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BIL - BHP Billiton Plc - BHP Billiton exploration and development report for
the year ended 30 June 2011
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
News Release
20 July 2011
22/11
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT FOR THE YEAR ENDED 30 JUNE
2011
This report covers the Group`s exploration and development activities for the
June 2011 quarter. Unless otherwise stated, BHP Billiton`s interest in the
projects referred to in this report is 100 per cent and references to project
schedules are based on calendar years.
Development
During the 2011 financial year, BHP Billiton approved 11 major projects with a
total investment value of US$12.9 billion (BHP Billiton share). The
progression of these projects into execution forms a meaningful component of
the company`s anticipated organic growth program that is expected to exceed
US$80 billion over the five years to the end of the 2015 financial year.
Importantly, three major projects delivered first production in the twelve
month period.
The 11 approved projects spanned the major ferrous, non-ferrous and energy
product groups and included: Macedon (natural gas); WAIO Jimblebar Mine
Expansion, WAIO Port Hedland Inner Harbour Expansion, WAIO Port Blending and
Rail Yard Facilities and the Samarco Fourth Pellet Plant (all iron ore);
Queensland Coal Daunia mine development, Queensland Coal Broadmeadow Life
Extension and Queensland Coal Hay Point Stage Three Expansion (all
metallurgical coal); Escondida Ore Access (copper); Hunter Valley Energy Coal
(HVEC) RX1 Project; and the Ekati Misery Open Pit Project (diamonds). The
three completed projects were the South Africa Coal Douglas-Middelburg
Optimisation Project, the HVEC MAC20 Project (both energy coal) and Angostura
Gas Phase II (natural gas).
Angostura Gas Phase II was completed in the recent quarter and delivered first
gas on schedule and below budget. This project will no longer be reported in
future Exploration and Development Reports.
Following the progression of the Jansen Potash Project into feasibility during
the March 2011 quarter, BHP Billiton announced an additional US$488 million
pre-commitment to support development of the project in Saskatchewan, Canada.
Project And Share Of Initial Production Quarterly
Ownership Approved Production Capacity (100%) Progress
Capex US$M Target Date
Petroleum
Projects
Macedon 1,050 CY13 200 million On schedule and
(Australia) cubic feet gas budget. The
71.43% per day. overall project
Gas is 29% complete.
Angostura Gas 180 H1 CY11 280 million First gas
Phase II cubic feet gas delivered on
(Trinidad and per day. schedule and
Tobago) below budget.
45% Refer to News
Gas Release dated 12
May 2011.
Bass Strait 900 CY12 (a) 10,000 bpd On revised
Kipper condensate and schedule and
(Australia) processing budget. The
32.5% - 50% capacity of 80 overall project
Gas/Gas Liquids million cubic is 82% complete.
feet gas per
day.
Bass Strait 1,350 CY13 11,000 bpd On revised
Turrum condensate and schedule and
(Australia) processing budget. The
50% capacity of 200 overall project
Gas/Gas Liquids million cubic is 63% complete.
feet gas per
day.
North West 245 CY11 Replacement On schedule and
Shelf CWLH Life vessel with budget. The
Extension capacity of overall project
(Australia) 60,000 bpd oil. is 94% complete.
16.67%
Oil
North West 850 CY13 2,500 million On budget. Steady
Shelf North cubic feet gas state production
Rankin B Gas per day. remains on track
Compression for CY13, despite
(Australia) a delay in first
16.67% production to
LNG CY13 due to
slower than
expected progress
on topside
fabrication. The
overall project
is 69% complete.
Minerals
Projects
Worsley 2,995 Q1 CY12 1.1 million tpa Budget and
Efficiency & of additional schedule review
Growth alumina completed. See
(Australia) News Release
86% dated 24 June
Alumina 2011. The overall
project is 78%
complete.
Antamina 435 Q4 CY11 Increases ore On schedule and
Expansion processing budget. The
(Peru) capacity to overall project
33.75% 130,000 tpd. is 56% complete.
Copper
Escondida Ore 319 Q2 CY12 The relocation On schedule and
Access (Chile) of the budget. The
57.5% in-pit crushing overall project
Copper and conveyor is 43% complete.
infrastructure
provides access
to higher grade
ore.
EKATI Misery 323 CY15 Project Approval
Open Pit consists of a announced. See
Project pushback of the News Release
(Canada) existing Misery dated 9 May 2011.
80% open pit which
Diamonds was mined from
2001 to 2005.
WAIO RGP5 4,800 H2 CY11 Scope review First production
(Australia) completed and achieved on
85% integrated into schedule, ramp up
Iron Ore subsequent underway. The
expansion overall project
approvals that is 98% complete.
will increase
WAIO capacity
to 220 million
tpa.
WAIO Jimblebar 3,300(b) Q1 CY14 Increases On schedule and
Mine Expansion mining and budget. The
(Australia) processing overall project
96% capacity to 35 is 11% complete.
Iron Ore million tpa
with
incremental
debottlenecking
opportunities
to 55 million
tpa.
WAIO Port 1,900(b) H2 CY12 Increases total On schedule and
Hedland Inner inner harbour budget. The
Harbour capacity to 220 overall project
Expansion million tpa is 30% complete.
(Australia) with
85% debottlenecking
Iron Ore opportunities
to 240 million
tpa.
WAIO Port 1,400(b) H2 CY14 Optimises On schedule and
Blending and resource and budget. The
Rail Yard enhances overall project
Facilities efficiency is 9% complete.
(Australia) across the WAIO
85% supply chain.
Iron Ore
Samarco Fourth 1,750 H1 CY14 Increases iron Approval
Pellet Plant ore pellet announced. See
(Brazil) production News Release
50% capacity by 8.3 dated 29 April
Iron Ore million tpa to 2011.
30.5 million
tpa.
Daunia 800 CY13 Greenfield mine On schedule and
(Australia) development budget. The
50% with capacity overall project
Metallurgical to produce 4.5 is 11% complete.
Coal million tpa of
export
metallurgical
coal.
Broadmeadow 450 CY13 Increases On schedule and
Life Extension productive budget. The
(Australia) capacity by 0.4 overall project
50% million tpa and is 32% complete.
Metallurgical extends life of
Coal the mine by 21
years.
Hay Point Stage 1,250(b) CY14 Increases port On schedule and
Three Expansion capacity from budget. The
(Australia) 44 million tpa overall project
50% to 55 million is 20% complete.
Metallurgical tpa and reduces
Coal storm
vulnerability.
RX1 Project 400 H2 CY13 Increases run- On schedule and
(Australia) of-mine thermal budget. The
100% coal production overall project
Energy Coal by is 26% complete.
approximately 4
million tpa.
Substantial increase to Base Metals Ore Reserves and Mineral Resources
BHP Billiton today announced a 129 per cent increase in the Mineral Resource
surrounding the Escondida mining complex, comprising a 40 per cent increase at
Escondida and initial reporting of Mineral Resources for the Pampa Escondida
and Pinta Verde prospects. This significant increase follows an extensive four
year, US$381m (100% basis) brownfield exploration program, and entrenches
Escondida`s position as the world`s leading copper mine for decades to come.
In addition, BHP Billitons Anatamina JV announced an increase to its estimated
Ore Reserves and Mineral Resources during the second half of the 2011
financial year. At 30 June 2011, Mineral Resources have increased 32 per cent.
Mineral Resources - Escondida (100%)(c)
As at 30 June 2011
Measured Indicated
Resource Resource
Commodity Deposit(d) Ore Type Millions % Millions %
of dry TCu of dry TCu
metric metric
tonnes tonnes
Copper
Escondida(e) Sulphide and sulphide leach 2,937 0.75 2,883 0.57
Oxide 78 0.74 74 0.87
Mixed 74 0.91 79 0.66
Pampa Escondida(f) Sulphide - - 1,585 0.60
Pinta Verde(g) Oxide 12 0.78 39 0.69
Sulphide 1 0.58 10 0.59
Inferred Total Total
Resource Resource as Resource as
at 30 June at 30 June
2011 2010
Commodity Ore Type Millions % Millions % Million % BHP
Deposit(d) of dry TCu of dry TCu s of TCu Billito
metric metric dry n
tonnes tonnes metric interes
tonnes t %
Copper
Escondida(e) Sulphide and 5,725 0.53 11,544 0.59 8,356 0.61 57.5
sulphide leach
Oxide 31 0.64 183 0.76 152 0.80
Mixed 68 0.52 221 0.70 - -
Pampa Sulphide 5,793 0.44 7,378 0.47 - - 57.5
Escondida(f)
Pinta Verde(g) Oxide 52 0.55 103 0.63 - - 57.5
Sulphide 61 0.44 72 0.46 - -
Mineral Resources - Antamina (100%)(h)
As at 30 June 2011
Measured Resource Indicated Resource
Commodity Ore Type Millions % Cu % Zn g/t % Mo Millions % % Zn
g/t %
Deposit of dry Ag of dry Cu Ag
Mo
metric metric
tonnes tonnes
Antamina(i) Sulphide 130 0.91 0.15 7.3 0.03 761 0.94 0.13
9.0 0.
Cu only 03
Sulphide 57 0.72 1.57 13.4 0.01 258 0.84 1.97
14.2 0.
Cu-Zn 01
Inferred Resource
Commodity Deposit Ore Type Millions % Cu % Zn g/t % Mo BHP
of dry Ag Billiton
metric Interest %
tonnes
Antamina(i) Sulphide Cu 531 0.79 0.11 9.2 0.02 33.75
only
Sulphide Cu- 177 0.54 1.33 9.7 0.00
Zn
Total Resource as at 30 Total Resource as at 30
June 2011 June 2010
Commodity Ore Type Millions % Cu % Zn g/t % Mo Millions % Cu % Zn g/t
% Mo
Deposit of dry Ag of dry Ag
metric metric
tonnes tonnes
Antamina(i) Sulphide 1,422 0.88 0.13 8.9 0.02 1,160 0.92 0.15 9.3
0.03
Cu only
Sulphide 492 0.72 1.69 12.5 0.01 288 0.95 1.74 16.4
0.01
Cu-Zn
Ore Reserves - Antamina (100%)(j)
As at 30 June 2011
Proved Ore Reserve Probable Ore Reserve
Commodity Ore Type Millions % Cu % Zn g/t % Mo Millions % Cu % Zn g/t
% Mo
Deposit of dry Ag of dry Ag
metric metric
tonnes tonnes
Antamina Sulphide 95 1.07 0.16 8.3 0.03 485 0.95 0.14 8.9
0.03
Cu only
Sulphide 43 0.81 1.82 14.8 0.01 180 0.83 2.00 14.4
0.01
Cu-Zn
Total Ore Reserve as at Total Ore Reserve as at
30 June 2011 30 June 2010
Commodity Ore Type Millions % Cu % Zn g/t % Mo Millions % Cu % Zn g/t % Mo
BHP
Deposit of dry Ag of dry Ag
Billiton
metric metric Interest
tonnes tonnes %
Antamina Sulphide 580 0.97 0.15 8.8 0.03 516 1.06 0.20 9.5 0.03
33.75
Cu only
Sulphide 223 0.83 1.97 14.5 0.01 161 1.03 2.00 17.5 0.01
Cu-Zn
Minerals Exploration
Greenfield exploration continued on copper targets in South America, Mongolia
and Zambia; nickel and copper targets in Australia and diamond targets in
Canada. Exploration for iron ore, potash, uranium and manganese was undertaken
in a number of regions including Australia, Asia, Africa and the Americas.
For the 2011 financial year, BHP Billiton spent US$683 million on minerals
exploration, of which US$577 million was expensed.
Petroleum Exploration
Exploration and appraisal wells drilled during the quarter or in the process
of drilling as at 30 June 2011.
Well Location BHP Billiton Equity Status
Deep Blue-1 Green Canyon Gulf of 31.875% Temporarily
Mexico (Noble operator) suspended
GC 723 Hydrocarbons
encountered
Mad Dog North-Green Canyon Gulf of 23.9% Drilling ahead
1 Mexico (BP operator)(k)
GC 738
Ho Vang-1 Western Trough 50% Plugged and
Vietnam (Operator) abandoned
Block 29 Dry hole
Bao Dom May-1 Western Trough 50% Drilling ahead (l)
Vietnam (Operator)
Block 28
Argus-2 Browse Basin 40% Drilling ahead
Australia (Woodside operator)
AC/RL 8
Jurjur-1 Sabah Malaysia 60% Drilling ahead
Block N (Operator)
Petroleum exploration expenditure for the 2011 financial year was US$557
million, of which US$404 million was expensed.
(a) Facilities ready for first production pending resolution of mercury
content.
(b) Excludes announced pre-commitment funding.
(c) Competent Person - O. Cortes (MAusIMM).
The statement of Mineral Resources is presented on a 100 per cent basis and is
based on information compiled by the above named Competent Person and relates
to Mineral Resources estimates as at 30 June 2011. Mr. Cortes is a full time
employee of Teck Resources Ltd (at the time of estimation Mr. Cortes was a
full time employee of Escondida), has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a Competent Person as defined in the
JORC Code, and he is a member of the Australasian Institute of Mining &
Metallurgy (AusIMM). The Competent Person consents to the inclusion in this
report of the matters based on their information in the form and context in
which it appears.
(d) %TCu - per cent total copper.
(e) Escondida - The increase in Mineral Resource tonnes from 2010 is largely
due to step-out and infill drilling results, and partly due to updated metal
prices. Ore type classification has changed from process type to
mineralisation style, combining Sulphide Mill and Sulphide Leach categories.
(f) Pampa Escondida - Pampa Escondida is a newly discovered porphyry copper
deposit of hypogene mineralisation (chalcopyrite-bornite) that is located at
depth between the Escondida and Escondida Norte mines. It has been developed
by 260,000m of drilling, most of which is in a regular 150x150m grid that
averages 1,400m in depth. Eighty percent of the Inferred Resources is
categorised as being Interpolated Resources and are within a drilling grid up
to 300 x 300 m.
(g) Pinta Verde - Pinta Verde is a newly declared Mineral Resource, based on a
resource estimated from more than 76,500m of drilling. It is located 4km to
the north of the Escondida mine, forming the western extension of the Zaldivar
deposit, and is being evaluated as potential leach feed to the Escondida Oxide
or Sulfide Leach facilities. The Pinta Verde deposit is an enriched and
partially oxidised deposit overlying very low-grade hypogene mineralisation.
(h) Competent Person - Jhon Espinoza (MAusIMM).
The statement of Mineral Resources is presented on a 100 per cent basis, is
reported as being inclusive of Ore Reserves, and is based on information
compiled by the above named Competent Person and relates to Mineral Resources
estimates as at 30 June 2011. Mr. Espinoza is a full time employee of BHP
Billiton. Mr. Espinoza has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity he
is undertaking to qualify as a Competent Person as defined in the JORC Code,
and he is a member of the Australasian Institute of Mining & Metallurgy
(AusIMM). The Competent Person consents to the inclusion in this report of the
matters based on their information in the form and context in which it
appears.
(i) Antamina - The increase in Mineral Resource tonnes from 2010 are due to
incorporation of data obtained from over 150,000 meters of additional core
drilling and the application of revised prices.
(j) Competent Person - Luis Lozada (MAusIMM).
The statement of Ore Reserves is presented on a 100 per cent basis and is
based on information compiled by the above named Competent Person and relates
to Ore Reserves estimates as at 30 June 2011. Mr. Lozada is a full time
employee of Compania Minera Antamina S.A. Mr. Lozada has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity he is undertaking to qualify as a Competent
Person as defined in the JORC Code, and he is a member of the Australasian
Institute of Mining & Metallurgy (AusIMM). The Competent Person consents to
the inclusion in this report of the matters based on their information in the
form and context in which it appears.
(k) BHP Billiton is operator of the well.
(l) Well completed subsequent to 30 June 2011. The well was a dry hole and
will be plugged and abandoned. Well costs through 30 June 2011 will be
expensed in the financial year 2011 results.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
Sponsor Absa Capital (the investment banking division of Absa Bank Limited,
affiliated with Barclays Capital)
Media Relations
Australia
Samantha Stevens, Media Relations
Tel: +61 3 9609 2898 Mobile: +61 400 693 915
email: Samantha.Stevens@bhpbilliton.com
Kelly Quirke, Media Relations
Tel: +61 3 9609 2896 Mobile: +61 429 966 312
email: Kelly.Quirke@bhpbilliton.com
Fiona Martin, Media Relations
Tel: +61 3 9609 2211 Mobile: +61 427 777 908
email: Fiona.Martin2@bhpbilliton.com
United Kingdom and Americas
Ruban Yogarajah, Media Relations
Tel: US +1 713 966 2907 or UK +44 20 7802 4033
Mobile: UK +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com
Investor Relations
Australia
Andrew Gunn, Investor Relations
Tel: +61 3 9609 3575 Mobile: +61 439 558 454
email: Andrew.Gunn@bhpbilliton.com
United Kingdom and South Africa
Brendan Harris , Investor Relations
Tel: +44 20 7802 4131
Mobile: +61 437 134 814
email: Brendan.Harris@bhpbilliton.com
Americas
Scott Espenshade, Investor Relations
Tel: +1 713 599 6431 Mobile: +1 713 208 8565
email: Scott.Espenshade@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077
Registered in Australia
Registered Office: 180 Lonsdale Street
Melbourne Victoria 3000 Australia
Tel +61 1300 55 4757 Fax +61 3 9609 3015
BHP Billiton Plc Registration number 3196209
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Registered Office: Neathouse Place
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Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
Date: 20/07/2011 07:48:01 Supplied by www.sharenet.co.za
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