BHP Group Limited — Interim / Quarterly Report 2021

Jul 19, 2021

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Release Time IMMEDIATE Date 20 July 2021 Release Number 09/21

BHP OPERATIONAL REVIEW FOR THE YEAR ENDED 30 JUNE 2021

Note: All guidance is subject to further potential impacts from COVID-19 during the 2022 financial year.

• Record production was achieved at Western Australia Iron Ore (WAIO) and Goonyella. Olympic Dam achieved both the highest annual copper production since the acquisition by BHP in 2005 and the highest gold production ever for the operation. Escondida maintained average concentrator throughput at record levels despite a challenging operating environment in Chile as a result of impacts from COVID-19.

 Petroleum production for the 2021 financial year was slightly above guidance. Full year production guidance for copper, iron ore, metallurgical coal and nickel were delivered, as was revised guidance for energy coal.

 Full year unit cost guidance[(1) ] expected to be achieved for WAIO, Escondida and Queensland Coal (based on exchange rates of AUD/USD 0.70 and USD/CLP 769). Petroleum unit costs are expected to be slightly better than guidance. New South Wales Energy Coal (NSWEC) unit costs are expected to be marginally above guidance.

 During the year, we successfully achieved first production at four major development projects, all of which were delivered on or ahead of schedule and on budget. The South Flank iron ore project in Western Australia and the Ruby oil and gas project in Trinidad and Tobago both achieved first production in May 2021. The Atlantis Phase 3 petroleum project and the Spence Growth Option copper project achieved first production in the first half of the 2021 financial year.

 In exploration, we have continued to add to our early stage options in future facing commodities throughout the year, with the signing of an agreement for a nickel exploration alliance in Canada and of a farm-in agreement for the Elliott copper project in Australia. At Oak Dam in South Australia, next stage resource definition drilling to inform future design commenced in May 2021.

• The financial results for the second half of the 2021 financial year are expected to reflect certain items as summarised in the table on page 3.

Production	FY21	Jun Q21	Jun Q21 vs Mar Q21 commentary
	(vs FY20)	(vs Mar Q21)
Petroleum (MMboe)	102.8	27.0	Increased volumes due to higher seasonal demand at Bass Strait and improved
	(6%)	6%	uptime at Atlantis.
Copper (kt)	1,635.7	403.0	Higher volumes as a result of the ongoing ramp up of concentrate production at
	(5%)	3%	Spence following first production at the Spence Growth Option in December 2020.
Iron ore (Mt)	253.5	65.2	Increased volumes at WAIO reflects record quarterly production at Mining Area C, which
	2%	9%	included first ore from South Flank in May 2021, and continued strong operational
			performance enabled by improved supply chain reliability.
Metallurgical coal (Mt)	40.6	11.8	Higher volumes at Queensland Coal reflects a strong underlying operational
	(1%)	23%	performance, including record quarterly production at Goonyella and BMA, following
			significant wet weather impacts in the prior period.
Energy coal (Mt)	19.3	6.3	Higher volumes at NSWEC due to record wash plant performance and lower strip
	(17%)	31%	ratios, and significant weather impacts in the prior period.
Nickel (kt)	89.0	22.4	Higher volumes due to planned maintenance undertaken in the prior period.
	11%	10%

Group copper equivalent production for the 2021 financial year was broadly in line with the prior year. Group copper equivalent production for the 2022 financial year is expected to be in line with the 2021 financial year despite continued impacts from a reduction in operational workforces in our Chilean copper assets in response to COVID-19 and petroleum natural field decline.

BHP Operational Review for the year ended 30 June 2021

1

Summary

BHP Chief Executive Officer, Mike Henry:

“BHP safely delivered another year of excellent operational performance and its second consecutive financial year with zero fatalities at our operated assets. We set several production records and brought on four major projects safely, on schedule and on budget.

This strong performance is a reflection of the capability and commitment of our employees and contractors, the strength of our systems and the support of our business partners.

We achieved production records at our Western Australia Iron Ore operations and the Goonyella Riverside metallurgical coal mine in Queensland. We maintained all-time high concentrator throughput at our Escondida copper mine in Chile. Olympic Dam in South Australia had its highest annual copper production since BHP acquired the asset in 2005, and its best-ever gold production.

South Flank, the largest and one of the most technically-advanced iron ore mines in Australia, began production in May and will boost the overall quality of BHP’s iron ore product suite. In the same month, the Ruby project in Trinidad and Tobago started production. Atlantis Phase 3 in the Gulf of Mexico and the Spence expansion in Chile began production in the first half of the year.

BHP is in great shape. Our operations are performing well, we continue our track record of disciplined capital allocation, and our portfolio is positively leveraged to the megatrends of decarbonisation, electrification and population growth.”

Operational performance

Production and guidance are summarised below.

Note: All guidance is subject to further potential impacts from COVID-19 during the 2022 financial year.

			FY21	Jun Q21	Jun Q21
		Jun	vs	vs	vs	FY22	FY22e
Production	FY21	Q21	FY20	Jun Q20	Mar Q21	guidance	vs FY21
Petroleum (MMboe)	102.8	27.0	(6%)	2%	6%	99 – 106	(4%) – 3%
Copper (kt)	1,635.7	403.0	(5%)	(3%)	3%	1,590 – 1,760	(3%) – 8%
Escondida (kt)	1,068.2	246.7	(10%)	(16%)	(1%)	1,000 – 1,080	(6%) – 1%
Pampa Norte (kt)	218.2	69.4	(10%)	27%	33%	330 – 370	51% – 70%
Olympic Dam (kt)	205.3	50.8	20%	7%	(8%)	140 – 170	(32%) – (17%)
Antamina (kt)	144.0	36.1	16%	103%	4%	120 – 140	(17%) – (3%)
Iron ore (Mt)	253.5	65.2	2%	(2%)	9%	249 – 259	(2%) – 2%
WAIO (Mt)	251.6	64.2	1%	(4%)	9%	246 – 255	(2%) – 1%
WAIO (100% basis) (Mt)	284.1	72.8	1%	(4%)	9%	278 – 288	(2%) – 1%
Samarco (Mt)	1.9	1.0	100%	100%	17%	3 – 4	55% – 106%
Metallurgical coal (Mt)	40.6	11.8	(1%)	2%	23%	39 – 44	(4%) – 8%
Queensland Coal (100% basis) (Mt)	72.5	21.1	0%	2%	22%	70 – 78	(3%) – 8%
Energy coal (Mt)(i)	19.3	6.3	(17%)	11%	31%	13 – 15	(33%) – (22%)
NSWEC (Mt)	14.3	4.5	(11%)	(8%)	51%	13 – 15	(9%) – 5%
Cerrejón (Mt)(i)	5.0	1.8	(30%)	133%	(1%)	n/a	n/a
Nickel (kt)	89.0	22.4	11%	(6%)	10%	85 – 95	(4%) – 7%

(i) We will no longer provide production guidance for Cerrejón reflecting the announced divestment of our interest in June 2021 and volumes will be reported separately from 1 July 2021 until transaction completion.

BHP Operational Review for the year ended 30 June 2021

2

Summary of disclosures

BHP expects its financial results for the second half of the 2021 financial year 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 17 August 2021. Accordingly the information is subject to update.

	H2 FY21
	impact
Description	US$M(i)	Classification(ii)
Unit costs for WAIO, Escondida and Queensland Coal are expected to be in line with full year		Operating costs
guidance (at guidance exchange rates), with Escondida tracking towards the low end of guidance
and WAIO tracking towards the upper end of guidance
Note: stronger Australian dollar and Chilean peso than guidance rates in the period(iii)
Petroleum unit costs are expected to be slightly better than full year guidance driven by higher		↓ Operating costs
than expected volumes
NSWEC unit costs are expected to be marginally above full year guidance largely as a result of		↑ Operating costs
lower volumes due to significant weather impacts and an increased proportion of washed coal in
response to widening price quality differentials, consistent with our strategy to focus on higher
quality products
Increase in closure and rehabilitation provision for closed mines (reported in group and	375 - 425	↑ Operating costs
unallocated, approximately 75 per cent of the increase) and closed sites at Petroleum and WAIO
Business development and evaluation expense for Petroleum	90	Development and
		evaluation expense
Exploration expense (including petroleum and minerals exploration programs)	430	Exploration expense
Higher depreciation and amortisation mainly at Yandi (due to a decrease in life of mine) and	450 - 500 ↑ Depreciation, amortisation
Bass Strait (due to a decrease in estimated reserves)		and impairments
The Group’s adjusted effective tax rate for FY21 is expected to be within the guidance range of		Taxation expense
32 to 37 per cent
Dividends paid to non-controlling interests	~1,400	↑ Financing cash outflow
Impairment charge related to the announced divestment of Cerrejón (after tax)	~85	↑ Exceptional item charge
Costs directly attributable to COVID-19 (after tax)(iv)	150 - 200	↑ Exceptional item charge
Financial impact on BHP Brasil of the Samarco dam failure	Refer footnote(v)	↑ Exceptional item charge

(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.

(iii) Average exchange rates for FY21 of AUD/USD 0.75 (guidance rate AUD/USD 0.70) and USD/CLP 746 (guidance rate USD/CLP 769).

(iv) Relates to additional costs incurred at our operated assets for the increased provision of health and hygiene services and the impacts of maintaining social distancing requirements. For example, additional accommodation and cleaning costs at the Spence Growth Option project and additional port costs at WAIO due to quarantine restrictions.

(v) Financial impact is the subject of ongoing work and is not yet finalised.

Major development projects

During the year, we successfully achieved first production at four major development projects, all of which were delivered on or ahead of schedule and on budget.

The Atlantis Phase 3 petroleum project and the Spence Growth Option copper project achieved first production in the first half of the 2021 financial year.

During the June 2021 quarter, the South Flank iron ore sustaining project in Western Australia and the Ruby oil and gas project in Trinidad and Tobago achieved first production. Given this, South Flank and Ruby project progress will not be reported in future Operational Reviews.

At the end of the 2021 financial year, BHP had two major projects under development in petroleum (Mad Dog Phase 2) and potash (Jansen mine shafts), with both of these tracking to plan.

The Jansen Stage 1 project in Canada remains on track for a go or no-go decision in the next two months.

BHP Operational Review for the year ended 30 June 2021

3

Corporate update

On 28 June 2021, BHP announced that it had signed a Sale and Purchase Agreement with Glencore to divest its 33.3 per cent interest in Cerrejón, a non-operated energy coal joint venture in Colombia, for US$294 million cash consideration. Subject to the satisfaction of customary competition and regulatory requirements, we expect completion to occur in the second half of the 2022 financial year. The transaction has an effective economic date of 31 December 2020. The purchase price is subject to adjustments at transaction completion, including for any dividends paid by Cerrejón to BHP during the period from signing to completion. A further impairment charge related to Cerrejón of approximately US$85 million post tax will be recognised as an exceptional item in the financial results for the second half of the 2021 financial year. For the 2021 financial year, BHP will continue to report Cerrejón, including the impairment charge, in its Income Statement within profit/(loss) from equity accounted investments. It will continue to be reported within our Coal segment and asset tables. On the Balance Sheet, it will be reclassified as an asset held for sale. Beyond the 2021 financial year, BHP expects the sale of Cerrejón to complete with no net impact on BHP’s Income Statement and, as a result, we would no longer report it in our Coal segment or asset tables.

The broader carrying value assessment of the Group’s assets is ongoing with a particular focus on Jansen and NSWEC, and will be finalised in conjunction with the release of the financial results on 17 August 2021.

On 9 April 2021, Samarco announced that it filed for judicial reorganisation (JR) with the Commercial Courts of Belo Horizonte, State of Minas Gerais, Brazil (JR Court). On 12 April 2021, the JR Court accepted the case and appointed four judicial administrators. On 5 July 2021, the judicial administrators filed a revised list of creditors with the JR Court, which kept shareholders’ claims as listed by Samarco, with the Renova Foundation not listed as a creditor. This excludes the Renova Foundation’s funding and programs from the JR. The revised list of creditors is not final as it is still open to discussion before the JR court. The JR is a means for Samarco to restructure its financial debts in order to establish a sustainable independent financial position for Samarco to continue to rebuild its operations safely and meet its Renova Foundation obligations. Samarco's filing follows unsuccessful attempts to negotiate a debt restructure with financial creditors and multiple legal actions filed by those creditors which threaten Samarco’s operations. Samarco’s operations will continue during the JR and restructure process. The JR does not affect Samarco’s obligation or commitment to make full redress for the 2015 Fundão dam failure, and it does not impact Renova Foundation’s ability to undertake that remediation and compensation.

In addition, negotiations are ongoing with State and Federal Prosecutors and certain other Brazilian public authorities on the review of the Framework Agreement. The Framework Agreement was entered into between Samarco, Vale and BHP Brasil and the relevant Brazilian authorities in March 2016 and established Foundation Renova to develop and implement environmental and socio-economic programs to remediate and provide compensation for damage caused by 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 17 August 2021. Any financial impacts will continue to be treated as an exceptional item.

We have continued to take action to support the reduction of value chain greenhouse gas emissions. On 21 April 2021, we announced the signing of a Memorandum of Cooperation to become one of the founding members of the Maritime Decarbonisation Centre to be set up in Singapore. The Maritime Decarbonisation Centre will be a focal point for the global maritime industry’s efforts in both decarbonisation and innovation, bringing together experts and the industry, including start-ups to develop technologies and co-create innovative solutions. BHP is the only resources company that is part of the alliance.

BHP Operational Review for the year ended 30 June 2021

4

Average realised prices

The average realised prices achieved for our major commodities are summarised below.

Average realisedprices(i) Jun H21	Dec H20 FY21 FY20	FY21	Jun H21	Jun H21 vs Dec H20
		vs	vs
		FY20	Jun H20
Oil (crude and condensate) (US$/bbl) 63.05	41.40 52.56 49.53	6%	68%	52%
Natural gas (US$/Mscf)(ii) 4.86	3.83 4.34 4.04	8%	29%	27%
LNG (US$/Mscf) 7.04	4.45 5.63 7.26	(22%)	2%	58%
Copper (US$/lb) 4.34	3.32 3.81 2.50	52%	82%	31%
Iron ore (US$/wmt, FOB) 158.17	103.78 130.56 77.36	69%	106%	52%
Metallurgical coal (US$/t) 114.81	97.61 106.64 130.97	(19%)	(5%)	18%
Hard coking coal (US$/t)(iii) 118.54	106.30 112.72 143.65	(22%)	(11%)	12%
Weak coking coal (US$/t)(iii) 104.40	73.17 89.62 92.59	(3%)	24%	43%
Thermal coal (US$/t)(iv) 70.83	44.35 58.42 57.10	2%	27%	60%
Nickel metal (US$/t) 17,537	15,140 16,250 13,860	17%	41%	16%

(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) Includes internal sales.

(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; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

The large majority of oil sales were linked to West Texas intermediate (WTI) or Brent based indices, with differentials applied for quality, locational and transportation costs. 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 were based on an average moisture rate of 7.3 per cent. The large majority of metallurgical coal and energy coal exports were linked to index pricing for the month of shipment or sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality. The 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 2021, the Group had 323 kt of outstanding copper sales that were revalued at a weighted average price of US$4.25 per pound. The final price of these sales will be determined in the 2022 financial year. In addition, 304 kt of copper sales from the 2020 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase Underlying EBITDA[(2)] by US$47 million in the 2021 financial year and are included in the average realised copper price in the above table.

BHP Operational Review for the year ended 30 June 2021

5

Petroleum

Production

Production
			FY21	Jun Q21	Jun Q21
			vs	vs	vs
	FY21	Jun Q21	FY20	Jun Q20	Mar Q21
Crude oil, condensate and natural gas liquids (MMboe)	46.0	12.2	(6%)	7%	5%
Natural gas (bcf)	340.6	88.6	(5%)	(1%)	7%
Total petroleum production (MMboe)	102.8	27.0	(6%)	2%	6%

Petroleum – Total petroleum production decreased by six per cent to 103 MMboe, with volumes slightly above the top end of our guidance range. Production is expected to be between 99 and 106 MMboe in the 2022 financial year, reflecting a full year of the additional 28 per cent working interest acquired in Shenzi, increased production at Shenzi from infill wells and increased volumes from Ruby following first production in May 2021, offset by natural field decline across the portfolio.

Crude oil, condensate and natural gas liquids production decreased by six per cent to 46 MMboe due to natural field decline across the portfolio, a highly active hurricane season in the Gulf of Mexico in the first half of the year and downtime at Atlantis, with tie-in activity in the first half of the year and unplanned downtime in the March 2021 quarter. These impacts were partially offset by the earlier than scheduled achievement of first production from the Atlantis Phase 3 project in July 2020 and the additional working interest acquired in Shenzi, completed on 6 November 2020.

Natural gas production decreased by five per cent to 341 bcf, reflecting planned shutdowns at Angostura related to the Ruby tie-in, lower gas demand at Bass Strait and natural field decline across the portfolio. The decline was partially offset by improved reliability at Bass Strait and higher domestic gas sales at Macedon.

Projects

Projects
Project and	Capital	Initial	Capacity	Progress
ownership	expenditure	production
	US$M	target date
Ruby	283	H1 CY21	Five production wells tied back into	First production achieved in May 2021,
(Trinidad & Tobago)			existing operated processing facilities, with	ahead of schedule and on budget.
68.46% (operator)			capacity to produce up to 16,000 gross	The drilling and completion activities of
			barrels of oil per day and 80 million gross	the remaining wells will continue to be
			standard cubic feet of natural gas per day.	progressed as part of the planned
				asset activities.
Mad Dog Phase 2	2,154	Mid-CY22	New floating production facility with the	On schedule and budget.
(US Gulf of Mexico)			capacity to produce up to 140,000 gross	The overall project is 93% complete.
23.9% (non-operator)			barrels of crude oil per day.

The Bass Strait West Barracouta project achieved first production in April 2021, on schedule and budget.

In May 2021, we completed a transaction with EnVen Energy Ventures, LLC to transfer our 35 per cent ownership interest in the operated Neptune field in the Gulf of Mexico.

In the June 2021 quarter, drilling commenced on the second Shenzi infill well. Drilling of the first Shenzi infill well took place in March 2021, with production expected from both infill wells in the 2022 financial year. The successful acquisition of an increased working interest in Shenzi in November 2020 realises further value from the continued Shenzi development.

The Mad Dog Phase 2 project achieved a major milestone in April 2021 as the semi-submersible floating production platform, Argos, arrived in the US from South Korea. First production from Mad Dog Phase 2 is expected in the middle of the 2022 calendar year.

Petroleum exploration

No exploration and appraisal wells were drilled during the June 2021 quarter.

In Trinidad and Tobago, the Transocean drilling rig (Development Driller III) arrived on location in our Northern licences in June 2021 and is preparing to commence drilling of two Calypso gas appraisal wells in July 2021.

Petroleum exploration expenditure for the 2021 financial year was US$322 million, of which US$296 million was expensed. Our exploration spend for the full year is lower than guidance due to changes in appraisal well phasing from the June 2021 quarter to the September 2021 quarter.

BHP Operational Review for the year ended 30 June 2021

6

Copper

Production

Production
			FY21	Jun Q21	Jun Q21
			vs	vs	vs
	FY21	Jun Q21	FY20	Jun Q20	Mar Q21
Copper (kt)	1,635.7	403.0	(5%)	(3%)	3%
Zinc (t)	145,089	35,483	64%	158%	7%
Uranium (t)	3,267	614	(11%)	(40%)	(26%)

Copper – Total copper production decreased by five per cent to 1,636 kt. Production for the 2022 financial year is expected to be between 1,590 and 1,760 kt.

For the 2021 financial year, our Chilean assets operated with a substantial reduction in their operational workforces as a result of the preventative measures we implemented to mitigate the impact of COVID-19. In the June 2021 quarter, escalating COVID-19 infections in Chile led to increased pressures on Chile’s health system, which resulted in strict quarantine measures and border restrictions. We expect the operating environment for our Chilean assets to remain challenging, with reductions in our on-site workforce forecast to continue in the 2022 financial year.

Escondida copper production decreased by 10 per cent to 1,068 kt as continued strong concentrator throughput of 371 ktpd, at record levels, was more than offset by the impact of expected lower concentrator feed grade and lower cathode production. This was slightly above the upper end of our increased guidance range as a result of improved maintenance practices and strong mine equipment performance. Concentrator throughput continued to be prioritised over cathode production in the June 2021 quarter as part of an effort to offset the impact of the reduced operational workforce. Production of between 1,000 and 1,080 kt is expected for the 2022 financial year and reflects a continuing need to catch up on mine development due to reduced material movement in the 2021 financial year, as well as uncertainty around COVID-19 impacts. Decline in the copper grade of concentrator feed in the 2022 financial year is expected to be approximately two per cent. Guidance of an annual average of 1.2 Mt of copper production over the next five years remains unchanged, with production expected to be weighted towards the latter years.

On 1 April 2021, Escondida successfully completed negotiations for a new collective agreement that applies to the Intermel Union of Operators and Maintainers, effective for 24 months from 1 April 2021. Escondida’s collective agreement with Union N[o] 1 of Operators and Maintainers expires on 1 August 2021 and negotiations commenced in June 2021.

Pampa Norte copper production decreased by 10 per cent to 218 kt largely due to a decline in stacking feed grade at Spence of 11 per cent , planned maintenance at Spence and the impact of a reduced operational workforce as a result of COVID-19 restrictions. This was slightly lower than guidance due to continued COVID-19 related impacts on the ramp-up of the Spence Growth Option (SGO). Production for the 2022 financial year is expected to increase by more than 50 per cent to between 330 and 370 kt, reflecting the continued ramp-up of SGO, partially offset by a forecast decline in stacking feed grade at Pampa Norte of approximately nine per cent. The ramp-up to full production capacity at SGO is still expected to take approximately 12 months from first production in December 2020, following which Spence is forecast to average 300 ktpa of production (including cathodes) over the first four years of operation.

On 10 June 2021, Spence successfully completed negotiations for a new collective agreement that applies to the Union of Operators and Maintainers, effective for 36 months from 1 June 2021.

On 7 June 2021, we completed negotiations for an extension of the current agreement with the Specialists and Supervisors Union of BHP Chile (comprising mainly employees from the Centre of Integrated Operations in Santiago that services Escondida and Spence), effective for 18 months from 1 June 2021.

Olympic Dam copper production increased by 20 per cent to 205 kt, the highest annual production achieved since our acquisition in 2005, reflecting improved smelter stability and strong underground mine performance. Olympic Dam also achieved record gold production of 146 koz. Commissioning of the refinery crane is now complete. Production for the 2022 financial year is expected to decrease to between 140 and 170 kt as a result of the planned major smelter maintenance campaign and subsequent ramp up planned between August 2021 and February 2022.

Antamina copper production increased 16 per cent to 144 kt and zinc production increased 64 per cent to a record 145 kt, reflecting both higher copper and zinc head grades. Copper production of between 120 and 140 kt, and zinc production of between 115 and 130 kt is expected for the 2022 financial year.

BHP Operational Review for the year ended 30 June 2021

7

Iron Ore

Production

Production
			FY21	Jun Q21	Jun Q21
			vs	vs	vs
	FY21	Jun Q21	FY20	Jun Q20	Mar Q21
Iron ore production (kt)	253,534	65,245	2%	(2%)	9%

Iron ore – Total iron ore production increased by two per cent to 254 Mt. Production of between 249 and 259 Mt is expected in the 2022 financial year.

WAIO production increased by one per cent to a record 252 Mt (284 Mt on a 100 per cent basis), reflecting record production at Jimblebar and Mining Area C, which included first ore from South Flank in May 2021. This was achieved despite significant weather impacts, temporary rail labour shortages due to COVID-19 related border restrictions and the planned Mining Area C and South Flank major tie-in activity. Strong operational performance across the supply chain reflected continued improvements in car dumper performance and reliability, and train cycle times.

Yandi resource has commenced its end-of-life ramp-down as South Flank ramps up, and is expected to continue to provide supply chain flexibility with a lower level of production to continue for a few years.

Production of between 246 and 255 Mt (278 and 288 Mt on a 100 per cent basis) is expected for the 2022 financial year as WAIO continues to focus on incremental volume growth through productivity improvements. We continue with our program to further improve port reliability and this includes a major maintenance campaign on car dumper one planned for the September 2021 quarter.

Samarco production was 1.9 Mt following the recommencement of iron ore pellet production at one concentrator in December 2020. Production of between 3 and 4 Mt (BHP share) is expected for the 2022 financial year. Production capacity of approximately 8 Mtpa (100 per cent basis) is expected to be reached in the second half of the 2022 financial year.

Projects

Projects
	Capital	Initial
Project and	expenditure	production
ownership	**US$M **	target date	Capacity	Progress
South Flank	3,061	Mid-CY21	Sustaining iron ore mine to replace	First production achieved in May 2021,
(Australia)			production from the 80 Mtpa (100 per	on schedule and on budget.
85%			cent basis) Yandi mine.

South Flank will ramp up to full production capacity of 80 Mtpa (100 per cent basis) over three years. South Flank’s high quality ore will increase WAIO’s average iron ore grade from 61 to 62 per cent, and the overall proportion of lump from 25 to between 30 and 33 per cent, once fully ramped up.

BHP Operational Review for the year ended 30 June 2021

8

Coal

Production

Production
			FY21	Jun Q21	Jun Q21
			vs	vs	vs
	FY21	Jun Q21	FY20	Jun Q20	Mar Q21
Metallurgical coal (kt)	40,625	11,823	(1%)	2%	23%
Energy coal (kt)	19,290	6,276	(17%)	11%	31%

Metallurgical coal – Metallurgical coal production decreased by one per cent to 41 Mt (73 Mt on a 100 per cent basis), in line with original guidance. Production is expected to be between 39 and 44 Mt (70 and 78 Mt on a 100 per cent basis) in the 2022 financial year as we expect restrictions on coal imports into China to remain for a number of years. Production is expected to be weighted to the second half of the year due to planned wash plant maintenance in the first half of the year.

At Queensland Coal, strong underlying operational performance, including record production at Goonyella facilitated by record tonnes from Broadmeadow mine, was offset by significant wet weather impacts across most operations earlier in the year, as well as planned wash plant maintenance at Saraji and Caval Ridge in the first half of the year. At South Walker Creek, despite record stripping, production decreased as a result of higher strip ratios due to ongoing impacts from geotechnical constraints and lower yields.

Energy coal – Energy coal production decreased by 17 per cent to 19 Mt. Production is expected to decrease to between 13 and 15 Mt in the 2022 financial year, reflecting the announced divestment of our interest in Cerrejón in June 2021 and that Cerrejón volumes will now be separately reported from 1 July 2021 until transaction completion.

NSWEC production decreased by 11 per cent to 14 Mt despite increased stripping. This decrease reflects significant weather impacts and higher strip ratios, as well as lower volumes due to an increased proportion of washed coal in response to widening price quality differentials, consistent with our strategy to focus on higher quality products, and reduced port capacity following damage to a shiploader at the Newcastle port in November 2020. The shiploader is expected to be back in operation during the September 2021 quarter. Production is expected to be between 13 and 15 Mt in the 2022 financial year reflecting a continued focus on higher quality products.

Cerrejón production decreased by 30 per cent to 5 Mt mainly as a result of a 91-day strike in the first half of the year and subsequent delays to the restart of production, as well as the impact of a reduced operational workforce due to COVID-19 restrictions. On 28 June 2021, BHP announced it had signed a Sale and Purchase Agreement with Glencore to divest its 33.3 per cent interest in Cerrejón. The transaction has an effective economic date of 31 December 2020. Subject to the satisfaction of customary competition and regulatory requirements, we expect completion to occur in the second half of the 2022 financial year.

BHP Operational Review for the year ended 30 June 2021

9

Other

Nickel production

Nickelproduction
			FY21	Jun Q21	Jun Q21
			vs	vs	vs
	FY21	Jun Q21	FY20	Jun Q20	Mar Q21
Nickel (kt)	89.0	22.4	11%	(6%)	10%

Nickel – Nickel West production increased by 11 per cent to 89 kt reflecting strong performance from the new mines and improved operational stability following major quadrennial maintenance shutdowns in the prior year. Production is expected to be between 85 and 95 kt in the 2022 financial year, with planned maintenance in the September 2021 quarter. First production from the Nickel Sulphate plant expected in the September 2021 quarter.

Potash – Final negotiations on the port solution are progressing. The Jansen Stage 1 project in Canada remains on track for a go or no-go decision in the next two months.

Potash project

Potashproject
Project and	Investment
ownership	US$M	Scope	Progress
Jansen Potash	2,972	Investment to finish the excavation and lining of the	The project is 93% complete.
(Canada)		production and service shafts, and to continue the
100%		installation of essential surface infrastructure and
		utilities.

Minerals exploration

Minerals exploration expenditure for the 2021 financial year was US$192 million, of which US$134 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets in Chile, Ecuador, Mexico, Peru, Canada, Australia and the south-west United States, and nickel targets are being advanced in Canada and Australia.

We have continued to add to our early stage options in future facing commodities throughout the year. We have a signed agreement for a nickel exploration alliance with Midland Exploration in Canada (August 2020) and we have exercised our option to sign a farm-in agreement with Encounter Resources for the Elliott copper project in Australia (May 2021).

Drilling for copper targets is underway in Chile, Ecuador, Peru and the United States, while further drilling is anticipated for copper and nickel in Australia during the 2021 calendar year. At Oak Dam in South Australia, next stage resource definition drilling to inform future design commenced in May 2021.

BHP Operational Review for the year ended 30 June 2021

10

Variance analysis relates to the relative performance of BHP and/or its operations during the 2021 financial year compared with the 2020 financial year, 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. Copper equivalent production based on 2021 financial year average realised prices.

The following footnotes apply to this Operational Review:

• (1) 2021 financial year unit cost guidance: Petroleum US$11-12/boe, Escondida US$0.95-1.10/lb, WAIO US$13-14/t, Queensland Coal US$74-78/t and NSWEC US$55-59/t; based on exchange rates of AUD/USD 0.70 and USD/CLP 769.

• (2) Underlying EBITDA is used to help assess current operational profitability excluding the impacts of sunk costs (i.e. depreciation from initial investment). Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, discontinued operations and exceptional items. Underlying EBITDA includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit).

The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); 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); metre (m); million barrels of oil equivalent (MMboe); million barrels of oil per day (MMbpd); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand barrels of oil equivalent per day (Mboe/d); thousand ounces (koz); thousand standard cubic feet (Mscf); 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, BHP Group plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 29 ‘Subsidiaries’ in section 5.1 of BHP’s 30 June 2020 Annual Report and Form 20-F. 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, Cerrejón, Samarco, Atlantis, Mad Dog, Bass Strait and North West Shelf. 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 2021

11

Further information on BHP can be found at: bhp.com

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Judy Dane Tel: +1 713 961 8283 Mobile: +1 713 299 5342

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Europe, Middle East and Africa

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BHP Operational Review for the year ended 30 June 2021

12

Production summary

Production summary
BHP interest	Jun Sep Dec Mar Jun Jun Jun 2020 2020 2020 2021 2021 2021 2020 ~~Jun-20~~ ~~Sep-20~~ ~~Dec-20~~ ~~Mar-21~~ ~~Jun-21~~ Year to date Quarter ended
Petroleum (1)
Petroleum Production Crude oil, condensate and NGL (Mboe) Natural gas (bcf) Total (Mboe)	11,355 11,507 10,729 11,601 12,205 46,042 48,863 89.8 90.9 78.5 82.6 88.6 340.6 359.6 26,322 26,657 23,812 25,368 26,972 102,809 108,796
Copper (2)
Copper Payable metal in concentrate (kt) Escondida(3) 57.5% Pampa Norte(4) 100.0% Antamina 33.8% Total Cathode (kt) Escondida(3) 57.5% Pampa Norte(4) 100% Olympic Dam 100% Total Total copper (kt) Lead Payable metal in concentrate (t) Antamina 33.8% Total Zinc Payable metal in concentrate (t) Antamina 33.8% Total Gold Payable metal in concentrate (troy oz) Escondida(3) 57.5% Olympic Dam (refined gold) 100% Total Silver Payable metal in concentrate (troy koz) Escondida(3) 57.5% Antamina 33.8% Olympic Dam (refined silver) 100% Total Uranium Payable metal in concentrate (t) Olympic Dam 100% Total Molybdenum Payable metal in concentrate (t) Antamina 33.8% Total	228.5 236.7 236.7 202.7 195.6 871.7 925.9 - - 0.7 5.6 21.1 27.4 - 17.8 34.6 38.6 34.7 36.1 144.0 124.5 246.3 271.3 276.0 243.0 252.8 1,043.1 1,050.4 65.5 47.9 50.9 46.6 51.1 196.5 259.4 54.5 42.5 53.6 46.4 48.3 190.8 242.7 47.6 51.5 47.6 55.4 50.8 205.3 171.6 167.6 141.9 152.1 148.4 150.2 592.6 673.7 413.9 413.2 428.1 391.4 403.0 1,635.7 1,724.1 262 690 993 468 381 2,532 1,671 262 690 993 468 381 2,532 1,671 13,736 34,398 41,909 33,299 35,483 145,089 88,462 13,736 34,398 41,909 33,299 35,483 145,089 88,462 43,422 42,332 47,789 37,954 38,893 166,968 177,422 34,150 36,608 23,837 37,075 48,478 145,998 145,972 77,572 78,940 71,626 75,029 87,371 312,966 323,394 1,599 1,580 1,627 1,318 1,234 5,759 6,413 626 1,326 1,767 1,463 1,409 5,965 4,116 295 157 193 275 185 810 984 2,520 3,063 3,587 3,056 2,828 12,534 11,513 1,016 874 945 834 614 3,267 3,678 1,016 874 945 834 614 3,267 3,678 243 284 192 276 111 863 1,666 243 284 192 276 111 863 1,666

BHP Operational Review for the year ended 30 June 2021

13

Production summary

Production summary
BHP interest	Jun Sep Dec Mar Jun Jun Jun 2020 2020 2020 2021 2021 2021 2020 Year to date Quarter ended
Iron Ore
Iron Ore Production (kt)(5) Newman 85% Area C Joint Venture 85% Yandi Joint Venture 85% Jimblebar(6) 85% Wheelarra 85% Samarco 50% Total	17,110 16,410 17,637 14,614 14,560 63,221 65,641 13,973 11,889 11,567 13,010 15,920 52,386 51,499 19,087 17,666 16,413 16,112 18,405 68,596 69,262 16,559 20,075 16,740 15,241 15,337 67,393 61,754 - - - - - - 3 - - 37 878 1,023 1,938 - 66,729 66,040 62,394 59,855 65,245 253,534 248,159
Coal
Metallurgical coal Production (kt) (7) BMA 50% BHP Mitsui Coal(8) 80% Total Energy coal Production (kt) NSW Energy Coal 100% Cerrejón 33.3% Total	9,078 7,365 7,539 7,727 9,253 31,884 31,575 2,536 2,325 1,983 1,863 2,570 8,741 9,543 11,614 9,690 9,522 9,590 11,823 40,625 41,118 4,887 3,624 3,229 2,981 4,492 14,326 16,052 767 1,038 347 1,795 1,784 4,964 7,115 5,654 4,662 3,576 4,776 6,276 19,290 23,167
Other
Nickel Saleable production (kt) Nickel West (9) 100% Total Cobalt Saleable production (t) Nickel West 100% Total	23.9 22.2 24.0 20.4 22.4 89.0 80.1 23.9 22.2 24.0 20.4 22.4 89.0 80.1 312 238 236 273 241 988 775 312 238 236 273 241 988 775

(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe.

(2) Metal production is reported on the basis of payable metal.

(3) Shown on a 100% basis. BHP interest in saleable production is 57.5%.

(4) Includes Cerro Colorado and Spence.

(5) Iron ore production is reported on a wet tonnes basis.

(6) Shown on a 100% basis. BHP interest in saleable production is 85%.

(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

(8) Shown on a 100% basis. BHP interest in saleable production is 80%.

(9) Production restated to include other nickel by-products.

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 2021

14

Production and sales report

	Jun Sep Dec Mar Jun 2020 2020 2020 2021 2021 Quarter ended	Year to date
		Jun Jun 2021 2020
Petroleum(1)
Bass Strait Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total petroleum products (Mboe) North West Shelf Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Pyrenees Crude oil and condensate (Mboe) Total petroleum products (Mboe) Other Australia(2) Crude oil and condensate (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Atlantis(3) Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Mad Dog (3) Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Shenzi (3) (4) Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Trinidad/Tobago Crude oil and condensate (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Other Americas (3) (5) Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total petroleum products (Mboe) Algeria Crude oil and condensate (Mboe) Total petroleum products (Mboe)	1,231 1,305 1,003 859 1,205 1,493 1,660 1,057 1,035 1,563 28.1 34.1 23.4 22.7 32.8 7,408 8,648 5,960 5,677 8,235 1,260 1,215 1,180 1,183 933 203 162 165 188 177 35.2 29.6 30.4 31.1 26.5 7,334 6,310 6,412 6,554 5,527 971 837 826 679 690 971 837 826 679 690 1 1 1 1 - 11.9 12.7 12.6 12.4 12.6 1,987 2,118 2,101 2,068 2,100 2,223 2,421 2,385 2,590 3,117 54 154 147 171 218 1.1 1.2 1.1 1.4 1.6 2,456 2,775 2,715 2,994 3,602 1,297 1,211 930 1,209 1,099 33 48 38 57 77 0.3 0.2 0.1 0.2 0.2 1,374 1,292 985 1,299 1,209 1,584 1,395 1,764 2,328 2,023 40 71 87 130 87 0.4 0.3 0.3 0.4 0.1 1,686 1,516 1,901 2,525 2,127 72 102 96 139 236 12.8 12.8 10.5 14.4 14.7 2,201 2,235 1,846 2,539 2,686 198 212 190 187 104 5 2 11 - 8 - - 0.1 - 0.1 209 214 218 187 129 690 711 849 845 668 690 711 849 845 668	4,372 4,993 5,315 5,666 113.0 110.9
		28,520 29,149
		4,511 5,239 692 796 117.6 135.2
		24,803 28,569
		3,032 3,801
		3,032 3,801
		3 11 50.3 46.5
		8,387 7,770
		10,513 11,276 690 669 5.3 5.6
		12,086 12,880
		4,449 4,867 220 189 0.7 0.9
		4,785 5,195
		7,510 6,245 375 298 1.1 1.2
		8,069 6,740
		573 510 52.4 58.9
		9,306 10,319
		693 957 21 33 0.2 0.4
		748 1,059
		3,073 3,313
		3,073 3,313

BHP Operational Review for the year ended 30 June 2021

15

Production and sales report

	Jun Sep Dec Mar Jun 2020 2020 2020 2021 2021 Quarter ended	Year to date
		Jun Jun 2021 2020
Petroleum(1)
Total production Crude oil and condensate (Mboe) NGL (Mboe) Natural gas (bcf) Total (Mboe)	9,527 9,410 9,224 10,020 10,075 1,828 2,097 1,505 1,581 2,130 89.8 90.9 78.5 82.6 88.6 26,322 26,657 23,812 25,368 26,972	38,729 41,212 7,313 7,651 340.6 359.6
		102,809 108,796

(1) Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe. Negative production figures represent finalisation adjustments.

(2) Other Australia includes Minerva and Macedon. Minerva ceased production in September 2019.

(3) Gulf of Mexico volumes are net of royalties.

(4) BHP completed the acquisition of an additional 28% working interest in Shenzi on 6 November 2020, taking its total working interest to 72%.

(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

BHP Operational Review for the year ended 30 June 2021

16

Production and sales report

	Jun Sep Dec Mar Jun 2020 2020 2020 2021 2021 Quarter ended	Year to date
		Jun Jun 2021 2020
Copper
Escondida, Chile (1) Material mined (kt) 75,062 83,357 97,274 95,978 104,043 Sulphide ore milled (kt) 34,755 34,733 36,303 32,654 31,903 Average concentrator head grade (%) 0.81% 0.85% 0.83% 0.78% 0.77% Production ex mill (kt) 236.8 243.9 246.1 207.8 202.8 Production Payable copper (kt) 228.5 236.7 236.7 202.7 195.6 Copper cathode (EW) (kt) 65.5 47.9 50.9 46.6 51.1 - Oxide leach (kt) 26.8 15.3 18.0 16.1 14.5 - Sulphide leach (kt) 38.7 32.6 32.9 30.5 36.6 Total copper (kt) 294.0 284.6 287.6 249.3 246.7 Payable gold concentrate (troy oz) 43,422 42,332 47,789 37,954 38,893 Payable silver concentrate (troy koz) 1,599 1,580 1,627 1,318 1,234 Sales Payable copper (kt) 221.0 237.1 244.3 196.9 194.1 Copper cathode (EW) (kt) 72.1 46.5 47.7 49.6 49.6 Payable gold concentrate (troy oz) 43,422 42,332 47,789 37,954 38,893 Payable silver concentrate (troy koz) 1,599 1,580 1,627 1,318 1,234 (1) Shown on a 100% basis. BHP interest in saleable production is 57.5%. Metals production is payable metal unless otherwise stated.		380,652 383,413 135,593 135,810 0.81% 0.84% 900.6 957.9 871.7 925.9 196.5 259.4 63.9 106.3 132.6 153.1
		1,068.2 1,185.3
		166,968 177,422 5,759 6,413 872.4 903.5 193.4 260.9 166,968 177,422 5,759 6,413
Pampa Norte, Chile Cerro Colorado Material mined (kt) Ore milled (kt) Average copper grade (%) Production Copper cathode (EW) (kt) Sales Copper cathode (EW) (kt) Spence Material mined (kt) Ore milled(1) (kt) Average copper grade(2) (%) Production Payable copper (kt) Copper cathode (EW) (kt) Sales Payable copper (kt) Copper cathode (EW) (kt)	15,734 12,618 6,750 6,153 5,498 4,553 4,036 3,562 3,283 3,702 0.60% 0.66% 0.58% 0.58% 0.58% 16.9 15.8 15.8 13.9 14.7 18.7 14.6 16.6 13.2 15.4 24,082 18,260 18,485 19,195 21,262 2,829 4,408 6,809 8,007 9,538 0.95% 1.10% 0.76% 0.62% 0.67% - - 0.7 5.6 21.1 37.6 26.7 37.8 32.5 33.6 - - - 1.8 20.8 41.0 24.1 40.9 30.7 34.1	31,019 67,617 14,583 18,131 0.60% 0.56% 60.2 67.5 59.8 67.3 77,202 91,558 28,762 18,788 0.74% 0.91% 27.4 - 130.6 175.2 22.6 - 129.8 176.8

(1) June 2021 quarter comprised of concentrator throughput of 4,929 kt and cathode throughput of 4,609 kt. June 2021 year to date comprised of concentrator throughput of 8,607 kt and cathode throughput of 20,155 kt.

(2) June 2021 quarter weighted average of concentrate grade of 0.63% and cathode grade of 0.72%. June 2021 year to date weighted average of concentrate grade of 0.59% and cathode grade of 0.81%.

BHP Operational Review for the year ended 30 June 2021

17

Production and sales report

	Jun Sep Dec Mar Jun Jun Jun 2020 2020 2020 2021 2021 2021 2020 Year to date Quarter ended
Copper (continued)
Metals production is payable metal unless otherwise stated. Antamina, Peru Material mined (100%) (kt) 13,975 45,458 57,029 53,762 63,393 219,642 189,370 Sulphide ore milled (100%) (kt) 6,736 13,202 14,083 12,651 13,466 53,402 46,400 Average head grades - Copper (%) 0.91% 0.94% 0.97% 0.94% 0.93% 0.95% 0.94% - Zinc (%) 1.02% 1.30% 1.30% 1.16% 1.24% 1.25% 0.92% Production Payable copper (kt) 17.8 34.6 38.6 34.7 36.1 144.0 124.5 Payable zinc (t) 13,736 34,398 41,909 33,299 35,483 145,089 88,462 Payable silver (troy koz) 626 1,326 1,767 1,463 1,409 5,965 4,116 Payable lead (t) 262 690 993 468 381 2,532 1,671 Payable molybdenum (t) 243 284 192 276 111 863 1,666 Sales Payable copper (kt) 18.2 33.8 40.7 31.7 37.3 143.5 125.7 Payable zinc (t) 11,680 32,769 45,109 34,141 32,044 144,063 86,691 Payable silver (troy koz) 581 1,310 1,728 1,342 1,540 5,920 3,746 Payable lead (t) 188 748 945 689 556 2,938 1,615 Payable molybdenum (t) 223 392 352 192 268 1,204 1,327
Olympic Dam, Australia Material mined(1) (kt) 1,963 2,203 2,379 1,979 2,143 8,704 8,707 Ore milled (kt) 2,454 2,443 2,377 2,238 2,429 9,487 8,985 Average copper grade (%) 2.13% 2.03% 2.01% 2.02% 1.95% 2.00% 2.27% Average uranium grade (kg/t) 0.60 0.53 0.60 0.61 0.56 0.57 0.66 Production Copper cathode (ER and EW) (kt) 47.6 51.5 47.6 55.4 50.8 205.3 171.6 Payable uranium (t) 1,016 874 945 834 614 3,267 3,678 Refined gold (troy oz) 34,150 36,608 23,837 37,075 48,478 145,998 145,972 Refined silver (troy koz) 295 157 193 275 185 810 984 Sales Copper cathode (ER and EW) (kt) 48.5 49.5 46.6 55.6 52.7 204.4 171.0 Payable uranium (t) 1,293 859 999 779 907 3,544 3,411 Refined gold (troy oz) 37,743 36,054 21,390 38,852 47,300 143,596 151,279 Refined silver (troy koz) 270 222 165 242 245 874 981

(1) Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.

BHP Operational Review for the year ended 30 June 2021

18

Production and sales report

	Jun Sep Dec Mar Jun Jun Jun 2020 2020 2020 2021 2021 2021 2020 Year to date Quarter ended
n Ore
estern Australia Iron Ore, Australia Production Newman (kt) 17,110 16,410 17,637 14,614 14,560 63,221 65,641 Area C Joint Venture (kt) 13,973 11,889 11,567 13,010 15,920 52,386 51,499 Yandi Joint Venture (kt) 19,087 17,666 16,413 16,112 18,405 68,596 69,262 Jimblebar(1) (kt) 16,559 20,075 16,740 15,241 15,337 67,393 61,754 Wheelarra (kt) - - - - - - 3 Total production (kt) 66,729 66,040 62,357 58,977 64,222 251,596 248,159 Total production (100%) (kt) 75,589 74,152 70,407 66,695 72,848 284,102 281,058 Sales Lump (kt) 17,252 17,056 16,703 15,593 16,410 65,762 63,636 Fines (kt) 50,904 48,390 46,124 42,939 48,837 186,290 186,962 Total (kt) 68,156 65,446 62,827 58,532 65,247 252,052 250,598 Total sales (100%) (kt) 77,048 73,355 70,772 66,032 73,712 283,871 283,259 n ore production and sales are reported on a wet tonnes basis.

Iron Ore

Iron ore production and sales are reported on a wet tonnes basis.

Western Australia Iron Ore, Australia

(1) Shown on a 100% basis. BHP interest in saleable production is 85%.

Samarco, Brazil (1)
Production	(kt)	-	-	37	878	1,023	1,938	-
Sales	(kt)	-	-	-	646	1,052	1,698	-

(1) Samarco commenced iron ore pellet production in December 2020 after meeting the licencing requirements to restart operations at the Germano complex in Minas Gerais and Ubu complex in Espírito Santo, Brazil.

BHP Operational Review for the year ended 30 June 2021

19

Production and sales report

	Jun Sep Dec Mar Jun Jun Jun 2020 2020 2020 2021 2021 2021 2020 Year to date Quarter ended
Coal
Queensland Coal, Australia Production (1) BMA Blackwater (kt) 1,703 1,184 1,737 1,416 1,887 6,224 5,545 Goonyella (kt) 2,651 2,312 2,152 2,232 2,752 9,448 8,765 Peak Downs (kt) 1,635 1,487 1,213 1,595 1,597 5,892 5,783 Saraji (kt) 1,399 817 1,043 1,238 1,391 4,489 4,963 Daunia (kt) 588 490 464 496 478 1,928 2,170 Caval Ridge (kt) 1,102 1,075 930 750 1,148 3,903 4,349 Total BMA (kt) 9,078 7,365 7,539 7,727 9,253 31,884 31,575 Total BMA (100%) (kt) 18,156 14,730 15,078 15,454 18,506 63,768 63,150 BHP Mitsui Coal (2) South Walker Creek (kt) 1,264 1,238 1,118 1,031 1,500 4,887 5,415 Poitrel (kt) 1,272 1,087 865 832 1,070 3,854 4,128 Total BHP Mitsui Coal (kt) 2,536 2,325 1,983 1,863 2,570 8,741 9,543 Total Queensland Coal (kt) 11,614 9,690 9,522 9,590 11,823 40,625 41,118 Total Queensland Coal (100%) (kt) 20,692 17,055 17,061 17,317 21,076 72,509 72,693 Sales BMA Coking coal (kt) 7,547 6,187 6,531 6,752 7,801 27,271 27,701 Weak coking coal (kt) 1,040 977 936 1,038 1,069 4,020 3,289 Thermal coal (kt) 183 58 3 206 400 667 531 Total BMA (kt) 8,770 7,222 7,470 7,996 9,270 31,958 31,521 Total BMA (100%) (kt) 17,540 14,444 14,940 15,992 18,540 63,916 63,041 BHP Mitsui Coal (2) Coking coal (kt) 778 671 604 357 535 2,167 2,782 Weak coking coal (kt) 1,756 1,545 1,518 1,404 2,027 6,494 6,783 Total BHP Mitsui Coal (kt) 2,534 2,216 2,122 1,761 2,562 8,661 9,565 Total Queensland Coal (kt) 11,304 9,438 9,592 9,757 11,832 40,619 41,086 Total Queensland Coal (100%) (kt) 20,074 16,660 17,062 17,753 21,102 72,577 72,606 (1) Production figures include some thermal coal. (2) Shown on a 100% basis. BHP interest in saleable production is 80%. Coal production is reported on the basis of saleable product.
NSW Energy Coal, Australia Production (kt) 4,887 3,624 3,229 2,981 4,492 14,326 16,052 Sales Export thermal coal (kt) 4,871 3,168 3,940 2,827 4,691 14,626 15,301 Inland thermal coal(1) (kt) - - - - - - 567 Total (kt) 4,871 3,168 3,940 2,827 4,691 14,626 15,868 (1) The domestic sales contract ended in the September 2019 quarter.
Cerrejón, Colombia Production (kt) 767 1,038 347 1,795 1,784 4,964 7,115 Sales thermal coal - export (kt) 1,143 994 370 1,746 1,619 4,729 7,501

BHP Operational Review for the year ended 30 June 2021

20

Production and sales report

	Jun Sep Dec Mar Jun Jun Jun 2020 2020 2020 2021 2021 2021 2020 Year to date Quarter ended
Other
Nickel West, Australia Mt Keith Nickel concentrate (kt) 60.2 64.4 55.7 54.1 50.4 224.6 178.2 Average nickel grade (%) 16.5 15.8 14.7 13.3 13.3 14.4 16.9 Leinster Nickel concentrate (kt) 72.0 66.2 72.8 71.5 71.4 281.9 253.6 Average nickel grade (%) 10.2 9.0 9.5 10.2 10.5 9.8 9.7 Saleable production Refined nickel(1) (2) (kt) 20.5 17.3 20.4 15.2 17.1 70.0 65.6 Intermediates and nickel by-products(1) (3) (kt) 3.4 4.9 3.6 5.2 5.3 19.0 14.5 Total nickel (1) (kt) 23.9 22.2 24.0 20.4 22.4 89.0 80.1 Cobalt by-products (t) 312 238 236 273 241 988 775 Sales Refined nickel(1) (2) (kt) 19.7 17.1 20.9 15.0 17.8 70.8 64.1 Intermediates and nickel by-products(1) (3) (kt) 4.2 4.6 2.6 5.9 4.0 17.1 15.5 Total nickel (1) (kt) 23.9 21.7 23.5 20.9 21.8 87.9 79.6 Cobalt by-products (t) 312 238 237 273 241 989 787 Nickel production is reported on the basis of saleable product

(1) Production and sales restated to include other nickel by-products.

(2) High quality refined nickel metal, including briquettes and powder.

(3) Nickel contained in matte and by-product streams.

BHP Operational Review for the year ended 30 June 2021

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