UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

January 25, 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    25 January 2017
Release Number    2/17

BHP BILLITON OPERATIONAL REVIEW

FOR THE HALF YEAR ENDED 31 DECEMBER 2016

 

  Record production for the half year was achieved at Western Australia Iron Ore (WAIO).

 

  Full year production guidance maintained for Petroleum, Iron Ore and Coal.

 

  Production guidance for Copper reduced to approximately 1.62 Mt, two per cent below prior guidance, reflecting lower volumes now expected at Olympic Dam.

 

  In Petroleum, following the successful bid for Trion in Mexico and positive drilling results at LeClerc and Caicos, an US$820 million exploration program is now planned for the current financial year.

 

  All major projects under development are tracking to plan. The Bass Strait Longford Gas Conditioning Plant project achieved initial gas sales in the December 2016 quarter. Mechanical completion was achieved at the Escondida Water Supply project with first water expected in the March 2017 quarter.

 

  Underlying attributable profit(1) in the December 2016 half year is expected to include gains related to asset divestments in a range of approximately US$150 million to US$200 million (details on page 2).

 

Production

   Dec H16      vs Dec H15      

Petroleum (MMboe)

     106         (15 %)    Deferral of development activity in Onshore US for value and natural field decline in Conventional assets.

Copper (kt)

     712         (7 %)    Reduced volumes at Olympic Dam, maintenance at Pampa Norte and lower copper grades as expected at Antamina.

Iron ore(2) (Mt)

     118         4   Record WAIO volumes for the half year due to the continued ramp-up of additional capacity at Jimblebar.

Metallurgical coal(2) (Mt)

     21         1   Strong performance at four Queensland Coal mines more than offset the cessation of production at Crinum.

Energy coal(2) (Mt)

     14         (4 %)    Lower production at NSWEC partially offset by strong performance at Cerrejón.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “We have performed well during a period of higher prices, with record iron ore volumes achieved at WAIO. Our simpler organisational structure has freed our assets to focus on what matters most and to deliver safer and more productive operations. Our consistent delivery of operating and capital productivity, and strict adherence to our capital allocation framework have positioned us to maximise shareholder value.

“In Petroleum, we will accelerate our counter-cyclical oil exploration efforts this year. Our successful Trion bid leaves us in a leading position to develop the newly opened Mexican acreage in the Gulf of Mexico, where we can leverage our core expertise. We are encouraged by recent positive drilling results at the LeClerc well in Trinidad and Tobago and the Caicos well in the Gulf of Mexico. After the first successful rig, our Onshore US gas hedging program will also be expanded to secure attractive returns.”

 

 

   1


Summary

Operational performance

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

 

Production

   Dec H16      Dec Q16      Dec H16
vs
Dec H15
    Dec Q16
vs
Dec Q15
    Dec Q16
vs
Sep Q16
    Previous
FY17
guidance
     Current
FY17
guidance
 

Petroleum (MMboe)

     105.9         51.4         (15 %)      (15 %)      (6 %)      200 - 210         200 - 210   

Onshore US (MMboe)

     40.0         19.4         (31 %)      (32 %)      (6 %)      77 - 83         77 - 83   

Conventional (MMboe)

     65.9         32.0         (1 %)      1     (6 %)      123 - 127         123 - 127   

Copper (kt)

     712         357         (7 %)      (7 %)      1     1,660         1,620   

Escondida (kt)

     452         234         0     6     8     1,070         1,070   

Other copper(i) (kt)

     260         123         (16 %)      (25 %)      (10 %)      590         550   

Iron ore(ii) (Mt)

     118         60         4     9     4     228 - 237         228 - 237   

WAIO (100% basis) (Mt)

     136         70         4     9     4     265 - 275         265 - 275   

Metallurgical coal(ii) (Mt)

     21         11         1     2     1     44         44   

Energy coal(ii) (Mt)

     14         7         (4 %)      (4 %)      (3 %)      30         30   

 

(i) Other copper comprises Pampa Norte, Olympic Dam and Antamina.
(ii) Excludes production from Samarco, New Mexico Coal and Haju (IndoMet Coal).

Major development projects

During the December 2016 quarter, the Bass Strait Longford Gas Conditioning Plant project achieved initial gas sales, under budget, and production is ramping up to full rate. In December 2016, mechanical completion was achieved at the Escondida Water Supply project with first water expected to be delivered in the March 2017 quarter, on schedule and budget. These two projects will not be reported in future Operational Reviews.

BHP Billiton has two major projects under development in Petroleum and Potash, with a combined budget of US$2.9 billion over the life of the projects. Both projects remain on time and on budget.

Corporate update

BHP Billiton expects Underlying attributable profit(1) in the December 2016 half year to include gains related to asset divestments in a range of approximately US$150 million to US$200 million (Underlying EBITDA(1) impact of US$175 million to US$225 million).

In addition, the Group expects to record an exceptional item of US$164 million (US$115 million post-tax) related to the cancellation of the Caroona exploration licence and subsequent reimbursement received during the December 2016 half year.

On 20 December 2016, Samarco, Vale and BHP Billiton Brasil agreed a non-binding term sheet outlining the general terms and conditions for the use of Vale’s Timbopeba pit by Samarco to deposit its tailings, should Samarco restart. A definitive agreement remains subject to a successful commercial negotiation, due diligence and relevant government approvals. These processes are likely to occur during the 2017 calendar year.

On 18 January 2017, Samarco, Vale and BHP Billiton Brasil have also entered into a preliminary agreement with the Federal Prosecutors’ Office in Brazil in relation to the Fundão tailings dam failure on 5 November 2015(3) (Preliminary Agreement). The Preliminary Agreement outlines the process and timeline for negotiation of a settlement of the BRL 155 billion (approximately US$47.5 billion) Civil Claim relating to the dam failure.

For the December 2016 half year, we are not yet in a position to provide an update to the ongoing potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. Any financial impacts will continue to be classified as an exceptional item.

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

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    2


Marketing update

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

 

Average realised prices(i)

   Dec H16      Dec H15      Jun H16      FY16      Dec H16
vs
Dec H15
    Dec H16
vs
Jun H16
    Dec H16
vs

FY16
 

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

     45         42         37         39         7     22     15

Natural gas (US$/Mscf)(ii)

     3.21         2.91         2.74         2.83         10     17     13

US natural gas (US$/Mscf)

     2.79         2.35         1.96         2.16         19     42     29

LNG (US$/Mscf)

     6.35         8.24         7.12         7.71         (23 %)      (11 %)      (18 %) 

Copper (US$/lb)

     2.41         2.12         2.16         2.14         14     12     13

Iron ore (US$/wmt, FOB)

     55         43         44         44         28     25     25

Hard coking coal (US$/t)

     179         82         83         83         118     116     116

Weak coking coal (US$/t)

     122         67         70         69         82     74     77

Thermal coal (US$/t)(iii)

     74         49         46         48         51     61     54

Nickel metal (US$/t)

     10,581         9,926         8,792         9,264         7     20     14

 

(i) Based on provisional, unaudited estimates. Prices exclude third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted.
(ii) Includes internal sales.
(iii) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

At 31 December 2016, the Group had 267 kt of outstanding copper sales that were revalued at a weighted average price of US$2.51 per pound. The final price of these sales will be determined over the remainder of the 2017 financial year. In addition, 316 kt of copper sales from the 2016 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will increase earnings before interest and tax by US$37 million in the December 2016 half year.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    3


Petroleum

Production

 

     Dec H16      Dec Q16      Dec H16
vs
Dec H15
    Dec Q16
vs

Dec Q15
    Dec Q16
vs

Sep Q16
 

Crude oil, condensate and natural gas liquids (MMboe)

     48.2         23.9         (20 %)      (20 %)      (1 %) 

Natural gas (bcf)

     347         165         (10 %)      (10 %)      (9 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production (MMboe)

     105.9         51.4         (15 %)      (15 %)      (6 %) 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total petroleum production – Total petroleum production for the December 2016 half year decreased by 15 per cent to 105.9 MMboe. Guidance for the 2017 financial year remains unchanged at between 200 and 210 MMboe, comprising Conventional volumes between 123 and 127 MMboe and Onshore US volumes between 77 and 83 MMboe.

Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production for the December 2016 half year decreased by 20 per cent to 48.2 MMboe.

Onshore US liquids volumes decreased by 37 per cent to 16.4 MMboe as a result of a reduction in activity in the Black Hawk for value and natural field decline, which more than offset increased liquids production from the Permian.

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

Natural gas – Natural gas production for the December 2016 half year declined by 10 per cent to 347 bcf.

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

On 5 September 2016, BHP Billiton announced the sale of 50 per cent of its interest in the undeveloped Scarborough area gas fields. ExxonMobil will remain operator of Scarborough and operatorship of North Scarborough will transfer from BHP Billiton to Woodside. The sale was completed during the December 2016 quarter.

Projects

 

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.    Initial gas sales achieved in Q4 CY16, under budget and production ramping up to full rate.

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 27% complete.

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

During the December 2016 quarter, BP (the operator) sanctioned the Mad Dog Phase 2 project. Approval from BHP Billiton´s Board will be sought during the March 2017 quarter.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    4


Onshore US development activity

Onshore US drilling and development expenditure for the December 2016 half year was approximately US$273 million. Our operated rig count increased from two to three during the December 2016 quarter with deployment of a rig in the Haynesville in October 2016, following the successful execution of our hedging pilot. Additional hedge activity during the quarter has led to approval of a second rig in the Haynesville with operations expected to commence in March 2017. Completions activity in the Black Hawk was accelerated in the December 2016 quarter to drawdown drilled and uncompleted inventory as market conditions improved. We are currently progressing trials in the Black Hawk, testing the potential for staggered wells to increase recovery, larger frac jobs to improve productivity and the potential of the Upper Eagle Ford horizon. We expect early results of these trials to be known during the September 2017 quarter.

 

December 2016 half year         Liquids focused areas      Gas focused areas         

(December 2015 half year)

        Eagle Ford      Permian      Haynesville      Fayetteville      Total  

Capital expenditure(i)

   US$ billion      0.1 (0.6)         0.1 (0.2)         0.0 (0.0)         0.0 (0.0)         0.3 (0.8)   

Rig allocation

   At period end      1 (5)         1 (2)         1 (0)         0 (0)         3 (7)   

Net wells drilled and completed(ii)

   Period total      43 (74)         15 (19)         0 (4)         2 (10)         60 (107)   

Net productive wells

   At period end      942 (912)         118 (94)         394 (409)         1,042 (1,085)         2,496 (2,500)   

 

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

Petroleum exploration

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

 

Well

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

Burrokeet-1

   Trinidad & Tobago
Block 23a
   Oil    70%
(Operator)
   8 August
2016
     1,923 m         3,337 m       Plugged and abandoned

Burrokeet-2

   Trinidad & Tobago
Block 23a
   Oil    70%
(Operator)
   18 August
2016
     1,923 m         7,348 m       Plugged and abandoned

The Burrokeet-1 well encountered mechanical difficulty shortly after spud and was plugged and abandoned. Non-commercial hydrocarbons were encountered at Burrokeet-2 with analysis ongoing. Phase 1 of the Trinidad and Tobago deep water drilling campaign has concluded. Following the oil discovery in the Shenzi North and Caicos wells in the central Gulf of Mexico, the Invictus rig has been mobilised for drilling the Wildling well in the March 2017 quarter.

During the December 2016 quarter, BHP Billiton won the bid to acquire a 60 per cent participating interest in and operatorship of blocks AE-0092 and AE-0093, containing the Trion discovered resource, in Mexico. Subject to satisfaction of conditions, BHP Billiton anticipates signing the relevant agreements in the March 2017 quarter.

In the US Gulf of Mexico, we increased acreage position and operatorship in the Southern Green Canyon Miocene and Western Gulf of Mexico Paleogene key focus areas. The regulator awarded all 12 of the leases for which BHP Billiton was the apparent high bidder in the Western Gulf of Mexico Lease Sale 248. In addition, BHP Billiton cross-assigned nine leases in Green Canyon with Statoil Gulf of Mexico LLC and Repsol E&P USA Inc. The cross-assignment results in BHP Billiton having a 65 per cent interest and operatorship over the nine leases, ahead of drilling the Scimitar exploration well in the June 2017 quarter. The regulator also approved assignment of BHP Billiton’s 60 per cent interest in two leases in Green Canyon (GC 633 and 676) to Chevron U.S.A. Inc.

In Australia, seismic work commenced in the Exmouth sub-basin following regulatory approval of the Good Standing Agreement in relation to the WA-475-P permit. The WA-335-P permit was officially relinquished after receiving consent from the regulator to surrender the permit.

Petroleum exploration expenditure for the December 2016 half year was US$364 million, of which US$217 million was expensed. An US$820 million exploration program is now planned for the 2017 financial year, an increase of US$120 million from prior guidance, following the successful bid for Trion in Mexico and positive drilling results at the LeClerc well in Trinidad and Tobago and the Caicos well in the Gulf of Mexico.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    5


Copper

Production

 

     Dec H16      Dec Q16      Dec H16
vs
Dec H15
    Dec Q16
vs
Dec Q15
    Dec Q16
vs
Sep Q16
 

Copper (kt)

     712         357         (7 %)      (7 %)      1

Zinc (t)

     37,773         22,406         2     36     46

Uranium oxide concentrate (t)

     1,976         1,060         (22 %)      (22 %)      16

Copper – Total copper production for the December 2016 half year decreased by seven per cent to 712 kt. Production for the 2017 financial year is now expected to be approximately 1.62 Mt, two per cent below prior guidance, and reflects a reduction in volumes at Olympic Dam.

Escondida copper production for the December 2016 half year was unchanged at 452 kt as higher concentrate production was offset by lower cathode production. During the period there was a four day site-wide suspension of operations to conduct an investigation following a fatality on 21 October 2016. Production guidance for Escondida remains unchanged at 1,070 kt, with volumes weighted to the second half of the 2017 financial year. The current Collective Agreement with Escondida N°1 Union expires on 31 January 2017 and negotiations for a new agreement are in progress. The commissioning of the Escondida Water Supply project and the planned ramp-up of the Los Colorados Extension project late in the 2017 financial year, will enable full utilisation of three concentrators during the 2018 financial year.

Pampa Norte copper production for the December 2016 half year decreased by eight per cent to 116 kt, with an unplanned outage offsetting improved recoveries at Cerro Colorado, and planned maintenance offsetting record ore milled at Spence in the December 2016 quarter. Copper production decreased by 13 per cent from the September 2016 quarter mainly due to suspension of the processing operations at the Cerro Colorado Ore Handling Plant 2 following the failure of a transfer chute. Pampa Norte copper production guidance for the 2017 financial year remains unchanged and is expected to be higher than the prior year supported by the completion of the Spence Recovery Optimisation project which achieved an annualised production run rate of 200 ktpa in the month of December 2016.

Olympic Dam copper production for the December 2016 half year decreased by 30 per cent to 78 kt following planned maintenance and a state-wide power outage which commenced on 28 September 2016. Power was safely restored on 14 October 2016 and operations were fully ramped-up in the December 2016 quarter. Olympic Dam copper production of approximately 160 kt to 170 kt is now expected for the 2017 financial year. Lower volumes reflect the power outage and unplanned maintenance at the refinery which commenced at the end of December 2016, ahead of the major smelter maintenance campaign planned for the September 2017 quarter.

Antamina copper production for the December 2016 half year decreased by nine per cent to 66 kt reflecting lower copper grades as mining progressed through a zinc rich ore zone, consistent with the mine plan. Guidance for the 2017 financial year remains unchanged at 130 kt. Zinc production for the December 2016 half year increased by two per cent to 38 kt with guidance for the 2017 financial year unchanged at 90 kt.

Project

 

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.    Mechanical completion achieved with first water expected in the March 2017 quarter. Project on schedule and budget. The overall project is 99% complete.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    6


Iron Ore

 

Production             
     Dec H16      Dec Q16      Dec H16
vs
Dec H15
    Dec Q16
vs
Dec Q15
    Dec Q16
vs
Sep Q16
 

Iron ore(i) (kt)

     117,636         60,049         4     9     4

 

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

Iron ore – Total iron ore production for the December 2016 half year increased by four per cent to 118 Mt or 136 Mt on a 100 per cent basis. Guidance for the 2017 financial year remains unchanged at between 228 and 237 Mt or between 265 and 275 Mt on a 100 per cent basis, excluding production from Samarco.

WAIO achieved record production for the December 2016 half year as a result of the continued ramp-up of additional capacity at Jimblebar with the commissioning of a new primary crusher and additional conveying capacity. Combined with improved track reliability and lower scheduled maintenance at Yandi, volumes increased by four per cent from the September 2016 quarter. The rail renewal and maintenance program, which will support the supply chain’s long-term reliability, is progressing ahead of schedule and is now expected to be completed in the June 2017 quarter.

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

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    7


Coal

 

Production             
     Dec H16      Dec Q16      Dec H16
vs
Dec H15
    Dec Q16
vs
Dec Q15
    Dec Q16
vs
Sep Q16
 

Metallurgical coal(i) (kt)

     21,142         10,613         1     2     1

Energy coal(ii) (kt)

     13,531         6,651         (4 %)      (4 %)      (3 %) 

 

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

Metallurgical coal – Metallurgical coal production for the December 2016 half year increased by one per cent to 21 Mt. Guidance for the 2017 financial year remains unchanged at 44 Mt.

Strong performances at Broadmeadow, Peak Downs, Saraji and Caval Ridge, underpinned by additional stripping and higher wash-plant utilisation, more than offset the completion of longwall mining at Crinum in the December 2015 quarter, adverse weather conditions in the September 2016 quarter and lower yield at South Walker Creek.

Record production at Peak Downs was achieved during the December 2016 quarter with coal opportunistically trucked to Caval Ridge in order to utilise latent wash-plant capacity.

Energy coal – Energy coal production for the December 2016 half year decreased by four per cent to 14 Mt. Guidance for the 2017 financial year remains unchanged at 30 Mt.

New South Wales Energy Coal recorded improved underlying truck utilisation, however production declined by 13 per cent as a higher drawdown of in-pit and Run-of-Mine (ROM) inventories benefitted the December 2015 half year. This was partially offset by an 11 per cent increase in volumes at Cerrejón compared to the December 2015 half year which was constrained by drought conditions.

The divestment of Navajo Coal was completed on 29 July 2016, with management of the mine transferred to Navajo Transitional Energy Company on 31 December 2016.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    8


Other

 

Nickel production             
     Dec H16      Dec Q16      Dec H16
vs
Dec H15
    Dec Q16
vs
Dec Q15
    Dec Q16
vs
Sep Q16
 

Nickel (kt)

     40.9         22.1         10     45     18

Nickel – Nickel West production for the December 2016 half year increased by 10 per cent to 40.9 kt. Ongoing debottlenecking activities have resulted in record production at the Kwinana refinery. Nickel production guidance for the 2017 financial year remains unchanged and is expected to increase by approximately 10 per cent from the prior year.

Potash project

 

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 64% complete and on budget. Both shafts have been safely excavated and lined through the Blairmore aquifer. The engineering contract for feasibility studies of Jansen Stage 1 has been awarded.

Minerals exploration

Minerals exploration expenditure for the December 2016 half year was US$75 million, of which US$75 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Peru, Canada, South Australia and the South-West United States.

 

 

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

The following footnotes apply to this Operational Review:

 

(1)  Underlying EBITDA and Underlying attributable profit are used to reflect the underlying performance of BHP Billiton. Underlying EBITDA is earnings before net finance costs, taxation, depreciation, amortisation, impairment and any exceptional items. Underlying attributable profit is Attributable profit excluding any exceptional items.
(2) Excludes production from Samarco, Haju (IndoMet Coal) and New Mexico Coal.
(3)  Under the Preliminary Agreement, Samarco, Vale and BHP Billiton Brasil will provide, subject to Court approval, total security of BRL 2.2 billion (approximately US$675 million, 100 per cent basis) to support the payments for the social and environmental remediation programs under the Framework Agreement (Interim Security). The Interim Security comprises a charge over Samarco’s assets of BRL 800 million (approximately US$245 million), insurance bonds of BRL 1.3 billion (approximately US$400 million), and liquid assets of BRL 100 million (approximately US$30 million). During the period that the Interim Security is in place, it will, subject to Court approval, replace the BRL 1.2 billion injunction (approximately US$370 million) issued in the BRL 20 billion Civil Claim. In addition, the applications by the Federal Prosecutors for the BRL 7.7 billion injunction (approximately US$2.4 billion) in the BRL 155 billion Civil Claim and the BRL 20 billion asset freezing order (approximately US$6 billion) in the criminal proceedings commenced by the Federal Prosecutors in Brazil against Samarco, Vale, BHP Billiton Brasil and others will be suspended. The parties have agreed that the Interim Security will remain in place until the earlier of 30 June 2017 and the date that a final settlement arrangement is agreed between the Federal Prosecutors’ Office in Brazil, and Samarco, Vale and BHP Billiton Brasil. If a final settlement arrangement is not agreed by 30 June 2017, the Federal Prosecutors may request reinstatement by the Court of the BRL 1.2 billion (approximately US$370 million) injunction.

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

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    9


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

 

Media Relations

 

Australia and Asia

 

Matthew Martyn-Jones

Tel: +61 3 9609 2360 Mobile +61 419 418 394

Email: Matthew.Martyn-Jones@bhpbilliton.com

 

Paul Hitchins

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

Email: Paul.Hitchins@bhpbilliton.com

 

Fiona Hadley

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Email: Fiona.Hadley@bhpbilliton.com

 

Amanda Saunders

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Email: Amanda.Saunders@bhpbilliton.com

 

United Kingdom and South Africa

 

Ruban Yogarajah

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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

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Andrew Gunn

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Email: Andrew.Gunn@bhpbilliton.com

 

United Kingdom and South Africa

 

Rob Clifford

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Email: Rob.Clifford@bhpbilliton.com

 

Elisa Morniroli

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Email: Elisa.Morniroli@bhpbilliton.com

 

Americas

 

James Wear

Tel: +1 713 993 3737 Mobile: +1 347 882 3011

Email: James.Wear@bhpbilliton.com

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

 

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BHP Billiton Operational Review for the half year ended 31 December 2016    10


Production summary

 

           Quarter ended      Year to date  
     BHP Billiton
interest
    Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Petroleum (1)

                      

Petroleum

                      

Crude oil, condensate and NGL (Mboe)

                      

Onshore US

       12,805         12,454         9,469         8,288         8,143         16,431         26,258   

Conventional

       16,976         16,727         16,896         15,959         15,768         31,727         34,235   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       29,781         29,181         26,365         24,247         23,911         48,158         60,493   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas (bcf)

                      

Onshore US

       94.4         89.9         82.0         73.9         67.8         141.7         192.6   

Conventional

       88.4         91.5         95.7         107.8         97.1         204.9         193.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       182.8         181.4         177.7         181.7         164.9         346.6         385.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum production (MMboe)

       60.2         59.4         56.0         54.5         51.4         105.9         124.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Copper (2)

                      

Copper

                      

Payable metal in concentrate (kt)

                      

Escondida (3)

     57.5     131.7         174.9         182.7         147.0         162.6         309.6         291.3   

Antamina

     33.8     37.2         35.4         38.7         34.1         32.0         66.1         72.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       168.9         210.3         221.4         181.1         194.6         375.7         363.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cathode (kt)

                      

Escondida (3)

     57.5     89.3         84.8         85.3         70.5         71.5         142.0         160.2   

Pampa Norte (4)

     100     69.0         59.8         65.8         62.1         53.8         115.9         125.8   

Olympic Dam

     100     57.4         49.8         40.7         40.9         37.2         78.1         112.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       215.7         194.4         191.8         173.5         162.5         336.0         398.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                      
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total copper (kt)

       384.6         404.7         413.2         354.6         357.1         711.7         761.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Lead

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     1,024         1,193         645         1,146         1,220         2,366         1,881   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,024         1,193         645         1,146         1,220         2,366         1,881   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Zinc

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     16,454         11,913         6,474         15,367         22,406         37,773         37,051   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       16,454         11,913         6,474         15,367         22,406         37,773         37,051   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gold

                      

Payable metal in concentrate (troy oz)

                      

Escondida (3)

     57.5     17,889         31,408         35,894         27,561         37,784         65,345         41,694   

Olympic Dam (refined gold)

     100     39,299         29,028         20,010         24,366         29,651         54,017         68,648   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       57,188         60,436         55,904         51,927         67,435         119,362         110,342   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Silver

                      

Payable metal in concentrate (troy koz)

                      

Escondida (3)

     57.5     962         1,544         1,874         1,229         1,323         2,552         2,143   

Antamina

     33.8     1,636         1,751         1,558         1,345         1,446         2,791         3,402   

Olympic Dam (refined silver)

     100     265         174         232         163         188         351         511   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       2,863         3,469         3,664         2,737         2,957         5,694         6,056   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Uranium

                      

Payable metal in concentrate (t)

                      

Olympic Dam

     100     1,352         961         876         916         1,060         1,976         2,526   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       1,352         961         876         916         1,060         1,976         2,526   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Molybdenum

                      

Payable metal in concentrate (t)

                      

Antamina

     33.8     232         227         562         561         225         786         324   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       232         227         562         561         225         786         324   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    11


Production summary

 

           Quarter ended      Year to date  
     BHP Billiton
interest
    Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Iron Ore

                      

Iron Ore

                      

Production (kt) (5)

                      

Newman

     85     17,003         15,817         15,115         18,008         17,751         35,759         35,009   

Area C Joint Venture

     85     11,723         11,002         11,911         12,384         12,179         24,563         23,886   

Yandi Joint Venture

     85     15,960         16,204         18,325         15,729         17,555         33,284         32,846   

Jimblebar (6)

     85     4,852         5,472         5,304         6,057         5,178         11,235         8,114   

Wheelarra

     85     5,757         4,562         4,971         5,409         7,386         12,795         13,016   

Samarco

     50     1,665         —           —           —           —           —           5,404   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       56,960         53,057         55,626         57,587         60,049         117,636         118,275   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Coal

                      

Metallurgical coal

                      

Production (kt) (7)

                      

BMA

     50     8,207         7,894         9,225         8,384         8,684         17,068         16,294   

BHP Billiton Mitsui Coal (8)

     80     2,191         2,015         2,345         2,145         1,929         4,074         4,538   

Haju (9)

     75     87         167         260         102         27         129         102   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       10,485         10,076         11,830         10,631         10,640         21,271         20,934   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Energy coal

                      

Production (kt)

                      

USA

     100     2,632         1,112         632         451         —           451         5,308   

Australia

     100     4,277         4,189         3,991         3,952         3,851         7,803         8,921   

Colombia

     33.3     2,628         2,610         2,329         2,928         2,800         5,728         5,155   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       9,537         7,911         6,952         7,331         6,651         13,982         19,384   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other

                      

Nickel

                      

Saleable production (kt)

                      

Nickel West

     100     15.2         20.0         23.4         18.8         22.1         40.9         37.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

       15.2         20.0         23.4         18.8         22.1         40.9         37.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

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

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    12


Production and sales report

 

         Quarter ended      Year to date  
         Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Petroleum (1)

                      

Bass Strait

                      

Crude oil and condensate

   (Mboe)     1,390         1,813         1,745         1,922         1,770         3,692         3,267   

NGL

   (Mboe)     1,307         1,455         1,831         2,102         1,460         3,562         3,398   

Natural gas

   (bcf)     23.9         30.3         38.1         41.9         31.3         73.2         62.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     6.7         8.3         9.9         11.0         8.4         19.5         17.1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

North West Shelf

                      

Crude oil and condensate

   (Mboe)     1,423         1,124         925         1,486         1,468         2,954         2,785   

NGL

   (Mboe)     235         259         241         292         263         555         462   

Natural gas

   (bcf)     34.9         33.8         27.6         38.7         36.9         75.6         68.8   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     7.5         7.0         5.8         8.2         7.9         16.1         14.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pyrenees

                      

Crude oil and condensate

   (Mboe)     2,331         2,093         2,097         1,676         1,726         3,402         4,427   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     2.3         2.1         2.1         1.7         1.7         3.4         4.4   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Australia (2)

                      

Crude oil and condensate

   (Mboe)     9         8         9         10         8         18         22   

Natural gas

   (bcf)     14.4         16.2         17.2         17.5         17.1         34.6         31.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     2.4         2.7         2.9         2.9         2.9         5.8         5.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Atlantis (3)

                      

Crude oil and condensate

   (Mboe)     4,257         4,056         4,058         3,054         3,263         6,317         7,894   

NGL

   (Mboe)     278         270         269         208         207         415         509   

Natural gas

   (bcf)     2.0         1.9         1.9         1.5         1.6         3.1         3.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     4.9         4.6         4.6         3.5         3.7         7.2         9.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mad Dog (3)

                      

Crude oil and condensate

   (Mboe)     648         880         1,134         950         1,170         2,120         1,236   

NGL

   (Mboe)     41         41         52         36         52         88         64   

Natural gas

   (bcf)     0.1         0.1         0.2         0.1         0.2         0.3         0.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.7         0.9         1.2         1.0         1.3         2.3         1.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Shenzi (3)

                      

Crude oil and condensate

   (Mboe)     3,185         3,094         2,813         2,632         2,692         5,324         6,462   

NGL

   (Mboe)     269         206         192         94         131         225         505   

Natural gas

   (bcf)     0.8         0.6         0.6         0.5         0.5         1.0         1.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     3.6         3.4         3.1         2.8         2.9         5.7         7.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Eagle Ford (4)

                      

Crude oil and condensate

   (Mboe)     7,156         7,018         4,949         3,871         4,008         7,879         14,856   

NGL

   (Mboe)     3,806         3,649         2,717         2,268         2,159         4,427         7,605   

Natural gas

   (bcf)     25.4         25.1         19.5         16.5         15.2         31.7         51.2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     15.2         14.9         10.9         8.9         8.7         17.6         31.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Permian (4)

                      

Crude oil and condensate

   (Mboe)     1,354         1,499         1,410         1,415         1,378         2,793         2,835   

NGL

   (Mboe)     488         288         393         734         580         1,314         961   

Natural gas

   (bcf)     3.4         2.4         4.9         4.4         4.4         8.8         7.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     2.4         2.2         2.6         2.9         2.7         5.6         5.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Haynesville (4)

                      

Crude oil and condensate

   (Mboe)     1         —           —           —           3         3         1   

NGL

   (Mboe)     —           —           —           —           15         15         —     

Natural gas

   (bcf)     34.7         34.4         31.1         28.2         24.0         52.2         71.1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     5.8         5.7         5.2         4.7         4.0         8.7         11.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fayetteville (4)

                      

Natural gas

   (bcf)     30.9         28.0         26.5         24.8         24.2         49.0         63.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     5.2         4.7         4.4         4.1         4.0         8.2         10.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    13


Production and sales report

 

         Quarter ended      Year to date  
         Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Petroleum (1) (continued)

                      

Trinidad/Tobago

                      

Crude oil and condensate

   (Mboe)     185         120         162         140         156         296         427   

Natural gas

   (bcf)     7.4         7.4         8.6         6.4         8.4         14.8         15.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     1.4         1.4         1.6         1.2         1.6         2.8         2.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Americas (3) (5)

                      

Crude oil and condensate

   (Mboe)     360         334         308         275         269         544         721   

NGL

   (Mboe)     16         12         10         1         5         6         28   

Natural gas

   (bcf)     0.2         0.2         0.2         0.1         0.1         0.2         0.4   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.4         0.4         0.4         0.3         0.3         0.6         0.8   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

UK

                      

Crude oil and condensate

   (Mboe)     74         65         76         69         63         132         133   

NGL

   (Mboe)     27         10         10         22         49         71         23   

Natural gas

   (bcf)     1.0         1.0         1.3         1.1         1.0         2.1         2.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.3         0.2         0.3         0.3         0.3         0.6         0.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Algeria

                      

Crude oil and condensate

   (Mboe)     922         887         964         990         1,016         2,006         1,838   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.9         0.9         1.0         1.0         1.0         2.0         1.8   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Pakistan (6)

                      

Crude oil and condensate

   (Mboe)     19         —           —           —           —           —           42   

Natural gas

   (bcf)     3.7         —           —           —           —           —           7.9   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

   (MMboe)     0.6         —           —           —           —           —           1.4   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total petroleum products

                      

Crude oil and condensate

                      

Onshore US

   (Mboe)     8,511         8,517         6,359         5,286         5,389         10,675         17,692   

Conventional (7)

   (Mboe)     14,803         14,474         14,291         13,204         13,601         26,805         29,246   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     23,314         22,991         20,650         18,490         18,990         37,480         46,938   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NGL

                      

Onshore US

   (Mboe)     4,294         3,937         3,110         3,002         2,754         5,756         8,566   

Conventional

   (Mboe)     2,173         2,253         2,605         2,755         2,167         4,922         4,989   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (Mboe)     6,467         6,190         5,715         5,757         4,921         10,678         13,555   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas

                      

Onshore US

   (bcf)     94.4         89.9         82.0         73.9         67.8         141.7         192.6   

Conventional

   (bcf)     88.4         91.5         95.7         107.8         97.1         204.9         193.0   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   (bcf)     182.8         181.4         177.7         181.7         164.9         346.6         385.6   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Onshore US volumes are net of mineral holder royalties.
(5) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(6) BHP Billiton completed the sale of the Pakistan gas business on 31 December 2015.
(7) September 2015 includes (8) Mboe for the finalisation adjustment following the cessation of production at Stybarrow on 26 June 2015.

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    14


Production and sales report

 

          Quarter ended     Year to date  
          Dec
2015
    Mar
2016
    Jun
2016
    Sep
2016
    Dec
2016
    Dec
2016
    Dec
2015
 

Copper

               

Metals production is payable metal unless otherwise stated.

  

Escondida, Chile (1)

               

Material mined

    (kt)        109,200        105,970        108,037        106,504        90,863        197,367        219,267   

Sulphide ore milled

    (kt)        18,076        21,188        22,905        20,787        19,866        40,653        40,896   

Average copper grade

    (%)        0.99     0.99     0.94     0.87     1.02     0.94     1.00

Production ex mill

    (kt)        142.8        175.8        181.7        153.2        168.6        321.8        312.5   

Production

               

Payable copper

    (kt)        131.7        174.9        182.7        147.0        162.6        309.6        291.3   

Copper cathode (EW)

    (kt)        89.3        84.8        85.3        70.5        71.5        142.0        160.2   

- Oxide leach

    (kt)        32.1        31.0        31.3        26.8        24.4        51.2        55.5   

- Sulphide leach

    (kt)        57.2        53.8        54.0        43.7        47.1        90.8        104.7   

Payable gold concentrate

    (troy oz)        17,889        31,408        35,894        27,561        37,784        65,345        41,694   

Payable silver concentrate

    (troy koz)        962        1,544        1,874        1,229        1,323        2,552        2,143   

Sales

               

Payable copper

    (kt)        123.8        181.7        186.6        134.9        172.7        307.6        281.4   

Copper cathode (EW)

    (kt)        101.1        80.3        83.8        65.6        71.8        137.4        164.9   

Payable gold concentrate

    (troy oz)        17,889        31,408        35,894        27,561        37,784        65,345        41,694   

Payable silver concentrate

    (troy koz)        962        1,544        1,874        1,229        1,323        2,552        2,143   

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

       

Pampa Norte, Chile

               

Cerro Colorado

               

Material mined

    (kt)        14,930        12,415        12,453        13,011        14,286        27,297        28,800   

Ore milled

    (kt)        4,856        4,012        4,375        3,241        3,342        6,583        9,559   

Average copper grade

    (%)        0.82     0.84     0.80     0.68     0.65     0.66     0.73

Production

               

Copper cathode (EW)

    (kt)        18.8        20.0        24.8        17.1        12.1        29.2        32.5   

Sales

               

Copper cathode (EW)

    (kt)        19.7        18.6        25.2        16.4        13.7        30.1        32.7   

Spence

               

Material mined

    (kt)        21,593        22,549        21,124        23,638        22,635        46,273        44,515   

Ore milled

    (kt)        5,146        4,355        4,836        4,713        5,187        9,900        10,065   

Average copper grade

    (%)        1.30     1.39     1.22     1.17     1.19     1.18     1.35

Production

               

Copper cathode (EW)

    (kt)        50.2        39.8        41.0        45.0        41.7        86.7        93.3   

Sales

               

Copper cathode (EW)

    (kt)        56.1        38.4        40.9        41.2        41.5        82.7        94.3   

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    15


Production and sales report

 

           Quarter ended     Year to date  
           Dec
2015
    Mar
2016
    Jun
2016
    Sep
2016
    Dec
2016
    Dec
2016
    Dec
2015
 

Copper (continued)

                

Metals production is payable metal unless otherwise stated.

  

Antamina, Peru

                

Material mined (100%)

     (kt)        52,130        55,183        62,793        65,111        61,355        126,466        108,923   

Sulphide ore milled (100%)

     (kt)        14,184        12,414        14,711        13,522        13,399        26,921        28,484   

Average head grades

                

- Copper

     (%)        0.92     1.02     0.90     0.84     0.84     0.84     0.90

- Zinc

     (%)        0.55     0.54     0.33     0.60     0.83     0.71     0.67

Production

                

Payable copper

     (kt)        37.2        35.4        38.7        34.1        32.0        66.1        72.3   

Payable zinc

     (t)        16,454        11,913        6,474        15,367        22,406        37,773        37,051   

Payable silver

     (troy koz)        1,636        1,751        1,558        1,345        1,446        2,791        3,402   

Payable lead

     (t)        1,024        1,193        645        1,146        1,220        2,366        1,881   

Payable molybdenum

     (t)        232        227        562        561        225        786        324   

Sales

                

Payable copper

     (kt)        42.9        29.3        42.4        32.8        33.0        65.8        73.7   

Payable zinc

     (t)        20,423        12,097        3,035        16,043        22,334        38,377        39,170   

Payable silver

     (troy koz)        2,048        1,331        2,055        1,277        1,388        2,665        3,570   

Payable lead

     (t)        1,056        1,073        1,108        767        1,100        1,867        1,322   

Payable molybdenum

     (t)        138        178        331        648        476        1,124        294   

Olympic Dam, Australia

                

Material mined (1)

     (kt)        2,372        2,210        1,993        2,204        1,887        4,091        4,729   

Ore milled

     (kt)        2,767        2,174        2,031        2,279        2,116        4,395        5,494   

Average copper grade

     (%)        2.22     2.01     2.20     1.97     2.00     1.98     1.93

Average uranium grade

     (kg/t)        0.62        0.61        0.59        0.60        0.68        0.64        0.61   

Production

                

Copper cathode (ER and EW)

     (kt)        57.4        49.8        40.7        40.9        37.2        78.1        112.3   

Uranium oxide concentrate

     (t)        1,352        961        876        916        1,060        1,976        2,526   

Refined gold

     (troy oz)        39,299        29,028        20,010        24,366        29,651        54,017        68,648   

Refined silver

     (troy koz)        265        174        232        163        188        351        511   

Sales

                

Copper cathode (ER and EW)

     (kt)        57.3        49.4        43.9        37.5        41.2        78.7        109.8   

Uranium oxide concentrate

     (t)        1,013        1,261        778        1,085        883        1,968        1,690   

Refined gold

     (troy oz)        39,168        32,052        22,134        21,901        28,234        50,135        64,766   

Refined silver

     (troy koz)        265        198        201        184        203        387        478   

 

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

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    16


Production and sales report

 

           Quarter ended      Year to date  
           Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Iron Ore

                      

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

  

Pilbara, Australia

                      

Production

                      

Newman

     (kt     17,003         15,817         15,115         18,008         17,751         35,759         35,009   

Area C Joint Venture

     (kt     11,723         11,002         11,911         12,384         12,179         24,563         23,886   

Yandi Joint Venture

     (kt     15,960         16,204         18,325         15,729         17,555         33,284         32,846   

Jimblebar (1)

     (kt     4,852         5,472         5,304         6,057         5,178         11,235         8,114   

Wheelarra

     (kt     5,757         4,562         4,971         5,409         7,386         12,795         13,016   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production

     (kt     55,295         53,057         55,626         57,587         60,049         117,636         112,871   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total production (100%)

     (kt     64,197         61,454         64,508         66,681         69,730         136,411         131,358   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Lump

     (kt     13,886         13,380         13,054         14,156         14,127         28,283         27,889   

Fines

     (kt     40,917         40,078         42,673         42,278         45,447         87,725         84,504   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     54,803         53,458         55,727         56,434         59,574         116,008         112,393   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total sales (100%)

     (kt     63,625         61,927         64,617         65,368         69,196         134,564         130,802   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

       

        

Samarco, Brazil (1)

                      

Production

     (kt     1,665         —           —           —           —           —           5,404   

Sales

     (kt     2,425         224         94         12         —           12         5,956   

 

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

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    17


Production and sales report

 

           Quarter ended      Year to date  
           Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Coal

                      

Coal production is reported on the basis of saleable product.

  

Queensland Coal

                      

Production (1)

                      

BMA

                      

Blackwater

     (kt     1,861         1,756         2,206         1,981         1,855         3,836         3,664   

Goonyella

     (kt     1,941         2,478         2,709         2,123         2,204         4,327         3,809   

Peak Downs

     (kt     1,323         1,159         1,385         1,520         1,715         3,235         2,487   

Saraji

     (kt     1,000         1,046         1,123         1,238         1,307         2,545         2,037   

Gregory Joint Venture (2)

     (kt     609         13         —           —           —           —           1,316   

Daunia

     (kt     616         626         684         646         680         1,326         1,314   

Caval Ridge

     (kt     857         816         1,118         876         923         1,799         1,667   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BMA

     (kt     8,207         7,894         9,225         8,384         8,684         17,068         16,294   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

BHP Billiton Mitsui Coal (3)

                      

South Walker Creek

     (kt     1,275         1,268         1,382         1,341         1,080         2,421         2,786   

Poitrel

     (kt     916         747         963         804         849         1,653         1,752   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total BHP Billiton Mitsui Coal

     (kt     2,191         2,015         2,345         2,145         1,929         4,074         4,538   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Queensland Coal

     (kt     10,398         9,909         11,570         10,529         10,613         21,142         20,832   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Coking coal

     (kt     7,642         7,348         8,059         7,240         7,658         14,898         14,657   

Weak coking coal

     (kt     2,695         2,681         3,196         2,799         2,659         5,458         5,941   

Thermal coal

     (kt     290         241         310         206         154         360         376   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     10,627         10,270         11,565         10,245         10,471         20,716         20,974   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)    Production figures include some thermal coal.

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

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

       

       

       

Haju, Indonesia (1)

                      

Production

     (kt     87         167         260         102         27         129         102   

Sales - export

     (kt     —           148         239         117         —           117         —     

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

        

New Mexico, USA

                      

Production

                      

Navajo Coal (1)

     (kt     1,403         694         632         451         —           451         2,673   

San Juan Coal (2)

     (kt     1,229         418         —           —           —           —           2,635   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     2,632         1,112         632         451         —           451         5,308   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales thermal coal - local utility

       2,661         1,106         613         105         —           105         5,332   

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

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

        

       

NSW Energy Coal, Australia

                      

Production

     (kt     4,277         4,189         3,991         3,952         3,851         7,803         8,921   

Sales

                      

Export thermal coal

     (kt     5,081         3,410         3,993         3,640         3,539         7,179         9,211   

Inland thermal coal

     (kt     229         234         440         331         311         642         482   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (kt     5,310         3,644         4,433         3,971         3,850         7,821         9,693   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cerrejón, Colombia

                      

Production

     (kt     2,628         2,610         2,329         2,928         2,800         5,728         5,155   

Sales thermal coal - export

     (kt     2,565         2,339         2,844         2,905         2,722         5,627         5,418   

 

 

BHP Billiton Operational Review for the half year ended 31 December 2016    18


Production and sales report

 

           Quarter ended      Year to date  
           Dec
2015
     Mar
2016
     Jun
2016
     Sep
2016
     Dec
2016
     Dec
2016
     Dec
2015
 

Other

                      

Nickel production is reported on the basis of saleable product

  

                   

Nickel West, Australia

                      

Production

                      

Nickel contained in concentrate

     (kt     0.2         0.3         0.3         0.3         0.2         0.5         0.9   

Nickel contained in finished matte

     (kt     2.6         2.8         5.8         1.8         4.1         5.9         7.6   

Nickel metal

     (kt     12.4         16.9         17.3         16.7         17.8         34.5         28.8   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel production

     (kt     15.2         20.0         23.4         18.8         22.1         40.9         37.3   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                      

Nickel contained in concentrate

     (kt     0.2         0.3         0.3         0.3         0.2         0.5         0.9   

Nickel contained in finished matte

     (kt     3.7         2.7         5.9         1.8         4.1         5.9         7.9   

Nickel metal

     (kt     12.1         17.8         17.4         16.5         17.8         34.3         27.7   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nickel sales

     (kt     16.0         20.8         23.6         18.6         22.1         40.7         36.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

BHP Billiton Operational Review for the half year ended 31 December 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: January 25, 2017     By:  

/s/ Rachel Agnew

    Name:   Rachel Agnew
    Title:   Company Secretary