Wrap Text
Operational Review for the Quarter Ended 30 September 2016
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 19 October 2016
Release Number 24/16
BHP BILLITON OPERATIONAL REVIEW
FOR THE QUARTER ENDED 30 SEPTEMBER 2016
- All production and unit cost guidance remains unchanged for the 2017 financial year, however
guidance for Olympic Dam is under review following a state-wide power outage in South Australia.
- Good progress continues on the Group’s capital-efficient latent capacity options with the ramp-up
of the Spence Recovery Optimisation project and additional capacity at Jimblebar during the
period, and first production from the Los Colorados Extension project anticipated late in the 2017
financial year.
- All four major projects under development are tracking to plan.
- In Petroleum, positive drilling results were reported following the discovery of oil in multiple
horizons at the Caicos exploration well in the Gulf of Mexico.
- We continue to optimise our portfolio of high-quality assets with the announced sale of 50 per cent
of our interest in the undeveloped Scarborough area gas fields and completion of the IndoMet Coal
and Navajo Coal divestments. We also entered into an agreement with the New South Wales
Government to cease progression of the Caroona Coal project.
Production Sep Q16 vs Sep Q15
Petroleum (MMboe) 55 (15%) Deferral of development activity in Onshore US for value.
Copper (kt) 355 (6%) Expected lower grades at Escondida and reduced
volumes at Olympic Dam.
Iron ore(1) (Mt) 58 0% Ramp-up of additional capacity at Jimblebar offset lower
volumes at Yandi in Western Australia Iron Ore.
Metallurgical coal(1) (Mt) 11 1% Increased productivity across all Queensland Coal mines
more than offset the cessation of production at Crinum.
Energy coal(1) (Mt) 7 (4%) Strong performance at Cerrejón partially offset by
unfavourable weather at New South Wales Energy Coal.
BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Full year production and unit cost
guidance remains unchanged. Safety and productivity continue to improve with our new operating model
helping us identify and replicate best practice more quickly.
“We have seen early signs of markets rebalancing. Fundamentals suggest both oil and gas markets will
improve over the next 12 to 18 months. Iron ore and metallurgical coal prices have been stronger than
expected, although we continue to expect supply to grow more quickly than demand in the near term.
Together, the combination of steadier markets, continued capital discipline, improved productivity and
increased volumes in copper, iron ore and metallurgical coal should further support strong free cash flow
generation this financial year.”
Summary
Operational performance
Production for the September 2016 quarter and 2017 financial year guidance are summarised in the
table below. Production guidance for the 2017 financial year remains unchanged despite lower volumes
across several commodities in the September 2016 quarter as anticipated, however guidance for
Olympic Dam is under review following a state-wide power outage in South Australia.
Production Sep Q16 Sep Q16
vs vs FY17
Sep Q16 Sep Q15 Jun Q16 guidance
Petroleum (MMboe) 55 (15%) (3%) 200 - 210
Onshore US (MMboe) 21 (31%) (11%) 77 - 83
Conventional (MMboe) 34 (2%) 3% 123 - 127
Copper (Mt) 355 (6%) (14%) 1.66
Escondida (kt) 218 (6%) (19%) 1,070
Other copper(i) (kt) 137 (7%) (6%) 590
Iron ore(ii) (Mt) 58 0% 4% 228 - 237
WAIO (100% basis) (Mt) 67 (1%) 3% 265 - 275
Metallurgical coal(ii) (Mt) 11 1% (9%) 44
Energy coal(ii) (Mt) 7 (4%) 9% 30
(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Excludes production from Samarco, New Mexico assets and Haju (IndoMet Coal).
Major development projects
At the end of the September 2016 quarter, BHP Billiton had four major projects under development in
Petroleum, Copper and Potash, with a combined budget of US$6.9 billion over the life of the projects. All
projects remain on time and on budget.
Corporate update
On 29 August 2016, a panel of four geotechnical specialists (Panel) published its findings into the
immediate causes of the failure of the Fundão tailings dam at the iron ore operations of Samarco
Mineração S.A (Samarco) in Minas Gerais, Brazil, on 5 November 2015. Vale S.A. (Vale), BHP Billiton
Brasil LTDA (BHP Billiton Brasil) and Samarco jointly commissioned Cleary Gottlieb Steen & Hamilton
LLP (Cleary Gottlieb) to investigate the immediate cause of the failure. To assist with the investigation,
Cleary Gottlieb retained the Panel to advise on the technical aspects of the failure and to conduct testing
and analysis. A full overview of the Panel’s findings, explanatory materials, detailed modeling, input data,
a video and technical diagrams can be found at Fundaoinvestigation.com.
On 21 September 2016, BHP Billiton released its Economic contribution and payments to governments
report which shows the Company’s total economic contribution globally in the 2016 financial year was
US$26.7 billion. This includes US$3.7 billion globally in taxes, royalties and other payments to
governments. The Company’s adjusted effective tax rate in the 2016 financial year was 35.8 per cent,
demonstrating BHP Billiton pays its fair share of tax. When royalties are included, the rate is more than
58 per cent.
Petroleum
Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Crude oil, condensate and natural gas liquids (MMboe) 24.2 (21%) (8%)
Natural gas (bcf) 182 (10%) 2%
Total petroleum production (MMboe) 54.5 (15%) (3%)
Total petroleum production – Total petroleum production for the September 2016 quarter decreased
by 15 per cent to 54.5 MMboe. Guidance for the 2017 financial year remains unchanged at between 200
and 210 MMboe, comprising Conventional volumes between 123 and 127 MMboe and Onshore US
volumes between 77 and 83 MMboe.
Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids
production for the September 2016 quarter declined by 21 per cent to 24.2 MMboe.
Onshore US liquids volumes decreased by 38 per cent to 8.3 MMboe as a result of the continued
reduction in activity in the Black Hawk and natural field decline in the Hawkville, which more than offset
increased liquids production from the Permian.
Conventional liquids volumes decreased by eight per cent to 16.0 MMboe as an additional infill well at
Mad Dog and higher production at North West Shelf partially offset natural field decline across the
portfolio and planned maintenance at Atlantis.
Natural gas – Natural gas production for the September 2016 quarter declined by 10 per cent to 182
bcf.
The decline primarily reflects lower Onshore US gas volumes as a result of the decision to defer
development activity for longer-term value and the successful divestment of our gas business in Pakistan
on 31 December 2015. This was partially offset by increased LNG volumes at North West Shelf and higher
demand at Bass Strait.
On 5 September 2016, BHP Billiton announced the sale of 50 per cent of its interest in the undeveloped
Scarborough area gas fields. Under the proposed transaction, ExxonMobil will remain operator of
Scarborough and operatorship of North Scarborough will transfer from BHP Billiton to Woodside.
Completion of the sale is expected by the end of the 2016 calendar year.
Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
Bass Strait Longford 520 CY16 Designed to process approximately On schedule and budget. The overall
Gas Conditioning 400 MMcf/d of high-CO2 gas. project is 99% complete.
Plant
(Australia)
50% (non-operator)
North West Shelf 314 CY19 To maintain LNG plant throughput from On schedule and budget. The overall
Greater Western the North West Shelf operations. project is 16% complete.
Flank-B
(Australia)
16.67%
(non-operator)
Petroleum capital expenditure of approximately US$1.4 billion is planned in the 2017 financial year. This
includes Conventional capital expenditure of US$0.8 billion which is focused on life extension projects at
Bass Strait and North West Shelf. Onshore US capital expenditure is expected to be approximately
US$0.6 billion with development activity tailored to market conditions.
Onshore US development activity
Onshore US drilling and development expenditure for the September 2016 quarter was US$108 million.
Our operated rig count declined from four to two during the September 2016 quarter as we continued to
improve drilling efficiency and defer development activity to maximise value. As a result of the successful
execution of our hedging pilot in June 2016, we elected to move forward the development of our
Haynesville gas assets and mobilised one rig in October 2016.
September 2016 quarter Liquids focused areas Gas focused areas
(September 2015 quarter) Eagle Ford Permian Haynesville Fayetteville Total
Capital expenditure(i) US$ billion 0.0 (0.3) 0.1 (0.1) 0.0 (0.0) 0.0 (0.0) 0.1 (0.5)
Rig allocation At period end 1 (5) 1 (2) 0 (0) 0 (0) 2 (7)
Net wells drilled and completed(ii) Period total 1 (44) 11 (7) 0 (4) 1 (6) 13 (61)
Net productive wells At period end 928 (882) 116 (83) 395 (411) 1,044 (1,080) 2,483 (2,456)
(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period
end.
Petroleum exploration
Exploration and appraisal wells drilled during the September 2016 quarter are summarised below.
Well Location Target BHP Billiton Spud date Water depth Total well Status
equity depth
LeClerc-1 Trinidad & Oil 65% 21 May 2016 1,800 m 5,771 m Hydrocarbons
Tobago Block (Operator) encountered; Plugged and
5 abandoned
LeClerc- Trinidad & Oil 100% 6 July 2016 1,800 m 6,973 m Hydrocarbons
ST1 Tobago Block (Operator) encountered; Plugged and
5 abandoned
Caicos-1 Gulf of Mexico Oil 100% 21 June 2016 1,288 m 9,198 m Hydrocarbons
GC564 (Operator) encountered; Plugged and
abandoned
Burrokeet- Trinidad & Oil 70% 8 August 2016 1,923 m 3,337 m Suspended, awaiting
1 Tobago Block (Operator) plugging and
23a abandonment
Burrokeet- Trinidad & Oil 70% 18 August 1,923 m 5,545 m(i) Drilling ahead
2 Tobago Block (Operator) 2016
23a
(i) Well depth as at 30 September 2016; drilling still in progress.
During the September 2016 quarter, BHP Billiton was the apparent high bidder on 12 blocks in the Gulf
of Mexico Lease Sale 248 and also signed an agreement with Statoil to acquire an interest in two blocks
(GC 436 and GC 480) in the Gulf of Mexico. Regulatory approval was granted during the September
2016 quarter for the Lease Exchange Agreement with Chevron for 61 blocks and the Sale and Purchase
Agreement with ConocoPhillips for 26 blocks executed during the June 2016 quarter. In Australia, the
WA 475-P permit was cancelled per the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and
BHP Billiton entered into a Good Standing Agreement with the Joint Authority(2). In South Africa, blocks
3B/4B expired.
The Group announced positive drilling results at the Caicos exploration well in the Gulf of Mexico, with oil
encountered in multiple horizons. The next step will be drilling the Wildling well in November 2016 to
further appraise the area.
Petroleum exploration expenditure for the September 2016 quarter was US$231 million, of which US$55
million was expensed. A US$700 million exploration program is planned for the 2017 financial year,
largely focused on drilling activities in the Gulf of Mexico and Trinidad and Tobago.
Copper
Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Copper (kt) 355 (6%) (14%)
Zinc (t) 15,367 (25%) 137%
Uranium oxide concentrate (t) 916 (22%) 5%
Copper – Total copper production for the September 2016 quarter decreased by six per cent to 355 kt.
Guidance for the 2017 financial year remains unchanged at 1.66 Mt, subject to the review of Olympic
Dam copper production guidance noted below.
Escondida copper production for the September 2016 quarter decreased by six per cent to 218 kt
reflecting lower grade, as expected. Copper production decreased by 19 per cent from the June 2016
quarter and reflected lower grade, water availability and planned maintenance during the period.
Production guidance for Escondida remains unchanged at approximately 1,070 kt, with volumes
weighted to the second half of the 2017 financial year. The commissioning of the Escondida Water
Supply project and the ramp-up of the Los Colorados Extension project late in the 2017 financial year,
will enable full utilisation of three concentrators during the 2018 financial year.
Pampa Norte copper production for the September 2016 quarter increased by nine per cent to 62 kt
supported by improved recoveries at Cerro Colorado. The ramp-up of the Spence Recovery Optimisation
(SRO) project is progressing to plan and is expected to support an annualised production run rate of 200
ktpa late in the December 2016 quarter following planned maintenance being brought forward from
February 2017. On 27 August 2016, processing at the Cerro Colorado Ore Handling Plant 2 was
suspended following the failure of a transfer chute which is expected to take approximately two months
to repair, further reducing production in the December 2016 quarter. Despite this, Pampa Norte copper
production guidance for the 2017 financial year remains unchanged and is expected to be higher than
the prior year supported by the completion of the SRO project and a strong second half.
Olympic Dam copper production for the September 2016 quarter decreased by 26 per cent to 41 kt,
following planned maintenance and a state-wide power outage which commenced on 28 September
2016. The power outage and resultant shutdown at Olympic Dam demonstrates the necessity for secure
and stable electricity supply in South Australia and across Australia. Power has safely been restored at
Olympic Dam and operations are in the process of recommencing and expected to be fully ramped-up in
the December 2016 quarter. Guidance for the 2017 financial year of approximately 200 kt is under
review following the power outage.
Antamina copper production for the September 2016 quarter was broadly flat at 34 kt. Guidance for the
2017 financial year remains unchanged at 130 kt, as mining progresses through a zinc rich ore zone
consistent with the mine plan. Zinc production is expected to increase from 55 kt to approximately 90 kt
in the 2017 financial year.
Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
Escondida Water 3,430 CY17 New desalination facility to ensure On schedule and budget. The overall
Supply continued water supply to Escondida. project is 96% complete.
(Chile)
57.5%
Iron Ore
Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Iron ore(i) (kt) 57,587 0% 4%
(i) Represents Western Australia Iron Ore (WAIO). Excludes production from Samarco.
Iron ore – Total iron ore production for the September 2016 quarter was unchanged at 58 Mt on a BHP
Billiton share basis, or 67 Mt on a 100 per cent basis. Guidance for the 2017 financial year remains
unchanged at between 228 and 237 Mt on a BHP Billiton share basis, or between 265 and 275 Mt on a
100 per cent basis, with volumes weighted to the last three quarters of the year.
WAIO production for the September 2016 quarter was flat as the ramp-up of additional capacity at
Jimblebar offset lower volumes at Yandi. The 24 month rail renewal and maintenance program, which
will support the integrated supply chain’s long-term reliability, is progressing on schedule. Completion of
rail renewal works near Newman underpinned a four per cent increase in volumes from the June 2016
quarter.
The installation of the new primary crusher and additional conveying capacity at Jimblebar is expected to
be completed in the December 2016 quarter, with all associated spend included within WAIO’s long-term
average annual sustaining capital expenditure of approximately US$4 per tonne.
Mining and processing operations at Samarco remain suspended following the failure of the Fundão
tailings dam and Santarém water dam on 5 November 2015. During the September 2016 quarter 12 kt of
pellet feed was sold, with additional sales expected in the December 2016 quarter.
Coal
Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Metallurgical coal(i) (kt) 10,529 1% (9%)
Energy coal(ii) (kt) 6,880 (4%) 9%
(i) Represents Queensland Coal. Excludes production from Haju following the IndoMet Coal divestment (2017 financial year:
102 kt).
(ii) Excludes production from New Mexico assets following completion of the divestments (2017 financial year: 451 kt).
Metallurgical coal – Metallurgical coal production for the September 2016 quarter increased by one per
cent to 11 Mt. Guidance for the 2017 financial year remains unchanged at 44 Mt.
Queensland Coal production was broadly unchanged for the September 2016 quarter. Increased wash-
plant and truck utilisation across all mines offset the completion of longwall mining at Crinum in the
December 2015 quarter, adverse weather conditions, the planned longwall move at Broadmeadow and
wash-plant shutdown at Saraji, and lower yield at South Walker Creek.
On 14 October 2016, the sale of the Group’s 75 per cent interest in IndoMet Coal to its equity partner PT
Alam Tri Abadi (Adaro) was completed.
Energy coal – Energy coal production for the September 2016 quarter decreased by four per cent to 7
Mt. Guidance for the 2017 financial year remains unchanged at 30 Mt.
New South Wales Energy Coal production declined by 15 per cent due to the impact of heavy rainfall
and rescheduling of the mine plan based on individual pit economics. This partially offset a 16 per cent
increase in volumes at Cerrejón compared to the September 2015 quarter which was constrained by
drought conditions.
Subsequent to the completion of the divestment of Navajo Coal to Navajo Transitional Energy Company
on 29 July 2016, no further production will be reported by BHP Billiton. BHP Billiton will continue to
manage Navajo Coal in accordance with the Mine Management Agreement until 31 December 2016.
Following the Group’s agreement with the New South Wales Government in August 2016 to cancel the
exploration licence and cease progression of the Caroona Coal project, proceeds of A$220 million have
been received.
Other
Nickel production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Nickel (kt) 18.8 (15%) (20%)
Nickel – Nickel West production for the September 2016 quarter decreased to 19 kt of nickel as in-
process nickel matte stocks were replenished within the integrated production chain. Nickel production is
still expected to increase by approximately 10 per cent in the 2017 financial year, with higher grade ore
at Mt Keith and a ramp-up in mining at Leinster supporting higher utilisation rates at the Kalgoorlie
smelter and Kwinana refinery.
Potash project
Project and Investment
ownership (US$m) Scope Progress
Jansen Potash 2,600 Investment to finish the excavation and lining of the The project is 63% complete and within
(Canada) production and service shafts, and to continue the the approved budget. Shaft excavation is
installation of essential surface infrastructure and utilities. progressing.
100%
Minerals exploration
Minerals exploration expenditure for the September 2016 quarter was US$34 million, of which US$34
million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper
targets within Chile, Peru, Canada, South-West United States and the Stuart Shelf in Australia.
Variance analysis relates to the relative performance of BHP Billiton and/or its operations during the September 2016 quarter
compared with the September 2015 quarter, unless otherwise noted. Production volumes, sales volumes and capital and
exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity
accounted investments and other operations are reported on a proportionate consolidation basis.
The following footnotes apply to this Operational Review:
(1) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal assets.
(2) In lieu of the drilling commitment for WA-475-P, consistent with Good Standing Agreement guidelines, we have committed
to contributing A$10.47 million towards either a regional study, re-released acreage or sole-bid prime acreage.
The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); cost and freight
(CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per
tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand
ounces (koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes
per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
Sponsor: UBS South Africa (Pty) Limited
Further information on BHP Billiton can be found at: bhpbilliton.com.
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PRODUCTION SUMMARY
QUARTER ENDED YEAR TO DATE
BHP
Billiton SEP DEC MAR JUN SEP SEP SEP
interest 2015 2015 2016 2016 2016 2016 2015
Petroleum (1)
Petroleum
Crude oil,
condensate and
NGL (Mboe)
Onshore US 13,453 12,805 12,454 9,469 8,288 8,288 13,453
Conventional 17,259 16,976 16,727 16,896 15,959 15,959 17,259
Total 30,712 29,781 29,181 26,365 24,247 24,247 30,712
Natural gas (bcf)
Onshore US 98.2 94.4 89.9 82.0 73.9 73.9 98.2
Conventional 104.6 88.4 91.5 95.7 107.8 107.8 104.6
Total 202.8 182.8 181.4 177.7 181.7 181.7 202.8
Total petroleum 64.5 60.2 59.4 56.0 54.5 54.5 64.5
production
(MMboe)
Copper (2)
Copper
Payable metal in concentrate
(kt)
Escondida (3) 57.5% 159.6 131.7 174.9 182.7 147.0 147.0 159.6
Antamina 33.8% 35.1 37.2 35.4 38.7 34.1 34.1 35.1
Total 194.7 168.9 210.3 221.4 181.1 181.1 194.7
Cathode (kt)
Escondida (3) 57.5% 70.9 89.3 84.8 85.3 70.5 70.5 70.9
Pampa Norte 56.8 69.0 59.8 65.8 62.1 62.1 56.8
(4) 100%
Olympic Dam 100% 54.9 57.4 49.8 40.7 40.9 40.9 54.9
Total 182.6 215.7 194.4 191.8 173.5 173.5 182.6
Total Copper 377.3 384.6 404.7 413.2 354.6 354.6 377.3
Lead
Payable metal in concentrate (t)
Antamina 33.8% 857 1,024 1,193 645 1,146 1,146 857
Total 857 1,024 1,193 645 1,146 1,146 857
Zinc
Payable metal in concentrate (t)
Antamina 33.8% 20,597 16,454 11,913 6,474 15,367 15,367 20,597
Total 20,597 16,454 11,913 6,474 15,367 15,367 20,597
Gold
Payable metal in concentrate
(troy oz)
Escondida (3) 57.5% 23,805 17,889 31,408 35,894 27,561 27,561 23,805
Olympic Dam 29,349 39,299 29,028 20,010 24,366 24,366 29,349
(refined gold) 100%
Total 53,154 57,188 60,436 55,904 51,927 51,927 53,154
Silver
Payable metal in concentrate (troy koz)
Escondida (3) 57.5% 1,181 962 1,544 1,874 1,229 1,229 1,181
Antamina 33.8% 1,766 1,636 1,751 1,558 1,345 1,345 1,766
Olympic Dam 246 265 174 232 163 163 246
(refined silver) 100%
Total 3,193 2,863 3,469 3,664 2,736 2,736 3,193
Uranium
Payable metal in concentrate (t)
Olympic Dam 100% 1,174 1,352 961 876 916 916 1,174
Total 1,174 1,352 961 876 916 916 1,174
Molybdenum
Payable metal in concentrate (t)
Antamina 33.8% 92 232 227 562 561 561 92
Total 92 232 227 562 561 561 92
Iron Ore
Iron Ore
Production (kt) (5)
Newman 85% 18,006 17,003 15,817 15,115 18,008 18,008 18,006
Area C Joint
Venture 85% 12,163 11,723 11,002 11,911 12,384 12,384 12,163
Yandi Joint
Venture 85% 16,886 15,960 16,204 18,325 15,729 15,729 16,886
Jimblebar (6) 85% 3,262 4,852 5,472 5,304 6,057 6,057 3,262
Wheelarra 85% 7,259 5,757 4,562 4,971 5,409 5,409 7,259
Samarco 50% 3,739 1,665 - - - - 3,739
Total 61,315 56,960 53,057 55,626 57,587 57,587 61,315
Coal
Metallurgical coal
Production (kt) (7)
BMA 50% 8,087 8,207 7,894 9,225 8,384 8,384 8,087
BHP Billiton
Mitsui Coal (8) 80% 2,347 2,191 2,015 2,345 2,145 2,145 2,347
Haju (9) 75% 15 87 167 260 102 102 15
Total 10,449 10,485 10,076 11,830 10,631 10,631 10,449
Energy Coal
Production (kt)
USA 100% 2,676 2,632 1,112 632 451 451 2,676
Australia 100% 4,644 4,277 4,189 3,991 3,952 3,952 4,644
Colombia 33.3% 2,527 2,628 2,610 2,329 2,928 2,928 2,527
Total 9,847 9,537 7,911 6,952 7,331 7,331 9,847
Other
Nickel
Saleable production (kt)
Nickel West 100% 22.1 15.2 20.0 23.4 18.8 18.8 22.1
Total 22.1 15.2 20.0 23.4 18.8 18.8 22.1
(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in
barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.
(8) Shown on 100% basis. BHP Billiton interest in saleable production is 80%.
(9) Shown on 100% basis. BHP Billiton interest in saleable production is 75%.
PRODUCTION AND SALES REPORT
QUARTER ENDED YEAR TO DATE
SEP DEC MAR JUN SEP SEP SEP
2015 015 2016 2016 2016 2016 2015
Petroleum (1)
Bass Strait
Crude oil and condensate (Mboe) 1,877 1,390 1,813 1,745 1,922 1,922 1,877
NGL (Mboe) 2,091 1,307 1,455 1,831 2,102 2,102 2,091
Natural gas (bcf) 38.7 23.9 30.3 38.1 41.9 41.9 38.7
Total petroleum products (MMboe) 10.4 6.7 8.3 9.9 11.0 11.0 10.4
North West Shelf
Crude oil and condensate (Mboe) 1,362 1,423 1,124 925 1,486 1,486 1,362
NGL (Mboe) 227 235 259 241 292 292 227
Natural gas (bcf) 33.9 34.9 33.8 27.6 38.7 38.7 33.9
Total petroleum products (MMboe) 7.2 7.5 7.0 5.8 8.2 8.2 7.2
Pyrenees
Crude oil and condensate (Mboe) 2,096 2,331 2,093 2,097 1,676 1,676 2,096
Total petroleum products (MMboe) 2.1 2.3 2.1 2.1 1.7 1.7 2.1
Other Australia (2)
Crude oil and condensate (Mboe) 13 9 8 9 10 10 13
Natural gas (bcf) 16.6 14.4 16.2 17.2 17.5 17.5 16.6
Total petroleum products (MMboe) 2.8 2.4 2.7 2.9 2.9 2.9 2.8
Atlantis (3)
Crude oil and condensate (Mboe) 3,637 4,257 4,056 4,058 3,054 3,054 3,637
NGL (Mboe) 231 278 270 269 208 208 231
Natural gas (bcf) 1.6 2.0 1.9 1.9 1.5 1.5 1.6
Total petroleum products (MMboe) 4.1 4.9 4.6 4.6 3.5 3.5 4.1
Mad Dog (3)
Crude oil and condensate (Mboe) 588 648 880 1,134 950 950 588
NGL (Mboe) 23 41 41 52 36 36 23
Natural gas (bcf) 0.1 0.1 0.1 0.2 0.1 0.1 0.1
Total petroleum products (MMboe) 0.6 0.7 0.9 1.2 1.0 1.0 0.6
Shenzi (3)
Crude oil and condensate (Mboe) 3,277 3,185 3,094 2,813 2,632 2,632 3,277
NGL (Mboe) 236 269 206 192 94 94 236
Natural gas (bcf) 0.7 0.8 0.6 0.6 0.5 0.5 0.7
Total petroleum products (MMboe) 3.6 3.6 3.4 3.1 2.8 2.8 3.6
Eagle Ford (4)
Crude oil and condensate (Mboe) 7,700 7,156 7,018 4,949 3,871 3,871 7,700
NGL (Mboe) 3,799 3,806 3,649 2,717 2,268 2,268 3,799
Natural gas (bcf) 25.8 25.4 25.1 19.5 16.5 16.5 25.8
Total petroleum products (MMboe) 15.8 15.2 14.9 10.9 8.9 8.9 15.8
Permian (4)
Crude oil and condensate (Mboe) 1,481 1,354 1,499 1,410 1,415 1,415 1,481
NGL (Mboe) 473 488 288 393 734 734 473
Natural gas (bcf) 3.9 3.4 2.4 4.9 4.4 4.4 3.9
Total petroleum products (MMboe) 2.6 2.4 2.2 2.6 2.9 2.9 2.6
Haynesville (4)
Crude oil and condensate (Mboe) - 1 - - - - -
Natural gas (bcf) 36.4 34.7 34.4 31.1 28.2 28.2 36.4
Total petroleum products (MMboe) 6.1 5.8 5.7 5.2 4.7 4.7 6.1
Fayetteville (4)
Natural gas (bcf) 32.1 30.9 28.0 26.5 24.8 24.8 32.1
Total petroleum products (MMboe) 5.4 5.2 4.7 4.4 4.1 4.1 5.4
Trinidad/Tobago
Crude oil and condensate (Mboe) 242 185 120 162 140 140 242
Natural gas (bcf) 7.6 7.4 7.4 8.6 6.4 6.4 7.6
Total petroleum products (MMboe) 1.5 1.4 1.4 1.6 1.2 1.2 1.5
Other Americas (3) (5)
Crude oil and condensate (Mboe) 361 360 334 308 275 275 361
NGL (Mboe) 12 16 12 10 1 1 12
Natural gas (bcf) 0.2 0.2 0.2 0.2 0.1 0.1 0.2
Total petroleum products (MMboe) 0.4 0.4 0.4 0.4 0.3 0.3 0.4
UK
Crude oil and condensate (Mboe) 59 74 65 76 69 69 59
NGL (Mboe) (4) 27 10 10 22 22 (4)
Natural gas (bcf) 1.0 1.0 1.0 1.3 1.1 1.1 1.0
Total petroleum products (MMboe) 0.2 0.3 0.2 0.3 0.3 0.3 0.2
Algeria
Crude oil and condensate (Mboe) 916 922 887 964 990 990 916
Total petroleum products (MMboe) 0.9 0.9 0.9 1.0 1.0 1.0 0.9
Pakistan (6)
Crude oil and condensate (Mboe) 23 19 - - - - 23
Natural gas (bcf) 4.2 3.7 - - - - 4.2
Total petroleum products (MMboe) 0.7 0.6 - - - - 0.7
Total petroleum products
Crude oil and condensate
Onshore US (Mboe) 9,181 8,511 8,517 6,359 5,286 5,286 9,181
Conventional (7) (Mboe) 14,443 14,803 14,474 14,291 13,204 13,204 14,443
Total (Mboe) 23,624 23,314 22,991 20,650 18,490 18,490 23,624
NGL
Onshore US (Mboe) 4,272 4,294 3,937 3,110 3,002 3,002 4,272
Conventional (Mboe) 2,816 2,173 2,253 2,605 2,755 2,755 2,816
Total (Mboe) 7,088 6,467 6,190 5,715 5,757 5,757 7,088
Natural Gas
Onshore US (bcf) 98.2 94.4 89.9 82.0 73.9 73.9 98.2
Conventional (bcf) 104.6 88.4 91.5 95.7 107.8 107.8 104.6
Total (bcf) 202.8 182.8 181.4 177.7 181.7 181.7 202.8
(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures
represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Onshore US volumes are net of mineral holder royalties.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(6) BHP Billiton completed the sale of the Pakistan gas business on 31 December 2015.
(7) September 2015 includes (8) Mboe for the finalisation adjustment following the cessation of production at
Stybarrow on 26 June 2015.
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile (1)
Material mined (kt) 110,067 109,200 105,970 108,037 106,504 106,504 110,067
Sulphide ore milled (kt) 22,820 18,076 21,188 22,905 20,787 20,787 22,820
Average copper grade (%) 1.00% 0.99% 0.99% 0.94% 0.87% 0.87% 1.00%
Production ex mill (kt) 169.7 142.8 175.8 181.7 153.2 153.2 169.7
Production
Payable copper (kt) 159.6 131.7 174.9 182.7 147.0 147.0 159.6
Copper cathode (EW) (kt) 70.9 89.3 84.8 85.3 70.5 70.5 70.9
Payable gold
concentrate (troy oz) 23,805 17,889 31,408 35,894 27,561 27,561 23,805
Payable silver
concentrate (troy koz) 1,181 962 1,544 1,874 1,229 1,229 1,181
Sales
Payable copper (kt) 157.6 123.8 181.7 186.6 134.9 134.9 157.6
Copper cathode (EW) (kt) 63.8 101.1 80.3 83.8 65.6 65.6 63.8
Payable gold
concentrate (troy oz) 23,805 17,889 31,408 35,894 27,561 27,561 23,805
Payable silver
concentrate (troy koz) 1,181 962 1,544 1,874 1,229 1,229 1,181
(1) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 13,870 14,930 12,415 12,453 13,011 13,011 13,870
Ore milled (kt) 4,703 4,856 4,012 4,375 3,241 3,241 4,703
Average copper grade (%) 0.64% 0.82% 0.84% 0.80% 0.68% 0.68% 0.64%
Production
Copper cathode (EW) (kt) 13.7 18.8 20.0 24.8 17.1 17.1 13.7
Sales
Copper cathode (EW) (kt) 13.0 19.7 18.6 25.2 16.4 16.4 13.0
Spence
Material mined (kt) 22,922 21,593 22,549 21,124 23,638 23,638 22,922
Ore milled (kt) 4,919 5,146 4,355 4,836 4,713 4,713 4,919
Average copper grade (%) 1.41% 1.30% 1.39% 1.22% 1.17% 1.17% 1.41%
Production
Copper cathode (EW) (kt) 43.1 50.2 39.8 41.0 45.0 45.0 43.1
Sales
Copper cathode (EW) (kt) 38.2 56.1 38.4 40.9 41.2 41.2 38.2
Antamina, Peru
Material mined
(100%) (kt) 56,793 52,130 55,183 62,793 65,111 65,111 56,793
Sulphide ore milled
(100%) (kt) 14,300 14,184 12,414 14,711 13,522 13,522 14,300
Average head grades
- Copper (%) 0.88% 0.92% 1.02% 0.90% 0.84% 0.84% 0.88%
- Zinc (%) 0.79% 0.55% 0.54% 0.33% 0.60% 0.60% 0.79%
Production
Payable copper (kt) 35.1 37.2 35.4 38.7 34.1 34.1 35.1
Payable zinc (t) 20,597 16,454 11,913 6,474 15,367 15,367 20,597
Payable silver (troy koz) 1,766 1,636 1,751 1,558 1,345 1,345 1,766
Payable lead (t) 857 1,024 1,193 645 1,146 1,146 857
Payable molybdenum (t) 92 232 227 562 561 561 92
Sales
Payable copper (kt) 30.8 42.9 29.3 42.4 32.8 32.8 30.8
Payable zinc (t) 18,747 20,423 12,097 3,035 16,043 16,043 18,747
Payable silver (troy koz) 1,522 2,048 1,331 2,055 1,277 1,277 1,522
Payable lead (t) 266 1,056 1,073 1,108 767 767 266
Payable molybdenum (t) 156 138 178 331 648 648 156
Olympic Dam, Australia
Material mined (1) (kt) 2,357 2,372 2,210 1,993 2,204 2,204 2,357
Ore milled (kt) 2,727 2,767 2,174 2,031 2,279 2,279 2,727
Average copper grade (%) 1.64% 2.22% 2.01% 2.20% 1.97% 1.97% 1.64%
Average uranium
grade (kg/t) 0.60 0.62 0.61 0.59 0.60 0.60 0.60
Production
Copper cathode (ER
and EW) (kt) 54.9 57.4 49.8 40.7 40.9 40.9 54.9
Uranium oxide
concentrate (t) 1,174 1,352 961 876 916 916 1,174
Refined gold (troy oz) 29,349 39,299 29,028 20,010 24,366 24,366 29,349
Refined silver (troy koz) 246 265 174 232 163 163 246
Sales
Copper cathode (ER
and EW) (kt) 52.5 57.3 49.4 43.9 37.5 37.5 52.5
Uranium oxide
concentrate (t) 677 1,013 1,261 778 1,085 1,085 677
Refined gold (troy oz) 25,598 39,168 32,052 22,134 21,901 21,901 25,598
Refined silver (troy koz) 213 265 198 201 184 184 213
(1) Material mined refers to run of mine ore mined and hoisted.
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman (kt) 18,006 17,003 15,817 15,115 18,008 18,008 18,006
Area C Joint Venture (kt) 12,163 11,723 11,002 11,911 12,384 12,384 12,163
Yandi Joint Venture (kt) 16,886 15,960 16,204 18,325 15,729 15,729 16,886
Jimblebar (1) (kt) 3,262 4,852 5,472 5,304 6,057 6,057 3,262
Wheelarra (kt) 7,259 5,757 4,562 4,971 5,409 5,409 7,259
Total production (kt) 57,576 55,295 53,057 55,626 57,587 57,587 57,576
Total production (100%) (kt) 67,161 64,197 61,454 64,508 66,681 66,681 67,161
Sales
Lump (kt) 14,003 13,886 13,380 13,054 14,156 14,156 14,003
Fines (kt) 43,587 40,917 40,078 42,673 42,278 42,278 43,587
Total (kt) 57,590 54,803 53,458 55,727 56,434 56,434 57,590
Total sales (100%) (kt) 67,177 63,625 61,927 64,617 65,368 65,368 67,177
(1) Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.
Samarco, Brazil (1)
Production (kt) 3,739 1,665 - - - - 3,739
Sales (kt) 3,531 2,425 224 94 12 12 3,531
(1) Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water
dam on 5 November 2015.
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production (1)
BMA
Blackwater (kt) 1,803 1,861 1,756 2,206 1,981 1,981 1,803
Goonyella (kt) 1,868 1,941 2,478 2,709 2,123 2,123 1,868
Peak Downs (kt) 1,164 1,323 1,159 1,385 1,520 1,520 1,164
Saraji (kt) 1,037 1,000 1,046 1,123 1,238 1,238 1,037
Gregory Joint Venture (2) (kt) 707 609 13 - - - 707
Daunia (kt) 698 616 626 684 646 646 698
Caval Ridge (kt) 810 857 816 1,118 876 876 810
Total BMA (kt) 8,087 8,207 7,894 9,225 8,384 8,384 8,087
BHP Billiton Mitsui Coal (3)
South Walker Creek (kt) 1,511 1,275 1,268 1,382 1,341 1,341 1,511
Poitrel (kt) 836 916 747 963 804 804 836
Total BHP Billiton Mitsui
Coal (kt) 2,347 2,191 2,015 2,345 2,145 2,145 2,347
Total Queensland Coal (kt) 10,434 10,398 9,909 11,570 10,529 10,529 10,434
Sales
Coking coal (kt) 7,015 7,642 7,348 8,059 7,240 7,240 7,015
Weak coking coal (kt) 3,246 2,695 2,681 3,196 2,799 2,799 3,246
Thermal coal (kt) 86 290 241 310 206 206 86
Total (kt) 10,347 10,627 10,270 11,565 10,245 10,245 10,347
(1) Production figures include some thermal coal.
(2) Longwall mining at Crinum completed during the December 2015 quarter.
(3) Shown on a 100% basis. BHP Billiton interest in saleable production is 80%.
Haju, Indonesia (1)
Production (kt) 15 87 167 260 102 102 15
Sales - export (kt) - - 148 239 117 117 -
(1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal
on 14 October 2016.
New Mexico, USA
Production
Navajo Coal (1) (kt) 1,270 1,403 694 632 451 451 1,270
San Juan Coal (2) (kt) 1,406 1,229 418 - - - 1,406
Total (kt) 2,676 2,632 1,112 632 451 451 2,676
Sales thermal coal - local
utility 2,671 2,661 1,106 613 105 105 2,671
(1) Subsequent to the completion of the divestment of Navajo Mine on 29 July 2016, no further production will be reported by
BHP Billiton. BHP Billiton will continue to manage Navajo Coal in accordance with the Mine Management Agreement until 31
December 2016.
(2) BHP Billiton completed the sale of San Juan Mine on 31 January 2016.
NSW Energy Coal, Australia
Production (kt) 4,644 4,277 4,189 3,991 3,952 3,952 4,644
Sales
Export thermal coal (kt) 4,130 5,081 3,410 3,993 3,640 3,640 4,130
Inland thermal coal (kt) 253 229 234 440 331 331 253
Total (kt) 4,383 5,310 3,644 4,433 3,971 3,971 4,383
Cerrejon, Colombia
Production (kt) 2,527 2,628 2,610 2,329 2,928 2,928 2,527
Sales thermal coal -
export (kt) 2,853 2,565 2,339 2,844 2,905 2,905 2,853
Other
Nickel production is reported on the basis of saleable product.
Nickel West, Australia
Production
Nickel contained in
concentrate (kt) 0.7 0.2 0.3 0.3 0.3 0.3 0.7
Nickel contained in finished
matte (kt) 5.0 2.6 2.8 5.8 1.8 1.8 5.0
Nickel metal (kt) 16.4 12.4 16.9 17.3 16.7 16.7 16.4
Total nickel production (kt) 22.1 15.2 20.0 23.4 18.8 18.8 22.1
Sales
Nickel contained in
concentrate (kt) 0.7 0.2 0.3 0.3 0.3 0.3 0.7
Nickel contained in finished
matte (kt) 4.2 3.7 2.7 5.9 1.8 1.8 4.2
Nickel metal (kt) 15.6 12.1 17.8 17.4 16.5 16.5 15.6
Total nickel sales (kt) 20.5 16.0 20.8 23.6 18.6 18.6 20.5
Date: 19/10/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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