UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

January 20, 2016

 

 

 

BHP BILLITON LIMITED    BHP BILLITON PLC
(ABN 49 004 028 077)    (REG. NO. 3196209)
(Exact name of Registrant as specified in its charter)    (Exact name of Registrant as specified in its charter)

 

VICTORIA, AUSTRALIA    ENGLAND AND WALES
(Jurisdiction of incorporation or organisation)    (Jurisdiction of incorporation or organisation)

171 COLLINS STREET, MELBOURNE,

VICTORIA 3000 AUSTRALIA

  

NEATHOUSE PLACE, LONDON,

UNITED KINGDOM

(Address of principal executive offices)    (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:  x Form 20-F    ¨ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:  ¨ Yes    x No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

 

 

 


NEWS RELEASE    LOGO

 

Release Time            IMMEDIATE
Date    20 January 2016
Release Number    2/16

BHP BILLITON OPERATIONAL REVIEW

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

 

  Further productivity improvements supported the robust production performance across our operated assets during the period.

 

  Full year production guidance maintained for Petroleum, Copper and Coal.

 

  Guidance at Western Australia Iron Ore (WAIO) maintained at 270 Mt (100% basis) as continued productivity is expected to offset one-off operational issues from the December quarter. Total iron ore guidance reduced by 10 Mt to 237 Mt due to the suspension of production at Samarco.

 

  Four major projects under development are tracking to plan. The North West Shelf Greater Western Flank-A petroleum project was completed under budget and ahead of schedule. The Greater Western Flank-B project was approved during the period.

 

  Underlying attributable profit(1) in the December 2015 half year is expected to include additional charges in a range of approximately US$300 million to US$450 million (detail presented on page 2).

 

Production

   Dec H15      vs Dec H14      

Petroleum (MMboe)

     125         (5 %)    Lower gas volumes reflect deferral of development activity in Onshore US and natural field decline in our Conventional assets.

Copper (kt)

     762         (6 %)    Increased throughput enabled by the ramp up of the Escondida Organic Growth Project 1 and strong operating performance across the business partially offset expected lower grades at Escondida.

Iron ore (Mt)

     118         4   Record WAIO volumes for the half year as the Jimblebar mining hub operated at full capacity following ramp-up in the prior year.

Metallurgical coal (Mt)

     21         (3 %)    Record production at four Queensland Coal mines partially offset a convergence event at Broadmeadow and planned closure of Crinum.

Energy coal (Mt)

     19         (3 %)    Unfavourable weather conditions at NSWEC and Cerrejón.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Our operated assets continued to perform well over the last six months. The strong performance of our conventional petroleum assets has offset lower shale volumes following a reduction in investment to preserve the value of our acreage in current market conditions. Increased throughput at Escondida helped mitigate the impact of expected grade decline and better productivity supported production at Queensland Coal. These efforts have allowed us to maintain production guidance for Petroleum, Copper, Coal and Western Australia Iron Ore.

“Commodity prices fell substantially in the first half of the 2016 financial year putting pressure on the whole resources sector. We continue to cut costs and remain focused on safely improving our operational performance to enhance the resilience of our business. In this environment, we are also committed to protecting our strong balance sheet so we have the financial flexibility to manage further volatility and take advantage of the expected recovery in copper and oil over the medium term.”

 

 

   1


Summary

Operational performance

Production for the December 2015 half year and quarter and guidance for the 2016 financial year are summarised in the table below.

 

     Dec      Dec      Dec H15     Dec Q15     Dec Q15     Previous      Current  
     2015      2015      vs     vs     vs     FY16      FY16  

Production

   Half      Qtr      Dec H14     Dec Q14     Sep Q15     guidance      guidance  

Petroleum (MMboe)

     124.7         60.2         (5 %)      (5 %)      (7 %)      237         237   

Onshore US (MMboe)

     58.4         28.5         (5 %)      (9 %)      (4 %)      112         109   

Copper (Mt)

     0.8         0.4         (6 %)      (9 %)      2     1.5         1.5   

Escondida (kt)

     452         221         (18 %)      (22 %)      (4 %)      940         940   

Iron ore (Mt)

     118         57         4     1     (7 %)      247         237   

WAIO (100% basis) (Mt)

     131         64         6     5     (4 %)      270         270   

Metallurgical coal (Mt)

     21         10         (3 %)      (6 %)      0     40         40   

Energy coal (Mt)(2)

     19         10         (3 %)      (6 %)      (3 %)      40         40   

Major development projects

During the December 2015 quarter, BHP Billiton approved an investment of US$314 million (BHP Billiton share) for the North West Shelf Greater Western Flank-B petroleum project. This follows the delivery of first production from the North West Shelf Greater Western Flank-A project during the December 2015 quarter, which was completed under budget and ahead of schedule. The Flank-A project will not be reported in future Operational Reviews.

At the end of the December 2015 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.

Corporate update

BHP Billiton expects Underlying attributable profit in the December 2015 half year to include additional charges in a range of approximately US$300 million to US$450 million related to: (1) redundancies largely associated with the simplification of our business, rig terminations in Onshore US and closure of the Crinum coal mine; (2) inventory write-downs reflecting significantly weaker commodity prices; and (3) global royalty and taxation matters.

 

Additional charges to be recognised in the December 2015 half year

(US$ million)

   Underlying
EBIT(1)
     Underlying attributable
profit(1)
 

Redundancies and closure(i): across all businesses

     200 to 250         125 to 175   

Inventory write-downs: across all minerals businesses

     100 to 150         50 to 100   

Global royalty and taxation matters

     125 to 175         125 to 175   
  

 

 

    

 

 

 

Total charges

     425 to 575         300 to 450   
  

 

 

    

 

 

 

 

(i) Includes rig termination charges in Onshore US

In addition, the Group expects to record a number of exceptional items in the December 2015 half year.

On 15 January 2016, BHP Billiton announced that it expects to recognise an impairment charge of approximately US$4.9 billion post-tax (or approximately US$7.2 billion pre-tax) against the carrying value of its Onshore US assets. The impairment reflects changes to price assumptions, discount rates and development plans. This follows significant volatility and much weaker prices experienced in the oil and gas industry which have more than offset our substantial productivity improvements. This impairment will be reported as an exceptional item in the interim financial results to be released in February 2016.

‘Global taxation matters’ includes potential litigation and tax-related amounts.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    2


Exceptional items to be recognised in the December 2015 half year

(US$ billion)

   Attributable profit  

Impairment of Onshore US assets

     ~4.9   

Global taxation matters

     0.25 to 0.45   

On 5 November 2015, the Samarco Mineração S.A (Samarco) iron ore operation in Minas Gerais, Brazil, experienced a breach of the Fundão tailings dam and Santarém water dam. Samarco is continuing to work on quantifying the estimated costs related to the tragedy and, therefore, it is too early to provide an estimate of the financial impact on BHP Billiton. We are continuing to work closely with Samarco and will provide an estimate as soon as we are in a position to do so. BHP Billiton’s 50 per cent interest in Samarco is recorded as an equity accounted investment as one line on the balance sheet. Any charges related to the event are expected to be classified as an exceptional item.

The Group’s adjusted effective tax rate(3) is expected to remain in the range of 33 per cent to 37 per cent in the December 2015 half year.

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

Marketing update

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

 

Average realised prices(i)

   Dec
2015
Half
     Dec
2014
Half
     June
2015
Half
     FY15      Dec H15
vs
Dec H14
    Dec H15
vs
Jun H15
    Dec H15
vs

FY15
 

Oil (crude and condensate) (US$/bbl)

     42         85         52         68         (51 %)      (19 %)      (38 %) 

Natural gas (US$/Mscf)(ii)

     2.91         4.21         3.29         3.77         (31 %)      (12 %)      (23 %) 

US natural gas (US$/Mscf)

     2.35         3.89         2.59         3.27         (40 %)      (9 %)      (28 %) 

LNG (US$/Mscf)

     8.24         13.76         9.40         11.65         (40 %)      (12 %)      (29 %) 

Copper (US$/lb)

     2.12         2.98         2.61         2.78         (29 %)      (19 %)      (24 %) 

Iron ore (US$/wmt, FOB)

     43         70         53         61         (39 %)      (19 %)      (30 %) 

Hard coking coal (US$/t)

     82         110         99         105         (25 %)      (17 %)      (22 %) 

Weak coking coal (US$/t)

     67         92         85         88         (27 %)      (21 %)      (24 %) 

Thermal coal (US$/t)(iii)

     49         61         56         58         (20 %)      (13 %)      (16 %) 

Nickel metal (US$/t)

     9,926         16,905         13,688         15,301         (41 %)      (27 %)      (35 %) 

 

(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 2015, the Group had 268 kt of outstanding copper sales that were revalued at a weighted average price of US$2.14 per pound. The final price of these sales will be determined over the remainder of the 2016 financial year. In addition, 363 kt of copper sales from the 2015 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will decrease earnings before interest and tax by US$336 million in the December 2015 half year.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    3


Petroleum

Production

 

     Dec
2015
Half
     Dec
2015
Qtr
     Dec H15
vs

Dec H14
    Dec Q15
vs

Dec Q14
    Dec Q15
vs

Sep Q15
 

Crude oil, condensate and natural gas liquids (MMboe)

     60.5         29.8         (3 %)      (4 %)      (3 %) 

Natural gas (bcf)

     385.6         182.8         (7 %)      (6 %)      (10 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production (MMboe)

     124.7         60.2         (5 %)      (5 %)      (7 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production – Total petroleum production for the December 2015 half year decreased by five per cent to 124.7 MMboe. Guidance for the 2016 financial year remains unchanged at 237 MMboe, as the strong performance by our Conventional business offset lower volumes following a further reduction in Onshore US activity, a third party gas plant outage in the Permian and the successful divestment of our gas business in Pakistan.

Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production for the December 2015 half year decreased by three per cent to 60.5 MMboe.

Onshore US liquids volumes for the December 2015 half year rose by eight per cent to 26.3 MMboe, underpinned by an increase in liquids production from the Black Hawk and Permian of nine per cent and 78 per cent, respectively. However, a reduction in capital spend of approximately 25 per cent contributed to a three per cent decline in liquids production from the Black Hawk and Permian, relative to the September 2015 quarter. Given a further reduction in development activity, annual liquids volumes from these liquids-rich fields are now expected to show a modest decline year on year.

In our Conventional business, a nine per cent decrease in liquids production reflects the impact of industrial action at Bass Strait and natural field decline across the portfolio.

Natural gas – Natural gas production for the December 2015 half year declined by seven per cent to 386 bcf.

The decline primarily reflects lower Onshore US gas volumes as a result of the decision to defer development activity for longer-term value. This was partially offset by higher seasonal demand at Bass Strait.

Projects

 

Project and ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

North West Shelf

Greater Western

Flank-A

(Australia)

16.67% (non-operator)

     400         CY16       To maintain LNG plant throughput from the North West Shelf operations.    First production achieved in Q4 CY15. Project completed ahead of schedule and under budget.

Bass Strait Longford

Gas Conditioning

Plant

(Australia)

50% (non-operator)

     520         CY16       Designed to process approximately 400 MMcf/d of high-CO2 gas.    On schedule and budget. The overall project is 76% complete.

North West Shelf

Greater Western

Flank-B

(Australia)

16.67% (non-operator)

     314         CY19       To maintain LNG plant throughput from the North West Shelf operations.    Project approved by all joint venture partners in December 2015.

Conventional capital expenditure of US$1.5 billion is expected for the 2016 financial year, and remains focused on high-return infill drilling opportunities in the Gulf of Mexico and Western Australia, as well as life extension projects at Bass Strait and North West Shelf.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    4


Onshore US development activity

Onshore US drilling and development expenditure for the December 2015 half year was approximately US$850 million, less than half the December 2014 half year. Our operated rig count remained at seven in the December 2015 quarter, however, we plan a reduction of two additional rigs from the Black Hawk in the March 2016 quarter as we continue to improve drilling efficiency and defer development activity to preserve value. An update to the drilling and development expenditure budget for the 2016 financial year will be provided with the release of our interim results in February 2016.

 

December 2015 half year        Liquids focused areas     Gas focused areas        

(December 2014 half year)

       Eagle Ford     Permian     Haynesville     Fayetteville     Total  

Capital expenditure(i)

   US$ billion     0.6 (1.2     0.2 (0.4     0.0 (0.2     0.0 (0.1     0.8 (1.9

Rig allocation

   At period end     5 (18     2 (5     0 (3     0 (0     7 (26

Net wells drilled and completed(ii)

   Period total     74 (85     19 (18     4 (13     10 (8     107 (124

Net productive wells

   At period end     912 (732     94 (49     409 (406     1,085 (1,021     2,500 (2,208

 

(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 2015 half year are summarised below.

 

Well

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

Status

Shenzi North-ST2

   Gulf of
Mexico
GC609
   Oil    44%
(operator)
  15 August
2015
     1,309 m         9,332 m       Hydrocarbons encountered; Plugged and abandoned

Shenzi North-ST3

   Gulf of
Mexico
GC609
   Oil    72%
(operator)
  24 October
2015
     1,309 m         9,577 m       Hydrocarbons encountered; Evaluation ongoing

Our Petroleum exploration is focused in the deepwater Gulf of Mexico, the Caribbean and the Beagle sub-basin off the coast of Western Australia. We are pursuing high-quality oil plays in these three focus areas and continue to invest opportunistically in future growth options. Since August 2015, BHP Billiton has acquired 26 blocks in the Western Gulf of Mexico Lease Sale with a 100 per cent working interest.

Petroleum exploration expenditure for the December 2015 half year was US$321 million, of which US$126 million was expensed. A US$600 million exploration program remains on plan for the 2016 financial year, largely focused on acreage access, seismic data acquisition across our three key focus areas and increased activity in our exploration drilling program.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    5


Copper

Production

 

     Dec
2015
Half
     Dec
2015
Qtr
     Dec H15
vs
Dec H14
    Dec Q15
vs
Dec Q14
    Dec Q15
vs
Sep Q15
 

Copper (kt)

     762         385         (6 %)      (9 %)      2

Zinc (t)

     37,051         16,454         0     1     (20 %) 

Silver (troy koz)

     6,056         2,863         36     37     (10 %) 

Uranium oxide concentrate (t)

     2,547         1,386         31     29     19

Copper – Total copper production for the December 2015 half year decreased by six per cent to 762 kt as continued strong operating performance across the business was offset by grade decline at Escondida, as anticipated. Guidance for the 2016 financial year remains unchanged at 1.5 Mt.

Escondida copper production for the December 2015 half year decreased by 18 per cent to 452 kt as record material mined, underpinned by improvements in truck availability and utilisation, was more than offset by a 25 per cent decline in grade. Increased ore milled during the period was enabled by a drawdown of historically high-cost, lower grade ore inventory. Production guidance for Escondida remains unchanged at approximately 940 kt for the 2016 financial year, as the ramp up of the Organic Growth Project 1 progresses ahead of plan and is expected to reach full capacity during the year. In the medium term, completion of the Escondida Water Supply project and the potential life extension of Los Colorados will enable utilisation of three concentrators to offset grade decline and support a strong recovery in production(4).

Pampa Norte copper production for the December 2015 half year was broadly unchanged at 126 kt, as record ore milled and higher grade underpinned record production at Spence and offset lower recoveries at Cerro Colorado. Copper production at Cerro Colorado increased by 37 per cent in the December 2015 quarter relative to the September 2015 quarter as mining progressed through a zone of higher-grade ore. The Spence and Cerro Colorado triennial collective bargaining agreements were successfully concluded in December 2015 and January 2016 respectively. Production at Pampa Norte for the 2016 financial year is now expected to be ahead of the prior year despite a short period of industrial action at Cerro Colorado. In the short to medium term, the Spence Recovery Optimisation project will enable the full utilisation of approximately 200 ktpa of tankhouse capacity.

Olympic Dam copper production increased by 37 per cent from the December 2014 half year to a record 112 kt and reflects record ore milled and improved smelter utilisation following planned maintenance in the prior period. Copper grade increased by 35 per cent in the December 2015 quarter in line with the mine plan. Olympic Dam copper production is now on track to exceed 200 kt for the 2016 financial year.

Antamina copper production for the December 2015 half year increased by 36 per cent to 72 kt as higher grades and recoveries were supported by record material mined and milled. Antamina copper production of 136 kt is forecast for the 2016 financial year.

Project

 

Project and ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

Escondida Water

Supply

(Chile)

57.5%

     3,430         CY17       New desalination facility to ensure continued water supply to Escondida.    On schedule and budget. The overall project is 76% complete.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    6


Iron Ore

Production

 

     Dec
2015
Half
     Dec
2015
Qtr
     Dec H15
vs
Dec H14
    Dec Q15
vs
Dec Q14
    Dec Q15
vs
Sep Q15
 

Iron ore (kt)

     118,275         56,960         4     1     (7 %) 

Iron ore – Total iron ore production for the December 2015 half year increased by four per cent to 118 Mt. Production for the 2016 financial year is now expected to be 237 Mt, four per cent lower than prior guidance, and reflects the suspension of operations at Samarco.

WAIO production increased by six per cent in the December 2015 half year to a record 131 Mt (100 per cent basis), underpinned by the Jimblebar mining hub operating at full capacity and improved ore handling plant utilisation at Newman. This was partially offset by a train derailment and a power outage at the port which reduced volumes in the December 2015 quarter. WAIO guidance for the 2016 financial year remains unchanged at 270 Mt (100 per cent basis) subject to a benign wet season, as continued productivity is expected to offset the one-off operational issues from the December 2015 quarter. The ramp-up of additional capacity at the Jimblebar mining hub and further improvements in the efficiency of the integrated supply chain will deliver an increase in system capacity to 290 Mtpa over time.

Samarco production for the December 2015 half year decreased by 25 per cent to 11 Mt (100 per cent basis). Mining and processing operations at Samarco remain suspended following the breach of the Fundão tailings dam and Santarém water dam on 5 November 2015. Pellets continued to be shipped from port stockpiles during the December 2015 quarter with the final shipment of pellets expected in January 2016.

The sale of BHP Billiton’s 100 per cent interest in its Liberia iron ore project to Cavalla Resources was completed in October 2015.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    7


Coal

Production

 

     Dec
2015
Half
     Dec
2015
Qtr
     Dec H15
vs
Dec H14
    Dec Q15
vs
Dec Q14
    Dec Q15
vs
Sep Q15
 

Metallurgical coal (kt)

     20,934         10,485         (3 %)      (6 %)      0

Energy coal (kt)

     19,384         9,537         (3 %)      (6 %)      (3 %) 

Metallurgical coal – Metallurgical coal production for the December 2015 half year decreased by three per cent to 21 Mt. Guidance for the 2016 financial year remains unchanged at 40 Mt.

Queensland Coal production declined in the December 2015 half year as record production at the Blackwater, Daunia, Caval Ridge and South Walker Creek mines was offset by a convergence event at the Broadmeadow mine, which has since resumed normal operations, and completion of longwall mining at the Crinum mine. The Crinum mine will transition into care and maintenance in the March 2016 quarter.

Energy coal – Energy coal production for the December 2015 half year decreased by three per cent to 19 Mt. Guidance for the 2016 financial year remains unchanged at 40 Mt(2).

Lower production for the December 2015 half year reflected continued drought conditions at Cerrejón and the impact of heavy rainfall at New South Wales Energy Coal. A 16 per cent increase in Navajo Coal volumes due to higher customer demand was offset by lower customer requirements for our San Juan product.

On 2 July 2015, BHP Billiton announced that the sale agreement for the San Juan Mine to Westmoreland Coal Company (WCC) had been executed. Regulatory approval has been received and the transaction is now expected to be completed in the March 2016 quarter, following agreement with both parties to ensure all closing conditions are met.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    8


Other

Nickel production

 

     Dec
2015
Half
     Dec
2015
Qtr
     Dec H15
vs
Dec H14
    Dec Q15
vs
Dec Q14
    Dec Q15
vs
Sep Q15
 

Nickel (kt)

     37.3         15.2         (23 %)      (36 %)      (31 %) 

Nickel – Nickel West production for the December 2015 half year decreased by 23 per cent to 37.3 kt. Lower volumes reflected planned major outages at the Kalgoorlie smelter and Kwinana refinery during the December 2015 quarter and a reduction in third party ore delivered to the Kambalda concentrator.

Potash project

 

Project and ownership

   Investment
(US$m)
    

Scope

  

Progress

Jansen Potash

(Canada)

100%

     2,600       Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.    The project is 54% complete and within the approved budget. Shaft excavation is progressing.

Minerals exploration

Minerals exploration expenditure for the December 2015 half year was US$89 million, of which US$73 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru and the South-West United States.

 

 

Variance analysis relates to the relative performance of BHP Billiton and/or its operations during the December 2015 half year compared with the December 2014 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 attributable profit and Underlying EBIT are used to reflect the underlying performance of BHP Billiton. Underlying attributable profit is Attributable profit excluding any exceptional items. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items.
(2)  Guidance assumes a full year of production from the San Juan mine.
(3)  The Group’s adjusted effective tax rate excludes the influence of exchange rate movements and exceptional items.
(4)  Subject to Escondida Owners Council approval.

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 2015    9


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

 

Media Relations

 

Australia and Asia

 

Emily Perry

T +61 3 9609 2800 Mobile +61 477 325 803

Email: Emily.Perry@bhpbilliton.com

 

Eleanor Colonico

T +61 3 9609 2360 Mobile +61 407 064 748

Email: Eleanor.Colonico@bhpbilliton.com

 

Paul Hitchins

T +61 3 9609 2592 Mobile +61 419 315 001

Email: Paul.Hitchins@bhpbilliton.com

 

United Kingdom and South Africa

 

Ruban Yogarajah

T +44 207 802 4033 Mobile +44 7827 082 022

Email: Ruban.Yogarajah@bhpbilliton.com

 

Jennifer White

T +44 207 802 7462 Mobile +44 7827 253 764

Email: Jennifer.White@bhpbilliton.com

 

North America

 

Jaryl Strong

Tel: +1 713 499 5548 Mobile: +1 281 222 6627

email: Jaryl.Strong@bhpbilliton.com

  

Investor Relations

 

Australia and Asia

 

Tara Dines

Tel: +61 3 9609 2222 Mobile: +61 499 249 005

email: Tara.Dines@bhpbilliton.com

 

Andrew Gunn

Tel: +61 3 9609 3575 Mobile: +61 402 087 354

email: Andrew.Gunn@bhpbilliton.com

 

United Kingdom and South Africa

 

Jonathan Price

Tel: +44 20 7802 4131 Mobile: +44 7990 527 726

email: Jonathan.H.Price@bhpbilliton.com

 

Americas

 

James Wear

Tel: +1 212 310 1421 Mobile: +61 429 124 209

email: James.Wear@bhpbilliton.com

 

Joseph Suarez

Tel: +1 212 310 1422 Mobile: +1 646 400 3803

email: Joseph.Suarez@bhpbilliton.com

BHP Billiton Limited ABN 49 004 028 077

Registered in Australia

Registered Office: Level 16, 171 Collins Street

Melbourne Victoria 3000 Australia

Tel +61 1300 55 4757 Fax +61 3 9609 3015

  

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 half year ended 31 December 2015    10


PRODUCTION SUMMARY

 

           QUARTER ENDED      YEAR TO DATE  
     BHP Billiton
interest
    DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
     DEC
2015
     DEC
2015
     DEC
2014
 

Petroleum (1)

                      

Petroleum

                      

Crude oil, condensate and NGL (Mboe)

                      

Onshore US

       12,905         15,848         15,413         13,453         12,805         26,258         24,365   

Conventional

       18,258         15,450         15,759         17,259         16,976         34,235         37,743   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       31,163         31,298         31,172         30,712         29,781         60,493         62,108   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas (bcf)

                      

Onshore US

       110.3         99.9         96.4         98.2         94.4         192.6         223.9   

Conventional

       84.1         81.6         95.4         104.6         88.4         193.0         189.4   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       194.4         181.5         191.8         202.8         182.8         385.6         413.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

    

                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum production (MMboe)

       63.6         61.5         63.2         64.5         60.2         124.7         131.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     208.8         260.9         247.0         159.6         131.7         291.3         408.2   

Antamina

     33.8     27.3         26.7         28.0         35.1         37.2         72.3         53.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       236.1         287.6         275.0         194.7         168.9         363.6         461.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     75.0         77.3         88.8         70.9         89.3         160.2         144.3   

Pampa Norte (4)

     100     69.6         66.5         57.7         56.8         69.0         125.8         125.4   

Olympic Dam

     100     43.0         28.6         13.7         54.9         57.4         112.3         82.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       187.6         172.4         160.2         182.6         215.7         398.3         351.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

    

                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper

       423.7         460.0         435.2         377.3         384.6         761.9         813.1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     486         493         448         857         1,024         1,881         1,119   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       486         493         448         857         1,024         1,881         1,119   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     16,271         13,571         15,857         20,597         16,454         37,051         37,007   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       16,271         13,571         15,857         20,597         16,454         37,051         37,007   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     12,710         21,265         25,554         23,805         17,889         41,694         34,690   

Olympic Dam (refined gold)

     100     38,537         26,441         9,438         29,349         39,299         68,648         68,901   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       51,247         47,706         34,992         53,154         57,188         110,342         103,591   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     958         1,355         1,314         1,181         962         2,143         2,117   

Antamina

     33.8     885         872         1,115         1,766         1,636         3,402         1,839   

Olympic Dam (refined silver)

     100     243         172         55         246         265         511         497   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       2,086         2,399         2,484         3,193         2,863         6,056         4,453   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     1,076         607         595         1,161         1,386         2,547         1,942   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,076         607         595         1,161         1,386         2,547         1,942   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     75         151         206         92         232         324         115   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       75         151         206         92         232         324         115   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    11


PRODUCTION SUMMARY

 

           QUARTER ENDED      YEAR TO DATE  
     BHP Billiton
interest
    DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
     DEC
2015
     DEC
2015
     DEC
2014
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     16,012         14,916         16,062         18,006         17,003         35,009         32,719   

Area C Joint Venture

     85     11,314         13,201         12,214         12,163         11,723         23,886         24,579   

Yandi Joint Venture

     85     17,694         16,798         17,452         16,886         15,960         32,846         34,301   

Jimblebar (6)

     85     2,813         4,513         5,462         3,262         4,852         8,114         6,784   

Wheelarra

     85     4,755         5,965         5,159         7,259         5,757         13,016         7,870   

Samarco

     50     3,764         3,586         3,737         3,739         1,665         5,404         7,190   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       56,352         58,979         60,086         61,315         56,960         118,275         113,443   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     9,009         7,602         9,023         8,087         8,207         16,294         17,237   

BHP Billiton Mitsui Coal (8)

     80     2,128         2,057         2,370         2,347         2,191         4,538         4,332   

Haju (9)

     75     —           —           —           15         87         102         —     
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       11,137         9,659         11,393         10,449         10,485         20,934         21,569   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

USA

     100     2,512         2,247         2,574         2,676         2,632         5,308         5,202   

Australia

     100     4,608         5,252         5,086         4,644         4,277         8,921         9,360   

Colombia

     33.3     3,003         2,975         2,944         2,527         2,628         5,155         5,372   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,123         10,474         10,604         9,847         9,537         19,384         19,934   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West

     100     23.7         21.9         19.3         22.1         15.2         37.3         48.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       23.7         21.9         19.3         22.1         15.2         37.3         48.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 half year ended 31 December 2015    12


PRODUCTION AND SALES REPORT

 

          QUARTER ENDED      YEAR TO DATE  
          DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
    DEC
2015
     DEC
2015
    DEC
2014
 

Petroleum (1)

                     

Bass Strait

                     

Crude oil and condensate

   (Mboe)      2,284         1,156         1,707         1,877        1,390         3,267        5,102   

NGL

   (Mboe)      1,512         961         1,548         2,091        1,307         3,398        3,673   

Natural gas

   (bcf)      18.8         18.3         31.9         38.7        23.9         62.6        52.1   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      6.9         5.2         8.6         10.4        6.7         17.1        17.5   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

North West Shelf

                     

Crude oil and condensate

   (Mboe)      1,395         1,355         1,215         1,362        1,423         2,785        2,896   

NGL

   (Mboe)      273         268         198         227        235         462        566   

Natural gas

   (bcf)      33.4         32.8         29.9         33.9        34.9         68.8        70.3   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      7.2         7.1         6.4         7.2        7.5         14.7        15.2   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Stybarrow (2)

                     

Crude oil and condensate

   (Mboe)      248         194         93         (8     —           (8     473   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)        0.2         0.2         0.1         (0.0     —           (0.0     0.5   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Pyrenees

                     

Crude oil and condensate

   (Mboe)      1,901         1,709         1,435         2,096        2,331         4,427        4,010   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      1.9         1.7         1.4         2.1        2.3         4.4        4.0   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Other Australia (3)

                     

Crude oil and condensate

   (Mboe)      11         11         13         13        9         22        28   

Natural gas

   (bcf)      13.0         14.1         16.0         16.6        14.4         31.0        29.4   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      2.2         2.4         2.7         2.8        2.4         5.2        4.9   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Atlantis (4)

                     

Crude oil and condensate

   (Mboe)      3,740         3,645         3,110         3,637        4,257         7,894        7,915   

NGL

   (Mboe)      294         245         209         231        278         509        542   

Natural gas

   (bcf)      2.3         1.7         1.7         1.6        2.0         3.6        4.0   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      4.4         4.2         3.6         4.1        4.9         9.0        9.1   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Mad Dog (4)

                     

Crude oil and condensate

   (Mboe)      877         720         651         588        648         1,236        1,267   

NGL

   (Mboe)      42         37         20         23        41         64        63   

Natural gas

   (bcf)      0.1         0.1         0.1         0.1        0.1         0.2        0.2   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      0.9         0.8         0.7         0.6        0.7         1.3        1.4   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Shenzi (4)

                     

Crude oil and condensate

   (Mboe)      3,502         3,283         3,369         3,277        3,185         6,462        7,032   

NGL

   (Mboe)      260         235         174         236        269         505        531   

Natural gas

   (bcf)      0.8         0.7         0.7         0.7        0.8         1.5        1.6   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      3.9         3.6         3.7         3.6        3.6         7.2        7.8   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Eagle Ford (5)

                     

Crude oil and condensate

   (Mboe)      8,098         10,837         9,363         7,700        7,156         14,856        15,158   

NGL

   (Mboe)      3,638         3,868         4,183         3,799        3,806         7,605        7,059   

Natural gas

   (bcf)      26.3         27.7         26.1         25.8        25.4         51.2        54.8   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      16.1         19.3         17.9         15.8        15.2         31.0        31.4   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Permian (5)

                     

Crude oil and condensate

   (Mboe)      807         856         1,447         1,481        1,354         2,835        1,408   

NGL

   (Mboe)      358         287         420         473        488         961        720   

Natural gas

   (bcf)      2.8         2.1         3.0         3.9        3.4         7.3        5.8   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      1.6         1.5         2.4         2.6        2.4         5.0        3.1   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Haynesville (5) (6)

                     

Crude oil and condensate

   (Mboe)      4         —           —           —          1         1        20   

Natural gas

   (bcf)      43.6         37.8         35.4         36.4        34.7         71.1        89.3   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      7.3         6.3         5.9         6.1        5.8         11.9        14.9   
     

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    13


PRODUCTION AND SALES REPORT

 

         QUARTER ENDED      YEAR TO DATE  
         DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
    DEC
2015
     DEC
2015
     DEC
2014
 

Petroleum (continued) (1)

                     

Fayetteville (5)

                     

Natural gas

   (bcf)     37.6         32.3         31.9         32.1        30.9         63.0         74.0   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     6.3         5.4         5.3         5.4        5.2         10.5         12.3   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Trinidad/Tobago

                     

Crude oil and condensate

   (Mboe)     227         196         562         242        185         427         479   

Natural gas

   (bcf)     7.8         7.2         9.1         7.6        7.4         15.0         16.6   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     1.5         1.4         2.1         1.5        1.4         2.9         3.2   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Other Americas (4) (7)

                     

Crude oil and condensate

   (Mboe)     500         348         348         361        360         721         849   

NGL

   (Mboe)     25         14         11         12        16         28         63   

Natural gas

   (bcf)     0.2         0.2         0.1         0.2        0.2         0.4         0.4   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.6         0.4         0.4         0.4        0.4         0.8         1.0   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

UK

                     

Crude oil and condensate

   (Mboe)     77         64         76         59        74         133         111   

NGL

   (Mboe)     7         7         83         (4     27         23         11   

Natural gas

   (bcf)     1.4         1.1         1.0         1.0        1.0         2.0         2.1   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.3         0.3         0.3         0.2        0.3         0.5         0.5   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Algeria

                     

Crude oil and condensate

   (Mboe)     1,050         975         912         916        922         1,838         2,061   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     1.1         1.0         0.9         0.9        0.9         1.8         2.1   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Pakistan

                     

Crude oil and condensate

   (Mboe)     33         27         25         23        19         42         71   

Natural gas

   (bcf)     6.3         5.4         4.9         4.2        3.7         7.9         12.7   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     1.1         0.9         0.8         0.7        0.6         1.4         2.2   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total petroleum products

                     

Crude oil and condensate

                     

Onshore US

   (Mboe)     8,909         11,693         10,810         9,181        8,511         17,692         16,586   

Conventional

   (Mboe)     15,845         13,683         13,516         14,443        14,803         29,246         32,294   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     24,754         25,376         24,326         23,624        23,314         46,938         48,880   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

NGL

                     

Onshore US

   (Mboe)     3,996         4,155         4,603         4,272        4,294         8,566         7,779   

Conventional

   (Mboe)     2,413         1,767         2,243         2,816        2,173         4,989         5,449   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     6,409         5,922         6,846         7,088        6,467         13,555         13,228   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Natural gas

                     

Onshore US

   (bcf)     110.3         99.9         96.4         98.2        94.4         192.6         223.9   

Conventional

   (bcf)     84.1         81.6         95.4         104.6        88.4         193.0         189.4   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   (bcf)     194.4         181.5         191.8         202.8        182.8         385.6         413.3   
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.
(2) Stybarrow ceased production on 26 June 2015.
(3) Other Australia includes Minerva and Macedon.
(4) Gulf of Mexico volumes are net of royalties.
(5) Onshore US volumes are net of mineral holder royalties.
(6) Haynesville includes North Louisiana Conventional.
(7) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    14


PRODUCTION AND SALES REPORT

 

         QUARTER ENDED     YEAR TO DATE  
         DEC
2014
    MAR
2015
    JUN
2015
    SEP
2015
    DEC
2015
    DEC
2015
    DEC
2014
 

Copper

                

Metals production is payable metal unless otherwise stated.

  

Escondida, Chile (1)

                

Material mined

   (kt)     103,750        91,139        96,337        110,067        109,200        219,267        197,224   

Sulphide ore milled

   (kt)     18,354        21,382        22,909        22,820        18,076        40,896        39,005   

Average copper grade

   (%)     1.45     1.49     1.32     1.00     0.99     1.00     1.32

Production ex mill

   (kt)     215.5        266.3        249.6        169.7        142.8        312.5        421.0   

Production

                

Payable copper

   (kt)     208.8        260.9        247.0        159.6        131.7        291.3        408.2   

Copper cathode (EW)

   (kt)     75.0        77.3        88.8        70.9        89.3        160.2        144.3   

Payable gold concentrate

   (troy oz)     12,710        21,265        25,554        23,805        17,889        41,694        34,690   

Payable silver concentrate

   (troy koz)     958        1,355        1,314        1,181        962        2,143        2,117   

Sales

                

Payable copper

   (kt)     203.2        269.6        243.0        157.6        123.8        281.4        406.5   

Copper cathode (EW)

   (kt)     79.8        64.9        101.4        63.8        101.1        164.9        143.9   

Payable gold concentrate

   (troy oz)     12,710        21,265        25,554        23,805        17,889        41,694        34,690   

Payable silver concentrate

   (troy koz)     958        1,355        1,314        1,181        962        2,143        2,118   

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

       

Pampa Norte, Chile

                

Cerro Colorado

                

Material mined

   (kt)     16,124        15,030        14,211        13,870        14,930        28,800        31,641   

Ore milled

   (kt)     4,446        4,501        4,798        4,703        4,856        9,559        8,635   

Average copper grade

   (%)     0.70     0.68     0.70     0.64     0.82     0.73     0.73

Production

                

Copper cathode (EW)

   (kt)     20.6        21.5        20.4        13.7        18.8        32.5        36.3   

Sales

                

Copper cathode (EW)

   (kt)     21.0        22.0        20.8        13.0        19.7        32.7        41.0   

Spence

                

Material mined

   (kt)     23,422        21,429        21,062        22,922        21,593        44,515        47,660   

Ore milled

   (kt)     4,560        3,783        4,082        4,919        5,146        10,065        8,969   

Average copper grade

   (%)     1.20     1.06     1.24     1.41     1.30     1.35     1.26

Production

                

Copper cathode (EW)

   (kt)     49.0        45.0        37.3        43.1        50.2        93.3        89.1   

Sales

                

Copper cathode (EW)

   (kt)     51.8        45.0        40.6        38.2        56.1        94.3        88.7   

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    15


PRODUCTION AND SALES REPORT

 

         QUARTER ENDED     YEAR TO DATE  
         DEC
2014
    MAR
2015
    JUN
2015
    SEP
2015
    DEC
2015
    DEC
2015
    DEC
2014
 

Copper (continued)

                

Metals production is payable metal unless otherwise stated.

  

Antamina, Peru

                

Material mined (100%)

   (kt)     43,793        49,787        56,944        56,793        52,130        108,923        98,468   

Sulphide ore milled (100%)

   (kt)     13,594        12,880        14,831        14,300        14,184        28,484        25,964   

Average head grades

                

- Copper

   (%)     0.74     0.79     0.74     0.88     0.92     0.90     0.77

- Zinc

   (%)     0.66     0.69     0.56     0.79     0.55     0.67     0.75

Production

                

Payable copper

   (kt)     27.3        26.7        28.0        35.1        37.2        72.3        53.0   

Payable zinc

   (t)     16,271        13,571        15,857        20,597        16,454        37,051        37,007   

Payable silver

   (troy koz)     885        872        1,115        1,766        1,636        3,402        1,839   

Payable lead

   (t)     486        493        448        857        1,024        1,881        1,119   

Payable molybdenum

   (t)     75        151        206        92        232        324        115   

Sales

                

Payable copper

   (kt)     29.8        26.5        26.3        30.8        42.9        73.7        56.1   

Payable zinc

   (t)     21,459        15,545        13,645        18,747        20,423        39,170        34,371   

Payable silver

   (troy koz)     1,026        915        911        1,522        2,048        3,570        1,922   

Payable lead

   (t)     711        461        624        266        1,056        1,322        1,031   

Payable molybdenum

   (t)     90        163        157        156        138        294        140   

Olympic Dam, Australia

                

Material mined (1)

   (kt)     2,667        2,186        1,773        2,357        2,372        4,729        5,359   

Ore milled

   (kt)     2,776        1,477        1,469        2,727        2,767        5,494        4,982   

Average copper grade

   (%)     1.70     1.88     1.97     1.64     2.22     1.93     1.82

Average uranium grade

   (kg/t)     0.52        0.56        0.62        0.60        0.62        0.61        0.56   

Production

                

Copper cathode (ER and EW)

   (kt)     43.0        28.6        13.7        54.9        57.4        112.3        82.2   

Uranium oxide concentrate

   (t)     1,076        607        595        1,161        1,386        2,547        1,942   

Refined gold

   (troy oz)     38,537        26,441        9,438        29,349        39,299        68,648        68,901   

Refined silver

   (troy koz)     243        172        55        246        265        511        497   

Sales

                

Copper cathode (ER and EW)

   (kt)     43.0        30.7        14.5        52.5        57.3        109.8        82.1   

Uranium oxide concentrate

   (t)     1,125        877        818        677        1,013        1,690        1,973   

Refined gold

   (troy oz)     34,938        31,938        9,064        25,598        39,168        64,766        65,645   

Refined silver

   (troy koz)     238        206        61        213        265        478        465   

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

       

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    16


PRODUCTION AND SALES REPORT

 

         QUARTER ENDED      YEAR TO DATE  
         DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
     DEC
2015
     DEC
2015
     DEC
2014
 

Iron Ore

                      

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

  

Pilbara, Australia

                      

Production

                      

Newman

   (kt)     16,012         14,916         16,062         18,006         17,003         35,009         32,719   

Area C Joint Venture

   (kt)     11,314         13,201         12,214         12,163         11,723         23,886         24,579   

Yandi Joint Venture

   (kt)     17,694         16,798         17,452         16,886         15,960         32,846         34,301   

Jimblebar (1)

   (kt)     2,813         4,513         5,462         3,262         4,852         8,114         6,784   

Wheelarra

   (kt)     4,755         5,965         5,159         7,259         5,757         13,016         7,870   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

   (kt)     52,588         55,393         56,349         57,576         55,295         112,871         106,253   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

   (kt)     61,371         64,372         65,330         67,161         64,197         131,358         123,807   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Lump

   (kt)     12,661         12,617         13,234         14,003         13,886         27,889         25,427   

Fines

   (kt)     41,185         42,635         43,430         43,587         40,917         84,504         82,818   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)     53,846         55,252         56,664         57,590         54,803         112,393         108,245   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

   (kt)     62,848         64,201         65,703         67,177         63,625         130,802         126,151   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

       

        

Samarco, Brazil

                      

Production

   (kt)     3,764         3,586         3,737         3,739         1,665         5,404         7,190   

Sales

   (kt)     4,151         2,876         3,627         3,531         2,425         5,956         7,454   

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    17


PRODUCTION AND SALES REPORT

 

          QUARTER ENDED      YEAR TO DATE  
          DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
     DEC
2015
     DEC
2015
     DEC
2014
 

Coal

                       

Coal production is reported on the basis of saleable product.

                       

Queensland Coal

                       

Production (1)

                       

BMA

                       

Blackwater

   (kt)      1,775         1,569         1,873         1,803         1,861         3,664         3,552   

Goonyella

   (kt)      2,350         1,951         2,065         1,868         1,941         3,809         4,494   

Peak Downs

   (kt)      1,235         1,263         1,469         1,164         1,323         2,487         2,379   

Saraji

   (kt)      1,257         1,033         1,194         1,037         1,000         2,037         2,279   

Gregory Joint Venture

   (kt)      994         607         885         707         609         1,316         1,802   

Daunia

   (kt)      617         489         649         698         616         1,314         1,245   

Caval Ridge

   (kt)      781         690         888         810         857         1,667         1,486   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

   (kt)      9,009         7,602         9,023         8,087         8,207         16,294         17,237   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Billiton Mitsui Coal (2)

                       

South Walker Creek

   (kt)      1,236         1,282         1,384         1,511         1,275         2,786         2,627   

Poitrel

   (kt)      892         775         986         836         916         1,752         1,705   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Billiton Mitsui Coal

   (kt)      2,128         2,057         2,370         2,347         2,191         4,538         4,332   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

   (kt)      11,137         9,659         11,393         10,434         10,398         20,832         21,569   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Coking coal

   (kt)      8,379         7,118         7,616         7,015         7,642         14,657         15,685   

Weak coking coal

   (kt)      2,670         2,720         2,850         3,246         2,695         5,941         5,529   

Thermal coal

   (kt)      171         182         375         86         290         376         214   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      11,220         10,020         10,841         10,347         10,627         20,974         21,428   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)    Production figures include some thermal coal.

       

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

       

Haju, Indonesia (1)

                       

Production

   (kt)      —           —           —           15         87         102         —     

(1)    Shown on 100% basis. BHP Billiton interest in saleable production is 75%.

       

New Mexico, USA

                       

Production

                       

Navajo Coal (1)

   (kt)      1,064         1,156         1,395         1,270         1,403         2,673         2,307   

San Juan Coal

   (kt)      1,448         1,091         1,179         1,406         1,229         2,635         2,895   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      2,512         2,247         2,574         2,676         2,632         5,308         5,202   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales thermal coal - local utility

        2,592         2,177         2,539         2,671         2,661         5,332         5,315   

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

        

NSW Energy Coal, Australia

                       

Production

   (kt)      4,608         5,252         5,086         4,644         4,277         8,921         9,360   

Sales

                       

Export thermal coal

   (kt)      4,625         4,897         4,550         4,130         5,081         9,211         9,412   

Inland thermal coal

   (kt)      228         337         286         253         229         482         599   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      4,853         5,234         4,836         4,383         5,310         9,693         10,011   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                       

Production

   (kt)      3,003         2,975         2,944         2,527         2,628         5,155         5,372   

Sales thermal coal - export

   (kt)      2,732         3,005         2,766         2,853         2,565         5,418         5,809   

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    18


PRODUCTION AND SALES REPORT

 

         QUARTER ENDED      YEAR TO DATE  
         DEC
2014
     MAR
2015
     JUN
2015
     SEP
2015
     DEC
2015
     DEC
2015
     DEC
2014
 

Other

                      

Nickel production is reported on the basis of saleable product

  

Nickel West, Australia

                      

Production

                      

Nickel contained in concentrate

   (kt)     1.7         1.9         1.5         0.7         0.2         0.9         3.9   

Nickel contained in finished matte

   (kt)     5.5         6.1         3.9         5.0         2.6         7.6         14.6   

Nickel metal

   (kt)     16.5         13.9         13.9         16.4         12.4         28.8         30.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel production

   (kt)     23.7         21.9         19.3         22.1         15.2         37.3         48.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Nickel contained in concentrate

   (kt)     1.6         2.0         1.6         0.7         0.2         0.9         3.7   

Nickel contained in finished matte

   (kt)     7.4         6.4         4.4         4.2         3.7         7.9         14.0   

Nickel metal

   (kt)     17.5         13.5         15.7         15.6         12.1         27.7         29.4   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel sales

   (kt)     26.5         21.9         21.7         20.5         16.0         36.5         47.1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the half year ended 31 December 2015    19


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    BHP Billiton Limited and BHP Billiton Plc
Date: January 20, 2016   By:  

/s/ Rachel Agnew

  Name:   Rachel Agnew
  Title:   Company Secretary