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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 20 July 2023
Release Number 13/23
BHP OPERATIONAL REVIEW
FOR THE YEAR ENDED 30 JUNE 2023
• There were two fatalities during the financial year. We are committed to sharing the learnings from
these tragic events and remain resolute in our commitment to eliminating fatalities and serious injuries
at BHP.
• Full year production guidance was achieved for copper, iron ore, metallurgical coal and energy coal.
Nickel achieved revised guidance and finished in line with the lower end of original guidance.
• Annual production records at Western Australia Iron Ore (WAIO) of 285 Mt (100% basis), Spence of 240 kt,
and Olympic Dam for both copper of 212 kt and refined gold of 186 troy koz.
• Full year unit cost guidance1 is expected to be achieved at Escondida, WAIO and New South Wales
Energy Coal (NSWEC). BHP Mitsubishi Alliance (BMA) is expected to be marginally above its revised
guidance range.
• Average realised prices for copper, iron ore and metallurgical coal products were lower in the 2023
financial year compared to the prior year. Nickel prices remained stable, while thermal coal prices were
stronger, predominantly in the first half.
• BHP completed the acquisition of OZ Minerals Ltd (OZL) on 2 May 20232.
• BHP has continued to make strong progress at Oak Dam in South Australia. We have defined an
Exploration Target3 and plan to increase the number of exploration drills from nine to eleven by the
end of the 2023 calendar year.
• In Australia, BHP released its sixth Reconciliation Action Plan, which was awarded Elevate status.
BHP Chief Executive Officer, Mike Henry:
“The financial year was marked by the deaths of Jody Byrne and Nathan Scholz. These tragic events underscore the
absolute importance of safety and we are resolute in our commitment to eliminating fatalities and serious injuries at
BHP.
“BHP finished the year with a strong fourth quarter, increasing annual production across the board and achieving
annual records at WAIO, Olympic Dam and Spence. WAIO shipped record volumes on the back of productivity in its
supply chain, rail network and car dumpers, while South Flank completed its deployment of autonomous haul trucks
in May and is on track to ramp up to full production in the next 12 months. Olympic Dam’s improved reliability and
productivity delivered record annual output in copper, gold and silver, and the integration of OZ Minerals into our
South Australian copper business is expected to lift production to between 310 and 340 kt in FY24. At Escondida,
the team managed through operational challenges to deliver solid production and position the asset to increase
output further in FY24. Our Queensland coal operations achieved strong underlying performance including the
transition to autonomous fleets at Goonyella Riverside and Daunia, offsetting the impact of significant wet weather.
“Inflationary pressures impacted our business in the year, and we remain laser focused on safety and productivity to
remain competitive. Competitiveness will be ever more important as we enter the new financial year and at a time
when there are new challenges and opportunities to resource development and global economic volatility.
“BHP’s portfolio is geared towards high quality steelmaking and growth options in future facing commodities. The
Jansen potash project in Canada remains ahead of plan and studies for Stage 2 are progressing. Through the year,
BHP made strategic investments and exploration progress in copper and nickel prospects globally, including
Kabanga in Tanzania, Oak Dam in Australia, Filo Mining with the Filo del Sol project in Argentina and Chile, and
Ocelot in the United States, as well as Serbia and Peru.”
BHP Operational Review for the year ended 30 June 2023 1
Summary
Operational performance
Production and guidance are summarised below.
FY23 Jun Q23 Jun Q23
Jun vs vs vs FY24 FY24e
Production FY23 Q23 FY22 Jun Q22 Mar Q23 guidance vs FY23
Copper (kt)i 1,716.5 476.2 9% 3% 17% 1,720 – 1,910 0% – 11%
Escondida (kt) 1055.3 293.0 5% 1% 16% 1,080 – 1,180 2% – 12%
Pampa Norte (kt) 288.8 68.5 3% (11%) (6%) 210 – 250 ii
(27%) – (13%)
Copper South Australia (kt)iii 232.4 76.6 68% 38% 48% 310 – 340 33% – 46%
Antamina (kt) 138.4 36.5 (8%) (8%) 23% 120 – 140 (13%) – 1%
Carajás (kt) 1.6 1.6 - - - - -
Iron ore (Mt) 257.0 65.3 1% 2% 9% 254 – 264.5 (1%) – 3%
WAIO (Mt) 252.5 64.1 1% 1% 9% 250 – 260 (1%) – 3%
WAIO (100% basis) (Mt) 285.3 72.7 1% 1% 10% 282 – 294 (1%) – 3%
Samarco (Mt) 4.5 1.2 11% 22% 17% 4 – 4.5 (11%) – 0%
Metallurgical coal - BMA (Mt) 29.0 8.5 0% 4% 22% 28 – 31 (4%) – 7%
BMA (100% basis) (Mt) 58.0 17.0 0% 4% 22% 56 – 62 (4%) – 7%
Energy coal – NSWEC (Mt) 14.2 4.8 3% 22% 21% 13 – 15 (8%) – 6%
Nickel (kt) 80.0 22.0 4% 17% 12% 77 – 87 (4%) – 9%
i. Includes contribution of 21.5 kt from operations acquired from OZL2.
ii. Production guidance for FY24 is provided for Spence only. Cerro Colorado is expected to produce ~9 kt as it transitions to closure by
31 December 2023.
iii. Comprised of Olympic Dam, Prominent Hill and Carrapateena. Refer to the production and sales report for more details.
FY23 Jun Q23
Production (vs FY22) (vs Mar Q23) Jun Q23 vs Mar Q23 commentary
Copper (kt) 1,716.5 476.2 Higher concentrate volumes at Escondida reflect the higher concentrate feed
9% 17% grade of 0.93 per cent, and higher volumes at Copper South Australia resulted in
a BHP record for quarterly production from the refinery at Olympic Dam, and
reflect the addition of Prominent Hill and Carrapateena.
Iron ore (Mt) 257.0 65.3 Increased production at WAIO, despite unfavourable impacts from Tropical Cyclone
1% 9% Ilsa, due to strong supply chain performance and the prior period impacts from the
temporary shutdown of operations following the fatality, as well as the tie-in activity
of the Port Debottlenecking Project 1 (PDP1).
Metallurgical coal (Mt) 29.0 8.5 Increased production driven by increased yield, improved truck productivity and
0% 22% favourable weather conditions, partially offset by the commencement of a second
longwall move at Broadmeadow.
Energy coal (Mt) 14.2 4.8 Higher volumes as a result of additional stripping volumes, decreased proportion
3% 21% of washed coal, favourable weather conditions, and improvement in truck
productivity with record quarterly annualised truck hours.
Nickel (kt) 80.0 22.0 Higher volumes due to improved mining performance at Mt Keith, increased third
4% 12% party purchases and inventory drawdowns enabling increased concentrate
production, partially offset by a heavy rain event in April 2023.
BHP Operational Review for the year ended 30 June 2023 2
Summary of disclosures
BHP expects its financial results for the second half of the 2023 financial year to reflect certain items summarised in
the table below. The table does not provide a comprehensive list of all items impacting the period. The financial
statements are the subject of ongoing work that will not be finalised until the release of the financial results on
22 August 2023. Accordingly, the table below contains preliminary information that is subject to update and finalisation.
H2 FY23
impact
Description US$Mi Classificationii
For the 2023 financial year, unit costs at Escondida and WAIO are expected to be towards the - ↑ Operating costs
upper end of guidance ranges, and unit costs at NSWEC are expected to be in line with the
revised guidance range (at guidance exchange rates)
Unit costs at BMA are expected to be marginally above the revised guidance range (at guidance
exchange rates)
Note: Australian dollar and Chilean peso were weaker than guidance rates in the periodiii
Unit costs will not include any costs relating to the review of employee entitlements and
allowances.
Review of employee entitlements and allowances ~280 ↑ Operating costs –
Group and Unallocated
Transaction and integration costs associated with the OZL acquisition ~100 – 150 ↑ Operating costs -
Group and Unallocated
Increase to depreciation and amortisation expense relative to H1 FY23, predominantly at WAIO, ~100 – 200 ↑ Depreciation,
and includes the contribution of the OZL assets acquired during the period. amortisation and
impairments
The Group’s adjusted effective tax rate for the 2023 financial year is expected to be in the lower half - Taxation expense
of the guidance range of 30 to 35 per cent
Working capital decrease relating to net price impacts, and provisions relating to employee 950 – 1,050 ↑ Operating cash flow
entitlements and allowances
Decrease in cash tax paid relative to H1 FY23 1,600 – 1,700 ↑ Operating cash flow
Gross dividends received from equity-accounted investments ~250 ↑ Investing cash flow
Capital and exploration spend is expected to be approximately US$7.1 bn, below full year - ↑ Investing cash flow
guidance of approximately US$7.6 bn, primarily driven by favourable FX
Gross dividends paid to non-controlling interests ~650 ↓ Financing cash flow
Payment of the H1 FY23 dividend ~4,600 ↓ Financing cash flow
Acquisition of OZL ~6,000 ↓ Investing cash flow
Net debt acquired through OZL acquisition ~1,000 ↑ Net debt
The Group’s net debt balance at 30 June 2023 is expected to be between US$11 and US$11.5 bn - Net debt
and is expected to remain towards the upper end of our target range of US$5 to US$15 bn in the
near term
Financial impact on BHP Brasil of the Samarco dam failure Refer footnoteiv Exceptional item
The financial impact is expected to primarily relate to amortisation of discounting on the provision
and the impact of foreign exchange
Revaluation of deferred tax balances following the substantive enactment of the ~250 – 300v Exceptional item
Chilean Royalty Bill
i Numbers are not tax effected and comparisons are against the 31 December 2022 financial results, unless otherwise noted.
ii There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant, unless otherwise noted.
iii Average exchange rates for FY23 of AUD/USD 0.67 (guidance rate AUD/USD 0.72) and USD/CLP 864 (guidance rate USD/CLP 830).
iv Financial impact is the subject of ongoing work and is not yet finalised. See Iron ore section for further information on Samarco.
v To reflect an increase to the mining tax rates in Chile.
BHP Operational Review for the year ended 30 June 2023 3
Average realised prices
The average realised prices achieved for our major commodities are summarised below.
FY23 H2 FY23 H2 FY23
vs vs vs
Average realised pricesi H2 FY23 H1 FY23 FY23 FY22 FY22 H2 FY22 H1 FY23
Copper (US$/lb)ii 3.80 3.49 3.65 4.16 (12%) (5%) 9%
Iron ore (US$/wmt, FOB) 99.88 85.46 92.54 113.10 (18%) (11%) 17%
Metallurgical coal (US$/t) 273.08 268.73 271.05 347.10 (22%) (36%) 2%
iii
Hard coking coal (US$/t) 276.22 270.65 273.59 366.82 (25%) (37%) 2%
Weak coking coal (US$/t)iii 250.38 252.12 251.13 296.51 (15%) (35%) (1%)
Thermal coal (US$/t)iv 157.21 354.30 236.51 216.78 9% (48%) (56%)
Nickel metal (US$/t) 23,652 24,362 24,021 23,275 3% (14%) (3%)
i Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales,
and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact
of provisional pricing and finalisation adjustments.
ii Does not include sales from assets acquired through the purchase of OZL.
iii Hard coking coal (HCC) refers generally to those metallurgical coals with a Coke Strength after Reaction (CSR) of 35 and above, which
includes coals across the spectrum from Premium Coking to Semi Hard Coking coals, while weak coking coal (WCC) refers generally to
those metallurgical coals with a CSR below 35.
iv Export sales only. Includes thermal coal sales from metallurgical coal mines.
The large majority of iron ore shipments were linked to index pricing for the month of shipment, with price differentials
predominantly a reflection of market fundamentals and product quality. Iron ore sales for the June 2023 half year
were based on an average moisture rate of 6.6 per cent. The large majority of metallurgical coal and energy coal
exports were linked to index pricing for the month of scheduled shipment or priced on the spot market at fixed or
index-linked prices, with price differentials reflecting product quality. The large majority of copper cathodes sales
were linked to index price for quotation periods one month after month of shipment, and three to four months after
month of shipment for copper concentrates sales with price differentials applied for location and treatment costs.
At 30 June 2023, the Group had 342 kt of outstanding copper sales that were revalued at a weighted average price
of US$3.77 per pound. The final price of these sales will be determined in the 2024 financial year. In addition, 354 kt
of copper sales from the 2022 financial year were subject to a finalisation adjustment in the 2023 financial year. The
provisional pricing and finalisation adjustments will decrease Underlying EBITDA by US$243 million in the 2023
financial year and are included in the average realised copper price in the above table.
Corporate update
BHP released its sixth Reconciliation Action Plan in June 2023, which has been recognised with ‘Elevate’ status from
Reconciliation Australia. Some examples of the commitments made in the plan include increasing Indigenous
representation across our Australian workforce to a target of 9.7 per cent by the end of the 2027 financial year, and
a target to achieve an A$1.5 billion spend with Traditional Owner and Indigenous businesses in aggregate across
our Australian assets.
Portfolio
On 2 May 2023, BHP announced the completion of the OZL acquisition. The acquisition strengthens BHP’s portfolio
in copper, nickel and uranium and is in line with our strategy to pursue value adding growth in future facing
commodities. The cash payment by BHP was funded using a combination of BHP’s existing cash reserves and the
proceeds of a debt facility.
In June 2023, BHP agreed to invest an additional C$30 million in Filo Mining Corp via a private placement. The
proceeds from BHP’s investment will be used by Filo for exploration and development of the Filo del Sol project,
located in San Juan Province, Argentina and adjacent Region III in Chile, and for working capital and general
corporate purposes.
Decarbonisation
In the June 2023 quarter, BHP held a briefing updating on its progress and plans to achieve its medium and long-term
operational decarbonisation target and goal and released two Prospects updates on the Pathways to decarbonisation
which are available on the BHP website: The many, many roads to Paris and the electric smelting furnace.
BHP Operational Review for the year ended 30 June 2023 4
Copper
Production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
Copper (kt) 1,716.5 476.2 9% 3% 17%
Zinc (t) 125,048 38,822 1% 41% 64%
Uranium (t) 3,406 813 43% 5% (2%)
Copper – Total copper production increased by nine per cent to 1,717 kt. Production for the 2024 financial year is
expected to be between 1,720 and 1,910 kt.
Escondida copper production increased by five per cent to 1,055 kt primarily due to higher concentrator feed grade
of 0.82 per cent, compared to 0.78 per cent in the 2022 financial year. The positive impact of the 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 came in at the low end of revised guidance largely as a result of
measures implemented to manage geotechnical events in a high grade section of the Escondida pit. These included
a resequencing of the mine plan, resulting in lower than anticipated volumes of mined ore and increased processing
of lower grade stockpiles through the concentrators. Production is expected to increase to between 1,080 and
1,180 kt for the 2024 financial year and reflects both an expected increase in concentrator feed grade and an
expected increase in concentrator throughput compared to the 2023 financial year.
Pampa Norte copper production increased by three per cent to 289 kt including a record 240 kt at Spence and 49 kt
at Cerro Colorado. This was largely a result of higher concentrator throughput at the Spence Growth Option (SGO),
partially offset by lower production at Cerro Colorado as it transitions towards closure. The concentrator plant
modifications, which commenced in August 2022, remain on track to be completed in the 2023 calendar year.
Expected capital expenditure for the concentrator modification works remains unchanged at approximately
US$100 million. Production for Spence is expected to be between 210 and 250 kt for the 2024 financial year, with
planned higher concentrator grade and concentrator throughput but lower stacking grade for cathodes. Cerro
Colorado continues to transition towards planned closure by December 2023, with production for the six months until
closure expected to be approximately 9 kt. We are continuing to closely monitor previously identified Spence Tailings
Storage Facility anomalies.
Following the completion of the acquisition of OZL, we have established the Copper South Australia business.
Production from Copper South Australia was 232 kt, comprised of full year production from Olympic Dam of 212 kt
and two months of production2 from Prominent Hill and Carrapateena of 8 kt and 12 kt respectively. Olympic Dam
delivered record BHP copper production as a result of continued strong concentrator and smelter performance
following the major smelter maintenance campaign (SCM21) in the prior year. Record annual gold and silver
production was also achieved following the implementation of debottlenecking initiatives in the prior year, 27 per cent
higher than the previous gold production record.
Integration activity is underway, including the transfer of small volumes of copper concentrate from Prominent Hill to
Olympic Dam for processing. Copper South Australia production of between 310 and 340 kt is expected for the 2024
financial year.
Antamina copper production decreased by eight per cent to 138 kt reflecting the expected lower copper feed grades,
partially offset by higher throughput. Zinc production was one per cent higher at 125 kt, reflecting higher throughput.
Copper production of 120 to 140 kt and zinc production of between 85 and 105 kt is expected for the 2024 financial
year.
Following the acquisition of OZL, Carajás produced 1.6 kt of copper and 1.2 troy koz of gold2.
BHP Operational Review for the year ended 30 June 2023 5
Iron ore
Production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
Iron ore (kt) 257,043 65,295 1% 2% 9%
Iron ore – Total iron ore production increased by one per cent to 257 Mt. Production for the 2024 financial year is
expected to be between 254 and 264.5 Mt.
WAIO achieved record production of 253 Mt (285 Mt on a 100 per cent basis), reflecting continued strong supply
chain performance, including improved rail performance and increased car dumper utilisation. This was partially offset
by the temporary suspension of operations following the fatality in February, unfavourable weather impacts from
Tropical Cyclone Ilsa in the June 2023 quarter and the ongoing planned tie-in of PDP1, which remains on track to be
completed in the 2024 calendar year.
South Flank remains on track to ramp up to full production capacity of 80 Mtpa (100 per cent basis) by the end of the
2024 financial year. Current year performance has contributed to record annual production at the Mining Area C hub
and record WAIO lump sales. Additionally, the deployment of autonomous haul trucks at South Flank was completed
in May 2023.
WAIO also achieved record shipments for the year, which was inclusive of sales of 249 Mt (281 Mt on a 100 per cent
basis) and inventory in China of almost 4 Mt for portside sales.
WAIO production is expected to increase to between 250 and 260 Mt (282 and 294 Mt on a 100 per cent basis) in the
2024 financial year.
Samarco production increased by 11 per cent to 4.5 Mt (BHP share), as a result of higher concentrator throughput.
Production for the 2024 financial year is expected to be between 4 and 4.5 Mt (BHP share).
In May 2023, Samarco announced it had agreed with its shareholders and a group of Samarco’s financial creditors
to a restructure of the company's financial debts. The agreement was entered into following a 2-month court-
supervised settlement process. The proposed terms are subject to approval by a majority of Samarco’s creditors,
ratification by the Judicial Reorganisation Court and the entry into definitive debt restructure documents. Samarco,
BHP Brasil, Vale, and creditors are working together to implement the restructure terms to resolve Samarco's judicial
reorganisation process.
BHP Operational Review for the year ended 30 June 2023 6
Coal
Production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
Metallurgical coal (kt) 29,020 8,477 0% 4% 22%
Energy coal (kt) 14,172 4,765 3% 22% 21%
Metallurgical coal – BMA production of 29 Mt (58 Mt on a 100 per cent basis) was in line with the prior period. The
significant wet weather experienced in the first three quarters4 was offset by strong underlying operational
performance, in particular, continued improvement in truck productivity at Goonyella and Daunia following the
completion of their transitions to autonomous fleet. Production for the period was further supported by a drawdown
of raw coal inventory and improved labour availability compared to the prior period.
Production for the 2024 financial year is expected to be between 28 and 31 Mt (56 and 62 Mt on a 100 per cent basis).
The near tripling of top end royalties by the Queensland Government makes Queensland the highest coal taxing regime
in the world. Given the negative impact this has on investment economics and the increase in sovereign risk, we will
not be investing in any further growth in Queensland, however we will sustain and optimise our existing operations.
Energy coal – NSWEC production increased by three per cent to 14.2 Mt driven by an improvement in weather
conditions in the second half of the year and an uplift in truck productivity compared to the prior year. Additional
deployed capacity into a new mining area also resulted in an uplift in prime stripping volumes. Production for the
2024 financial year is expected to be between 13 and 15 Mt.
Higher quality products made up 77 per cent of sales, compared to 89 per cent in the prior period, reflecting the
impacts of the change in export market conditions and the commencement of domestic sales under the NSW
Government Coal Market Price Emergency (Directions for Coal Mines) Notice in the June 2023 quarter. The
reservation allocation for the 2024 financial year is expected to be 0.7 Mt in line with the Directions.
Other
Nickel production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
Nickel (kt) 80.0 22.0 4% 17% 12%
Nickel – Nickel West production increased by four per cent to 80 kt due to an increased proportion of concentrate
and matte products and inventory drawdowns. This was partially offset by the slower than planned ramp up of the
refinery following planned maintenance in the December 2022 quarter and a heavy rain event at the Mt Keith
operations in early April 2023 impacting mine progression.
During the year, Nickel West has experienced ongoing issues with the quality and volume of ore deliveries from
Mincor Resources containing high levels of arsenic, and in March advised that it would no longer accept
off-specification product. In the second half, Nickel West purchased more third-party products compared to the first
half, including higher cost third party concentrate to offset the impact of the ore supply issues.
Production is expected to be between 77 and 87 kt for the 2024 financial year, weighted to the second half of the
year due to planned refinery maintenance in the first half.
The West Musgrave nickel project in Western Australia is in early stages of execution following the final investment
decision by OZL in September 2022 (prior to the acquisition by BHP).
Potash – Our major potash project under development at Jansen is tracking to the accelerated plan with first
production still targeted for the end of the 2026 calendar year, compared to the initial target of the 2027 calendar
year. In the June 2023 quarter, we completed all piling activities for the mill and storage facilities. During the 2024
financial year, we will transition from civil works into steel and equipment installation on the surface and underground,
as well as continuing with equipment procurement. Port construction will also continue. The feasibility study for
Jansen Stage 2 continues to progress and is on track to be completed during the 2024 financial year.
BHP Operational Review for the year ended 30 June 2023 7
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 26% complete
(Canada) underground potash mine and surface
100% infrastructure, with capacity to produce 4.35 Mtpa.
Minerals exploration
Minerals exploration and evaluation expenditure increased by 37 per cent for the year ended 30 June 2023 to
US$350 million, of which US$294 million was expensed.
At BHP’s recently identified copper porphyry mineralised system, Ocelot, located in the Miami-Globe copper district
of the United States, the final hole of a 6-hole program was completed in May 2023. The project remains at an early
exploration stage and data from the recent drill program will be used to update the overall resource range estimation
at Ocelot.
At Oak Dam in South Australia, we have defined an Exploration Target3 (refer to Appendix 1) and commenced the
next phase of drilling as we work towards defining a first Mineral Resource5. In line with the environmental approvals
received in March 2023, we plan to increase from nine drill rigs to eleven and to establish core processing facilities
and an accommodation camp of up to 150 rooms by the end of the 2023 calendar year. We are continuing community
and stakeholder engagement in preparation for submission of our application to convert the Oak Dam tenement from
an exploration licence to a retention lease, enabling progression of an early access decline.
In addition, we have commenced exploratory drilling beneath the Olympic Dam mine, at depths between 900m and
1,500m, with nine surface exploration rigs.
In June 2023, BHP signed a Sales and Purchase Agreement to acquire 100 per cent of Ragnar Metals Sweden AB,
for a cash payment of A$9.8 million. Ragnar’s assets include the Granmuren Nickel project, an early-stage nickel-
copper tenement package located 110 km north-west of Stockholm, Sweden. BHP intends to undertake additional
drilling to determine whether the known mineralisation has continuous high grade nickel sulphide and to test
additional targets.
The inaugural BHP Xplor accelerator program was completed, with a number of the early-stage mineral exploration
companies selected for further investment. Applications for the program’s second year will open at the end of
August 2023.
Elsewhere, we continue to progress exploration activities in Australia, Canada, Chile, Ecuador, Peru, Serbia and the
United States.
Variance analysis relates to the relative performance of BHP and/or its operations during the 12 months ended June 2023 compared with the 12 months ended June
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 Throughout this report, production volumes for the operations acquired from OZL are for the period of 1 May to 30 June 2023, whilst the acquisition completion
date was 2 May 2023.
3 An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate,
quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral
Resource.
4 803mm of rainfall recorded at Moranbah for the year ended 30 June 2023 compared to 648mm in the prior year.
5 The potential quantity and grade of an Exploration Target is conceptual in nature and as such there has been insufficient exploration to estimate a Mineral
Resource, and it is uncertain if further exploration or analysis will result in the estimation of a Mineral Resource.
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. On and from 2 May, the BHP Group includes OZ Minerals Limited and its subsidiaries referred to in
note 17 of their Financial Statements in its Annual Report for the year ended 30 December 2022. 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 year ended 30 June 2023 8
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
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BHP Operational Review for the year ended 30 June 2023 9
Production summary
Quarter ended Year to date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2022 2022 2022 2023 2023 2023 2022
Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Copper1
Copper
Payable metal in concentrate (kt)
Escondida2 57.5% 233.5 203.1 208.3 200.8 220.5 832.7 802.6
Pampa Norte3 100% 28.2 28.6 32.5 32.0 32.2 125.3 111.2
Copper South Australia4 100% 19.9 19.9
Antamina 33.8% 39.6 37.1 35.2 29.6 36.5 138.4 149.9
Carajas5 100% 1.6 1.6
Total 301.3 268.8 276.0 262.4 310.7 1,117.9 1,063.7
Cathode (kt)
Escondida2 57.5% 55.8 49.6 49.7 50.8 72.5 222.6 201.4
Pampa Norte3 100% 49.0 42.0 44.2 41.0 36.3 163.5 170.0
Copper South Australia4 100% 55.7 49.7 54.4 51.7 56.7 212.5 138.4
Total 160.5 141.3 148.3 143.5 165.5 598.6 509.8
Total copper (kt) 461.8 410.1 424.3 405.9 476.2 1,716.5 1,573.5
Lead
Payable metal in concentrate (t)
Antamina 33.8% 181 228 114 169 146 657 1,118
Total 181 228 114 169 146 657 1,118
Zinc
Payable metal in concentrate (t)
Antamina 33.8% 27,576 32,685 29,929 23,612 38,822 125,048 123,200
Total 27,576 32,685 29,929 23,612 38,822 125,048 123,200
Gold
Payable metal in concentrate (troy oz)
Escondida2 57.5% 45,770 38,236 48,402 48,954 53,503 189,095 166,972
Pampa Norte3 100% 8,198 5,521 3,875 8,152 9,263 26,811 28,870
Copper South Australia4 100% 32,736 32,736
Carajas5 100% 1,153 1,153
Total 53,968 43,757 52,277 57,106 96,655 249,795 195,842
Refined gold (troy oz)
Copper South Australia4 100% 26,080 47,184 43,280 49,086 46,479 186,029 119,517
Total 26,080 47,184 43,280 49,086 46,479 186,029 119,517
Total gold (troy oz) 80,048 90,941 95,557 106,192 143,134 435,824 315,359
Silver
Payable metal in concentrate (troy koz)
Escondida2 57.5% 1,311 1,210 1,510 1,346 1,008 5,074 5,334
Pampa Norte3 100% 262 252 245 409 412 1,318 1,011
Copper South Australia4 100% 201 201
Antamina 33.8% 1,212 1,190 923 801 971 3,885 5,078
Total 2,785 2,652 2,678 2,556 2,592 10,478 11,423
Refined silver (troy koz)
Copper South Australia4 100% 145 295 261 277 256 1,089 743
Total 145 295 261 277 256 1,089 743
Total silver (troy koz) 2,930 2,947 2,939 2,833 2,848 11,567 12,166
Uranium
Payable metal in concentrate (t)
Copper South Australia4 100% 776 817 943 833 813 3,406 2,375
Total 776 817 943 833 813 3,406 2,375
Molybdenum
Payable metal in concentrate (t)
Pampa Norte3 100% 71 34 216 407 333 990 71
Antamina 33.8% 249 262 348 229 333 1,172 798
Total 320 296 564 636 666 2,162 869
BHP Operational Review for the year ended 30 June 2023 10
Production summary
Quarter ended Year to date
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2022 2022 2022 2023 2023 2023 2022
Iron Ore
Iron Ore
Production (kt)6
Newman 85% 14,063 14,053 16,172 11,925 14,795 56,945 57,041
Area C Joint Venture 85% 27,685 26,971 26,302 25,284 28,818 107,375 94,431
Yandi Joint Venture 85% 6,409 5,497 5,613 4,941 5,359 21,410 38,922
Jimblebar7 85% 15,005 17,404 17,720 16,575 15,102 66,801 58,782
Samarco 50% 1,000 1,148 1,095 1,048 1,221 4,512 4,071
Total 64,162 65,073 66,902 59,773 65,295 257,043 253,247
Coal
Metallurgical coal
Production (kt)8
BHP Mitsubishi Alliance (BMA) 50% 8,183 6,662 6,952 6,929 8,477 29,020 29,142
Total 8,183 6,662 6,952 6,929 8,477 29,020 29,142
Energy coal
Production (kt)
NSW Energy Coal 100% 3,919 2,622 2,851 3,934 4,765 14,172 13,701
Total 3,919 2,622 2,851 3,934 4,765 14,172 13,701
Other
Nickel
Saleable production (kt)
Nickel West 100% 18.8 20.7 17.7 19.6 22.0 80.0 76.8
Total 18.8 20.7 17.7 19.6 22.0 80.0 76.8
Cobalt
Saleable production (t)
Nickel West 100% 110 238 93 175 246 752 632
Total 110 238 93 175 246 752 632
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 Spence and Cerro Colorado. Refer to the Production and Sales Report for more details.
4 Includes Olympic Dam and two months of production from Prominent Hill and Carrapateena from 1 May 2023, following the acquisition of OZL on 2
May 2023. Refer to the Production and Sales Report for more details.
5 Includes two months of production from 1 May 2023, following the acquisiton of OZL on 2 May 2023.
6 Iron ore production is reported on a wet tonnes basis.
7 Shown on a 100% basis. BHP interest in saleable production is 85%.
8 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 year ended 30 June 2023 11
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile1
Material mined (kt) 115,409 110,248 101,987 106,170 95,451 413,856 454,243
Concentrator throughput (kt) 34,318 32,894 33,911 33,309 30,750 130,864 133,868
Average copper grade - concentrator (%) 0.88% 0.83% 0.76% 0.78% 0.93% 0.82% 0.78%
Production ex mill (kt) 239.5 214.6 212.8 210.0 228.9 866.3 835.8
Production
Payable copper (kt) 233.5 203.1 208.3 200.8 220.5 832.7 802.6
Copper cathode (EW) (kt) 55.8 49.6 49.7 50.8 72.5 222.6 201.4
- Oxide leach (kt) 17.5 15.2 17.6 14.7 29.3 76.8 57.6
- Sulphide leach (kt) 38.3 34.4 32.1 36.1 43.2 145.8 143.8
Total copper (kt) 289.3 252.7 258.0 251.6 293.0 1,055.3 1,004.0
Payable gold concentrate (troy oz) 45,770 38,236 48,402 48,954 53,503 189,095 166,972
Payable silver concentrate (troy koz) 1,311 1,210 1,510 1,346 1,008 5,074 5,334
Sales
Payable copper (kt) 230.4 196.7 216.0 197.3 220.3 830.3 798.1
Copper cathode (EW) (kt) 58.9 45.9 53.5 43.8 78.0 221.2 202.5
Payable gold concentrate (troy oz) 45,770 38,236 48,402 48,954 53,503 189,095 166,972
Payable silver concentrate (troy koz) 1,311 1,210 1,510 1,346 1,008 5,074 5,334
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 3,604 3,179 583 172 145 4,079 17,280
Ore stacked (kt) 4,259 4,373 4,119 3,567 3,928 15,987 15,035
Average copper grade - stacked (%) 0.55% 0.54% 0.56% 0.57% 0.53% 0.55% 0.58%
Production
Copper cathode (EW) (kt) 14.7 12.8 12.2 12.0 12.2 49.2 55.0
Sales
Copper cathode (EW) (kt) 16.2 13.3 12.2 10.9 14.1 50.5 54.8
Spence
Material mined (kt) 26,749 26,956 26,980 24,858 25,622 104,416 95,968
Ore stacked (kt) 5,099 5,577 5,155 4,947 5,625 21,304 20,483
Average copper grade - stacked (%) 0.66% 0.70% 0.66% 0.60% 0.58% 0.64% 0.66%
Concentrator throughput (kt) 6,311 6,433 7,602 7,290 6,927 28,252 24,843
Average copper grade - concentrator (%) 0.66% 0.63% 0.60% 0.61% 0.61% 0.61% 0.64%
Production
Payable copper (kt) 28.2 28.6 32.5 32.0 32.2 125.3 111.2
Copper cathode (EW) (kt) 34.3 29.2 32.0 29.0 24.1 114.3 115.0
Total copper (kt) 62.5 57.8 64.5 61.0 56.3 239.6 226.2
Payable gold concentrate (troy oz) 8,198 5,521 3,875 8,152 9,263 26,811 28,870
Payable silver concentrate (troy koz) 262 252 245 409 412 1,318 1,011
Payable molybdenum (t) 71 34 216 407 333 990 71
Sales
Payable copper (kt) 28.1 26.0 22.0 38.7 38.6 125.3 109.5
Copper cathode (EW) (kt) 35.4 29.1 33.4 25.1 28.3 115.9 114.5
Payable gold concentrate (troy oz) 8,198 5,521 3,875 8,152 9,263 26,811 28,870
Payable silver concentrate (troy koz) 262 252 245 409 412 1,318 1,011
Payable molybdenum (t) 25 25 216 492 367 1,100 25
BHP Operational Review for the year ended 30 June 2023 12
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
Copper (continued)
Metals production is payable metal unless otherwise stated.
Copper South Australia
Olympic Dam
Material mined1 (kt) 2,477 2,412 2,264 2,317 2,356 9,349 8,834
Ore milled (kt) 2,436 2,570 2,687 2,433 2,755 10,445 7,687
Average copper grade (%) 2.15% 2.13% 2.08% 1.95% 2.00% 2.04% 2.14%
Average uranium grade (kg/t) 0.56 0.58 0.58 0.59 0.55 0.58 0.57
Production
Copper cathode (ER and EW) (kt) 55.7 49.7 54.4 51.7 56.7 212.5 138.4
Payable uranium (t) 776 817 943 833 813 3,406 2,375
Refined gold (troy oz) 26,080 47,184 43,280 49,086 46,479 186,029 119,517
Refined silver (troy koz) 145 295 261 277 256 1,089 743
Sales
Copper cathode (ER and EW) (kt) 55.8 45.9 56.8 50.5 59.5 212.7 139.1
Payable uranium (t) 1,031 272 1,127 683 1,275 3,357 2,344
Refined gold (troy oz) 24,622 49,542 41,900 47,300 49,182 187,924 118,979
Refined silver (troy koz) 87 320 233 307 270 1,130 685
Prominent Hill2
Material mined (kt) 661 661
Ore milled (kt) 1,228 1,228
Average copper grade (%) 0.77% 0.77%
Production ex mill (kt) 16.3 16.3
Production
Payable copper (kt) 8.2 8.2
Payable gold concentrate (troy oz) 17,432 17,432
Payable silver concentrate (troy koz) 44 44
Sales
Payable copper (kt) 15.7 15.7
Payable gold concentrate (troy oz) 28,856 28,856
Payable silver concentrate (troy koz) 87 87
Carrapateena2
Material mined (kt) 880 880
Ore milled (kt) 856 856
Average copper grade (%) 1.52% 1.52%
Production ex mill (kt) 30.1 30.1
Production
Payable copper (kt) 11.7 11.7
Payable gold concentrate (troy oz) 15,304 15,304
Payable silver concentrate (troy koz) 157 157
Sales
Payable copper (kt) 11.9 11.9
Payable gold concentrate (troy oz) 15,242 15,242
Payable silver concentrate (troy koz) 155 155
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
2 Includes two months of production and sales from 1 May 2023, following the acquisiton of OZL on 2 May 2023.
BHP Operational Review for the year ended 30 June 2023 13
Production and sales report
Quarter ended Year to date
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 64,026 63,865 68,750 57,939 62,894 253,448 246,904
Concentrator throughput (100%) (kt) 13,131 13,858 14,272 12,349 13,897 54,376 52,496
Average head grades
- Copper (%) 1.02% 0.93% 0.86% 0.88% 0.88% 0.89% 0.98%
- Zinc (%) 1.05% 1.09% 0.99% 1.06% 1.25% 1.10% 1.11%
Production
Payable copper (kt) 39.6 37.1 35.2 29.6 36.5 138.4 149.9
Payable zinc (t) 27,576 32,685 29,929 23,612 38,822 125,048 123,200
Payable silver (troy koz) 1,212 1,190 923 801 971 3,885 5,078
Payable lead (t) 181 228 114 169 146 657 1,118
Payable molybdenum (t) 249 262 348 229 333 1,172 798
Sales
Payable copper (kt) 40.7 37.6 34.7 32.4 34.5 13 ...
