acid digestion followed by ICP-OES/MS was used to measure Cu, Ag, As,
Co, Zn, Ni, Pb.
. Lithium borate fusion followed by ICP-OES/MS was to measure Al, Ca, Bi, Cr,
Fe, K, Mg, Mn, Na, P, Sc, Si, Ti, V, Ba, Mo, Sb, Sr, U, Y, Zr.
. Comparative analysis between four and three acid digest methods, for a
reduced suite of thirty-three elements, demonstrates that equally accurate
and representative geochemistry and characterisation of the mineral system,
was possible compared to the four acid digest method and sixty-three
element suite, reported previously (BHP Exploration Results Update dated 27
November 2018).
. 25 g fire assay with an ICP-OES finish was used to measure Au.
. Induction furnace combustion followed by infrared analyser was used to
measure C and S.
. Quality control samples consisted of duplicates (1:25), analytical blanks
(1:50) and certified standards (1:25). QC results reviewed when results are
received, all performed within acceptable accuracy and precision limits.
Verification of sampling and assaying
. Significant intersections were validated via visual re-inspection of drill
core, followed up by optical microscopy by BHP personnel not involved with
the initial geological logging of the drill core. There has been no
adjustments to the assay data that is electronically uploaded to the
database from the commercial laboratory.
. All drill hole data is managed internally using computerised geological
logging, a comprehensive SQL server relational database, and strict
validation rules.
. The database has a security model which requires user access to have
supervisor approval. The database is backed up regularly by standard backup
procedures.
. No twinned holes have been drilled.
Sample security
. A reconciliation is completed between the sampling request and drilling
plods to ensure that any lost core is accurately recorded prior to
sampling. Sample numbers are automatically generated directly from the
database once the sampling request is visually validated against the drill
core. Laboratory sample receipt is recorded in the database. The laboratory
reconciles samples received against samples requested on the assay request
sheet.
Audits or reviews
. The drill hole database is structured and controlled in the same way as the
Olympic Dam database which has been independently audited.
Orientation of data in relation to geological structure
. Mineralisation at this stage is still not well defined as per the irregular
nature in IOCG-type deposits.
. New holes have been angled approximately northwest-southeast to east-west,
drilled from outside of the centre of the hydrothermal system, aiming to
test the eastern and western contacts with the host rock.
Data aggregation methods
. All intersections are length and density weighted represented in apparent
(downhole) widths, true widths of intersections are unknown.
. There is insufficient drilling to provide any mineral inventory estimate
(including Exploration Target).
--------------------------------------------------------------------------------
BHP Operational Review for 28
the quarter ended 30 September 2020
Mineral tenement and land tenure status
. The project is located within the Exploration Licence 5941 (EL5941), 100%
owned by BHP.
. EL5941 was successfully renewed in February 2019 within the current five
year term, which expires on 21 February 2022, when a subsequent application
will be lodged.
. EL5941 is in ‘good standing’ with recent historic minimum expenditure met
or exceeded.
Exploration done by other parties
. The project has a long exploration history, dating back to 1976 by Western
Mining Corporation and BHP.
. All drilling information prior to 2018 has not been through the same
quality control and processes described in this release and uncertainties
exist in respect to the survey (dip, azimuth).
. Historic drill holes have been re-sampled using the same methodologies and
processes as the 2018 drill holes.
'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.'
--------------------------------------------------------------------------------
BHP Operational Review for 29
the quarter ended 30 September 2020
Date: 20-10-2020 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|
