BHP Billiton Quarterly Exploration and Development Report

 

 

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

October 19, 2011

 

 

 

BHP BILLITON LIMITED   BHP BILLITON PLC
(ABN 49 004 028 077)   (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)
180 LONSDALE STREET, MELBOURNE,  

NEATHOUSE PLACE, VICTORIA, LONDON,

UNITED KINGDOM

VICTORIA  
3000 AUSTRALIA  
(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:  x 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):  ¨

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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    x  No

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NEWS RELEASE

   LOGO
Release Time    IMMEDIATE   
Date    19 October 2011   
Number    30/11   

BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT

FOR THE QUARTER ENDED 30 SEPTEMBER 2011

This report covers the Group’s exploration and development activities for the September 2011 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

Western Australia Iron Ore (WAIO) Rapid Growth Project 5 (RGP5) was completed on schedule during the September 2011 quarter and the ramp up of this well timed project is now underway. Subsequent expansions to 240 million tonnes per annum and beyond will leverage infrastructure installed as part of the RGP5 project scope and enable BHP Billiton to fully utilise its inner harbour capacity at Port Hedland. The North West Shelf CWLH Life Extension project (Australia) was also completed on 24 September 2011. These projects will not be reported in future Exploration and Development Reports.

During the September 2011 quarter, BHP Billiton continued to add to its approved pipeline of high return, growth projects diversified across commodity, geography and customer. Investments in energy coal totalling US$804 million (BHP Billiton share) will facilitate a further phase of expansion at the world class Cerrejon coal mine (Colombia) to approximately 40 million tonnes per annum (100 per cent basis) and the third stage of development of the Newcastle Coal Infrastructure Group’s (NCIG) coal handling facility in Newcastle (Australia).

 

Project and

ownership

  

Share of
approved
capex (US$m)

  

Initial
production
target date

  

Production capacity

(100%)

  

Quarterly

progress

Petroleum projects            

Macedon

(Australia)

71.43%

Gas

   1,050    CY13    200 million cubic feet gas per day.    On schedule and budget. The overall project is 39% complete.

Bass Strait Kipper

(Australia)

32.5% - 50%

Gas/Gas Liquids

   900    CY12(a)    10,000 bpd condensate and processing capacity of 80 million cubic feet gas per day.    On revised schedule and budget. The overall project is 82% complete.

Bass Strait Turrum

(Australia)

50%

Gas/Gas Liquids

   1,350    CY13    11,000 bpd condensate and processing capacity of 200 million cubic feet gas per day.    On revised schedule and budget. The overall project is 69% complete.


Project and

ownership

  

Share of
approved
capex (US$m)

  

Initial
production
target date

  

Production capacity

(100%)

  

Quarterly

progress

North West Shelf

CWLH Life Extension

(Australia)

16.67%

Oil

   245    CY11    Replacement vessel with capacity of 60,000 bpd oil.    First production achieved on 24 September 2011.

North West Shelf North

Rankin B Gas

Compression

(Australia)

16.67%

LNG

   850    CY13    2,500 million cubic feet gas per day.    On budget. Steady state production remains on track for CY13. The overall project is 75% complete.
Minerals projects            

Worsley Efficiency &

Growth

(Australia)

86%

Alumina

   2,995    Q1 CY12    1.1 million tpa of additional alumina.    On revised schedule and budget. The overall project is 84% complete.

Antamina Expansion

(Peru)

33.75%

Copper

   435    Q4 CY11    Increases ore processing capacity to 130,000 tpd.    On schedule and budget. The overall project is 68% complete.

Escondida Ore Access

(Chile)

57.5%

Copper

   319    Q2 CY12    The relocation of the in-pit crushing and conveyor infrastructure provides access to higher grade ore.    On schedule and budget. The overall project is 57% complete.

EKATI Misery Open Pit

Project

(Canada)

80%

Diamonds

   323    CY15    Project consists of a pushback of the existing Misery open pit which was mined from 2001 to 2005.    On schedule and budget. The overall project is 12% complete.

WAIO RGP5

(Australia)

85%

Iron Ore

   4,800    H2 CY11    Scope review completed and integrated into subsequent expansion approvals that will increase WAIO capacity to 220 million tpa.    First production achieved on schedule, ramp up underway.

WAIO Jimblebar Mine

Expansion

(Australia)

96%

Iron Ore

   3,300(b)    Q1 CY14    Increases mining and processing capacity to 35 million tpa with incremental debottlenecking opportunities to 55 million tpa.    On schedule and budget. The overall project is 15% complete.

WAIO Port Hedland

Inner Harbour

Expansion

(Australia)

85%

Iron Ore

   1,900(b)    H2 CY12    Increases total inner harbour capacity to 220 million tpa with debottlenecking opportunities to 240 million tpa.    On schedule and budget. The overall project is 35% complete.

 

BHP Billiton Exploration and Development Report for the quarter ended 30 September 2011    2


Project and

ownership

  

Share of
approved
capex (US$m)

  

Initial
production
target date

  

Production capacity

(100%)

  

Quarterly

progress

WAIO Port Blending

and Rail Yard Facilities

(Australia)

85%

Iron Ore

   1,400(b)    H2 CY14    Optimises resource and enhances efficiency across the WAIO supply chain.    On schedule and budget. The overall project is 11% complete.

Samarco Fourth Pellet

Plant

(Brazil)

50%

Iron Ore

   1,750    H1 CY14    Increases iron ore pellet production capacity by 8.3 million tpa to 30.5 million tpa.    On schedule and budget. The overall project is 9% complete.

Daunia

(Australia)

50%

Metallurgical Coal

   800    CY13    Greenfield mine development with capacity to produce 4.5 million tpa of export metallurgical coal.    On schedule and budget. The overall project is 18% complete.

Broadmeadow Life

Extension

(Australia)

50%

Metallurgical Coal

   450    CY13    Increases productive capacity by 0.4 million tpa and extends life of the mine by 21 years.    On schedule and budget. The overall project is 43% complete.

Hay Point Stage Three

Expansion

(Australia)

50%

Metallurgical Coal

   1,250(b)    CY14    Increases port capacity from 44 million tpa to 55 million tpa and reduces storm vulnerability.    On schedule and budget. The overall project is 31% complete.

RX1 Project

(Australia)

100%

Energy Coal

   400    H2 CY13    Increases run-of-mine thermal coal production by approximately 4 million tpa.    On schedule and budget. The overall project is 44% complete.

Cerrejon P40 Project

(Colombia)

33.3%

Energy Coal

   437    CY13    Increases saleable thermal coal production by 8 million tpa to approximately 40 million tpa.    Approval announced. See News Release dated 18 August 2011.

Newcastle Third Port

Project Stage 3

(Australia)

35.5%

Energy Coal

   367    CY14    Increases total coal terminal capacity from 53 million tpa to 66 million tpa.    Approval announced. See News Release dated 31 August 2011.

 

BHP Billiton Exploration and Development Report for the quarter ended 30 September 2011    3


Minerals exploration

Greenfield exploration continued on copper targets in South America, Mongolia and Zambia; nickel and copper targets in Australia; and diamond targets in Canada. Exploration for iron ore, potash and uranium was undertaken in a number of regions including Australia, Africa and the Americas.

For the quarter ended 30 September 2011, BHP Billiton spent US$255 million on minerals exploration, of which US$213 million was expensed.

Petroleum exploration

Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 30 September 2011.

 

Well

  

Location

  

BHP Billiton equity

  

Status

Deep Blue-1   

Green Canyon Gulf of Mexico

GC 723

  

31.875%

(Noble operator)

   Drilling ahead
Mad Dog North-1   

Green Canyon Gulf of Mexico

GC 738

  

23.9%

(BP operator)(c)

  

Hydrocarbons encountered See News Release dated 7 September 2011

Drilling ahead

Bao Dom May-1   

Western Trough Vietnam

Block 28

  

50%

(Operator)

  

Plugged and abandoned

Dry hole

Argus-2   

Browse Basin Australia

AC/RL 8

  

40%

(Woodside operator)

   Temporarily abandoned
Jurjur-1   

Sabah Malaysia

Block N

  

60%

(Operator)

  

Temporarily suspended for

equipment repairs

Julong Centre   

Brunei

Block CA-01

  

22.5%

(Total operator)

   Drilling ahead
Canteen North   

Trinidad and Tobago

Block 2C

  

45%

(Operator)

  

Plugged and abandoned

Hydrocarbons encountered

Seraph-1   

North West Shelf Australia

WA-3-L

  

16.67%

(Woodside operator)

   Drilling ahead

Petroleum exploration expenditure for the quarter ended 30 September 2011 was US$155 million, of which US$64 million was expensed. Our guidance for petroleum exploration expenditure for the 2012 financial year is US$1 billion, excluding Onshore US exploration.

This report, together with the Production Report, represents the Interim Management Statement for the purposes of the UK Listing Authority’s Disclosure and Transparency Rules. There have been no significant changes to the financial position of the Group in the quarter ended 30 September 2011, other than those arising from the Group’s previously announced acquisition of Petrohawk Energy Corporation that was completed during the period which affected the Group’s cash reserves, net debt and gearing levels.

 

(a) Facilities ready for first production pending resolution of mercury content.
(b) Excludes announced pre-commitment funding.
(c) BHP Billiton is operator of the well.

 

BHP Billiton Exploration and Development Report for the quarter ended 30 September 2011    4


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

 

Media Relations    Investor Relations
Australia    Australia

 

Samantha Stevens

Tel: +61 3 9609 2898 Mobile: +61 400 693 915

email: Samantha.Stevens@bhpbilliton.com

  

 

James Agar

Tel: +61 3 9609 2222 Mobile: +61 467 807 064

email: James.Agar@bhpbilliton.com

  
  
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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

  

 

Brendan Harris

Tel: +44 20 7802 4131 Mobile: +61 437 134 814

email: Brendan.Harris@bhpbilliton.com

  
United Kingdom and Americas   
Ruban Yogarajah    Americas
Tel: US +1 713 966 2907 or UK +44 20 7802 4033   

 

Scott Espenshade

Tel: +1 713 599 6431 Mobile: +1 713 208 8565

email: Scott.Espenshade@bhpbilliton.com

Mobile: UK +44 7827 082 022   
email: Ruban.Yogarajah@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

 

BHP Billiton Exploration and Development Report for the quarter ended 30 September 2011    5


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: October 19, 2011   By:  

/s/ Jane McAloon

  Name:   Jane McAloon
  Title:   Group Company Secretary