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BHP Billiton Exploration and Development Report for the Quarter Ended 31 March 2013
BHP BILLITON
NEWS RELEASE
Release Time IMMEDIATE
Date 17 April 2013
Number 06/13
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 31 MARCH 2013
This report covers the Group’s exploration and development activities for the March 2013 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 continues to progress 19 major projects in various stages of development. These projects are largely
low risk, brownfield expansions, which are expected to deliver first production before the end of the 2015 financial
year. In line with prior guidance, no new major projects were approved during the March 2013 quarter.
Our Queensland Coal operations achieved a significant milestone during the March 2013 quarter with first
production achieved at the Daunia mine, ahead of schedule. The continued ramp up of this mine and future
commissioning of Caval Ridge will underpin an expected increase in the capacity of our Queensland Coal business
to 66 million tonnes per annum (100 per cent basis) by the end of the 2014 calendar year. The Broadmeadow Life
Extension project also achieved first production ahead of schedule and will not be reported in future Exploration
and Development Reports.
Following the sale of BHP Billion’s diamonds business to Dominion Diamond Corporation on 10 April 2013, the
EKATI Misery Open Pit project is no longer included in this report.
BHP Billiton’s Onshore US drilling and development expenditure totalled US$3.2 billion for the nine month period
ended March 2013 and guidance for the 2013 financial year remains unchanged at US$4.0 billion. Over 80 per
cent of this expenditure will be focused on the liquids rich areas of the Eagle Ford and Permian.
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Petroleum projects
Macedon 1,050 CY13 200 million cubic feet gas On schedule and budget.
(Australia) per day. Commissioning activities are
71.43% progressing and the overall project is
Operator 96% complete.
Gas
Bass Strait Turrum(a) 1,350 CY13 11,000 bpd condensate On revised schedule and budget. The
(Australia) and processing capacity overall project is 88% complete.
50% of 200 million cubic feet
Non operator gas per day.
Gas/Gas Liquids
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Bass Strait Longford 520 CY16 Designed to process On schedule and budget. The overall
Gas Conditioning Plant approximately 400 million project is 1% complete.
(Australia) cubic feet per day of high
50% CO2 gas.
Non operator
Gas
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.
Compression Commissioning activities are
(Australia) progressing and the overall project is
16.67% 98% complete.
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 44% 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 32% 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 44% complete.
(Chile) system. Maintains oxide
57.5% leaching capacity.
Copper
WAIO Jimblebar Mine 3,300(b) Q1 CY14 Increases mining and On schedule and budget. The overall
Expansion processing capacity to project is 75% 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 First production was achieved in Q4
Inner Harbour harbour capacity to CY12. The overall project is 85%
Expansion 220 million tpa. complete.
(Australia) Debottlenecking
85% opportunities that would
Iron Ore add substantial, low cost
capacity are being
evaluated.
WAIO Port Blending 1,400(b) H2 CY14 Optimises resource and On schedule and budget. The overall
and Rail Yard Facilities enhances efficiency project is 65% complete.
(Australia) across the WAIO supply
85% chain.
Iron Ore
BHP Billiton Exploration and Development Report for the quarter ended 31 March 2013 2
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
WAIO Orebody 24 698 H2 CY12 Maintains iron ore First production was achieved in Q4
(Australia) production output from CY12. The overall project is 74%
85% the Newman Joint complete.
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 81% complete.
(Brazil) 8.3 million tpa to
50% 30.5 million tpa.
Iron Ore
Daunia 800 CY13 Greenfield mine First production was achieved in Q1
(Australia) development with CY13, ahead of schedule. The final
50% 4.5 million tpa of export capital cost is expected to be below
Metallurgical Coal metallurgical coal budget. The overall project is 89%
capacity. complete.
Broadmeadow Life 450 CY13 Increases productive First production was achieved in Q1
Extension capacity by 0.4 million tpa CY13, ahead of schedule and on
(Australia) and extends life of the budget. The overall project is 99%
50% mine by 21 years. complete.
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 60% 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 59% complete.
50% an initial 5.5 million tpa of
Metallurgical Coal export metallurgical coal.
Appin Area 9 845 CY16 Maintains Illawarra Coal’s On schedule and budget. The overall
(Australia) production capacity with a project is 37% 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 62% 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 69% complete.
(Australia) 53 million tpa to
35.5% 66 million tpa.
Energy Coal
BHP Billiton Exploration and Development Report for the quarter ended 31 March 2013 3
Initial Mineral Resource declared at the Nickel West Venus prospect
BHP Billiton today declared an Inferred Mineral Resource of four million tonnes at an average grade of 3.5 per cent
nickel at the Venus prospect near Leinster, which forms part of our wholly owned Nickel West business in Western
Australia. This new resource represents a significant body of komatiite hosted, nickel sulphide mineralisation. This
discovery demonstrates the success of BHP Billiton’s focused brownfield exploration program. A drilling program to
further define this nickel sulphide discovery is in progress.
Mineral Resource – Nickel West (100%)(c)
As at 17 April 2013 As at 30 June 2012
Measured Indicated Inferred Total Total
Resource Resource Resource Resource Resource
Millions of Millions of Millions of Millions of Millions of BHP Billiton
Commodity dry metric % dry metric % dry metric % dry metric % dry metric % interest
Deposit Ore type tonnes Ni tonnes Ni tonnes Ni tonnes Ni tonnes Ni %
Nickel
High grade
Venus massive - - 1.5 6.0 1.5 6.0 - 100
sulphide
Low-grade
disseminated - - 2.5 1.9 2.5 1.9 - 100
sulphide
Minerals exploration
Greenfield minerals exploration is focused on advancing copper targets within Chile and Peru. Minerals exploration
expenditure for the nine month period ended March 2013 was US$523 million, of which US$408 million was
expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 31 March 2013.
Well Location BHP Billiton equity Status
Goodwyn North-1 Western Australia 16.67% Plugged and abandoned
WA-1-L (Woodside operator) Dry hole
Raptor-1 Gulf of Mexico 50% Drilling ahead
DC535 (Anadarko operator)
Petroleum exploration expenditure for the nine month period ended March 2013 was US$468 million, of which
US$379 million was expensed. Petroleum exploration expenditure of approximately US$775 million is anticipated in
the 2013 financial year with the majority of drilling activity scheduled to occur in the Gulf of Mexico.
(a) Initial production through the Turrum facilities, scheduled for the 2013 calendar year, will be low CO2 gas.
Additional high CO2 production from the Turrum reservoir will come online with completion of the Longford Gas
Conditioning Plant in the 2016 calendar year.
(b) Excludes announced pre-commitment funding.
BHP Billiton Exploration and Development Report for the quarter ended 31 March 2013 4
(c) Competent Person – Mr Marcel Menicheli (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 17 April 2013. Mr.
Menicheli is a full time employee of BHP Billiton, 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 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves’. Massive and disseminated domains were 3D modelled and estimated with the software
Minesight using an Inverse distance squared method (IDS). No cut-off was applied to the resources. Mr
Menicheli consents to the inclusion in this report of the matters based on their information in the form and
context in which it appears.
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 2013.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
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BHP Billiton Exploration and Development Report for the quarter ended 31 March 2013 5
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