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BIL - BHP Billiton Plc - Exploration and development report For the quarter
ended 31 March 2012
BHP BILLITON PLC
SHARE CODE: BIL
ISIN: GB0000566504
NEWS RELEASE
18 April 2012
11/12
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 31 MARCH 2012
This report covers the Group`s exploration and development activities for the
March 2012 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
BHP Billiton`s commitment to developing its portfolio of high return growth
projects, diversified by commodity, geography and market was further
reinforced by the approval of additional investment in its world class Base
Metals, Iron Ore and Petroleum businesses.
During the March 2012 quarter, BHP Billiton announced approval of the US$2.2
billion (BHP Billiton share) Escondida Organic Growth Project 1 (OGP1) which
involves the replacement of an existing concentrator and allows access to
valuable, higher grade ore. BHP Billiton also approved the US$414 million (BHP
Billiton share) Escondida Oxide Leach Area Project (OLAP).
In addition, pre-commitment expenditure of US$779 million (BHP Billiton share)
for the proposed Western Australia Iron Ore (WAIO) Outer Harbour development
was approved. This funding will enable feasibility studies to progress, the
procurement of long lead time items and for dredging to begin, subject to the
necessary regulatory approvals.
On 11 April 2012, BHP Billiton also approved pre-commitment funding of US$708
million (BHP Billiton share) for the Mad Dog Phase 2 project in the deepwater
Gulf of Mexico which will facilitate detailed engineering and the procurement
of long lead time items related to the hull, topsides and subsea equipment.
The Worsley Efficiency & Growth project will no longer be reported in future
Exploration and Development Reports as it achieved first production in the
March 2012 quarter and is 98 per cent complete.
BHP Billiton`s Onshore US drilling and development expenditure totalled US$2.2
billion for the nine months ended March 2012.
Project and Share of Initial Production Quarterly progress
ownership approved productio capacity (100%)
capex n target
(US$m) date
Petroleum
projects
Macedon 1,050 CY13 200 million On schedule and budget.
(Australia) cubic feet gas The overall project is
71.43% Gas per day. 57% complete.
Bass Strait 900 CY12(a) 10,000 bpd On revised schedule and
Kipper condensate and budget. The overall
(Australia) processing project is 92% complete.
32.5% - 50% capacity of 80
Gas/Gas million cubic
Liquids feet gas per
day.
Bass Strait 1,350 CY13 11,000 bpd On revised schedule and
Turrum condensate and budget. The overall
(Australia) processing project is 78% complete.
50% Gas/Gas capacity of 200
Liquids million cubic
feet gas per
day.
North West 850 CY13 2,500 million On budget. Steady state
Shelf North cubic feet gas production remains on
Rankin B Gas per day. track for CY13. The
Compression overall project is 87%
(Australia) complete.
16.67% LNG
North West 400 CY16 To maintain LNG On schedule and budget.
Shelf Greater plant throughput The overall project is 9%
Western Flank- from the North complete.
A (Australia) West Shelf
16.67% LNG operations.
Minerals
projects
Worsley 2,995 Q1 CY12 1.1 million tpa First production was
Efficiency & of additional achieved in Q1 CY12 and
Growth alumina. ramp up is underway. The
(Australia) overall project is 98%
86% Alumina complete.
Antamina 435 Q1 CY12 Increases ore Commissioning of the SAG
Expansion processing mill and first production
(Peru) 33.75% capacity to was achieved in Q1 CY12.
Copper 130,000 tpd. The overall project is
90% complete.
Escondida Ore 319 Q2 CY12 The relocation On schedule and budget.
Access (Chile) of the in-pit The overall project is
57.5% Copper crushing and 85% complete.
conveyor
infrastructure
provides access
to higher grade
ore.
Escondida 2,207 H1 CY15 Replaces the Los Approval announced. See
Organic Growth Colorados News Release dated 14
Project 1 concentrator February 2012.
(Chile) 57.5% with a new
Copper 152,000 tpd
plant.
Escondida 414 H1 CY14 New dynamic Approval announced. See
Oxide Leach leaching pad and News Release dated 14
Area Project mineral handling February 2012.
(Chile) 57.5% system.
Copper Maintains oxide
leaching
capacity.
EKATI Misery 323 CY15 Project consists On schedule and budget.
Open Pit of a pushback of The overall project is
Project the existing 22% complete.
(Canada) 80% Misery open pit
Diamonds which was mined
from 2001 to
2005.
WAIO Jimblebar 3,300(b) Q1 CY14 Increases mining On schedule and budget.
Mine Expansion and processing The overall project is
(Australia) capacity to 35 27% complete.
96% Iron Ore million tpa with
incremental
debottlenecking
opportunities to
55 million tpa.
WAIO Port 1,900(b) H2 CY12 Increases total On schedule and budget.
Hedland Inner inner harbour The overall project is
Harbour capacity to 220 49% complete.
Expansion million tpa with
(Australia) debottlenecking
85% Iron Ore opportunities to
240 million tpa.
WAIO Port 1,400(b) H2 CY14 Optimises On schedule and budget.
Blending and resource and The overall project is
Rail Yard enhances 16% complete.
Facilities efficiency
(Australia) across the WAIO
85% Iron Ore supply chain.
WAIO Orebody 698 H2 CY12 Maintains iron On schedule and budget.
24 (Australia) ore production The overall project is
85% Iron Ore output from the 12% complete.
Newman Joint
Venture
operations.
Samarco Fourth 1,750 H1 CY14 Increases iron On schedule and budget.
Pellet Plant ore pellet The overall project is
(Brazil) 50% production 30% complete.
Iron Ore capacity by 8.3
million tpa to
30.5 million
tpa.
Daunia 800 CY13 Greenfield mine On schedule and budget.
(Australia) development with The overall project is
50% capacity to 40% complete.
Metallurgical produce 4.5
Coal million tpa of
export
metallurgical
coal.
Broadmeadow 450 CY13 Increases On schedule and budget.
Life Extension productive The overall project is
(Australia) capacity by 0.4 62% complete.
50% million tpa and
Metallurgical extends life of
Coal the mine by 21
years.
Hay Point 1,250(b) CY14 Increases port On schedule and budget.
Stage Three capacity from 44 The overall project is
Expansion million tpa to 40% complete.
(Australia) 55 million tpa
50% and reduces
Metallurgical storm
Coal vulnerability.
Caval Ridge 2,100(b) CY14 Greenfield mine On schedule and budget.
(Australia) development and The overall project is
50% expansion of the 33% complete.
Metallurgical Peak Downs Mine
Coal with capacity to
produce 8.0
million tpa of
export
metallurgical
coal.
RX1 Project 400 H2 CY12 Increases run-of-On schedule and budget.
(Australia) mine thermal The overall project is
100% Energy coal production 78% complete.
Coal by approximately
4 million tpa.
Cerrejon P40 437 CY13 Increases On schedule and budget.
Project saleable thermal The overall project is
(Colombia) coal production 21% complete.
33.3% Energy by 8 million tpa
Coal to approximately
40 million tpa.
Newcastle 367 CY14 Increases total On schedule and budget.
Third Port coal terminal The overall project is
Project Stage capacity from 53 21% complete.
3 (Australia) million tpa to
35.5% Energy 66 million tpa.
Coal
Minerals exploration
Greenfield exploration continued on copper targets in South America, nickel
and copper targets in Australia, and iron ore and potash in a number of
regions globally.
For the nine months ended March 2012, BHP Billiton spent US$785 million on
minerals exploration, of which US$668 million was expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in the process
of drilling as at 31 March 2012.
Well Location BHP Billiton equity Status
Gunflint-3 Gulf of Mexico 11.2% Drilling ahead
MC948 (Noble operator)
Julong Centre Brunei 22.5% Plugged and
Block CA-01 (Total operator) abandoned
Dry hole
Julong East Brunei 22.5% Hydrocarbons
Block CA-01 (Total operator) encountered
Drilling ahead
Jujur-1 Sabah Malaysia 60% Plugged and
Block N (Operator) abandoned
Dry hole
N. Scarborough Offshore Western 100% Plugged and
Australia (Operator) abandoned
WA-346-P Hydrocarbons
encountered
Tallaganda-1 Offshore Western 55% Hydrocarbons
Australia (Operator) encountered
WA-351-P Drilling ahead
Petroleum exploration expenditure for the nine months ended March 2012 was
US$925 million, of which US$409 million was expensed. Our guidance for
petroleum exploration expenditure for the 2012 financial year is US$1.4
billion, including the Onshore US exploration program. Onshore US Permian
Basin appraisal activities for the March 2012 quarter included the successful
completion and testing of six wells with commercial rates.
This report, together with the Production Report, represents the Interim
Management Statement for the purposes of the UK Listing Authority`s Disclosure
and Transparency Rules. There have been no significant changes in the
financial position of the Group in the quarter ended 31 March 2012.
(a) Facilities ready for first production pending resolution of mercury
content.
(b) Excludes announced pre-commitment funding.
****
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)
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BHP Billiton Limited ABN 49 004 028 077
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