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Bhp Billiton
BHP Billiton Plc
ISIN: GB0000566504
SHARE CODE: BIL
NEWS RELEASE
Date: 16 June 2003
Number: 21/03
BHP BILLITON APPROVES ESCONDIDA NORTE COPPER PROJECT
BHP Billiton and its partners have approved the development of the Escondida
Norte copper project in northern Chile, as part of Escondida"s operating
strategy to maintain copper production capacity in future years.
Brad Mills, President and CEO of BHP Billiton Base Metals said that the
Escondida Norte open pit would be located 5 km from the existing Escondida
mining operations. Escondida Norte will mine a satellite ore body that will be
able to provide higher-grade copper ore to the two existing Escondida
concentrators, which will also continue to receive ore from the Escondida mine.
"Due to the proximity of the Norte open pit to the Escondida operations, we can
develop this property in a manner that maximizes the synergies with the existing
Escondida infrastructure. Norte will provide the necessary feed to maintain
capacity at Escondida above 1.2 million tonnes per annum of copper in
concentrate and cathode through the end of 2008," Mr Mills said.
Ore grades at the existing Escondida mine are forecast to continue to decline
over the next several years. Norte will enable Escondida to maintain existing
capacity. The development of the Norte open pit will increase production
flexibility and reduce operational risks associated with a single mine source,
as well as further reduce the cost of production from an already low base.
First copper production from the Norte open pit is scheduled for the fourth
quarter of CY2005.
Development costs are estimated at US$400 million (BHP Billiton share US$230
million). These costs include installation of a primary crusher, construction
of an overland conveyor, maintenance and operating support facilities, some new
mining equipment, the transition of a portion of the current Escondida mobile
equipment fleet to the Norte open pit and waste pre-stripping of the new pit.
Escondida Norte"s combined proved and probable ore reserves are estimated at 526
million tonnes of sulphide ore at an average copper grade of 1.42% and a cut-off
grade of 0.7%, giving an ore reserve life of approximately 17 years.
The information in this report that relates to Ore Reserves is based on
information compiled by Dr Jonathan M. Gilligan Ph.D., B.Sc. (Hons), FGS,
MAusIMM, who is a Member of the Australian Institute of Mining and Metallurgy
and is a full time employee of Minera Escondida Ltda. Dr Gilligan has
sufficient experience, which is relevant to the style and type of deposit and to
the activity that he is undertaking to qualify as a Competent Person as defined
in the 1999 edition of the "Australasian Code for Reporting of Minerals
Resources and Ore Reserve". The Competent Person consents to the inclusion in
this report of the matters based on their information in the form and context in
which they appear.
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Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia
Andrew Nairn, Investor Relations
Tel: +61 3 9609 3952 Mobile: +61 408 313 259
email: Andrew.W.Nairn@bhpbilliton.com
United Kingdom
Mark Lidiard, Investor & Media Relations
Tel: +44 20 7802 4156
email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations
Tel: +61 3 9609 3815 Mobile: +61 419 152 780
email: Tania.Price@bhpbilliton.com
Ariane Gentil, Media Relations
Tel: +44 20 7802 4177
email: Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
South AfricaMichael Campbell, Investor & Media Relations
Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
Date: 17/06/2003 07:56:04 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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