BHP : Release Number - Form 6-K

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 (vs Dec H21)			Dec Q22 (vs Sep Q22)			Dec Q22 vs Sep Q22 commentary
Copper (kt)			834.4 12%				424.3 3%			Higher volumes at Escondida due to higher throughput, higher concentrate volumes 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 2%				66.9 3%			Record production at WAIO in the month of December 2022 due to strong supply chain performance and reduced impacts of labour constraints and wet weather.
Metallurgical coal (Mt)			13.6 5%				7.0 4%			Higher volumes due to improved strip ratios and the planned longwall move at Broadmeadow in the prior period, partially offset by continued significant wet weather.
Energy coal (Mt)			5.5 (24%)				2.9 9%			Higher volumes due to improved operating conditions, including less significant wet 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 (2%)				17.7 (14%)			Lower volumes due to planned maintenance at the smelter and refinery.

BHP Operational Review for the half year ended 31 December 2022		1

Summary

Operational performance

Production and guidance are summarised below.

Production		Dec H22			Dec Q22			Dec H22 vs Dec H21			Dec Q22 vs Dec Q21			Dec Q22 vs Sep Q22			Previous FY23 guidance			Current FY23 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.

Description		H1 FY23 impact US$Mi			Classificationii
Unit costs for the December 2022 half year at Escondida are expected to be towards the upper 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			-				Operating costs
For the 2023 financial year, unit costs at WAIO and Escondida are tracking towards the upper 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			-				Operating 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 guidance range of 30 to 35 per cent			-				Taxation expense
Working capital movements relating to royalties, net price impacts on receivables and payables, and other movements			1,000-1,400			i	Operating cash flow
Settlement of derivative related to the funding of the final FY22 dividend (note: together with 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)			~210			i	Operating cash flow
Additional net proceedsiv received from the sale of BHP's 80 per cent interest in BMC			74			h	Investing cash flow
Dividends paid to non-controlling interests			527			i	Financing cash flow
Financial impact on BHP Brasil of the Samarco dam failure The financial impact is expected to primarily relate to amortisation of discounting on the provision and the impact of foreign exchange			Refer footnote	v			Exceptional item

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.

Average realised pricesi		Dec H22			Dec H21			Jun H22			FY22			Dec H22 vs Dec H21			Dec H22 vs Jun H22			Dec H22 vs 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$/t)			268.73				259.71				423.82				347.10				3	%			(37	%)			(23	%)
Hard coking coal (US$/t)ii			270.65				278.60				437.60				366.82				(3	%)			(38	%)			(26	%)
Weak coking coal (US$/t)ii			252.12				218.65				382.56				296.51				15	%			(34	%)			(15	%)
Thermal coal (US$/t)iii			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 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

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.

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 H22 vs Dec H21			Dec Q22 vs Dec Q21			Dec Q22 vs 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 H22 vs Dec H21			Dec Q22 vs Dec Q21			Dec Q22 vs 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 H22 vs Dec H21			Dec Q22 vs Dec Q21			Dec Q22 vs 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 H22 vs Dec H21			Dec Q22 vs Dec Q21			Dec Q22 vs 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 ownership

Capital expenditure US$M

Initial production target date

Capacity

Progress

Jansen Stage 1 (Canada) 100%

5,723

End-CY26

Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.35 Mtpa.

Project is 16% complete

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

Media Relations		Investor Relations
Email: [e-mail]		Email: [e-mail]
Australia and Asia		Australia and Asia
Gabrielle Notley		Dinesh Bishop
Tel: [phone] Mobile: [phone]		Mobile: [phone]
Europe, Middle East and Africa		Europe, Middle East and Africa
Neil Burrows		James Bell
Tel: [phone] Mobile: [phone]		Tel: [phone] Mobile: [phone]
Americas		Americas
Renata Fernandez		Monica Nettleton
Mobile: [phone]		Mobile: [phone]

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 [phone] Fax [phone]

BHP Group is headquartered in Australia

Follow us on social media

BHP Operational Review for the half year ended 31 December 2022		8

Production summary

					Quarter ended			Year to date
		BHP interest			Dec 2021			Mar 2022			Jun 2022			Sep 2022			Dec 2022			Dec 2022			Dec 2021
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 interest			Dec 2021			Mar 2022			Jun 2022			Sep 2022			Dec 2022			Dec 2022			Dec 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

				Quarter ended			Year to date
				Dec 2021			Mar 2022			Jun 2022			Sep 2022			Dec 2022			Dec 2022			Dec 2021
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

Production and sales report

				Quarter ended			Year to date
				Dec 2021			Mar 2022			Jun 2022			Sep 2022			Dec 2022			Dec 2022			Dec 2021
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

Production and sales report

				Quarter ended			Year to date
				Dec 2021			Mar 2022			Jun 2022			Sep 2022			Dec 2022			Dec 2022			Dec 2021
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

Production and sales report

					Quarter ended			Year to date
					Dec 2021			Mar 2022			Jun 2022			Sep 2022			Dec 2022			Dec 2022			Dec 2021
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

Production and sales report

					Quarter ended			Year to date
					Dec			Mar			Jun			Sep			Dec			Dec			Dec
					2021			2022			2022			2022			2022			2022			2021
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
Intermediates and nickel by-products3			(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
Intermediates and nickel by-products3			(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