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

April 26, 2017

 

 

 

BHP BILLITON LIMITED

(ABN 49 004 028 077)

  

BHP BILLITON PLC

(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:  ☒ 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    ☒ 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    26 April 2017
Release Number    15/17

BHP BILLITON OPERATIONAL REVIEW

FOR THE NINE MONTHS ENDED 31 MARCH 2017

 

    Record production for the nine month period achieved at Western Australia Iron Ore (WAIO) and five Queensland Coal mines.

 

    Following 44 days of industrial action at Escondida, copper production guidance reduced to between 1.33 and 1.36 Mt. The commissioning of the Escondida Water Supply project and the planned ramp-up of the Los Colorados Extension project are now expected in the September 2017 quarter.

 

    As a result of damage to third party rail infrastructure caused by Cyclone Debbie, metallurgical coal production guidance reduced to between 39 and 41 Mt.

 

    Full year production guidance maintained for petroleum and energy coal. WAIO production guidance narrowed to between 268 and 272 Mt (100% basis).

 

    At Queensland Coal, the high-return Caval Ridge Southern Circuit latent capacity project was approved and will enable full utilisation of the 10 Mtpa wash-plant with ramp-up early in the 2019 financial year.

 

    In Onshore US, development activity is increasing with the approval of two additional rigs in the Haynesville, with gas prices hedged to deliver attractive rates of return.

 

    Divestment of non-core Onshore US acreage is progressing, with the sales process well advanced for up to 50,000 acres of the southern Hawkville. Our Fayetteville field is currently under review and we are considering all options including divestment.

 

    The Mad Dog Phase 2 Conventional oil development project was approved and a contract was executed with PEMEX Exploration and Production Mexico (Pemex) following the winning bid to acquire a 60% participating interest in, and operatorship of, Trion in Mexico.

 

    Commercial evaluation of the LeClerc gas discovery in Trinidad and Tobago is ongoing. Drilling of the Wildling appraisal well in the Gulf of Mexico is continuing, which will assist with establishing the scale of the Caicos oil discovery.

 

Production

   Mar 2017
YTD
    

vs

     Mar 2016
YTD
     

Petroleum (MMboe)

     157           (15 %)    Deferral of development activity in Onshore US for value and natural field decline in Conventional assets.

Copper (kt)

     939           (20 %)    Reduced volumes at Escondida following 44 days of industrial action.

Iron ore(1) (Mt)

     171           3   Record WAIO volumes benefitted from the additional capacity at Jimblebar and productivity improvements.

Metallurgical coal(1) (Mt)

     31           2   Record production at five Queensland Coal mines partially offset by the impacts from Cyclone Debbie.

Energy coal(1) (Mt)

     21           0   Strong performance at Cerrejón offset by lower NSWEC production.

 

 

   1


Operational Review for the nine months ended 31 March 2017

BHP Billiton Chief Executive Officer, Andrew Mackenzie said: “Everything we do at BHP Billiton is designed to create value for all of our shareholders, today and for the long term.

We have fundamentally restructured BHP Billiton to increase returns. The demerger of South32 and US$7 billion of divestments has reduced the number of assets in the portfolio by over a third and our new organisational structure has removed layers of management. Our more focused portfolio has enabled us to lower unit costs by over 40 per cent. And we have improved our approach to capital management which has strengthened the balance sheet and increased the discipline with which we invest and return cash to our shareholders.

But we have more to do and we are not standing still. A simpler portfolio allows us to improve safety and operational performance more quickly with maintenance, project and geoscience centres of excellence spreading petroleum and minerals expertise across the group. We have significantly reduced the capital intensity of our growth options and changed our approach in shale to improve returns and lower risks on new investments. Our more focused approach in exploration is delivering results with three discoveries over the last 12 months and our new technology function will unlock further value.

This quarter we have added value to the portfolio across each of our six focus areas. We continued our targeted high-return investment in shale with the approval of two more rigs in the Haynesville supported by our hedging strategy. Plans to monetise a portion of our non-core acreage for value, such as parts of the southern Hawkville, are underway. In the Eagle Ford, we are increasing recoveries by testing staggered wells and larger frac jobs. In the Permian, we are exploring opportunities to consolidate and optimise our acreage position so that we can drill longer lateral wells to lower costs. We have approved the Mad Dog Phase 2 project and investment in Caval Ridge to enable full utilisation of its 10 Mtpa wash-plant.”

Summary

Operational performance

Production for the nine months and quarter ended March 2017, and guidance for the 2017 financial year, are summarised in the table below.

 

Production

   Mar 2017
YTD
     Mar 2017
Qtr
     Mar YTD17
vs
Mar YTD16
    Mar Q17
vs
Mar Q16
    Mar Q17
vs
Dec Q16
    Previous
FY17
guidance
     Current
FY17
guidance
 

Petroleum (MMboe)

     156.5        50.6        (15 %)      (15 %)      (2 %)      200 - 210        200 - 210  

Onshore US (MMboe)

     60.5        20.5        (29 %)      (25 %)      5     77 - 83        77 -  83  

Conventional (MMboe)

     96.0        30.1        (2 %)      (6 %)      (6 %)      123 - 127        123 - 127  

Copper (kt)

     939        227        (20 %)      (44 %)      (36 %)      1,620        1,330 - 1,360  

Escondida (kt)

     546        95        (23 %)      (63 %)      (60 %)      1,070        780 - 800  

Other copper(i) (kt)

     393        132        (14 %)      (9 %)      7     550 - 560        550 - 560  

Iron ore(ii) (Mt)

     171        54        3     1     (11 %)      228 - 237        231 - 234  

WAIO (100% basis) (Mt)

     199        62        3     1     (11 %)      265 - 275        268 - 272  

Metallurgical coal(ii) (Mt)

     31        10        2     2     (5 %)      44        39 - 41  

Energy coal(ii) (Mt)

     21        7        0     9     12     30        30  

 

(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina. Olympic Dam guidance for the 2017 financial year expected to be 160 to 170 kt as revised in the December 2016 quarter.
(ii) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.

Progress on our roadmap to grow shareholder value and returns

During the March 2017 quarter, we continued to make significant progress across our broad suite of opportunities to grow shareholder value and returns:

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    2


    Productivity has continued to improve across our operations and we see significant potential for further gains. For example in coal, record production was achieved at five Queensland mines supported by increased wash- plant utilisation, while truck utilisation also improved at New South Wales Energy Coal.

 

    We approved the high-return Caval Ridge Southern Circuit project in March 2017 and the Los Colorados Extension project is expected to ramp-up in the September 2017 quarter. Spence is now operating at 200 ktpa following the completion of the Spence Recovery Optimisation project in December 2016.

 

    We are increasing Onshore US development activity with the approval of two additional rigs in the Haynesville. Further monetisation of the portfolio for value is being pursued with the divestment of non-core Onshore US acreage at southern Hawkville advancing. The Fayetteville field is currently under review and we are considering all options including divestment.

 

    The Board approved the Mad Dog Phase 2 project in the deepwater Gulf of Mexico in February 2017. We also executed the contract with Pemex to acquire a 60 per cent participating interest in, and operatorship of, the Trion discovery in Mexico in March 2017.

 

    In Petroleum exploration, following positive drilling results at the LeClerc well in Trinidad and Tobago, commercial evaluation of the gas discovery is well advanced. Drilling of the Wildling appraisal well in the Gulf of Mexico is continuing with results now expected in the September 2017 quarter, which will assist with establishing the scale of the Caicos oil discovery.

 

    In technology, replication of the WAIO Integrated Remote Operations Centre in Brisbane for our Australian coal operations was completed in February 2017 and will support lower operating costs.

Major development projects

On 9 February 2017, the Board of BHP Billiton approved an investment of US$2.2 billion (BHP Billiton share) for the development of the Mad Dog Phase 2 project in the deepwater Green Canyon area of the Gulf of Mexico. The Bass Strait Longford Gas Conditioning Plant was fully commissioned during the March 2017 quarter and is now running at design capacity, enabling full production from the Turrum and Kipper fields. The commissioning of the Escondida Water Supply project is now expected in the September 2017 quarter.

At the end of the March 2017 quarter, BHP Billiton had three major projects under development in Petroleum and Potash, with a combined budget of US$5.1 billion over the life of the projects.

Corporate update

On 23 March 2017, BHP Billiton successfully concluded its US$2.5 billion bond repurchase plan. The repurchase targeted short dated US dollar bonds maturing before 2023 and was funded by BHP Billiton’s strong cash position. The early repayment of the bonds has extended BHP Billiton’s average debt maturity profile and enhanced BHP Billiton’s capital structure.

During the March 2017 quarter, the Risk and Audit Committee commenced a tender process for the appointment of the external auditor. The process is scheduled to be completed in the September 2017 quarter, with the chosen firm to be appointed for the financial year beginning 1 July 2019. The planned commencement date is one year later than previously intended in order to provide adequate time for the chosen firm to manage independence requirements.

On 10 April 2017, BHP Billiton received a letter from Elliott Associates, L.P. and Elliott International, L.P. (Elliott). The letter outlined a proposal for changes to BHP Billiton Group’s Dual Listed Company (DLC) structure, portfolio and capital management. Having reviewed the elements of Elliott’s proposals, the Board has concluded that the costs and associated disadvantages of Elliott’s proposal would significantly outweigh the potential benefits and that Elliott materially overstates the potential value that could be created by its proposals. We have outlined our clear roadmap to maximise the value of our assets. We continue to make strong progress across our six focus areas for value creation, underpinned by our Capital Allocation Framework which balances the need to invest in our business, create the strength and flexibility to take advantage of opportunities as they arise and to efficiently return capital to our shareholders. We are confident that our strategy is in the best long-term interests of all shareholders.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    3


Petroleum

Production

 

    

Mar 2017

YTD

    

Mar 2017

Qtr

    

Mar YTD17

vs

Mar YTD16

   

Mar Q17

vs

Mar Q16

   

Mar Q17

vs

Dec Q16

 

Crude oil, condensate and natural gas liquids (MMboe)

     73.0        24.8        (19 %)      (15 %)      4

Natural gas (bcf)

     501        155        (12 %)      (15 %)      (6 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production (MMboe)

     156.5        50.6        (15 %)      (15 %)      (2 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production – Total petroleum production for the nine months ended March 2017 decreased by 15 per cent to 156.5 MMboe. Guidance for the 2017 financial year remains unchanged at between 200 and 210 MMboe, comprising Conventional volumes between 123 and 127 MMboe and Onshore US volumes between 77 and 83 MMboe.

Crude oil, condensate and natural gas liquids – Production for the nine months ended March 2017 decreased by 19 per cent to 73.0 MMboe.

Onshore US liquids volumes decreased by 33 per cent to 25.9 MMboe as a result of a reduction in activity in the Black Hawk for value, and natural field decline at Hawkville, which more than offset increased liquids production from the Permian.

Conventional liquids volumes decreased by eight per cent to 47.1 MMboe, as an additional infill well at Mad Dog and higher production at Algeria and North West Shelf partially offset planned maintenance at Atlantis and natural field decline across the portfolio.

Natural gas – Production for the nine months ended March 2017 declined by 12 per cent to 501 bcf.

The decline primarily reflects lower Onshore US gas volumes as a result of the value driven decisions to defer development activity and the divestment of our Pakistan gas business in December 2015. This was partially offset by higher demand at Bass Strait and Macedon, and increased LNG volumes at North West Shelf.

Projects

 

Project and ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

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.    On schedule and budget. The overall project is 42% complete.

Mad Dog Phase 2

(US Gulf of Mexico)

23.9% (non-operator)

     2,154        CY22      New floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil per day.    Project approved by all joint venture partners.

The Bass Strait Longford Gas Conditioning Plant was fully commissioned during the March 2017 quarter and is now running at design capacity, enabling full production from the Turrum and Kipper fields.

During the March 2017 quarter, the Board of BHP Billiton approved the development of the Mad Dog Phase 2 project in the deepwater Green Canyon area of the Gulf of Mexico. The project includes a new floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil per day at an estimated cost of US$9 billion (US$2.2 billion BHP Billiton share). This project has now been sanctioned by all joint venture partners.

Petroleum capital expenditure guidance of approximately US$1.4 billion (excluding US$0.2 billion from capital creditor movements) for the 2017 financial year remains unchanged. This includes Conventional capital expenditure of US$0.8 billion which is focused on life extension projects at Bass Strait and North West Shelf, along with commitments related to the recently approved Mad Dog Phase 2 project. Onshore US capital expenditure is expected to be US$0.6 billion, with development activity tailored to market conditions.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    4


Onshore US development activity

Onshore US drilling and development expenditure for the nine months ended March 2017 was approximately US$440 million. During the March 2017 quarter, our operated rig count remained at three, with the second approved rig in the Haynesville now expected to commence operation early in the June 2017 quarter.

Development activity is increasing with the approval of two further rigs in the Haynesville in this quarter, with gas prices hedged and supply contracts secured to deliver attractive rates of return. Operations are expected to commence in the September 2017 quarter.

Accelerated completion of drilled and uncompleted inventory in the Black Hawk has led to higher oil volumes in the March 2017 quarter. Tests continue on the potential for staggered wells to increase recovery, larger frac jobs to improve productivity and the potential of the Upper Eagle Ford horizon. We expect early results to be known during the September 2017 quarter. Planning for enhanced oil recovery trials is also ongoing to drive the improvement of liquids recovery in the Eagle Ford.

The optimisation of Permian acreage has progressed through trades and swaps in the Delaware Basin. Further potential of our Permian acreage is being evaluated through a series of completions trials.

We are working with joint venture partners in the Fayetteville to assess the potential of the Moorefield horizon.

 

March 2017 YTD

(March 2016 YTD)

        Liquids focused areas      Gas focused areas         
      Eagle Ford      Permian      Haynesville      Fayetteville      Total  

Capital expenditure(i)

   US$ billion      0.2 (0.7)        0.2 (0.3)        0.0 (0.0)        0.0 (0.0)        0.4 (1.1)  

Rig allocation

   At period end      1 (3)        1 (2)        1 (0)        0 (0)        3 (5)  

Net wells drilled and completed(ii)

   Period total      44 (88)        17 (25)        2 (5)        2 (10)        65 (128)  

Net productive wells

   At period end      963 (926)        124 (100)        392 (411)        1,045 (1,086)        2,524 (2,523)  

 

(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.

We have initiated the divestment of non-core acreage for value. The sale of up to 50,000 acres in the southern Hawkville is well advanced, with bids received and under evaluation. Our Fayetteville acreage is currently under review and we are considering all options including divestment.

Since our entry into Onshore US, we have made significant advances in our operating capability and capital productivity which underpin the development of these fields at the optimal pace as prices recover. Having initially invested for growth, we have learnt from experience and our value over volume strategy, combined with strict adherence to our capital allocation framework and use of a hedging strategy to mitigate downside risks, ensures that every decision is focused on generating shareholder value.

Petroleum exploration

Exploration and appraisal wells drilled during the March 2017 quarter are summarised below.

 

Well

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

Wildling-1

   Gulf of Mexico
GC520
   Oil    100%
(Operator)
   8 January 2017      1,230 m        5,950 m        Plugged and abandoned  

The Wildling-1 well encountered mechanical difficulty and was plugged and abandoned in April 2017. The Wildling-2 well was spud on 15 April 2017 and drilling is in progress, with results expected in the September 2017 quarter. The Scimitar exploration well is expected to be spud in the September 2017 quarter.

On 3 March 2017, BHP Billiton executed a contract with Pemex to acquire a 60 per cent participating interest in, and operatorship of, blocks AE-0092 and AE-0093, containing the Trion discovered resource, in Mexico. The agreement includes a commitment to deliver a Minimum Work Program consisting of one appraisal well, one exploration well and the acquisition of additional seismic data.

In Trinidad and Tobago, appraisal work continues following Phase 1 of the deepwater drilling campaign to assess the potential commercialisation of the gas discovery at LeClerc and to prepare for deepwater oil exploration in Phase 2, which is expected to commence in the second half of the 2018 financial year.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    5


In the US Gulf of Mexico, BHP Billiton was the apparent high bidder on two leases adjacent to the Scimitar prospect (GC260 and GC304) in the Central Gulf of Mexico Lease Sale 247. BHP Billiton (28.32 per cent equity interest), with BP (Operator), was the apparent high bidder on two leases adjacent to the Mad Dog field (GC 738 and GC870). The award of the leases remain subject to regulatory approval.

In Australia, seismic work continued in the Exmouth sub-basin following regulatory approval of the Good Standing Agreement in relation to the WA-475-P permit. The seismic survey is expected to be completed during May 2017.

Petroleum exploration expenditure for the nine months ended March 2017 was US$590 million, of which US$263 million was expensed. Guidance of US$820 million remains unchanged for the 2017 financial year.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    6


Copper

Production

 

     Mar 2017
YTD
     Mar 2017
Qtr
     Mar YTD17
vs
Mar YTD16
    Mar Q17
vs
Mar Q16
    Mar Q17
vs
Dec Q16
 

Copper (kt)

     939        227        (20 %)      (44 %)      (36 %) 

Zinc (t)

     58,426        20,653        19     73     (8 %) 

Uranium oxide concentrate (t)

     2,924        948        (16 %)      (1 %)      (11 %) 

Copper – Total copper production for the nine months ended March 2017 decreased by 20 per cent to 939 kt. Guidance for the 2017 financial year has been reduced to between 1,330 and 1,360 kt following 44 days of industrial action at Escondida.

Escondida copper production for the nine months ended March 2017 decreased by 23 per cent to 546 kt due to industrial action. The strike ended on 24 March 2017 when Union N°1 informed BHP Billiton that they would exercise their rights under Article 369 of the Labour Code to extend the existing collective agreement for 18 months. Operations are expected to return to full capacity during April 2017, with a focus on safety during the transition period. Escondida copper production of between 780 and 800 kt is now expected for the 2017 financial year. The commissioning of the Escondida Water Supply project and the planned ramp-up of the Los Colorados Extension project are now expected in the September 2017 quarter, as a result of the industrial action and delayed mobilisation.

Pampa Norte copper production for the nine months ended March 2017 decreased by two per cent to 182 kt. Production increased by 23 per cent from the December 2016 quarter with Spence operating at a 200 ktpa rate following the completion of the Spence Recovery Optimisation project and the restart of the Cerro Colorado Ore Handling Plant 2 in November 2016. Pampa Norte copper production guidance for the 2017 financial year remains unchanged and is expected to be higher than the prior year.

Olympic Dam copper production for the nine months ended March 2017 decreased by 29 per cent to 115 kt following the state-wide power outage during September and October 2016 and unplanned maintenance at the refinery during December 2016 and January 2017. Guidance for the 2017 financial year remains unchanged at approximately 160 to 170 kt. A major smelter maintenance campaign is planned for the September 2017 quarter.

Antamina copper production for the nine months ended March 2017 decreased by 12 per cent to 95 kt as record material mined was more than offset by lower copper grades and the shutdown of the concentrate pipeline due to the impact of adverse weather conditions. Guidance for the 2017 financial year remains unchanged at 130 kt. Zinc production for the nine months ended March 2017 increased by 19 per cent to 58 kt, with guidance for the 2017 financial year unchanged at 90 kt.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    7


Iron Ore

Production

 

     Mar 2017
YTD
     Mar 2017
Qtr
     Mar YTD17
vs
Mar YTD16
    Mar Q17
vs
Mar Q16
    Mar Q17
vs
Dec Q16
 

Iron ore(i) (kt)

     171,211        53,575        3     1     (11 %) 

 

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

Iron ore – Total iron ore production for the nine months ended March 2017 increased by three per cent to a record 171 Mt, or 199 Mt on a 100 per cent basis. Guidance for the 2017 financial year has been narrowed to between 231 and 234 Mt, or between 268 and 272 Mt on a 100 per cent basis.

WAIO production for the nine months ended March 2017 increased as a result of the successful completion of commissioning of a new primary crusher and additional conveying capacity at Jimblebar, ongoing progress on the rail renewal and maintenance program and productivity improvements. This was partially offset by wet weather impacts in the March 2017 quarter. The rail renewal and maintenance program is expected to be completed in the June 2017 quarter, in line with the earlier completion date highlighted previously.

On 10 March 2017, BHP Billiton lodged a submission with the Department of Environment Regulation to increase its export licence from 270 Mtpa to 275 Mtpa. BHP Billiton will continue to work with the authorities in relation to the necessary permits to enable an increase in system capacity to 290 Mtpa in the 2019 financial year.

Our Yandi mine is currently operating at 80 Mtpa but will be depleted over the next five to 10 years. We are looking at options to replace this production and the low-capital intensive development of South Flank is the preferred long-term solution, subject to Board approval being obtained. The investment case for using this high-grade deposit for replacement tonnes is strong, given our ability to leverage existing infrastructure at the Mining Area C operation.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. During the March 2017 quarter, 35 kt of pellet feed sales were finalised.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    8


Coal

Production

 

     Mar 2017
YTD
     Mar 2017
Qtr
     Mar YTD17
vs
Mar YTD16
    Mar Q17
vs
Mar Q16
    Mar Q17
vs
Dec Q16
 

Metallurgical coal(i) (kt)

     31,276        10,134        2     2     (5 %) 

Energy coal(ii) (kt)

     20,949        7,418        0     9     12

 

(i) Represents Queensland Coal. Excludes production from Haju following the divestment of IndoMet Coal (2017 financial year: 129 kt).
(ii) Excludes production from New Mexico Coal following divestments (2017 financial year: 451 kt).

Metallurgical coal – Metallurgical coal production for the nine months ended March 2017 increased by two per cent to 31 Mt. Guidance for the 2017 financial year has been reduced to between 39 and 41 Mt as a result of damage caused by Cyclone Debbie to the network infrastructure of rail track provider Aurizon.

At Queensland Coal, record production was achieved at five mines, underpinned by improved stripping and mining performance, higher yields at Caval Ridge and Saraji, and increased wash-plant utilisation. This was partially offset by a planned longwall move at Broadmeadow and reduced rail capacity as a result of damage caused by Cyclone Debbie.

BHP Billiton approved the US$204 million (100 per cent basis) Caval Ridge Southern Circuit project in March 2017. The project, which includes an 11 km conveyor belt from Peak Downs to Caval Ridge, will enable full utilisation of the 10 Mtpa Caval Ridge wash-plant. Production is expected to ramp-up early in the 2019 financial year.

Energy coal – Energy coal production for the nine months ended March 2017 remained broadly in line at 21 Mt. Guidance for the 2017 financial year remains unchanged at 30 Mt.

Truck utilisation at New South Wales Energy Coal improved, however production declined five per cent as higher drawdown of inventories benefitted the March 2016 period. This was offset by a nine per cent increase in volumes at Cerrejón compared to the nine months ended March 2016 which was constrained by drought conditions.

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    9


Other

Nickel production

 

     Mar 2017
YTD
     Mar 2017
Qtr
     Mar YTD17
vs
Mar YTD16
    Mar Q17
vs
Mar Q16
    Mar Q17
vs
Dec Q16
 

Nickel (kt)

     59.9        19.0        5     (5 %)      (14 %) 

Nickel – Nickel West production for the nine months ended March 2017 increased by five per cent to 59.9 kt as a result of ongoing debottlenecking activities. Nickel production guidance for the 2017 financial year remains unchanged and is expected to increase by approximately 10 per cent from the prior year.

Potash project

 

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 67% complete and within the approved budget. Shaft excavation is progressing.

Minerals exploration

Minerals exploration expenditure for the nine months ended March 2017 was US$110 million, of which US$110 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru, Canada, South Australia and the South-West United States.

 

 

Variance analysis relates to the relative performance of BHP Billiton and/or its operations during the nine months ended March 2017 compared with the nine months ended March 2016, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis.

The following footnotes apply to this Operational Review:

 

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

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

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    10


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

On 21 September 2016, BHP Billiton filed its 2016 Form 20-F Annual Report with the US Securities and Exchange Commission. Shareholders are advised that the Form 20-F can be accessed from the following web site address: http://www.bhpbilliton.com/media-and-insights/reports-and-presentations/2016/09/2016-annual-reporting-suite.

Shareholders may receive a hard copy of the company’s complete audited financial statements free of charge upon request by telephoning Citibank Shareholder Services (+1 781) 575 4555 (outside US) or +1 877 248 4237 (+1 877 CITIADR) (toll free within US).

 

Media Relations

 

Australia and Asia

 

Gabrielle Notley

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Matthew Martyn-Jones

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Email: Matthew.Martyn-Jones@bhpbilliton.com

 

Paul Hitchins

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Email: Fiona.Hadley@bhpbilliton.com

 

Amanda Saunders

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Email: Amanda.Saunders@bhpbilliton.com

 

Kester Hubbard

Tel: +61 7 3227 5671 Mobile: +61 408 727 261

Email: Kester.Hubbard@bhpbilliton.com

 

United Kingdom and South Africa

 

Neil Burrows

Tel: +44 20 7802 7484 Mobile: +44 7786 661 683

Email: Neil.Burrows@bhpbilliton.com

 

North America

 

Bronwyn Wilkinson

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Email: Bronwyn.Wilkinson@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

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Email: Andrew.Gunn@bhpbilliton.com

 

United Kingdom and South Africa

 

Rob Clifford

Tel: +44 20 7802 4131 Mobile: +44 7788 308 844

Email: Rob.Clifford@bhpbilliton.com

 

Elisa Morniroli

Tel: +44 20 7802 7611 Mobile: +44 7825 926 646

Email: Elisa.Morniroli@bhpbilliton.com

 

Americas

 

James Wear

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Email: James.Wear@bhpbilliton.com

 

Cristian Coloma

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Email: Cristian.CA.Coloma@bhpbilliton.com

 

BHP Billiton Limited ABN 49 004 028 077

LEI WZE1WSENV6JSZFK0JC28

Registered in Australia

Registered Office: Level 18, 171 Collins Street

Melbourne Victoria 3000 Australia

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

  

BHP Billiton Plc Registration number 3196209

LEI 549300C116EOWV835768

Registered in England and Wales

Registered Office: Neathouse Place

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Tel +44 20 7802 4000 Fax +44 20 7802 4111

Members of the BHP Billiton Group which is

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BHP Billiton Operational Review for the nine months ended 31 March 2017    11


Production summary

 

 

           Quarter ended      Year to date  
    

BHP Billiton

interest

    Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Petroleum (1)

                      

Petroleum

                      

Crude oil, condensate and NGL (Mboe)

                      

Onshore US

       12,454        9,469        8,288        8,143        9,439        25,870        38,712  

Conventional

       16,727        16,896        15,959        15,768        15,369        47,096        50,962  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       29,181        26,365        24,247        23,911        24,808        72,966        89,674  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas (bcf)

                      

Onshore US

       89.9        82.0        73.9        67.8        66.1        207.8        282.5  

Conventional

       91.5        95.7        107.8        97.1        88.4        293.3        284.5  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       181.4        177.7        181.7        164.9        154.5        501.1        567.0  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum production (MMboe)

       59.4        56.0        54.5        51.4        50.6        156.5        184.2  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     174.9        182.7        147.0        162.6        67.6        377.2        466.2  

Antamina

     33.8     35.4        38.7        34.1        32.0        29.2        95.3        107.7  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       210.3        221.4        181.1        194.6        96.8        472.5        573.9  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     84.8        85.3        70.5        71.5        27.2        169.2        245.0  

Pampa Norte (4)

     100     59.8        65.8        62.1        53.8        66.1        182.0        185.6  

Olympic Dam

     100     49.8        40.7        40.9        37.2        36.8        114.9        162.1  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       194.4        191.8        173.5        162.5        130.1        466.1        592.7  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper (kt)

       404.7        413.2        354.6        357.1        226.9        938.6        1,166.6  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     1,193        645        1,146        1,220        1,308        3,674        3,074  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,193        645        1,146        1,220        1,308        3,674        3,074  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     11,913        6,474        15,367        22,406        20,653        58,426        48,964  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       11,913        6,474        15,367        22,406        20,653        58,426        48,964  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     31,408        35,894        27,561        37,784        11,572        76,917        73,102  

Olympic Dam (refined gold)

     100     29,028        20,010        24,366        29,651        21,941        75,958        97,676  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       60,436        55,904        51,927        67,435        33,513        152,875        170,778  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     1,544        1,874        1,229        1,323        540        3,092        3,687  

Antamina

     33.8     1,751        1,558        1,345        1,446        1,301        4,092        5,153  

Olympic Dam (refined silver)

     100     174        232        163        188        174        525        685  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       3,469        3,664        2,737        2,957        2,015        7,709        9,525  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     961        876        916        1,060        948        2,924        3,487  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       961        876        916        1,060        948        2,924        3,487  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     227        562        561        225        30        816        551  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       227        562        561        225        30        816        551  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    12


Production summary

 

           Quarter ended      Year to date  
    

BHP Billiton

interest

    Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     15,817        15,115        18,008        17,751        16,283        52,042        50,826  

Area C Joint Venture

     85     11,002        11,911        12,384        12,179        11,165        35,728        34,888  

Yandi Joint Venture

     85     16,204        18,325        15,729        17,555        14,656        47,940        49,050  

Jimblebar (6)

     85     5,472        5,304        6,057        5,178        4,824        16,059        13,586  

Wheelarra

     85     4,562        4,971        5,409        7,386        6,647        19,442        17,578  

Samarco

     50     —          —          —          —          —          —          5,404  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       53,057        55,626        57,587        60,049        53,575        171,211        171,332  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     7,894        9,225        8,384        8,684        7,996        25,064        24,188  

BHP Billiton Mitsui Coal (8)

     80     2,015        2,345        2,145        1,929        2,138        6,212        6,553  

Haju (9)

     75     167        260        102        27        —          129        269  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,076        11,830        10,631        10,640        10,134        31,405        31,010  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

USA

     100     1,112        632        451        —          —          451        6,420  

Australia

     100     4,189        3,991        3,952        3,851        4,662        12,465        13,110  

Colombia

     33.3     2,610        2,329        2,928        2,800        2,756        8,484        7,765  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       7,911        6,952        7,331        6,651        7,418        21,400        27,295  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West

     100     20.0        23.4        18.8        22.1        19.0        59.9        57.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       20.0        23.4        18.8        22.1        19.0        59.9        57.3  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP Billiton interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP Billiton interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP Billiton interest in saleable production is 80%.
(9) Shown on a 100% basis. BHP Billiton interest in saleable production is 75%.

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

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    13


Production and sales report

 

 

          Quarter ended      Year to date  
          Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Petroleum (1)

                       

Bass Strait

                       

Crude oil and condensate

   (Mboe)      1,813        1,745        1,922        1,770        1,355        5,047        5,080  

NGL

   (Mboe)      1,455        1,831        2,102        1,460        1,236        4,798        4,853  

Natural gas

   (bcf)      30.3        38.1        41.9        31.3        28.7        101.9        92.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      8.3        9.9        11.0        8.4        7.4        26.8        25.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

North West Shelf

                       

Crude oil and condensate

   (Mboe)      1,124        925        1,486        1,468        1,239        4,193        3,909  

NGL

   (Mboe)      259        241        292        263        200        755        721  

Natural gas

   (bcf)      33.8        27.6        38.7        36.9        32.2        107.8        102.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      7.0        5.8        8.2        7.9        6.8        22.9        21.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pyrenees

                       

Crude oil and condensate

   (Mboe)      2,093        2,097        1,676        1,726        1,509        4,911        6,520  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.1        2.1        1.7        1.7        1.5        4.9        6.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Australia (2)

                       

Crude oil and condensate

   (Mboe)      8        9        10        8        8        26        30  

Natural gas

   (bcf)      16.2        17.2        17.5        17.1        15.2        49.8        47.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.7        2.9        2.9        2.9        2.5        8.3        7.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Atlantis (3)

                       

Crude oil and condensate

   (Mboe)      4,056        4,058        3,054        3,263        3,881        10,198        11,950  

NGL

   (Mboe)      270        269        208        207        295        710        779  

Natural gas

   (bcf)      1.9        1.9        1.5        1.6        2.1        5.2        5.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      4.6        4.6        3.5        3.7        4.5        11.8        13.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mad Dog (3)

                       

Crude oil and condensate

   (Mboe)      880        1,134        950        1,170        1,185        3,305        2,116  

NGL

   (Mboe)      41        52        36        52        59        147        105  

Natural gas

   (bcf)      0.1        0.2        0.1        0.2        0.2        0.5        0.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.9        1.2        1.0        1.3        1.3        3.5        2.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Shenzi (3)

                       

Crude oil and condensate

   (Mboe)      3,094        2,813        2,632        2,692        2,675        7,999        9,556  

NGL

   (Mboe)      206        192        94        131        161        386        711  

Natural gas

   (bcf)      0.6        0.6        0.5        0.5        0.5        1.5        2.1  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      3.4        3.1        2.8        2.9        2.9        8.6        10.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Eagle Ford (4)

                       

Crude oil and condensate

   (Mboe)      7,018        4,949        3,871        4,008        5,451        13,330        21,874  

NGL

   (Mboe)      3,649        2,717        2,268        2,159        2,354        6,781        11,254  

Natural gas

   (bcf)      25.1        19.5        16.5        15.2        17.0        48.7        76.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      14.9        10.9        8.9        8.7        10.6        28.2        45.8  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Permian (4)

                       

Crude oil and condensate

   (Mboe)      1,499        1,410        1,415        1,378        1,202        3,995        4,334  

NGL

   (Mboe)      288        393        734        580        428        1,742        1,249  

Natural gas

   (bcf)      2.4        4.9        4.4        4.4        4.0        12.8        9.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      2.2        2.6        2.9        2.7        2.3        7.9        7.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Haynesville (4)

                       

Crude oil and condensate

   (Mboe)      —          —          —          3        1        4        1  

NGL

   (Mboe)      —          —          —          15        3        18        —    

Natural gas

   (bcf)      34.4        31.1        28.2        24.0        22.0        74.2        105.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      5.7        5.2        4.7        4.0        3.7        12.4        17.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fayetteville (4)

                       

Natural gas

   (bcf)      28.0        26.5        24.8        24.2        23.1        72.1        91.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      4.7        4.4        4.1        4.0        3.9        12.0        15.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    14


Production and sales report

 

          Quarter ended      Year to date  
          Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Petroleum (1) (continued)

                       

Trinidad/Tobago

                       

Crude oil and condensate

   (Mboe)      120        162        140        156        127        423        547  

Natural gas

   (bcf)      7.4        8.6        6.4        8.4        8.4        23.2        22.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      1.4        1.6        1.2        1.6        1.5        4.3        4.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Americas (3) (5)

                       

Crude oil and condensate

   (Mboe)      334        308        275        269        257        801        1,055  

NGL

   (Mboe)      12        10        1        5        6        12        40  

Natural gas

   (bcf)      0.2        0.2        0.1        0.1        0.1        0.3        0.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.4        0.4        0.3        0.3        0.3        0.9        1.2  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

UK

                       

Crude oil and condensate

   (Mboe)      65        76        69        63        72        204        198  

NGL

   (Mboe)      10        10        22        49        32        103        33  

Natural gas

   (bcf)      1.0        1.3        1.1        1.0        1.0        3.1        3.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.2        0.3        0.3        0.3        0.3        0.8        0.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Algeria

                       

Crude oil and condensate

   (Mboe)      887        964        990        1,016        1,072        3,078        2,725  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      0.9        1.0        1.0        1.0        1.1        3.1        2.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pakistan (6)

                       

Crude oil and condensate

   (Mboe)      —          —          —          —          —          —          42  

Natural gas

   (bcf)      —          —          —          —          —          —          7.9  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)      —          —          —          —          —          —          1.4  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Billiton Petroleum

                       

Crude oil and condensate

                       

Onshore US

   (Mboe)      8,517        6,359        5,286        5,389        6,654        17,329        26,209  

Conventional (7)

   (Mboe)      14,474        14,291        13,204        13,601        13,380        40,185        43,720  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      22,991        20,650        18,490        18,990        20,034        57,514        69,929  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NGL

                       

Onshore US

   (Mboe)      3,937        3,110        3,002        2,754        2,785        8,541        12,503  

Conventional

   (Mboe)      2,253        2,605        2,755        2,167        1,989        6,911        7,242  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      6,190        5,715        5,757        4,921        4,774        15,452        19,745  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas

                       

Onshore US

   (bcf)      89.9        82.0        73.9        67.8        66.1        207.8        282.5  

Conventional

   (bcf)      91.5        95.7        107.8        97.1        88.4        293.3        284.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (bcf)      181.4        177.7        181.7        164.9        154.5        501.1        567.0  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

                       

Onshore US

   (Mboe)      27,437        23,136        20,605        19,443        20,456        60,503        85,795  

Conventional (7)

   (Mboe)      31,977        32,846        33,926        31,951        30,102        95,979        98,379  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)      59,414        55,982        54,530        51,394        50,558        156,483        184,174  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

(2)    Other Australia includes Minerva and Macedon.

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

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

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

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

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

     

     

     

     

     

     

     

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    15


Production and sales report

 

          Quarter ended     Year to date  
          Mar
2016
    Jun
2016
    Sep
2016
    Dec
2016
    Mar
2017
    Mar
2017
    Mar
2016
 

Copper

                 

Metals production is payable metal unless otherwise stated.

 

Escondida, Chile (1)

                 

Material mined

   (kt)      105,970       108,037       106,504       90,863       26,045       223,412       325,237  

Sulphide ore milled

   (kt)      21,188       22,905       20,787       19,866       8,054       48,707       62,084  

Average copper grade

   (%)      0.99     0.94     0.87     1.02     1.01     0.95     0.99

Production ex mill

   (kt)      175.8       181.7       153.2       168.6       55.1       376.9       488.3  

Production

                 

Payable copper

   (kt)      174.9       182.7       147.0       162.6       67.6       377.2       466.2  

Copper cathode (EW)

   (kt)      84.8       85.3       70.5       71.5       27.2       169.2       245.0  

- Oxide leach

   (kt)      31.0       31.3       26.8       24.4       8.9       60.1       86.5  

- Sulphide leach

   (kt)      53.8       54.0       43.7       47.1       18.3       109.1       158.5  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total copper

   (kt)      259.7       268.0       217.5       234.1       94.8       546.4       711.2  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payable gold concentrate

   (troy oz)      31,408       35,894       27,561       37,784       11,572       76,917       73,102  

Payable silver concentrate

   (troy koz)      1,544       1,874       1,229       1,323       540       3,092       3,687  

Sales

                 

Payable copper

   (kt)      181.7       186.6       134.9       172.7       63.7       371.3       463.1  

Copper cathode (EW)

   (kt)      80.3       83.8       65.6       71.8       39.4       176.8       245.2  

Payable gold concentrate

   (troy oz)      31,408       35,894       27,561       37,784       11,572       76,917       73,102  

Payable silver concentrate

   (troy koz)      1,544       1,874       1,229       1,323       540       3,092       3,687  

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

     

Pampa Norte, Chile

                 

Cerro Colorado

                 

Material mined

   (kt)      12,415       12,453       13,011       14,286       15,178       42,475       41,215  

Ore milled

   (kt)      4,012       4,375       3,241       3,342       4,179       10,762       13,571  

Average copper grade

   (%)      0.84     0.80     0.68     0.65     0.57     0.63     0.76

Production

                 

Copper cathode (EW)

   (kt)      20.0       24.8       17.1       12.1       16.7       45.9       52.5  

Sales

                 

Copper cathode (EW)

   (kt)      18.6       25.2       16.4       13.7       15.6       45.7       51.3  

Spence

                 

Material mined

   (kt)      22,549       21,124       23,638       22,635       22,939       69,212       67,064  

Ore milled

   (kt)      4,355       4,836       4,713       5,187       5,225       15,125       14,420  

Average copper grade

   (%)      1.39     1.22     1.17     1.19     1.09     1.15     1.36

Production

                 

Copper cathode (EW)

   (kt)      39.8       41.0       45.0       41.7       49.4       136.1       133.1  

Sales

                 

Copper cathode (EW)

   (kt)      38.4       40.9       41.2       41.5       49.0       131.7       132.7  

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    16


Production and sales report

 

          Quarter ended     Year to date  
          Mar
2016
    Jun
2016
    Sep
2016
    Dec
2016
    Mar
2017
    Mar
2017
    Mar
2016
 

Copper (continued)

                 

Metals production is payable metal unless otherwise stated.

 

Antamina, Peru

                 

Material mined (100%)

   (kt)      55,183       62,793       65,111       61,355       55,771       182,237       164,106  

Sulphide ore milled (100%)

   (kt)      12,414       14,711       13,522       13,399       11,955       38,876       40,898  

Average head grades

                 

- Copper

   (%)      1.02     0.90     0.84     0.84     0.88     0.85     0.94

- Zinc

   (%)      0.54     0.33     0.60     0.83     0.84     0.75     0.63

Production

                 

Payable copper

   (kt)      35.4       38.7       34.1       32.0       29.2       95.3       107.7  

Payable zinc

   (t)      11,913       6,474       15,367       22,406       20,653       58,426       48,964  

Payable silver

   (troy koz)      1,751       1,558       1,345       1,446       1,301       4,092       5,153  

Payable lead

   (t)      1,193       645       1,146       1,220       1,308       3,674       3,074  

Payable molybdenum

   (t)      227       562       561       225       30       816       551  

Sales

                 

Payable copper

   (kt)      29.3       42.4       32.8       33.0       30.2       96.0       103.0  

Payable zinc

   (t)      12,097       3,035       16,043       22,334       23,669       62,046       51,267  

Payable silver

   (troy koz)      1,331       2,055       1,277       1,388       1,304       3,969       4,901  

Payable lead

   (t)      1,073       1,108       767       1,100       1,475       3,342       2,395  

Payable molybdenum

   (t)      178       331       648       476       —         1,124       472  

Olympic Dam, Australia

                 

Material mined (1)

   (kt)      2,210       1,993       2,204       1,887       1,943       6,034       6,939  

Ore milled

   (kt)      2,174       2,031       2,279       2,116       2,112       6,507       7,668  

Average copper grade

   (%)      2.01     2.20     1.97     2.00     2.07     2.01     1.95

Average uranium grade

   (kg/t)      0.61       0.59       0.60       0.68       0.61       0.63       0.61  

Production

                 

Copper cathode (ER and EW)

   (kt)      49.8       40.7       40.9       37.2       36.8       114.9       162.1  

Uranium oxide concentrate

   (t)      961       876       916       1,060       948       2,924       3,487  

Refined gold

   (troy oz)      29,028       20,010       24,366       29,651       21,941       75,958       97,676  

Refined silver

   (troy koz)      174       232       163       188       174       525       685  

Sales

                 

Copper cathode (ER and EW)

   (kt)      49.4       43.9       37.5       41.2       33.5       112.2       159.2  

Uranium oxide concentrate

   (t)      1,261       778       1,085       883       839       2,807       2,951  

Refined gold

   (troy oz)      32,052       22,134       21,901       28,234       22,333       72,468       96,818  

Refined silver

   (troy koz)      198       201       184       203       108       495       676  

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

     

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    17


Production and sales report

 

          Quarter ended      Year to date  
          Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Iron Ore

                       

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

 

Pilbara, Australia

                       

Production

                       

Newman

   (kt)      15,817        15,115        18,008        17,751        16,283        52,042        50,826  

Area C Joint Venture

   (kt)      11,002        11,911        12,384        12,179        11,165        35,728        34,888  

Yandi Joint Venture

   (kt)      16,204        18,325        15,729        17,555        14,656        47,940        49,050  

Jimblebar (1)

   (kt)      5,472        5,304        6,057        5,178        4,824        16,059        13,586  

Wheelarra

   (kt)      4,562        4,971        5,409        7,386        6,647        19,442        17,578  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

   (kt)      53,057        55,626        57,587        60,049        53,575        171,211        165,928  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

   (kt)      61,454        64,508        66,681        69,730        62,177        198,588        192,812  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Lump

   (kt)      13,380        13,054        14,156        14,127        12,804        41,087        41,269  

Fines

   (kt)      40,078        42,673        42,278        45,447        41,043        128,768        124,582  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      53,458        55,727        56,434        59,574        53,847        169,855        165,851  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

   (kt)      61,927        64,617        65,368        69,196        62,513        197,077        192,729  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

     

Samarco, Brazil (1)

                       

Production

   (kt)      —          —          —          —          —          —          5,404  

Sales

   (kt)      224        94        12        —          35        47        6,180  

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

     

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    18


Production and sales report

 

          Quarter ended      Year to date  
          Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Coal

                       

Coal production is reported on the basis of saleable product.

 

Queensland Coal

                       

Production (1)

                       

BMA

                       

Blackwater

   (kt)      1,756        2,206        1,981        1,855        1,694        5,530        5,420  

Goonyella

   (kt)      2,478        2,709        2,123        2,204        1,871        6,198        6,287  

Peak Downs

   (kt)      1,159        1,385        1,520        1,715        1,582        4,817        3,646  

Saraji

   (kt)      1,046        1,123        1,238        1,307        1,276        3,821        3,083  

Gregory Joint Venture (2)

   (kt)      13        —          —          —          —          —          1,329  

Daunia

   (kt)      626        684        646        680        674        2,000        1,940  

Caval Ridge

   (kt)      816        1,118        876        923        899        2,698        2,483  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

   (kt)      7,894        9,225        8,384        8,684        7,996        25,064        24,188  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Billiton Mitsui Coal (3)

                       

South Walker Creek

   (kt)      1,268        1,382        1,341        1,080        1,354        3,775        4,054  

Poitrel

   (kt)      747        963        804        849        784        2,437        2,499  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Billiton Mitsui Coal

   (kt)      2,015        2,345        2,145        1,929        2,138        6,212        6,553  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

   (kt)      9,909        11,570        10,529        10,613        10,134        31,276        30,741  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                 

Coking coal

   (kt)      7,348        8,059        7,240        7,658        7,133        22,031        22,005  

Weak coking coal

   (kt)      2,681        3,196        2,799        2,659        2,761        8,219        8,622  

Thermal coal

   (kt)      241        310        206        154        96        456        617  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      10,270        11,565        10,245        10,471        9,990        30,706        31,244  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)    Production figures include some thermal coal.

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

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

     

     

     

Haju, Indonesia (1)

                 

Production

   (kt)      167        260        102        27        —          129        269  

Sales - export

   (kt)      148        239        117        —          —          117        148  

(1)    Shown on 100% basis. BHP Billiton interest in saleable production is 75%. BHP Billiton completed the sale of IndoMet Coal on 14 October 2016.

     

New Mexico, USA

                       

Production

                       

Navajo Coal (1)

   (kt)      694        632        451        —          —          451        3,367  

San Juan Coal (2)

   (kt)      418        —          —          —          —          —          3,053  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      1,112        632        451        —          —          451        6,420  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales thermal coal - local utility

        1,106        613        105        —          —          105        6,438  

(1)    The divestment of Navajo Coal was completed on 29 July 2016, with no further production reported by BHP Billiton. Management of Navajo Coal was transferred to Navajo Transitional Energy Company on 31 December 2016.

(2)    BHP Billiton completed the sale of San Juan Mine on 31 January 2016.

     

     

NSW Energy Coal, Australia

                       

Production

   (kt)      4,189        3,991        3,952        3,851        4,662        12,465        13,110  

Sales

                       

Export thermal coal

   (kt)      3,410        3,993        3,640        3,539        4,407        11,586        12,621  

Inland thermal coal

   (kt)      234        440        331        311        431        1,073        716  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (kt)      3,644        4,433        3,971        3,850        4,838        12,659        13,337  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                       

Production

   (kt)      2,610        2,329        2,928        2,800        2,756        8,484        7,765  

Sales thermal coal - export

   (kt)      2,339        2,844        2,905        2,722        2,613        8,240        7,757  

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    19


Production and sales report

 

          Quarter ended      Year to date  
          Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Mar
2017
     Mar
2017
     Mar
2016
 

Other

                       

Nickel production is reported on the basis of saleable product

 

Nickel West, Australia

                       

Production

                       

Nickel contained in concentrate

   (kt)      0.3        0.3        0.3        0.2        0.2        0.7        1.2  

Nickel contained in finished matte

   (kt)      2.8        5.8        1.8        4.1        2.3        8.2        10.4  

Nickel metal

   (kt)      16.9        17.3        16.7        17.8        16.5        51.0        45.7  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel production

   (kt)      20.0        23.4        18.8        22.1        19.0        59.9        57.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                       

Nickel contained in concentrate

   (kt)      0.3        0.3        0.3        0.2        0.2        0.7        1.2  

Nickel contained in finished matte

   (kt)      2.7        5.9        1.8        4.1        2.2        8.1        10.6  

Nickel metal

   (kt)      17.8        17.4        16.5        17.6        17.1        51.2        45.5  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel sales

   (kt)      20.8        23.6        18.6        21.9        19.5        60.0        57.3  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

BHP Billiton Operational Review for the nine months ended 31 March 2017    20


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: April 26, 2017     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary