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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
Release Time IMMEDIATE
Date 21 April 2023
Release Number 9/23
BHP OPERATIONAL REVIEW
FOR THE NINE MONTHS ENDED 31 MARCH 2023
• A colleague, Jody Byrne, tragically was fatally injured in a rail incident in our Port Hedland operations in
February.
• Production guidance for the 2023 financial year remains unchanged for iron ore, metallurgical coal and
energy coal. Strong performance means Olympic Dam and Pampa Norte are expected to be toward the
upper end of their guidance ranges, while BHP Mitsubishi Alliance (BMA) is expected to be at the bottom
of its range.
• Production guidance at Escondida has been lowered to between 1,050 and 1,080 kt (from between 1,080
and 1,180 kt). Given the strong performance at the other copper assets, full year total copper production
guidance remains unchanged at between 1,635 and 1,825 kt. Full year nickel production has been lowered
to between 75 and 85 kt (from between 80 and 90 kt).
• Western Australia Iron Ore (WAIO) achieved record production of 212.6 Mt (100% basis) for the nine month
period. Pleasingly, there was no significant damage or reported injuries at our WAIO sites as a result of
Tropical Cyclone Ilsa. Our Port Hedland operations were suspended in coordination with the Pilbara Ports
Authority.
• Full year unit cost guidance1 remains unchanged from the half year period ended 31 December 2022.
Escondida and WAIO are expected to be at the top of their respective ranges.
• On 13 April 2023, shareholders of OZ Minerals Ltd (OZL) voted to approve the scheme of arrangement for
BHP to acquire 100 per cent of the shares in OZL. The Scheme became effective on 18 April 2023 and is
expected to be implemented on 2 May 2023.
• The South Australian government has granted environmental approval for the next phase of exploration
drilling at Oak Dam.
• BHP has identified a new copper porphyry mineralised system, Ocelot, in the Miami-Globe copper
district in Arizona, United States.
BHP Chief Executive Officer, Mike Henry:
“Safety is paramount, and we are deeply saddened by the tragic death of Jody Byrne in an incident at Port Hedland
in February. An investigation into the cause of the incident is underway, the findings of which will be shared widely.
“Our WA iron ore business achieved record production, and total copper output for the Group was up for the nine
months, while metallurgical coal volumes were down slightly due to significant wet weather. Overall copper production
for the year remains on track, however we’ve reduced production guidance at Escondida and also at Nickel West.
We continue to focus on safety, productivity and costs as we navigate ongoing challenges and inflationary impacts.
“Last week, OZ Minerals shareholders voted overwhelmingly in favour of BHP’s offer. We are now focused on the
safe integration of the two businesses and we look forward to building an internationally competitive copper business
in South Australia and incorporating West Musgrave into our nickel options in Western Australia. We are pursuing
growth options in copper and nickel globally – we aim to have up to 10 drill rigs on the ground at Oak Dam in South
Australia in the next few months and have seen promising results from a potential new copper prospect in Arizona.
In Canada, we signed $260 million (CAD) in new contracts with Indigenous suppliers in March, and construction of
the Jansen potash project is on track.
“Recent engagements with customers in China and India have reaffirmed our positive outlook for commodity demand,
with China’s economic rebound and solid momentum in India’s steelmaking growth helping to offset the impact of
slowing growth in the US, Japan and Europe.”
BHP Operational Review for the nine months ended 31 March 2023 1
Summary
Operational performance
Production and guidance are summarised below.
Mar YTD23 Mar Q23 Mar Q23 Previous Current
Mar Mar vs vs vs FY23 FY23
Production YTD23 Q23 Mar YTD22 Mar Q22 Dec Q22 guidance guidance
Copper (kt) 1,240.3 405.9 12% 10% (4%) 1,635 – 1,825 1,635 – 1,825 Unchanged
Escondida (kt) 762.3 251.6 7% 11% (2%) 1,080 – 1,180 1,050 – 1,080 Lowered
Pampa Norte (kt) 220.3 73.0 8% 7% (5%) 240 – 290 240 – 290 Upper end
Olympic Dam (kt) 155.8 51.7 88% 33% (5%) 195 – 215 195 – 215 Upper end
Antamina (kt) 101.9 29.6 (8%) (18%) (16%) 120 – 140 120 – 140 Unchanged
Iron ore (Mt) 191.7 59.8 1% 0% (11%) 249 – 260 249 – 260
WAIO (Mt) 188.5 58.7 1% 0% (11%) 246 – 256 246 – 256 Unchanged
WAIO (100% basis) (Mt) 212.6 66.2 1% (1%) (11%) 278 – 290 278 – 290 Unchanged
Samarco (Mt) 3.3 1.0 7% 5% (4%) 3–4 3–4 Top end
Metallurgical coal - BMA (Mt) 20.5 6.9 (2%) (13%) 0% 29 – 32 29 – 32
BMA (100% basis) (Mt) 41.1 13.9 (2%) (13%) 0% 58 – 64 58 – 64 Bottom end
Energy coal – NSWEC (Mt) 9.4 3.9 (4%) 53% 38% 13 – 15 13 – 15 Unchanged
Nickel (kt) 58.0 19.6 0% 5% 11% 80 – 90 75 – 85 Lowered
Mar YTD23 Mar Q23
Production (vs Mar YTD22) (vs Dec Q22) Mar Q23 vs Dec Q22 commentary
Copper (kt) 1,240.3 405.9 Lower concentrate volumes at Escondida reflect the impact of different ore feed
12% (4%) sources on throughput and recovery performance, and lower volumes at Olympic
Dam as a result of reduced refinery productivity following the tie-in of minor
upgrade works.
Iron ore (Mt) 191.7 59.8 Lower volumes at WAIO due to the temporary shutdown of all operations following
1% (11%) the tragic fatality in February, and the planned tie-in activity of the Port
Debottlenecking Project 1 (PDP1).
Metallurgical coal (Mt) 20.5 6.9 Production in line with the prior period despite continued significant wet weather.
(2%) 0%
Energy coal (Mt) 9.4 3.9 Higher production following improved weather, labour stability and strip ratios,
(4%) 38% and a reduced proportion of washed coal.
Nickel (kt) 58.0 19.6 Higher volumes due to planned maintenance at the smelter and refinery in the
0% 11% prior quarter and increased purchases of third party products.
Corporate update
Portfolio
In February, BHP issued US$2.75 billion in senior unsecured bonds in the US market comprising: US$1.0 billion in
three-year bonds; US$1.0 billion in five-year bonds; and US$0.75 billion in 10-year bonds with the proceeds intended
for general corporate purposes.
On 13 April, BHP announced that OZ Minerals Ltd (OZL) shareholders approved the scheme of arrangement for
BHP to acquire 100 per cent of the shares in OZL (the Scheme). The Scheme became effective on 18 April 2023 and
is expected to be implemented on 2 May 2023. Once effective, the acquisition of OZL and its assets will provide BHP
with further exposure to copper, nickel and uranium. OZL’s shareholders will be paid total cash consideration of
A$28.25 per OZL share, comprising the scheme consideration paid by BHP of A$26.50 for each OZL share held at
the scheme record date, which is 24 April 2023, and a fully franked special dividend paid by OZL of A$1.75 for each
OZL share held on the special dividend record date, which is 21 April 2023. The cash payment by BHP will be funded
using a combination of BHP’s existing cash reserves and the proceeds of a debt facility.
BHP Operational Review for the nine months ended 31 March 2023 2
Decarbonisation
Throughout the March 2023 quarter we continued to make progress towards our decarbonisation targets and goals
and supported efforts to reduce greenhouse gas (GHG) emissions across our value chain. For example:
• BHP signed an agreement with Hatch to design an electric smelting furnace (ESF) pilot plant to demonstrate a
pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from our WAIO
mines. Estimates show that reductions of more than 80 per cent in CO2 emissions intensity are potentially
achievable processing Pilbara iron ores through a Direct Reduced Iron (DRI)-ESF pathway, compared to the
current industry average using the conventional blast furnace route.
• BHP expanded its Memorandum of Understanding (MoU) with China's HBIS Group, one of the world’s largest
steelmakers and a major iron ore customer of BHP, to incorporate a pilot of carbon capture and utilisation
technology at HBIS’s steel operations in China.
• BHP announced the trial of Hydrotreated Vegetable Oil (HVO) to power haul trucks and other mining equipment
over an initial three-month trial period at the Yandi iron ore operations in Western Australia in collaboration with
BP. The HVO has internationally recognised certification as being sourced from more sustainable feedstocks
such as waste products.
Copper
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
Copper (kt) 1,240.3 405.9 12% 10% (4%)
Zinc (t) 86,226 23,612 (10%) (28%) (21%)
Uranium (t) 2,593 833 62% 7% (12%)
Copper – Total copper production increased by 12 per cent to 1,240 kt. Guidance for the 2023 financial year remains
unchanged at between 1,635 and 1,825 kt.
Escondida copper production increased by seven per cent to 762 kt primarily due to higher concentrator feed grade
of 0.79 per cent, compared to 0.74 per cent in the nine months to March 2022. The positive impact of higher grade
was partially offset by the impact of road blockades across Chile in the December 2022 quarter, which reduced
availability of some key mine supplies. Full year production has been lowered to between 1,050 and 1,080 kt (from
between 1,080 and 1,180 kt) as we manage geotechnical risk in a high grade section of the Escondida pit. This has
led to a resequencing of the mine plan, resulting in lower volumes of mined ore and increased processing of lower
grade stockpiles through the concentrators. Concentrator feed grade is expected to improve in the June 2023 quarter,
compared to the nine months ended March 2023. Medium term guidance of 1.2 Mtpa of copper production on average
over the next five years remains unchanged.
Pampa Norte copper production increased by eight per cent to 220 kt as a result of higher concentrator throughput
at the Spence Growth Option (SGO). Full year production is expected to be towards the upper end of the guidance
range of between 240 and 290 kt. The SGO plant modifications which commenced in August 2022 are planned to
be completed in the 2023 calendar year. Expected capital expenditure for the works remains unchanged at
approximately US$100 million. Further studies are ongoing for additional capacity uplift at SGO. Cerro Colorado
continues to transition towards planned closure at the end of the 2023 calendar year.
Olympic Dam copper production of 156 kt was an increase of 88 per cent on the prior period, primarily as a result of
the major smelter maintenance campaign (SCM21) across the December 2021 and March 2022 quarters. Continued
strong concentrator and smelter performance has delivered record concentrate smelted for the nine month period.
The March 2023 quarter was also a record gold production quarter, contributing to a record nine months for both gold
and silver production following the implementation of debottlenecking initiatives in the prior year. Copper production
is expected to be towards the upper end of the guidance range for the 2023 financial year at between 195 and 215 kt.
Antamina copper production decreased by eight per cent to 102 kt reflecting expected lower copper feed grades,
partially offset by higher throughput. Zinc production was 10 per cent lower at 86 kt reflecting expected lower zinc
feed grades, partially offset by higher throughput. Production guidance remains unchanged for the 2023 financial year,
with copper production of between 120 and 140 kt, and zinc production of between 115 and 135 kt.
BHP Operational Review for the nine months ended 31 March 2023 3
Iron ore
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
Iron ore production (kt) 191,748 59,773 1% 0% (11%)
Iron ore – Total iron ore production increased by one per cent to 192 Mt. Guidance for the 2023 financial year
remains unchanged at between 249 and 260 Mt.
WAIO production increased by one per cent to a nine month record of 188 Mt (213 Mt on a 100 per cent basis),
reflecting continued strong supply chain performance, including improved car dumper utilisation and lower COVID-19
related impacts than the prior period. This was partially offset by a 24 hour safety stop across the WAIO business
and a further two day suspension of rail operations following the tragic fatality, and the planned tie-in of PDP1, which
remains on track to be completed in the 2024 calendar year.
The production ramp up at South Flank remains on track to reach full capacity of 80 Mtpa (100 per cent basis) by the
end of the 2024 financial year. Current year performance has contributed to record year to date WAIO lump sales.
Additionally, the deployment of autonomous haul trucks is well progressed and is expected to be completed by the
end of the 2023 calendar year.
WAIO production guidance for the 2023 financial year remains unchanged at between 246 and 256 Mt (278 and
290 Mt on a 100 per cent basis). There has been no significant damage or reported injuries at our WAIO sites as a
result of Tropical Cyclone Ilsa in April 2023. Our Port Hedland operations were suspended in coordination with the
Pilbara Ports Authority, but have since ramped up to full capacity. Full year unit cost guidance at WAIO of between $18
and $19 per tonne is expected to be at the top of the range.
Samarco production increased by seven per cent to 3.3 Mt (BHP share), reflecting strong concentrator performance.
Production for the 2023 financial year is expected to be at the top of the guidance range of between 3 and 4 Mt (BHP
share).
In late March, the Fourth Federal Court in Brazil ordered BHP Brasil and Vale to deposit a total of BRL 10.3 billion
(approximately US$1.0 billion, BHP Brasil share) in 10 instalments to be paid every 40 days, with the first instalment
due on 20 May. The decision relates to a dispute as to whether certain territories in the State of Espírito Santo were
affected by the dam failure. The Fourth Federal Court ordered that the deposit be paid to ensure that funds are
available if required for reparation in those territories. BHP Brasil has appealed the decision.
The Group’s provisions related to the Samarco dam failure and Germano dam decommissioning are subject to
ongoing assessment and totalled US$3.3 billion as at 31 December 2022, including an expected cash outlay for the
2023 calendar year of US$1.95 billion.
There are a number of matters related to the Samarco dam failure which are disclosed as contingent liabilities and
given the status of proceedings it is not possible to provide a range of possible outcomes or a reliable estimate of
potential future exposures for BHP. Please refer to the financial results for the period ending 31 December 2022 for
further information.
BHP Operational Review for the nine months ended 31 March 2023 4
Coal
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
Metallurgical coal (kt) 20,543 6,929 (2%) (13%) 0%
Energy coal (kt) 9,408 3,934 (4%) 53% 38%
Metallurgical coal – BMA production decreased by two per cent to 21 Mt (41 Mt on a 100 per cent basis) as a result
of significant wet weather. This was partially offset by continued improvement in underlying truck productivity, in
particular at Goonyella and Daunia following the completion of their autonomous fleet transitions, as well as reduced
COVID-19 related labour constraints. In the nine months to March 2023, BMA has experienced the highest level of
rainfall in the past 10 years, significantly impacting production.2
Full year production is expected to be at the bottom of the guidance range of between 29 and 32 Mt (58 and 64 Mt on
a 100 per cent basis), with further wet weather in the June 2023 quarter posing a risk to this outcome. The additional
long wall move at Broadmeadow noted in the December 2022 Operational Review is planned to commence in
June 2023.
While we will continue to sustain and optimise our existing assets, BMA is not making significant new investments in
Queensland given the changes to the royalty regime imposed by the current government which have increased risk and
reduced competitiveness of investments in the State.
Energy coal – New South Wales Energy Coal (NSWEC) production decreased by four per cent to 9 Mt reflecting
the impacts of the wet weather experienced in the December 2022 half, and the increased proportion of washed coal.
This was partially offset by improved stability in labour, particularly reduced absenteeism which impacted stripping
performance and mine productivity in the prior period. Higher quality products made up approximately 85 per cent of
sales, compared to approximately 90 per cent in the prior period. Production guidance for the 2023 financial year
remains unchanged at between 13 and 15 Mt.
Following the NSW Government Directions to local thermal coal producers, NSWEC has started delivering their
domestic allocation of 0.175 Mt per quarter from April 2023. The full allocation for the June 2023 quarter has been
sold at 100 per cent of the current price cap of A$125 per tonne. The reservation allocation for the 2024 financial
year is expected to be 0.7 Mt in line with the Directions.
Other
Nickel production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
Nickel (kt) 58.0 19.6 0% 5% 11%
Nickel – Nickel West production was in line with the prior period at 58 kt, with the ramp up of the refinery following
planned maintenance in the December 2022 quarter offset by the increased proportion of concentrate and matte
products.
In March, Nickel West advised one of its third party product providers, Mincor Resources, that it will no longer accept
off-specification product containing high levels of arsenic due to the issues with processing this ore. Further, a heavy
rain event was experienced at the Mt Keith operations in early April 2023 impacting mine progression. As a result,
production guidance for the 2023 financial year has been revised to between 75 and 85 kt (from between 80 and
90 kt).
BHP Operational Review for the nine months ended 31 March 2023 5
Potash – Our major potash project under development at Jansen is tracking to plan. In the March 2023 quarter, we
commenced blasting and excavation work at the bottom of the shafts. For the remainder of the 2023 financial year,
we will continue to focus on civil and mechanical construction on the surface and underground, as well as equipment
procurement and port construction. The feasibility study for Jansen Stage 2 continues to progress and is on track to
be completed during the 2024 financial year.
Projects
Project and Capital Initial Capacity Progress
ownership expenditure production
US$M target date
Jansen Stage 1 5,723 End-CY26 Design, engineering and construction of an Project is 20% complete
(Canada) underground potash mine and surface
100% infrastructure, with capacity to produce 4.35 Mtpa.
Minerals exploration
Minerals exploration expenditure for the nine months to 31 March 2023 was US$239 million, of which US$196 million
was expensed.
BHP has identified a new copper porphyry mineralised system, Ocelot, located 140 km east of Phoenix, Arizona,
United States in the Miami-Globe copper district. From 2019 to present, BHP has drilled 12 holes in the project area,
totalling 17,748 metres with 10 holes intersecting porphyry copper style mineralisation. Ten of the holes resulted in
12 intervals of significant intercepts with laboratory assay results average copper grades ranging from 0.44 to 0.92
per cent copper. The project remains at an early exploration stage with two holes to be completed from the current
exploration drill program and is expected to be completed by May 2023. For further details refer to Appendix 1.
At Oak Dam in South Australia we continue to work in close partnership with traditional owners, and the South
Australian government have recently granted environmental approval for the next phase of exploration drilling. The
approval permits up to 14 drill rigs, more than double the current approval, an accommodation camp for up to 150
people and core processing facilities. We currently operate 6 drills rigs in the area and expect to increase this to 10
drill rigs by the end of the September 2023 quarter.
Following the execution of the Option Agreement with Mundoro Capital in January 2023, covering three exploration
projects in Serbia (Trstenik, Borsko and South Timok), Mundoro has commenced initial drilling on the Borsko project.
The inaugural BHP Xplor accelerator program, supporting early-stage mineral exploration companies to find critical
resources, such as copper and nickel, is now underway. Seven companies were selected into the program, which
offers participants in-kind services, mentorship and networking opportunities.
Elsewhere, we continue to progress exploration activities in Canada, Chile, Ecuador, and Peru.
Variance analysis relates to the relative performance of BHP and/or its operations during the nine months ended March 2023 compared with the nine months ended
March 2022, 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.
The following footnotes apply to this Operational Review:
1 2023 financial year unit cost guidance: Escondida US$1.25-1.45/lb, WAIO US$18-19/t, BMA US$100-105/t and NSWEC US$84-91/t; based on exchange rates
of AUD/USD 0.72 and USD/CLP 830.
2 767mm of rainfall recorded at Moranbah in the nine months ended 31 March 2023 compared to 498mm in the nine months ended 31 March 2022. The first nine
months of financial year 2023 are the wettest in the last ten years, and the fifth wettest in the last fifty years.
The following abbreviations may have been used throughout this report: 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); megawatt (MW); metre (m); millimetre (mm); million tonnes (Mt); million tonnes per
annum (Mtpa); ounces (oz); pounds (lb); thousand ounces (koz); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes
(t); and wet metric tonnes (wmt).
In this release, the terms ‘BHP’, the ‘Group’, ‘BHP Group’, ‘we’, ‘us’, ‘our’ and ‘ourselves’ are used to refer to BHP Group Limited and, except where the context
otherwise requires, our subsidiaries. Refer to note 28 ‘Subsidiaries’ of the Financial Statements in BHP’s 30 June 2022 Appendix 4E 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, 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 the nine months ended 31 March 2023 6
Further information on BHP can be found at: bhp.com
Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
Australia and Asia Australia and Asia
Gabrielle Notley John-Paul Santamaria
Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Mobile: +61 499 006 018
Europe, Middle East and Africa Europe, Middle East and Africa
Neil Burrows James Bell
Tel: +44 20 7802 7484 Mobile: +44 7786 661 683 Tel: +44 20 7802 7144 Mobile: +44 7961 636 432
Americas Americas
Renata Fernandez Monica Nettleton
Mobile: +56 9 8229 5357 Mobile: +1 416 518 6293
BHP Group Limited ABN 49 004 028 077
LEI WZE1WSENV6JSZFK0JC28
Registered in Australia
Registered Office: Level 18, 171 Collins Street
Melbourne Victoria 3000 Australia
Tel +61 1300 55 4757 Fax +61 3 9609 3015
BHP Group is headquartered in Australia
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BHP Operational Review for the nine months ended 31 March 2023 7
Production summary
Quarter ended Year to date
BHP Mar Jun Sep Dec Mar Mar Mar
interest 2022 2022 2022 2022 2023 2023 2022
Mar-22 Jun-22 Sep-22 Dec-22 Mar-23
Copper 1
Copper
Payable metal in concentrate (kt)
Escondida 2 57.5% 178.2 233.5 203.1 208.3 200.8 612.2 569.1
Pampa Norte 3 100.0% 32.4 28.2 28.6 32.5 32.0 93.1 83.0
Antamina 33.8% 36.1 39.6 37.1 35.2 29.6 101.9 110.3
Total 246.7 301.3 268.8 276.0 262.4 807.2 762.4
Cathode (kt)
Escondida 2 57.5% 48.2 55.8 49.6 49.7 50.8 150.1 145.6
Pampa Norte 3 100% 35.8 49.0 42.0 44.2 41.0 127.2 121.0
Olympic Dam 100% 39.0 55.7 49.7 54.4 51.7 155.8 82.7
Total 123.0 160.5 141.3 148.3 143.5 433.1 349.3
Total copper (kt) 369.7 461.8 410.1 424.3 405.9 1,240.3 1,111.7
Lead
Payable metal in concentrate (t)
Antamina 33.8% 282 181 228 114 169 511 937
Total 282 181 228 114 169 511 937
Zinc
Payable metal in concentrate (t)
Antamina 33.8% 32,732 27,576 32,685 29,929 23,612 86,226 95,624
Total 32,732 27,576 32,685 29,929 23,612 86,226 95,624
Gold
Payable metal in concentrate (troy oz)
Escondida 2 57.5% 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Pampa Norte 3 100% 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Olympic Dam (refined gold) 100% 29,355 26,080 47,184 43,280 49,086 139,550 93,437
Total 73,587 80,048 90,941 95,557 106,192 292,690 235,311
Silver
Payable metal in concentrate (troy koz)
Escondida 2 57.5% 1,270 1,311 1,210 1,510 1,346 4,066 4,023
Pampa Norte 3 100% 261 262 252 245 409 906 749
Antamina 33.8% 1,191 1,212 1,190 923 801 2,914 3,866
Olympic Dam (refined silver) 100% 149 145 295 261 277 833 598
Total 2,871 2,930 2,947 2,939 2,833 8,719 9,236
Uranium
Payable metal in concentrate (t)
Olympic Dam 100% 781 776 817 943 833 2,593 1,599
Total 781 776 817 943 833 2,593 1,599
Molybdenum
Payable metal in concentrate (t)
Pampa Norte 3 100% - 71 34 216 407 657 -
Antamina 33.8% 190 249 262 348 229 839 549
Total 190 320 296 564 636 1,496 549
BHP Operational Review for the nine months ended 31 March 2023 8
Production summary
Quarter ended Year to date
BHP Mar Jun Sep Dec Mar Mar Mar
interest 2022 2022 2022 2022 2023 2023 2022
Iron Ore
Iron Ore
Production (kt) 4
Newman 85% 11,940 14,063 14,053 16,172 11,925 42,150 42,978
Area C Joint Venture 85% 24,888 27,685 26,971 26,302 25,284 78,557 66,746
Yandi Joint Venture 85% 8,418 6,409 5,497 5,613 4,941 16,051 32,513
Jimblebar 5 85% 13,444 15,005 17,404 17,720 16,575 51,699 43,777
Samarco 50% 994 1,000 1,148 1,095 1,048 3,291 3,071
Total 59,684 64,162 65,073 66,902 59,773 191,748 189,085
Coal
Metallurgical coal
Production (kt) 6
BHP Mitsubishi Alliance (BMA) 50% 7,944 8,183 6,662 6,952 6,929 20,543 20,959
Total 7,944 8,183 6,662 6,952 6,929 20,543 20,959
Energy coal
Production (kt)
NSW Energy Coal 100% 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Total 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Other
Nickel
Saleable production (kt)
Nickel West 100% 18.7 18.8 20.7 17.7 19.6 58.0 58.0
Total 18.7 18.8 20.7 17.7 19.6 58.0 58.0
Cobalt
Saleable production (t)
Nickel West 100% 125 110 238 93 175 506 522
Total 125 110 238 93 175 506 522
1 Metal production is reported on the basis of payable metal.
2 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
3 Includes Cerro Colorado and Spence.
4 Iron ore production is reported on a wet tonnes basis.
5 Shown on a 100% basis. BHP interest in saleable production is 85%.
6 Metallurgical coal production is reported on the basis of saleable product. Production figures may include some thermal coal.
Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.
BHP Operational Review for the nine months ended 31 March 2023 9
Production and sales report
Quarter ended Year to date
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile 1
Material mined (kt) 107,676 115,409 110,248 101,987 106,170 318,405 338,834
Concentrator throughput (kt) 30,235 34,318 32,894 33,911 33,309 100,114 99,550
Average copper grade - concentrator (%) 0.80% 0.88% 0.83% 0.76% 0.78% 0.79% 0.74%
Production ex mill (kt) 191.5 239.5 214.6 212.8 210.0 637.4 596.3
Production
Payable copper (kt) 178.2 233.5 203.1 208.3 200.8 612.2 569.1
Copper cathode (EW) (kt) 48.2 55.8 49.6 49.7 50.8 150.1 145.6
- Oxide leach (kt) 12.2 17.5 15.2 17.6 14.7 47.5 40.1
- Sulphide leach (kt) 36.0 38.3 34.4 32.1 36.1 102.6 105.5
Total copper (kt) 226.4 289.3 252.7 258.0 251.6 762.3 714.7
Payable gold concentrate (troy oz) 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Payable silver concentrate (troy koz) 1,270 1,311 1,210 1,510 1,346 4,066 4,023
Sales
Payable copper (kt) 177.0 230.4 196.7 216.0 197.3 610.0 567.7
Copper cathode (EW) (kt) 47.2 58.9 45.9 53.5 43.8 143.2 143.6
Payable gold concentrate (troy oz) 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Payable silver concentrate (troy koz) 1,270 1,311 1,210 1,510 1,346 4,066 4,023
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 3,516 3,604 3,179 583 172 3,934 13,676
Ore stacked (kt) 3,181 4,259 4,373 4,119 3,567 12,059 10,776
Average copper grade - stacked (%) 0.53% 0.55% 0.54% 0.56% 0.57% 0.56% 0.59%
Production
Copper cathode (EW) (kt) 11.6 14.7 12.8 12.2 12.0 37.0 40.3
Sales
Copper cathode (EW) (kt) 10.5 16.2 13.3 12.2 10.9 36.4 38.6
Spence
Material mined (kt) 24,040 26,749 26,956 26,980 24,858 78,794 69,219
Ore stacked (kt) 5,055 5,099 5,577 5,155 4,947 15,679 15,384
Average copper grade - stacked (%) 0.67% 0.66% 0.70% 0.66% 0.64% 0.67% 0.66%
Concentrator throughput (kt) 6,512 6,311 6,433 7,602 7,290 21,325 18,532
Average copper grade - concentrator (%) 0.65% 0.66% 0.63% 0.60% 0.61% 0.61% 0.63%
Production
Payable copper (kt) 32.4 28.2 28.6 32.5 32.0 93.1 83.0
Copper cathode (EW) (kt) 24.2 34.3 29.2 32.0 29.0 90.2 80.7
Total copper (kt) 56.6 62.5 57.8 64.5 61.0 183.3 163.7
Payable gold concentrate (troy oz) 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Payable silver concentrate (troy koz) 261 262 252 245 409 906 749
Payable molybdenum (t) - 71 34 216 407 657 -
Sales
Payable copper (kt) 28.1 28.1 26.0 22.0 39.6 87.6 81.4
Copper cathode (EW) (kt) 20.2 35.4 29.1 33.4 25.1 87.6 79.1
Payable gold concentrate (troy oz) 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Payable silver concentrate (troy koz) 261 262 252 245 409 906 749
Payable molybdenum (t) - 25 25 216 492 733 -
BHP Operational Review for the nine months ended 31 March 2023 10
Production and sales report
Quarter ended Year to date
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2022 2022 2022 2022 2023 2023 2022
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 58,118 64,026 63,865 68,750 57,939 190,554 182,878
Concentrator throughput (100%) (kt) 13,135 13,131 13,858 14,272 12,349 40,479 39,365
Average head grades
- Copper (%) 0.94% 1.02% 0.93% 0.86% 0.88% 0.89% 0.97%
- Zinc (%) 1.13% 1.05% 1.09% 0.99% 1.06% 1.05% 1.13%
Production
Payable copper (kt) 36.1 39.6 37.1 35.2 29.6 101.9 110.3
Payable zinc (t) 32,732 27,576 32,685 29,929 23,612 86,226 95,624
Payable silver (troy koz) 1,191 1,212 1,190 923 801 2,914 3,866
Payable lead (t) 282 181 228 114 169 511 937
Payable molybdenum (t) 190 249 262 348 229 839 549
Sales
Payable copper (kt) 32.9 40.7 37.6 34.7 32.4 104.7 107.5
Payable zinc (t) 29,920 30,847 33,820 29,127 25,851 88,798 95,068
Payable silver (troy koz) 1,078 1,230 1,015 850 768 2,633 3,586
Payable lead (t) 269 363 130 91 181 402 845
Payable molybdenum (t) 199 205 250 298 297 845 455
Olympic Dam, Australia
Material mined 1 (kt) 2,424 2,477 2,412 2,264 2,317 6,993 6,357
Ore milled (kt) 2,122 2,436 2,570 2,687 2,433 7,690 5,251
Average copper grade (%) 2.21% 2.15% 2.13% 2.08% 1.95% 2.06% 2.13%
Average uranium grade (kg/t) 0.62 0.56 0.58 0.58 0.59 0.58 0.58
Production
Copper cathode (ER and EW) (kt) 39.0 55.7 49.7 54.4 51.7 155.8 82.7
Payable uranium (t) 781 776 817 943 833 2,593 1,599
Refined gold (troy oz) 29,355 26,080 47,184 43,280 49,086 139,550 93,437
Refined silver (troy koz) 149 145 295 261 277 833 598
Sales
Copper cathode (ER and EW) (kt) 36.3 55.8 45.9 56.8 50.5 153.2 83.3
Payable uranium (t) 236 1,031 272 1,127 683 2,082 1,313
Refined gold (troy oz) 30,935 24,622 49,542 41,900 47,300 138,742 94,357
Refined silver (troy koz) 182 87 320 233 307 860 598
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
BHP Operational Review for the nine months ended 31 March 2023 11
Production and sales report
Quarter ended Year to date
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2022 2022 2022 2022 2023 2023 2022
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia Iron Ore, Australia
Production
Newman (kt) 11,940 14,063 14,053 16,172 11,925 42,150 42,978
Area C Joint Venture (kt) 24,888 27,685 26,971 26,302 25,284 78,557 66,746
Yandi Joint Venture (kt) 8,418 6,409 5,497 5,613 4,941 16,051 32,513
Jimblebar 1 (kt) 13,444 15,005 17,404 17,720 16,575 51,699 43,777
Total production (kt) 58,690 63,162 63,925 65,807 58,725 188,457 186,014
Total production (100%) (kt) 66,674 71,660 72,135 74,292 66,163 212,590 211,113
Sales
Lump (kt) 16,966 20,006 19,561 20,375 18,021 57,957 52,339
Fines (kt) 42,187 44,308 42,696 44,121 41,183 128,000 134,035
Total (kt) 59,153 64,314 62,257 64,496 59,204 185,957 186,374
Total sales (100%) (kt) 67,110 72,796 70,276 72,688 66,580 209,544 211,147
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
Production (kt) 994 1,000 1,148 1,095 1,048 3,291 3,071
Sales (kt) 943 991 1,146 1,097 1,111 3,354 3,004
BHP Operational Review for the nine months ended 31 March 2023 12
Production and sales report
Quarter ended Year to date
Mar Jun Sep Dec Mar Mar Mar
2022 2022 2022 2022 2023 2023 2022
Coal
Coal production is reported on the basis of saleable product.
BHP Mitsubishi Alliance (BMA), Australia
Production 1
Blackwater (kt) 1,478 1,751 1,283 1,160 1,107 3,550 4,083
Goonyella (kt) 2,336 2,429 1,780 1,997 2,185 5,962 5,931
Peak Downs (kt) 1,395 1,366 1,325 1,480 1,251 4,056 3,578
Saraji (kt) 1,366 1,168 1,020 1,243 1,007 3,270 3,446
Daunia (kt) 338 472 324 441 607 1,372 1,019
Caval Ridge (kt) 1,031 997 930 631 772 2,333 2,902
Total production (kt) 7,944 8,183 6,662 6,952 6,929 20,543 20,959
Total production (100%) (kt) 15,888 16,366 13,324 13,904 13,858 41,086 41,918
Sales
Coking coal (kt) 6,334 6,734 5,615 5,872 5,372 16,859 16,624
Weak coking coal (kt) 805 1,118 600 727 710 2,037 2,293
Thermal coal (kt) 484 765 267 428 104 799 1,515
Total sales (kt) 7,623 8,617 6,482 7,027 6,186 19,695 20,432
Total sales (100%) (kt) 15,246 17,234 12,964 14,054 12,372 39,390 40,864
1 Production figures include some thermal coal.
NSW Energy Coal, Australia
Production (kt) 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Sales - export (kt) 2,703 3,923 2,441 2,862 3,667 8,970 10,201
BHP Operational Review for the nine months ended 31 March 2023 13
Production and sales report
Quarter ended Year to date
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2022 2022 2022 2022 2023 2023 2022
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 47.1 48.0 42.6 39.6 38.8 121.0 147.8
Average nickel grade (%) 14.4 16.1 17.0 15.5 16.5 16.3 14.1
Leinster
Nickel concentrate (kt) 78.0 76.0 66.8 47.9 68.4 183.1 229.2
Average nickel grade (%) 8.9 10.3 9.9 9.4 8.6 9.3 9.0
Saleable production
Refined nickel 1 (kt) 13.3 11.7 17.5 10.8 13.2 41.5 45.9
Nickel sulphate 2 (kt) 0.7 0.5 1.2 0.4 0.9 2.5 1.1
3
Intermediates and nickel by-products (kt) 4.7 6.6 2.0 6.5 5.5 14.0 11.0
Total nickel (kt) 18.7 18.8 20.7 17.7 19.6 58.0 58.0
Cobalt by-products (t) 125 110 238 93 175 506 522
Sales
Refined nickel 1 (kt) 15.3 11.7 18.1 10.2 13.0 41.3 46.0
Nickel sulphate 2 (kt) 0.7 0.5 0.8 0.5 0.9 2.2 0.8
3
Intermediates and nickel by-products (kt) 2.7 6.4 1.8 7.7 5.7 15.2 9.7
Total nickel (kt) 18.7 18.6 20.7 18.4 19.6 58.7 56.5
Cobalt by-products (t) 125 110 238 93 175 506 522
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.
BHP Operational Review for the nine months ended 31 March 2023 14
Appendix 1: BHP Copper Exploration Ocelot
Project summary
The Ocelot project is located 140 kilometres east of Phoenix, Arizona in the prolific Miami-Globe copper district
(Figure 1). The project area has a long exploration history with exploratory work by BHP commencing in 2011,
including ground geophysical surveys and drilling campaigns.
BHP completed drill programs at Ocelot between January 2019 and December 2022, which consisted of 12 broad-
spaced diamond drill holes to test the lateral extents, depth, and variability of mineralisation (Figure 2) of 18 km in
drilling. The drill program, in conjunction with regional structural mapping and data integration has led to a follow-up
drill program that is expected to be completed by May 2023.
Figure 1: Regional geology of the Globe-Miami District showing known porphyry copper deposits and the Ocelot project.
Geology and mineralisation
Ocelot has a similar regional setting to the Resolution deposit, which is approximately 32 km to the southwest, and
is located in the Globe-Miami mining district, known to host a cluster of Laramide-age porphyry copper deposits
including Miami-Inspiration, Pinto Valley and Copper Cities.
Mineralisation occurs under approximately 700 m of post-mineral cover and adjacent to the historic Old Dominion
mine, which was primarily focused on high-grade mineralisation of the Old Dominion vein system and ceased
production in 1931.
This drilling has intersected Laramide porphyry style alteration and mineralisation related to the Schultze Granite
intrusive complex. The main copper sulphide species are chalcopyrite and bornite, with lesser chalcocite. The copper
sulphides occur disseminated and vein-hosted, favouring permeable and chemically reactive host lithologies
including Dripping Spring Quartzite, Pioneer Formation, and Proterozoic diabase. Assay results of significant
intercepts are presented in Table 1 with a simplified geological cross section in Figure 3.
Further details relating to the drilling program are included within this appendix.
BHP Operational Review for the nine months ended 31 March 2023 15
Table 1: Significant copper intercepts at Project Ocelot
Hole ID From To Length1 Copper
(m) (m) (m) %
OCLT1902D 838 1,197 359 0.60
OCLT1903D 714 816 102 0.92
OCLT1903D 844 923 79 0.60
OCLT1903D 978 1,112 134 0.44
OCLT2104D 936 1,212 276 0.63
OCLT2105D 786 1,083 297 0.65
OCLT2106D 992 1,226 234 0.73
OCLT2107D 1,200 1,390 190 0.47
OCLT2209D 1,379 1,464 85 0.71
OCLT2210D 921 1,196 275 0.59
OCLT2211D 787 1,289 502 0.80
OCLT2212D 1,165 1,377 192 0.80
1. Downhole intercept lengths, true widths not known.
Further work
BHP’s Metals Exploration team is currently completing a follow-up drilling program, to test the presence and continuity
of a high-grade core of the mineralisation and BHP will continue to evaluate the results as the program progresses.
Additional work also includes the interpretation and modeling of a recently completed passive seismic, and borehole
electromagnetic (EM) surveys. This will be integrated into the structural interpretation and geologic modelling.
BHP Operational Review for the nine months ended 31 March 2023 16
Figure 2: Plan of the Ocelot project area showing drill hole collar locations and section A - A’.
Figure 3: Section A – A’ (using a 150m projection from section line as seen in Figure 2) looking northwest.
Downhole traces showing copper grade for drill holes OCLT2107D, OCLT2105D, OCLT2104D and
OCLT1901D.
BHP Operational Review for the nine months ended 31 March 2023 17
Table 2: Drill hole collar locations and depths in World Geodetic System 1984 (WGS84 UTMZ12N)
Hole ID Drill Hole Type Easting Northing RL Azimuth Dip Total Depth
(m) (m) (m) (m)
OD108 Historic1 519301 3696597 1,070 360 -90 909.8
1
OD109 Historic 519064 3696453 1,085 360 -90 917.6
1
OD-13-1 Historic 519505 3696448 1,082 120 -88 1,044.3
1
OD-13-2 Historic 519204 3696998 1,073 92 -89 1,059.2
OCLT1901D DD 518857 3697648 1,072 178 -80 1,477.9
OCLT1902D DD 518286 3696293 1,131 41 -85 1,517.5
OCLT1903D DD 518779 3696813 1,104 135 -85 1,326.2
OCLT2104D DD 517943 3696902 1,133 245 -85 1,271.5
OCLT2105D DD 517972 3696564 1,104 190 -80 1,036.6
OCLT2106D DD 517908 3696050 1,122 0 -85 1,364.9
OCLT2107D DD 517242 3696368 1,031 355 -85 1,389.9
OCLT2108D DD 516531 3698255 1,100 175 -85 1,440.8
OCLT2209D DD 517996 3695796 1,144 185 -80 1,517.0
OCLT2210D DD 518184 3696067 1,134 0 -85 1,324.7
OCLT2211D ...
