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BHP BILLITON PLC - NEWS RELEASE
Date 4 December 2002
BHP BILLITON ANNOUNCES EXTENSION TO COPPER CUTBACKS
BHP Billiton Base Metals today announced it would continue its program of demand
based production originally announced by the Group in November 2001. During
calendar year 2003, BHP Billiton will target an annualized production rate of
1.05 million metric tonnes of copper at its Escondida mine (150 000 tonnes of
cathode and 900 000 tonnes of copper contained in concentrate), and 34 000
tonnes of cathode at its Tintaya mine. The company will continue to maintain
its Pinto Valley and Robinson mines in the Southwest United States on standby
status. As a consequence, BHP Billiton will produce 390 000 tonnes of copper
(305 000 tonnes BHP Billiton share) below installed capacity in calendar year
2003 on an annualized basis. Production from the Company`s other copper mines
will not be affected at this time.
Brad Mills, President BHP Billiton Base Metals said, "Due to continuing weakness
in demand in the US and Europe, BHP Billiton will continue with its "production
to demand" program. With copper inventories of nearly 1.4 million tonnes of
metal in LME/Comex/Shanghai warehouses, we believe it is prudent for us to
operate at less than our full capacity at this time."
The constrained production program will include:
An annualized reduction of 200 000 tonnes (115 000 tonnes BHP Billiton share) to
installed capacity at the Escondida mine in Chile. Following the completion of
the Phase IV expansion in October, installed design capacity has increased to a
total of 1.25 million tonnes per annum of copper contained in concentrate and
cathode. During calendar year 2003, the Escondida mine will operate at an
annual rate of 1.05 million tonnes of copper contained in concentrate and
cathode. The reduced production will be achieved through a combination of lower
grade ore processing and maintenance shutdowns at the older Los Colorados mill
and concentrator facility. Escondida is scheduled to produce approximately 760
000 tonnes of copper in concentrate and cathode in calendar year 2002.
An annualized reduction of 90 000 tonnes to capacity at the Tintaya mine in
Peru. BHP Billiton will maintain its Tintaya copper sulphide operations on
standby at least through the first half of 2003. The Tintaya Oxide operation
will continue to operate at its installed designed capacity of 34 000 tonnes of
copper cathode per year. Tintaya did not produce any copper in concentrate
during calendar year 2002.
BHP Billiton`s Pinto Valley and Robinson operations in the Southwest United
States will remain on standby through the end of calendar year 2003. These
operations represent 100 000 tonnes of idled copper capacity. Pinto Valley and
Robinson did not produce any copper in concentrate in calendar year 2002. As in
2002, the Pinto Valley operation is scheduled to produce 10 000 tonnes of copper
cathode in 2003 from its SX-EW operations.
BHP Billiton will review the market demand for copper in six months time and
reassess our production targets at that time.
****
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Mark Lidiard, Investor &
Relations Media Relations
Tel: +61 3 9609 3952 Mobile: Tel: +44 20 7747 3956
+61 408 313 259 email:
email: Mark.Lidiard@bhpbilliton.com
Andrew.W.Nairn@bhpbilliton.co
m
Tracey Whitehead, Media South Africa
Relations Michael Campbell, Investor &
Tel: +61 3 9609 4202 Mobile: Media Relations
+61 419 404 978 Tel: +27 11 376 3360
email: Mobile: +27 82 458 2587
Tracey.Whitehead@bhpbilliton. email:
com Michael.J.Campbell@bhpbillit
on.com
United States
Francis McAllister, Investor
Relations
Tel: +1 713 961 8625 Mobile:
+1 713 480 3699
email:
Francis.R.McAllister@bhpbilli
ton.com
Date: 04/12/2002 07:50:10 AM Produced by the JSE SENS Department
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