Wrap Text
Operational Review for the Nine Months Ended 31 March 2017
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 26 April 2017
Release Number 15/17
BHP BILLITON OPERATIONAL REVIEW
FOR THE NINE MONTHS ENDED 31 MARCH 2017
. Record production for the nine month period achieved at Western Australia
Iron Ore (WAIO) and five Queensland Coal mines.
. Following 44 days of industrial action at Escondida, copper production
guidance reduced to between 1.33 and 1.36 Mt. The commissioning of the
Escondida Water Supply project and the planned ramp-up of the Los Colorados
Extension project are now expected in the September 2017 quarter.
. As a result of damage to third party rail infrastructure caused by Cyclone
Debbie, metallurgical coal production guidance reduced to between 39 and 41
Mt.
. Full year production guidance maintained for petroleum and energy coal. WAIO
production guidance narrowed to between 268 and 272 Mt (100% basis).
. At Queensland Coal, the high-return Caval Ridge Southern Circuit latent
capacity project was approved and will enable full utilisation of the 10
Mtpa wash-plant with ramp-up early in the 2019 financial year.
. In Onshore US, development activity is increasing with the approval of two
additional rigs in the Haynesville, with gas prices hedged to deliver
attractive rates of return.
. Divestment of non-core Onshore US acreage is progressing, with the sales process
well advanced for up to 50,000 acres of the southern Hawkville. Our
Fayetteville field is currently under review and we are considering all options
including divestment.
. The Mad Dog Phase 2 Conventional oil development project was approved and a
contract was executed with PEMEX Exploration and Production Mexico (Pemex)
following the winning bid to acquire a 60% participating interest in, and
operatorship, of Trion in Mexico.
. Commercial evaluation of the LeClerc gas discovery in Trinidad and Tobago is
ongoing. Drilling of the Wildling appraisal well in the Gulf of Mexico is
continuing, which will assist with establishing the scale of the Caicos oil
discovery.
Production Mar 2017 YTD vs Mar 2016 YTD
---------- ------------ ---------------
Petroleum (MMboe)............. 157 (15%) Deferral of development activity in Onshore US for value and
natural field decline in Conventional assets.
Copper (kt)................... 939 (20%) Reduced volumes at Escondida following 44 days of industrial
action.
Iron ore/(1)/ (Mt)............ 171 3% Record WAIO volumes benefitted from the additional capacity at
Jimblebar and productivity improvements.
Metallurgical coal/(1)/ (Mt).. 31 2% Record production at five Queensland Coal mines partially offset by
the impacts from Cyclone Debbie.
Energy coal/(1)/ (Mt)......... 21 0% Strong performance at Cerrejon offset by lower NSWEC production.
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1
Operational Review for the nine months ended 31 March 2017
BHP Billiton Chief Executive Officer, Andrew Mackenzie said: “Everything we do at BHP Billiton is designed to create value for
all of our shareholders, today and for the long term.
We have fundamentally restructured BHP Billiton to increase returns. The demerger of South32 and US$7 billion of divestments has
reduced the number of assets in the portfolio by over a third and our new organisational structure has removed layers of
management. Our more focused portfolio has enabled us to lower unit costs by over 40 per cent. And we have improved our approach
to capital management which has strengthened the balance sheet and increased the discipline with which we invest and return cash
to our shareholders.
But we have more to do and we are not standing still. A simpler portfolio allows us to improve safety and operational performance
more quickly with maintenance, project and geoscience centres of excellence spreading petroleum and minerals expertise across the
group. We have significantly reduced the capital intensity of our growth options and changed our approach in shale to improve
returns and lower risks on new investments. Our more focused approach in exploration is delivering results with three discoveries
over the last 12 months and our new technology function will unlock further value.
This quarter we have added value to the portfolio across each of our six focus areas. We continued our targeted high-return
investment in shale with the approval of two more rigs in the Haynesville supported by our hedging strategy. Plans to monetise a
portion of our non-core acreage for value, such as parts of the southern Hawkville, are underway. In the Eagle Ford, we are
increasing recoveries by testing staggered wells and larger frac jobs. In the Permian, we are exploring opportunities to consolidate
and optimise our acreage position so that we can drill longer lateral wells to lower costs. We have approved the Mad Dog Phase 2
project and investment in Caval Ridge to enable full utilisation of its 10 Mtpa wash-plant.”
Summary
Operational performance
Production for the nine months and quarter ended March 2017, and guidance for
the 2017 financial year, are summarised in the table below.
Mar YTD17 Mar Q17 Mar Q17 Previous Current
Mar 2017 Mar 2017 vs vs vs FY17 FY17
Production YTD Qtr Mar YTD16 Mar Q16 Dec Q16 guidance guidance
---------- -------- -------- --------- ------- ------- --------- -------------
Petroleum (MMboe).............. 156.5 50.6 (15%) (15%) (2%) 200 - 210 200 - 210
Onshore US (MMboe).......... 60.5 20.5 (29%) (25%) 5% 77 - 83 77 - 83
Conventional (MMboe)........ 96.0 30.1 (2%) (6%) (6%) 123 - 127 123 - 127
Copper (kt).................... 939 227 (20%) (44%) (36%) 1,620 1,330 - 1,360
Escondida (kt).............. 546 95 (23%) (63%) (60%) 1,070 780 - 800
Other copper/(i)/ (kt)...... 393 132 (14%) (9%) 7% 550 - 560 550 - 560
Iron ore/(ii)/ (Mt)............ 171 54 3% 1% (11%) 228 - 237 231 - 234
WAIO (100% basis) (Mt)...... 199 62 3% 1% (11%) 265 - 275 268 - 272
Metallurgical coal/(ii)/ (Mt).. 31 10 2% 2% (5%) 44 39 - 41
Energy coal/(ii)/ (Mt)......... 21 7 0% 9% 12% 30 30
(i)Other copper comprises Pampa Norte, Olympic Dam and Antamina. Olympic Dam
guidance for the 2017 financial year expected to be 160 to 170 kt as
revised in the December 2016 quarter.
(ii)Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
Progress on our roadmap to grow shareholder value and returns
During the March 2017 quarter, we continued to make significant progress across
our broad suite of opportunities to grow shareholder value and returns:
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BHP Billiton Operational Review for 2
the nine months ended 31 March 2017
. Productivity has continued to improve across our operations and we see
significant potential for further gains. For example in coal, record
production was achieved at five Queensland mines supported by increased
wash-plant utilisation, while truck utilisation also improved at New South
Wales Energy Coal.
. We approved the high-return Caval Ridge Southern Circuit project in March
2017 and the Los Colorados Extension project is expected to ramp-up in the
September 2017 quarter. Spence is now operating at 200 ktpa following the
completion of the Spence Recovery Optimisation project in December 2016.
. We are increasing Onshore US development activity with the approval of two
additional rigs in the Haynesville. Further monetisation of the portfolio
for value is being pursued with the divestment of non-core Onshore US
acreage at southern Hawkville advancing. The Fayetteville field is currently
under review and we are considering all options including divestment.
. The Board approved the Mad Dog Phase 2 project in the deepwater Gulf of
Mexico in February 2017. We also executed the contract with Pemex to acquire
a 60 per cent participating interest in and operatorship of the Trion
discovery in Mexico in March 2017.
. In Petroleum exploration, following positive drilling results at the LeClerc
well in Trinidad and Tobago, commercial evaluation of the gas discovery is
well advanced. Drilling of the Wildling appraisal well in the Gulf of Mexico
is continuing with results now expected in the September 2017 quarter, which
will assist with establishing the scale of the Caicos oil discovery.
. In technology, replication of the WAIO Integrated Remote Operations Centre
in Brisbane for our Australian coal operations was completed in February 2017
and will support lower operating costs.
Major development projects
On 9 February 2017, the Board of BHP Billiton approved an investment of US$2.2
billion (BHP Billiton share) for the development of the Mad Dog Phase 2 project
in the deepwater Green Canyon area of the Gulf of Mexico. The Bass Strait
Longford Gas Conditioning Plant was fully commissioned during the March 2017
quarter and is now running at design capacity, enabling full production from
the Turrum and Kipper fields. The commissioning of the Escondida Water Supply
project is now expected in the September 2017 quarter.
At the end of the March 2017 quarter, BHP Billiton had three major projects
under development in Petroleum and Potash, with a combined budget of US$5.1
billion over the life of the projects.
Corporate update
On 23 March 2017, BHP Billiton successfully concluded its US$2.5 billion bond
repurchase plan. The repurchase targeted short dated US dollar bonds maturing
before 2023 and was funded by BHP Billiton's strong cash position. The early
repayment of the bonds has extended BHP Billiton's average debt maturity
profile and enhanced BHP Billiton's capital structure.
During the March 2017 quarter, the Risk and Audit Committee commenced a tender
process for the appointment of the external auditor. The process is scheduled
to be completed in the September 2017 quarter, with the chosen firm to be
appointed for the financial year beginning 1 July 2019. The planned
commencement date is one year later than previously intended in order to
provide adequate time for the chosen firm to manage independence requirements.
On 10 April 2017, BHP Billiton received a letter from Elliott Associates, L.P.
and Elliott International, L.P. (Elliott). The letter outlined a proposal for
changes to BHP Billiton Group's Dual Listed Company (DLC) structure, portfolio
and capital management. Having reviewed the elements of Elliott's proposals,
the Board has concluded that the costs and associated disadvantages of
Elliott's proposal would significantly outweigh the potential benefits and that
Elliott materially overstates the potential value that could be created by its
proposals. We have outlined our clear roadmap to maximise the value of our
assets. We continue to make strong progress across our six focus areas for
value creation, underpinned by our Capital Allocation Framework which balances
the need to invest in our business, create the strength and flexibility to take
advantage of opportunities as they arise and to efficiently return capital to
our shareholders. We are confident that our strategy is in the best long-term
interests of all shareholders.
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BHP Billiton Operational Review for 3
the nine months ended 31 March 2017
Petroleum
Production
Mar YTD17 Mar Q17 Mar Q17
Mar 2017 Mar 2017 vs vs vs
YTD Qtr Mar YTD16 Mar Q16 Dec Q16
-------- -------- --------- ------- -------
Crude oil, condensate and natural gas liquids (MMboe). 73.0 24.8 (19%) (15%) 4%
Natural gas (bcf)..................................... 501 155 (12%) (15%) (6%)
----- ---- --- --- --
Total petroleum production (MMboe).................... 156.5 50.6 (15%) (15%) (2%)
----- ---- --- --- --
Total petroleum production - Total petroleum production for the nine months
ended March 2017 decreased by 15 per cent to 156.5 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 - Production for the nine months
ended March 2017 decreased by 19 per cent to 73.0 MMboe.
Onshore US liquids volumes decreased by 33 per cent to 25.9 MMboe as a result of
a reduction in activity in the Black Hawk for value, and natural field decline
at Hawkville, which more than offset increased liquids production from the
Permian.
Conventional liquids volumes decreased by eight per cent to 47.1 MMboe, as an
additional infill well at Mad Dog and higher production at Algeria and North
West Shelf partially offset planned maintenance at Atlantis and natural field
decline across the portfolio.
Natural gas - Production for the nine months ended March 2017 declined by
12 per cent to 501 bcf.
The decline primarily reflects lower Onshore US gas volumes as a result of the
value driven decisions to defer development activity and the divestment of our
Pakistan gas business in December 2015. This was partially offset by higher
demand at Bass Strait and Macedon, and increased LNG volumes at North West
Shelf.
Projects
Capital Initial
expenditure production
Project and ownership (US$m) target date Capacity Progress
--------------------- ----------- ----------- ----------------------------------- ---------------------------------
North West Shelf Greater 314 CY19 To maintain LNG plant On schedule and budget. The
Western Flank-B throughput from the North West overall project is 42% complete.
(Australia) Shelf operations.
16.67% (non-operator)
Mad Dog Phase 2 2,154 CY22 New floating production facility Project approved by all joint
(US Gulf of Mexico) with the capacity to produce up to venture partners.
23.9% (non-operator) 140,000 gross barrels of crude oil
per day.
The Bass Strait Longford Gas Conditioning Plant was fully commissioned during
the March 2017 quarter and is now running at design capacity, enabling full
production from the Turrum and Kipper fields.
During the March 2017 quarter, the Board of BHP Billiton approved the
development of the Mad Dog Phase 2 project in the deepwater Green Canyon area
of the Gulf of Mexico. The project includes a new floating production facility
with the capacity to produce up to 140,000 gross barrels of crude oil per day
at an estimated cost of US$9 billion (US$2.2 billion BHP Billiton share). This
project has now been sanctioned by all joint venture partners.
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, along with commitments related to the recently approved Mad
Dog Phase 2 project. Onshore US capital expenditure is expected to be US$0.6
billion, with development activity tailored to market conditions.
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BHP Billiton Operational Review for 4
the nine months ended 31 March 2017
Onshore US development activity
Onshore US drilling and development expenditure for the nine months ended March
2017 was approximately US$440 million. During the March 2017 quarter, our
operated rig count remained at three, with the second approved rig in the
Haynesville now expected to commence operation early in the June 2017 quarter.
Development activity is increasing with the approval of two further rigs in the
Haynesville in this quarter, with gas prices hedged and supply contracts secured
to deliver attractive rates of return. Operations are expected to commence in the
September 2017 quarter.
Accelerated completion of drilled and uncompleted inventory in the Black Hawk
has led to higher oil volumes in the March 2017 quarter. Tests continue on the
potential for staggered wells to increase recovery, larger frac jobs to improve
productivity and the potential of the Upper Eagle Ford horizon. We expect early
results to be known during the September 2017 quarter. Planning for enhanced
oil recovery trials is also ongoing to drive the improvement of liquids
recovery in the Eagle Ford.
The optimisation of Permian acreage has progressed through trades and swaps in
the Delaware Basin. Further potential of our Permian acreage is being evaluated
through a series of completions trials.
We are working with joint venture partners in the Fayetteville to assess the
potential of the Moorefield horizon.
Liquids focused areas Gas focused areas
March 2017 YTD --------------------- --------------------------
(March 2016 YTD) Eagle Ford Permian Haynesville Fayetteville Total
---------------- ---------- --------- ----------- ------------- -------------
Capital expenditure/(i)/.. US$ billion 0.2 (0.7) 0.2 (0.3) 0.0 (0.0) 0.0 (0.0) 0.4 (1.1)
Rig allocation............ At period end 1 (3) 1 (2) 1 (0) 0 (0) 3 (5)
Net wells drilled
and completed/(ii)/..... Period total 44 (88) 17 (25) 2 (5) 2 (10) 65 (128)
Net productive wells...... At period end 963 (926) 124 (100) 392 (411) 1,045 (1,086) 2,524 (2,523)
(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.
We have initiated the divestment of non-core acreage for value. The sale of up
to 50,000 acres in the southern Hawkville is well advanced, with bids received
and under evaluation. Our Fayetteville acreage is currently under review and we
are considering all options including divestment.
Since our entry into Onshore US, we have made significant advances in our
operating capability and capital productivity which underpin the development of
these fields at the optimal pace as prices recover. Having initially invested
for growth, we have learnt from experience and our value over volume strategy,
combined with strict adherence to our capital allocation framework and use of a
hedging strategy to mitigate downside risks, ensures that every
decision is focused on generating shareholder value.
Petroleum exploration
Exploration and appraisal wells drilled during the March 2017 quarter are
summarised below.
BHP
Billiton Total well
Well Location Target equity Spud date Water depth depth Status
---- -------------- ------ ---------- ----------- ------------ ---------- ---------------------
Wildling-1. Gulf of Mexico Oil 100% 8 January 1,230 m 5,950 m Plugged and abandoned
GC520 (Operator) 2017
The Wildling-1 well encountered mechanical difficulty and was plugged and
abandoned in April 2017. The Wildling-2 well was spud on 15 April 2017 and
drilling is in progress, with results expected in the September 2017 quarter.
The Scimitar exploration well is expected to be spud in the September 2017
quarter.
On 3 March 2017, BHP Billiton executed a contract with Pemex 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. The agreement
includes a commitment to deliver a Minimum Work Program consisting of one
appraisal well, one exploration well and the acquisition of additional seismic
data.
In Trinidad and Tobago, appraisal work continues following Phase 1 of the deepwater
drilling campaign to assess the potential commercialisation of the gas
discovery at LeClerc and to prepare for deepwater oil exploration in Phase 2,
which is expected to commence in the second half of the 2018 financial year.
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BHP Billiton Operational Review for 5
the nine months ended 31 March 2017
In the US Gulf of Mexico, BHP Billiton was the apparent high bidder on two
leases adjacent to the Scimitar prospect (GC260 and GC304) in the Central Gulf
of Mexico Lease Sale 247. BHP Billiton (28.32 per cent equity interest), with
BP (Operator), was the apparent high bidder on two leases adjacent to the Mad
Dog field (GC 738 and GC870). The award of the leases remain subject to
regulatory approval.
In Australia, seismic work continued in the Exmouth sub-basin following
regulatory approval of the Good Standing Agreement in relation to the WA-475-P
permit. The seismic survey is expected to be completed during May 2017.
Petroleum exploration expenditure for the nine months ended March 2017 was
US$590 million, of which US$263 million was expensed. Guidance of US$820
million remains unchanged for the 2017 financial year.
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BHP Billiton Operational Review for 6
the nine months ended 31 March 2017
Copper
Production
Mar YTD17 Mar Q17 Mar Q17
Mar 2017 Mar 2017 vs vs vs
YTD Qtr Mar YTD16 Mar Q16 Dec Q16
-------- -------- --------- ------- -------
Copper (kt)................... 939 227 (20%) (44%) (36%)
Zinc (t)...................... 58,426 20,653 19% 73% (8%)
Uranium oxide concentrate (t). 2,924 948 (16%) (1%) (11%)
Copper - Total copper production for the nine months ended March 2017 decreased
by 20 per cent to 939 kt. Guidance for the 2017 financial year has been reduced
to between 1,330 and 1,360 kt following 44 days of industrial action at
Escondida.
Escondida copper production for the nine months ended March 2017 decreased by
23 per cent to 546 kt due to industrial action. The strike ended on 24 March
2017 when Union N(degrees)1 informed BHP Billiton that they would exercise
their rights under Article 369 of the Labour Code to extend the existing
collective agreement for 18 months. Operations are expected to return to full
capacity during April 2017, with a focus on safety during the transition
period. Escondida copper production of between 780 and 800 kt is now expected
for the 2017 financial year. The commissioning of the Escondida Water Supply
project and the planned ramp-up of the Los Colorados Extension project are now
expected in the September 2017 quarter, as a result of the industrial action
and delayed mobilisation.
Pampa Norte copper production for the nine months ended March 2017 decreased by
two per cent to 182 kt. Production increased by 23 per cent from the December
2016 quarter with Spence operating at a 200 ktpa rate following the completion
of the Spence Recovery Optimisation project and the restart of the Cerro
Colorado Ore Handling Plant 2 in November 2016. Pampa Norte copper production
guidance for the 2017 financial year remains unchanged and is expected to be
higher than the prior year.
Olympic Dam copper production for the nine months ended March 2017 decreased by
29 per cent to 115 kt following the state-wide power outage during September
and October 2016 and unplanned maintenance at the refinery during December 2016
and January 2017. Guidance for the 2017 financial year remains unchanged at
approximately 160 to 170 kt. A major smelter maintenance campaign is planned
for the September 2017 quarter.
Antamina copper production for the nine months ended March 2017 decreased by 12
per cent to 95 kt as record material mined was more than offset by lower copper
grades and the shutdown of the concentrate pipeline due to the impact of adverse
weather conditions. Guidance for the 2017 financial year remains unchanged at
130 kt. Zinc production for the nine months ended March 2017 increased by 19 per
cent to 58 kt, with guidance for the 2017 financial year unchanged at 90 kt.
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BHP Billiton Operational Review for 7
the nine months ended 31 March 2017
Iron Ore
Production
Mar YTD17 Mar Q17 Mar Q17
Mar 2017 Mar 2017 vs vs vs
YTD Qtr Mar YTD16 Mar Q16 Dec Q16
-------- -------- --------- ------- -------
Iron ore/(i)/ (kt). 171,211 53,575 3% 1% (11%)
(i)Represents Western Australia Iron Ore (WAIO). Excludes production from
Samarco.
Iron ore - Total iron ore production for the nine months ended March 2017
increased by three per cent to a record 171 Mt, or 199 Mt on a 100 per cent
basis. Guidance for the 2017 financial year has been narrowed to between 231
and 234 Mt, or between 268 and 272 Mt on a 100 per cent basis.
WAIO production for the nine months ended March 2017 increased as a result of
the successful completion of commissioning of a new primary crusher and
additional conveying capacity at Jimblebar, ongoing progress on the rail
renewal and maintenance program and productivity improvements. This was
partially offset by wet weather impacts in the March 2017 quarter. The rail
renewal and maintenance program is expected to be completed in the June 2017
quarter, in line with the earlier completion date highlighted previously.
On 10 March 2017, BHP Billiton lodged a submission with the Department of
Environment Regulation to increase its export licence from 270 Mtpa to 275
Mtpa. BHP Billiton will continue to work with the authorities in relation to
the necessary permits to enable an increase in system capacity to 290 Mtpa in
the 2019 financial year.
Our Yandi mine is currently operating at 80 Mtpa but will be depleted over the
next five to 10 years. We are looking at options to replace this production and
the low-capital intensive development of South Flank is the preferred long-term
solution, subject to Board approval being obtained. The investment case for
using this high-grade deposit for replacement tonnes is strong, given our
ability to leverage existing infrastructure at the Mining Area C operation.
Mining and processing operations at Samarco remain suspended following the
failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.
During the March 2017 quarter, 35 kt of pellet feed sales were finalised.
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BHP Billiton Operational Review for 8
the nine months ended 31 March 2017
Coal
Production
Mar YTD17 Mar Q17 Mar Q17
Mar 2017 Mar 2017 vs vs vs
YTD Qtr Mar YTD16 Mar Q16 Dec Q16
-------- -------- --------- ------- -------
Metallurgical coal/(i)/ (kt). 31,276 10,134 2% 2% (5%)
Energy coal/(ii)/ (kt)....... 20,949 7,418 0% 9% 12%
(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 nine months ended
March 2017 increased by two per cent to 31 Mt. Guidance for the 2017 financial
year has been reduced to between 39 and 41 Mt as a result of damage caused by
Cyclone Debbie to the network infrastructure of rail track provider Aurizon.
At Queensland Coal, record production was achieved at five mines, underpinned
by improved stripping and mining performance, higher yields at Caval Ridge and
Saraji, and increased wash-plant utilisation. This was partially offset by a
planned longwall move at Broadmeadow and reduced rail capacity as a result of
damage caused by Cyclone Debbie.
BHP Billiton approved the US$204 million (100 per cent basis) Caval
Ridge Southern Circuit project in March 2017. The project, which includes an 11
km conveyor belt from Peak Downs to Caval Ridge, will enable full utilisation
of the 10 Mtpa Caval Ridge wash-plant. Production is expected to ramp-up early
in the 2019 financial year.
Energy coal - Energy coal production for the nine months ended March 2017
remained broadly in line at 21 Mt. Guidance for the 2017 financial year remains
unchanged at 30 Mt.
Truck utilisation at New South Wales Energy Coal improved, however production
declined five per cent as higher drawdown of inventories benefitted the March
2016 period. This was offset by a nine per cent increase in volumes at Cerrejon
compared to the nine months ended March 2016 which was constrained by drought
conditions.
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BHP Billiton Operational Review for 9
the nine months ended 31 March 2017
Other
Nickel production
Mar YTD17 Mar Q17 Mar Q17
Mar 2017 Mar 2017 vs vs vs
YTD Qtr Mar YTD16 Mar Q16 Dec Q16
-------- -------- --------- ------- -------
Nickel (kt). 59.9 19.0 5% (5%) (14%)
Nickel - Nickel West production for the nine months ended March 2017 increased
by five per cent to 59.9 kt as a result of ongoing debottlenecking activities.
Nickel production guidance for the 2017 financial year remains unchanged and is
expected to increase by approximately 10 per cent from the prior year.
Potash project
Investment
Project and ownership (US$m) Scope Progress
--------------------- ---------- ------------------------------------------------------ --------------------------------
Jansen Potash..... 2,600 Investment to finish the excavation and lining of the The project is 67% complete and
(Canada).......... production and service shafts, and to continue the within the approved budget. Shaft
100%.............. installation of essential surface infrastructure and excavation is progressing.
utilities.
Minerals exploration
Minerals exploration expenditure for the nine months ended March 2017 was
US$110 million, of which US$110 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.
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Variance analysis relates to the relative performance of BHP Billiton and/or
its operations during the nine months ended March 2017 compared with the nine
months ended March 2016, 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.
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).
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BHP Billiton Operational Review for 10
the nine months ended 31 March 2017
Sponsor: UBS South Africa (Pty) Limited
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http://www.bhpbilliton.com/media-and-insights/reports-and-presentations/2016/09/2016-annual-reporting-suite.
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Email: Neil.Burrows@bhpbilliton.com
North America
Bronwyn Wilkinson
Mobile: +1 604 340 8753
Email: Bronwyn.Wilkinson@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
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--------------------------------------------------------------------------------
BHP Billiton Operational Review for 11
the nine months ended 31 March 2017
Production summary
Quarter ended Year to date
---------------------------------- ---------------
Mar Jun Sep Dec Mar Mar Mar
BHP Billiton 2016 2016 2016 2016 2017 2017 2016
interest ------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Petroleum
Crude oil, condensate and NGL (Mboe)
Onshore US........................... 12,454 9,469 8,288 8,143 9,439 25,870 38,712
Conventional......................... 16,727 16,896 15,959 15,768 15,369 47,096 50,962
------ ------ ------ ------ ------ ------- -------
Total................................ 29,181 26,365 24,247 23,911 24,808 72,966 89,674
------ ------ ------ ------ ------ ------- -------
Natural gas (bcf)
Onshore US........................... 89.9 82.0 73.9 67.8 66.1 207.8 282.5
Conventional......................... 91.5 95.7 107.8 97.1 88.4 293.3 284.5
------ ------ ------ ------ ------ ------- -------
Total................................ 181.4 177.7 181.7 164.9 154.5 501.1 567.0
------ ------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------ ------- -------
Total petroleum production (MMboe)...... 59.4 56.0 54.5 51.4 50.6 156.5 184.2
------ ------ ------ ------ ------ ------- -------
Copper /(2)/
Copper
Payable metal in concentrate (kt)
Escondida /(3)/...................... 57.5% 174.9 182.7 147.0 162.6 67.6 377.2 466.2
Antamina............................. 33.8% 35.4 38.7 34.1 32.0 29.2 95.3 107.7
------ ------ ------ ------ ------ ------- -------
Total................................ 210.3 221.4 181.1 194.6 96.8 472.5 573.9
------ ------ ------ ------ ------ ------- -------
Cathode (kt)
Escondida /(3)/...................... 57.5% 84.8 85.3 70.5 71.5 27.2 169.2 245.0
Pampa Norte /(4)/.................... 100% 59.8 65.8 62.1 53.8 66.1 182.0 185.6
Olympic Dam.......................... 100% 49.8 40.7 40.9 37.2 36.8 114.9 162.1
------ ------ ------ ------ ------ ------- -------
Total................................ 194.4 191.8 173.5 162.5 130.1 466.1 592.7
------ ------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------ ------- -------
Total copper (kt)....................... 404.7 413.2 354.6 357.1 226.9 938.6 1,166.6
------ ------ ------ ------ ------ ------- -------
Lead
Payable metal in concentrate (t)
Antamina............................. 33.8% 1,193 645 1,146 1,220 1,308 3,674 3,074
------ ------ ------ ------ ------ ------- -------
Total................................ 1,193 645 1,146 1,220 1,308 3,674 3,074
------ ------ ------ ------ ------ ------- -------
Zinc
Payable metal in concentrate (t)
Antamina............................. 33.8% 11,913 6,474 15,367 22,406 20,653 58,426 48,964
------ ------ ------ ------ ------ ------- -------
Total................................ 11,913 6,474 15,367 22,406 20,653 58,426 48,964
------ ------ ------ ------ ------ ------- -------
Gold
Payable metal in concentrate (troy oz)
Escondida /(3)/...................... 57.5% 31,408 35,894 27,561 37,784 11,572 76,917 73,102
Olympic Dam (refined gold)........... 100% 29,028 20,010 24,366 29,651 21,941 75,958 97,676
------ ------ ------ ------ ------ ------- -------
Total................................ 60,436 55,904 51,927 67,435 33,513 152,875 170,778
------ ------ ------ ------ ------ ------- -------
Silver
Payable metal in concentrate (troy koz)
Escondida /(3)/...................... 57.5% 1,544 1,874 1,229 1,323 540 3,092 3,687
Antamina............................. 33.8% 1,751 1,558 1,345 1,446 1,301 4,092 5,153
Olympic Dam (refined silver)......... 100% 174 232 163 188 174 525 685
------ ------ ------ ------ ------ ------- -------
Total................................ 3,469 3,664 2,737 2,957 2,015 7,709 9,525
------ ------ ------ ------ ------ ------- -------
Uranium
Payable metal in concentrate (t)
Olympic Dam.......................... 100% 961 876 916 1,060 948 2,924 3,487
------ ------ ------ ------ ------ ------- -------
Total................................ 961 876 916 1,060 948 2,924 3,487
------ ------ ------ ------ ------ ------- -------
Molybdenum
Payable metal in concentrate (t)
Antamina............................. 33.8% 227 562 561 225 30 816 551
------ ------ ------ ------ ------ ------- -------
Total................................ 227 562 561 225 30 816 551
------ ------ ------ ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 12
the nine months ended 31 March 2017
Production summary
Quarter ended Year to date
---------------------------------- ---------------
Mar Jun Sep Dec Mar Mar Mar
BHP Billiton 2016 2016 2016 2016 2017 2017 2016
interest ------ ------ ------ ------ ------ ------- -------
Iron Ore
Iron Ore
Production (kt) /(5)/
Newman............................... 85% 15,817 15,115 18,008 17,751 16,283 52,042 50,826
Area C Joint Venture................. 85% 11,002 11,911 12,384 12,179 11,165 35,728 34,888
Yandi Joint Venture.................. 85% 16,204 18,325 15,729 17,555 14,656 47,940 49,050
Jimblebar /(6)/...................... 85% 5,472 5,304 6,057 5,178 4,824 16,059 13,586
Wheelarra............................ 85% 4,562 4,971 5,409 7,386 6,647 19,442 17,578
Samarco.............................. 50% -- -- -- -- -- -- 5,404
------ ------ ------ ------ ------ ------- -------
Total................................ 53,057 55,626 57,587 60,049 53,575 171,211 171,332
------ ------ ------ ------ ------ ------- -------
Coal
Metallurgical coal
Production (kt) /(7)/
BMA.................................. 50% 7,894 9,225 8,384 8,684 7,996 25,064 24,188
BHP Billiton Mitsui Coal /(8)/....... 80% 2,015 2,345 2,145 1,929 2,138 6,212 6,553
Haju /(9)/........................... 75% 167 260 102 27 -- 129 269
------ ------ ------ ------ ------ ------- -------
Total................................ 10,076 11,830 10,631 10,640 10,134 31,405 31,010
------ ------ ------ ------ ------ ------- -------
Energy coal
Production (kt)
USA.................................. 100% 1,112 632 451 -- -- 451 6,420
Australia............................ 100% 4,189 3,991 3,952 3,851 4,662 12,465 13,110
Colombia............................. 33.3% 2,610 2,329 2,928 2,800 2,756 8,484 7,765
------ ------ ------ ------ ------ ------- -------
Total................................ 7,911 6,952 7,331 6,651 7,418 21,400 27,295
------ ------ ------ ------ ------ ------- -------
Other
Nickel
Saleable production (kt)
Nickel West.......................... 100% 20.0 23.4 18.8 22.1 19.0 59.9 57.3
------ ------ ------ ------ ------ ------- -------
Total................................ 20.0 23.4 18.8 22.1 19.0 59.9 57.3
------ ------ ------ ------ ------ ------- -------
(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 a 100% basis. BHP Billiton interest in saleable production is 80%.
(9)Shown on a 100% basis. BHP Billiton interest in saleable production is 75%.
Throughout this report figures in italics indicate that this figure has been
adjusted since it was previously reported.
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 13
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
---------------------------------- ---------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/
Bass Strait
Crude oil and condensate.................. (Mboe) 1,813 1,745 1,922 1,770 1,355 5,047 5,080
NGL....................................... (Mboe) 1,455 1,831 2,102 1,460 1,236 4,798 4,853
Natural gas............................... (bcf) 30.3 38.1 41.9 31.3 28.7 101.9 92.9
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 8.3 9.9 11.0 8.4 7.4 26.8 25.4
------ ------ ------ ------ ------ ------- -------
North West Shelf
Crude oil and condensate.................. (Mboe) 1,124 925 1,486 1,468 1,239 4,193 3,909
NGL....................................... (Mboe) 259 241 292 263 200 755 721
Natural gas............................... (bcf) 33.8 27.6 38.7 36.9 32.2 107.8 102.6
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 7.0 5.8 8.2 7.9 6.8 22.9 21.7
------ ------ ------ ------ ------ ------- -------
Pyrenees
Crude oil and condensate.................. (Mboe) 2,093 2,097 1,676 1,726 1,509 4,911 6,520
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.1 2.1 1.7 1.7 1.5 4.9 6.5
------ ------ ------ ------ ------ ------- -------
Other Australia /(2)/
Crude oil and condensate.................. (Mboe) 8 9 10 8 8 26 30
Natural gas............................... (bcf) 16.2 17.2 17.5 17.1 15.2 49.8 47.2
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.7 2.9 2.9 2.9 2.5 8.3 7.9
------ ------ ------ ------ ------ ------- -------
Atlantis /(3)/
Crude oil and condensate.................. (Mboe) 4,056 4,058 3,054 3,263 3,881 10,198 11,950
NGL....................................... (Mboe) 270 269 208 207 295 710 779
Natural gas............................... (bcf) 1.9 1.9 1.5 1.6 2.1 5.2 5.5
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 4.6 4.6 3.5 3.7 4.5 11.8 13.6
------ ------ ------ ------ ------ ------- -------
Mad Dog /(3)/
Crude oil and condensate.................. (Mboe) 880 1,134 950 1,170 1,185 3,305 2,116
NGL....................................... (Mboe) 41 52 36 52 59 147 105
Natural gas............................... (bcf) 0.1 0.2 0.1 0.2 0.2 0.5 0.3
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.9 1.2 1.0 1.3 1.3 3.5 2.3
------ ------ ------ ------ ------ ------- -------
Shenzi /(3)/
Crude oil and condensate.................. (Mboe) 3,094 2,813 2,632 2,692 2,675 7,999 9,556
NGL....................................... (Mboe) 206 192 94 131 161 386 711
Natural gas............................... (bcf) 0.6 0.6 0.5 0.5 0.5 1.5 2.1
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 3.4 3.1 2.8 2.9 2.9 8.6 10.6
------ ------ ------ ------ ------ ------- -------
Eagle Ford /(4)/
Crude oil and condensate.................. (Mboe) 7,018 4,949 3,871 4,008 5,451 13,330 21,874
NGL....................................... (Mboe) 3,649 2,717 2,268 2,159 2,354 6,781 11,254
Natural gas............................... (bcf) 25.1 19.5 16.5 15.2 17.0 48.7 76.3
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 14.9 10.9 8.9 8.7 10.6 28.2 45.8
------ ------ ------ ------ ------ ------- -------
Permian /(4)/
Crude oil and condensate.................. (Mboe) 1,499 1,410 1,415 1,378 1,202 3,995 4,334
NGL....................................... (Mboe) 288 393 734 580 428 1,742 1,249
Natural gas............................... (bcf) 2.4 4.9 4.4 4.4 4.0 12.8 9.7
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 2.2 2.6 2.9 2.7 2.3 7.9 7.2
------ ------ ------ ------ ------ ------- -------
Haynesville /(4)/
Crude oil and condensate.................. (Mboe) -- -- -- 3 1 4 1
NGL....................................... (Mboe) -- -- -- 15 3 18 --
Natural gas............................... (bcf) 34.4 31.1 28.2 24.0 22.0 74.2 105.5
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 5.7 5.2 4.7 4.0 3.7 12.4 17.6
------ ------ ------ ------ ------ ------- -------
Fayetteville /(4)/
Natural gas............................... (bcf) 28.0 26.5 24.8 24.2 23.1 72.1 91.0
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 4.7 4.4 4.1 4.0 3.9 12.0 15.2
------ ------ ------ ------ ------ ------- -------
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 14
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
---------------------------------- ---------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
------ ------ ------ ------ ------ ------- -------
Petroleum /(1)/ (continued)
Trinidad/Tobago
Crude oil and condensate.................. (Mboe) 120 162 140 156 127 423 547
Natural gas............................... (bcf) 7.4 8.6 6.4 8.4 8.4 23.2 22.4
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 1.4 1.6 1.2 1.6 1.5 4.3 4.3
------ ------ ------ ------ ------ ------- -------
Other Americas /(3) (5)/
Crude oil and condensate.................. (Mboe) 334 308 275 269 257 801 1,055
NGL....................................... (Mboe) 12 10 1 5 6 12 40
Natural gas............................... (bcf) 0.2 0.2 0.1 0.1 0.1 0.3 0.6
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.4 0.4 0.3 0.3 0.3 0.9 1.2
------ ------ ------ ------ ------ ------- -------
UK
Crude oil and condensate.................. (Mboe) 65 76 69 63 72 204 198
NGL....................................... (Mboe) 10 10 22 49 32 103 33
Natural gas............................... (bcf) 1.0 1.3 1.1 1.0 1.0 3.1 3.0
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.2 0.3 0.3 0.3 0.3 0.8 0.7
------ ------ ------ ------ ------ ------- -------
Algeria
Crude oil and condensate.................. (Mboe) 887 964 990 1,016 1,072 3,078 2,725
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) 0.9 1.0 1.0 1.0 1.1 3.1 2.7
------ ------ ------ ------ ------ ------- -------
Pakistan /(6)/
Crude oil and condensate.................. (Mboe) -- -- -- -- -- -- 42
Natural gas............................... (bcf) -- -- -- -- -- -- 7.9
------ ------ ------ ------ ------ ------- -------
Total petroleum products.................. (MMboe) -- -- -- -- -- -- 1.4
------ ------ ------ ------ ------ ------- -------
BHP Billiton Petroleum
Crude oil and condensate
Onshore US................................ (Mboe) 8,517 6,359 5,286 5,389 6,654 17,329 26,209
Conventional /(7)/........................ (Mboe) 14,474 14,291 13,204 13,601 13,380 40,185 43,720
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 22,991 20,650 18,490 18,990 20,034 57,514 69,929
------ ------ ------ ------ ------ ------- -------
NGL
Onshore US................................ (Mboe) 3,937 3,110 3,002 2,754 2,785 8,541 12,503
Conventional.............................. (Mboe) 2,253 2,605 2,755 2,167 1,989 6,911 7,242
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 6,190 5,715 5,757 4,921 4,774 15,452 19,745
------ ------ ------ ------ ------ ------- -------
Natural gas
Onshore US................................ (bcf) 89.9 82.0 73.9 67.8 66.1 207.8 282.5
Conventional.............................. (bcf) 91.5 95.7 107.8 97.1 88.4 293.3 284.5
------ ------ ------ ------ ------ ------- -------
Total..................................... (bcf) 181.4 177.7 181.7 164.9 154.5 501.1 567.0
------ ------ ------ ------ ------ ------- -------
Total petroleum products
Onshore US................................ (Mboe) 27,437 23,136 20,605 19,443 20,456 60,503 85,795
Conventional /(7)/........................ (Mboe) 31,977 32,846 33,926 31,951 30,102 95,979 98,379
------ ------ ------ ------ ------ ------- -------
Total..................................... (Mboe) 59,414 55,982 54,530 51,394 50,558 156,483 184,174
------ ------ ------ ------ ------ ------- -------
(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.
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 15
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile /(1)/
Material mined........................... (kt) 105,970 108,037 106,504 90,863 26,045 223,412 325,237
Sulphide ore milled...................... (kt) 21,188 22,905 20,787 19,866 8,054 48,707 62,084
Average copper grade..................... (%) 0.99% 0.94% 0.87% 1.02% 1.01% 0.95% 0.99%
Production ex mill....................... (kt) 175.8 181.7 153.2 168.6 55.1 376.9 488.3
Production...............................
Payable copper........................... (kt) 174.9 182.7 147.0 162.6 67.6 377.2 466.2
Copper cathode (EW)...................... (kt) 84.8 85.3 70.5 71.5 27.2 169.2 245.0
- Oxide leach............................ (kt) 31.0 31.3 26.8 24.4 8.9 60.1 86.5
- Sulphide leach......................... (kt) 53.8 54.0 43.7 47.1 18.3 109.1 158.5
-------- -------- -------- -------- -------- -------- --------
Total copper............................. (kt) 259.7 268.0 217.5 234.1 94.8 546.4 711.2
-------- -------- -------- -------- -------- -------- --------
Payable gold concentrate................. (troy oz) 31,408 35,894 27,561 37,784 11,572 76,917 73,102
Payable silver concentrate............... (troy koz) 1,544 1,874 1,229 1,323 540 3,092 3,687
Sales....................................
Payable copper........................... (kt) 181.7 186.6 134.9 172.7 63.7 371.3 463.1
Copper cathode (EW)...................... (kt) 80.3 83.8 65.6 71.8 39.4 176.8 245.2
Payable gold concentrate................. (troy oz) 31,408 35,894 27,561 37,784 11,572 76,917 73,102
Payable silver concentrate............... (troy koz) 1,544 1,874 1,229 1,323 540 3,092 3,687
(1)Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.
Pampa Norte, Chile
Cerro Colorado...........................
Material mined........................... (kt) 12,415 12,453 13,011 14,286 15,178 42,475 41,215
Ore milled............................... (kt) 4,012 4,375 3,241 3,342 4,179 10,762 13,571
Average copper grade..................... (%) 0.84% 0.80% 0.68% 0.65% 0.57% 0.63% 0.76%
Production...............................
Copper cathode (EW)...................... (kt) 20.0 24.8 17.1 12.1 16.7 45.9 52.5
Sales....................................
Copper cathode (EW)...................... (kt) 18.6 25.2 16.4 13.7 15.6 45.7 51.3
Spence...................................
Material mined........................... (kt) 22,549 21,124 23,638 22,635 22,939 69,212 67,064
Ore milled............................... (kt) 4,355 4,836 4,713 5,187 5,225 15,125 14,420
Average copper grade..................... (%) 1.39% 1.22% 1.17% 1.19% 1.09% 1.15% 1.36%
Production...............................
Copper cathode (EW)...................... (kt) 39.8 41.0 45.0 41.7 49.4 136.1 133.1
Sales....................................
Copper cathpode (EW)..................... (kt) 38.4 40.9 41.2 41.5 49.0 131.7 132.7
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 16
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%).................... (kt) 55,183 62,793 65,111 61,355 55,771 182,237 164,106
Sulphide ore milled (100%)............... (kt) 12,414 14,711 13,522 13,399 11,955 38,876 40,898
Average head grades......................
- Copper................................. (%) 1.02% 0.90% 0.84% 0.84% 0.88% 0.85% 0.94%
- Zinc................................... (%) 0.54% 0.33% 0.60% 0.83% 0.84% 0.75% 0.63%
Production...............................
Payable copper........................... (kt) 35.4 38.7 34.1 32.0 29.2 95.3 107.7
Payable zinc............................. (t) 11,913 6,474 15,367 22,406 20,653 58,426 48,964
Payable silver........................... (troy koz) 1,751 1,558 1,345 1,446 1,301 4,092 5,153
Payable lead............................. (t) 1,193 645 1,146 1,220 1,308 3,674 3,074
Payable molybdenum....................... (t) 227 562 561 225 30 816 551
Sales....................................
Payable copper........................... (kt) 29.3 42.4 32.8 33.0 30.2 96.0 103.0
Payable zinc............................. (t) 12,097 3,035 16,043 22,334 23,669 62,046 51,267
Payable silver........................... (troy koz) 1,331 2,055 1,277 1,388 1,304 3,969 4,901
Payable lead............................. (t) 1,073 1,108 767 1,100 1,475 3,342 2,395
Payable molybdenum....................... (t) 178 331 648 476 -- 1,124 472
Olympic Dam, Australia
Material mined /(1)/..................... (kt) 2,210 1,993 2,204 1,887 1,943 6,034 6,939
Ore milled............................... (kt) 2,174 2,031 2,279 2,116 2,112 6,507 7,668
Average copper grade..................... (%) 2.01% 2.20% 1.97% 2.00% 2.07% 2.01% 1.95%
Average uranium grade.................... (kg/t) 0.61 0.59 0.60 0.68 0.61 0.63 0.61
Production...............................
Copper cathode (ER and EW)............... (kt) 49.8 40.7 40.9 37.2 36.8 114.9 162.1
Uranium oxide concentrate................ (t) 961 876 916 1,060 948 2,924 3,487
Refined gold............................. (troy oz) 29,028 20,010 24,366 29,651 21,941 75,958 97,676
Refined silver........................... (troy koz) 174 232 163 188 174 525 685
Sales....................................
Copper cathode (ER and EW)............... (kt) 49.4 43.9 37.5 41.2 33.5 112.2 159.2
Uranium oxide concentrate................ (t) 1,261 778 1,085 883 839 2,807 2,951
Refined gold............................. (troy oz) 32,052 22,134 21,901 28,234 22,333 72,468 96,818
Refined silver........................... (troy koz) 198 201 184 203 108 495 676
(1)Material mined refers to run of mine ore mined and hoisted.
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 17
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production...............................
Newman................................... (kt) 15,817 15,115 18,008 17,751 16,283 52,042 50,826
Area C Joint Venture..................... (kt) 11,002 11,911 12,384 12,179 11,165 35,728 34,888
Yandi Joint Venture...................... (kt) 16,204 18,325 15,729 17,555 14,656 47,940 49,050
Jimblebar /(1)/.......................... (kt) 5,472 5,304 6,057 5,178 4,824 16,059 13,586
Wheelarra................................ (kt) 4,562 4,971 5,409 7,386 6,647 19,442 17,578
-------- -------- -------- -------- -------- -------- --------
Total production......................... (kt) 53,057 55,626 57,587 60,049 53,575 171,211 165,928
-------- -------- -------- -------- -------- -------- --------
Total production (100%).................. (kt) 61,454 64,508 66,681 69,730 62,177 198,588 192,812
-------- -------- -------- -------- -------- -------- --------
Sales....................................
Lump..................................... (kt) 13,380 13,054 14,156 14,127 12,804 41,087 41,269
Fines.................................... (kt) 40,078 42,673 42,278 45,447 41,043 128,768 124,582
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 53,458 55,727 56,434 59,574 53,847 169,855 165,851
-------- -------- -------- -------- -------- -------- --------
Total sales (100%)....................... (kt) 61,927 64,617 65,368 69,196 62,513 197,077 192,729
-------- -------- -------- -------- -------- -------- --------
(1)Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.
Samarco, Brazil /(1)/
Production............................... (kt) -- -- -- -- -- -- 5,404
Sales.................................... (kt) 224 94 12 -- 35 47 6,180
(1)Mining and processing operations remain suspended following the failure of
the Fundao tailings dam and Santarem water dam on 5 November 2015.
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 18
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Coal
Coal production is reported on the basis of saleable product.
Queensland Coal
Production /(1)/.........................
BMA......................................
Blackwater............................... (kt) 1,756 2,206 1,981 1,855 1,694 5,530 5,420
Goonyella................................ (kt) 2,478 2,709 2,123 2,204 1,871 6,198 6,287
Peak Downs............................... (kt) 1,159 1,385 1,520 1,715 1,582 4,817 3,646
Saraji................................... (kt) 1,046 1,123 1,238 1,307 1,276 3,821 3,083
Gregory Joint Venture /(2)/.............. (kt) 13 -- -- -- -- -- 1,329
Daunia................................... (kt) 626 684 646 680 674 2,000 1,940
Caval Ridge.............................. (kt) 816 1,118 876 923 899 2,698 2,483
-------- -------- -------- -------- -------- -------- --------
Total BMA................................ (kt) 7,894 9,225 8,384 8,684 7,996 25,064 24,188
-------- -------- -------- -------- -------- -------- --------
BHP Billiton Mitsui Coal /(3)/...........
South Walker Creek....................... (kt) 1,268 1,382 1,341 1,080 1,354 3,775 4,054
Poitrel.................................. (kt) 747 963 804 849 784 2,437 2,499
-------- -------- -------- -------- -------- -------- --------
Total BHP Billiton Mitsui Coal........... (kt) 2,015 2,345 2,145 1,929 2,138 6,212 6,553
-------- -------- -------- -------- -------- -------- --------
Total Queensland Coal.................... (kt) 9,909 11,570 10,529 10,613 10,134 31,276 30,741
-------- -------- -------- -------- -------- -------- --------
Sales....................................
Coking coal.............................. (kt) 7,348 8,059 7,240 7,658 7,133 22,031 22,005
Weak coking coal......................... (kt) 2,681 3,196 2,799 2,659 2,761 8,219 8,622
Thermal coal............................. (kt) 241 310 206 154 96 456 617
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 10,270 11,565 10,245 10,471 9,990 30,706 31,244
-------- -------- -------- -------- -------- -------- --------
(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) 167 260 102 27 -- 129 269
Sales - export........................... (kt) 148 239 117 -- -- 117 148
(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) 694 632 451 -- -- 451 3,367
San Juan Coal /(2)/...................... (kt) 418 -- -- -- -- -- 3,053
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 1,112 632 451 -- -- 451 6,420
-------- -------- -------- -------- -------- -------- --------
Sales thermal coal - local utility....... 1,106 613 105 -- -- 105 6,438
(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) 4,189 3,991 3,952 3,851 4,662 12,465 13,110
Sales....................................
Export thermal coal...................... (kt) 3,410 3,993 3,640 3,539 4,407 11,586 12,621
Inland thermal coal...................... (kt) 234 440 331 311 431 1,073 716
-------- -------- -------- -------- -------- -------- --------
Total.................................... (kt) 3,644 4,433 3,971 3,850 4,838 12,659 13,337
-------- -------- -------- -------- -------- -------- --------
Cerrejon, Colombia
Production............................... (kt) 2,610 2,329 2,928 2,800 2,756 8,484 7,765
Sales thermal coal - export.............. (kt) 2,339 2,844 2,905 2,722 2,613 8,240 7,757
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 19
the nine months ended 31 March 2017
Production and sales report
Quarter ended Year to date
-------------------------------------------- -----------------
Mar Jun Sep Dec Mar Mar Mar
2016 2016 2016 2016 2017 2017 2016
-------- -------- -------- -------- -------- -------- --------
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Production...............................
Nickel contained in concentrate.......... (kt) 0.3 0.3 0.3 0.2 0.2 0.7 1.2
Nickel contained in finished matte....... (kt) 2.8 5.8 1.8 4.1 2.3 8.2 10.4
Nickel metal............................. (kt) 16.9 17.3 16.7 17.8 16.5 51.0 45.7
-------- -------- -------- -------- -------- -------- --------
Total nickel production.................. (kt) 20.0 23.4 18.8 22.1 19.0 59.9 57.3
-------- -------- -------- -------- -------- -------- --------
Sales....................................
Nickel contained in concentrate.......... (kt) 0.3 0.3 0.3 0.2 0.2 0.7 1.2
Nickel contained in finished matte....... (kt) 2.7 5.9 1.8 4.1 2.2 8.1 10.6
Nickel metal............................. (kt) 17.8 17.4 16.5 17.6 17.1 51.2 45.5
-------- -------- -------- -------- -------- -------- --------
Total nickel sales....................... (kt) 20.8 23.6 18.6 21.9 19.5 60.0 57.3
-------- -------- -------- -------- -------- -------- --------
--------------------------------------------------------------------------------
BHP Billiton Operational Review for 20
the nine months ended 31 March 2017
Date: 26/04/2017 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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