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BHP Billiton Exploration and Development Report for the Quarter Ended 30 September 2012
BHP BILLITON
NEWS RELEASE
Release Time IMMEDIATE
Date 17 October 2012
Number 26/12
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 30 SEPTEMBER 2012
This report covers the Group’s exploration and development activities for the September 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 remains committed to its proven strategy which is to invest in large, long life, low cost, expandable,
upstream assets, diversified by commodity, geography and market, throughout the economic cycle. In that regard,
the Group has 19 high quality, low risk, largely brownfield projects currently in execution that are expected to
deliver strong financial returns for our shareholders. The majority of these projects are scheduled to achieve first
production before the end of the 2015 financial year which will support strong growth in our major, high margin
businesses. With capital and exploration expenditure of US$22.0 billion forecast for the Group in the 2013 financial
year, we are fully committed and no major project approvals are anticipated over this timeframe.
In response to the more challenging external environment, during the September 2012 quarter BHP Billiton decided
not to proceed with the 2.5 million tonnes per annum (100 per cent basis) expansion of Peak Downs that is
associated with the Caval Ridge mine development (Australia). Importantly, the 5.5 million tonnes per annum (100
per cent basis) Caval Ridge mine remains on schedule to deliver first production in the 2014 calendar year while
the valuable Peak Downs expansion option remains embedded within the portfolio.
The Bass Strait Kipper gas field (Australia) offshore production facilities were completed in the September 2012
quarter and are ready to commence production pending resolution of the mercury content. The Bass Strait Kipper
project will not be reported in future Exploration and Development Reports.
BHP Billiton’s Onshore US drilling and development expenditure totalled US$1.0 billion in the September 2012
quarter. Our guidance for Onshore US drilling and development expenditure for the 2013 financial year remains
unchanged at US$4.0 billion. Over 80 per cent of this expenditure will be focused on the liquids rich Eagle Ford
shale and Permian Basin.
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Petroleum projects
Macedon 1,050 CY13 200 million cubic feet gas On schedule and budget. The overall
(Australia) per day. project is 80% complete.
71.43%
Operator
Gas
(a)
Bass Strait Kipper 900 CY12 10,000 bpd condensate The offshore production facilities are
(Australia) and processing capacity 100% complete.
32.5% - 50% of 80 million cubic feet
Non operator gas per day.
Gas/Gas Liquids
Bass Strait Turrum 1,350 CY13 11,000 bpd condensate On revised schedule and budget. The
(Australia) and processing capacity overall project is 81% complete.
50% of 200 million cubic feet
Non operator gas per day.
Gas/Gas Liquids
North West Shelf North 850 CY13 2,500 million cubic feet On budget. Steady state production
Rankin B Gas gas per day. remains on track for CY13. The overall
Compression project is 96% complete.
(Australia)
16.67%
Non operator
LNG
North West Shelf 400 CY16 To maintain LNG plant On schedule and budget. The overall
Greater Western throughput from the North project is 26% complete.
Flank-A West Shelf operations.
(Australia)
16.67%
Non operator
LNG
Minerals projects
Escondida Organic 2,207 H1 CY15 Replaces the Los On schedule and budget. The overall
Growth Project 1 Colorados concentrator project is 17% complete.
(Chile) with a new 152,000 tpd
57.5% plant.
Copper
Escondida Oxide Leach 414 H1 CY14 New dynamic leaching On schedule and budget. The overall
Area Project pad and mineral handling project is 20% complete.
(Chile) system. Maintains oxide
57.5% leaching capacity.
Copper
EKATI Misery Open Pit 323 CY15 Project consists of a On schedule and budget. The overall
Project pushback of the existing project is 30% complete.
(Canada) Misery open pit which
80% was mined from 2001 to
Diamonds 2005.
BHP Billiton Exploration and Development Report for the quarter ended 30 September 2012 2
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
(b)
WAIO Jimblebar Mine 3,300 Q1 CY14 Increases mining and On schedule and budget. The overall
Expansion processing capacity to project is 52% complete.
(Australia) 35 million tpa with
96% incremental
Iron Ore debottlenecking
opportunities to
55 million tpa.
WAIO Port Hedland 1,900(b) H2 CY12 Increases total inner On schedule and budget. The overall
Inner Harbour harbour capacity to project is 69% complete.
Expansion 220 million tpa with
(Australia) debottlenecking
85% opportunities to
Iron Ore 240 million tpa.
(b)
WAIO Port Blending 1,400 H2 CY14 Optimises resource and On schedule and budget. The overall
and Rail Yard Facilities enhances efficiency project is 32% complete.
(Australia) across the WAIO supply
85% chain.
Iron Ore
WAIO Orebody 24 698 H2 CY12 Maintains iron ore On schedule and budget. The overall
(Australia) production output from project is 45% complete.
85% the Newman Joint
Iron Ore Venture operations.
Samarco Fourth Pellet 1,750 H1 CY14 Increases iron ore pellet On schedule and budget. The overall
Plant production capacity by project is 59% complete.
(Brazil) 8.3 million tpa to
50% 30.5 million tpa.
Iron Ore
Daunia 800 CY13 Greenfield mine On schedule and budget. The overall
(Australia) development with project is 68% complete.
50% capacity to produce
Metallurgical Coal 4.5 million tpa of export
metallurgical coal.
Broadmeadow Life 450 CY13 Increases productive On schedule and budget. The overall
Extension capacity by 0.4 million tpa project is 83% complete.
(Australia) and extends life of the
50% mine by 21 years.
Metallurgical Coal
Hay Point Stage Three 1,250(b) CY14 Increases port capacity On schedule and budget. The overall
Expansion from 44 million tpa to project is 50% complete.
(Australia) 55 million tpa and
50% reduces storm
Metallurgical Coal vulnerability.
Caval Ridge 1,870(b) CY14 Greenfield mine On schedule and budget. The overall
(Australia) development to produce project is 48% complete.
50% an initial 5.5 million tpa of
Metallurgical Coal export metallurgical
coal(c).
BHP Billiton Exploration and Development Report for the quarter ended 30 September 2012 3
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Appin Area 9 845 CY16 Maintains Illawarra Coal’s On schedule and budget. The overall
(Australia) production capacity with a project is 25% complete.
100% replacement mining
Metallurgical Coal domain and capacity to
produce 3.5 million tpa of
metallurgical coal.
Cerrejon P40 Project 437 CY13 Increases saleable On schedule and budget. The overall
(Colombia) thermal coal production project is 47% complete.
33.3% by 8 million tpa to
Energy Coal approximately
40 million tpa.
Newcastle Third Port 367 CY14 Increases total coal On schedule and budget. The overall
Project Stage 3 terminal capacity from project is 52% complete.
(Australia) 53 million tpa to
35.5% 66 million tpa.
Energy Coal
Minerals exploration
Greenfield minerals exploration is currently focused on advancing copper targets within Chile and Peru. Minerals
exploration expenditure for the September 2012 quarter was US$199 million, of which US$144 million was
expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 30 September 2012.
Well Location BHP Billiton equity Status
Atlantis East Gulf of Mexico 44% Drilling ahead
DC 211 (BP operator)
Gunflint-3 Gulf of Mexico 11.2% Temporarily abandoned
MC948 (Noble operator) Under evaluation
Ness Deep Gulf of Mexico 50% Drilling ahead
GC507 (Operator)
Petroleum exploration expenditure for the September 2012 quarter was US$173 million, of which US$80 million
was expensed. Petroleum exploration expenditure of approximately US$775 million is anticipated in the 2013
financial year with the majority of activity to occur in the Gulf of Mexico.
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 30 September 2012.
(a) The Bass Strait Kipper gas field offshore production facilities were completed in the September 2012 quarter
and are ready to commence production pending resolution of the mercury content. The project to remove this
mercury is being managed on a stand-alone basis.
(b) Excludes announced pre-commitment funding.
BHP Billiton Exploration and Development Report for the quarter ended 30 September 2012 4
(c) The 2.5 million tonnes per annum (100 per cent basis) expansion of Peak Downs is no longer included in the
project scope.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
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Sponsor: Absa Capital (the investment banking division of Absa Bank Limited, affiliated with Barclays)
BHP Billiton Exploration and Development Report for the quarter ended 30 September 2012 5
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