TIDMBLT
RNS Number : 7345V
BHP Billiton PLC
17 January 2012
NEWS RELEASE
Release Time IMMEDIATE
Date 18 January 2012
Number 02/12
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 31 DECEMBER 2011
This report covers the Group's exploration and development
activities for the December 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
A focus on high return growth projects, diversified by
commodity, geography and market was further reinforced during the
December 2011 half year with the approval of projects in the
Metallurgical Coal and Energy Coal businesses. BHP Billiton's
commitment to its world class growth pipeline now exceeds US$26
billion.
During the December 2011 quarter, BHP Billiton announced the
approval of the Caval Ridge mine development and the expansion of
the Peak Downs operation which will add high quality export coking
coal capacity and future development options for our leading
Queensland Coal business. BHP Billiton also approved construction
of the Western Australia Iron Ore (WAIO) Orebody 24 mine and the
North West Shelf Greater Western Flank-A project.
Pre-commitment expenditure of US$1.2 billion for the first phase
of the Olympic Dam Project (Australia) was activated following
environmental approval by the Government of South Australia and the
Commonwealth and the successful passage of the Indenture agreement
through the South Australian Parliament. This funding will
facilitate the procurement of long lead time items such as trucks
and accommodation, infrastructure development and early site
works.
Onshore US drilling and development expenditure in the Petroleum
division totalled US$0.9 billion during the December 2011 quarter
and US$1.4 billion during the December 2011 half year.
Share of approved Initial production Production capacity
Project and ownership capex (US$m) target date (100%) Quarterly progress
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Petroleum projects
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
On schedule and
budget. The overall
Macedon (Australia) 200 million cubic feet project is 45%
71.43% Gas 1,050 CY13 gas per day. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
10,000 bpd condensate
and processing On revised schedule
Bass Strait Kipper capacity of 80 million and budget. The
(Australia) 32.5% - cubic feet gas per overall project is 88%
50% Gas/Gas Liquids 900 CY12(a) day. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
11,000 bpd condensate
and processing On revised schedule
Bass Strait Turrum capacity of 200 and budget. The
(Australia) 50% million cubic feet gas overall project is 72%
Gas/Gas Liquids 1,350 CY13 per day. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
On budget. Steady
state production
North West Shelf North remains on track for
Rankin B Gas CY13. The overall
Compression 2,500 million cubic project is 85%
(Australia) 16.67% LNG 850 CY13 feet gas per day. complete.
North West Shelf To maintain LNG plant
Greater Western throughput from the Project approved by
Flank-A (Australia) North West Shelf all JV partners in
16.67% LNG 400 CY16 operations. December 2011.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Minerals projects
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
On revised schedule
and budget. The
overall project is 94%
complete. Marradong
mine has been
Worsley Efficiency & commissioned and is
Growth (Australia) 86% 1.1 million tpa of ramping up to expected
Alumina 2,995 Q1 CY12 additional alumina. capacity.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
In commissioning phase
with first production
now expected in Q1
Increases ore CY12. The overall
Antamina Expansion processing capacity to project
(Peru) 33.75% Copper 435 Q1 CY12 130,000 tpd. is 79% complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
The relocation of the
in-pit crushing and
conveyor
infrastructure On schedule and
provides access to budget. The overall
Escondida Ore Access higher project is 77%
(Chile) 57.5% Copper 319 Q2 CY12 grade ore. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Project consists of a
pushback of the
existing Misery open On schedule and
EKATI Misery Open Pit pit which was mined budget. The overall
Project (Canada) 80% from 2001 to project is 16%
Diamonds 323 CY15 2005. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Increases mining and
processing capacity to
35 million tpa with
incremental On schedule and
WAIO Jimblebar Mine debottlenecking budget. The overall
Expansion (Australia) opportunities to 55 project is 21%
96% Iron Ore 3,300(b) Q1 CY14 million tpa. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Increases total inner
harbour capacity to
WAIO Port Hedland 220 million tpa with On schedule and
Inner Harbour debottlenecking budget. The overall
Expansion (Australia) opportunities project is 42%
85% Iron Ore 1,900(b) H2 CY12 to 240 million tpa. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
WAIO Port Blending and Optimises resource and On schedule and
Rail Yard Facilities enhances efficiency budget. The overall
(Australia) 85% Iron across the WAIO supply project is 13%
Ore 1,400(b) H2 CY14 chain. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
To maintain iron ore
WAIO Orebody 24 production output from Approval announced.
(Australia) 85% Iron the Newman Joint See News Release dated
Ore 698 H2 CY12 Venture operations. 16 November 2011.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Increases iron ore
pellet production On schedule and
Samarco Fourth Pellet capacity by 8.3 budget. The overall
Plant (Brazil) 50% million tpa to 30.5 project is 18%
Iron Ore 1,750 H1 CY14 million tpa. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Greenfield mine
development with
capacity to produce On schedule and
4.5 million tpa of budget. The overall
Daunia (Australia) 50% export metallurgical project is 27%
Metallurgical Coal 800 CY13 coal. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Increases productive
capacity by 0.4 On schedule and
Broadmeadow Life million tpa and budget. The overall
Extension (Australia) extends life of the project is 56%
50%Metallurgical Coal 450 CY13 mine by 21 years. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Increases port
capacity from 44
million tpa to 55 On schedule and
Hay Point Stage Three million tpa and budget. The overall
Expansion (Australia) reduces storm project is 36%
50% Metallurgical Coal 1,250(b) CY14 vulnerability. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Greenfield mine
development and
expansion of the Peak
Downs Mine with
capacity to produce
Caval Ridge 8.0 million tpa of Approval announced.
(Australia) 50% export metallurgical See News Release dated
Metallurgical Coal 2,100(b) CY14 coal. 1 November 2011.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
On schedule and
budget. The overall
Increases run-of-mine project is 62%
thermal coal complete. First
RX1 Project production by production is now
(Australia) 100% approximately 4 expected
Energy Coal 400 H2 CY12 million tpa. in H2 CY12.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Increases saleable
thermal coal
production by 8 On schedule and
Cerrejon P40 Project million tpa to budget. The overall
(Colombia) 33.3% approximately 40 project is 11%
Energy Coal 437 CY13 million tpa. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Newcastle Third Port Increases total coal On schedule and
Project Stage 3 terminal capacity from budget. The overall
(Australia) 35.5% 53 million tpa to 66 project is 12%
Energy Coal 367 CY14 million tpa. complete.
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Substantial increase in the Spence Mineral Resource
BHP Billiton today announced a near 700 per cent increase in the
Mineral Resource tonnage of the wholly owned Spence mine in
northern Chile. This increase reflects the initial declaration of a
significant hypogene (chalcopyrite) extension of the supergene
(chalcocite and copper oxide) mineralisation that comprises the
current Mineral Resource. The reporting of hypogene Mineral
Resource follows a four year US$30 million brownfield exploration
program.
This significant Mineral Resource increase, in addition to the
previously announced 129 per cent(c) increase in the Mineral
Resource surrounding Escondida and a 32 per cent(c) increase in the
Antamina Mineral Resource, further demonstrates the continued
success of BHP Billiton's extensive brownfield exploration program.
Elsewhere in the portfolio, a total of 542 thousand metres was
drilled across the Pilbara in the 2011 calendar year, contributing
to a 20 per cent(d) increase in the WAIO Mineral Resource to 19.3
billion tonnes(d) as reported in the 2011 Annual Report. In the
Saskatchewan potash basin, BHP Billiton's activities included the
completion of a 3D seismic survey and deep drilling on an
exploration target, and four seismic 2D programs. In our
Metallurgical Coal business, a total of 267 thousand metres was
drilled across the Bowen Basin during the 2011 calendar year,
increasing our confidence in the Mineral Resource underpinning our
development projects including Daunia and Caval Ridge.
Mineral Resource - Spence (100%)(e)
As at 31 December 2011
Measured
Resource Indicated Resource Inferred Resource Total Resource
----------- ------------- --------- -------------- ------------------- -------------------- --------------------
BHP Millions Millions Millions Millions
Billiton of dry of dry of dry of dry
Commodity interest metric % metric % ppm metric % ppm metric % ppm
Deposit(f) Ore type % tonnes TCu tonnes TCu Mo tonnes TCu Mo tonnes TCu Mo
----------- ------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
Copper
----------- ------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
Spence(g) Oxide 100 53 0.99 14 0.83 - 0.3 0.46 - 68 0.95 -
----------- ------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
Low-grade oxide and
sulphide 8 0.25 9 0.25 - 2.4 0.23 - 20 0.25 -
------------------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
Supergene sulphide 156 0.96 62 0.64 - 4.0 0.54 - 221 0.86 -
------------------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
Transitional sulphide 24 0.72 9 0.51 - 0.7 0.38 - 34 0.66 -
------------------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
Hypogene sulphide - - 1,184 0.46 148 1,167 0.39 86 2,352 0.43 117
------------------------- --------- -------- ---- -------- ---- --- --------- ---- --- --------- ---- ---
As at 30 June 2011
Total Resource
--------------------- ----------------------------- --------------------- -----------------------------------
BHP Billiton interest %
Commodity Deposit(f) Ore type % Millions of dry metric tonnes TCu
--------------------- ----------------------------- --------------------- ----------------------------- ----
Copper
--------------------- ----------------------------- --------------------- ----------------------------- ----
Spence(g) Oxide 100 64 1.01
--------------------- ----------------------------- --------------------- ----------------------------- ----
Low-grade oxide and sulphide 22 0.24
--------------------------------------------------- --------------------- ----------------------------- ----
Supergene sulphide 222 0.91
--------------------------------------------------- --------------------- ----------------------------- ----
Transitional sulphide 37 0.65
--------------------------------------------------- --------------------- ----------------------------- ----
Hypogene sulphide - -
--------------------------------------------------- --------------------- ----------------------------- ----
Minerals exploration
Greenfield exploration continued on copper targets in South
America, Mongolia and Zambia; nickel and copper targets in
Australia. Exploration for iron ore, potash and uranium was
undertaken in a number of regions including Australia, Africa and
the Americas.
For the December 2011 half year, BHP Billiton spent US$532
million on minerals exploration, of which US$451 million was
expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in
the process of drilling as at 31 December 2011.
Well Location BHP Billiton equity Status
--------------- ---------------------------------- -------------------------- -------------------------------------
Plugged and abandoned Hydrocarbons
Deep Blue-1 Gulf of Mexico GC 723 31.875% (Noble operator) encountered
--------------- ---------------------------------- -------------------------- -------------------------------------
Plugged and abandoned Hydrocarbons
encountered See news release dated 7
Mad Dog North-1 Gulf of Mexico GC 738 23.9% (BP operator)(h) September 2011
--------------- ---------------------------------- -------------------------- -------------------------------------
Jujur-1 Sabah Malaysia Block N 60% (Operator) Temporarily suspended
--------------- ---------------------------------- -------------------------- -------------------------------------
Julong Centre Brunei Block CA-01 22.5% (Total operator) Drilling ahead
--------------- ---------------------------------- -------------------------- -------------------------------------
Seraph-1 North West Shelf Australia WA-3-L 16.67% (Woodside operator) Plugged and abandoned Dry hole
--------------- ---------------------------------- -------------------------- -------------------------------------
Gunflint-3 Gulf of Mexico MC948 11.2% (Noble operator) Drilling ahead
--------------- ---------------------------------- -------------------------- -------------------------------------
Plugged and abandoned Hydrocarbons
Tidepole East North West Shelf Australia WA-28-P 16.67% (Woodside operator) encountered
--------------- ---------------------------------- -------------------------- -------------------------------------
Petroleum exploration expenditure for the December 2011 half
year was US$565 million, of which US$265 million was expensed. Our
guidance for petroleum exploration expenditure for the 2012
financial year is US$1.4 billion, including the new Onshore US
exploration.
(a) Facilities ready for first production pending resolution of
mercury content.
(b) Excludes announced pre-commitment funding.
(c) This BHP Billiton Mineral Resource information was sourced
from the BHP Billiton 2011 Annual Report. This document can be
viewed at www.bhpbilliton.com. The Mineral Resource information is
compiled by Richard Preece (FAusIMM) - Escondida and Jhon Espinoza
(MAusIMM) - Antamina, who are full time employees of BHP Billiton
and who have the required qualifications and experience to qualify
as Competent Persons under the JORC Code and consent to the form
and context in which it appears above. Mineral Resources are stated
on a 100% basis. The detailed breakdown of Escondida Mineral
Resources is 3.1bt @ 0.75% Cu Measured, 4.7bt @ 0.59% Cu Indicated,
11.7bt @ 0.49% Cu Inferred, and Antamina Mineral Resources is 187mt
@ 0.85% Cu Measured, 1,019mt @ 0.91% Cu Indicated, 708mt @ 0.73% Cu
Inferred.
(d) This BHP Billiton Mineral Resource information was sourced
from the BHP Billiton 2011 Annual Report. This document can be
viewed at www.bhpbilliton.com. The Mineral Resource information is
compiled by Paul Whitehouse (MAusIMM) - Western Australian Iron
Ore, who is a full time employee of BHP Billiton and who has the
required qualifications and experience to qualify as a Competent
Person under the JORC Code and consents to the form and context in
which it appears above. Mineral Resources are stated on a 100%
basis. The detailed breakdown of the Western Australian Iron Ore
Mineral Resources is 2.2bt @ 59.3% Fe Measured, 3.9bt @ 60.1% Fe
Indicated, 13.2bt @ 59.1% Fe Inferred.
(e) Competent Person - J. Cespedes (MAusIMM).
The statement of Mineral Resources is presented on a 100 per
cent basis and is based on information compiled by the above named
Competent Person and relates to Mineral Resources estimates as at
31 December 2011. Mr. Cespedes is a full time employee of BHP
Billiton Limited, has sufficient experience relevant to the style
of mineralisation and type of deposit under consideration and to
the activity he is undertaking to qualify as a Competent Person as
defined in the JORC Code, and he is a member of the Australasian
Institute of Mining & Metallurgy (AusIMM). The Competent Person
consents to the inclusion in this report of the matters based on
their information in the form and context in which it appears.
(f) %TCu - per cent total copper, ppm Mo - parts per million
molybdenum.
(g) Spence - The inclusion of hypogene sulphide Mineral Resource
is partly a result of exploration and infill drilling results, and
partly a result of selection (pre-feasibility) stage studies that
have demonstrated the potential of economic viability for open pit
mining, milling, and flotation of the hypogene resource. Hypogene
sulphides are newly reported chalcopyrite - molybdenite
mineralisation that are the precursor to and immediately underlies
the supergene and transitional sulphide ore types that are
currently processed through heap leaching and SX-EW. The deposit
has been evaluated with 108,000 meters of drill core in 264 holes
located on grid spacing of 100x100 metres for Indicated tonnages
and 200x200 meters for Inferred. Changes in the supergene resources
compared to 30 June 2011 include additional drilling, revised pit
design and depletion due to production during the first half of the
2012 financial year.
(h) BHP Billiton is operator of the well.
Further information on BHP Billiton can be found at:
www.bhpbilliton.com
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