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

July 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 July 2016
Release Number    17/16

BHP BILLITON OPERATIONAL REVIEW

FOR THE YEAR ENDED 30 JUNE 2016

 

  Exceeded full year production guidance for petroleum, copper and metallurgical coal, and achieved record full year production at Western Australia Iron Ore (WAIO).

 

  Expect to achieve full year unit cost guidance at our major assets, with unit costs forecast to decline further next year.

 

  In Petroleum, exploration drilling has commenced in Trinidad and Tobago and in the Gulf of Mexico following positive results at Shenzi North during the year.

 

  The Los Colorados Extension project was approved by the Escondida Owners Council with first production expected in the second half of the 2017 financial year.

 

  Four major projects under development are tracking to plan.

 

  Underlying attributable profit(1) in the June 2016 half year is expected to include additional charges of up to US$175 million (detail presented on page 2).

 

Production

   FY16      vs FY15      

Petroleum (MMboe)

     240         (6 %)    Strong Conventional performance offset by deferral of development activity in Onshore US for value.

Copper (kt)

     1,580         (8 %)    Increased throughput at Escondida and strong operating performance across the business partially offset lower grades at Escondida.

Iron ore (Mt)

     227         (2 %)    Record WAIO volumes offset by the suspension of operations at Samarco.

Metallurgical coal (Mt)

     43         1   Record production at five Queensland Coal mines more than offset the cessation of production at Crinum.

Energy coal (Mt)

     34         (16 %)    Divestment of the San Juan Mine, unfavourable weather at NSWEC and Cerrejón and operational rescheduling at NSWEC.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Over the next 12 months, we expect volumes and costs across our minerals businesses to benefit from our continued drive to safely improve productivity. We can create significant value through further cost reductions, taking advantage of latent capacity in our assets and investing in low-capital projects. These initiatives are expected to grow production by five per cent in copper, up to four per cent in iron ore and three per cent in metallurgical coal in the next financial year.

“In Petroleum, we have delivered strong performance from our Conventional assets and responded to market conditions by reducing the number of rigs in our Onshore US assets as we focus on cash flow and value. We have taken advantage of the fall in deep water drilling costs and accelerated our conventional oil exploration program to simultaneously run campaigns in the Gulf of Mexico and the Caribbean. We are well positioned to bring on shale volumes as markets tighten and develop conventional resources over the medium to long term.”

 

 

   1


Summary

Operational performance

Production for the 2016 financial year and guidance for the 2017 financial year are summarised in the table below.

 

                   FY16     Jun Q16     Jun Q16               
                   vs     vs     vs     FY17      FY17e  

Production

   FY16      Jun Q16      FY15     Jun Q15     Mar Q16     guidance      vs FY16  

Petroleum (MMboe)

     240         56         (6 %)      (11 %)      (6 %)      200 - 210         (13% - 17 %) 

Onshore US (MMboe)

     109         23         (13 %)      (27 %)      (16 %)      77 - 83         (24% - 29 %) 

Conventional (MMboe)

     131         33         1     4     3     123 - 127         (3% - 6 %) 

Copper (Mt)

     1.6         0.4         (8 %)      (5 %)      2     1.7         5

Escondida (kt)

     979         268         (20 %)      (20 %)      3     1,070         9

Other copper(i) (kt)

     601         145         25     46     0     590         (2 %) 

Iron ore(ii) (Mt)

     227         56         (2 %)      (7 %)      5     228 - 237         0% - 4

WAIO (100% basis) (Mt)

     257         65         2     (1 %)      5     265 - 275         3% - 7

Metallurgical coal (Mt)

     43         12         1     4     17     44         3

Energy coal (Mt)

     34         7         (16 %)      (34 %)      (12 %)      32         (7 %) 

 

(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) 2017 financial year guidance for iron ore excludes production from Samarco.

Major development projects

At the end of the 2016 financial year, 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.

During the year, first production was delivered by the North West Shelf Greater Western Flank-A petroleum project and the Greater Western Flank-B project was approved.

Corporate update

BHP Billiton expects Underlying attributable profit in the June 2016 half year to include additional items related to: (1) reversal of previously recorded inventory write-downs reflecting a slight recovery in commodity prices; (2) redundancies largely associated with the simplification of our business; and (3) impairments predominately in our Coal business.

 

Additional items to be recognised in the June 2016 half year

Charges/(credits)

(US$ million)

   Underlying
EBITDA(1)
     Underlying
EBIT(1)
     Underlying attributable
profit(1)
 

Reversal of inventory write-downs: across all minerals businesses

     (125) to (75)         (125) to (75)         (100) to (50)   

Redundancies and closure: across all businesses

     50 to 100         50 to 100         25 to 75   

Impairments: predominately in our Coal business

     0         75 to 150         75 to 150   

Total charges/(credits)

     (75) to 25         0 to 175         0 to 175   

In addition, the Group expects to record an exceptional item for global taxation matters between US$150 and US$200 million in the June 2016 half year. This includes potential litigation and tax-related amounts.

On 2 March 2016, Samarco Mineração S.A (Samarco), Vale S.A (Vale) and BHP Billiton Brasil LTDA (BHP Billiton Brasil) entered into an agreement with the Federal Government of Brazil, the States of Espirito Santo and Minas Gerais and certain other public authorities (Brazilian Authorities) (Framework Agreement). The Framework Agreement provides for settlement of claims brought by the Brazilian Authorities on 30 November 2015 seeking the establishment of a fund for clean-up costs and impacts relating to the Fundão tailings dam failure on 5 November 2015. The Framework Agreement provides for the restoration of the environment and communities affected by the Samarco dam failure. On 5 May 2016, the Framework Agreement was ratified by the Federal Court of Appeal in Brasilia.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    2


On 3 May 2016, the Federal Prosecution Office commenced proceedings against Samarco, Vale and BHP Billiton Brasil for BRL155 billion for social, environmental and economic compensation relating to the Samarco dam failure. At the same time, the Federal Prosecution Office appealed the ratification of the Framework Agreement. On 30 June 2016, the Superior Court of Justice in Brazil, in the case initiated by Brazilian Authorities, issued an interim order suspending the decision of the Federal Court of Appeal to ratify the Framework Agreement. BHP Billiton Brasil intends to appeal the decision of the Superior Court of Justice.

Samarco and its shareholders continue to believe that the Framework Agreement provides the appropriate long-term remedial and compensation framework for responding to the impact of the Samarco tragedy and the platform for the parties to work together. As set out by the Framework Agreement, a private autonomous foundation (Foundation Renova) has been created to deliver the socioeconomic and environmental programs in the Agreement.

Samarco continues to deliver the programs covered by the Framework Agreement and 90 per cent of the 41 programs prescribed by the Framework Agreement have been initiated. Substantial progress has been made including: approximately two-thirds of the houses and buildings in the Mariana region have been completely rebuilt or restored; 800 hectares of emergency areas reforested along the rivers Doce, Carmo and Gualaxo; and 10 tributaries (46 hectares) of river margins have been cleaned and contoured between Bento Rodrigues and Barra Longa.

For the June 2016 half year, we are not yet in a position to provide an update to the potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. We are continuing to work closely with Samarco and will provide an update as soon as we are in a position to do so. Any potential financial impacts related to the tragedy are expected to be classified as an exceptional item.

The guidance provided in this Operational Review 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.

 

                                 FY16     Jun H16     Jun H16  
                                 vs     vs     vs  

Average realised prices(i)

   Jun H16      Dec H15      FY16      FY15      FY15     Jun H15     Dec H15  

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

     37         42         39         68         (43 %)      (29 %)      (12 %) 

Natural gas (US$/Mscf)(ii)

     2.74         2.91         2.83         3.77         (25 %)      (17 %)      (6 %) 

US natural gas (US$/Mscf)

     1.96         2.35         2.16         3.27         (34 %)      (24 %)      (17 %) 

LNG (US$/Mscf)

     7.12         8.24         7.71         11.65         (34 %)      (24 %)      (14 %) 

Copper (US$/lb)

     2.16         2.12         2.14         2.78         (23 %)      (17 %)      2

Iron ore (US$/wmt, FOB)

     44         43         43         61         (30 %)      (17 %)      2

Hard coking coal (US$/t)

     83         82         83         105         (21 %)      (16 %)      1

Weak coking coal (US$/t)

     70         67         69         88         (22 %)      (18 %)      4

Thermal coal (US$/t)(iii)

     46         49         48         58         (17 %)      (18 %)      (6 %) 

Nickel metal (US$/t)

     8,792         9,926         9,264         15,301         (39 %)      (36 %)      (11 %) 

 

(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 30 June 2016, the Group had 316 kt of outstanding copper sales that were revalued at a weighted average price of US$2.20 per pound. The final price of these sales will be determined in the 2017 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$260 million in the 2016 financial year.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    3


Petroleum

Production

 

     FY16      Jun Q16      FY16
vs
FY15
    Jun Q16
vs

Jun Q15
    Jun Q16
vs

Mar Q16
 

Crude oil, condensate and natural gas liquids (MMboe)

     116.0         26.4         (7 %)      (15 %)      (10 %) 

Natural gas (bcf)

     744.7         177.7         (5 %)      (7 %)      (2 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production (MMboe)

     240.1         56.0         (6 %)      (11 %)      (6 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production – Total petroleum production for the 2016 financial year decreased by six per cent to 240 MMboe. Petroleum production is forecast to decrease to between 200 and 210 MMboe in the 2017 financial year.

In Onshore US, we continue to focus on near-term cash flow performance. A reduction in capital expenditure and development activity is expected to lead to a decline in volumes to between 77 and 83 MMboe in the 2017 financial year. In our Conventional business, volumes are expected to decrease to between 123 and 127 MMboe as a result of the divestment of our gas business in Pakistan and natural field decline.

Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production for the 2016 financial year decreased by seven per cent to 116 MMboe.

Onshore US liquids volumes declined by 13 per cent to 48 MMboe as increased liquids production from the Permian partially offset the temporary deferral of completions activity in the Black Hawk and drilling activity in the Hawkville. Completions activity in the Black Hawk resumed late in the June 2016 quarter.

Conventional liquids volumes were broadly unchanged as new production wells at Atlantis, Mad Dog and Pyrenees offset natural field decline across the portfolio, cessation of production at Stybarrow, maintenance at North West Shelf and industrial action at Bass Strait.

Natural gas – Natural gas production for the 2016 financial year declined by five per cent to 745 bcf.

The decline primarily reflects lower Onshore US gas volumes as a result of the decision to defer development activity for longer-term value and the successful divestment of our gas business in Pakistan as we continue to create a more focused portfolio. This was partially offset by higher demand at Bass Strait and Macedon.

Projects

 

Project and ownership

   Capital
expenditure
(US$m)
     Initial
production
target date
    

Capacity

  

Progress

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 96% 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.    On schedule and budget. The overall project is 14% complete.

Petroleum capital expenditure for the 2016 financial year declined by approximately 50 per cent to US$2.5 billion. A further 44 per cent reduction to approximately US$1.4 billion is planned for the 2017 financial year. This includes Conventional capital expenditure of US$0.8 billion, which remains focused on high-return infill drilling opportunities in the Gulf of Mexico and life extension projects at Bass Strait and North West Shelf.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016

   4


Onshore US development activity

Onshore US drilling and development expenditure for the 2016 financial year was approximately US$1.2 billion, of which approximately US$400 million related to a reduction in capital creditors. Our operated rig count declined from five to four in the June 2016 quarter as we continue to focus on value maximisation and cash flow performance. Onshore US capital expenditure is expected to be approximately US$600 million in the 2017 financial year with development activity tailored to market conditions.

 

FY16         Liquids focused areas     Gas focused areas        

(FY15)

        Eagle Ford     Permian     Haynesville     Fayetteville     Total  

Capital expenditure(i)

   US$ billion      0.8 (2.3     0.4 (0.8     0.0 (0.4     0.0 (0.2     1.2 (3.7

Rig allocation

   At period end      2 (7     2 (3     0 (0     0 (0     4 (10

Net wells drilled and completed(ii)

   Period total      89 (188     30 (45     5 (25     11 (45     136 (303

Net productive wells

   At period end      929 (836     107 (75     411 (395     1,086 (1,070     2,533 (2,376

 

(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 June 2016 quarter are summarised below.

 

Well

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

Status

Ruby-3

   Trinidad & Tobago
Angostura -Block
3A
   Oil    25.5%
(Operator)
   4 May
2016
     65 m         1,996 m       Hydrocarbons encountered; Plugged and abandoned

LeClerc-1

   Trinidad & Tobago
Block 5
   Oil    65%
(Operator)
   21 May
2016
     1,800 m         5,771 m(i)       Drilling ahead

Caicos-1

   Gulf of Mexico
GC564
   Oil    100%
(Operator)
   21 June
2016
     1,288 m         3,135 m(i)       Drilling ahead

 

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

During the June 2016 quarter, BHP Billiton acquired 91 blocks with no well obligations in the Gulf of Mexico: a Lease Exchange Agreement was executed with Chevron for 61 blocks; a Sale and Purchase Agreement was executed with ConocoPhillips for 26 blocks; and regulatory approval was received for four blocks awarded in Lease Sale 241 in March 2016. In Australia, the Bunyip and Tallaganda Retention Leases WA-71-R and WA-72-R were awarded and the Tallaganda Exploration Lease WA-351-P expired.

Petroleum exploration expenditure for the 2016 financial year was US$590 million, of which US$273 million was expensed. Activity for the period was largely focused on our core areas in the deepwater Gulf of Mexico, the Caribbean and the Northern Beagle sub-basin off the coast of Western Australia, where we acquired additional acreage, seismic data and increased drilling activity. Our exploration activity has increased in the Gulf of Mexico following the positive exploration well results at Shenzi North and drilling has commenced in Trinidad and Tobago. We are pursuing high-quality oil plays in our three priority basins and a US$700 million exploration program is planned for the 2017 financial year as we accelerate testing of our future growth opportunities.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    5


Copper

Production

 

     FY16      Jun Q16      FY16
vs
FY15
    Jun Q16
vs
Jun Q15
    Jun Q16
vs
Mar Q16
 

Copper (kt)

     1,580         413         (8 %)      (5 %)      2

Zinc (t)

     55,438         6,474         (17 %)      (59 %)      (46 %) 

Silver (troy koz)

     13,189         3,664         41     48     6

Uranium oxide concentrate (t)

     4,363         876         39     47     (9 %) 

Copper – Total copper production for the 2016 financial year decreased by eight per cent to 1.6 Mt as improved operating performance across the copper operations was offset by the grade-related volume decline at Escondida. Total copper production is forecast to increase to 1.7 Mt in the 2017 financial year.

Escondida copper production for the 2016 financial year decreased by 20 per cent to 979 kt. Record cathode production and record material mined, together with Organic Growth Project 1 reaching full capacity in the June 2016 quarter, was more than offset by a 28 per cent decline in grade, as expected. Following this strong operating performance, we expect unit costs at Escondida to be slightly below guidance of US$1.21 per pound for the 2016 financial year(2). The Escondida Bioleach Pad Extension project, which includes the expansion of the leach pad to four layers, was completed during the March 2016 quarter and has also contributed to the operating cost improvement.

The Escondida Owners Council approved an investment of US$180 million (100 per cent basis) for the Los Colorados Extension project in June 2016. First production is expected in the second half of the 2017 financial year, adding incremental capacity of approximately 200 ktpa in the near term. Copper production of 1,070 kt is expected in the 2017 financial year as the Escondida Water Supply project is commissioned in the second half of the year and enables the utilisation of three concentrators.

Pampa Norte copper production for the 2016 financial year increased by one per cent to 251 kt, supported by record ore milled and higher grades at Spence. Copper production is expected to increase in the 2017 financial year with the completion of the Spence Recovery Optimisation (SRO) project which will enable the full utilisation of the 200 ktpa tankhouse. SRO is expected to ramp up during the September 2016 quarter and achieve an annualised production rate of 200 kt from the December 2016 quarter. The Spence Growth Option remains in feasibility with the potential to extend mining operations by more than 50 years and increase copper capacity by approximately 200 ktpa. Final Board review is expected in the second half of the 2017 calendar year.

Olympic Dam copper production for the 2016 financial year increased by 63 per cent to 203 kt. This strong performance reflected higher grades and improved smelter and mill utilisation after the Svedala mill outage in the prior year and came despite planned smelter maintenance during the June 2016 quarter. Copper production in the 2017 financial year is expected to remain broadly unchanged from the 2016 financial year.

Antamina copper production for the 2016 financial year increased by 36 per cent to a record 146 kt as it benefitted from higher grades and higher mill throughput. Copper production is expected to decrease in the 2017 financial year to approximately 130 kt, as mining progresses through a zinc rich ore zone consistent with the mine plan. Zinc production is expected to increase from 55 kt to approximately 90 kt in the 2017 financial year.

Projects

 

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 93% complete.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    6


Iron Ore

Production

 

     FY16      Jun Q16      FY16
vs
FY15
    Jun Q16
vs
Jun Q15
    Jun Q16
vs
Mar Q16
 

Iron ore (kt)

     226,958         55,626         (2 %)      (7 %)      5

Iron ore – Total iron ore production for the 2016 financial year was broadly unchanged at 227 Mt as record production at WAIO offset the suspension of operations at Samarco. Total iron ore production is expected to increase to between 228 and 237 Mt in the 2017 financial year, excluding production from Samarco.

WAIO production for the 2016 financial year increased by two per cent to a record 257 Mt (100 per cent basis) as the Jimblebar mining hub operated at full capacity and utilisation at the Newman ore handling plant improved. This more than offset one-off operational issues in the December 2015 quarter, the impact of adverse weather conditions and the initiation of a rail renewal and maintenance program in the June 2016 half year. Following a strong recovery from the wet season, WAIO produced at an annualised rate of 275 Mt in June 2016.

WAIO production for the 2017 financial year is forecast to increase to between 265 and 275 Mt (100 per cent basis). The 24 month rail program, which will support the integrated supply chain’s long-term reliability, is progressing on schedule. Along with our focus on productivity and the ramp-up of additional capacity at the Jimblebar mining hub, this will deliver an increase in system capacity to 290 Mtpa in the 2019 financial year. The installation of the new primary crusher and additional conveying capacity at Jimblebar is expected to be completed in the December 2016 quarter.

Samarco production for the 2016 financial year was 11 Mt (100 per cent basis). Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. Sales from the final shipment of pellets from stockpiles were settled in the June 2016 quarter.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016

   7


Coal

Production

 

     FY16      Jun Q16      FY16
vs
FY15
    Jun Q16
vs
Jun Q15
    Jun Q16
vs
Mar Q16
 

Metallurgical coal (kt)

     42,840         11,830         1     4     17

Energy coal (kt)

     34,247         6,952         (16 %)      (34 %)      (12 %) 

Metallurgical coal – Metallurgical coal production for the 2016 financial year increased by one per cent to a record 43 Mt. Metallurgical coal production is expected to increase to 44 Mt in the 2017 financial year despite the planned divestment of IndoMet Coal.

Queensland Coal production was flat as record production at five mines, underpinned by increased plant and equipment availability and utilisation, offset the completion of longwall mining at Crinum, a convergence event at the Broadmeadow mine and unfavourable weather conditions. Record quarterly production resulted in a 17 per cent increase in volumes from the March 2016 quarter.

Queensland Coal production is forecast to increase to 44 Mt in the 2017 financial year. This improvement will be supported by delivering higher wash-plant and truck hours which will more than offset the closure of Crinum. A longwall move at Broadmeadow and wash-plant shutdown at Saraji are scheduled for the September 2016 quarter.

First production from the Haju mine in Indonesia was achieved during the 2016 financial year. On 7 June 2016, BHP Billiton entered into an agreement to sell its 75 per cent interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro). Completion of the sale is conditional upon the fulfilment of customary regulatory approvals.

Energy coal – Energy coal production for the 2016 financial year decreased by 16 per cent to 34 Mt. Energy coal production is forecast to decrease to 32 Mt in the 2017 financial year as productivity improvements at New South Wales Energy Coal partially offset the divestment of our New Mexico Coal assets.

New South Wales Energy Coal production for the 2016 financial year declined by 13 per cent due to the impact of heavy rainfall, the progression through a higher strip ratio zone and rescheduling of the mine plan based on individual pit economics. Cerrejón volumes declined by 11 per cent as drought conditions in the first nine months of the year followed by heavy rainfall in the June 2016 quarter constrained production.

Navajo Coal production for the 2016 financial year decreased by 18 per cent as a result of lower customer demand. The transfer of management and operatorship for Navajo Coal to Navajo Transitional Energy Company remains on track for 31 December 2016. The sale of the San Juan Mine to Westmoreland Coal Company was completed on 31 January 2016.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016

   8


Other

Nickel production

 

     FY16      Jun
Q16
     FY16
vs
FY15
    Jun Q16
vs
Jun Q15
    Jun Q16
vs

Mar Q16
 

Nickel (kt)

     80.7         23.4         (10 %)      21     17

Nickel – Nickel West production for the 2016 financial year decreased by 10 per cent to 81 kt and reflected planned major maintenance 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. Higher nickel matte production during the June 2016 quarter was supported by additional third party concentrate purchases.

Nickel production is expected to increase by approximately 10 per cent in the 2017 financial year, with higher grade ore at Mt Keith and a ramp up in mining at Leinster since February 2016 supporting higher utilisation rates at the Kalgoorlie smelter and Kwinana refinery.

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 60% complete and within the approved budget. Shaft excavation is progressing.

Minerals exploration

Minerals exploration expenditure for the 2016 financial year was US$175 million, of which US$157 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru, Canada and the South-West United States.

 

 

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

The following footnotes apply to this Operational Review:

 

(1)  Underlying EBITDA, Underlying EBIT and Underlying attributable profit are used to reflect the underlying performance of BHP Billiton. Underlying EBITDA is earnings before net finance costs, taxation, depreciation, amortisation, impairment and any exceptional items. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items. Underlying attributable profit is Attributable profit excluding any exceptional items.
(2)  Escondida unit cash costs exclude freight and treatment and refining charges. 2016 financial year guidance is based on exchange rate of USD/CLP 702.

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 year ended 30 June 2016   

9


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

 

Media Relations

 

Australia and Asia

 

Eleanor Colonico

Tel: +61 3 9609 2360 Mobile +61 407 064 748

Email: Eleanor.Colonico@bhpbilliton.com

 

Paul Hitchins

Tel: +61 3 9609 2592 Mobile +61 419 315 001

Email: Paul.Hitchins@bhpbilliton.com

 

Fiona Hadley

Tel: +61 3 9609 2211 Mobile +61 427 777 908

Email: Fiona.Hadley@bhpbilliton.com

 

Amanda Saunders

Tel: +61 3 9609 3985 Mobile +61 417 487 973

Email: Amanda.Saunders@bhpbilliton.com

 

United Kingdom and South Africa

 

Ruban Yogarajah

Tel: +44 207 802 4033 Mobile +44 7827 082 022

Email: Ruban.Yogarajah@bhpbilliton.com

 

North America

 

Bronwyn Wilkinson

Mobile: +1 604 340 8753

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

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

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

Tel: +1 212 310 1421 Mobile: +1 347 882 3011

Email: James.Wear@bhpbilliton.com

 

BHP Billiton Limited ABN 49 004 028 077    BHP Billiton Plc Registration number 3196209
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BHP Billiton Operational Review for the year ended 30 June 2016    10


PRODUCTION SUMMARY

 

           QUARTER ENDED      YEAR TO DATE  
     BHP Billiton
interest
    JUN
2015
     SEP
2015
     DEC
2015
     MAR
2016
     JUN
2016
     JUN
2016
     JUN
2015
 

Petroleum (1)

                      

Petroleum

                      

Crude oil, condensate and NGL (Mboe)

                      

Onshore US

       15,413         13,453         12,805         12,454         9,469         48,181         55,626   

Conventional

       15,759         17,259         16,976         16,727         16,896         67,858         68,952   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       31,172         30,712         29,781         29,181         26,365         116,039         124,578   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas (bcf)

                      

Onshore US

       96.4         98.2         94.4         89.9         82.0         364.5         420.2   

Conventional

       95.4         104.6         88.4         91.5         95.7         380.2         366.4   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       191.8         202.8         182.8         181.4         177.7         744.7         786.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum production (MMboe)

       63.2         64.5         60.2         59.4         56.0         240.1         255.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     247.0         159.6         131.7         174.9         182.7         648.9         916.1   

Antamina

     33.8     28.0         35.1         37.2         35.4         38.7         146.4         107.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       275.0         194.7         168.9         210.3         221.4         795.3         1,023.8   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     88.8         70.9         89.3         84.8         85.3         330.3         310.4   

Pampa Norte (4)

     100     57.7         56.8         69.0         59.8         65.8         251.4         249.6   

Olympic Dam

     100     13.7         54.9         57.4         49.8         40.7         202.8         124.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       160.2         182.6         215.7         194.4         191.8         784.5         684.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper

       435.2         377.3         384.6         404.7         413.2         1,579.8         1,708.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     448         857         1,024         1,193         645         3,719         2,060   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       448         857         1,024         1,193         645         3,719         2,060   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     15,857         20,597         16,454         11,913         6,474         55,438         66,435   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       15,857         20,597         16,454         11,913         6,474         55,438         66,435   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     25,554         23,805         17,889         31,408         35,894         108,996         81,509   

Olympic Dam (refined gold)

     100     9,438         29,349         39,299         29,028         20,010         117,686         104,780   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       34,992         53,154         57,188         60,436         55,904         226,682         186,289   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     1,314         1,181         962         1,544         1,874         5,561         4,786   

Antamina

     33.8     1,115         1,766         1,636         1,751         1,558         6,711         3,826   

Olympic Dam (refined silver)

     100     55         246         265         174         232         917         724   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       2,484         3,193         2,863         3,469         3,664         13,189         9,336   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     595         1,174         1,352         961         876         4,363         3,144   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       595         1,174         1,352         961         876         4,363         3,144   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     206         92         232         227         562         1,113         472   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       206         92         232         227         562         1,113         472   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    11


PRODUCTION SUMMARY

 

           QUARTER ENDED      YEAR TO DATE  
     BHP Billiton
interest
    JUN
2015
     SEP
2015
     DEC
2015
     MAR
2016
     JUN
2016
     JUN
2016
     JUN
2015
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     16,062         18,006         17,003         15,817         15,115         65,941         63,697   

Area C Joint Venture

     85     12,214         12,163         11,723         11,002         11,911         46,799         49,994   

Yandi Joint Venture

     85     17,452         16,886         15,960         16,204         18,325         67,375         68,551   

Jimblebar (6)

     85     5,462         3,262         4,852         5,472         5,304         18,890         16,759   

Wheelarra

     85     5,159         7,259         5,757         4,562         4,971         22,549         18,994   

Samarco

     50     3,737         3,739         1,665         —           —           5,404         14,513   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       60,086         61,315         56,960         53,057         55,626         226,958         232,508   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     9,023         8,087         8,207         7,894         9,225         33,413         33,862   

BHP Billiton Mitsui Coal (8)

     80     2,370         2,347         2,191         2,015         2,345         8,898         8,759   

Haju (9)

     75     —           15         87         167         260         529         —     
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       11,393         10,449         10,485         10,076         11,830         42,840         42,621   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

USA

     100     2,574         2,676         2,632         1,112         632         7,052         10,023   

Australia

     100     5,086         4,644         4,277         4,189         3,991         17,101         19,698   

Colombia

     33.3     2,944         2,527         2,628         2,610         2,329         10,094         11,291   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,604         9,847         9,537         7,911         6,952         34,247         41,012   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West

     100     19.3         22.1         15.2         20.0         23.4         80.7         89.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       19.3         22.1         15.2         20.0         23.4         80.7         89.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 year ended 30 June 2016    12


PRODUCTION AND SALES REPORT

 

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

Petroleum (1)

                     

Bass Strait

                     

Crude oil and condensate

   (Mboe)      1,707         1,877        1,390         1,813         1,745         6,825        7,965   

NGL

   (Mboe)      1,548         2,091        1,307         1,455         1,831         6,684        6,182   

Natural gas

   (bcf)      31.9         38.7        23.9         30.3         38.1         131.0        102.3   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      8.6         10.4        6.7         8.3         9.9         35.3        31.2   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

North West Shelf

                     

Crude oil and condensate

   (Mboe)      1,215         1,362        1,423         1,124         925         4,834        5,466   

NGL

   (Mboe)      198         227        235         259         241         962        1,032   

Natural gas

   (bcf)      29.9         33.9        34.9         33.8         27.6         130.2        133.0   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      6.4         7.2        7.5         7.0         5.8         27.5        28.7   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Stybarrow (2)

                     

Crude oil and condensate

   (Mboe)      93         (8     —           —           —           (8     760   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      0.1         (0.0     —           —           —           (0.0     0.8   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pyrenees

                     

Crude oil and condensate

   (Mboe)      1,435         2,096        2,331         2,093         2,097         8,617        7,154   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      1.4         2.1        2.3         2.1         2.1         8.6        7.2   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Other Australia (3)

                     

Crude oil and condensate

   (Mboe)      13         13        9         8         9         39        52   

Natural gas

   (bcf)      16.0         16.6        14.4         16.2         17.2         64.4        59.5   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      2.7         2.8        2.4         2.7         2.9         10.8        10.0   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Atlantis (4)

                     

Crude oil and condensate

   (Mboe)      3,110         3,637        4,257         4,056         4,058         16,008        14,670   

NGL

   (Mboe)      209         231        278         270         269         1,048        996   

Natural gas

   (bcf)      1.7         1.6        2.0         1.9         1.9         7.4        7.4   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      3.6         4.1        4.9         4.6         4.6         18.3        16.9   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Mad Dog (4)

                     

Crude oil and condensate

   (Mboe)      651         588        648         880         1,134         3,250        2,638   

NGL

   (Mboe)      20         23        41         41         52         157        120   

Natural gas

   (bcf)      0.1         0.1        0.1         0.1         0.2         0.5        0.4   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      0.7         0.6        0.7         0.9         1.2         3.5        2.8   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Shenzi (4)

                     

Crude oil and condensate

   (Mboe)      3,369         3,277        3,185         3,094         2,813         12,369        13,684   

NGL

   (Mboe)      174         236        269         206         192         903        940   

Natural gas

   (bcf)      0.7         0.7        0.8         0.6         0.6         2.7        3.0   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      3.7         3.6        3.6         3.4         3.1         13.7        15.1   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Eagle Ford (5)

                     

Crude oil and condensate

   (Mboe)      9,363         7,700        7,156         7,018         4,949         26,823        35,358   

NGL

   (Mboe)      4,183         3,799        3,806         3,649         2,717         13,971        15,110   

Natural gas

   (bcf)      26.1         25.8        25.4         25.1         19.5         95.8        108.6   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      17.9         15.8        15.2         14.9         10.9         56.8        68.6   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Permian (5)

                     

Crude oil and condensate

   (Mboe)      1,447         1,481        1,354         1,499         1,410         5,744        3,711   

NGL

   (Mboe)      420         473        488         288         393         1,642        1,427   

Natural gas

   (bcf)      3.0         3.9        3.4         2.4         4.9         14.6        10.9   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      2.4         2.6        2.4         2.2         2.6         9.8        7.0   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Haynesville (5)

                     

Crude oil and condensate

   (Mboe)      —           —          1         —           —           1        20   

Natural gas

   (bcf)      35.4         36.4        34.7         34.4         31.1         136.6        162.5   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total petroleum products

   (MMboe)      5.9         6.1        5.8         5.7         5.2         22.8        27.1   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    13


PRODUCTION AND SALES REPORT

 

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

Petroleum (1) (continued)

                     

Fayetteville (5)

                     

Natural gas

   (bcf)     31.9         32.1        30.9         28.0         26.5         117.5         138.2   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     5.3         5.4        5.2         4.7         4.4         19.6         23.0   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Trinidad/Tobago

                     

Crude oil and condensate

   (Mboe)     562         242        185         120         162         709         1,237   

Natural gas

   (bcf)     9.1         7.6        7.4         7.4         8.6         31.0         32.9   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     2.1         1.5        1.4         1.4         1.6         5.9         6.7   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Americas (4) (6)

                     

Crude oil and condensate

   (Mboe)     348         361        360         334         308         1,363         1,545   

NGL

   (Mboe)     11         12        16         12         10         50         88   

Natural gas

   (bcf)     0.1         0.2        0.2         0.2         0.2         0.8         0.7   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.4         0.4        0.4         0.4         0.4         1.5         1.7   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

UK

                     

Crude oil and condensate

   (Mboe)     76         59        74         65         76         274         251   

NGL

   (Mboe)     83         (4     27         10         10         43         101   

Natural gas

   (bcf)     1.0         1.0        1.0         1.0         1.3         4.3         4.2   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.3         0.2        0.3         0.2         0.3         1.0         1.1   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Algeria

                     

Crude oil and condensate

   (Mboe)     912         916        922         887         964         3,689         3,948   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.9         0.9        0.9         0.9         1.0         3.7         3.9   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pakistan (7)

                     

Crude oil and condensate

   (Mboe)     25         23        19         —           —           42         123   

Natural gas

   (bcf)     4.9         4.2        3.7         —           —           7.9         23.0   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.8         0.7        0.6         —           —           1.4         4.0   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

                     

Crude oil and condensate

                     

Onshore US

   (Mboe)     10,810         9,181        8,511         8,517         6,359         32,568         39,089   

Conventional

   (Mboe)     13,516         14,443        14,803         14,474         14,291         58,011         59,493   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     24,326         23,624        23,314         22,991         20,650         90,579         98,582   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NGL

                     

Onshore US

   (Mboe)     4,603         4,272        4,294         3,937         3,110         15,613         16,537   

Conventional

   (Mboe)     2,243         2,816        2,173         2,253         2,605         9,847         9,459   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     6,846         7,088        6,467         6,190         5,715         25,460         25,996   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas

                     

Onshore US

   (bcf)     96.4         98.2        94.4         89.9         82.0         364.5         420.2   

Conventional

   (bcf)     95.4         104.6        88.4         91.5         95.7         380.2         366.4   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (bcf)     191.8         202.8        182.8         181.4         177.7         744.7         786.6   
    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(7) BHP Billiton completed the sale of the Pakistan gas business on 16 February 2015.

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    14


PRODUCTION AND SALES REPORT

 

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

Copper

                

Metals production is payable metal unless otherwise stated.

  

Escondida, Chile (1)

                

Material mined

   (kt)     96,337        110,067        109,200        105,970        108,037        433,274        384,700   

Sulphide ore milled

   (kt)     22,909        22,820        18,076        21,188        22,905        84,989        83,296   

Average copper grade

   (%)     1.32     1.00     0.99     0.99     0.94     0.98     1.36

Production ex mill

   (kt)     249.6        169.7        142.8        175.8        181.7        670.0        936.9   

Production

                

Payable copper

   (kt)     247.0        159.6        131.7        174.9        182.7        648.9        916.1   

Copper cathode (EW)

   (kt)     88.8        70.9        89.3        84.8        85.3        330.3        310.4   

Payable gold concentrate

   (troy oz)     25,554        23,805        17,889        31,408        35,894        108,996        81,509   

Payable silver concentrate

   (troy koz)     1,314        1,181        962        1,544        1,874        5,561        4,786   

Sales

                

Payable copper

   (kt)     243.0        157.6        123.8        181.7        186.6        649.7        919.1   

Copper cathode (EW)

   (kt)     101.4        63.8        101.1        80.3        83.8        329.0        310.2   

Payable gold concentrate

   (troy oz)     25,554        23,805        17,889        31,408        35,894        108,996        81,509   

Payable silver concentrate

   (troy koz)     1,314        1,181        962        1,544        1,874        5,561        4,787   

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

       

Pampa Norte, Chile

                

Cerro Colorado

                

Material mined

   (kt)     14,211        13,870        14,930        12,415        12,453        53,668        60,882   

Ore milled

   (kt)     4,798        4,703        4,856        4,012        4,375        17,946        17,934   

Average copper grade

   (%)     0.70     0.64     0.82     0.84     0.80     0.77     0.71

Production

                

Copper cathode (EW)

   (kt)     20.4        13.7        18.8        20.0        24.8        77.3        78.2   

Sales

                

Copper cathode (EW)

   (kt)     20.8        13.0        19.7        18.6        25.2        76.5        83.8   

Spence

                

Material mined

   (kt)     21,062        22,922        21,593        22,549        21,124        88,188        90,151   

Ore milled

   (kt)     4,082        4,919        5,146        4,355        4,836        19,256        16,834   

Average copper grade

   (%)     1.24     1.41     1.30     1.39     1.22     1.33     1.21

Production

                

Copper cathode (EW)

   (kt)     37.3        43.1        50.2        39.8        41.0        174.1        171.4   

Sales

                

Copper cathode (EW)

   (kt)     40.6        38.2        56.1        38.4        40.9        173.6        174.3   

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    15


PRODUCTION AND SALES REPORT

 

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

Copper (continued)

                

Metals production is payable metal unless otherwise stated.

  

Antamina, Peru

                

Material mined (100%)

   (kt)     56,944        56,793        52,130        55,183        62,793        226,899        205,199   

Sulphide ore milled (100%)

   (kt)     14,831        14,300        14,184        12,414        14,711        55,609        53,675   

Average head grades

                

- Copper

   (%)     0.74     0.88     0.92     1.02     0.90     0.93     0.77

- Zinc

   (%)     0.56     0.79     0.55     0.54     0.33     0.55     0.68

Production

                

Payable copper

   (kt)     28.0        35.1        37.2        35.4        38.7        146.4        107.7   

Payable zinc

   (t)     15,857        20,597        16,454        11,913        6,474        55,438        66,435   

Payable silver

   (troy koz)     1,115        1,766        1,636        1,751        1,558        6,711        3,826   

Payable lead

   (t)     448        857        1,024        1,193        645        3,719        2,060   

Payable molybdenum

   (t)     206        92        232        227        562        1,113        472   

Sales

                

Payable copper

   (kt)     26.3        30.8        42.9        29.3        42.4        145.4        108.9   

Payable zinc

   (t)     13,645        18,747        20,423        12,097        3,035        54,302        63,561   

Payable silver

   (troy koz)     911        1,522        2,048        1,331        2,055        6,956        3,748   

Payable lead

   (t)     624        266        1,056        1,073        1,108        3,503        2,116   

Payable molybdenum

   (t)     157        156        138        178        331        803        460   

Olympic Dam, Australia

                

Material mined (1)

   (kt)     1,773        2,357        2,372        2,210        1,993        8,932        9,318   

Ore milled

   (kt)     1,469        2,727        2,767        2,174        2,031        9,699        7,928   

Average copper grade

   (%)     1.97     1.64     2.22     2.01     2.20     2.01     1.86

Average uranium grade

   (kg/t)     0.62        0.60        0.62        0.61        0.59        0.61        0.57   

Production

                

Copper cathode (ER and EW)

   (kt)     13.7        54.9        57.4        49.8        40.7        202.8        124.5   

Uranium oxide concentrate

   (t)     595        1,174        1,352        961        876        4,363        3,144   

Refined gold

   (troy oz)     9,438        29,349        39,299        29,028        20,010        117,686        104,780   

Refined silver

   (troy koz)     55        246        265        174        232        917        724   

Sales

                

Copper cathode (ER and EW)

   (kt)     14.5        52.5        57.3        49.4        43.9        203.1        127.3   

Uranium oxide concentrate

   (t)     818        677        1,013        1,261        778        3,729        3,668   

Refined gold

   (troy oz)     9,064        25,598        39,168        32,052        22,134        118,952        106,647   

Refined silver

   (troy koz)     61        213        265        198        201        877        732   

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

       

 

 

BHP Billiton Operational Review for the year ended 30 June 2016    16


PRODUCTION AND SALES REPORT

 

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

Iron Ore

                      

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

  

Pilbara, Australia

                      

Production

                      

Newman

     (kt     16,062         18,006         17,003         15,817         15,115         65,941         63,697   

Area C Joint Venture

     (kt     12,214         12,163         11,723         11,002         11,911         46,799         49,994   

Yandi Joint Venture

     (kt     17,452         16,886         15,960         16,204         18,325         67,375         68,551   

Jimblebar (1)

     (kt     5,462         3,262         4,852         5,472         5,304         18,890         16,759   

Wheelarra

     (kt     5,159         7,259         5,757         4,562         4,971         22,549         18,994   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

     (kt     56,349         57,576         55,295         53,057         55,626         221,554         217,995   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

     (kt     65,330         67,161         64,197         61,454         64,508         257,320         253,509   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Lump

     (kt     13,234         14,003         13,886         13,380         13,054         54,323         51,278   

Fines

     (kt     43,430         43,587         40,917         40,078         42,673         167,255         168,883   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     56,664         57,590         54,803         53,458         55,727         221,578         220,161   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

     (kt     65,703         67,177         63,625         61,927         64,617         257,346         256,055   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

       

        

Samarco, Brazil (1)

                      

Production

     (kt     3,737         3,739         1,665         —           —           5,404         14,513   

Sales

     (kt     3,627         3,531         2,425         224         94         6,274         13,957   

 

(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 year ended 30 June 2016    17


PRODUCTION AND SALES REPORT

 

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

Coal

                      

Coal production is reported on the basis of saleable product.

  

Queensland Coal

                      

Production (1)

                      

BMA

                      

Blackwater

     (kt     1,873         1,803         1,861         1,756         2,206         7,626         6,994   

Goonyella

     (kt     2,065         1,868         1,941         2,478         2,709         8,996         8,510   

Peak Downs

     (kt     1,469         1,164         1,323         1,159         1,385         5,031         5,111   

Saraji

     (kt     1,194         1,037         1,000         1,046         1,123         4,206         4,506   

Gregory Joint Venture (2)

     (kt     885         707         609         13         —           1,329         3,294   

Daunia

     (kt     649         698         616         626         684         2,624         2,383   

Caval Ridge

     (kt     888         810         857         816         1,118         3,601         3,064   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

     (kt     9,023         8,087         8,207         7,894         9,225         33,413         33,862   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Billiton Mitsui Coal (3)

                      

South Walker Creek

     (kt     1,384         1,511         1,275         1,268         1,382         5,436         5,293   

Poitrel

     (kt     986         836         916         747         963         3,462         3,466   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Billiton Mitsui Coal

     (kt     2,370         2,347         2,191         2,015         2,345         8,898         8,759   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

     (kt     11,393         10,434         10,398         9,909         11,570         42,311         42,621   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Coking coal

     (kt     7,616         7,015         7,642         7,348         8,059         30,064         30,419   

Weak coking coal

     (kt     2,850         3,246         2,695         2,681         3,196         11,818         11,099   

Thermal coal

     (kt     375         86         290         241         310         927         771   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     10,841         10,347         10,627         10,270         11,565         42,809         42,289   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)    Production figures include some thermal coal.

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

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

       

       

       

Haju, Indonesia (1)

                      

Production

     (kt     —           15         87         167         260         529         —     

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

       

New Mexico, USA

                      

Production

                      

Navajo Coal (1)

     (kt     1,395         1,270         1,403         694         632         3,999         4,858   

San Juan Coal (2)

     (kt     1,179         1,406         1,229         418         —           3,053         5,165   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     2,574         2,676         2,632         1,112         632         7,052         10,023   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales thermal coal - local utility

       2,539         2,671         2,661         1,106         613         7,051         10,031   

(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.

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

        

       

NSW Energy Coal, Australia

                      

Production

     (kt     5,086         4,644         4,277         4,189         3,991         17,101         19,698   

Sales

                      

Export thermal coal

     (kt     4,550         4,130         5,081         3,410         3,993         16,614         18,859   

Inland thermal coal

     (kt     286         253         229         234         440         1,156         1,222   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     4,836         4,383         5,310         3,644         4,433         17,770         20,081   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                      

Production

     (kt     2,944         2,527         2,628         2,610         2,329         10,094         11,291   

Sales thermal coal - export

     (kt     2,766         2,853         2,565         2,339         2,844         10,601         11,580   

 

 

BHP Billiton Operational Review for the year ended 30 June 2016

   18


PRODUCTION AND SALES REPORT

 

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

Other

                      

Nickel production is reported on the basis of saleable product

                   

Nickel West, Australia

                      

Production

                      

Nickel contained in concentrate

   (kt)     1.5         0.7         0.2         0.3         0.3         1.5         7.3   

Nickel contained in finished matte

   (kt)     3.9         5.0         2.6         2.8         5.8         16.2         24.6   

Nickel metal

   (kt)     13.9         16.4         12.4         16.9         17.3         63.0         58.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel production

   (kt)     19.3         22.1         15.2         20.0         23.4         80.7         89.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Nickel contained in concentrate

   (kt)     1.6         0.7         0.2         0.3         0.3         1.5         7.3   

Nickel contained in finished matte

   (kt)     4.4         4.2         3.7         2.7         5.9         16.5         24.8   

Nickel metal

   (kt)     15.7         15.6         12.1         17.8         17.4         62.9         58.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel sales

   (kt)     21.7         20.5         16.0         20.8         23.6         80.9         90.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the year ended 30 June 2016

   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: July 20, 2016     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary