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BHP Group Limited — Interim / Quarterly Report 2017
Jan 24, 2017
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Interim / Quarterly Report
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Release Time IMMEDIATE Date 25 January 2017 Release Number 2/17
BHP BILLITON OPERATIONAL REVIEW FOR THE HALF YEAR ENDED 31 DECEMBER 2016
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Record production for the half year was achieved at Western Australia Iron Ore (WAIO).
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Full year production guidance maintained for Petroleum, Iron Ore and Coal.
-
Production guidance for Copper reduced to approximately 1.62 Mt, two per cent below prior guidance, reflecting lower volumes now expected at Olympic Dam.
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In Petroleum, following the successful bid for Trion in Mexico and positive drilling results at LeClerc and Caicos, an US$820 million exploration program is now planned for the current financial year.
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All major projects under development are tracking to plan. The Bass Strait Longford Gas Conditioning Plant project achieved initial gas sales in the December 2016 quarter. Mechanical completion was achieved at the Escondida Water Supply project with first water expected in the March 2017 quarter.
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Underlying attributable profit[(1)] in the December 2016 half year is expected to include gains related to asset divestments in a range of approximately US$150 million to US$200 million (details on page 2).
| Production | Dec H16 | vs Dec H15 |
|
|---|---|---|---|
| Petroleum (MMboe) | 106 | (15%) |
Deferral of development activity in Onshore US for value and |
| natural field decline in Conventional assets. | |||
| Copper (kt) | 712 | (7%) |
Reduced volumes at Olympic Dam, maintenance at Pampa Norte |
| and lower coppergrades as expected at Antamina. | |||
| Iron ore(2)(Mt) | 118 | 4% |
Record WAIO volumes for the half year due to the continued ramp- |
| upof additional capacityat Jimblebar. | |||
| Metallurgical coal(2)(Mt) | 21 | 1% |
Strong performance at four Queensland Coal mines more than |
| offset the cessation ofproduction at Crinum. | |||
| Energy coal(2)(Mt) | 14 | (4%) |
Lower production at NSWEC partially offset by strong performance |
| at Cerrejón. |
BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “We have performed well during a period of higher prices, with record iron ore volumes achieved at WAIO. Our simpler organisational structure has freed our assets to focus on what matters most and to deliver safer and more productive operations. Our consistent delivery of operating and capital productivity, and strict adherence to our capital allocation framework have positioned us to maximise shareholder value.
“In Petroleum, we will accelerate our counter-cyclical oil exploration efforts this year. Our successful Trion bid leaves us in a leading position to develop the newly opened Mexican acreage in the Gulf of Mexico, where we can leverage our core expertise. We are encouraged by recent positive drilling results at the LeClerc well in Trinidad and Tobago and the Caicos well in the Gulf of Mexico. After the first successful rig, our Onshore US gas hedging program will also be expanded to secure attractive returns.”
1
Summary
Operational performance
Production for the December 2016 half year and quarter and guidance for the 2017 financial year are summarised in the table below.
| Dec H16 | Dec Q16 | Dec Q16 | Previous | Current | |||
|---|---|---|---|---|---|---|---|
| vs | vs | vs | FY17 | FY17 | |||
| Production | Dec H16 | Dec Q16 | Dec H15 | Dec Q15 | Sep Q16 | guidance | guidance |
| Petroleum (MMboe) | 105.9 | 51.4 | (15%) | (15%) | (6%) | 200 - 210 | 200 - 210 |
| Onshore US (MMboe) | 40.0 | 19.4 | (31%) | (32%) | (6%) | 77 - 83 | 77 - 83 |
| Conventional (MMboe) | 65.9 | 32.0 | (1%) | 1% | (6%) | 123 - 127 | 123 - 127 |
| Copper (kt) | 712 | 357 | (7%) | (7%) | 1% | 1,660 | 1,620 |
| Escondida (kt) | 452 | 234 | 0% | 6% | 8% | 1,070 | 1,070 |
| Other copper(i)(kt) | 260 | 123 | (16%) | (25%) | (10%) | 590 | 550 |
| Iron ore(ii)(Mt) | 118 | 60 | 4% | 9% | 4% | 228 - 237 | 228 - 237 |
| WAIO (100% basis) (Mt) | 136 | 70 | 4% | 9% | 4% | 265 - 275 | 265 - 275 |
| Metallurgical coal(ii)(Mt) | 21 | 11 | 1% | 2% | 1% | 44 | 44 |
| Energy coal(ii)(Mt) | 14 | 7 | (4%) | (4%) | (3%) | 30 | 30 |
(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Excludes production from Samarco, New Mexico Coal and Haju (IndoMet Coal).
Major development projects
During the December 2016 quarter, the Bass Strait Longford Gas Conditioning Plant project achieved initial gas sales, under budget, and production is ramping up to full rate. In December 2016, mechanical completion was achieved at the Escondida Water Supply project with first water expected to be delivered in the March 2017 quarter, on schedule and budget. These two projects will not be reported in future Operational Reviews.
BHP Billiton has two major projects under development in Petroleum and Potash, with a combined budget of US$2.9 billion over the life of the projects. Both projects remain on time and on budget.
Corporate update
BHP Billiton expects Underlying attributable profit[(1)] in the December 2016 half year to include gains related to asset divestments in a range of approximately US$150 million to US$200 million (Underlying EBITDA[(1)] impact of US$175 million to US$225 million).
In addition, the Group expects to record an exceptional item of US$164 million (US$115 million post-tax) related to the cancellation of the Caroona exploration licence and subsequent reimbursement received during the December 2016 half year.
On 20 December 2016, Samarco, Vale and BHP Billiton Brasil agreed a non-binding term sheet outlining the general terms and conditions for the use of Vale’s Timbopeba pit by Samarco to deposit its tailings, should Samarco restart. A definitive agreement remains subject to a successful commercial negotiation, due diligence and relevant government approvals. These processes are likely to occur during the 2017 calendar year.
On 18 January 2017, Samarco, Vale and BHP Billiton Brasil have also entered into a preliminary agreement with the Federal Prosecutors’ Office in Brazil in relation to the Fundão tailings dam failure on 5 November 2015[(3)] (Preliminary Agreement). The Preliminary Agreement outlines the process and timeline for negotiation of a settlement of the BRL 155 billion (approximately US$47.5 billion) Civil Claim relating to the dam failure.
For the December 2016 half year, we are not yet in a position to provide an update to the ongoing potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. Any financial impacts will continue to be classified as an exceptional item.
The above guidance will be updated should material information or events arise as the Group finalises its financial statements.
BHP Billiton Operational Review for the half year ended 31 December 2016
2
Marketing update
The average realised prices achieved for our major commodities are summarised in the table below. The majority of iron ore shipments were linked to the index price for the month of shipment, with price differentials predominantly reflecting product quality and market fundamentals. The majority of metallurgical coal and energy coal exports were linked to the index price for the month of shipment or sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.
| Dec H16 | Dec H16 | Dec H16 | ||||||
|---|---|---|---|---|---|---|---|---|
| vs | vs | vs | ||||||
| Average realised prices(i) | Dec H16 | Dec H15 | Jun H16 | FY16 | Dec H15 | Jun H16 | FY16 | |
| Oil (crude and condensate) (US$/bbl) | 45 | 42 | 37 | 39 | 7% | 22% | 15% | |
| Natural gas (US$/Mscf)(ii) | 3.21 | 2.91 | 2.74 | 2.83 | 10% | 17% | 13% | |
| US natural gas (US$/Mscf) | 2.79 | 2.35 | 1.96 | 2.16 | 19% | 42% | 29% | |
| LNG (US$/Mscf) | 6.35 | 8.24 | 7.12 | 7.71 | (23%) | (11%) | (18%) | |
| Copper (US$/lb) | 2.41 | 2.12 | 2.16 | 2.14 | 14% | 12% | 13% | |
| Iron ore (US$/wmt, FOB) | 55 | 43 | 44 | 44 | 28% | 25% | 25% | |
| Hard coking coal (US$/t) | 179 | 82 | 83 | 83 | 118% | 116% | 116% | |
| Weak coking coal (US$/t) | 122 | 67 | 70 | 69 | 82% | 74% | 77% | |
| Thermal coal (US$/t)(iii) | 74 | 49 | 46 | 48 | 51% | 61% | 54% | |
| Nickel metal (US$/t) | 10,581 | 9,926 | 8,792 | 9,264 | 7% | 20% | 14% |
(i) Based on provisional, unaudited estimates. Prices exclude third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted.
(ii) Includes internal sales.
(iii) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.
At 31 December 2016, the Group had 267 kt of outstanding copper sales that were revalued at a weighted average price of US$2.51 per pound. The final price of these sales will be determined over the remainder of the 2017 financial year. In addition, 316 kt of copper sales from the 2016 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase earnings before interest and tax by US$37 million in the December 2016 half year.
BHP Billiton Operational Review for the half year ended 31 December 2016
3
Petroleum
Production
| Production | |||||
|---|---|---|---|---|---|
| Dec H16 | Dec Q16 | Dec Q16 | |||
| vs | vs | vs | |||
| Dec H16 | Dec Q16 | Dec H15 | Dec Q15 | Sep Q16 | |
| Crude oil, condensate and natural gas liquids (MMboe) | 48.2 | 23.9 | (20%) | (20%) | (1%) |
| Natural gas (bcf) | 347 | 165 | (10%) | (10%) | (9%) |
| Total petroleum production (MMboe) | 105.9 | 51.4 | (15%) | (15%) | (6%) |
Total petroleum production – Total petroleum production for the December 2016 half year decreased by 15 per cent to 105.9 MMboe. Guidance for the 2017 financial year remains unchanged at between 200 and 210 MMboe, comprising Conventional volumes between 123 and 127 MMboe and Onshore US volumes between 77 and 83 MMboe.
Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production for the December 2016 half year decreased by 20 per cent to 48.2 MMboe.
Onshore US liquids volumes decreased by 37 per cent to 16.4 MMboe as a result of a reduction in activity in the Black Hawk for value and natural field decline, which more than offset increased liquids production from the Permian.
Conventional liquids volumes decreased by seven per cent as higher production at Bass Strait and North West Shelf and an additional infill well at Mad Dog partially offset natural field decline across the portfolio and planned maintenance at Atlantis.
Natural gas – Natural gas production for the December 2016 half year declined by 10 per cent to 347 bcf.
The decline primarily reflects lower Onshore US gas volumes as a result of the decision to defer development activity for value and the divestment of our gas business in Pakistan. This was partially offset by higher demand at Bass Strait and Macedon and increased LNG volumes at North West Shelf.
On 5 September 2016, BHP Billiton announced the sale of 50 per cent of its interest in the undeveloped Scarborough area gas fields. ExxonMobil will remain operator of Scarborough and operatorship of North Scarborough will transfer from BHP Billiton to Woodside. The sale was completed during the December 2016 quarter.
Projects
| Projects | ||||
|---|---|---|---|---|
| Capital | Initial | |||
| Project and | expenditure | production | ||
| ownership | (US$m) | target date | Capacity | Progress |
| Bass Strait Longford | 520 | CY16 | Designed to process approximately | Initial gas sales achieved in Q4 CY16, |
| Gas Conditioning Plant | 400 MMcf/d of high-CO2gas. | under budget and production ramping up | ||
| (Australia) | to full rate. | |||
| 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 27% complete. | ||
| (Australia) | ||||
| 16.67% (non-operator) |
Petroleum capital expenditure guidance of approximately US$1.4 billion (excluding US$0.2 billion from capital creditor movements) for the 2017 financial year remains unchanged. This includes Conventional capital expenditure of US$0.8 billion which is focused on life extension projects at Bass Strait and North West Shelf. Onshore US capital expenditure is expected to be US$0.6 billion with development activity tailored to market conditions.
During the December 2016 quarter, BP (the operator) sanctioned the Mad Dog Phase 2 project. Approval from BHP Billiton´s Board will be sought during the March 2017 quarter.
BHP Billiton Operational Review for the half year ended 31 December 2016
4
Onshore US development activity
Onshore US drilling and development expenditure for the December 2016 half year was approximately US$273 million. Our operated rig count increased from two to three during the December 2016 quarter with deployment of a rig in the Haynesville in October 2016, following the successful execution of our hedging pilot. Additional hedge activity during the quarter has led to approval of a second rig in the Haynesville with operations expected to commence in March 2017. Completions activity in the Black Hawk was accelerated in the December 2016 quarter to drawdown drilled and uncompleted inventory as market conditions improved. We are currently progressing trials in the Black Hawk, testing the potential for staggered wells to increase recovery, larger frac jobs to improve productivity and the potential of the Upper Eagle Ford horizon. We expect early results of these trials to be known during the September 2017 quarter.
| December 2016 half year | Liquids focused areas | Liquids focused areas | Gas focused areas | Gas focused areas | ||
|---|---|---|---|---|---|---|
| (December 2015 halfyear) | Eagle Ford | Permian | Haynesville | Fayetteville |
Total |
|
| Capital expenditure(i) | US$ billion | 0.1 (0.6) | 0.1 (0.2) | 0.0 (0.0) | 0.0 (0.0) |
0.3 (0.8) |
| Rig allocation | At period end | 1 (5) | 1 (2) | 1 (0) | 0 (0) |
3 (7) |
| Net wells drilled and completed(ii) | Period total | 43 (74) | 15 (19) | 0 (4) | 2 (10) |
60 (107) |
| Net productive wells | At period end | 942 (912) | 118 (94) | 394 (409) | 1,042 (1,085) |
2,496 (2,500) |
(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.
Petroleum exploration
Exploration and appraisal wells drilled during the December 2016 quarter are summarised below.
| Well | Location | Target | BHP Billiton | Spud date | Water depth | Total well | Status |
|---|---|---|---|---|---|---|---|
| equity | depth | ||||||
| Burrokeet-1 | Trinidad & Tobago | Oil | 70% | 8 August 2016 | 1,923 m | 3,337 m | Plugged and abandoned |
| Block 23a | (Operator) | ||||||
| Burrokeet-2 | Trinidad & Tobago | Oil | 70% | 18 August 2016 | 1,923 m | 7,348 m | Plugged and abandoned |
| Block 23a | (Operator) |
The Burrokeet-1 well encountered mechanical difficulty shortly after spud and was plugged and abandoned. Non-commercial hydrocarbons were encountered at Burrokeet-2 with analysis ongoing. Phase 1 of the Trinidad and Tobago deep water drilling campaign has concluded. Following the oil discovery in the Shenzi North and Caicos wells in the central Gulf of Mexico, the Invictus rig has been mobilised for drilling the Wildling well in the March 2017 quarter.
During the December 2016 quarter, BHP Billiton won the bid to acquire a 60 per cent participating interest in and operatorship of blocks AE-0092 and AE-0093, containing the Trion discovered resource, in Mexico. Subject to satisfaction of conditions, BHP Billiton anticipates signing the relevant agreements in the March 2017 quarter.
In the US Gulf of Mexico, we increased acreage position and operatorship in the Southern Green Canyon Miocene and Western Gulf of Mexico Paleogene key focus areas. The regulator awarded all 12 of the leases for which BHP Billiton was the apparent high bidder in the Western Gulf of Mexico Lease Sale 248. In addition, BHP Billiton cross-assigned nine leases in Green Canyon with Statoil Gulf of Mexico LLC and Repsol E&P USA Inc. The cross-assignment results in BHP Billiton having a 65 per cent interest and operatorship over the nine leases, ahead of drilling the Scimitar exploration well in the June 2017 quarter. The regulator also approved assignment of BHP Billiton’s 60 per cent interest in two leases in Green Canyon (GC 633 and 676) to Chevron U.S.A. Inc.
In Australia, seismic work commenced in the Exmouth sub-basin following regulatory approval of the Good Standing Agreement in relation to the WA-475-P permit. The WA-335-P permit was officially relinquished after receiving consent from the regulator to surrender the permit.
Petroleum exploration expenditure for the December 2016 half year was US$364 million, of which US$217 million was expensed. An US$820 million exploration program is now planned for the 2017 financial year, an increase of US$120 million from prior guidance, following the successful bid for Trion in Mexico and positive drilling results at the LeClerc well in Trinidad and Tobago and the Caicos well in the Gulf of Mexico.
BHP Billiton Operational Review for the half year ended 31 December 2016
5
Copper
Production
| Production | |||||
|---|---|---|---|---|---|
| Dec H16 | Dec Q16 | Dec Q16 | |||
| vs | vs | vs | |||
| Dec H16 | Dec Q16 | Dec H15 | Dec Q15 | Sep Q16 | |
| Copper (kt) | 712 | 357 | (7%) | (7%) | 1% |
| Zinc (t) | 37,773 | 22,406 | 2% | 36% | 46% |
| Uranium oxide concentrate (t) | 1,976 | 1,060 | (22%) | (22%) | 16% |
Copper – Total copper production for the December 2016 half year decreased by seven per cent to 712 kt. Production for the 2017 financial year is now expected to be approximately 1.62 Mt, two per cent below prior guidance, and reflects a reduction in volumes at Olympic Dam.
Escondida copper production for the December 2016 half year was unchanged at 452 kt as higher concentrate production was offset by lower cathode production. During the period there was a four day site-wide suspension of operations to conduct an investigation following a fatality on 21 October 2016. Production guidance for Escondida remains unchanged at 1,070 kt, with volumes weighted to the second half of the 2017 financial year. The current Collective Agreement with Escondida N°1 Union expires on 31 January 2017 and negotiations for a new agreement are in progress. The commissioning of the Escondida Water Supply project and the planned ramp-up of the Los Colorados Extension project late in the 2017 financial year, will enable full utilisation of three concentrators during the 2018 financial year.
Pampa Norte copper production for the December 2016 half year decreased by eight per cent to 116 kt, with an unplanned outage offsetting improved recoveries at Cerro Colorado, and planned maintenance offsetting record ore milled at Spence in the December 2016 quarter. Copper production decreased by 13 per cent from the September 2016 quarter mainly due to suspension of the processing operations at the Cerro Colorado Ore Handling Plant 2 following the failure of a transfer chute. Pampa Norte copper production guidance for the 2017 financial year remains unchanged and is expected to be higher than the prior year supported by the completion of the Spence Recovery Optimisation project which achieved an annualised production run rate of 200 ktpa in the month of December 2016.
Olympic Dam copper production for the December 2016 half year decreased by 30 per cent to 78 kt following planned maintenance and a state-wide power outage which commenced on 28 September 2016. Power was safely restored on 14 October 2016 and operations were fully ramped-up in the December 2016 quarter. Olympic Dam copper production of approximately 160 kt to 170 kt is now expected for the 2017 financial year. Lower volumes reflect the power outage and unplanned maintenance at the refinery which commenced at the end of December 2016, ahead of the major smelter maintenance campaign planned for the September 2017 quarter.
Antamina copper production for the December 2016 half year decreased by nine per cent to 66 kt reflecting lower copper grades as mining progressed through a zinc rich ore zone, consistent with the mine plan. Guidance for the 2017 financial year remains unchanged at 130 kt. Zinc production for the December 2016 half year increased by two per cent to 38 kt with guidance for the 2017 financial year unchanged at 90 kt.
Project
| Capital | Initial | |||
|---|---|---|---|---|
| Project and | expenditure | production | ||
| ownership | (US$m) | target date | Capacity | Progress |
| Escondida Water Supply | 3,430 | CY17 | New desalination facility to ensure | Mechanical completion achieved with first |
| (Chile) | continued water supply to Escondida. | water expected in the March 2017 quarter. | ||
| 57.5% | Project on schedule and budget. The | |||
| overall project is 99% complete. |
BHP Billiton Operational Review for the half year ended 31 December 2016
6
Iron Ore
Production
| Production | |||||
|---|---|---|---|---|---|
| Dec H16 | Dec Q16 | Dec Q16 | |||
| vs | vs | vs | |||
| Dec H16 | Dec Q16 | Dec H15 | Dec Q15 | Sep Q16 | |
| Iron ore(i)(kt) | 117,636 | 60,049 | 4% | 9% | 4% |
(i) Represents Western Australia Iron Ore (WAIO). Excludes production from Samarco.
Iron ore – Total iron ore production for the December 2016 half year increased by four per cent to 118 Mt or 136 Mt on a 100 per cent basis. Guidance for the 2017 financial year remains unchanged at between 228 and 237 Mt or between 265 and 275 Mt on a 100 per cent basis, excluding production from Samarco.
WAIO achieved record production for the December 2016 half year as a result of the continued ramp-up of additional capacity at Jimblebar with the commissioning of a new primary crusher and additional conveying capacity. Combined with improved track reliability and lower scheduled maintenance at Yandi, volumes increased by four per cent from the September 2016 quarter. The rail renewal and maintenance program, which will support the supply chain’s longterm reliability, is progressing ahead of schedule and is now expected to be completed in the June 2017 quarter.
Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.
BHP Billiton Operational Review for the half year ended 31 December 2016
7
Coal
Production
| Production | |||||
|---|---|---|---|---|---|
| Dec H16 | Dec Q16 | Dec Q16 | |||
| vs | vs | vs | |||
| Dec H16 | Dec Q16 | Dec H15 | Dec Q15 | Sep Q16 | |
| Metallurgical coal(i)(kt) | 21,142 | 10,613 | 1% | 2% | 1% |
| Energy coal(ii)(kt) | 13,531 | 6,651 | (4%) | (4%) | (3%) |
(i) Represents Queensland Coal. Excludes production from Haju following the divestment of IndoMet Coal (2017 financial year: 129 kt).
(ii) Excludes production from New Mexico Coal following divestments (2017 financial year: 451 kt).
Metallurgical coal – Metallurgical coal production for the December 2016 half year increased by one per cent to 21 Mt. Guidance for the 2017 financial year remains unchanged at 44 Mt.
Strong performances at Broadmeadow, Peak Downs, Saraji and Caval Ridge, underpinned by additional stripping and higher wash-plant utilisation, more than offset the completion of longwall mining at Crinum in the December 2015 quarter, adverse weather conditions in the September 2016 quarter and lower yield at South Walker Creek.
Record production at Peak Downs was achieved during the December 2016 quarter with coal opportunistically trucked to Caval Ridge in order to utilise latent wash-plant capacity.
Energy coal – Energy coal production for the December 2016 half year decreased by four per cent to 14 Mt. Guidance for the 2017 financial year remains unchanged at 30 Mt.
New South Wales Energy Coal recorded improved underlying truck utilisation, however production declined by 13 per cent as a higher drawdown of in-pit and Run-of-Mine (ROM) inventories benefitted the December 2015 half year. This was partially offset by an 11 per cent increase in volumes at Cerrejón compared to the December 2015 half year which was constrained by drought conditions.
The divestment of Navajo Coal was completed on 29 July 2016, with management of the mine transferred to Navajo Transitional Energy Company on 31 December 2016.
BHP Billiton Operational Review for the half year ended 31 December 2016
8
Other
Nickel production
| Nickelproduction | |||||
|---|---|---|---|---|---|
| Dec H16 | Dec Q16 | Dec Q16 | |||
| vs | vs | vs | |||
| Dec H16 | Dec Q16 | Dec H15 | Dec Q15 | Sep Q16 | |
| Nickel (kt) | 40.9 | 22.1 | 10% | 45% | 18% |
Nickel – Nickel West production for the December 2016 half year increased by 10 per cent to 40.9 kt. Ongoing debottlenecking activities have resulted in record production at the Kwinana refinery. Nickel production guidance for the 2017 financial year remains unchanged and is expected to increase by approximately 10 per cent from the prior year.
Potash project
| 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 64% complete and on budget. |
| (Canada) | production and service shafts, and to continue the | Both shafts have been safely excavated and | |
| 100% | installation of essential surface infrastructure and | lined through the Blairmore aquifer. The | |
| utilities. | engineering contract for feasibility studies of | ||
| Jansen Stage 1 has been awarded. |
Minerals exploration
Minerals exploration expenditure for the December 2016 half year was US$75 million, of which US$75 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru, Canada, South Australia and the South-West United States.
Variance analysis relates to the relative performance of BHP Billiton and/or its operations during December 2016 half year compared with the December 2015 half year, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis.
The following footnotes apply to this Operational Review:
-
(1) Underlying EBITDA and Underlying attributable profit are used to reflect the underlying performance of BHP Billiton. Underlying EBITDA is earnings before net finance costs, taxation, depreciation, amortisation, impairment and any exceptional items. Underlying attributable profit is Attributable profit excluding any exceptional items.
-
(2) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
-
(3) Under the Preliminary Agreement, Samarco, Vale and BHP Billiton Brasil will provide, subject to Court approval, total security of BRL 2.2 billion (approximately US$675 million, 100 per cent basis) to support the payments for the social and environmental remediation programs under the Framework Agreement (Interim Security). The Interim Security comprises a charge over Samarco’s assets of BRL 800 million (approximately US$245 million), insurance bonds of BRL 1.3 billion (approximately US$400 million), and liquid assets of BRL 100 million (approximately US$30 million). During the period that the Interim Security is in place, it will, subject to Court approval, replace the BRL 1.2 billion injunction (approximately US$370 million) issued in the BRL 20 billion Civil Claim. In addition, the applications by the Federal Prosecutors for the BRL 7.7 billion injunction (approximately US$2.4 billion) in the BRL 155 billion Civil Claim and the BRL 20 billion asset freezing order (approximately US$6 billion) in the criminal proceedings commenced by the Federal Prosecutors in Brazil against Samarco, Vale, BHP Billiton Brasil and others will be suspended. The parties have agreed that the Interim Security will remain in place until the earlier of 30 June 2017 and the date that a final settlement arrangement is agreed between the Federal Prosecutors’ Office in Brazil, and Samarco, Vale and BHP Billiton Brasil. If a final settlement arrangement is not agreed by 30 June 2017, the Federal Prosecutors may request reinstatement by the Court of the BRL 1.2 billion (approximately US$370 million) injunction.
The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
BHP Billiton Operational Review for the half year ended 31 December 2016
9
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BHP Billiton Operational Review for the half year ended 31 December 2016
10
Production summary
| BHP Billiton Dec Mar Jun Sep Dec interest 2015 2016 2016 2016 2016 ~~Dec-15~~ ~~Mar-16~~ ~~Jun-16~~ ~~Sep-16~~ ~~Dec-16~~ Quarter ended |
BHP Billiton Dec Mar Jun Sep Dec interest 2015 2016 2016 2016 2016 ~~Dec-15~~ ~~Mar-16~~ ~~Jun-16~~ ~~Sep-16~~ ~~Dec-16~~ Quarter ended |
Year to date |
|---|---|---|
| Dec Dec 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) |
12,805 12,454 9,469 8,288 8,143 16,976 16,727 16,896 15,959 15,768 29,781 29,181 26,365 24,247 23,911 94.4 89.9 82.0 73.9 67.8 88.4 91.5 95.7 107.8 97.1 182.8 181.4 177.7 181.7 164.9 60.2 59.4 56.0 54.5 51.4 |
16,431 26,258 31,727 34,235 |
| 48,158 60,493 |
||
| 141.7 192.6 204.9 193.0 |
||
| 346.6 385.6 |
||
| 105.9 124.7 |
||
| 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 (kt) 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 |
131.7 174.9 182.7 147.0 162.6 37.2 35.4 38.7 34.1 32.0 168.9 210.3 221.4 181.1 194.6 89.3 84.8 85.3 70.5 71.5 69.0 59.8 65.8 62.1 53.8 57.4 49.8 40.7 40.9 37.2 215.7 194.4 191.8 173.5 162.5 384.6 404.7 413.2 354.6 357.1 1,024 1,193 645 1,146 1,220 1,024 1,193 645 1,146 1,220 16,454 11,913 6,474 15,367 22,406 16,454 11,913 6,474 15,367 22,406 17,889 31,408 35,894 27,561 37,784 39,299 29,028 20,010 24,366 29,651 57,188 60,436 55,904 51,927 67,435 962 1,544 1,874 1,229 1,323 1,636 1,751 1,558 1,345 1,446 265 174 232 163 188 2,863 3,469 3,664 2,737 2,957 1,352 961 876 916 1,060 1,352 961 876 916 1,060 232 227 562 561 225 232 227 562 561 225 |
309.6 291.3 66.1 72.3 |
| 375.7 363.6 |
||
| 142.0 160.2 115.9 125.8 78.1 112.3 |
||
| 336.0 398.3 |
||
| 711.7 761.9 |
||
| 2,366 1,881 |
||
| 2,366 1,881 |
||
| 37,773 37,051 |
||
| 37,773 37,051 |
||
| 65,345 41,694 54,017 68,648 |
||
| 119,362 110,342 |
||
| 2,552 2,143 2,791 3,402 351 511 |
||
| 5,694 6,056 |
||
| 1,976 2,526 |
||
| 1,976 2,526 |
||
| 786 324 |
||
| 786 324 |
BHP Billiton Operational Review for the half year ended 31 December 2016
11
Production summary
| Production summary | Production summary | |
|---|---|---|
| BHP Billiton Dec Mar Jun Sep Dec interest 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
| Dec Dec 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 |
17,003 15,817 15,115 18,008 17,751 11,723 11,002 11,911 12,384 12,179 15,960 16,204 18,325 15,729 17,555 4,852 5,472 5,304 6,057 5,178 5,757 4,562 4,971 5,409 7,386 1,665 - - - - 56,960 53,057 55,626 57,587 60,049 |
35,759 35,009 24,563 23,886 33,284 32,846 11,235 8,114 12,795 13,016 - 5,404 |
| 117,636 118,275 |
||
| 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 |
8,207 7,894 9,225 8,384 8,684 2,191 2,015 2,345 2,145 1,929 87 167 260 102 27 10,485 10,076 11,830 10,631 10,640 2,632 1,112 632 451 - 4,277 4,189 3,991 3,952 3,851 2,628 2,610 2,329 2,928 2,800 9,537 7,911 6,952 7,331 6,651 |
17,068 16,294 4,074 4,538 129 102 |
| 21,271 20,934 |
||
| 451 5,308 7,803 8,921 5,728 5,155 |
||
| 13,982 19,384 |
||
| Other | ||
| Nickel Saleable production (kt) Nickel West 100% Total |
15.2 20.0 23.4 18.8 22.1 15.2 20.0 23.4 18.8 22.1 |
40.9 37.3 |
| 40.9 37.3 |
(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP Billiton interest in saleable production is 80%.
(9) Shown on a 100% basis. BHP Billiton interest in saleable production is 75%.
Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.
BHP Billiton Operational Review for the half year ended 31 December 2016
12
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 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) NGL (Mboe) Natural gas (bcf) Total petroleum products (MMboe) Fayetteville (4) Natural gas (bcf) Total petroleum products (MMboe) |
1,390 1,813 1,745 1,922 1,770 1,307 1,455 1,831 2,102 1,460 23.9 30.3 38.1 41.9 31.3 6.7 8.3 9.9 11.0 8.4 1,423 1,124 925 1,486 1,468 235 259 241 292 263 34.9 33.8 27.6 38.7 36.9 7.5 7.0 5.8 8.2 7.9 2,331 2,093 2,097 1,676 1,726 2.3 2.1 2.1 1.7 1.7 9 8 9 10 8 14.4 16.2 17.2 17.5 17.1 2.4 2.7 2.9 2.9 2.9 4,257 4,056 4,058 3,054 3,263 278 270 269 208 207 2.0 1.9 1.9 1.5 1.6 4.9 4.6 4.6 3.5 3.7 648 880 1,134 950 1,170 41 41 52 36 52 0.1 0.1 0.2 0.1 0.2 0.7 0.9 1.2 1.0 1.3 3,185 3,094 2,813 2,632 2,692 269 206 192 94 131 0.8 0.6 0.6 0.5 0.5 3.6 3.4 3.1 2.8 2.9 7,156 7,018 4,949 3,871 4,008 3,806 3,649 2,717 2,268 2,159 25.4 25.1 19.5 16.5 15.2 15.2 14.9 10.9 8.9 8.7 1,354 1,499 1,410 1,415 1,378 488 288 393 734 580 3.4 2.4 4.9 4.4 4.4 2.4 2.2 2.6 2.9 2.7 1 - - - 3 - - - - 15 34.7 34.4 31.1 28.2 24.0 5.8 5.7 5.2 4.7 4.0 30.9 28.0 26.5 24.8 24.2 5.2 4.7 4.4 4.1 4.0 |
3,692 3,267 3,562 3,398 73.2 62.6 |
| 19.5 17.1 |
||
| 2,954 2,785 555 462 75.6 68.8 |
||
| 16.1 14.7 |
||
| 3,402 4,427 |
||
| 3.4 4.4 |
||
| 18 22 34.6 31.0 |
||
| 5.8 5.2 |
||
| 6,317 7,894 415 509 3.1 3.6 |
||
| 7.2 9.0 |
||
| 2,120 1,236 88 64 0.3 0.2 |
||
| 2.3 1.3 |
||
| 5,324 6,462 225 505 1.0 1.5 |
||
| 5.7 7.2 |
||
| 7,879 14,856 4,427 7,605 31.7 51.2 |
||
| 17.6 31.0 |
||
| 2,793 2,835 1,314 961 8.8 7.3 |
||
| 5.6 5.0 |
||
| 3 1 15 - 52.2 71.1 |
||
| 8.7 11.9 |
||
| 49.0 63.0 |
||
| 8.2 10.5 |
BHP Billiton Operational Review for the half year ended 31 December 2016
13
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 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) |
185 120 162 140 156 7.4 7.4 8.6 6.4 8.4 1.4 1.4 1.6 1.2 1.6 360 334 308 275 269 16 12 10 1 5 0.2 0.2 0.2 0.1 0.1 0.4 0.4 0.4 0.3 0.3 74 65 76 69 63 27 10 10 22 49 1.0 1.0 1.3 1.1 1.0 0.3 0.2 0.3 0.3 0.3 922 887 964 990 1,016 0.9 0.9 1.0 1.0 1.0 19 - - - - 3.7 - - - - 0.6 - - - - |
296 427 14.8 15.0 |
| 2.8 2.9 |
||
| 544 721 6 28 0.2 0.4 |
||
| 0.6 0.8 |
||
| 132 133 71 23 2.1 2.0 |
||
| 0.6 0.5 |
||
| 2,006 1,838 |
||
| 2.0 1.8 |
||
| - 42 - 7.9 |
||
| - 1.4 |
||
| 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) |
8,511 8,517 6,359 5,286 5,389 14,803 14,474 14,291 13,204 13,601 23,314 22,991 20,650 18,490 18,990 4,294 3,937 3,110 3,002 2,754 2,173 2,253 2,605 2,755 2,167 6,467 6,190 5,715 5,757 4,921 94.4 89.9 82.0 73.9 67.8 88.4 91.5 95.7 107.8 97.1 182.8 181.4 177.7 181.7 164.9 |
10,675 17,692 26,805 29,246 |
| 37,480 46,938 |
||
| 5,756 8,566 4,922 4,989 |
||
| 10,678 13,555 |
||
| 141.7 192.6 204.9 193.0 |
||
| 346.6 385.6 |
(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Onshore US volumes are net of mineral holder royalties.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(6) BHP Billiton completed the sale of the Pakistan gas business on 31 December 2015.
(7) September 2015 includes (8) Mboe for the finalisation adjustment following the cessation of production at Stybarrow on 26 June 2015.
BHP Billiton Operational Review for the half year ended 31 December 2016
14
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 2016 2015 |
||
| Copper | ||
| Escondida, Chile (1) Material mined (kt) 109,200 105,970 108,037 106,504 90,863 Sulphide ore milled (kt) 18,076 21,188 22,905 20,787 19,866 Average copper grade (%) 0.99% 0.99% 0.94% 0.87% 1.02% Production ex mill (kt) 142.8 175.8 181.7 153.2 168.6 Production Payable copper (kt) 131.7 174.9 182.7 147.0 162.6 Copper cathode (EW) (kt) 89.3 84.8 85.3 70.5 71.5 - Oxide leach (kt) 32.1 31.0 31.3 26.8 24.4 - Sulphide leach (kt) 57.2 53.8 54.0 43.7 47.1 Payable gold concentrate (troy oz) 17,889 31,408 35,894 27,561 37,784 Payable silver concentrate (troy koz) 962 1,544 1,874 1,229 1,323 Sales Payable copper (kt) 123.8 181.7 186.6 134.9 172.7 Copper cathode (EW) (kt) 101.1 80.3 83.8 65.6 71.8 Payable gold concentrate (troy oz) 17,889 31,408 35,894 27,561 37,784 Payable silver concentrate (troy koz) 962 1,544 1,874 1,229 1,323 (1) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%. Metals production is payable metal unless otherwise stated. |
197,367 219,267 40,653 40,896 0.94% 1.00% 321.8 312.5 309.6 291.3 142.0 160.2 51.2 55.5 90.8 104.7 65,345 41,694 2,552 2,143 307.6 281.4 137.4 164.9 65,345 41,694 2,552 2,143 |
|
| Pampa Norte, Chile Cerro Colorado Material mined (kt) 14,930 12,415 12,453 13,011 14,286 Ore milled (kt) 4,856 4,012 4,375 3,241 3,342 Average copper grade (%) 0.82% 0.84% 0.80% 0.68% 0.65% Production Copper cathode (EW) (kt) 18.8 20.0 24.8 17.1 12.1 Sales Copper cathode (EW) (kt) 19.7 18.6 25.2 16.4 13.7 Spence Material mined (kt) 21,593 22,549 21,124 23,638 22,635 Ore milled (kt) 5,146 4,355 4,836 4,713 5,187 Average copper grade (%) 1.30% 1.39% 1.22% 1.17% 1.19% Production Copper cathode (EW) (kt) 50.2 39.8 41.0 45.0 41.7 Sales Copper cathode (EW) (kt) 56.1 38.4 40.9 41.2 41.5 |
27,297 28,800 6,583 9,559 0.66% 0.73% 29.2 32.5 30.1 32.7 46,273 44,515 9,900 10,065 1.18% 1.35% 86.7 93.3 82.7 94.3 |
BHP Billiton Operational Review for the half year ended 31 December 2016
15
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 2016 2015 |
||
| Copper (continued) | ||
| Metals production is payable metal unless otherwise stated. Antamina, Peru Material mined (100%) (kt) 52,130 55,183 62,793 65,111 61,355 Sulphide ore milled (100%) (kt) 14,184 12,414 14,711 13,522 13,399 Average head grades - Copper (%) 0.92% 1.02% 0.90% 0.84% 0.84% - Zinc (%) 0.55% 0.54% 0.33% 0.60% 0.83% Production Payable copper (kt) 37.2 35.4 38.7 34.1 32.0 Payable zinc (t) 16,454 11,913 6,474 15,367 22,406 Payable silver (troy koz) 1,636 1,751 1,558 1,345 1,446 Payable lead (t) 1,024 1,193 645 1,146 1,220 Payable molybdenum (t) 232 227 562 561 225 Sales Payable copper (kt) 42.9 29.3 42.4 32.8 33.0 Payable zinc (t) 20,423 12,097 3,035 16,043 22,334 Payable silver (troy koz) 2,048 1,331 2,055 1,277 1,388 Payable lead (t) 1,056 1,073 1,108 767 1,100 Payable molybdenum (t) 138 178 331 648 476 |
126,466 108,923 26,921 28,484 0.84% 0.90% 0.71% 0.67% 66.1 72.3 37,773 37,051 2,791 3,402 2,366 1,881 786 324 65.8 73.7 38,377 39,170 2,665 3,570 1,867 1,322 1,124 294 |
|
| Olympic Dam, Australia Material mined(1) (kt) 2,372 2,210 1,993 2,204 1,887 Ore milled (kt) 2,767 2,174 2,031 2,279 2,116 Average copper grade (%) 2.22% 2.01% 2.20% 1.97% 2.00% Average uranium grade (kg/t) 0.62 0.61 0.59 0.60 0.68 Production Copper cathode (ER and EW) (kt) 57.4 49.8 40.7 40.9 37.2 Uranium oxide concentrate (t) 1,352 961 876 916 1,060 Refined gold (troy oz) 39,299 29,028 20,010 24,366 29,651 Refined silver (troy koz) 265 174 232 163 188 Sales Copper cathode (ER and EW) (kt) 57.3 49.4 43.9 37.5 41.2 Uranium oxide concentrate (t) 1,013 1,261 778 1,085 883 Refined gold (troy oz) 39,168 32,052 22,134 21,901 28,234 Refined silver (troy koz) 265 198 201 184 203 |
4,091 4,729 4,395 5,494 1.98% 1.93% 0.64 0.61 78.1 112.3 1,976 2,526 54,017 68,648 351 511 78.7 109.8 1,968 1,690 50,135 64,766 387 478 |
(1) Material mined refers to run of mine ore mined and hoisted.
BHP Billiton Operational Review for the half year ended 31 December 2016
16
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 2016 2015 |
||
| Iron Ore | ||
| Pilbara, Australia Production Newman (kt) 17,003 15,817 15,115 18,008 17,751 Area C Joint Venture (kt) 11,723 11,002 11,911 12,384 12,179 Yandi Joint Venture (kt) 15,960 16,204 18,325 15,729 17,555 Jimblebar(1) (kt) 4,852 5,472 5,304 6,057 5,178 Wheelarra (kt) 5,757 4,562 4,971 5,409 7,386 Total production (kt) 55,295 53,057 55,626 57,587 60,049 Total production (100%) (kt) 64,197 61,454 64,508 66,681 69,730 Sales Lump (kt) 13,886 13,380 13,054 14,156 14,127 Fines (kt) 40,917 40,078 42,673 42,278 45,447 Total (kt) 54,803 53,458 55,727 56,434 59,574 Total sales (100%) (kt) 63,625 61,927 64,617 65,368 69,196 Iron ore production and sales are reported on a wet tonnes basis. |
35,759 35,009 24,563 23,886 33,284 32,846 11,235 8,114 12,795 13,016 |
|
| 117,636 112,871 |
||
| 136,411 131,358 |
||
| 28,283 27,889 87,725 84,504 |
||
| 116,008 112,393 |
||
| 134,564 130,802 |
(1) Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.
| Samarco, Brazil (1) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Production | (kt) | 1,665 | - | - | - | - | - | 5,404 |
| Sales | (kt) | 2,425 | 224 | 94 | 12 | - | 12 | 5,956 |
(1) Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.
BHP Billiton Operational Review for the half year ended 31 December 2016
17
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 2016 2015 |
||
| Coal | ||
| Queensland Coal Production (1) BMA Blackwater (kt) 1,861 1,756 2,206 1,981 1,855 Goonyella (kt) 1,941 2,478 2,709 2,123 2,204 Peak Downs (kt) 1,323 1,159 1,385 1,520 1,715 Saraji (kt) 1,000 1,046 1,123 1,238 1,307 Gregory Joint Venture (2) (kt) 609 13 - - - Daunia (kt) 616 626 684 646 680 Caval Ridge (kt) 857 816 1,118 876 923 Total BMA (kt) 8,207 7,894 9,225 8,384 8,684 BHP Billiton Mitsui Coal (3) South Walker Creek (kt) 1,275 1,268 1,382 1,341 1,080 Poitrel (kt) 916 747 963 804 849 Total BHP Billiton Mitsui Coal (kt) 2,191 2,015 2,345 2,145 1,929 Total Queensland Coal (kt) 10,398 9,909 11,570 10,529 10,613 Sales Coking coal (kt) 7,642 7,348 8,059 7,240 7,658 Weak coking coal (kt) 2,695 2,681 3,196 2,799 2,659 Thermal coal (kt) 290 241 310 206 154 Total (kt) 10,627 10,270 11,565 10,245 10,471 Coal production is reported on the basis of saleable product. |
3,836 3,664 4,327 3,809 3,235 2,487 2,545 2,037 - 1,316 1,326 1,314 1,799 1,667 |
|
| 17,068 16,294 |
||
| 2,421 2,786 1,653 1,752 |
||
| 4,074 4,538 |
||
| 21,142 20,832 |
||
| 14,898 14,657 5,458 5,941 360 376 |
||
| 20,716 20,974 |
(1) Production figures include some thermal coal.
(2) Longwall mining at Crinum completed during the December 2015 quarter.
(3) Shown on a 100% basis. BHP Billiton interest in saleable production is 80%.
| Haju, Indonesia (1) Production (kt) 87 167 260 102 27 129 102 Sales - export (kt) - 148 239 117 - 117 - (1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016. |
Haju, Indonesia (1) Production (kt) 87 167 260 102 27 129 102 Sales - export (kt) - 148 239 117 - 117 - (1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016. |
Haju, Indonesia (1) Production (kt) 87 167 260 102 27 129 102 Sales - export (kt) - 148 239 117 - 117 - (1) Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016. |
|---|---|---|
| New Mexico, USA Production Navajo Coal(1) (kt) San Juan Coal (2) (kt) Total (kt) Sales thermal coal - local utility |
1,403 694 632 451 - 1,229 418 - - - 2,632 1,112 632 451 - 2,661 1,106 613 105 - |
451 2,673 - 2,635 |
| 451 5,308 |
||
| 105 5,332 |
(1) The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP Billiton. Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.
(2) BHP Billiton completed the sale of San Juan Mine on 31 January 2016.
| NSW Energy Coal, Australia Production (kt) Sales Export thermal coal (kt) Inland thermal coal (kt) Total (kt) |
4,277 4,189 3,991 3,952 3,851 5,081 3,410 3,993 3,640 3,539 229 234 440 331 311 5,310 3,644 4,433 3,971 3,850 |
7,803 8,921 7,179 9,211 642 482 |
|---|---|---|
| 7,821 9,693 |
||
| Cerrejón, Colombia Production (kt) Sales thermal coal - export (kt) |
2,628 2,610 2,329 2,928 2,800 2,565 2,339 2,844 2,905 2,722 |
5,728 5,155 5,627 5,418 |
BHP Billiton Operational Review for the half year ended 31 December 2016
18
Production and sales report
| Dec Mar Jun Sep Dec 2015 2016 2016 2016 2016 Quarter ended |
Year to date | |
|---|---|---|
| Dec Dec 2016 2015 |
||
| Other | ||
| Nickel West, Australia Production Nickel contained in concentrate (kt) 0.2 0.3 0.3 0.3 0.2 Nickel contained in finished matte (kt) 2.6 2.8 5.8 1.8 4.1 Nickel metal (kt) 12.4 16.9 17.3 16.7 17.8 Total nickel production (kt) 15.2 20.0 23.4 18.8 22.1 Sales Nickel contained in concentrate (kt) 0.2 0.3 0.3 0.3 0.2 Nickel contained in finished matte (kt) 3.7 2.7 5.9 1.8 4.1 Nickel metal (kt) 12.1 17.8 17.4 16.5 17.8 Total nickel sales (kt) 16.0 20.8 23.6 18.6 22.1 Nickel production is reported on the basis of saleable product |
0.5 0.9 5.9 7.6 34.5 28.8 |
|
| 40.9 37.3 |
||
| 0.5 0.9 5.9 7.9 34.3 27.7 |
||
| 40.7 36.5 |
BHP Billiton Operational Review for the half year ended 31 December 2016
19