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BHP Group Limited Interim / Quarterly Report 2017

Oct 18, 2016

14787_rns_2016-10-18_8161388a-fcf8-4e06-b6e2-666ea693aa0c.pdf

Interim / Quarterly Report

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Release Time IMMEDIATE Date 19 October 2016 Release Number 24/16

BHP BILLITON OPERATIONAL REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2016

  • All production and unit cost guidance remains unchanged for the 2017 financial year, however guidance for Olympic Dam is under review following a state-wide power outage in South Australia.

  • Good progress continues on the Group’s capital-efficient latent capacity options with the ramp-up of the Spence Recovery Optimisation project and additional capacity at Jimblebar during the period, and first production from the Los Colorados Extension project anticipated late in the 2017 financial year.

  • All four major projects under development are tracking to plan.

  • In Petroleum, positive drilling results were reported following the discovery of oil in multiple horizons at the Caicos exploration well in the Gulf of Mexico.

  • We continue to optimise our portfolio of high-quality assets with the announced sale of 50 per cent of our interest in the undeveloped Scarborough area gas fields and completion of the IndoMet Coal and Navajo Coal divestments. We also entered into an agreement with the New South Wales Government to cease progression of the Caroona Coal project.

Production Sep Q16 vs Sep Q15
Petroleum (MMboe) 55 (15%) Deferral of development activity in Onshore US for value.
Copper (kt) 355 (6%) Expected lower grades at Escondida and reduced volumes at
Olympic Dam.
Iron ore(1)(Mt) 58 0% Ramp-up of additional capacity at Jimblebar offset lower volumes at
Yandi in Western Australia Iron Ore.
Metallurgical coal(1)(Mt)
11
1% Increased productivity across all Queensland Coal mines more than
offset the cessation ofproduction at Crinum.
Energy coal(1)(Mt) 7 (4%) Strong performance at Cerrejón partially offset by unfavourable
weather at New South Wales EnergyCoal.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Full year production and unit cost guidance remains unchanged. Safety and productivity continue to improve with our new operating model helping us identify and replicate best practice more quickly.

“We have seen early signs of markets rebalancing. Fundamentals suggest both oil and gas markets will improve over the next 12 to 18 months. Iron ore and metallurgical coal prices have been stronger than expected, although we continue to expect supply to grow more quickly than demand in the near term. Together, the combination of steadier markets, continued capital discipline, improved productivity and increased volumes in copper, iron ore and metallurgical coal should further support strong free cash flow generation this financial year.”

1

Summary

Operational performance

Production for the September 2016 quarter and 2017 financial year guidance are summarised in the table below. Production guidance for the 2017 financial year remains unchanged despite lower volumes across several commodities in the September 2016 quarter as anticipated, however guidance for Olympic Dam is under review following a state-wide power outage in South Australia.

Sep Q16 Sep Q16
vs vs FY17
Production Sep Q16 Sep Q15 Jun Q16 guidance
Petroleum (MMboe) 55 (15%) (3%) 200 - 210
Onshore US (MMboe) 21 (31%) (11%) 77 - 83
Conventional (MMboe) 34 (2%) 3% 123 - 127
Copper (Mt) 355 (6%) (14%) 1.66
Escondida (kt) 218 (6%) (19%) 1,070
Other copper(i)(kt) 137 (7%) (6%) 590
Iron ore(ii)(Mt) 58 0% 4% 228 - 237
WAIO (100% basis) (Mt) 67 (1%) 3% 265 - 275
Metallurgical coal(ii)(Mt) 11 1% (9%) 44
Energy coal(ii)(Mt) 7 (4%) 9% 30

(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.

(ii) Excludes production from Samarco, New Mexico assets and Haju (IndoMet Coal).

Major development projects

At the end of the September 2016 quarter, BHP Billiton had four major projects under development in Petroleum, Copper and Potash, with a combined budget of US$6.9 billion over the life of the projects. All projects remain on time and on budget.

Corporate update

On 29 August 2016, a panel of four geotechnical specialists (Panel) published its findings into the immediate causes of the failure of the Fundão tailings dam at the iron ore operations of Samarco Mineração S.A (Samarco) in Minas Gerais, Brazil, on 5 November 2015. Vale S.A. (Vale), BHP Billiton Brasil LTDA (BHP Billiton Brasil) and Samarco jointly commissioned Cleary Gottlieb Steen & Hamilton LLP (Cleary Gottlieb) to investigate the immediate cause of the failure. To assist with the investigation, Cleary Gottlieb retained the Panel to advise on the technical aspects of the failure and to conduct testing and analysis. A full overview of the Panel’s findings, explanatory materials, detailed modeling, input data, a video and technical diagrams can be found at Fundaoinvestigation.com.

On 21 September 2016, BHP Billiton released its Economic contribution and payments to governments report which shows the Company’s total economic contribution globally in the 2016 financial year was US$26.7 billion. This includes US$3.7 billion globally in taxes, royalties and other payments to governments. The Company’s adjusted effective tax rate in the 2016 financial year was 35.8 per cent, demonstrating BHP Billiton pays its fair share of tax. When royalties are included, the rate is more than 58 per cent.

BHP Billiton Operational Review for the quarter ended 30 September 2016

2

Petroleum

Production

Production
Sep Q16 Sep Q16
vs
Sep Q16
vs
Sep Q15 Jun Q16
Crude oil, condensate and natural gas liquids (MMboe) 24.2 (21%) (8%)
Natural gas (bcf) 182 (10%) 2%
Total petroleum production (MMboe) 54.5 (15%) (3%)

Total petroleum production – Total petroleum production for the September 2016 quarter decreased by 15 per cent to 54.5 MMboe. Guidance for the 2017 financial year remains unchanged at between 200 and 210 MMboe, comprising Conventional volumes between 123 and 127 MMboe and Onshore US volumes between 77 and 83 MMboe.

Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production for the September 2016 quarter declined by 21 per cent to 24.2 MMboe.

Onshore US liquids volumes decreased by 38 per cent to 8.3 MMboe as a result of the continued reduction in activity in the Black Hawk and natural field decline in the Hawkville, which more than offset increased liquids production from the Permian.

Conventional liquids volumes decreased by eight per cent to 16.0 MMboe as an additional infill well at Mad Dog and higher production at North West Shelf partially offset natural field decline across the portfolio and planned maintenance at Atlantis.

Natural gas – Natural gas production for the September 2016 quarter declined by 10 per cent to 182 bcf.

The decline primarily reflects lower Onshore US gas volumes as a result of the decision to defer development activity for longer-term value and the successful divestment of our gas business in Pakistan on 31 December 2015. This was partially offset by increased LNG volumes at North West Shelf and higher demand at Bass Strait.

On 5 September 2016, BHP Billiton announced the sale of 50 per cent of its interest in the undeveloped Scarborough area gas fields. Under the proposed transaction, ExxonMobil will remain operator of Scarborough and operatorship of North Scarborough will transfer from BHP Billiton to Woodside. Completion of the sale is expected by the end of the 2016 calendar year.

Projects

Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
Bass Strait Longford 520 CY16 Designed to process approximately On schedule and budget. The overall
Gas Conditioning Plant 400 MMcf/d of high-CO2gas. project is 99% complete.
(Australia)
50% (non-operator)
North West Shelf 314 CY19 To maintain LNG plant throughput from On schedule and budget. The overall
Greater Western Flank-B the North West Shelf operations. project is 16% complete.
(Australia)
16.67% (non-operator)

Petroleum capital expenditure of approximately US$1.4 billion is planned in the 2017 financial year. This includes Conventional capital expenditure of US$0.8 billion which is focused on life extension projects at Bass Strait and North West Shelf. Onshore US capital expenditure is expected to be approximately US$0.6 billion with development activity tailored to market conditions.

BHP Billiton Operational Review for the quarter ended 30 September 2016

3

Onshore US development activity

Onshore US drilling and development expenditure for the September 2016 quarter was US$108 million. Our operated rig count declined from four to two during the September 2016 quarter as we continued to improve drilling efficiency and defer development activity to maximise value. As a result of the successful execution of our hedging pilot in June 2016, we elected to move forward the development of our Haynesville gas assets and mobilised one rig in October 2016.

2016.
September 2016 quarter
Liquids focused areas
Gas focused areas
(September 2015quarter)
Eagle Ford
Permian
Haynesville
Fayetteville
Total
Capital expenditure(i)
US$ billion
0.0 (0.3)
0.1 (0.1)
0.0 (0.0)
0.0 (0.0)
0.1 (0.5)
Rig allocation
At period end
1 (5)
1 (2)
0 (0)
0 (0)
2 (7)
Net wells drilled and completed(ii)
Period total
1 (44)
11 (7)
0 (4)
1 (6)
13 (61)
Net productive wells
At period end
928 (882)
116 (83)
395 (411)
1,044 (1,080)
2,483 (2,456)

(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.

(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.

Petroleum exploration

Exploration and appraisal wells drilled during the September 2016 quarter are summarised below.

Well Location Target BHP Billiton Spud date Water depth Total well Status
equity depth
LeClerc-1 Trinidad & Tobago Oil 65% 21 May 2016 1,800 m 5,771 m Hydrocarbons encountered;
Block 5 (Operator) Plugged and abandoned
LeClerc- Trinidad & Tobago Oil 100% 6 July 2016 1,800 m 6,973 m Hydrocarbons encountered;
ST1 Block 5 (Operator) Plugged and abandoned
Caicos-1 Gulf of Mexico Oil 100% 21 June 2016 1,288 m 9,198 m Hydrocarbons encountered;
GC564 (Operator) Plugged and abandoned
Burrokeet-1 Trinidad & Tobago Oil 70% 8 August 2016 1,923 m 3,337 m Suspended, awaiting plugging
Block 23a (Operator) and abandonment
Burrokeet-2 Trinidad & Tobago Oil 70% 18 August 2016 1,923 m 5,545 m(i) Drilling ahead
Block 23a (Operator)

(i) Well depth as at 30 September 2016; drilling still in progress.

During the September 2016 quarter, BHP Billiton was the apparent high bidder on 12 blocks in the Gulf of Mexico Lease Sale 248 and also signed an agreement with Statoil to acquire an interest in two blocks (GC 436 and GC 480) in the Gulf of Mexico. Regulatory approval was granted during the September 2016 quarter for the Lease Exchange Agreement with Chevron for 61 blocks and the Sale and Purchase Agreement with ConocoPhillips for 26 blocks executed during the June 2016 quarter. In Australia, the WA-475-P permit was cancelled per the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and BHP Billiton entered into a Good Standing Agreement with the Joint Authority[(2)] . In South Africa, blocks 3B/4B expired.

The Group announced positive drilling results at the Caicos exploration well in the Gulf of Mexico, with oil encountered in multiple horizons. The next step will be drilling the Wildling well in November 2016 to further appraise the area.

Petroleum exploration expenditure for the September 2016 quarter was US$231 million, of which US$55 million was expensed. A US$700 million exploration program is planned for the 2017 financial year, largely focused on drilling activities in the Gulf of Mexico and Trinidad and Tobago.

BHP Billiton Operational Review for the quarter ended 30 September 2016

4

Copper

Production

Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Copper (kt) 355 (6%) (14%)
Zinc (t) 15,367 (25%) 137%
Uranium oxide concentrate (t) 916 (22%) 5%

Copper – Total copper production for the September 2016 quarter decreased by six per cent to 355 kt. Guidance for the 2017 financial year remains unchanged at 1.66 Mt, subject to the review of Olympic Dam copper production guidance noted below.

Escondida copper production for the September 2016 quarter decreased by six per cent to 218 kt reflecting lower grade, as expected. Copper production decreased by 19 per cent from the June 2016 quarter and reflected lower grade, water availability and planned maintenance during the period. Production guidance for Escondida remains unchanged at approximately 1,070 kt, with volumes weighted to the second half of the 2017 financial year. The commissioning of the Escondida Water Supply project and the ramp-up of the Los Colorados Extension project late in the 2017 financial year, will enable full utilisation of three concentrators during the 2018 financial year.

Pampa Norte copper production for the September 2016 quarter increased by nine per cent to 62 kt supported by improved recoveries at Cerro Colorado. The ramp-up of the Spence Recovery Optimisation (SRO) project is progressing to plan and is expected to support an annualised production run rate of 200 ktpa late in the December 2016 quarter following planned maintenance being brought forward from February 2017. On 27 August 2016, processing at the Cerro Colorado Ore Handling Plant 2 was suspended following the failure of a transfer chute which is expected to take approximately two months to repair, further reducing production in the December 2016 quarter. Despite this, Pampa Norte copper production guidance for the 2017 financial year remains unchanged and is expected to be higher than the prior year supported by the completion of the SRO project and a strong second half.

Olympic Dam copper production for the September 2016 quarter decreased by 26 per cent to 41 kt, following planned maintenance and a state-wide power outage which commenced on 28 September 2016. The power outage and resultant shutdown at Olympic Dam demonstrates the necessity for secure and stable electricity supply in South Australia and across Australia. Power has safely been restored at Olympic Dam and operations are in the process of recommencing and expected to be fully ramped-up in the December 2016 quarter. Guidance for the 2017 financial year of approximately 200 kt is under review following the power outage.

Antamina copper production for the September 2016 quarter was broadly flat at 34 kt. Guidance for the 2017 financial year remains unchanged at 130 kt, as mining progresses through a zinc rich ore zone consistent with the mine plan. Zinc production is expected to increase from 55 kt to approximately 90 kt in the 2017 financial year.

Projects

Projects
Capital Initial
Project and expenditure production
ownership (US$m) target date Capacity Progress
Escondida Water Supply 3,430 CY17 New desalination facility to ensure On schedule and budget. The overall
(Chile) continued water supply to Escondida. project is 96% complete.
57.5%

BHP Billiton Operational Review for the quarter ended 30 September 2016

5

Iron Ore

Production

Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Iron ore(i)(kt) 57,587 0% 4%

(i) Represents Western Australia Iron Ore (WAIO). Excludes production from Samarco.

Iron ore – Total iron ore production for the September 2016 quarter was unchanged at 58 Mt on a BHP Billiton share basis, or 67 Mt on a 100 per cent basis. Guidance for the 2017 financial year remains unchanged at between 228 and 237 Mt on a BHP Billiton share basis, or between 265 and 275 Mt on a 100 per cent basis, with volumes weighted to the last three quarters of the year.

WAIO production for the September 2016 quarter was flat as the ramp-up of additional capacity at Jimblebar offset lower volumes at Yandi. The 24 month rail renewal and maintenance program, which will support the integrated supply chain’s long-term reliability, is progressing on schedule. Completion of rail renewal works near Newman underpinned a four per cent increase in volumes from the June 2016 quarter.

The installation of the new primary crusher and additional conveying capacity at Jimblebar is expected to be completed in the December 2016 quarter, with all associated spend included within WAIO’s long-term average annual sustaining capital expenditure of approximately US$4 per tonne.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. During the September 2016 quarter 12 kt of pellet feed was sold, with additional sales expected in the December 2016 quarter.

BHP Billiton Operational Review for the quarter ended 30 September 2016

6

Coal

Production

Production
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Metallurgical coal(i)(kt) 10,529 1% (9%)
Energy coal(ii)(kt) 6,880 (4%) 9%

(i) Represents Queensland Coal. Excludes production from Haju following the IndoMet Coal divestment (2017 financial year: 102 kt).

(ii) Excludes production from New Mexico assets following completion of the divestments (2017 financial year: 451 kt).

Metallurgical coal – Metallurgical coal production for the September 2016 quarter increased by one per cent to 11 Mt. Guidance for the 2017 financial year remains unchanged at 44 Mt.

Queensland Coal production was broadly unchanged for the September 2016 quarter. Increased wash-plant and truck utilisation across all mines offset the completion of longwall mining at Crinum in the December 2015 quarter, adverse weather conditions, the planned longwall move at Broadmeadow and wash-plant shutdown at Saraji, and lower yield at South Walker Creek.

On 14 October 2016, the sale of the Group’s 75 per cent interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro) was completed.

Energy coal – Energy coal production for the September 2016 quarter decreased by four per cent to 7 Mt. Guidance for the 2017 financial year remains unchanged at 30 Mt.

New South Wales Energy Coal production declined by 15 per cent due to the impact of heavy rainfall and rescheduling of the mine plan based on individual pit economics. This partially offset a 16 per cent increase in volumes at Cerrejón compared to the September 2015 quarter which was constrained by drought conditions.

Subsequent to the completion of the divestment of Navajo Coal to Navajo Transitional Energy Company on 29 July 2016, no further production will be reported by BHP Billiton. BHP Billiton will continue to manage Navajo Coal in accordance with the Mine Management Agreement until 31 December 2016.

Following the Group’s agreement with the New South Wales Government in August 2016 to cancel the exploration licence and cease progression of the Caroona Coal project, proceeds of A$220 million have been received.

BHP Billiton Operational Review for the quarter ended 30 September 2016

7

Other

Nickel production

Nickelproduction
Sep Q16 Sep Q16
vs vs
Sep Q16 Sep Q15 Jun Q16
Nickel (kt) 18.8 (15%) (20%)

Nickel – Nickel West production for the September 2016 quarter decreased to 19 kt of nickel as in-process nickel matte stocks were replenished within the integrated production chain. Nickel production is still expected to increase by approximately 10 per cent in the 2017 financial year, with higher grade ore at Mt Keith and a ramp-up in mining at Leinster supporting higher utilisation rates at the Kalgoorlie smelter and Kwinana refinery.

Potash project

Potashproject
Project and Investment
ownership (US$m) Scope Progress
Jansen Potash 2,600 Investment to finish the excavation and lining of the The project is 63% complete and within the
(Canada) production and service shafts, and to continue the approved budget. Shaft excavation is
100% installation of essential surface infrastructure and progressing.
utilities.

Minerals exploration

Minerals exploration expenditure for the September 2016 quarter was US$34 million, of which US$34 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru, Canada, South-West United States and the Stuart Shelf in Australia.

Variance analysis relates to the relative performance of BHP Billiton and/or its operations during the September 2016 quarter compared with the September 2015 quarter, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis.

The following footnotes apply to this Operational Review:

  • (1) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal assets.

  • (2) In lieu of the drilling commitment for WA-475-P, consistent with Good Standing Agreement guidelines, we have committed to contributing A$10.47 million towards either a regional study, re-released acreage or sole-bid prime acreage.

The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).

BHP Billiton Operational Review for the quarter ended 30 September 2016

8

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

Media Relations

Australia and Asia

Matthew Martyn-Jones Tel: +61 3 9609 2360 Mobile +61 419 418 394 Email: [email protected]

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

Fiona Hadley Tel: +61 3 9609 2211 Mobile +61 427 777 908 Email: [email protected]

Amanda Saunders Tel: +61 3 9609 3985 Mobile +61 417 487 973 Email: [email protected]

United Kingdom and South Africa

Ruban Yogarajah Tel: +44 207 802 4033 Mobile +44 7827 082 022 Email: [email protected]

North America

Investor Relations

Australia and Asia

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

Rob Clifford Tel: +44 20 7802 4131 Mobile: +44 7788 308 844 Email: [email protected]

Elisa Morniroli Tel: +44 20 7802 7611 Mobile: +44 7825 926 646 Email: [email protected]

Americas

James Wear

Tel: +1 713 993 3737 Mobile: +1 347 882 3011 Email: [email protected]

Bronwyn Wilkinson Mobile: +1 604 340 8753 Email: [email protected]

BHP Billiton Limited ABN 49 004 028 077 Registered in Australia Registered Office: Level 18, 171 Collins Street Melbourne Victoria 3000 Australia Tel +61 1300 55 4757 Fax +61 3 9609 3015

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

Members of the BHP Billiton Group which is headquartered in Australia

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BHP Billiton Operational Review for the quarter ended 30 September 2016

9

PRODUCTION SUMMARY

BHP Billiton
SEP
DEC
MAR
JUN
SEP
interest
2015
2015
2016
2016
2016
~~Sep-15~~
~~Dec-15~~
~~Mar-16~~
~~Jun-16~~
~~Sep-16~~
QUARTER ENDED
BHP Billiton
SEP
DEC
MAR
JUN
SEP
interest
2015
2015
2016
2016
2016
~~Sep-15~~
~~Dec-15~~
~~Mar-16~~
~~Jun-16~~
~~Sep-16~~
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Petroleum (1)
Petroleum
Crude oil, condensate and NGL (Mboe)
Onshore US
Conventional
Total
Natural gas (bcf)
Onshore US
Conventional
Total
Total petroleum production (MMboe)
13,453
12,805
12,454
9,469
8,288
17,259
16,976
16,727
16,896
15,959
30,712
29,781
29,181
26,365
24,247
98.2
94.4
89.9
82.0
73.9
104.6
88.4
91.5
95.7
107.8
202.8
182.8
181.4
177.7
181.7
64.5
60.2
59.4
56.0
54.5
8,288
13,453
15,959
17,259
24,247
30,712
73.9
98.2
107.8
104.6
181.7
202.8
54.5
64.5
Copper (2)
Copper
Payable metal in concentrate (kt)
Escondida(3)
57.5%
Antamina
33.8%
Total
Cathode (kt)
Escondida(3)
57.5%
Pampa Norte(4)
100%
Olympic Dam
100%
Total
Total copper
Lead
Payable metal in concentrate (t)
Antamina
33.8%
Total
Zinc
Payable metal in concentrate (t)
Antamina
33.8%
Total
Gold
Payable metal in concentrate (troy oz)
Escondida(3)
57.5%
Olympic Dam (refined gold)
100%
Total
Silver
Payable metal in concentrate (troy koz)
Escondida(3)
57.5%
Antamina
33.8%
Olympic Dam (refined silver)
100%
Total
Uranium
Payable metal in concentrate (t)
Olympic Dam
100%
Total
Molybdenum
Payable metal in concentrate (t)
Antamina
33.8%
Total
159.6
131.7
174.9
182.7
147.0
35.1
37.2
35.4
38.7
34.1
194.7
168.9
210.3
221.4
181.1
70.9
89.3
84.8
85.3
70.5
56.8
69.0
59.8
65.8
62.1
54.9
57.4
49.8
40.7
40.9
182.6
215.7
194.4
191.8
173.5
377.3
384.6
404.7
413.2
354.6
857
1,024
1,193
645
1,146
857
1,024
1,193
645
1,146
20,597
16,454
11,913
6,474
15,367
20,597
16,454
11,913
6,474
15,367
23,805
17,889
31,408
35,894
27,561
29,349
39,299
29,028
20,010
24,366
53,154
57,188
60,436
55,904
51,927
1,181
962
1,544
1,874
1,229
1,766
1,636
1,751
1,558
1,345
246
265
174
232
163
3,193
2,863
3,469
3,664
2,736
1,174
1,352
961
876
916
1,174
1,352
961
876
916
92
232
227
562
561
92
232
227
562
561
147.0
159.6
34.1
35.1
181.1
194.7
70.5
70.9
62.1
56.8
40.9
54.9
173.5
182.6
354.6
377.3
1,146
857
1,146
857
15,367
20,597
15,367
20,597
27,561
23,805
24,366
29,349
51,927
53,154
1,229
1,181
1,345
1,766
163
246
2,736
3,193
916
1,174
916
1,174
561
92
561
92

BHP Billiton Operational Review for the quarter ended 30 September 2016

10

PRODUCTION SUMMARY

PRODUCTION SUMMARY PRODUCTION SUMMARY
BHP Billiton
SEP
DEC
MAR
JUN
SEP
interest
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Iron Ore
Iron Ore
Production (kt)(5)
Newman
85%
Area C Joint Venture
85%
Yandi Joint Venture
85%
Jimblebar(6)
85%
Wheelarra
85%
Samarco
50%
Total
18,006
17,003
15,817
15,115
18,008
12,163
11,723
11,002
11,911
12,384
16,886
15,960
16,204
18,325
15,729
3,262
4,852
5,472
5,304
6,057
7,259
5,757
4,562
4,971
5,409
3,739
1,665
-
-
-
61,315
56,960
53,057
55,626
57,587
18,008
18,006
12,384
12,163
15,729
16,886
6,057
3,262
5,409
7,259
-
3,739
57,587
61,315
Coal
Metallurgical coal
Production (kt) (7)
BMA
50%
BHP Billiton Mitsui Coal(8)
80%
Haju (9)
75%
Total
Energy coal
Production (kt)
USA
100%
Australia
100%
Colombia
33.3%
Total
8,087
8,207
7,894
9,225
8,384
2,347
2,191
2,015
2,345
2,145
15
87
167
260
102
10,449
10,485
10,076
11,830
10,631
2,676
2,632
1,112
632
451
4,644
4,277
4,189
3,991
3,952
2,527
2,628
2,610
2,329
2,928
9,847
9,537
7,911
6,952
7,331
8,384
8,087
2,145
2,347
102
15
10,631
10,449
451
2,676
3,952
4,644
2,928
2,527
7,331
9,847
Other
Nickel
Saleable production (kt)
Nickel West
100%
Total
22.1
15.2
20.0
23.4
18.8
22.1
15.2
20.0
23.4
18.8
18.8
22.1
18.8
22.1

(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.

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

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

(4) Includes Cerro Colorado and Spence.

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

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

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

(8) Shown on 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%.

BHP Billiton Operational Review for the quarter ended 30 September 2016

11

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Petroleum (1)
Bass Strait
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
North West Shelf
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Pyrenees
Crude oil and condensate
(Mboe)
Total petroleum products
(MMboe)
Other Australia(2)
Crude oil and condensate
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Atlantis(3)
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Mad Dog (3)
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Shenzi (3)
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Eagle Ford (4)
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Permian (4)
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Haynesville(4)
Crude oil and condensate
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Fayetteville (4)
Natural gas
(bcf)
Total petroleum products
(MMboe)
1,877
1,390
1,813
1,745
1,922
2,091
1,307
1,455
1,831
2,102
38.7
23.9
30.3
38.1
41.9
10.4
6.7
8.3
9.9
11.0
1,362
1,423
1,124
925
1,486
227
235
259
241
292
33.9
34.9
33.8
27.6
38.7
7.2
7.5
7.0
5.8
8.2
2,096
2,331
2,093
2,097
1,676
2.1
2.3
2.1
2.1
1.7
13
9
8
9
10
16.6
14.4
16.2
17.2
17.5
2.8
2.4
2.7
2.9
2.9
3,637
4,257
4,056
4,058
3,054
231
278
270
269
208
1.6
2.0
1.9
1.9
1.5
4.1
4.9
4.6
4.6
3.5
588
648
880
1,134
950
23
41
41
52
36
0.1
0.1
0.1
0.2
0.1
0.6
0.7
0.9
1.2
1.0
3,277
3,185
3,094
2,813
2,632
236
269
206
192
94
0.7
0.8
0.6
0.6
0.5
3.6
3.6
3.4
3.1
2.8
7,700
7,156
7,018
4,949
3,871
3,799
3,806
3,649
2,717
2,268
25.8
25.4
25.1
19.5
16.5
15.8
15.2
14.9
10.9
8.9
1,481
1,354
1,499
1,410
1,415
473
488
288
393
734
3.9
3.4
2.4
4.9
4.4
2.6
2.4
2.2
2.6
2.9
-
1
-
-
-
36.4
34.7
34.4
31.1
28.2
6.1
5.8
5.7
5.2
4.7
32.1
30.9
28.0
26.5
24.8
5.4
5.2
4.7
4.4
4.1
1,922
1,877
2,102
2,091
41.9
38.7
11.0
10.4
1,486
1,362
292
227
38.7
33.9
8.2
7.2
1,676
2,096
1.7
2.1
10
13
17.5
16.6
2.9
2.8
3,054
3,637
208
231
1.5
1.6
3.5
4.1
950
588
36
23
0.1
0.1
1.0
0.6
2,632
3,277
94
236
0.5
0.7
2.8
3.6
3,871
7,700
2,268
3,799
16.5
25.8
8.9
15.8
1,415
1,481
734
473
4.4
3.9
2.9
2.6
-
-
28.2
36.4
4.7
6.1
24.8
32.1
4.1
5.4

BHP Billiton Operational Review for the quarter ended 30 September 2016

12

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Petroleum (1)(continued)
Trinidad/Tobago
Crude oil and condensate
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Other Americas (3) (5)
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
UK
Crude oil and condensate
(Mboe)
NGL
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
Algeria
Crude oil and condensate
(Mboe)
Total petroleum products
(MMboe)
Pakistan(6)
Crude oil and condensate
(Mboe)
Natural gas
(bcf)
Total petroleum products
(MMboe)
242
185
120
162
140
7.6
7.4
7.4
8.6
6.4
1.5
1.4
1.4
1.6
1.2
361
360
334
308
275
12
16
12
10
1
0.2
0.2
0.2
0.2
0.1
0.4
0.4
0.4
0.4
0.3
59
74
65
76
69
(4)
27
10
10
22
1.0
1.0
1.0
1.3
1.1
0.2
0.3
0.2
0.3
0.3
916
922
887
964
990
0.9
0.9
0.9
1.0
1.0
23
19
-
-
-
4.2
3.7
-
-
-
0.7
0.6
-
-
-
140
242
6.4
7.6
1.2
1.5
275
361
1
12
0.1
0.2
0.3
0.4
69
59
22
(4)
1.1
1.0
0.3
0.2
990
916
1.0
0.9
-
23
-
4.2
-
0.7
Total petroleum products
Crude oil and condensate
Onshore US
(Mboe)
Conventional(7)
(Mboe)
Total
(Mboe)
NGL
Onshore US
(Mboe)
Conventional
(Mboe)
Total
(Mboe)
Natural gas
Onshore US
(bcf)
Conventional
(bcf)
Total
(bcf)
9,181
8,511
8,517
6,359
5,286
14,443
14,803
14,474
14,291
13,204
23,624
23,314
22,991
20,650
18,490
4,272
4,294
3,937
3,110
3,002
2,816
2,173
2,253
2,605
2,755
7,088
6,467
6,190
5,715
5,757
98.2
94.4
89.9
82.0
73.9
104.6
88.4
91.5
95.7
107.8
202.8
182.8
181.4
177.7
181.7
5,286
9,181
13,204
14,443
18,490
23,624
3,002
4,272
2,755
2,816
5,757
7,088
73.9
98.2
107.8
104.6
181.7
202.8

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.

(2) Other Australia includes Minerva and Macedon.

(3) Gulf of Mexico volumes are net of royalties.

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

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

(6) BHP Billiton completed the sale of the Pakistan gas business on 31 December 2015.

(7) September 2015 includes (8) Mboe for the finalisation adjustment following the cessation of production at Stybarrow on 26 June 2015.

BHP Billiton Operational Review for the quarter ended 30 September 2016

13

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Copper
Escondida, Chile (1)
Material mined
(kt)
110,067
109,200
105,970
108,037
106,504
Sulphide ore milled
(kt)
22,820
18,076
21,188
22,905
20,787
Average copper grade
(%)
1.00%
0.99%
0.99%
0.94%
0.87%
Production ex mill
(kt)
169.7
142.8
175.8
181.7
153.2
Production
Payable copper
(kt)
159.6
131.7
174.9
182.7
147.0
Copper cathode (EW)
(kt)
70.9
89.3
84.8
85.3
70.5
Payable gold concentrate
(troy oz)
23,805
17,889
31,408
35,894
27,561
Payable silver concentrate
(troy koz)
1,181
962
1,544
1,874
1,229
Sales
Payable copper
(kt)
157.6
123.8
181.7
186.6
134.9
Copper cathode (EW)
(kt)
63.8
101.1
80.3
83.8
65.6
Payable gold concentrate
(troy oz)
23,805
17,889
31,408
35,894
27,561
Payable silver concentrate
(troy koz)
1,181
962
1,544
1,874
1,229
(1) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.
Metals production is payable metal unless otherwise stated.
106,504
110,067
20,787
22,820
0.87%
1.00%
153.2
169.7
147.0
159.6
70.5
70.9
27,561
23,805
1,229
1,181
134.9
157.6
65.6
63.8
27,561
23,805
1,229
1,181
Pampa Norte, Chile
Cerro Colorado
Material mined
(kt)
13,870
14,930
12,415
12,453
13,011
Ore milled
(kt)
4,703
4,856
4,012
4,375
3,241
Average copper grade
(%)
0.64%
0.82%
0.84%
0.80%
0.68%
Production
Copper cathode (EW)
(kt)
13.7
18.8
20.0
24.8
17.1
Sales
Copper cathode (EW)
(kt)
13.0
19.7
18.6
25.2
16.4
Spence
Material mined
(kt)
22,922
21,593
22,549
21,124
23,638
Ore milled
(kt)
4,919
5,146
4,355
4,836
4,713
Average copper grade
(%)
1.41%
1.30%
1.39%
1.22%
1.17%
Production
Copper cathode (EW)
(kt)
43.1
50.2
39.8
41.0
45.0
Sales
Copper cathode (EW)
(kt)
38.2
56.1
38.4
40.9
41.2
13,011
13,870
3,241
4,703
0.68%
0.64%
17.1
13.7
16.4
13.0
23,638
22,922
4,713
4,919
1.17%
1.41%
45.0
43.1
41.2
38.2

BHP Billiton Operational Review for the quarter ended 30 September 2016

14

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%)
(kt)
56,793
52,130
55,183
62,793
65,111
Sulphide ore milled (100%)
(kt)
14,300
14,184
12,414
14,711
13,522
Average head grades
- Copper
(%)
0.88%
0.92%
1.02%
0.90%
0.84%
- Zinc
(%)
0.79%
0.55%
0.54%
0.33%
0.60%
Production
Payable copper
(kt)
35.1
37.2
35.4
38.7
34.1
Payable zinc
(t)
20,597
16,454
11,913
6,474
15,367
Payable silver
(troy koz)
1,766
1,636
1,751
1,558
1,345
Payable lead
(t)
857
1,024
1,193
645
1,146
Payable molybdenum
(t)
92
232
227
562
561
Sales
Payable copper
(kt)
30.8
42.9
29.3
42.4
32.8
Payable zinc
(t)
18,747
20,423
12,097
3,035
16,043
Payable silver
(troy koz)
1,522
2,048
1,331
2,055
1,277
Payable lead
(t)
266
1,056
1,073
1,108
767
Payable molybdenum
(t)
156
138
178
331
648
65,111
56,793
13,522
14,300
0.84%
0.88%
0.60%
0.79%
34.1
35.1
15,367
20,597
1,345
1,766
1,146
857
561
92
32.8
30.8
16,043
18,747
1,277
1,522
767
266
648
156
Olympic Dam, Australia
Material mined(1)
(kt)
2,357
2,372
2,210
1,993
2,204
Ore milled
(kt)
2,727
2,767
2,174
2,031
2,279
Average copper grade
(%)
1.64%
2.22%
2.01%
2.20%
1.97%
Average uranium grade
(kg/t)
0.60
0.62
0.61
0.59
0.60
Production
Copper cathode (ER and EW)
(kt)
54.9
57.4
49.8
40.7
40.9
Uranium oxide concentrate
(t)
1,174
1,352
961
876
916
Refined gold
(troy oz)
29,349
39,299
29,028
20,010
24,366
Refined silver
(troy koz)
246
265
174
232
163
Sales
Copper cathode (ER and EW)
(kt)
52.5
57.3
49.4
43.9
37.5
Uranium oxide concentrate
(t)
677
1,013
1,261
778
1,085
Refined gold
(troy oz)
25,598
39,168
32,052
22,134
21,901
Refined silver
(troy koz)
213
265
198
201
184
2,204
2,357
2,279
2,727
1.97%
1.64%
0.60
0.60
40.9
54.9
916
1,174
24,366
29,349
163
246
37.5
52.5
1,085
677
21,901
25,598
184
213

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

BHP Billiton Operational Review for the quarter ended 30 September 2016

15

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015

Iron Ore

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

Pilbara, Australia
Production
Newman
(kt)
Area C Joint Venture
(kt)
Yandi Joint Venture
(kt)
Jimblebar(1)
(kt)
Wheelarra
(kt)
Total production
(kt)
Total production (100%)
(kt)
Sales
Lump
(kt)
Fines
(kt)
Total
(kt)
Total sales (100%)
(kt)
18,006
17,003
15,817
15,115
18,008
12,163
11,723
11,002
11,911
12,384
16,886
15,960
16,204
18,325
15,729
3,262
4,852
5,472
5,304
6,057
7,259
5,757
4,562
4,971
5,409
57,576
55,295
53,057
55,626
57,587
67,161
64,197
61,454
64,508
66,681
14,003
13,886
13,380
13,054
14,156
43,587
40,917
40,078
42,673
42,278
57,590
54,803
53,458
55,727
56,434
67,177
63,625
61,927
64,617
65,368
18,008
18,006
12,384
12,163
15,729
16,886
6,057
3,262
5,409
7,259
57,587
57,576
66,681
67,161
14,156
14,003
42,278
43,587
56,434
57,590
65,368
67,177

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

Samarco, Brazil (1)
Production (kt) 3,739 1,665 - - - - 3,739
Sales (kt) 3,531 2,425 224 94 12 12 3,531

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

BHP Billiton Operational Review for the quarter ended 30 September 2016

16

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Coal
Queensland Coal
Production (1)
BMA
Blackwater
(kt)
1,803
1,861
1,756
2,206
1,981
Goonyella
(kt)
1,868
1,941
2,478
2,709
2,123
Peak Downs
(kt)
1,164
1,323
1,159
1,385
1,520
Saraji
(kt)
1,037
1,000
1,046
1,123
1,238
Gregory Joint Venture (2)
(kt)
707
609
13
-
-
Daunia
(kt)
698
616
626
684
646
Caval Ridge
(kt)
810
857
816
1,118
876
Total BMA
(kt)
8,087
8,207
7,894
9,225
8,384
BHP Billiton Mitsui Coal
(3)
South Walker Creek
(kt)
1,511
1,275
1,268
1,382
1,341
Poitrel
(kt)
836
916
747
963
804
Total BHP Billiton Mitsui Coal
(kt)
2,347
2,191
2,015
2,345
2,145
Total Queensland Coal
(kt)
10,434
10,398
9,909
11,570
10,529
Sales
Coking coal
(kt)
7,015
7,642
7,348
8,059
7,240
Weak coking coal
(kt)
3,246
2,695
2,681
3,196
2,799
Thermal coal
(kt)
86
290
241
310
206
Total
(kt)
10,347
10,627
10,270
11,565
10,245
Coal production is reported on the basis of saleable product.
1,981
1,803
2,123
1,868
1,520
1,164
1,238
1,037
-
707
646
698
876
810
8,384
8,087
1,341
1,511
804
836
2,145
2,347
10,529
10,434
7,240
7,015
2,799
3,246
206
86
10,245
10,347

(1) Production figures include some thermal coal.

(2) Longwall mining at Crinum completed during the December 2015 quarter.

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

Haju, Indonesia (1)
Production
(kt)
15
87
167
260
102
102
15
Sales - export
(kt)
-
-
148
239
117
117
-
(1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016.
Haju, Indonesia (1)
Production
(kt)
15
87
167
260
102
102
15
Sales - export
(kt)
-
-
148
239
117
117
-
(1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016.
Haju, Indonesia (1)
Production
(kt)
15
87
167
260
102
102
15
Sales - export
(kt)
-
-
148
239
117
117
-
(1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016.
New Mexico, USA
Production
Navajo Coal(1)
(kt)
San Juan Coal (2)
(kt)
Total
(kt)
Sales thermal coal - local utility
1,270
1,403
694
632
451
1,406
1,229
418
-
-
2,676
2,632
1,112
632
451
2,671
2,661
1,106
613
105
451
1,270
-
1,406
451
2,676
105
2,671

(1) Subsequent to the completion of the divestment of Navajo Mine on 29 July 2016, no further production will be reported by BHP Billiton. BHP Billiton will continue to manage Navajo Coal in accordance with the Mine Management Agreement until 31 December 2016. (2) BHP Billiton completed the sale of San Juan Mine on 31 January 2016.

NSW Energy Coal, Australia
Production
(kt)
Sales
Export thermal coal
(kt)
Inland thermal coal
(kt)
Total
(kt)
4,644
4,277
4,189
3,991
3,952
4,130
5,081
3,410
3,993
3,640
253
229
234
440
331
4,383
5,310
3,644
4,433
3,971
3,952
4,644
3,640
4,130
331
253
3,971
4,383
Cerrejón, Colombia
Production
(kt)
Sales thermal coal - export
(kt)
2,527
2,628
2,610
2,329
2,928
2,853
2,565
2,339
2,844
2,905
2,928
2,527
2,905
2,853

BHP Billiton Operational Review for the quarter ended 30 September 2016

17

PRODUCTION AND SALES REPORT

SEP
DEC
MAR
JUN
SEP
2015
2015
2016
2016
2016
QUARTER ENDED
YEAR TO DATE
SEP
SEP
2016
2015
Other
Nickel West, Australia
Production
Nickel contained in concentrate
(kt)
0.7
0.2
0.3
0.3
0.3
Nickel contained in finished matte
(kt)
5.0
2.6
2.8
5.8
1.8
Nickel metal
(kt)
16.4
12.4
16.9
17.3
16.7
Total nickel production
(kt)
22.1
15.2
20.0
23.4
18.8
Sales
Nickel contained in concentrate
(kt)
0.7
0.2
0.3
0.3
0.3
Nickel contained in finished matte
(kt)
4.2
3.7
2.7
5.9
1.8
Nickel metal
(kt)
15.6
12.1
17.8
17.4
16.5
Total nickel sales
(kt)
20.5
16.0
20.8
23.6
18.6
Nickel production is reported on the basis of saleable product
0.3
0.7
1.8
5.0
16.7
16.4
18.8
22.1
0.3
0.7
1.8
4.2
16.5
15.6
18.6
20.5

BHP Billiton Operational Review for the quarter ended 30 September 2016

18