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NEWS RELEASE Release Time IMMEDIATE Date 20 January 2021 01/21 BHP Release Number BHP OPERATIONAL REVIEW FOR THE HALF YEAR ENDED 31 DECEMBER 2020 Note : All guidance is subject to further potential impacts from COVID - 19 during the 2021 financial year . We achieved another strong operational performance during the half . Measures to counter the risk from COVID - 19 remain in place . • Record production was achieved at Western Australia Iron Ore ( WAIO ) and record average concentrator throughput was delivered at Escondida . Group copper equivalent production was broadly flat in the December 2020 half year . Strong underlying operational performance offset the impacts of planned maintenance , natural field decline , copper grade decline and adverse weather . Production guidance for the 2021 financial year remains unchanged for petroleum and metallurgical coal . Iron ore guidance has increased to between 245 and 255 Mt as a result of the restart of Samarco in December 2020. Copper guidance has been narrowed to between 1,510 and 1,645 kt and reflects strong performance at Escondida . Energy coal guidance has been reduced to between 21 and 23 Mt following a 91 - day strike at Cerrejón . • Full year unit cost guidance ( 1 ) ( based on exchange rates of AUD / USD 0.70 and USD / CLP 769 ) remains unchanged for the 2021 financial year . • Our major projects under development are progressing to plan . The Spence Growth Option achieved first production in December 2020 , on schedule and on budget . The Jansen Stage 1 project remains on track for Final Investment Decision in the middle of the 2021 calendar year . South Flank is tracking well and is on schedule for first production in the middle of the 2021 calendar year . In petroleum , we completed the acquisition of an additional 28 % interest in Shenzi , a tier one asset with optionality , on 6 November 2020 . The financial results for the December 2020 half year are expected to reflect certain items as summarised in the table on page 3 and includes an impairment charge of between US $ 1.15 billion and US $ 1.25 billion post tax ( exceptional item ) in relation to New South Wales Energy Coal ( NSWEC ) and associated deferred tax assets . Production Petroleum ( MMboe ) Copper ( kt ) Iron ore ( Mt ) Dec H20 Dec Q20 Dec Q20 vs Sep Q20 commentary ( vs Dec19 ) ( vs Sep Q20 ) 50.5 ( 12 % ) 841.3 ( 5 % ) 128.4 6 % 23.8 Lower volumes due to Hurricanes Delta and Zeta in the Gulf of Mexico and lower ( 11 % ) seasonal demand at Bass Strait , partially offset by additional Shenzi volumes from 6 November 2020 , on completion of the acquisition of an increased working interest . 428.1 Higher volumes as a result of quarterly concentrator throughput record at Escondida 4 % and planned maintenance at Spence that impacted September 2020 quarter production . 62.4 Lower volumes at WAIO reflects planned Mining Area C and South Flank major tie - in ( 6 % ) activity , weather impacts and a temporary power disruption at Yarnima . Samarco re - commenced iron ore pellet production in December 2020 . 9.5 Lower volumes at Queensland Coal due to significant wet weather events impacting ( 2 % ) operations and unplanned maintenance at South Walker Creek . Metallurgical coal ( Mt ) 19.2 ( 5 % ) Energy coal ( Mt ) 8.2 ( 30 % ) Nickel ( kt ) 46.2 31 % 24.0 Higher volumes due to planned maintenance undertaken in the prior period . 8 % 3.6 Lower volumes at NSWEC in response to reduced export shipping capacity at ( 23 % ) Newcastle Port and lower volumes at Cerrejón as a result of a 91 - day strike . BHP Operational Review for the half year ended 31 December 2020 1