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BIL
BHP Billiton Exploration and Development Report for the Year Ended 30 June 2012
NEWS RELEASE
Release Time IMMEDIATE
Date 18 July 2012
Number 16/12
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE YEAR ENDED 30 JUNE 2012
This report covers the Group?s exploration and development activities for the June 2012 quarter. Unless otherwise
stated, BHP Billiton?s interest in the projects referred to in this report is 100 per cent and references to project
schedules are based on calendar years.
Development
BHP Billiton?s proven strategy to invest in large, long life, low cost, expandable, upstream assets, diversified by
commodity, geography and market ensures we are well positioned to maintain strong momentum and returns in our
major businesses, despite significant volatility in the external environment.
In the 2012 financial year, six major projects delivered first production while a total investment commitment of
US$7.5 billion (BHP Billiton share) enabled another eight major projects to move into execution. In addition,
US$2.7 billion (BHP Billiton share) of pre-commitment funding was approved to further progress a series of
development options.
The six projects to deliver first production included: Western Australia Iron Ore (WAIO) Rapid Growth Project 5
(iron ore); Antamina Expansion and Escondida Ore Access (both copper); Worsley Efficiency & Growth (alumina);
North West Shelf CWLH Life Extension (oil); and the RX1 Project (energy coal). The Antamina Expansion,
Escondida Ore Access and RX1 projects will not be reported in future Exploration and Development Reports.
The eight projects that moved into execution span the ferrous, non-ferrous and energy product groups and
included: WAIO Orebody 24 (iron ore); Caval Ridge and Appin Area 9 (both metallurgical coal); Escondida Organic
Growth Project 1 and Escondida Oxide Leach Area Project (both copper); North West Shelf Greater Western
Flank-A (LNG); Cerrejon P40 Project and the Newcastle Third Port Project Stage 3 (both energy coal).
During the June 2012 quarter, BHP Billiton announced approval of the Illawarra Coal Appin Area 9 project and pre-
commitment funding of US$708 million (BHP Billiton share) for the Mad Dog Phase 2 project in the deepwater Gulf
of Mexico (oil and gas).
BHP Billiton?s Onshore US drilling and development expenditure totalled US$3.3 billion in the 2012 financial year.
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Petroleum projects
Macedon 1,050 CY13 200 million cubic feet gas On schedule and budget. The overall
(Australia) per day. project is 71% complete.
71.43%
Gas
Bass Strait Kipper 900 CY12(a) 10,000 bpd condensate On revised schedule and budget. The
(Australia) and processing capacity overall project is 97% complete.
32.5% - 50% of 80 million cubic feet
Gas/Gas Liquids gas per day.
Bass Strait Turrum 1,350 CY13 11,000 bpd condensate On revised schedule and budget. The
(Australia) and processing capacity overall project is 79% complete.
50% of 200 million cubic feet
Gas/Gas Liquids gas per day.
North West Shelf North 850 CY13 2,500 million cubic feet On budget. Steady state production
Rankin B Gas gas per day. remains on track for CY13. The overall
Compression project is 94% complete.
(Australia)
16.67%
LNG
North West Shelf 400 CY16 To maintain LNG plant On schedule and budget. The overall
Greater Western throughput from the North project is 15% complete.
Flank-A West Shelf operations.
(Australia)
16.67%
LNG
Minerals projects
Antamina Expansion 435 Q1 CY12 Increases ore processing First production was achieved in Q1
(Peru) capacity to 130,000 tpd. CY12. The overall project is 92%
33.75% complete.
Copper
Escondida Ore Access 319 Q2 CY12 The relocation of the First production was achieved in Q2
(Chile) in-pit crushing and CY12. The overall project is 95%
57.5% conveyor infrastructure complete.
Copper provides access to higher
grade ore.
Escondida Organic 2,207 H1 CY15 Replaces the Los On schedule and budget. The overall
Growth Project 1 Colorados concentrator project is 13% complete.
(Chile) with a new 152,000 tpd
57.5% plant.
Copper
Escondida Oxide Leach 414 H1 CY14 New dynamic leaching On schedule and budget. The overall
Area Project pad and mineral handling project is 8% complete.
(Chile) system. Maintains oxide
57.5% leaching capacity.
Copper
EKATI Misery Open Pit 323 CY15 Project consists of a On schedule and budget. The overall
Project pushback of the existing project is 26% complete.
(Canada) Misery open pit which
80% was mined from 2001 to
Diamonds 2005.
BHP Billiton Exploration and Development Report for the year ended 30 June 2012 2
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
WAIO Jimblebar Mine 3,300(b) Q1 CY14 Increases mining and On schedule and budget. The overall
Expansion processing capacity to project is 34% complete.
(Australia) 35 million tpa with
96% incremental
Iron Ore debottlenecking
opportunities to
55 million tpa.
WAIO Port Hedland 1,900(b) H2 CY12 Increases total inner On schedule and budget. The overall
Inner Harbour harbour capacity to project is 59% complete.
Expansion 220 million tpa with
(Australia) debottlenecking
85% opportunities to
Iron Ore 240 million tpa.
WAIO Port Blending 1,400(b) H2 CY14 Optimises resource and On schedule and budget. The overall
and Rail Yard Facilities enhances efficiency project is 22% complete.
(Australia) across the WAIO supply
85% chain.
Iron Ore
WAIO Orebody 24 698 H2 CY12 Maintains iron ore On schedule and budget. The overall
(Australia) production output from project is 20% complete.
85% the Newman Joint
Iron Ore Venture operations.
Samarco Fourth Pellet 1,750 H1 CY14 Increases iron ore pellet On schedule and budget. The overall
Plant production capacity by project is 43% complete.
(Brazil) 8.3 million tpa to
50% 30.5 million tpa.
Iron Ore
Daunia 800 CY13 Greenfield mine On schedule and budget. The overall
(Australia) development with project is 56% complete.
50% capacity to produce
Metallurgical Coal 4.5 million tpa of export
metallurgical coal.
Broadmeadow Life 450 CY13 Increases productive On schedule and budget. The overall
Extension capacity by 0.4 million tpa project is 74% complete.
(Australia) and extends life of the
50% mine by 21 years.
Metallurgical Coal
Hay Point Stage Three 1,250(b) CY14 Increases port capacity On schedule and budget. The overall
Expansion from 44 million tpa to project is 45% complete.
(Australia) 55 million tpa and
50% reduces storm
Metallurgical Coal vulnerability.
Caval Ridge 2,100(b) CY14 Greenfield mine On schedule and budget. The overall
(Australia) development and project is 37% complete.
50% expansion of the Peak
Metallurgical Coal Downs Mine with capacity
to produce 8.0 million tpa
of export metallurgical
coal.
BHP Billiton Exploration and Development Report for the year ended 30 June 2012 3
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Appin Area 9 845(c) CY16 Maintains Illawarra Coal?s Approval announced. See News
(Australia) production capacity with a Release dated 22 June 2012.
100% replacement mining
Metallurgical Coal domain and capacity to
produce 3.5 million tpa of
metallurgical coal.
RX1 Project 400 H2 CY12 Increases run-of-mine First production was achieved in Q2
(Australia) thermal coal production CY12, significantly ahead of schedule
100% by approximately and on budget. The overall project is
Energy Coal 4 million tpa. 85% complete.
Cerrejon P40 Project 437 CY13 Increases saleable On schedule and budget. The overall
(Colombia) thermal coal production project is 35% complete.
33.3% by 8 million tpa to
Energy Coal approximately
40 million tpa.
Newcastle Third Port 367 CY14 Increases total coal On schedule and budget. The overall
Project Stage 3 terminal capacity from project is 43% complete.
(Australia) 53 million tpa to
35.5% 66 million tpa.
Energy Coal
Minerals exploration
Greenfield exploration continued on copper targets in South America, nickel and copper targets in Australia, and
iron ore and potash in a number of regions globally.
Minerals exploration expenditure for the 2012 financial year was US$1.1 billion, of which US$0.9 billion was
expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 30 June 2012.
Well Location BHP Billiton equity Status
Gunflint-3 Gulf of Mexico 11.2% Drilling ahead
MC948 (Noble operator)
Ness Deep Gulf of Mexico 50% Drilling ahead
GC507 (Operator)
Julong East Brunei 22.5% Plugged and abandoned
Block CA-01 (Total operator) Hydrocarbons encountered
Jagus East Brunei 22.5% Plugged and abandoned
Block CA-01 (Total operator) Under evaluation
Tallaganda-1 Offshore Western Australia 55% Plugged and abandoned
WA-351-P (Operator) Hydrocarbons encountered
Banambu Deep Offshore Western Australia 40% Abandonment operations in
WA-389-P (Woodside operator) progress
Dry hole
BHP Billiton Exploration and Development Report for the year ended 30 June 2012 4
Petroleum exploration expenditure for the 2012 financial year was US$1.4 billion, of which US$0.7 billion was
expensed. This included US$0.4 billion of exploration expenditure in our recently acquired Onshore US business.
Permian Basin appraisal activities for the June 2012 quarter included the successful completion and testing of
seven wells with commercial rates. Further success in the Permian Basin is expected to lead to an increase in
development expenditure and an associated reduction in exploration expenditure.
(a) Facilities ready for first production pending resolution of mercury content.
(b) Excludes announced pre-commitment funding.
(c) Approximately 50 per cent of the US$845 million investment will be capitalised.
The 2012 financial year development and exploration expenditures are subject to finalisation.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
Sponsor: Absa Capital (the Investment banking division of Absa Bank Limited, affiliated with Basclays)
Media Relations Investor Relations
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BHP Billiton Exploration and Development Report for the year ended 30 June 2012 5
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