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BIL 201208220012A
Olympic Dam Update
NEWS RELEASE
Release Time IMMEDIATE
Date 22 August 2012
Number 19/12
OLYMPIC DAM UPDATE
BHP Billiton announced today that it will investigate an alternative, less capital-intensive
design of the Olympic Dam open-pit expansion, involving new technologies, to substantially
improve the economics of the project. As a result it will not be ready to approve an
expansion of Olympic Dam before the Indenture agreement deadline of 15 December 2012.
The Company will discuss the implications of this decision for the Indenture agreement with
the South Australian Government in the coming months.
BHP Billiton CEO, Marius Kloppers, said current market conditions, including subdued
commodity prices and higher capital costs, had led to the decision:
“As we finalised all the details of the project in the context of current market conditions, our
strategy and capital management priorities, it became clear that the right decision for the
Company and its shareholders was to continue studies to develop a less capital intensive
option to replace the underground mine at Olympic Dam.
“As with any capital commitment, all investment options are scrutinised as they move
through our approvals process and our highest returning projects are prioritised. Value is
always our primary consideration. We believe today’s decision reflects an appropriate,
prudent and disciplined course of action.
“However, the long term outlook for the copper market remains strong and we will continue
to work closely with all stakeholders as we refine our longer term development plans for this
unique, world class ore body. We want to find the right solution to unlock this resource,” he
said.
BHP Billiton Chief Executive Non-Ferrous, Andrew Mackenzie, said the South Australian
Government’s support for the project should be commended:
“The South Australian Government has been fully supportive of Olympic Dam and has
created an environment that is highly conducive to business investment. We have been very
much encouraged by their attitude to business development and the Olympic Dam
expansion project.
“Olympic Dam is a resource of enormous potential and we will continue to work on
technological and design alternatives that have the potential to substantially improve the
economics of the expansion, while also completing some early stage site works.”
As a result of this change, the Company will recognise impairment and other charges of
US$346 million before tax (US$242 million after tax) in respect of the Olympic Dam Project
in the 2012 financial year.
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
Barclays).
Media Relations Investor Relations
Australia Australia
Antonios Papaspiropoulos James Agar
Tel: +61 3 9609 3830 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 467 807 064
email: Antonios.Papaspiropoulos@bhpbilliton.com email: James.Agar@bhpbilliton.com
Kelly Quirke Andrew Gunn
Tel: +61 3 9609 2896 Mobile: +61 429 966 312 Tel: +61 3 9609 3575 Mobile: +61 439 558 454
email: Kelly.Quirke@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Fiona Martin United Kingdom and South Africa
Tel: +61 3 9609 2211 Mobile: +61 427 777 908
email: Fiona.Martin2@bhpbilliton.com Tara Dines
Tel : +44 20 7802 7113 Mobile : +44 7825 342 232
United Kingdom Email : Tara.Dines@bhpbilliton.com
Ruban Yogarajah Americas
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com Brendan Harris
Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
Deirdra McCracken email: Brendan.Harris@bhpbilliton.com
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764
Email: Deirdra.S.McCracken@bhpbilliton.com Matt Chism
Tel: +1 71 359 96158 Mobile: +1 281 782 2238
Americas email: Matt.E.Chism@bhpbilliton.com
Jaryl Strong
Tel: +1 713 499 5548 Mobile: +1 281 222 6627
email: Jaryl.Strong@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Street Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
Date: 22/08/2012 08:48:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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