BHP OPERATIONAL REVIEW
FOR THE QUARTER ENDED 30 SEPTEMBER 2019
- Group copper equivalent production decreased by 3% in the September 2019 quarter largely due to planned maintenance across a number of operations and natural field decline in Petroleum. Volumes for the 2020 financial year are expected to be slightly higher than last year.
- All production and unit cost guidance (based on exchange rates of AUD/USD 0.70 and USD/CLP 683) remains unchanged for the 2020 financial year.
- All major projects under development are tracking to plan, with the Ruby oil and gas development in Trinidad and Tobago approved during the September 2019 quarter.
- In Petroleum, the Trion 3-DEL appraisal well in Mexico encountered oil in the reservoirs up dip from all previous well intersections. Phase 4 of our deepwater drilling campaign in Trinidad and Tobago was completed, evaluation and development planning studies of the discoveries are ongoing.
- Further high-grade mineralised intercepts of copper, with associated gold, uranium and silver, were confirmed during the second phase of the drilling program at Oak Dam in South Australia. The next drilling phase is expected to commence in November 2019.
|
Production |
Sep YTD19 (vs Sep YTD18) |
Sep Q19 (vs Jun Q19) |
Sep Q19 commentary |
|
Petroleum (MMboe) |
29 (11%) |
29 (1%) |
Impact of Tropical Storm Barry in the Gulf of Mexico and planned maintenance at North West Shelf, partially offset by higher seasonal demand and less maintenance activity at Bass Strait. |
|
Copper (kt) |
430 5% |
430 (3%) |
Record concentrator throughput at Escondida offset by planned maintenance related to the refinery crane replacement at Olympic Dam. |
|
Iron ore (Mt) |
61 (1%) |
61 (3%) |
Volumes at Western Australia Iron Ore (WAIO) lower due to the significant planned maintenance at Port Hedland. |
|
Metallurgical coal (Mt) |
9 (10%) |
9 (21%) |
Lower volumes reflected significant planned wash plant maintenance activities. |
|
Energy coal (Mt) |
6 (15%) |
6 (24%) |
Volumes impacted by higher strip ratios and a change in strategy to focus on higher quality products at New South Wales Energy Coal (NSWEC), and the impact of adverse weather at Cerrejón. |
|
Nickel (kt) |
22 1% |
22 (25%) |
Volumes reflected the impact of planned maintenance and transition to new ore bodies. |
BHP Chief Executive Officer, Andrew Mackenzie, said:
“We delivered a solid start to the 2020 financial year through ongoing strong operational performance across our portfolio. While Group production for the quarter decreased slightly due to the expected impacts of planned maintenance and natural field decline in Petroleum, guidance remains unchanged and we are on track to deliver slightly higher volumes than last financial year. The South Flank iron ore project is 50 per cent complete, with all our major projects on schedule and budget. We achieved further encouraging exploration results in Petroleum and at the Oak Dam copper prospect.”
Further information on BHP can be found at: bhp.com