Page 306 - Annual Report 2020

6.5 Major projects

At the end of FY2020, BHP had six major projects under development in petroleum, copper, iron ore and potash, with a combined budget
of US$11.4 billion over the life of the projects.
Capital and exploration expenditure of US$7.6 billion in FY2020 was within guidance. Capital and exploration expenditure of approximately
US$7 billion is now expected for FY2021 and is approximately US$1 billion lower than previous guidance predominantly due to the deferral
of a number of our petroleum projects in order to maximise value. This guidance includes a US$0.7 billion exploration program in FY2021,
with approximately US$450 million for petroleum exploration and appraisal expenditure.
Projects in execution at the end of FY2020
Date of initial production Capital expenditure (US$M) (1)
Commodity Project and ownership Capacity (1) Target Budget
Projects under development
Petroleum Atlantis Phase 3 New subsea production system that will CY2020 696
(US Gulf of Mexico) tie back to the existing Atlantis facility,
44% (non-operator) with capacity to produce up to 38,000
gross barrels of oil equivalent per day.
On schedule and on budget. First
production achieved in July 2020.
Overall project is 79% complete
Petroleum Ruby Five production wells tied back into CY2021 283
(Trinidad and Tobago) existing operated processing facilities,
68.46% (operator) with capacity to produce up to 16,000
gross barrels of oil per day and
80 million gross standard cubic feet of
natural gas per day. On schedule and on
budget. Overall project is 28% complete
Petroleum Mad Dog Phase 2 New floating production facility with CY2022 2,154
(US Gulf of Mexico) the capacity to produce up to 140,000
23.9% (non-operator) gross barrels of crude oil per day.
On schedule and on budget. Overall
project is 77% complete
Iron Ore South Flank (Australia) Sustaining iron ore mine to replace CY2021 3,061
85% (operator) production from the 80 Mtpa Yandi
Mine. Overall project is 76% complete
Copper Spence Growth Option New 95 ktpd concentrator is expected FY2021 2,460
(Chile) to incrementally increase Spence’s
payable copper in concentrate
production by approximately 185 ktpa
in the first 10 years of operation and
extend the mining operations by more
than 50 years. Overall project
is 93% complete. Project approved
on 17 August 2017
8,654

Other projects in progress at the end of FY2020
Capital expenditure (US$M) (1)
Commodity Project and ownership Scope Budget
Projects under development
Potash Jansen Potash Project Investment to finish the excavation and lining of the production 2,700
(Canada) 100% and service shafts, and continue the installation of essential
surface infrastructure and utilities
2,700
(1) Unless noted otherwise, references to capacity are on a 100 per cent basis, references to capital expenditure from subsidiaries are reported on a 100 per cent basis
and references to capital expenditure from joint operations reflect BHP’s share.

304 BHP Annual Report 2020