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BHP Group Limited Interim / Quarterly Report 2015

Jan 20, 2015

14787_rns_2015-01-20_5d93a3ac-a973-459f-b443-209f2afd9ee2.pdf

Interim / Quarterly Report

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NEWS RELEASE

Release Time IMMEDIATE

==> picture [143 x 118] intentionally omitted <==

Date 21 January 2015 Number 1/15

BHP BILLITON OPERATIONAL REVIEW FOR THE HALF YEAR ENDED 31 DECEMBER 2014

  • Group production increased by 9% during the December 2014 half year with records achieved for eight operations and five commodities. Production guidance remains unchanged and we are on track to deliver Group production growth of 16% over the two years to the end of the 2015 financial year.

  • Metallurgical coal production increased by 21% to 26 Mt in the December 2014 half year as Queensland Coal and Illawarra Coal both achieved record half year volumes.

  • Western Australia Iron Ore production increased by 15% to a record of 124 Mt (100% basis) in the December 2014 half year as the ramp-up of Jimblebar continued and we improved the availability, utilisation and rate of our integrated supply chain.

  • Petroleum production increased by 9% to a record 131 MMboe in the December 2014 half year supported by a 71% increase in Onshore US liquids volumes to 24.4 MMboe.

  • Copper production[(1)] decreased by 2% to 813 kt as strong underlying operating performance across the business was offset by lower grades at Antamina.

  • Record manganese ore and alumina production was underpinned by strong performances at both Hotazel and the Alumar refinery.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Our operational performance over the last six months has been strong. We are reducing costs and improving both operating and capital productivity across the Group faster than originally planned. These improvements will help mitigate some of the impact of lower commodity prices and we remain alert to opportunities to further increase free cash flow.

“In Petroleum, we have moved quickly in response to lower prices and will reduce the number of rigs we operate in our Onshore US business by approximately 40 per cent by the end of this financial year. The revised drilling program will benefit from significant improvements in drilling and completions efficiency. Our ongoing shale investment program will remain focused on our liquids-rich Black Hawk acreage. However, we will keep this activity under review and make further changes if we believe deferring development will create more value than near-term production.

“We continue to believe that our planned demerger will help support further improvements in operating performance in both the core BHP Billiton and South32 assets. Within BHP Billiton, it would allow us to identify and deploy best practice across our assets more quickly and simplify our organisation to reduce overheads. We are making good progress towards securing the approvals we require to put the proposal to a shareholder vote in May and remain on track to complete the process before the end of the financial year.”

BHP Billiton Operational Review for the half year ended 31 December 2014

1

Operational performance summary

Production for the December 2014 half year and quarter is summarised in the table below.

DEC DEC DEC H14 DEC Q14 DEC Q14
2014 2014 vs vs vs
Production HALF QTR DEC H13 DEC Q13 SEP Q14
Total petroleum production (MMboe) 131.0 63.6 9% 10% (6%)
Copper (kt) 813.1 423.7 (4%) (4%) 9%
Iron ore (kt) 113,443 56,352 16% 16% (1%)
Metallurgical coal (kt) 26,307 13,538 21% 17% 6%
Energy coal (kt) 36,459 18,622 (3%) 5% 4%
Alumina (kt) 2,633 1,398 1% 3% 13%
Aluminium (kt) 517 256 (16%) (15%) (2%)
Manganese ores (kt) 4,555 2,296 7% 4% 2%
Manganese alloys (kt) 372 201 23% 21% 18%
Nickel (kt) 69.9 34.2 (11%) (10%) (4%)

Production guidance for the 2015 financial year is summarised in the table below.

Production guidance FY14 FY15e % change
Petroleum (MMboe)(2) 243 255 5%
Copper (Mt)(1) 1.7 1.8 5%
Iron ore (Mt) 204 225 11%
Metallurgical coal (Mt) 45 47 4%
Energy coal (Mt) 73 73 -

Major development projects

The Escondida Oxide Leach Area Project was successfully completed during the December 2014 quarter and the BMA Hay Point Stage Three Expansion project loaded first coal on 12 January 2015, both on revised schedule and budget. The Escondida Oxide Leach Area Project will not be reported in future Operational Reviews.

At the end of the December 2014 half year, BHP Billiton had seven major projects under development with a combined budget of US$13.5 billion.

Corporate update

On 8 December 2014, BHP Billiton announced that the new company it intends to create through its proposed demerger will be called South32. A final Board decision on the proposed demerger will be made once all necessary third party approvals are secured on satisfactory terms. On this basis, BHP Billiton expects to release all shareholder documentation with full details of the proposed demerger in mid-March 2015, with a shareholder vote taking place in early May 2015. The demerger remains on track to be completed in the first half of the 2015 calendar year.

BHP Billiton expects Underlying attributable profit in the December 2014 half year to include impairment charges in the range of approximately US$200 million to US$250 million recognised as a result of the divestment of conventional petroleum assets in North Louisiana and unconventional gas assets in the Pecos field in the Permian.

Additional charges to be recognised in the December 2014 half year
(US$ million)		 Underlying
EBIT(3)		 Underlying
attributable profit(3)
Impairments 300 to 400 200 to 250
Total charges 300 to 400 200 to 250

BHP Billiton Operational Review for the half year ended 31 December 2014

2

The Minerals Resource Rent Tax (MRRT) in Australia has been repealed and was applicable until 30 September 2014. As a result, the MRRT deferred tax asset carried by the Group was derecognised and an income tax charge of US$809 million will be reported as an exceptional item in the December 2014 half year. The Group’s adjusted effective tax rate[(4)] is expected to remain in the range of 30 per cent to 34 per cent in the December 2014 half year.

On 12 November 2014, BHP Billiton announced that the review of its Nickel West business was complete and the preferred option, the sale of the business, was not achieved on an acceptable basis. As a result of operational decisions made subsequent to the conclusion of this process, an impairment charge in the range of US$200 million to US$350 million (after tax expense) will be recognised as an exceptional item in the December 2014 half year. At this time, Nickel West remains in the BHP Billiton portfolio and the Company continues to operate the business to maximise production, reduce operating costs and increase free cash flow.

This guidance will be updated should material information or events arise as the Company finalises its financial statements.

Marketing update

The average realised prices achieved for our major commodities are summarised in the table below. Iron ore shipments, on average, were linked to the index price for the month of shipment, with price differentials reflecting product quality. 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, with price differentials reflecting product quality.

Average realised prices(5)
DEC
2014
HALF
DEC
2013
HALF
JUN
2014
HALF
FY14		 DEC H14 DEC H14
DEC H14
vs
vs
vs

DEC H13
JUN H14
FY14
Oil (crude and condensate) (US$/bbl)
85
103
102
102
(17%)
(17%)
(17%)
Natural gas (US$/Mscf)(6)
4.21
3.81
4.89
4.35
10%
(14%)
(3%)
US natural gas (US$/Mscf)
3.89
3.44
4.75
4.10
13%
(18%)
(5%)
LNG (US$/Mscf)
13.76
14.63
14.71
14.67
(6%)
(6%)
(6%)
Copper (US$/lb)(7)
2.98
3.36
3.09
3.22
(11%)
(4%)
(7%)
Iron ore (US$/wmt, FOB)
70
112
96
103
(38%)
(27%)
(32%)
Hard coking coal (US$/t)
110
142
121
131
(23%)
(9%)
(16%)
Weak coking coal (US$/t)
92
116
104
111
(21%)
(12%)
(17%)
Thermal coal (US$/t)(8)
60
74
67
70
(19%)
(10%)
(14%)
Alumina (US$/t)(6)
330
291
320
307
13%
3%
7%
Aluminium (US$/t)
2,378
1,996
2,049
2,022
19%
16%
18%
Manganese ore (US$/dmtu)(6)
4.00
4.90
4.41
4.64
(18%)
(9%)
(14%)
Manganese alloy (US$/t)
946
952
1,001
980
(1%)
(5%)
(3%)
Nickel metal (US$/t)
16,757
13,615
16,391
14,925
23%
2%
12%

At 31 December 2014, the Group had 322 kt of outstanding copper sales that were revalued at a weighted average price of US$2.87 per pound. The final price of these sales will be determined over the remainder of the 2015 financial year. In addition, 350 kt of copper sales from the 2014 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will decrease earnings before interest and tax by US$210 million in the December 2014 half year (December 2013 half year: US$196 million increase).

BHP Billiton Operational Review for the half year ended 31 December 2014

3

Petroleum and Potash

Production

DEC DEC DEC H14 DEC Q14 DEC Q14
2014 2014 vs vs vs
HALF QTR DEC H13 DEC Q13 SEP Q14
Crude oil, condensate and natural gas liquids (MMboe) 62.1 31.2 24% 30% 1%
Natural gas (bcf) 413.3 194.4 (2%) (4%) (11%)
Total petroleum products (MMboe) 131.0 63.6 9% 10% (6%)

Total petroleum production – Total petroleum production increased by nine per cent in the December 2014 half year to a record 131.0 MMboe. Guidance for the 2015 financial year remains unchanged at 255 MMboe.

Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production increased by 24 per cent in the December 2014 half year to 62.1 MMboe.

Onshore US liquids volumes rose by 71 per cent in the December 2014 half year to a record 24.4 MMboe. This strong performance was underpinned by continued momentum in the Black Hawk and Permian where liquids production increased by 81 per cent and 107 per cent, respectively.

In our Conventional business, liquids production at Pyrenees and Atlantis increased by 34 per cent and 12 per cent, respectively, supported by strong uptime performance and the completion of new production wells in the second half of the 2014 financial year.

Natural gas – Natural gas production declined by two per cent in the December 2014 half year to 413 bcf.

Strong uptime performance at North West Shelf and Macedon partially offset lower seasonal demand at Bass Strait and the divestment of Liverpool Bay which was completed in the 2014 financial year.

Projects

Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
North West Shelf 400 CY16 To maintain LNG plant throughput On schedule and budget. The overall
Greater Western from the North West Shelf operations.
project is 85% complete.
Flank-A
(Australia)
16.67%
(non-operator)
Bass Strait Longford 520 CY16 Designed to process approximately On schedule and budget. The overall
Gas Conditioning 400 MMcf/d of high-CO2gas. project is 45% complete.
Plant
(Australia)
50% (non-operator)

Onshore US development activity

Onshore US drilling and development expenditure totalled US$1.9 billion in the December 2014 half year. In response to weaker prices, the Company will reduce its operated rig count from 26 at period end to 16 by the end of the 2015 financial year. An update to the drilling and development expenditure budget for the 2015 financial year will be provided with the release of our interim results in February 2015.

The majority of the revised drilling program will be focused on our liquids-rich Black Hawk acreage with activity in the Permian and Hawkville limited to the retention of core acreage. The Company’s dry gas development program will be reduced to one operated rig in the Haynesville, with a focus on continued drilling and completions optimisation ahead of full field development.

The reduction in drilling activity will not impact 2015 financial year production guidance and we remain confident that shale liquids volumes will rise by approximately 50 per cent in the period.

BHP Billiton Operational Review for the half year ended 31 December 2014

4

As announced in October 2014, we are actively marketing our Fayetteville acreage and will only pursue a divestment if full value can be realised, consistent with our long-term outlook for gas prices.

December 2014 half year Liquids focused areas Liquids focused areas Gas focused areas
(December 2013 half year) Eagle Ford
Permian		 Haynesville
Fayetteville
Total
Capital expenditure US$ billion 1.2 (1.6)
0.4 (0.2)		 0.2 (0.2)
0.1 (0.1)
1.9 (2.1)
Rig allocation At period end 18 (18)
5 (2)		 3 (5)
0 (0)
26 (25)
Net wells drilled and completed Period total 85 (154)
18 (18)		 13 (17)
8 (49)
124 (238)
Net productive wells At period end 732 (544)
49(9)(46)		 406(9)(879)
1,021 (1,000)
2,208 (2,469)

Capital expenditure includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines. The number of wells drilled and completed can vary significantly from period to period 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 2014 quarter are summarised below.

BHP Billiton Total well
Well Location Target equity Spud date Water depth depth Status
Perseus-1 Gulf of Oil 15%(10) 21 September 1,401 m 7,036 m Plugged and
Mexico (Statoil operator)
2014		 abandoned
DC231 Dry hole

Petroleum exploration expenditure for the December 2014 half year was US$268 million, of which US$244 million was expensed. Total petroleum exploration expenditure for the 2015 financial year is now forecast to be US$600 million, a 20 per cent reduction from prior guidance. The program will remain focused on the Gulf of Mexico, Western Australia and Trinidad and Tobago.

The seismic acquisition program in Trinidad and Tobago was successfully completed for the seven deep water blocks accessed between 2012 and 2014[(11)] . The acquisition for the two blocks awarded in the 2014 deep water bid round is progressing on schedule[(12)] .

Potash

Project and Investment
ownership (US$m) Scope Progress
Jansen Potash 2,600 Investment to finish the excavation and lining of the Shaft excavation continuing. The
(Canada) production and service shafts, and to continue the overall project is 39% complete and
100% installation of essential surface infrastructure and within the approved budget.
utilities.

BHP Billiton Operational Review for the half year ended 31 December 2014

5

Copper

Production

DEC DEC DEC H14 DEC Q14 DEC Q14
2014 2014 vs vs vs
HALF QTR DEC H13 DEC Q13 SEP Q14
Copper (kt) 813.1 423.7 (4%) (4%) 9%
Lead (t) 99,685 50,111 6% 5% 1%
Zinc (t) 73,973 33,310 20% 1% (18%)
Silver (troy koz) 16,688 7,620 (5%) (14%) (16%)
Uranium oxide concentrate (t) 1,942 1,076 (2%) 7% 24%

Copper – Total copper production[(1)] decreased by two per cent in the December 2014 half year to 813 kt. Guidance for the 2015 financial year remains unchanged at 1.8 Mt.

Escondida copper production decreased by two per cent in the December 2014 half year to 553 kt. Strong operating performance, including a 14 per cent increase in truck utilisation, resulted in record material mined for the period. This was offset by the impact of water restrictions during the December 2014 quarter, as anticipated, along with two days of industrial action and a power outage throughout Northern Chile during the September 2014 quarter. Production guidance for Escondida remains unchanged at 1.27 Mt of copper for the 2015 financial year.

Pampa Norte copper production increased by 22 per cent in the December 2014 half year to 125 kt as Spence benefited from higher grades and recoveries. Production at Pampa Norte for the 2015 financial year is expected to remain broadly unchanged from the prior year as higher grades and recoveries at Spence continue to offset declining grades and recoveries at Cerro Colorado.

Olympic Dam copper production increased by four per cent in the December 2014 half year to 82 kt. Production in the 2015 financial year is expected to remain broadly unchanged from the prior year with planned smelter maintenance scheduled for the June 2015 quarter.

Antamina copper production declined by 37 per cent in the December 2014 half year to 53 kt as lower grades more than offset record mill throughput. Average copper grades at Antamina for the remainder of the 2015 financial year are expected to remain at a similar level to the December 2014 half year, consistent with the mine plan.

Lead – Lead production increased by six per cent in the December 2014 half year supported by higher mill throughput at Cannington and higher grades at Antamina.

Silver – Silver production decreased by five per cent in the December 2014 half year as higher mill throughput at Antamina and Cannington was more than offset by lower average ore grades at both operations, consistent with the mine plans.

Zinc – Zinc production increased by 20 per cent in the December 2014 half year and primarily reflected higher grades at Antamina, consistent with the mine plan. Cannington achieved record zinc production during the period underpinned by higher grades and increased mill throughput.

Uranium – Uranium production in the December 2014 half year was broadly unchanged from the prior period.

BHP Billiton Operational Review for the half year ended 31 December 2014

6

Projects

Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
Escondida Oxide 933 H2 CY14 New dynamic leaching pad and First production achieved in Q4 CY14
Leach Area Project mineral handling system. Maintains on revised schedule and budget. The
(Chile) oxide leaching capacity. project is 100% complete.
57.5%
Escondida Organic 4,199 H1 CY15 New concentrator with 152 ktpd On schedule and revised budget. The
Growth Project 1 capacity. overall project is 94% complete.
(Chile)
57.5%
Escondida Water 3,430 CY17 New desalination facility to ensure On schedule and budget. The overall
Supply continued water supply to Escondida. project is 29% complete.
(Chile)
57.5%

BHP Billiton Operational Review for the half year ended 31 December 2014

7

Iron Ore

Production

DEC DEC DEC H14 DEC Q14 DEC Q14
2014 2014 vs vs vs
HALF QTR DEC H13 DEC Q13 SEP Q14
Iron ore (kt) 113,443 56,352 16% 16% (1%)

Iron ore – Total iron ore production increased by 16 per cent in the December 2014 half year to a record 113 Mt. Guidance for the 2015 financial year remains unchanged at 225 Mt.

Western Australia Iron Ore (WAIO) production increased by 15 per cent in the December 2014 half year to a record 124 Mt (100 per cent basis) as the ramp-up of Jimblebar continued and we improved the availability, utilisation and rate of our integrated supply chain. WAIO also achieved record sales volumes of 126 Mt (100 per cent basis) in the December 2014 half year as our strategy of increasing the percentage of direct to ship ore unlocks further port capacity.

Our WAIO business continues to perform strongly and we have retained guidance of 245 Mt (100 per cent basis) for the 2015 financial year. Further growth in supply chain capacity to 270 Mtpa (100 per cent basis) is expected to be achieved without the need for additional fixed plant investment. Beyond that, the Inner Harbour Debottlenecking and Jimblebar Phase 2 projects[(13)] have the potential to increase total capacity to 290 Mtpa (100 per cent basis) by the end of the 2017 financial year at very low capital cost.

Samarco production increased by 29 per cent in the December 2014 half year to a record 14 Mt (100 per cent basis) as the ramp-up of the fourth pellet plant continues to plan.

BHP Billiton Operational Review for the half year ended 31 December 2014

8

Coal

Production

DEC DEC DEC H14 DEC Q14 DEC Q14
2014 2014 vs vs vs
HALF QTR DEC H13 DEC Q13 SEP Q14
Metallurgical coal (kt) 26,307 13,538 21% 17% 6%
Energy coal (kt) 36,459 18,622 (3%) 5% 4%

Metallurgical coal – Metallurgical coal production increased by 21 per cent in the December 2014 half year to a record 26 Mt. Our metallurgical coal operations continue to perform strongly and we have retained guidance of 47 Mt for the 2015 financial year ahead of the wet season and planned longwall moves at the Crinum, Dendrobium and West Cliff underground mines.

Queensland Coal delivered record production and sales volumes primarily as a result of increased equipment utilisation and the successful ramp-up of the Caval Ridge mine. Record production at Goonyella, Daunia and Poitrel contributed to the strong result.

Illawarra Coal achieved record production of 4.7 Mt in the December 2014 half year as maintenance efficiencies supported higher equipment utilisation rates. The 41 per cent increase from the December 2013 half year also reflects an extended outage at Dendrobium in the prior period.

Energy coal – Energy coal production decreased by three per cent in the December 2014 half year to 36 Mt. Guidance for the 2015 financial year remains unchanged at 73 Mt.

As anticipated, drought conditions constrained production volumes at Cerrejón given the need to manage dust emissions, while Navajo Coal production declined following lower customer demand arising from the closure of three of the five power units at the Four Corners Power Plant. New South Wales Energy Coal production also declined as a result of processing lower yield material during the period and an additional planned wash-plant outage. At South Africa Energy Coal, higher wash-plant utilisation contributed to a 10 per cent increase from the December 2013 half year which was affected by industrial action.

Projects

Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
Hay Point Stage 1,505(14) CY15 Increases port capacity from 44 Mtpa On revised schedule and budget. The
Three Expansion to 55 Mtpa and reduces storm overall project is 95% complete. First
(Australia) vulnerability. coal loaded on 12 January 2015.
50%
Appin Area 9 845 CY16 Maintains Illawarra Coal’s production On schedule and budget. The overall
(Australia) capacity with a replacement mining project is 77% complete.
100% domain and capacity to produce
3.5 Mtpa of metallurgical coal.

BHP Billiton Operational Review for the half year ended 31 December 2014

9

Aluminium, Manganese and Nickel

Production

DEC DEC DEC H14 DEC Q14 DEC Q14
2014 2014 vs vs vs
HALF QTR DEC H13 DEC Q13 SEP Q14
Alumina (kt) 2,633 1,398 1% 3% 13%
Aluminium (kt) 517 256 (16%) (15%) (2%)
Manganese ores (kt) 4,555 2,296 7% 4% 2%
Manganese alloys (kt) 372 201 23% 21% 18%
Nickel (kt) 69.9 34.2 (11%) (10%) (4%)

Alumina – Alumina production was broadly unchanged in the December 2014 half year at 2.6 Mt and included record production at the Alumar refinery. Worsley achieved record production in the December 2014 quarter as it recovered from a series of calciner outages in the prior period.

Aluminium – Aluminium production decreased by 16 per cent in the December 2014 half year to 517 kt. Lower volumes primarily reflected the suspension of smelter capacity at Alumar and cessation of smelting activities at Bayside during the 2014 financial year and more than offset record production at Mozal in the December 2014 half year.

Manganese ores – Manganese ore production increased by seven per cent in the December 2014 half year to a record 4.6 Mt as an improvement in ore recovery at Mamatwan and an increase in plant availability at Wessels underpinned record production at Hotazel.

– Manganese alloys Manganese alloy production increased by 23 per cent in the December 2014 half year, supported by increased smelter stability and availability at both TEMCO and Metalloys.

Nickel – Nickel production declined by 11 per cent in the December 2014 half year to 70 kt. Lower volumes reflected the closure of the Perseverance underground mine at Nickel West in November 2013 and lower grades and recoveries at Cerro Matoso. Nickel West and Cerro Matoso production guidance for the 2015 financial year remains unchanged at 95 kt and 43 kt, respectively.

As announced on 19 August 2014, in contemplation of the proposed demerger, BHP Billiton and Anglo American have agreed to make certain changes to the agreement which governs their interests in the Manganese business. Subject to obtaining the required approvals for the agreement, expected in the second half of the 2015 financial year, the changes will result in BHP Billiton and Anglo American agreeing to share joint control of the Manganese business.

BHP Billiton Operational Review for the half year ended 31 December 2014

10

Minerals exploration

Minerals exploration expenditure for the December 2014 half year was US$154 million, of which US$115 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru and the South-West United States.

Variance analysis relates to the relative performance of BHP Billiton and/or its operations during the December 2014 half year compared with the December 2013 half year, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries (which include Escondida, Jimblebar, BHP Billiton Mitsui Coal and our manganese operations) are reported on a 100 per cent basis; production volumes, sales volumes and capital and exploration expenditure from equity accounted investments (which include Antamina, Samarco and Cerrejón) and other operations are reported on a proportionate consolidation basis.

The following footnotes apply to this Operational Review:

  • (1) Excludes Pinto Valley which was sold during the 2014 financial year.

  • (2) Excludes Liverpool Bay which was sold during the 2014 financial year.

  • (3) Underlying attributable profit and Underlying EBIT are used to reflect the underlying performance of BHP Billiton. Underlying attributable profit is Attributable profit excluding any exceptional items. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items.

  • (4) The Group’s adjusted effective tax rate excludes the influence of exchange rate movements, remeasurement of deferred tax assets associated with the Minerals Resource Rent Tax (MRRT) and exceptional items.

  • (5) Based on provisional, unaudited estimates. Prices exclude third party product and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted.

  • (6) Excludes internal sales.

  • (7) Includes third party product.

  • (8) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

  • (9) Change in productive well count includes the reduction associated with the divestments of North Louisiana conventional assets (Haynesville) and Pecos unconventional gas assets (Permian).

  • (10) Well costs fully borne by partners.

  • (11) 17,687 square kilometres 3D seismic acquisition completed over Trinidad and Tobago Blocks 5, 6, 14, 23a, 23b, 28 and 29.

  • (12) 3,528 square kilometres 3D seismic acquisition in progress over Trinidad and Tobago Blocks 3 and 7.

  • (13) Subject to Board approval.

  • (14) Excludes announced pre-commitment funding.

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).

BHP Billiton Operational Review for the half year ended 31 December 2014

11

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

Media Relations

Investor Relations

Australia

Emily Perry Tel: +61 3 9609 2800 Mobile: +61 477 325 803 email: [email protected]

Paul Hitchins Tel: + 61 3 9609 2592 Mobile: + 61 419 315 001 email: [email protected]

Eleanor Nichols Tel: +61 3 9609 2360 Mobile: +61 407 064 748 email: [email protected]

United Kingdom

Ruban Yogarajah Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 email: [email protected]

Jennifer White Tel: +44 20 7802 7462 Mobile: +44 7827 253 764 email: [email protected]

Americas

Ruban Yogarajah Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 email: [email protected]

Australia

Tara Dines Tel: +61 3 9609 2222 Mobile: +61 499 249 005 email: [email protected]

Andrew Gunn

Tel: +61 3 9609 3575 Mobile: +61 402 087 354 email: [email protected]

United Kingdom and South Africa

Jonathan Price

Tel: +44 20 7802 4131 Mobile: +44 7990 527 726 email: [email protected]

Dean Simon Tel: +44 20 7802 7461 Mobile: +44 7717 511 193 email: [email protected]

Americas

James Agar Tel: +1 212 310 1421 Mobile: +1 347 882 3011 email: [email protected]

Joseph Suarez Tel: +1 212 310 1422 Mobile: +1 646 400 3803 email: [email protected]

BHP Billiton Limited ABN 49 004 028 077 Registered in Australia Registered Office: Level 16, 171 Collins Street Melbourne Victoria 3000 Australia Tel +61 1300 55 4757 Fax +61 3 9609 3015 Members of the BHP Billiton Group which is headquartered in Australia

BHP Billiton Plc Registration number 3196209 Registered in England and Wales Registered Office: Neathouse Place London SW1V 1LH United Kingdom Tel +44 20 7802 4000 Fax +44 20 7802 4111

BHP Billiton Operational Review for the half year ended 31 December 2014

12

BHP BILLITON PRODUCTION SUMMARY

QUARTER ENDED
DEC
SEP
DEC
2013
2014
2014		 YEAR TO DATE
DEC
DEC
2014
2013		 % CHANGE
DEC YTD14 DEC Q14
DEC Q14
vs
vs
vs
DEC YTD13 DEC Q13
SEP Q14
Petroleum
Crude oil, condensate and NGL (Mboe)
Natural gas
(bcf)
Total petroleum production
(MMboe)		 23,973
30,945
31,163
202.6
218.9
194.4
57.7
67.4
63.6		 62,108
50,026
413.3
422.3
131.0
120.4		 24%
30%
1%
(2%)
(4%)
(11%)
9%
10%
(6%)
Copper
Copper
(kt)
Lead
(t)
Zinc
(t)
Gold
(troy oz)
Silver
(troy koz)
Uranium
(t)
Molybdenum
(t)		 439.9
389.4
423.7
47,839
49,574
50,111
32,855
40,663
33,310
45,655
52,344
51,247
8,850
9,068
7,620
1,008
866
1,076
379
40
75		 813.1
843.2
99,685
94,284
73,973
61,410
103,591
85,843
16,688
17,538
1,942
1,978
115
837		 (4%)
(4%)
9%
6%
5%
1%
20%
1%
(18%)
21%
12%
(2%)
(5%)
(14%)
(16%)
(2%)
7%
24%
(86%)
(80%)
88%
Iron ore
Iron ore
(kt)		 48,688
57,091
56,352		 113,443
97,641		 16%
16%
(1%)
Coal
Metallurgical coal
(kt)
Energy coal
(kt)		 11,540
12,769
13,538
17,767
17,837
18,622		 26,307
21,725
36,459
37,406		 21%
17%
6%
(3%)
5%
4%
Aluminium, Manganese and Nickel
Alumina
(kt)
Aluminium
(kt)
Manganese ores
(kt)
Manganese alloys
(kt)
Nickel
(kt)		 1,352
1,235
1,398
302
261
256
2,200
2,259
2,296
166
171
201
37.8
35.7
34.2		 2,633
2,603
517
612
4,555
4,246
372
303
69.9
78.2		 1%
3%
13%
(16%)
(15%)
(2%)
7%
4%
2%
23%
21%
18%
(11%)
(10%)
(4%)

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

_________________ BHP Billiton Operational Review for the half year ended 31 December 2014

13

BHP BILLITON PRODUCTION

BHP BILLITON PRODUCTION
BHP Billiton
interest		 DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Petroleum
Production
Crude oil, condensate and NGL (Mboe) (1)
Onshore US
Coventional
Total
Natural gas (bcf)
Onshore US
Coventional
Total
Total petroleum production (MMboe)		 6,533
8,575
10,540
11,460
12,905
17,440
18,669
18,337
19,485
18,258
23,973
27,244
28,877
30,945
31,163
105.3
109.7
118.9
113.6
110.3
97.3
92.3
96.1
105.3
84.1
202.6
202.0
215.0
218.9
194.4
57.7
60.9
64.7
67.4
63.6		 24,365
14,233
37,743
35,793
62,108
50,026
223.9
220.2
189.4
202.1
413.3
422.3
131.0
120.4
Copper(2)
Copper
Payable metal in concentrate (kt)
Escondida(3)
57.5%
Antamina
33.8%
Pinto Valley(4)
100%
Total
Cathode (kt)
Escondida(3)
57.5%
Pampa Norte(5)
100%
Pinto Valley(4)
100%
Olympic Dam
100%
Total
Total copper		 208.0
190.6
241.0
199.4
208.8
42.4
33.0
26.2
25.7
27.3
1.6
-
-
-
-
252.0
223.6
267.2
225.1
236.1		 408.2
413.1
53.0
84.3
-
12.5
461.2
509.9
77.5
75.8
81.5
69.3
75.0
59.4
63.4
66.8
55.8
69.6
0.1
-
-
-
-
50.9
51.1
54.5
39.2
43.0
187.9
190.3
202.8
164.3
187.6
439.9
413.9
470.0
389.4
423.7		 144.3
150.7
125.4
102.9
-
0.9
82.2
78.8
351.9
333.3
813.1
843.2
Lead
Payable metal in concentrate (t)
Cannington
100%
Antamina
33.8%
Total		 47,259
47,214
45,768
48,941
49,625
580
363
397
633
486
47,839
47,577
46,165
49,574
50,111		 98,566
93,546
1,119
738
99,685
94,284
Zinc
Payable metal in concentrate (t)
Cannington
100%
Antamina
33.8%
Total		 16,123
10,074
15,666
19,927
17,039
16,732
9,335
13,450
20,736
16,271
32,855
19,409
29,116
40,663
33,310		 36,966
32,156
37,007
29,254
73,973
61,410
Gold
Payable metal in concentrate (troy oz)
Escondida(3)
57.5%
Olympic Dam (refined gold)
100%
Pinto Valley(4)
100%
Total		 19,384
20,110
20,920
21,980
12,710
26,271
28,630
38,785
30,364
38,537
-
-
-
-
-
45,655
48,740
59,705
52,344
51,247		 34,690
31,874
68,901
53,920
-
49
103,591
85,843
Silver
Payable metal in concentrate (troy koz)
Escondida(3)
57.5%
Antamina
33.8%
Cannington
100%
Olympic Dam (refined silver)
100%
Pinto Valley(4)
100%
Total		 982
1,078
1,320
1,159
958
1,350
961
843
954
885
6,306
6,465
6,029
6,701
5,534
212
253
317
254
243
-
-
-
-
-
8,850
8,757
8,509
9,068
7,620		 2,117
1,873
1,839
2,555
12,235
12,667
497
402
-
41
16,688
17,538
Uranium
Payable metal in concentrate (t)
Olympic Dam
100%
Total		 1,008
966
1,044
866
1,076
1,008
966
1,044
866
1,076		 1,942
1,978
1,942
1,978

Refer footnotes on page 16.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

14

BHP BILLITON PRODUCTION

BHP BILLITON PRODUCTION
BHP Billiton
interest		 DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Copper(2) (continued)
Molybdenum
Payable metal in concentrate (t)
Antamina
33.8%
Total		 379
281
83
40
75
379
281
83
40
75		 115
837
115
837
Iron Ore
Production (kt)(6)
Newman
85%
Yarrie
85%
Area C Joint Venture
85%
Yandi Joint Venture
85%
Jimblebar(7)
85%
Wheelarra (8)
85%
Samarco
50%
Total		 12,483
15,470
16,766
16,707
16,012
428
206
-
-
-
11,383
11,282
12,481
13,265
11,314
17,135
15,622
17,615
16,607
17,694
1,702
2,721
3,740
3,971
2,813
2,716
1,698
2,973
3,115
4,755
2,841
2,281
3,068
3,426
3,764
48,688
49,280
56,643
57,091
56,352		 32,719
24,679
-
630
24,579
23,197
34,301
35,281
6,784
2,402
7,870
5,882
7,190
5,570
113,443
97,641
Coal
Metallurgical coal
Production (kt)(9)
BMA
50%
BHP Billiton Mitsui Coal(10)
80%
Illawarra
100%
Total		 7,494
7,461
7,596
8,228
9,009
2,114
1,995
2,143
2,204
2,128
1,932
2,011
2,147
2,337
2,401
11,540
11,467
11,886
12,769
13,538		 17,237
14,199
4,332
4,171
4,738
3,355
26,307
21,725
Energy coal
Production (kt)
South Africa(11)
90%
USA
100%
Australia
100%
Colombia
33.3%
Total		 7,036
7,398
8,013
8,026
8,499
2,896
2,359
2,412
2,690
2,512
4,544
5,018
5,030
4,752
4,608
3,291
2,948
2,908
2,369
3,003
17,767
17,723
18,363
17,837
18,622		 16,525
14,973
5,202
6,041
9,360
9,916
5,372
6,476
36,459
37,406
Aluminium, Manganese and Nickel
Alumina
Saleable production (kt)
Worsley
86%
Alumar
36%
Total		 1,024
936
1,010
893
1,060
328
314
315
342
338
1,352
1,250
1,325
1,235
1,398		 1,953
1,970
680
633
2,633
2,603
Aluminium
Production (kt)
Hillside
100%
Bayside (12)
100%
Alumar
40%
Mozal
47.1%
Total		 183
172
176
180
176
24
23
18
-
-
28
26
15
13
13
67
65
67
68
67
302
286
276
261
256		 356
367
-
48
26
63
135
134
517
612
Manganese ores
Saleable production (kt)
South Africa(13)
44.4%
Australia(13)
60%
Total		 944
782
936
1,049
1,007
1,256
1,019
1,319
1,210
1,289
2,200
1,801
2,255
2,259
2,296		 2,056
1,808
2,499
2,438
4,555
4,246
Manganese alloys
Saleable production (kt)
South Africa(13)(14)
60%
Australia(13)
60%
Total		 94
91
106
112
121
72
71
75
59
80
166
162
181
171
201		 233
180
139
123
372
303

Refer footnotes on page 16.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

15

BHP BILLITON PRODUCTION

BHP BILLITON PRODUCTION
BHP Billiton
interest		 DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Aluminium, Manganese and Nickel (continued)
Nickel
Saleable production (kt)
Cerro Matoso
99.9%
Nickel West
100%
Total		 12.3
9.8
10.2
10.7
10.5
25.5
24.3
20.7
25.0
23.7
37.8
34.1
30.9
35.7
34.2		 21.2
24.3
48.7
53.9
69.9
78.2

(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 6,000 scf of natural gas equals 1 boe.

(2) Metal production is reported on the basis of payable metal.

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

(4) BHP Billiton completed the sale of Pinto Valley on 11 October 2013.

(5) Includes Cerro Colorado and Spence.

(6) Iron ore production is reported on a wet tonnes basis.

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

(8) Production from Wheelarra is processed via the Jimblebar processing hub.

(9) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

(10) Shown on 100% basis. BHP Billiton interest in saleable production is 80%.

(11) Shown on 100% basis. BHP Billiton interest in saleable production is 90%.

(12) Aluminium smelting at Bayside ceased with the closure of the final potline in June 2014.

(13) Shown on 100% basis. BHP Billiton interest in saleable production is 60%, except Hotazel Manganese Mines which is 44.4%.

(14) Production includes Medium Carbon Ferro Manganese.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

16

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Petroleum
Crude oil, condensate and NGL (Mboe)
Crude oil and condensate
Bass Strait
North West Shelf
Stybarrow
Pyrenees
Other Australia(1)
Atlantis(2)
Mad Dog(2)
Shenzi(2)
Eagle Ford(3)
Permian(3)
Haynesville(3) (4)
Trinidad/Tobago
Other Americas (2) (5)
UK(6)
Algeria
Pakistan
Total
NGL
Bass Strait
North West Shelf
Atlantis(2)
Mad Dog(2)
Shenzi(2)
Eagle Ford(3)
Permian(3)
Haynesville(3) (4)
Other Americas(2) (5)
UK(6)
Total
Total crude oil, condensate and NGL
Natural gas (bcf)
Bass Strait
North West Shelf
Other Australia(1)
Atlantis(2)
Mad Dog(2)
Shenzi(2)
Eagle Ford(3)
Permian(3)
Haynesville(3) (4)
Fayetteville(3)
Trinidad/Tobago
Other Americas(2) (5)
UK(6)
Pakistan
Total
Total petroleum production (MMboe)(7)		 1,958
2,095
2,355
2,818
2,284
1,497
1,504
1,408
1,501
1,395
317
282
255
225
248
1,295
2,386
2,075
2,109
1,901
12
11
14
17
11
3,988
3,734
4,114
4,175
3,740
496
704
187
390
877
3,201
3,467
3,530
3,530
3,502
3,886
5,215
6,593
7,060
8,098
341
356
463
601
807
11
18
13
16
4
314
279
248
252
227
373
329
371
349
500
305
254
27
34
77
1,156
1,069
996
1,011
1,050
52
49
37
38
33
19,202
21,752
22,686
24,126
24,754
1,603
1,621
2,026
2,161
1,512
234
276
288
293
273
348
288
111
248
294
24
36
39
21
42
252
280
252
271
260
2,009
2,775
3,179
3,421
3,638
286
211
292
362
358
-
-
-
-
-
10
2
-
38
25
5
3
4
4
7
4,771
5,492
6,191
6,819
6,409
23,973
27,244
28,877
30,945
31,163
22.7
21.2
30.5
33.3
18.8
30.3
31.4
31.8
36.9
33.4
15.1
13.2
13.6
16.4
13.0
1.8
1.8
1.9
1.7
2.3
0.1
0.1
0.1
0.1
0.1
0.8
0.8
0.8
0.8
0.8
22.0
23.9
30.8
28.5
26.3
2.2
2.2
2.5
3.0
2.8
42.3
46.3
45.7
45.7
43.6
38.8
37.3
39.9
36.4
37.6
9.7
9.3
9.1
8.8
7.8
0.3
0.2
0.2
0.2
0.2
6.2
5.4
0.8
0.7
1.4
10.3
8.9
7.3
6.4
6.3
202.6
202.0
215.0
218.9
194.4
57.7
60.9
64.7
67.4
63.6		 5,102
4,205
2,896
3,362
473
665
4,010
3,002
28
26
7,915
6,941
1,267
1,228
7,032
6,668
15,158
8,654
1,408
602
20
26
479
634
849
751
111
447
2,061
2,298
71
114
48,880
39,623
3,673
3,604
566
633
542
603
63
62
531
518
7,059
4,524
720
425
-
2
63
21
11
11
13,228
10,403
62,108
50,026
52.1
56.9
70.3
64.5
29.4
24.4
4.0
3.1
0.2
0.2
1.6
1.6
54.8
48.2
5.8
4.3
89.3
91.5
74.0
76.2
16.6
19.6
0.4
0.6
2.1
9.7
12.7
21.5
413.3
422.3
131.0
120.4

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

17

Petroleum (continued)

  • (1) Other Australia includes Minerva and Macedon.

  • (2) Gulf of Mexico volumes are net of royalties.

  • (3) Onshore US volumes are net of mineral holder royalties.

  • (4) Haynesville includes North Louisiana Conventional. BHP Billiton completed the sale of North Louisiana Conventional on 17 November 2014.

  • (5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

  • (6) UK includes Bruce/Keith and Liverpool Bay. BHP Billiton completed the sale of its 46.1% operated interest in Liverpool Bay on 31 March 2014.

  • (7) Total boe conversions are based on 6,000 scf of natural gas equals 1 boe.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

18

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Copper
Metals production is payable metal unless otherwise stated.
Escondida, Chile (1)
Material mined
(kt)
93,814
96,420
94,673
101,920
113,522
Sulphide ore milled
(kt)
19,584
21,051
21,438
20,651
18,354
Average copper grade
(%)
1.30%
1.12%
1.33%
1.20%
1.45%
Production ex mill
(kt)
214.4
195.5
235.6
205.5
215.5
Production
Payable copper(2)
(kt)
208.0
190.6
241.0
199.4
208.8
Payable gold concentrate
(troy oz)
19,384
20,110
20,920
21,980
12,710
Copper cathode (EW)
(kt)
77.5
75.8
81.5
69.3
75.0
Payable silver concentrate
(troy koz)
982
1,078
1,320
1,159
958
Sales
Payable copper
(kt)
228.1
173.2
239.1
203.3
203.2
Payable gold concentrate
(troy oz)
18,602
20,889
20,920
21,980
12,710
Copper cathode (EW)
(kt)
86.7
76.4
83.3
64.1
79.8
Payable silver concentrate
(troy koz)
1,076
1,046
1,320
1,159
958		 215,442
187,558
39,005
37,860
1.32%
1.33%
421.0
425.0
408.2
413.1
34,690
31,874
144.3
150.7
2,117
1,873
406.5
420.4
34,690
31,092
143.9
149.7
2,117
1,912

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

(2) June 2014 quarter includes 4.3 kt of copper contained in ore sold to third parties.

Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 17,487 15,939 17,087 15,517 16,124 31,641 33,258
Ore milled (kt) 4,501 4,508 4,016 4,189 4,446 8,635 8,662
Average copper grade (%) 0.76% 0.75% 0.76% 0.77% 0.70% 0.73% 0.77%
Production
Copper cathode (EW) (kt) 19.4 22.0 21.3 15.7 20.6 36.3 37.0
Sales
Copper cathode (EW) (kt) 17.6 12.4 28.7 20.0 21.0 41.0 34.9
Spence
Material mined (kt) 27,911 25,037 25,962 24,238 23,422 47,660 52,242
Ore milled (kt) 4,788 4,735 3,775 4,409 4,560 8,969 9,648
Average copper grade (%) 1.25% 1.23% 1.30% 1.33% 1.20% 1.26% 1.18%
Production
Copper cathode (EW) (kt) 40.0 41.4 45.5 40.1 49.0 89.1 65.9
Sales
Copper cathode (EW) (kt) 35.9 40.0 49.6 36.9 51.8 88.7 61.8

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

19

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%)
(kt)
50,872
45,837
49,797
54,675
43,793
Sulphide ore milled (100%)
(kt)
12,521
11,729
12,756
12,370
13,594
Average head grades
- Copper
(%)
1.15%
1.00%
0.77%
0.81%
0.74%
- Zinc
(%)
0.72%
0.54%
0.58%
0.84%
0.66%
Production
Payable copper
(kt)
42.4
33.0
26.2
25.7
27.3
Payable zinc
(t)
16,732
9,335
13,450
20,736
16,271
Payable silver
(troy koz)
1,350
961
843
954
885
Payable lead
(t)
580
363
397
633
486
Payable molybdenum
(t)
379
281
83
40
75
Sales
Payable copper
(kt)
44.5
30.2
26.5
26.3
29.8
Payable zinc
(t)
18,397
10,158
14,527
12,912
21,459
Payable silver
(troy koz)
1,367
910
893
896
1,026
Payable lead
(t)
368
405
521
320
711
Payable molybdenum
(t)
442
347
142
50
90		 98,468
107,300
25,964
24,286
0.77%
1.18%
0.75%
0.64%
53.0
84.3
37,007
29,254
1,839
2,555
1,119
738
115
837
56.1
85.8
34,371
34,520
1,922
2,870
1,031
665
140
853
Cannington, Australia
Material mined
(kt)
974
773
806
823
925
Ore milled
(kt)
852
779
821
819
850
Average head grades
- Silver
(g/t)
274
311
286
301
246
- Lead
(%)
6.7%
7.3%
6.9%
7.1%
7.0%
- Zinc
(%)
3.1%
2.4%
3.1%
3.8%
3.2%
Production
Payable silver
(troy koz)
6,306
6,465
6,029
6,701
5,534
Payable lead
(t)
47,259
47,214
45,768
48,941
49,625
Payable zinc
(t)
16,123
10,074
15,666
19,927
17,039
Sales
Payable silver
(troy koz)
6,548
6,127
5,641
7,084
5,631
Payable lead
(t)
47,185
43,649
41,607
51,197
48,482
Payable zinc
(t)
18,241
11,020
15,708
15,450
18,028		 1,748
1,867
1,669
1,602
273
293
7.0%
7.0%
3.5%
3.2%
12,235
12,667
98,566
93,546
36,966
32,156
12,715
14,392
99,679
103,685
33,478
35,527

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

20

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Copper (continued)
Metals production is payable metal unless otherwise stated.
Olympic Dam, Australia
Material mined(1)
(kt)
2,717
2,495
2,405
2,692
2,667
Ore milled
(kt)
2,641
2,421
2,654
2,206
2,776
Average copper grade
(%)
1.86%
1.90%
1.91%
1.97%
1.70%
Average uranium grade
(kg/t)
0.52
0.54
0.51
0.61
0.52
Production
Copper cathode (ER)
(kt)
47.6
48.4
51.3
36.9
39.9
Copper cathode (EW)
(kt)
3.3
2.7
3.2
2.3
3.1
Uranium oxide concentrate
(t)
1,008
966
1,044
866
1,076
Refined gold
(troy oz)
26,271
28,630
38,785
30,364
38,537
Refined silver
(troy koz)
212
253
317
254
243
Sales
Copper cathode (ER)
(kt)
43.3
47.5
54.2
36.6
39.9
Copper cathode (EW)
(kt)
2.8
2.5
3.0
2.5
3.1
Uranium oxide concentrate
(t)
1,037
732
1,426
848
1,125
Refined gold
(troy oz)
32,226
31,129
38,500
30,707
34,938
Refined silver
(troy koz)
177
262
367
227
238		 5,359
5,614
4,982
5,045
1.82%
1.86%
0.56
0.52
76.8
73.5
5.4
5.3
1,942
1,978
68,901
53,920
497
402
76.5
70.1
5.6
4.9
1,973
1,967
65,645
53,901
465
353

(1) Material mined refers to run of mine ore mined and hoisted.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

21

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Iron Ore
(kt)
Iron ore
Pilbara, Australia
Production (1)
Newman
Yarrie(2)
Area C Joint Venture
Yandi Joint Venture
Jimblebar(3)
Wheelarra(4)
Total
Total production (100%)
Sales
Lump
Fines
Total
Total sales (100%)		 12,483
15,470
16,766
16,707
16,012
428
206
-
-
-
11,383
11,282
12,481
13,265
11,314
17,135
15,622
17,615
16,607
17,694
1,702
2,721
3,740
3,971
2,813
2,716
1,698
2,973
3,115
4,755
45,847
46,999
53,575
53,665
52,588
53,638
54,812
62,369
62,436
61,371
9,996
11,230
11,572
12,766
12,661
35,756
35,880
40,834
41,633
41,185
45,752
47,110
52,406
54,399
53,846
53,808
55,018
61,015
63,303
62,848		 32,719
24,679
-
630
24,579
23,197
34,301
35,281
6,784
2,402
7,870
5,882
106,253
92,071
123,807
107,896
25,427
20,288
82,818
71,039
108,245
91,327
126,151
107,369

(1) Iron ore production and sales are reported on a wet tonnes basis.

(2) Yarrie ceased production on 25 February 2014.

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

(4) Production from Wheelarra is processed via the Jimblebar processing hub.

Samarco, Brazil
Production (1) 2,841 2,281 3,068 3,426 3,764 7,190 5,570
Sales 3,025 2,036 3,077 3,303 4,151 7,454 5,701

(1) Iron ore production and sales are reported on a wet tonnes basis.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

22

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Coal
(kt)
Metallurgical coal
Queensland Coal
Production (1)
BMA
Blackwater
Goonyella
Peak Downs
Saraji
Gregory Joint Venture
Daunia
Caval Ridge
Total BMA
BHP Billiton Mitsui Coal
(2)
South Walker Creek
Poitrel
Total BHP Billiton Mitsui Coal
Total Queensland Coal
Sales
Coking coal
Weak coking coal
Thermal coal
Total		 1,655
1,759
1,625
1,777
1,775
1,999
2,041
1,553
2,144
2,350
1,201
1,314
1,282
1,144
1,235
1,195
1,108
1,058
1,022
1,257
850
654
997
808
994
594
585
518
628
617
-
-
563
705
781
7,494
7,461
7,596
8,228
9,009
1,313
1,312
1,323
1,391
1,236
801
683
820
813
892
2,114
1,995
2,143
2,204
2,128
9,608
9,456
9,739
10,432
11,137
6,517
7,030
7,250
7,306
8,379
2,505
2,594
2,358
2,859
2,670
271
122
134
43
171
9,293
9,746
9,742
10,208
11,220		 3,552
3,346
4,494
3,736
2,379
2,313
2,279
2,392
1,802
1,314
1,245
1,098
1,486
-
17,237
14,199
2,627
2,611
1,705
1,560
4,332
4,171
21,569
18,370
15,685
12,640
5,529
4,902
214
431
21,428
17,973

(1) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

(2) Shown on 100% basis. BHP Billiton interest in saleable production is 80%.

Illawarra, Australia
Production (1)
Sales
Coking coal
Thermal coal
Total		 1,932
2,011
2,147
2,337
2,401
1,495
1,581
1,761
1,617
1,830
318
460
486
373
426
1,813
2,041
2,247
1,990
2,256		 4,738
3,355
3,447
2,579
799
677
4,246
3,256

(1) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

23

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Coal (continued)
(kt)
Energy coal
South Africa (1)
Production
Sales
Export
Local utility
Inland
Total		 7,036
7,398
8,013
8,026
8,499
4,087
3,179
3,528
3,739
4,174
3,811
3,478
4,498
4,367
4,650
-
-
-
36
84
7,898
6,657
8,026
8,142
8,908		 16,525
14,973
7,913
6,591
9,017
8,354
120
-
17,050
14,945

(1) Shown on 100% basis. BHP Billiton interest in saleable production is 90%.

New Mexico, USA
Production
Navajo Coal(1)
San Juan Coal
Total
Sales - local utility		 1,400
975
1,082
1,243
1,064
1,496
1,384
1,330
1,447
1,448
2,896
2,359
2,412
2,690
2,512
2,950
2,360
2,382
2,723
2,592		 2,307
3,070
2,895
2,971
5,202
6,041
5,315
6,079

(1) BHP Billiton completed the sale of Navajo Mine on 30 December 2013. As BHP Billiton will retain control of the mine until full consideration is received, production will continue to be reported by the Group.

NSW Energy Coal, Australia
Production
Sales
Export
Inland
Total		 4,544
5,018
5,030
4,752
4,608
4,887
4,346
4,548
4,787
4,625
332
270
333
371
228
5,219
4,616
4,881
5,158
4,853		 9,360
9,916
9,412
8,924
599
778
10,011
9,702
Cerrejón, Colombia
Production
Sales - export		 3,291
2,948
2,908
2,369
3,003
3,067
2,647
2,858
3,077
2,732		 5,372
6,476
5,809
6,222

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

24

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Aluminium, Manganese and Nickel
(kt)
Alumina
Saleable production
Worsley, Australia
Alumar, Brazil
Total
Sales
Worsley, Australia
Alumar, Brazil
Total		 1,024
936
1,010
893
1,060
328
314
315
342
338
1,352
1,250
1,325
1,235
1,398
961
986
1,020
875
1,068
320
262
388
323
371
1,281
1,248
1,408
1,198
1,439		 1,953
1,970
680
633
2,633
2,603
1,943
1,858
694
598
2,637
2,456
Aluminium
Production
Hillside, South Africa
Bayside, South Africa(1)
Alumar, Brazil
Mozal, Mozambique
Total
Sales
Hillside, South Africa
Bayside, South Africa(1)
Alumar, Brazil
Mozal, Mozambique
Total		 183
172
176
180
176
24
23
18
-
-
28
26
15
13
13
67
65
67
68
67
302
286
276
261
256
173
187
168
174
178
24
24
24
-
-
28
25
17
12
13
74
72
62
64
73
299
308
271
250
264		 356
367
-
48
26
63
135
134
517
612
352
353
-
48
25
62
137
142
514
605

(1) Aluminium smelting at Bayside ceased with the closure of the final potline in June 2014.

Manganese ores
Saleable production
South Africa(1)
Australia(1)
Total
Sales
South Africa (1)
Australia (1)
Total		 944
782
936
1,049
1,007
1,256
1,019
1,319
1,210
1,289
2,200
1,801
2,255
2,259
2,296
714
915
931
999
983
1,445
1,252
1,288
1,224
1,208
2,159
2,167
2,219
2,223
2,191		 2,056
1,808
2,499
2,438
4,555
4,246
1,982
1,634
2,432
2,523
4,414
4,157
Manganese alloys
Saleable production
South Africa(1) (2)
Australia(1)
Total
Sales
South Africa(1) (2)
Australia(1)
Total		 94
91
106
112
121
72
71
75
59
80
166
162
181
171
201
87
113
112
115
109
63
85
74
56
73
150
198
186
171
182		 233
180
139
123
372
303
224
175
129
117
353
292

(1) Shown on 100% basis. BHP Billiton interest in saleable production is 60%, except Hotazel Manganese Mines which is 44.4%.

(2) Production includes Medium Carbon Ferro Manganese.

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

25

PRODUCTION AND SALES REPORT

PRODUCTION AND SALES REPORT
DEC
MAR
JUN
SEP
DEC
2013
2014
2014
2014
2014
QUARTER ENDED		 YEAR TO DATE
DEC
DEC
2014
2013
Aluminium, Manganese and Nickel (continued)
(kt)
Nickel
Cerro Matoso, Colombia
Production
Sales		 12.3
9.8
10.2
10.7
10.5
12.3
10.0
10.2
10.5
10.1		 21.2
24.3
20.6
24.9
Nickel West, Australia
Saleable production
Nickel contained in concentrate
Nickel contained in finished matte
Nickel metal
Nickel production
Sales
Nickel contained in concentrate
Nickel contained in finished matte
Nickel metal
Nickel sales		 2.4
2.5
1.6
2.2
1.7
6.1
6.1
4.4
9.1
5.5
17.0
15.7
14.7
13.7
16.5
25.5
24.3
20.7
25.0
23.7
2.8
2.3
1.6
2.1
1.6
7.4
5.3
6.2
6.6
7.4
17.2
16.7
14.4
11.9
17.5
27.4
24.3
22.2
20.6
26.5		 3.9
5.8
14.6
14.9
30.2
33.2
48.7
53.9
3.7
5.5
14.0
15.2
29.4
32.5
47.1
53.2

__________________ BHP Billiton Operational Review for the half year ended 31 December 2014

26

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