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BHP BILLITON PLC - Operational Review for the Half Year Ended 31 December 2016

Release Date: 25/01/2017 07:05
Code(s): BIL     PDF:  
Wrap Text
Operational Review for the Half Year Ended 31 December 2016

BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504



NEWS RELEASE

Release Time                 IMMEDIATE
Date                         25 January 2017
Release Number               2/17

BHP BILLITON OPERATIONAL REVIEW
FOR THE HALF YEAR ENDED 31 DECEMBER 2016

    -   Record production for the half year was achieved at Western Australia Iron Ore (WAIO).
    -   Full year production guidance maintained for Petroleum, Iron Ore and Coal.
    -   Production guidance for Copper reduced to approximately 1.62 Mt, two per cent below prior
        guidance, reflecting lower volumes now expected at Olympic Dam.
    -   In Petroleum, following the successful bid for Trion in Mexico and positive drilling results at
        LeClerc and Caicos, an US$820 million exploration program is now planned for the current financial
        year.
    -   All major projects under development are tracking to plan. The Bass Strait Longford Gas
        Conditioning Plant project achieved initial gas sales in the December 2016 quarter. Mechanical
        completion was achieved at the Escondida Water Supply project with first water expected in the
        March 2017 quarter.
    -   Underlying attributable profit(1) in the December 2016 half year is expected to include gains related
        to asset divestments in a range of approximately US$150 million to US$200 million (details on page
        2).

Production                            Dec H16   vs Dec Q15
Petroleum (MMboe)                        106        (15%)    Deferral of development activity in Onshore US for value
                                                             and natural field decline in Conventional assets.
Copper (kt)                              712         (7%)    Reduced volumes at Olympic Dam, maintenance at
                                                             Pampa Norte and lower copper grades as expected at
                                                             Antamina.
Iron ore(2) (Mt)                         118          4%     Record WAIO volumes for the half year due to the
                                                             continued ramp-up of additional capacity at Jimblebar.
Metallurgical coal(2) (Mt)                21          1%     Strong performance at four Queensland Coal mines more
                                                             than offset the cessation of production at Crinum.
Energy coal(2) (Mt)                       14         (4%)    Lower production at NSWEC partially offset by strong
                                                             performance at Cerrejón.


BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “We have performed well during a period of
higher prices, with record iron ore volumes achieved at WAIO. Our simpler organisational structure has
freed our assets to focus on what matters most and to deliver safer and more productive operations.
Our consistent delivery of operating and capital productivity, and strict adherence to our capital allocation
framework have positioned us to maximise shareholder value.

“In Petroleum, we will accelerate our counter-cyclical oil exploration efforts this year. Our successful
Trion bid leaves us in a leading position to develop the newly opened Mexican acreage in the Gulf of
Mexico, where we can leverage our core expertise. We are encouraged by recent positive drilling results
at the LeClerc well in Trinidad and Tobago and the Caicos well in the Gulf of Mexico. After the first
successful rig, our Onshore US gas hedging program will also be expanded to secure attractive returns.”

Summary

Operational performance

Production for the December 2016 half year and quarter and guidance for the 2017 financial year are
summarised in the table below.

                                                                Dec H16         Dec Q16    Dec Q16   Previous     Current
                                                                     vs             vs        vs       FY17        FY17
Production                              Dec H16     Dec Q16     Dec H15         Dec Q15    Sep Q16   guidance    guidance
Petroleum (MMboe)                          105.9        51.4       (15%)          (15%)      (6%)   200 - 210   200 - 210

 Onshore US (MMboe)                         40.0        19.4       (31%)          (32%)      (6%)     77 - 83     77 - 83

 Conventional (MMboe)                       65.9        32.0        (1%)            1%       (6%)   123 - 127   123 - 127
Copper (kt)                                  712         357        (7%)           (7%)       1%       1,660       1,620

 Escondida (kt)                              452         234         0%             6%        8%       1,070       1,070

 Other copper(i) (kt)                        260         123       (16%)       (25%)        (10%)       590         550
Iron ore(ii) (Mt)                            118          60         4%             9%        4%    228 - 237   228 - 237

 WAIO (100% basis) (Mt)                      136          70         4%             9%        4%    265 - 275   265 - 275

Metallurgical coal(ii) (Mt)                   21          11         1%             2%        1%         44          44

Energy coal(ii) (Mt)                          14           7        (4%)           (4%)      (3%)        30          30
 

 (i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
 (ii) Excludes production from Samarco, New Mexico Coal and Haju (IndoMet Coal).

Major development projects

During the December 2016 quarter, the Bass Strait Longford Gas Conditioning Plant project achieved
initial gas sales, under budget, and production is ramping up to full rate. In December 2016, mechanical
completion was achieved at the Escondida Water Supply project with first water expected to be delivered
in the March 2017 quarter, on schedule and budget. These two projects will not be reported in future
Operational Reviews.

BHP Billiton has two major projects under development in Petroleum and Potash, with a combined
budget of US$2.9 billion over the life of the projects. Both projects remain on time and on budget.

Corporate update

BHP Billiton expects Underlying attributable profit(1) in the December 2016 half year to include gains
related to asset divestments in a range of approximately US$150 million to US$200 million (Underlying
EBITDA(1) impact of US$175 million to US$225 million).

In addition, the Group expects to record an exceptional item of US$164 million (US$115 million post-tax)
related to the cancellation of the Caroona exploration licence and subsequent reimbursement received
during the December 2016 half year.

On 20 December 2016, Samarco, Vale and BHP Billiton Brasil agreed a non-binding term sheet outlining
the general terms and conditions for the use of Vale’s Timbopeba pit by Samarco to deposit its tailings,
should Samarco restart. A definitive agreement remains subject to a successful commercial negotiation,
due diligence and relevant government approvals. These processes are likely to occur during the 2017
calendar year.

On 18 January 2017, Samarco, Vale and BHP Billiton Brasil have also entered into a preliminary
agreement with the Federal Prosecutors’ Office in Brazil in relation to the Fundão tailings dam failure on
5 November 2015(3) (Preliminary Agreement). The Preliminary Agreement outlines the process and
timeline for negotiation of a settlement of the BRL 155 billion (approximately US$47.5 billion) Civil Claim
relating to the dam failure.

For the December 2016 half year, we are not yet in a position to provide an update to the ongoing
potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. Any financial impacts will
continue to be classified as an exceptional item.

The above guidance will be updated should material information or events arise as the Group finalises its
financial statements.

Marketing update

The average realised prices achieved for our major commodities are summarised in the table below. The
majority of iron ore shipments were linked to the index price for the month of shipment, with price
differentials predominantly reflecting product quality and market fundamentals. The majority of
metallurgical coal and energy coal exports were linked to the index price for the month of shipment or
sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.

                                                                                                     Dec H16  Dec H16      Dec H16
                                                                                                      vs           vs        vs
Average realised prices(i)                 Dec H16     Dec H15        Jun H16          FY16          Dec H15  Jun H16       FY16
Oil (crude and condensate) (US$/bbl)            45           42           37             39            7%        22%         15%
Natural gas (US$/Mscf)(ii)                    3.21         2.91         2.74            2.83           10%       17%         13%

US natural gas (US$/Mscf)                     2.79         2.35         1.96            2.16           19%       42%         29%
LNG (US$/Mscf)                                6.35         8.24         7.12            7.71          (23%)     (11%)       (18%)
Copper (US$/lb)                               2.41         2.12         2.16            2.14           14%       12%         13%
Iron ore (US$/wmt, FOB)                         55           43           44             44            28%       25%         25%
Hard coking coal (US$/t)                       179           82           83             83           118%       116%        116%
Weak coking coal (US$/t)                       122           67           70             69            82%       74%         77%
Thermal coal (US$/t)(iii)                       74           49           46             48            51%       61%         54%
Nickel metal (US$/t)                        10,581        9,926        8,792           9,264           7%        20%         14%
 (i) Based on provisional, unaudited estimates. Prices exclude third party product and internal sales, and represent the
 weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted.
 (ii) Includes internal sales.
 (iii) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

At 31 December 2016, the Group had 267 kt of outstanding copper sales that were revalued at a
weighted average price of US$2.51 per pound. The final price of these sales will be determined over the
remainder of the 2017 financial year. In addition, 316 kt of copper sales from the 2016 financial year
were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation
adjustments will increase earnings before interest and tax by US$37 million in the December 2016 half
year.

Petroleum

Production
                                                                                           Dec H16           Dec Q16       Dec Q16
                                                                                                vs                vs            vs
                                                           Dec H16        Dec Q16          Dec H15           Dec Q15       Sep Q16
Crude oil, condensate and natural gas liquids
(MMboe)                                                        48.2             23.9          (20%)           (20%)          (1%)
Natural gas (bcf)                                               347             165           (10%)           (10%)          (9%)
Total petroleum production (MMboe)                            105.9             51.4          (15%)           (15%)          (6%)

Total petroleum production – Total petroleum production for the December 2016 half year decreased
by 15 per cent to 105.9 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 December 2016 half year decreased by 20 per cent to 48.2 MMboe.

Onshore US liquids volumes decreased by 37 per cent to 16.4 MMboe as a result of a reduction in
activity in the Black Hawk for value and natural field decline, which more than offset increased liquids
production from the Permian.

Conventional liquids volumes decreased by seven per cent as higher production at Bass Strait and North
West Shelf and an additional infill well at Mad Dog partially offset natural field decline across the portfolio
and planned maintenance at Atlantis.

Natural gas – Natural gas production for the December 2016 half year declined by 10 per cent to 347
bcf.

The decline primarily reflects lower Onshore US gas volumes as a result of the decision to defer
development activity for value and the divestment of our gas business in Pakistan. This was partially
offset by higher demand at Bass Strait and Macedon and increased LNG volumes at North West Shelf.

On 5 September 2016, BHP Billiton announced the sale of 50 per cent of its interest in the undeveloped
Scarborough area gas fields. ExxonMobil will remain operator of Scarborough and operatorship of North
Scarborough will transfer from BHP Billiton to Woodside. The sale was completed during the December
2016 quarter.

Projects
                           Capital    Initial
Project and            expenditure   production
ownership                  (US$m)    target date Capacity                                Progress

Bass Strait Longford          520        CY16    Designed to process approximately       Initial gas sales achieved in Q4 CY16,
Gas Conditioning                                 400 MMcf/d of high-CO2 gas.             under budget and production ramping up
Plant                                                                                    to full rate.
(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 27% complete.
Flank-B
(Australia)
16.67%
(non-operator)


Petroleum capital expenditure guidance of approximately US$1.4 billion (excluding US$0.2 billion from
capital creditor movements) for the 2017 financial year remains unchanged. 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 US$0.6 billion with development activity
tailored to market conditions.

During the December 2016 quarter, BP (the operator) sanctioned the Mad Dog Phase 2 project.
Approval from BHP Billiton´s Board will be sought during the March 2017 quarter.

Onshore US development activity

Onshore US drilling and development expenditure for the December 2016 half year was approximately
US$273 million. Our operated rig count increased from two to three during the December 2016 quarter
with deployment of a rig in the Haynesville in October 2016, following the successful execution of our
hedging pilot. Additional hedge activity during the quarter has led to approval of a second rig in the
Haynesville with operations expected to commence in March 2017. Completions activity in the Black
Hawk was accelerated in the December 2016 quarter to drawdown drilled and uncompleted inventory as
market conditions improved. We are currently progressing trials in the Black Hawk, testing the potential
for staggered wells to increase recovery, larger frac jobs to improve productivity and the potential of the
Upper Eagle Ford horizon. We expect early results of these trials to be known during the September
2017 quarter.

December 2016 half year                                             Liquids focused areas             Gas focused areas
(December 2015 half year)                                   Eagle Ford          Permian       Haynesville         Fayetteville           Total

Capital expenditure(i)                   US$ billion          0.1 (0.6)         0.1 (0.2)         0.0 (0.0)          0.0 (0.0)        0.3 (0.8)

Rig allocation                           At period end          1 (5)              1 (2)            1 (0)              0 (0)            3 (7)

Net wells drilled and completed(ii)      Period total          43 (74)           15 (19)            0 (4)             2 (10)           60 (107)

Net productive wells                     At period end      942 (912)           118 (94)         394 (409)       1,042 (1,085)      2,496 (2,500)
 (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 December 2016 quarter are summarised below.

Well         Location           Target       BHP Billiton       Spud date          Water depth      Total well      Status
                                             equity                                                 depth

Burrokeet-   Trinidad &         Oil          70%               8 August 2016       1,923 m          3,337 m        Plugged and abandoned
1            Tobago Block                    (Operator)
             23a

Burrokeet-   Trinidad &         Oil          70%               18 August 2016      1,923 m          7,348 m        Plugged and abandoned
2            Tobago Block                    (Operator)        
             23a


The Burrokeet-1 well encountered mechanical difficulty shortly after spud and was plugged and
abandoned. Non-commercial hydrocarbons were encountered at Burrokeet-2 with analysis ongoing.
Phase 1 of the Trinidad and Tobago deep water drilling campaign has concluded. Following the oil
discovery in the Shenzi North and Caicos wells in the central Gulf of Mexico, the Invictus rig has been
mobilised for drilling the Wildling well in the March 2017 quarter.

During the December 2016 quarter, BHP Billiton won the bid to acquire a 60 per cent participating
interest in and operatorship of blocks AE-0092 and AE-0093, containing the Trion discovered resource,
in Mexico. Subject to satisfaction of conditions, BHP Billiton anticipates signing the relevant agreements
in the March 2017 quarter.

In the US Gulf of Mexico, we increased acreage position and operatorship in the Southern Green
Canyon Miocene and Western Gulf of Mexico Paleogene key focus areas. The regulator awarded all 12
of the leases for which BHP Billiton was the apparent high bidder in the Western Gulf of Mexico Lease
Sale 248. In addition, BHP Billiton cross-assigned nine leases in Green Canyon with Statoil Gulf of
Mexico LLC and Repsol E&P USA Inc. The cross assignment results in BHP Billiton having a 65 per cent
interest and operatorship over the nine leases, ahead of drilling the Scimitar exploration well in the June
2017 quarter. The regulator also approved assignment of BHP Billiton’s 60 per cent interest in two
leases in Green Canyon (GC 633 and 676) to Chevron U.S.A. Inc.

In Australia, seismic work commenced in the Exmouth sub-basin following regulatory approval of the
Good Standing Agreement in relation to the WA-475-P permit. The WA-335-P permit was officially
relinquished after receiving consent from the regulator to surrender the permit.

Petroleum exploration expenditure for the December 2016 half year was US$364 million, of which
US$217 million was expensed. An US$820 million exploration program is now planned for the 2017
financial year, an increase of US$120 million from prior guidance, following the successful bid for Trion in
Mexico and positive drilling results at the LeClerc well in Trinidad and Tobago and the Caicos well in the
Gulf of Mexico.

Copper

Production
                                                                                       Dec H16        Dec Q16         Dec Q16
                                                                                            vs             vs              vs
                                                         Dec H16      Dec Q16          Dec H15        Dec Q15         Sep Q16
Copper (kt)                                                  712          357             (7%)            (7%)            1%
Zinc (t)                                                   37,773      22,406              2%             36%            46%
Uranium oxide concentrate (t)                               1,976       1,060            (22%)           (22%)           16%



Copper – Total copper production for the December 2016 half year decreased by seven per cent to 712
kt. Production for the 2017 financial year is now expected to be approximately 1.62 Mt, two per cent
below prior guidance, and reflects a reduction in volumes at Olympic Dam.

Escondida copper production for the December 2016 half year was unchanged at 452 kt as higher
concentrate production was offset by lower cathode production. During the period there was a four day
site-wide suspension of operations to conduct an investigation following a fatality on 21 October 2016.
Production guidance for Escondida remains unchanged at 1,070 kt, with volumes weighted to the
second half of the 2017 financial year. The current Collective Agreement with Escondida N°1 Union
expires on 31 January 2017 and negotiations for a new agreement are in progress. The commissioning
of the Escondida Water Supply project and the planned 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 December 2016 half year decreased by eight per cent to 116 kt,
with an unplanned outage offsetting improved recoveries at Cerro Colorado, and planned maintenance
offsetting record ore milled at Spence in the December 2016 quarter. Copper production decreased by
13 per cent from the September 2016 quarter mainly due to suspension of the processing operations at
the Cerro Colorado Ore Handling Plant 2 following the failure of a transfer chute. 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 Spence Recovery Optimisation project which achieved
an annualised production run rate of 200 ktpa in the month of December 2016.

Olympic Dam copper production for the December 2016 half year decreased by 30 per cent to 78 kt
following planned maintenance and a state-wide power outage which commenced on 28 September
2016. Power was safely restored on 14 October 2016 and operations were fully ramped-up in the
December 2016 quarter. Olympic Dam copper production of approximately 160 kt to 170 kt is now
expected for the 2017 financial year. Lower volumes reflect the power outage and unplanned
maintenance at the refinery which commenced at the end of December 2016, ahead of the major smelter
maintenance campaign planned for the September 2017 quarter.

Antamina copper production for the December 2016 half year decreased by nine per cent to 66 kt
reflecting lower copper grades as mining progressed through a zinc rich ore zone, consistent with the
mine plan. Guidance for the 2017 financial year remains unchanged at 130 kt. Zinc production for the
December 2016 half year increased by two per cent to 38 kt with guidance for the 2017 financial year
unchanged at 90 kt.

Project
                          Capital     Initial
Project and           expenditure   production
ownership                 (US$m)    target date Capacity                                Progress

Escondida Water             3,430       CY17    New desalination facility to ensure     Mechanical completion achieved with
Supply                                          continued water supply to Escondida.    first water expected in the March 2017
(Chile)                                                                                 quarter. Project on schedule and budget.
57.5%                                                                                   The overall project is 99% complete.


Iron Ore

Production
                                                                                       Dec H16        Dec Q16         Dec Q16
                                                         Dec H16         Dec Q16          vs             vs              vs
                                                                                       Dec H15        Dec Q15         Sep Q16
Iron ore(i) (kt)                                         117,636         60,049            4%            9%                4%
 (i) Represents Western Australia Iron Ore (WAIO). Excludes production from Samarco.

Iron ore – Total iron ore production for the December 2016 half year increased by four per cent to 118
Mt or 136 Mt on a 100 per cent basis. Guidance for the 2017 financial year remains unchanged at
between 228 and 237 Mt or between 265 and 275 Mt on a 100 per cent basis, excluding production from
Samarco.

WAIO achieved record production for the December 2016 half year as a result of the continued ramp-up
of additional capacity at Jimblebar with the commissioning of a new primary crusher and additional
conveying capacity. Combined with improved track reliability and lower scheduled maintenance at Yandi,
volumes increased by four per cent from the September 2016 quarter. The rail renewal and maintenance
program, which will support the supply chain’s long-term reliability, is progressing ahead of schedule and
is now expected to be completed in the June 2017 quarter.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão
tailings dam and Santarém water dam on 5 November 2015.

Coal

Production
                                                                                       Dec H16      Dec Q16        Dec Q16
                                                                                            vs           vs             vs
                                                         Dec H16        Dec Q16        Dec H15      Dec Q15        Sep Q16
Metallurgical coal(i) (kt)                                21,142         10,613            1%            2%           1%
Energy coal(ii) (kt)                                      13,531          6,651           (4%)          (4%)         (3%)
 (i) Represents Queensland Coal. Excludes production from Haju following the divestment of IndoMet Coal (2017 financial
 year: 129 kt).
 (ii) Excludes production from New Mexico Coal following divestments (2017 financial year: 451 kt).

Metallurgical coal – Metallurgical coal production for the December 2016 half year increased by one
per cent to 21 Mt. Guidance for the 2017 financial year remains unchanged at 44 Mt.

Strong performances at Broadmeadow, Peak Downs, Saraji and Caval Ridge, underpinned by additional
stripping and higher wash-plant utilisation, more than offset the completion of longwall mining at Crinum
in the December 2015 quarter, adverse weather conditions in the September 2016 quarter and lower
yield at South Walker Creek.

Record production at Peak Downs was achieved during the December 2016 quarter with coal
opportunistically trucked to Caval Ridge in order to utilise latent wash-plant capacity.

Energy coal – Energy coal production for the December 2016 half year decreased by four per cent to 14
Mt. Guidance for the 2017 financial year remains unchanged at 30 Mt.

New South Wales Energy Coal recorded improved underlying truck utilisation, however production
declined by 13 per cent as a higher drawdown of in-pit and Run-of-Mine (ROM) inventories benefitted
the December 2015 half year. This was partially offset by an 11 per cent increase in volumes at Cerrejón
compared to the December 2015 half year which was constrained by drought conditions.

The divestment of Navajo Coal was completed on 29 July 2016, with management of the mine
transferred to Navajo Transitional Energy Company on 31 December 2016.

Other

Nickel production
                                                                                                  Dec H16          Dec Q16           Dec Q16
                                                                                                       vs               vs                vs
                                                               Dec H16            Dec Q16         Dec H15          Dec Q15           Sep Q16
Nickel (kt)                                                        40.9              22.1             10%              45%               18%


Nickel – Nickel West production for the December 2016 half year increased by 10 per cent to 40.9 kt.
Ongoing debottlenecking activities have resulted in record production at the Kwinana refinery. Nickel
production guidance for the 2017 financial year remains unchanged and is expected to increase by
approximately 10 per cent from the prior year.

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 64% complete and on
(Canada)                             production and service shafts, and to continue the budget.      Both shafts have been safely
                                     installation of essential surface infrastructure and utilities. excavated and lined through the
100%                                                                                                 Blairmore aquifer. The engineering
                                                                                                     contract for feasibility studies of Jansen
                                                                                                     Stage 1 has been awarded.


Minerals exploration

Minerals exploration expenditure for the December 2016 half year was US$75 million, of which US$75
million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper
targets within Chile, Peru, Canada, South Australia and the South-West United States.

Variance analysis relates to the relative performance of BHP Billiton and/or its operations during December 2016 half year
compared with the December 2015 half year, 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) Underlying EBITDA and Underlying attributable profit are used to reflect the underlying performance of BHP Billiton.
    Underlying EBITDA is earnings before net finance costs, taxation, depreciation, amortisation, impairment and any
    exceptional items. Underlying attributable profit is Attributable profit excluding any exceptional items.
(2) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(3) Under the Preliminary Agreement, Samarco, Vale and BHP Billiton Brasil will provide, subject to Court approval, total
    security of BRL 2.2 billion (approximately US$675 million, 100 per cent basis) to support the payments for the social and
    environmental remediation programs under the Framework Agreement (Interim Security). The Interim Security comprises
    a charge over Samarco’s assets of BRL 800 million (approximately US$245 million), insurance bonds of BRL 1.3 billion
    (approximately US$400 million), and liquid assets of BRL 100 million (approximately US$30 million). During the period that
    the Interim Security is in place, it will, subject to Court approval, replace the BRL 1.2 billion injunction (approximately
    US$370 million) issued in the BRL 20 billion Civil Claim. In addition, the applications by the Federal Prosecutors for the
    BRL 7.7 billion injunction (approximately US$2.4 billion) in the BRL 155 billion Civil Claim and the BRL 20 billion asset
    freezing order (approximately US$6 billion) in the criminal proceedings commenced by the Federal Prosecutors in Brazil
    against Samarco, Vale, BHP Billiton Brasil and others will be suspended. The parties have agreed that the Interim Security
    will remain in place until the earlier of 30 June 2017 and the date that a final settlement arrangement is agreed between
    the Federal Prosecutors’ Office in Brazil, and Samarco, Vale and BHP Billiton Brasil. If a final settlement arrangement is
    not agreed by 30 June 2017, the Federal Prosecutors may request reinstatement by the Court of the BRL 1.2 billion
    (approximately US$370 million) injunction.

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).


Further information on BHP Billiton can be found at: bhpbilliton.com


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Media Relations                                              Investor Relations

Australia and Asia                                           Australia and Asia

Matthew Martyn-Jones                                         Tara Dines
Tel: +61 3 9609 2360 Mobile +61 419 418 394                  Tel: +61 3 9609 2222 Mobile: +61 499 249 005
Email: Matthew.Martyn-Jones@bhpbilliton.com                  Email: Tara.Dines@bhpbilliton.com

Paul Hitchins                                                Andrew Gunn
Tel: +61 3 9609 2592 Mobile: +61 419 315 001                 Tel: +61 3 9609 3575 Mobile: +61 402 087 354
Email: Paul.Hitchins@bhpbilliton.com                         Email: Andrew.Gunn@bhpbilliton.com

Fiona Hadley                                                 United Kingdom and South Africa
Tel: +61 3 9609 2211 Mobile: +61 427 777 908
Email: Fiona.Hadley@bhpbilliton.com                          Rob Clifford
                                                             Tel: +44 20 7802 4131 Mobile: +44 7788 308 844
Amanda Saunders                                              Email: Rob.Clifford@bhpbilliton.com
Tel: +61 3 9609 3985 Mobile: +61 417 487 973
Email: Amanda.Saunders@bhpbilliton.com                       Elisa Morniroli
                                                             Tel: +44 20 7802 7611 Mobile: +44 7825 926 646
United Kingdom and South Africa                              Email: Elisa.Morniroli@bhpbilliton.com

Ruban Yogarajah                                              Americas
Tel: +44 207 802 4033 Mobile: +44 7827 082 022
Email: Ruban.Yogarajah@bhpbilliton.com                       James Wear
                                                             Tel: +1 713 993 3737 Mobile: +1 347 882 3011
North America                                                Email: James.Wear@bhpbilliton.com

Bronwyn Wilkinson
Mobile: +1 604 340 8753
Email: Bronwyn.Wilkinson@bhpbilliton.com



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PRODUCTION SUMMARY
                                                             Quarter ended                              Year to date
                            BHP
                          Billiton      DEC         MAR           JUN           SEP          DEC          DEC          DEC
                          interest      2015       2016          2016          2016         2016         2016         2015
Petroleum (1)
Petroleum
Crude oil,
condensate and
NGL (Mboe)
     Onshore US                       12,805     12,454          9,469         8,288       8,143       16,431       26,258
     Conventional                     16,976     16,727         16,896        15,959      15,768       31,727       34,235
     Total                            29,781     29,181         26,365        24,247      23,911       48,158       60,493
 
Natural gas (bcf)
     Onshore US                         94.4       89.9          82.0           73.9       67.8         141.7        192.6
     Conventional                       88.4       91.5          95.7          107.8       97.1         204.9        193.0
     Total                             182.8      181.4         177.7          181.7      164.9         346.6        385.6

Total petroleum
production
(MMboe)                                 60.2       59.4          56.0           54.5       51.4         105.9        124.7
Copper (2)
Copper
Payable metal in concentrate
(kt)
     Escondida (3)     57.5%           131.7      174.9          182.7         147.0       162.6         309.6       291.3
     Antamina          33.8%            37.2       35.4           38.7          34.1        32.0          66.1        72.3
     Total                             168.9      210.3          221.4         181.1       194.6         375.7       363.6

Cathode (kt)
    Escondida (3)       57.5%           89.3       84.8           85.3          70.5         71.5         142.0      160.2
    Pampa Norte
    (4)                 100%            69.0       59.8           65.8          62.1         53.8         115.9      125.8
    Olympic Dam         100%            57.4       49.8           40.7          40.9         37.2          78.1      112.3
    Total                              215.7      194.4          191.8         173.5         162.5        336.0      398.3

Total copper (kt)                      384.6      404.7          413.2         354.6         357.1        711.7      761.9
Lead
Payable metal in concentrate (t)
     Antamina          33.8%           1,024     1,193             645         1,146         1,220        2,366      1,881
     Total                             1,024     1,193             645         1,146         1,220        2,366      1,881

Zinc
Payable metal in concentrate (t)
     Antamina          33.8%          16,454    11,913            6,474       15,367         22,406       37,773    37,051
     Total                            16,454    11,913            6,474       15,367         22,406       37,773    37,051

Gold
Payable metal in concentrate
(troy oz)
      Escondida (3)    57.5%          17,889    31,408           35,894       27,561         37,784        65,345    41,694
      Olympic Dam
      (refined gold)   100%           39,299    29,028           20,010       24,366         29,651        54,017    68,648
      Total                           57,188    60,436           55,904       51,927         67,435       119,362   110,342

Silver
Payable metal in concentrate (troy koz)
     Escondida (3)     57.5%              962    1,544            1,874        1,229         1,323         2,552      2,143
     Antamina          33.8%            1,636    1,751            1,558        1,345         1,446         2,791      3,402
     Olympic Dam
     (refined silver)  100%               265      174              232         163            188          351         511
     Total                              2,863    3,469            3,664        2,737          2,957        5,694      6,056
   
Uranium
Payable metal in concentrate (t)
     Olympic Dam       100%            1,352      961              876          916           1,060        1,976      2,526
     Total                             1,352      961              876          916           1,060        1,976      2,526

Molybdenum
Payable metal in concentrate (t)
    Antamina           33.8%             232      227              562          561             225          786        324
    Total                                232      227              562          561             225          786        324

Iron Ore
Iron Ore
Production (kt) (5)

     Newman              85%          17,003    15,817            15,115        18,008         17,751      35,759     35,009
     Area C Joint
     Venture             85%          11,723    11,002            11,911        12,384         12,179      24,563     23,886
     Yandi Joint
     Venture             85%          15,960    16,204            18,325        15,729         17,555      33,284     32,846
     Jimblebar (6)       85%           4,852     5,472             5,304         6,057          5,178      11,235      8,114
     Wheelarra           85%           5,757     4,562             4,971         5,409          7,386      12,795     13,016
     Samarco             50%           1,665         -                -            -              -           -        5,404
     Total                            56,960    53,057             55,626        57,587         60,049    117,636    118,275

Coal
Metallurgical coal
Production (kt) (7)
     BMA                   50%         8,207     7,894              9,225         8,384         8,684      17,068     16,294
     BHP Billiton
     Mitsui Coal (8)       80%         2,191     2,015              2,345         2,145         1,929      4,074       4,538
     Haju (9)              75%            87       167                260           102            27        129         102
     Total                            10,485    10,076             11,830        10,631        10,640     21,271      20,934

Energy Coal
Production (kt)
    USA                   100%         2,632     1,112                632           451             -         451      5,308
    Australia             100%         4,277     4,189              3,991         3,952         3,851       7,803      8,921
    Colombia              33.3%        2,628     2,610              2,329         2,928         2,800       5,728      5,155
    Total                              9,537     7,911              6,952         7,331         6,651      13,982     19,384

Other
Nickel
Saleable production (kt)
     Nickel West          100%         15.2      20.0                23.4          18.8          22.1       40.9       37.3
     Total                             15.2      20.0                23.4          18.8          22.1       40.9       37.3

 (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%.

 Throughout this report figures in italics indicated that this figure has been adjusted since it was previously reported.

PRODUCTION AND SALES REPORT
                                                                           Quarter ended                             Year to date
                                                           DEC         MAR        JUN       SEP           DEC        DEC        DEC
                                                          2015        2016       2016      2016          2016       2016       2015
Petroleum (1)  

Bass Strait
  Crude oil and condensate               (Mboe)          1,390       1,813       1,745      1,922       1,770       3,692      3,267
  NGL                                    (Mboe)          1,307       1,455       1,831      2,102       1,460       3,562      3,398
  Natural gas                            (bcf)            23.9        30.3        38.1       41.9        31.3        73.2       62.6
  Total petroleum products               (MMboe)           6.7         8.3         9.9       11.0         8.4        19.5       17.1

North West Shelf
  Crude oil and condensate               (Mboe)          1,423       1,124         925      1,486       1,468       2,954      2,785
  NGL                                    (Mboe)            235         259         241        292         263         555        462
  Natural gas                            (bcf)            34.9        33.8        27.6       38.7        36.9        75.6       68.8
  Total petroleum products               (MMboe)           7.5         7.0         5.8        8.2         7.9        16.1       14.7

Pyrenees
  Crude oil and condensate               (Mboe)          2,331       2,093       2,097      1,676       1,726       3,402      4,427
  Total petroleum products               (MMboe)           2.3         2.1         2.1        1.7         1.7         3.4        4.4

Other Australia (2)
  Crude oil and condensate               (Mboe)              9           8           9          10          8          18         22
  Natural gas                            (bcf)            14.4        16.2        17.2        17.5       17.1        34.6       31.0
  Total petroleum products               (MMboe)           2.4         2.7         2.9         2.9        2.9         5.8        5.2

Atlantis (3)
   Crude oil and condensate              (Mboe)          4,257       4,056       4,058      3,054       3,263       6,317      7,894
   NGL                                   (Mboe)            278         270         269        208         207         415        509
   Natural gas                           (bcf)             2.0         1.9         1.9        1.5         1.6         3.1        3.6
   Total petroleum products              (MMboe)           4.9         4.6         4.6        3.5         3.7         7.2        9.0

Mad Dog (3)
  Crude oil and condensate               (Mboe)            648         880       1,134        950       1,170       2,120      1,236
  NGL                                    (Mboe)             41          41          52         36          52          88         64
  Natural gas                            (bcf)             0.1         0.1         0.2        0.1         0.2         0.3        0.2
  Total petroleum products               (MMboe)           0.7         0.9         1.2        1.0         1.3         2.3        1.3

Shenzi (3)
  Crude oil and condensate               (Mboe)          3,185       3,094       2,813      2,632       2,692        5,324      6,462
  NGL                                    (Mboe)            269         206         192         94         131          225        505
  Natural gas                            (bcf)             0.8         0.6         0.6        0.5         0.5          1.0        1.5
  Total petroleum products               (MMboe)           3.6         3.4         3.1        2.8         2.9          5.7        7.2
 
Eagle Ford (4)
  Crude oil and condensate               (Mboe)          7,156       7,018       4,949      3,871       4,008        7,879     14,856
  NGL                                    (Mboe)          3,806       3,649       2,717      2,268       2,159        4,427      7,605
  Natural gas                            (bcf)            25.4        25.1        19.5       16.5        15.2         31.7       51.2
  Total petroleum products               (MMboe)          15.2        14.9        10.9        8.9        8.7          17.6       31.0
  
Permian (4)
  Crude oil and condensate               (Mboe)          1,354     1,499         1,410      1,415       1,378        2,793      2,835
  NGL                                    (Mboe)            488       288           393        734         580        1,314        961
  Natural gas                            (bcf)             3.4       2.4           4.9        4.4         4.4          8.8        7.3
  Total petroleum products               (MMboe)           2.4       2.2           2.6        2.9         2.7          5.6        5.0

Haynesville (4)
  Crude oil and condensate               (Mboe)              1         -             -         -            3            3          1
  NGL                                    (Mboe)              -         -             -         -           15            15         -
  Natural gas                            (bcf)            34.7      34.4          31.1      28.2         24.0          52.2      71.1
  Total petroleum products               (MMboe)           5.8       5.7           5.2       4.7          4.0           8.7      11.9

Fayetteville (4)
  Natural gas                            (bcf)            30.9      28.0          26.5      24.8         24.2          49.0      63.0
  Total petroleum products               (MMboe)           5.2       4.7           4.4       4.1          4.0           8.2       10.5

Trinidad/Tobago
   Crude oil and condensate              (Mboe)            185       120           162       140          156           296       427
   Natural gas                           (bcf)             7.4       7.4           8.6       6.4          8.4          14.8      15.0
   Total petroleum products              (MMboe)           1.4       1.4           1.6       1.2          1.6           2.8       2.9

Other Americas (3) (5)
  Crude oil and condensate               (Mboe)            360       334           308       275          269            544      721
  NGL                                    (Mboe)             16        12            10         1            5              6       28
  Natural gas                            (bcf)             0.2       0.2           0.2       0.1          0.1            0.2      0.4
  Total petroleum products               (MMboe)           0.4       0.4           0.4       0.3          0.3            0.6      0.8

UK
  Crude oil and condensate               (Mboe)             74        65            76        69           63            132      133
  NGL                                    (Mboe)             27        10            10        22           49             71       23
  Natural gas                            (bcf)             1.0       1.0            1.3       1.1         1.0            2.1      2.0
  Total petroleum products               (MMboe)           0.3       0.2            0.3       0.3         0.3            0.6      0.5

Algeria 
  Crude oil and condensate               (Mboe)            922       887            964       990        1,016          2,006   1,838
  Total petroleum products               (MMboe)           0.9       0.9            1.0       1.0          1.0           2.0      1.8

Pakistan (6)
  Crude oil and condensate               (Mboe)             19         -             -         -            -              -       42
  Natural gas                             (bcf)             3.7        -             -         -            -              -      7.9
  Total petroleum products              (MMboe)             0.6        -             -         -            -              -      1.4
 
Total petroleum products
  Crude oil and condensate
  Onshore US                             (Mboe)            8,511     8,517         6,359     5,286        5,389         10,675  17,692
  Conventional (7)                       (Mboe)           14,803    14,474        14,291    13,204       13,601         26,805  29,246
  Total                                  (Mboe)           23,314    22,991        20,650    18,490       18,990         37,480  46,938

  NGL
  Onshore US                             (Mboe)            4,294     3,937         3,110     3,002       2,754          5,756    8,566
  Conventional                           (Mboe)            2,173     2,253         2,605     2,755       2,167          4,922    4,989
  Total                                  (Mboe)            6,467     6,190         5,715     5,757       4,921         10,678   13,555

  Natural Gas
  Onshore US                              (bcf)             94.4      89.9         82.0      73.9        67.8           141.7    192.6
  Conventional                            (bcf)             88.4      91.5         95.7     107.8        97.1           204.9    193.0
  Total                                   (bcf)            182.8     181.4        177.7     181.7        164.9          346.6    385.6
  
 (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)             109,200    105,970    108,037    106,504       90,863      197,367    219,267
  Sulphide ore milled                     (kt)              18,076     21,188     22,905     20,787       19,866       40,653     40,896
  Average copper grade                     (%)               0.99%      0.99%      0.94%      0.87%        1.02%        0.94%      1.00%
  Production ex mill                      (kt)               142.8     175.8       181.7      153.2        168.6        321.8      312.5

  Production
  Payable copper                          (kt)               131.7      174.9     182.7       147.0        162.6        309.6      291.3
  Copper cathode (EW)                     (kt)                89.3       84.8      85.3        70.5         71.5        142.0      160.2
   - Oxide leach                          (kt)                32.1       31.0      31.3        26.8         24.4         51.2       55.5
   - Sulphide leach                       (kt)                57.2       53.8      54.0        43.7         47.1         90.8      104.7
  Payable gold
  concentrate                          (troy oz)            17,889     31,408    35,894      27,561        37,784      65,345      1,694
  Payable silver
  concentrate                          (troy oz)               962      1,544     1,874       1,229         1,323       2,552      2,143
 
  Sales 
  Payable copper                          (kt)               123.8      181.7     186.6       134.9         172.7       307.6      281.4
  Copper cathode (EW)                     (kt)               101.1       80.3      83.8        65.6          71.8       137.4      164.9
  Payable gold
  concentrate                          (troy oz)            17,889     31,408    35,894      27,561        37,784      65,345     41,694
  Payable silver
  concentrate                         (troy koz)               962      1,544     1,874       1,229         1,323       2,552      2,143

  (1) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.

Pampa Norte, Chile
  Cerro Colorado
                                                            14,930      12,415   12,453      13,011        14,286      27,297     28,800
  Material mined                          (kt)
  Ore milled                              (kt)               4,856       4,012    4,375       3,241         3,342       6,583      9,559
  Average copper grade                    (%)                0.82%       0.84%    0.80%       0.68%         0.65%       0.66%      0.73%
 
  Production
  Copper cathode (EW)                     (kt)                18.8        20.0     24.8        17.1          12.1        29.2       32.5
 
  Sales
  Copper cathode (EW)                     (kt)                19.7        18.6     25.2        16.4          13.7        30.1       32.7

  Spence
  Material mined                          (kt)              21,593       22,549   21,124     23,638        22,635      46,273     44,515
  Ore milled                              (kt)               5,146        4,355    4,836      4,713         5,187       9,900     10,065
  Average copper grade                    (%)                1.30%        1.39%    1.22%      1.17%         1.19%       1.18%      1.35%

  Production
  Copper cathode (EW)                     (kt)                50.2         39.8     41.0      45.0           41.7        86.7       93.3

  Sales
  Copper cathode (EW)                     (kt)                56.1         38.4     40.9      41.2           41.5        82.7       94.3

Antamina, Peru
  Material mined
  (100%)                                  (kt)              52,130        55,183   62,793    65,111        61,355      126,466   108,923
  Sulphide ore milled
  (100%)                                  (kt)              14,184        12,414   14,711    13,522        13,399       26,921    28,484
  Average head grades
   - Copper                               (%)               0.92%          1.02%    0.90%     0.84%         0.84%        0.84%     0.90%
   - Zinc                                 (%)               0.55%          0.54%    0.33%     0.60%         0.83%        0.71%     0.67%

  Production
  Payable copper                          (kt)               37.2           35.4     38.7      34.1         32.0         66.1       72.3
  Payable zinc                            (t)              16,454         11,913    6,474    15,367       22,406       37,773     37,051
  Payable silver                      (troy koz)            1,636          1,751    1,558     1,345        1,446        2,791      3,402
  Payable lead                            (t)               1,024          1,193      645     1,146        1,220        2,366      1,881
  Payable molybdenum                      (t)                 232            227      562       561          225          786        324

  Sales
  Payable copper                          (kt)               42.9           29.3     42.4      32.8         33.0         65.8       73.7
  Payable zinc                            (t)              20,423         12,097    3,035    16,043       22,334       38,377     39,170
  Payable silver                      (troy koz)            2,048          1,331    2,055     1,277        1,388        2,665      3,570
  Payable lead                            (t)               1,056          1,073    1,108       767        1,100        1,867      1,322
  Payable molybdenum                      (t)                 138            178      331       648          476        1,124        294

Olympic Dam, Australia
  Material mined (1)                     (kt)               2,372          2,210    1,993     2,204        1,887         4,091     4,729
  Ore milled                             (kt)               2,767          2,174    2,031     2,279        2,116         4,395     5,494
  Average copper grade                   (%)                2.22%          2.01%    2.20%     1.97%        2.00%         1.98%     1.93%
  Average uranium
  grade                                 (kg/t)               0.62           0.61     0.59      0.60         0.68         0.64       0.61

  Production
  Copper cathode (ER
  and EW)                                (kt)                57.4           49.8     40.7      40.9         37.2         78.1      112.3
  Uranium oxide 
  concentrate                            (t)                1,352            961      876       916        1,060        1,976      2,526
  Refined gold                        (troy oz)            39,299         29,028   20,010    24,366       29,651       54,017     68,648
  Refined silver                     (troy koz)               265            174      232       163          188          351        511

  Sales
  Copper cathode (ER
  and EW)                               (kt)                57.3            49.4     43.9      37.5         41.2         78.7      109.8
  Uranium oxide
  concentrate                           (t)                1,013           1,261      778     1,085          883        1,968      1,690
  Refined gold                       (troy oz)            39,168          32,052   22,134    21,901       28,234       50,135     64,766
  Refined silver                    (troy koz)               265             198      201       184          203          387        478

  (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)              17,003          15,817    15,115    18,008      17,751        35,759    35,009
   Area C Joint Venture                 (kt)              11,723          11,002    11,911    12,384      12,179        24,563    23,886
   Yandi Joint Venture                  (kt)              15,960          16,204    18,325    15,729      17,555        33,284    32,846
   Jimblebar (1)                        (kt)               4,852           5,472     5,304     6,057       5,178        11,235     8,114
   Wheelarra                            (kt)               5,757           4,562     4,971     5,409       7,386        12,795    13,016
   Total production                     (kt)              55,295          53,057    55,626    57,587      60,049       117,636   112,871
   Total production (100%)              (kt)              64,197          61,454    64,508    66,681      69,730       136,411   131,358

  Sales
  Lump                                  (kt)              13,886          13,380    13,054    14,156      14,127        28,283    27,889
  Fines                                 (kt)              40,917          40,078    42,673    42,278      45,447        87,725    84,504
  Total                                 (kt)              54,803          53,458    55,727    56,434      59,574       116,008   112,393
  Total sales (100%)                    (kt)              63,625          61,927    64,617    65,368      69,196       134,564   130,802

 (1) Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.

Samarco, Brazil (1)
  Production                            (kt)               1,665             -          -        -          -                -     5,404

  Sales                                 (kt)               2,425           224         94        12         -               12     5,956

  (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)                 1,861        1,756     2,206     1,981       1,855         3,836      3,664
  Goonyella                             (kt)                 1,941        2,478     2,709     2,123       2,204         4,327      3,809
  Peak Downs                            (kt)                 1,323        1,159     1,385     1,520       1,715         3,235      2,487
  Saraji                                (kt)                 1,000        1,046     1,123     1,238       1,307         2,545      2,037
  Gregory Joint Venture (2)             (kt)                   609           13         -         -           -             -      1,316
  Daunia                                (kt)                   616          626       684       646         680         1,326      1,314
  Caval Ridge                           (kt)                   857          816     1,118       876         923         1,799      1,667
  Total BMA                             (kt)                 8,207        7,894     9,225     8,384       8,684        17,068     16,294

  BHP Billiton Mitsui Coal (3)   
  South Walker Creek                    (kt)                 1,275        1,268     1,382     1,341       1,080         2,421      2,786
  Poitrel                               (kt)                   916          747       963       804         849         1,653      1,752
  Total BHP Billiton Mitsui                                  2,191        2,015     2,345     2,145       1,929         4,074      4,538
  Coal                                  (kt)
  Total Queensland Coal                 (kt)                10,398        9,909    11,570    10,529      10,613        21,142     20,832

  Sales
  Coking coal                           (kt)                 7,642        7,348     8,059     7,240       7,658        14,898     14,657
  Weak coking coal                      (kt)                 2,695        2,681     3,196     2,799       2,659         5,458      5,941
  Thermal coal                          (kt)                   290          241       310       206         154           360        376
  Total                                 (kt)                10,627       10,270    11,565    10,245      10,471        20,716     20,974
  
 (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)                    87         167        260      102          27           129         102

  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)                1,403          694        632      451           -           451       2,673
  San Juan Coal (2)                     (kt)                1,229          418          -        -           -            -        2,635
  Total                                 (kt)                2,632        1,112        632      451           -           451       5,308
  
  Sales thermal coal - local
  utility                                                   2,661        1,106        613      105           -           105       5,332

  (1) The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP Billiton.
  Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.
  (2) BHP Billiton completed the sale of San Juan Mine on 31 January 2016.

NSW Energy Coal, Australia
  Production                            (kt)                4,277        4,189      3,991     3,952       3,851         7,803      8,921

  Sales
  Export thermal coal                   (kt)                5,081        3,410      3,993     3,640       3,539         7,179      9,211
  Inland thermal coal                   (kt)                  229          234        440       331         311           642        482
  Total                                 (kt)                5,310        3,644      4,433     3,971       3,850         7,821      9,693

Cerrejon, Colombia
  Production                            (kt)                2,628        2,610      2,329     2,928       2,800         5,728      5,155

  Sales thermal coal -
  export                                (kt)                2,565        2,339      2,844     2,905       2,722         5,627      5,418

Other
Nickel production is reported on the basis of saleable product.

Nickel West, Australia
  Production
  Nickel contained in
  concentrate                           (kt)                  0.2         0.3        0.3        0.3        0.2            0.5        0.9
Nickel contained in finished
matte                                   (kt)                  2.6         2.8        5.8        1.8        4.1            5.9        7.6
Nickel metal                            (kt)                 12.4        16.9       17.3       16.7       17.8           34.5       28.8
Total nickel production                 (kt)                 15.2        20.0       23.4       18.8       22.1           40.9       37.3
 
Sales
Nickel contained in
concentrate                             (kt)                  0.2         0.3        0.3        0.3       0.2            0.5         0.9
Nickel contained in finished
matte                                   (kt)                  3.7         2.7        5.9        1.8       4.1            5.9         7.9
Nickel metal                            (kt)                 12.1        17.8       17.4       16.5      17.8           34.3        27.7
Total nickel sales                      (kt)                 16.0        20.8       23.6       18.6      22.1           40.7        36.5

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