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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 Victoria 3000
Share code: BHG
Release Time IMMEDIATE ISIN: AU000000BHP4
Date 19 January 2023
Release Number 1/23
BHP OPERATIONAL REVIEW
FOR THE HALF YEAR ENDED 31 DECEMBER 2022
• We remained fatality free at our operated assets for the fourth consecutive year and continued to deliver
reliable operational performance during the quarter.
• Western Australia Iron Ore (WAIO) achieved record production of 146 Mt (100% basis) for the half year.
• Production guidance for the 2023 financial year remains unchanged, with Escondida and BHP Mitsubishi
Alliance (BMA) trending to the low end of their respective guidance ranges.
• Full year unit cost guidance1 for Escondida and WAIO remains unchanged. Unit cost guidance for BMA
and New South Wales Energy Coal (NSWEC) has been increased, largely reflecting production impacts
from significant wet weather and inflationary pressures.
• BHP entered into a Scheme Implementation Deed with OZ Minerals Ltd (OZL) to acquire 100% of OZL by
way of a scheme arrangement for a cash price of A$28.25 per OZL share.
BHP Chief Executive Officer, Mike Henry:
“BHP delivered safe and reliable operating performance in the first half of the 2023 financial year. Employees and
contractors across BHP continued to prioritise safety, resulting in the fourth consecutive year without a fatality.
WA Iron Ore (WAIO) delivered record production for the half year through strong supply chain performance,
supported by the ongoing ramp-up at South Flank. Copper production at Escondida rose despite road blockades in
Chile in the December quarter and the Spence Growth Option continued to ramp up, while Olympic Dam’s ongoing
smelter performance saw near-record material processing and record gold production. In Queensland, coal
production was again impacted by heavy rainfall. As foreshadowed, we are seeing the impact of inflation across our
global supply chains and continue to focus on productivity and controllable costs.
BHP believes China will be a stabilising force when it comes to commodity demand in the 2023 calendar year, with
OECD nations experiencing economic headwinds. China’s pro-growth policies, including in the property sector, and
an easing of COVID-19 restrictions are expected to support progressive improvement from the difficult economic
conditions of the first half. China is expected to achieve its fifth straight year of over 1 billion tonnes of steel production.
During the quarter, we continued to progress a number of growth pathways to shape our portfolio toward future facing
commodities and reduce our operational emissions. In December 2022, BHP’s scheme implementation deed to
acquire 100% of Australian copper producer OZ Minerals received unanimous support from the OZ Minerals Board
ahead of a shareholder vote in the coming months.”
Production Dec H22 Dec Q22
(vs Dec H21) (vs Sep Q22) Dec Q22 vs Sep Q22 commentary
Copper (kt) 834.4 424.3 Higher volumes at Escondida due to higher throughput, higher concentrate volumes
12% 3% at Spence reflecting the ramp up of the Spence Growth Option, and strong volumes
at Olympic Dam as a result of planned refinery maintenance in the prior period.
Iron ore (Mt) 132.0 66.9 Record production at WAIO in the month of December 2022 due to strong supply chain
2% 3% performance and reduced impacts of labour constraints and wet weather.
Metallurgical coal (Mt) 13.6 7.0 Higher volumes due to improved strip ratios and the planned longwall move at
5% 4% Broadmeadow in the prior period, partially offset by continued significant wet weather.
Energy coal (Mt) 5.5 2.9 Higher volumes due to improved operating conditions, including less significant wet
(24%) 9% weather impacts and reduced labour shortages in the December 2022 quarter,
partially offset by planned wash plant maintenance completed in November 2022.
Nickel (kt) 38.4 17.7 Lower volumes due to planned maintenance at the smelter and refinery.
(2%) (14%)
BHP Operational Review for the half year ended 31 December 2022 1
Summary
Operational performance
Production and guidance are summarised below.
Dec H22 Dec Q22 Dec Q22 Previous Current
Dec Dec vs vs vs FY23 FY23
Production H22 Q22 Dec H21 Dec Q21 Sep Q22 guidance guidance
Copper (kt) 834.4 424.3 12% 16% 3% 1,635 – 1,825 1,635 – 1,825
Escondida (kt) 510.7 258.0 5% 5% 2% 1,080 – 1,180 1,080 – 1,180 Low end
Pampa Norte (kt) 147.3 76.7 8% 12% 9% 240 – 290 240 – 290 Unchanged
Olympic Dam (kt) 104.1 54.4 138% 283% 9% 195 – 215 195 – 215 Unchanged
Antamina (kt) 72.3 35.2 (3%) (8%) (5%) 120 – 140 120 – 140 Unchanged
Iron ore (Mt) 132.0 66.9 2% 1% 3% 249 – 260 249 – 260
WAIO (Mt) 129.7 65.8 2% 1% 3% 246 – 256 246 – 256 Unchanged
WAIO (100% basis) (Mt) 146.4 74.3 1% 1% 3% 278 – 290 278 – 290 Unchanged
Samarco (Mt) 2.2 1.1 8% 6% (5%) 3–4 3–4 Unchanged
Metallurgical coal - BMA (Mt) 13.6 7.0 5% 10% 4% 29 – 32 29 – 32
BMA (100% basis) (Mt) 27.2 13.9 5% 10% 4% 58 – 64 58 – 64 Low end
Energy coal – NSWEC (Mt) 5.5 2.9 (24%) (4%) 9% 13 – 15 13 – 15 Unchanged
Nickel (kt) 38.4 17.7 (2%) (18%) (14%) 80 – 90 80 – 90 Unchanged
Summary of disclosures
BHP expects its financial results for the half year ended 31 December 2022 to reflect certain items as summarised
in the table below. The table does not provide a comprehensive list of all items impacting the period. The financial
statements are the subject of ongoing work that will not be finalised until the release of the financial results on
21 February 2023. Accordingly, the information in the table below contains preliminary information that is subject to
update and finalisation.
H1 FY23
impact
Description US$Mi Classificationii
Unit costs for the December 2022 half year at Escondida are expected to be towards the upper - Operating costs
end of full year guidance; unit costs at WAIO, BMA and NSWEC are expected to be above full
year guidance (at guidance exchange rates)
Note: weaker Australian dollar and Chilean peso than guidance rates in the periodiii
For the 2023 financial year, unit costs at WAIO and Escondida are tracking towards the upper - Operating costs
end of full year guidance (at guidance exchange rates)
Unit cost guidance for BMA has been increased to between US$100 and US$105 per tonne (at
guidance exchange rates) reflecting full year volumes tracking to the low end of production
guidance due to significant wet weather, inventory movements and inflationary pressures
Unit cost guidance for NSWEC has been increased to between US$84 and US$91 per tonne
(at guidance exchange rates) reflecting production impacts from record wet weather,
inflationary pressures and price-linked logistics costs
Exploration expense 127 Exploration expense
The Group’s adjusted effective tax rate for H1 FY23 is expected to be slightly below the full year - Taxation expense
guidance range of 30 to 35 per cent
Working capital movements relating to royalties, net price impacts on receivables and payables, 1,000-1,400 ↓ Operating cash flow
and other movements
Settlement of derivative related to the funding of the final FY22 dividend (note: together with ~210 ↓ Operating cash flow
the payment of US$8.7 billion reported in financing cash outflow, the combined payment of
US$8.9 billion represents the final dividend determined on 16 August 2022 in the financial
results for the year ended 30 June 2022)
Additional net proceedsiv received from the sale of BHP’s 80 per cent interest in BMC 74 ↑ Investing cash flow
Dividends paid to non-controlling interests 527 ↓ Financing cash flow
v
Financial impact on BHP Brasil of the Samarco dam failure Refer footnote Exceptional item
The financial impact is expected to primarily relate to amortisation of discounting on the
provision and the impact of foreign exchange
i Numbers are not tax effected, unless otherwise noted.
ii There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant, unless otherwise noted.
iii Average exchange rates for H1 FY23 of AUD/USD 0.67 (guidance rate AUD/USD 0.72) and USD/CLP 920 (guidance rate USD/CLP 830).
iv Second purchase price instalment offset by working capital adjustments.
v Financial impact is the subject of ongoing work and is not yet finalised. See corporate update section for further information on Samarco.
BHP Operational Review for the half year ended 31 December 2022 2
Average realised prices
The average realised prices achieved for our major commodities are summarised below.
Dec H22 Dec H22 Dec H22
vs vs vs
Average realised pricesi Dec H22 Dec H21 Jun H22 FY22 Dec H21 Jun H22 FY22
Copper (US$/lb) 3.49 4.31 4.02 4.16 (19%) (13%) (16%)
Iron ore (US$/wmt, FOB) 85.46 113.54 112.65 113.10 (25%) (24%) (24%)
Metallurgical coal (US$/t) 268.73 259.71 423.82 347.10 3% (37%) (23%)
ii
Hard coking coal (US$/t) 270.65 278.60 437.60 366.82 (3%) (38%) (26%)
ii
Weak coking coal (US$/t) 252.12 218.65 382.56 296.51 15% (34%) (15%)
iii
Thermal coal (US$/t) 354.30 137.68 302.60 216.78 157% 17% 63%
Nickel metal (US$/t) 24,362 19,651 27,399 23,275 24% (11%) 5%
i Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and in ternal 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 Hard coking coal (HCC) refers generally to those metallurgical coals with a Coke Strength after Reaction (CSR) of 35 and abov e, 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.
iii 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 December 2022 half
year were based on an average moisture rate of 6.8 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 31 December 2022, the Group had 319 kt of outstanding copper sales that were revalued at a weighted average
price of US$3.80 per pound. The final price of these sales will be determined over the remainder of the 2023 financial
year. In addition, 354 kt of copper sales from the 2022 financial year were subject to a finalisation adjustment in the
current period. The provisional pricing and finalisation adjustments will decrease Underlying EBITDA by
US$59 million in the December 2022 half year and are included in the average realised copper price in the above
table.
Corporate update
Portfolio
In December 2022, BHP announced the signing of a Scheme Implementation Deed (SID) with OZ Minerals Ltd (OZL)
to acquire 100 per cent of OZL through a scheme of arrangement for a cash price of A$28.25 per OZL share. The
SID confirms the terms of the scheme and BHP’s non-binding indicative proposal announced on 18 November 2022.
The implementation of the scheme is subject to satisfaction of certain conditions including OZL shareholder approval.
The OZL Board has unanimously recommended that OZL shareholders vote in favour of the scheme in the absence
of a superior proposal and subject to an independent expert concluding that the scheme is in the best interests of
OZL shareholders.
In October 2022, BHP agreed to invest an additional US$50 million (the second investment) in the Kabanga Nickel
Project (Kabanga) in Tanzania, subject to the satisfaction of customary conditions precedent. On closing, BHP’s
equity stake in Kabanga will increase to 14.3 per cent. In addition, BHP has signed an agreement with Kabanga
Nickel Limited giving BHP the option to increase its interest in Kabanga to 51 per cent.
Decarbonisation
Throughout the December 2022 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.
In October 2022, BHP entered into an agreement with ArcelorMittal, Mitsubishi Heavy Industries and Mitsubishi
Development for a multi-year trial of carbon capture technology, which will involve a feasibility and design study to
support progress to full scale deployment, and trials at two of ArcelorMittal’s steel plants.
BHP Operational Review for the half year ended 31 December 2022 3
In November 2022, BHP signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to
meet half of Olympic Dam’s electricity needs from the 2026 financial year, based on current forecast demand, and
allow Olympic Dam to record a net zero emission position for the contracted volume of supply.
Samarco
In December 2022, BHP agreed to fund US$915 million in further financial support for the Renova Foundation. The
funding is for the 2023 calendar year and will be offset against the Group’s provision for the Samarco dam failure.
We will provide an update to the ongoing potential financial impacts on BHP Brasil of the Samarco dam failure with
the release of the financial results on 21 February 2023. Any financial impacts will continue to be treated as an
exceptional item.
Copper
Production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
Copper (kt) 834.4 424.3 12% 16% 3%
Zinc (t) 62,614 29,929 0% 1% (8%)
Uranium (t) 1,760 943 115% 229% 15%
Copper – Total copper production increased by 12 per cent to 834 kt. Guidance for the 2023 financial year remains
unchanged at between 1,635 and 1,825 kt.
Escondida copper production increased by five per cent to 511 kt primarily due to higher concentrator feed grade of
0.79 per cent, compared to 0.72 per cent in the December 2021 half year. The higher grade was partially offset by
lower throughput and the impact of road blockades across Chile in the December 2022 quarter, which reduced
availability of some key mine supplies. Full year production is trending towards the low end of the guidance range of
between 1,080 and 1,180 kt as a result of lower than expected concentrator feed grade and throughput. Production
is weighted to the second half of the year, with concentrator feed grade expected to improve compared to the
December 2022 half year. 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 147 kt reflecting the continued ramp up of the Spence
Growth Option (SGO). Guidance for the 2023 financial year remains unchanged at between 240 and 290 kt. The SGO
plant modifications started in August 2022 and 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.
At Spence, we continue to closely monitor previously identified Tailings Storage Facility (TSF) anomalies. We have
reduced the volume of water in the tailings facility and continue to work with the local regulatory agencies, including
on the implementation of a remediation plan for the TSF. The SGO concentrator continues to operate with no impact
to production or market guidance. Spence is expected to reach an average of approximately 270 ktpa of production
for four years (including cathodes) following the completion of the SGO plant modifications and remediation of TSF
anomalies.
Olympic Dam copper production increased by 138 per cent to 104 kt primarily as a result of the major smelter
maintenance campaign (SCM21) in the prior period. Continued strong concentrator and smelter performance resulted
in near record material milled and concentrate smelted in the half year. Record gold production was also achieved in
the half year as a result of debottlenecking initiatives implemented in the prior year. Copper production guidance for
the 2023 financial year remains unchanged at between 195 and 215 kt.
Antamina copper production decreased by three per cent to 72 kt reflecting lower copper head grades partially offset
by higher throughput. Zinc production was flat at 63 kt reflecting lower zinc head grades offset by higher throughput.
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 half year ended 31 December 2022 4
Iron ore
Production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
Iron ore production (kt) 131,975 66,902 2% 1% 3%
Iron ore – Total iron ore production increased by two per cent to 132 Mt. Guidance for the 2023 financial year remains
unchanged at between 249 and 260 Mt.
WAIO achieved record production of 130 Mt (146 Mt on a 100 per cent basis) in the December 2022 half year. This
reflects 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 wet weather impacts in the September 2022 quarter.
South Flank ramp up to full production capacity of 80 Mtpa (100 per cent basis) by the end of the 2024 financial year
remains on track. Natural variability in the ore grade is expected as the mine progresses through the close to surface
material, however this is expected to stabilise as we move deeper into the ore body and achieve full ramp up.
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) and reflects the tie-in of the port debottlenecking project (PDP1) as well as the
continued ramp up of South Flank in the second half of the year.
Samarco production increased by eight per cent to 2.2 Mt (BHP share), reflecting the successful ramp up of one
concentrator, following the recommencement of iron ore pellet production in December 2020. Guidance for the
2023 financial year remains unchanged at between 3 and 4 Mt (BHP share).
Coal
Production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
Metallurgical coal (kt) 13,614 6,952 5% 10% 4%
Energy coal (kt) 5,473 2,851 (24%) (4%) 9%
Metallurgical coal – BMA production increased by five per cent to 14 Mt (27 Mt on a 100 per cent basis) driven by an
improvement in underlying truck productivity, in particular for the autonomous fleets following completion of the
transitions at Goonyella and Daunia, higher yields as a result of mine sequencing, as well as the reduced impact of
labour constraints relative to the prior period. This was partially offset by the impact of significant wet weather during
the December 2022 half year2. Full year production is trending to the low end of the guidance range of between 29 and
32 Mt (58 and 64 Mt on a 100 per cent basis) as a result of significant wet weather. An additional long wall move at
Broadmeadow has been accelerated into the June 2023 quarter due to improved mining rates.
Negotiations for the BMA Enterprise Agreement (EA) 2022 have concluded with a successful workforce ballot on 22
December 2022. The EA applies to the Goonyella Riverside, Peak Downs, Saraji and Blackwater mines. The new EA
has been approved by the Fair Work Commission and will operate from 19 January 2023 for a period of three years.
The Queensland Government’s decision to raise coal royalties to the highest maximum rate in the world makes
Queensland uncompetitive and puts investment and jobs at risk. We see strong long-term demand from global
steelmakers for Queensland’s high quality metallurgical coal, however in the absence of government policy that is both
competitive and predictable, we are unable to make significant new investments in Queensland. This increase to
royalties will impact the local businesses, suppliers and communities in Central Queensland where we operate.
Energy coal – NSWEC production decreased by 24 per cent to 5 Mt, reflecting the ongoing impacts of record wet
weather, continued labour shortages, planned wash plant maintenance during the December 2022 quarter and an
increased proportion of washed coal. Higher quality coals made up approximately 90 per cent of sales, compared to
approximately 80 per cent in the December 2021 half year. Production guidance for the 2023 financial year remains
unchanged at between 13 and 15 Mt.
BHP Operational Review for the half year ended 31 December 2022 5
Other
Nickel production
Dec H22 Dec Q22 Dec Q22
vs vs vs
Dec H22 Dec Q22 Dec H21 Dec Q21 Sep Q22
Nickel (kt) 38.4 17.7 (2%) (18%) (14%)
Nickel – Nickel West production decreased by two per cent to 38 kt, reflecting the slower than expected ramp up of
the refinery following planned smelter and refinery maintenance during the December 2022 quarter. Guidance for
the 2023 financial year remains unchanged at between 80 and 90 kt, with volumes weighted to the second half of
the financial year.
Potash – Our major potash project under development at Jansen is tracking to plan. For 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.
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 16% complete
(Canada) underground potash mine and surface
100% infrastructure, with capacity to produce 4.35 Mtpa.
Minerals exploration
Minerals exploration expenditure for the December 2022 half year was US$156 million, of which US$127 million was
expensed.
In August 2022, we announced the establishment of BHP Xplor, an innovative accelerator program to support early-
stage mineral exploration companies to find critical resources, such as copper and nickel. The program merges
concepts from venture capital and early-stage accelerators offering participants in-kind services, mentorship, and
networking opportunities. Applications for the program closed on 31 October 2022 and we received a significant
number of applications from around the world. We have selected seven companies into the accelerator program
which begins in January 2023.
We initiated greenfield exploration activities in southern Colombia and continue to progress activity in Australia,
Canada, Chile, Ecuador, north-west Mexico, Peru and the south-west United States.
At Oak Dam in South Australia, BHP is continuing next stage resource definition drilling with six drill rigs.
Following a review of prospectivity and core results, BHP acquired a 19.9 per cent interest via a placement in Brixton
Metals, providing exposure to a large block of ground prospective for copper in northern British Columbia, Canada.
The termination agreement in respect of the Earn-In Agreement over the Tarqui copper project in Ecuador has been
signed by BHP and Luminex. BHP’s exit from the project was finalised in early January 2023.
BHP Operational Review for the half year ended 31 December 2022 6
Variance analysis relates to the relative performance of BHP and/or its operations during the six months ended December 2022 compared with the six months ended
December 2021, 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.
2 493 mm of rainfall recorded at Moranbah in the December 2022 half year compared to 368 mm in the December 2021 half year.
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 half year ended 31 December 2022 7
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 Dinesh Bishop
Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Mobile: +61 407 033 909
Europe, Middle East and Africa Europe, Middle East and Africa
Neil Burrows James Bell
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Americas Americas
Renata Fernandez Monica Nettleton
Mobile: +56 9 8229 5357 Mobile: +1 416 518 6293
BHP Group Limited ABN 49 004 028 077
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BHP Operational Review for the half year ended 31 December 2022 8
Production summary
Quarter ended Year to date
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2021 2022 2022 2022 2022 2022 2021
Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Copper 1
Copper
Payable metal in concentrate (kt)
Escondida 2 57.5% 196.2 178.2 233.5 203.1 208.3 411.4 390.9
Pampa Norte 3 100.0% 24.2 32.4 28.2 28.6 32.5 61.1 50.6
Antamina 33.8% 38.4 36.1 39.6 37.1 35.2 72.3 74.2
Total 258.8 246.7 301.3 268.8 276.0 544.8 515.7
Cathode (kt)
Escondida 2 57.5% 48.4 48.2 55.8 49.6 49.7 99.3 97.4
Pampa Norte 3 100% 44.1 35.8 49.0 42.0 44.2 86.2 85.2
Olympic Dam 100% 14.2 39.0 55.7 49.7 54.4 104.1 43.7
Total 106.7 123.0 160.5 141.3 148.3 289.6 226.3
Total copper (kt) 365.5 369.7 461.8 410.1 424.3 834.4 742.0
Lead
Payable metal in concentrate (t)
Antamina 33.8% 277 282 181 228 114 342 655
Total 277 282 181 228 114 342 655
Zinc
Payable metal in concentrate (t)
Antamina 33.8% 29,603 32,732 27,576 32,685 29,929 62,614 62,892
Total 29,603 32,732 27,576 32,685 29,929 62,614 62,892
Gold
Payable metal in concentrate (troy oz)
Escondida 2 57.5% 42,937 36,303 45,770 38,236 48,402 86,638 84,899
Pampa Norte 3 100% 5,776 7,929 8,198 5,521 3,875 9,396 12,743
Olympic Dam (refined gold) 100% 37,805 29,355 26,080 47,184 43,280 90,464 64,082
Total 86,518 73,587 80,048 90,941 95,557 186,498 161,724
Silver
Payable metal in concentrate (troy koz)
Escondida 2 57.5% 1,462 1,270 1,311 1,210 1,510 2,720 2,753
Pampa Norte 3 100% 215 261 262 252 245 497 488
Antamina 33.8% 1,308 1,191 1,212 1,190 923 2,113 2,675
Olympic Dam (refined silver) 100% 258 149 145 295 261 556 449
Total 3,243 2,871 2,930 2,947 2,939 5,886 6,365
Uranium
Payable metal in concentrate (t)
Olympic Dam 100% 287 781 776 817 943 1,760 818
Total 287 781 776 817 943 1,760 818
Molybdenum
Payable metal in concentrate (t)
Pampa Norte 3 100% - - 71 34 216 250 -
Antamina 33.8% 217 190 249 262 348 610 359
Total 217 190 320 296 564 860 359
BHP Operational Review for the half year ended 31 December 2022 9
Production summary
Quarter ended Year to date
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2021 2022 2022 2022 2022 2022 2021
Iron Ore
Iron Ore
Production (kt) 4
Newman 85% 14,577 11,940 14,063 14,053 16,172 30,225 31,038
Area C Joint Venture 85% 22,911 24,888 27,685 26,971 26,302 53,273 41,858
Yandi Joint Venture 85% 12,261 8,418 6,409 5,497 5,613 11,110 24,095
Jimblebar 5 85% 15,324 13,444 15,005 17,404 17,720 35,124 30,333
Samarco 50% 1,029 994 1,000 1,148 1,095 2,243 2,077
Total 66,102 59,684 64,162 65,073 66,902 131,975 129,401
Coal
Metallurgical coal
Production (kt) 6
BHP Mitsubishi Alliance (BMA) 50% 6,300 7,944 8,183 6,662 6,952 13,614 13,015
Total 6,300 7,944 8,183 6,662 6,952 13,614 13,015
Energy coal
Production (kt)
NSW Energy Coal 100% 2,967 2,577 3,919 2,622 2,851 5,473 7,205
Total 2,967 2,577 3,919 2,622 2,851 5,473 7,205
Other
Nickel
Saleable production (kt)
Nickel West 100% 21.5 18.7 18.8 20.7 17.7 38.4 39.3
Total 21.5 18.7 18.8 20.7 17.7 38.4 39.3
Cobalt
Saleable production (t)
Nickel West 100% 220 125 110 238 93 331 397
Total 220 125 110 238 93 331 397
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 half year ended 31 December 2022 10
Production and sales report
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Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile 1
Material mined (kt) 117,284 107,676 115,409 110,248 101,987 212,235 231,158
Concentrator throughput (kt) 35,787 30,235 34,318 32,894 33,911 66,805 69,315
Average copper grade - concentrator (%) 0.71% 0.80% 0.88% 0.83% 0.76% 0.79% 0.72%
Production ex mill (kt) 203.6 191.5 239.5 214.6 212.8 427.4 404.8
Production
Payable copper (kt) 196.2 178.2 233.5 203.1 208.3 411.4 390.9
Copper cathode (EW) (kt) 48.4 48.2 55.8 49.6 49.7 99.3 97.4
- Oxide leach (kt) 13.1 12.2 17.5 15.2 17.6 32.8 27.9
- Sulphide leach (kt) 35.3 36.0 38.3 34.4 32.1 66.5 69.5
Total copper (kt) 244.6 226.4 289.3 252.7 258.0 510.7 488.3
Payable gold concentrate (troy oz) 42,937 36,303 45,770 38,236 48,402 86,638 84,899
Payable silver concentrate (troy koz) 1,462 1,270 1,311 1,210 1,510 2,720 2,753
Sales
Payable copper (kt) 200.2 177.0 230.4 196.7 216.0 412.7 390.7
Copper cathode (EW) (kt) 49.7 47.2 58.9 45.9 53.5 99.4 96.4
Payable gold concentrate (troy oz) 42,937 36,303 45,770 38,236 48,402 86,638 84,899
Payable silver concentrate (troy koz) 1,462 1,270 1,311 1,210 1,510 2,720 2,753
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 4,782 3,516 3,604 3,179 583 3,762 10,160
Ore stacked (kt) 4,029 3,181 4,259 4,373 4,119 8,492 7,595
Average copper grade - stacked (%) 0.62% 0.53% 0.55% 0.54% 0.56% 0.55% 0.61%
Production
Copper cathode (EW) (kt) 15.3 11.6 14.7 12.8 12.2 25.0 28.7
Sales
Copper cathode (EW) (kt) 16.0 10.5 16.2 13.3 12.2 25.5 28.1
Spence
Material mined (kt) 24,025 24,040 26,749 26,956 26,980 53,936 45,179
Ore stacked (kt) 5,071 5,055 5,099 5,577 5,155 10,732 10,329
Average copper grade - stacked (%) 0.66% 0.67% 0.66% 0.70% 0.66% 0.68% 0.65%
Concentrator throughput (kt) 6,234 6,512 6,311 6,433 7,602 14,035 12,020
Average copper grade - concentrator (%) 0.60% 0.65% 0.66% 0.63% 0.60% 0.61% 0.62%
Production
Payable copper (kt) 24.2 32.4 28.2 28.6 32.5 61.1 50.6
Copper cathode (EW) (kt) 28.8 24.2 34.3 29.2 32.0 61.2 56.5
Total copper (kt) 53.0 56.6 62.5 57.8 64.5 122.3 107.1
Payable gold concentrate (troy oz) 5,776 7,929 8,198 5,521 3,875 9,396 12,743
Payable silver concentrate (troy koz) 215 261 262 252 245 497 488
Payable molybdenum (t) - - 71 34 216 250 -
Sales
Payable copper (kt) 24.9 28.1 28.1 26.0 22.0 48.0 53.3
Copper cathode (EW) (kt) 31.2 20.2 35.4 29.1 33.4 62.5 58.9
Payable gold concentrate (troy oz) 5,776 7,929 8,198 5,521 3,875 9,396 12,743
Payable silver concentrate (troy koz) 215 261 262 252 245 497 488
Payable molybdenum (t) - - 25 25 216 241 -
BHP Operational Review for the half year ended 31 December 2022 11
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Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 58,179 58,118 64,026 63,865 68,750 132,615 124,760
Concentrator throughput (100%) (kt) 13,011 13,135 13,131 13,858 14,272 28,130 26,230
Average head grades
- Copper (%) 1.00% 0.94% 1.02% 0.93% 0.86% 0.89% 0.98%
- Zinc (%) 1.11% 1.13% 1.05% 1.09% 0.99% 1.04% 1.14%
Production
Payable copper (kt) 38.4 36.1 39.6 37.1 35.2 72.3 74.2
Payable zinc (t) 29,603 32,732 27,576 32,685 29,929 62,614 62,892
Payable silver (troy koz) 1,308 1,191 1,212 1,190 923 2,113 2,675
Payable lead (t) 277 282 181 228 114 342 655
Payable molybdenum (t) 217 190 249 262 348 610 359
Sales
Payable copper (kt) 41.9 32.9 40.7 37.6 34.7 72.3 74.6
Payable zinc (t) 32,513 29,920 30,847 33,820 29,127 62,947 65,148
Payable silver (troy koz) 1,405 1,078 1,230 1,015 850 1,865 2,508
Payable lead (t) 344 269 363 130 91 221 576
Payable molybdenum (t) 170 199 205 250 298 548 256
Olympic Dam, Australia
Material mined 1 (kt) 1,998 2,424 2,477 2,412 2,264 4,676 3,933
Ore milled (kt) 1,105 2,122 2,436 2,570 2,687 5,257 3,129
Average copper grade (%) 2.17% 2.21% 2.15% 2.13% 2.08% 2.10% 2.08%
Average uranium grade (kg/t) 0.55 0.62 0.56 0.58 0.58 0.58 0.55
Production
Copper cathode (ER and EW) (kt) 14.2 39.0 55.7 49.7 54.4 104.1 43.7
Payable uranium (t) 287 781 776 817 943 1,760 818
Refined gold (troy oz) 37,805 29,355 26,080 47,184 43,280 90,464 64,082
Refined silver (troy koz) 258 149 145 295 261 556 449
Sales
Copper cathode (ER and EW) (kt) 17.9 36.3 55.8 45.9 56.8 102.7 47.0
Payable uranium (t) 541 236 1,031 272 1,127 1,399 1,077
Refined gold (troy oz) 38,768 30,935 24,622 49,542 41,900 91,442 63,422
Refined silver (troy koz) 290 182 87 320 233 553 416
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
BHP Operational Review for the half year ended 31 December 2022 12
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Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia Iron Ore, Australia
Production
Newman (kt) 14,577 11,940 14,063 14,053 16,172 30,225 31,038
Area C Joint Venture (kt) 22,911 24,888 27,685 26,971 26,302 53,273 41,858
Yandi Joint Venture (kt) 12,261 8,418 6,409 5,497 5,613 11,110 24,095
Jimblebar 1 (kt) 15,324 13,444 15,005 17,404 17,720 35,124 30,333
Total production (kt) 65,073 58,690 63,162 63,925 65,807 129,732 127,324
Total production (100%) (kt) 73,852 66,674 71,660 72,135 74,292 146,427 144,439
Sales
Lump (kt) 17,827 16,966 20,006 19,561 20,375 39,936 35,373
Fines (kt) 46,809 42,187 44,308 42,696 44,121 86,817 91,848
Total (kt) 64,636 59,153 64,314 62,257 64,496 126,753 127,221
Total sales (100%) (kt) 73,222 67,110 72,796 70,276 72,688 142,964 144,037
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
Production (kt) 1,029 994 1,000 1,148 1,095 2,243 2,077
Sales (kt) 950 943 991 1,146 1,097 2,243 2,061
BHP Operational Review for the half year ended 31 December 2022 13
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Coal
Coal production is reported on the basis of saleable product.
BHP Mitsubishi Alliance (BMA), Australia
Production 1
Blackwater (kt) 1,202 1,478 1,751 1,283 1,160 2,443 2,605
Goonyella (kt) 1,797 2,336 2,429 1,780 1,997 3,777 3,595
Peak Downs (kt) 960 1,395 1,366 1,325 1,480 2,805 2,183
Saraji (kt) 1,081 1,366 1,168 1,020 1,243 2,263 2,080
Daunia (kt) 304 338 472 324 441 765 681
Caval Ridge (kt) 956 1,031 997 930 631 1,561 1,871
Total production (kt) 6,300 7,944 8,183 6,662 6,952 13,614 13,015
Total production (100%) (kt) 12,600 15,888 16,366 13,324 13,904 27,228 26,030
Sales
Coking coal (kt) 4,875 6,334 6,734 5,615 5,872 11,487 10,290
Weak coking coal (kt) 754 805 1,118 600 727 1,327 1,488
Thermal coal (kt) 455 484 765 267 428 695 1,031
Total sales (kt) 6,084 7,623 8,617 6,482 7,027 13,509 12,809
Total sales (100%) (kt) 12,168 15,246 17,234 12,964 14,054 27,018 25,618
1 Production figures include some thermal coal.
NSW Energy Coal, Australia
Production (kt) 2,967 2,577 3,919 2,622 2,851 5,473 7,205
Sales - export (kt) 3,718 2,703 3,923 2,441 2,862 5,303 7,498
BHP Operational Review for the half year ended 31 December 2022 14
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Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 47.0 47.1 48.0 42.6 39.6 82.2 100.7
Average nickel grade (%) 13.2 14.4 16.1 17.0 15.5 16.3 13.9
Leinster
Nickel concentrate (kt) 77.4 78.0 76.0 66.8 47.9 114.7 151.2
Average nickel grade (%) 9.1 8.9 10.3 9.9 9.4 9.7 9.0
Saleable production
Refined nickel 1 (kt) 18.2 13.3 11.7 17.5 10.8 28.3 32.6
Nickel sulphate 2 (kt) 0.4 0.7 0.5 1.2 0.4 1.6 0.4
3
Intermediates and nickel by-products (kt) 2.9 4.7 6.6 2.0 6.5 8.5 6.3
Total nickel (kt) 21.5 18.7 18.8 20.7 17.7 38.4 39.3
Cobalt by-products (t) 220 125 110 238 93 331 397
Sales
Refined nickel 1 (kt) 16.9 15.3 11.7 18.1 10.2 28.3 30.7
Nickel sulphate 2 (kt) 0.1 0.7 0.5 0.8 0.5 1.3 0.1
3
Intermediates and nickel by-products (kt) 3.1 2.7 6.4 1.8 7.7 9.5 7.0
Total nickel (kt) 20.1 18.7 18.6 20.7 18.4 39.1 37.8
Cobalt by-products (t) 220 125 110 238 93 331 397
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 half year ended 31 December 2022 15
