BHP Group Limited
Operational review for the nine months ended 31 March 2024
Solid operational performance in copper, iron ore and energy coal.
“We remain on track to meet copper, iron ore and energy coal production for the year. Copper volumes have increased by 10 per cent reflecting strong performance and additional tonnes from Copper South Australia, record year-to-date performance from Spence, and improved grades and production at Escondida.
“Western Australia Iron Ore, the lowest cost iron ore producer globally, delivered another consistent period of production despite heavy rainfall. We continue to invest in improvements to our rail and port operations, which are essential for growth in the medium term to 305 million tonnes per annum and beyond.
“At our BMA metallurgical coal operations in Queensland, significant wet weather including the impact of two tropical cyclones and operational challenges impacted production and unit costs, and we have revised guidance for the year. We successfully completed the sale of the Blackwater and Daunia mines on 2 April for a total of up to US$4.1 bn (100%).
“In Canada, the Jansen Stage 1 project remains ahead of its initial schedule and is now 44 per cent complete. In Western Australia, we expect to announce a decision on the future of our nickel business in the coming months, where efforts to optimise operations and preserve value are underway.”
Mike Henry
BHP Chief Executive Officer
Summary
| Operational performance | Portfolio | ||||||||
| Copper production increased 10% | Completed sale of Blackwater and Daunia | ||||||||
| Increased copper production driven by record production at Spence, strong operational performance at Copper South Australia (and the contribution from Prominent Hill and Carrapateena), and improved performance and grade at Escondida.FY24 production guidance for BMA has been lowered to 21.5 – 22.5 Mt (43 – 45 Mt at 100%). Other updates to FY24 production guidance are reflected in the table below. FY24 unit cost guidance1 for BMA has been increased to US$119/t – US$125/t. | We completed the strategic reshaping of our metallurgical coal business with the divestment of BHP Mitsubishi Alliance’s (BMA) Blackwater and Daunia mines to Whitehaven Coal on 2 April for a total cash consideration of up to US$4.1 bn (100%).BMA now has a more focused operational footprint and a greater portion of higher quality metallurgical coal (>85%) which is expected to achieve higher relative margins in a decarbonising world. | ||||||||
| ESG | Governance | ||||||||
| MSCI upgrade | Board update | ||||||||
| In March 2024, ESG ratings provider MSCI upgraded BHP’s overall company score based on their assessment of performance under the Social Pillar. This reflects the progress made in Brazil, including in negotiations, and our commitment to deliver full and fair remediation and compensation. | In March, we announced the appointment of Ross McEwan and Don Lindsay as Non-executive Directors, effective 3 April 2024 and 1 May 2024 respectively. We also announced the retirement of Ian Cockerill as a Non-executive Director, effective 4 April 2024. | ||||||||