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
July 17, 2013
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter)
VICTORIA, AUSTRALIA (Jurisdiction of incorporation or organisation)
180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA (Address of principal executive offices) |
BHP BILLITON PLC (REG. NO. 3196209) (Exact name of Registrant as specified in its charter)
ENGLAND AND WALES (Jurisdiction of incorporation or organisation)
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM (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): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
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
bhpbilliton
resourcing the future
Release Time IMMEDIATE
Date 17 July 2013
Number 16/13
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT FOR THE YEAR ENDED 30 JUNE 2013
This report covers the Group’s exploration and development activities for the June 2013 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
The majority of BHP Billiton’s 18 low risk, largely brownfield, major projects are scheduled to deliver first production before the end of the 2015 financial year.
Our Western Australia Iron Ore (WAIO) business achieved several milestones during the 2013 financial year, which included an increase in port capacity to 220 million tonnes per annum (100 per cent basis) following the successful installation of all major infrastructure associated with the WAIO Port Hedland Inner Harbour Expansion project. In addition, WAIO Orebody 24 delivered first production during the period.
The WAIO Jimblebar Mine Expansion, which will increase supply chain capacity to 220 million tonnes per annum (100 per cent basis), is now expected to achieve first production in the December 2013 quarter, ahead of schedule. The project is on budget in local currency, although the capital cost in US dollars is expected to be 10 per cent, or US$340 million higher than the original budget. This increase has been more than offset by a change in scope and US$400 million reduction in the budget for the WAIO Port Blending and Rail Yard Facilities project, which reflects the decision to prioritise capital efficient growth in the inner harbour. As a result, WAIO remains well positioned to deliver 220 million tonnes per annum of supply chain capacity ahead of schedule and on budget.
The Daunia and Broadmeadow Life Extension projects (both metallurgical coal) also delivered first production during the 2013 financial year, ahead of schedule. In addition, first coal was loaded from the Newcastle Third Port Stage 3 project (energy coal) during the June 2013 quarter. The WAIO Port Hedland Inner Harbour Expansion, WAIO Orebody 24 and Daunia projects will not be reported in future Exploration and Development Reports. BHP Billiton’s Onshore US drilling and development expenditure totalled US$4.8 billion in the 2013 financial year and reflected a higher working interest across several fields and an increase in drilling speed, which delivered more wells per rig and a higher rate of completion activity. Over 80 per cent of our Onshore US expenditure was directed towards the Eagle Ford and Permian, as planned. An improvement in drilling productivity is expected to facilitate a reduction in our rig count in the 2014 financial year, while a lower level of capital expenditure for Onshore US will be increasingly focused on our liquids rich acreage in the Eagle Ford.
BHP Billiton continued to simplify its portfolio during the period. On 20 June 2013 the Company announced an extension of its WAIO long term joint venture relationship with ITOCHU Corporation (ITOCHU) and Mitsui & Co., Ltd (Mitsui). This transaction was completed in July 2013 and has aligned interests across the WAIO supply chain. Under the terms of the agreement, ITOCHU and Mitsui invested approximately US$0.8 billion and US$0.7 billion, respectively, in shares and loans of BHP Iron Ore (Jimblebar) Pty Ltd, representing an eight per cent and seven per cent interest in the Jimblebar mining hub and resource. The consideration included a share of capital costs associated with the Jimblebar Mine Expansion project.
During the June 2013 quarter, BHP Billiton also completed the sale of its 8.33 per cent interest in the East Browse Joint Venture and 20 per cent interest in the West Browse Joint Venture, located offshore Western Australia, to PetroChina International Investment (Australia) Pty Ltd for US$1.63 billion plus customary purchase price adjustments.
Project and ownership Share of approved capex (US$m) Initial production target date Production capacity (100%) Quarterly progress
Petroleum projects
Macedon 1,050 CY13
200 million cubic feet gas per day.
On schedule and budget. Commissioning activities are progressing and the overall project is 99% complete.
(Australia)
71.43%
Operator
Gas
Bass Strait Turrum(a) 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 91% complete.
(Australia)
50%
Non operator
Gas/Gas Liquids
Bass Strait Longford 520 CY16
Designed to process approximately 400 million cubic feet per day of high CO2 gas.
On schedule and budget. The overall project is 4% complete.
Gas Conditioning Plant
(Australia)
50%
Non operator
Gas
North West Shelf North 850 CY13 2,500 million cubic feet On budget. Commissioning activities
Rankin B Gas gas per day. are progressing and the overall project
Compression is 99% complete.
(Australia)
16.67%
Non operator
LNG
North West Shelf 400 CY16 To maintain LNG plant On schedule and budget. The overall
Greater Western throughput from the North project is 51% complete.
Flank-A West Shelf operations.
(Australia)
16.67%
Non operator
LNG
Minerals projects
Escondida Organic 2,207 H1 CY15 Replaces the Los On schedule and budget. The overall
Growth Project 1 Colorados concentrator project is 41% complete.
(Chile) with a new 152,000 tpd
57.5% plant.
Copper
BHP Billiton Exploration and Development Report for the year ended 30 June 2013 2
Project and ownership Share of approved capex (US$m) Initial production target date Production capacity (100%) Quarterly progress
Escondida Oxide Leach 414 H1 CY14 New dynamic leaching On schedule and budget. The overall
Area Project pad and mineral handling project is 61% complete.
(Chile) system. Maintains oxide
57.5% leaching capacity.
Copper
WAIO Jimblebar Mine 3,640(b)(c) H2 CY13 Increases mining and Ahead of schedule and on budget in
Expansion processing capacity to local currency, although the capital
(Australia) 35 million tpa with cost in US dollars is expected to be
96%(b) incremental 10% higher than the original budget.
Iron Ore debottlenecking The overall project is 89% complete.
opportunities to
55 million tpa.
WAIO Port Hedland 1,900(c) H2 CY12 Increases total inner First production was achieved in Q4
Inner Harbour harbour capacity to CY12. On schedule and budget. The
Expansion 220 million tpa. overall project is 92% complete.
(Australia) Debottlenecking
85% opportunities that would
Iron Ore add substantial, low cost capacity are being evaluated.
WAIO Port Blending 1,000(c)(d) H2 CY14 Optimises resource and On schedule and budget on the basis
and Rail Yard Facilities enhances efficiency of the revised scope. The overall
(Australia) across the WAIO supply project is 86% complete.
85% chain.
Iron Ore
WAIO Orebody 24 698 H2 CY12 Maintains iron ore First production was achieved in Q4
(Australia) production output from CY12. On schedule and budget. The
85% the Newman Joint overall project is 88% complete.
Iron Ore Venture operations.
Samarco Fourth Pellet 1,750 H1 CY14 Increases iron ore pellet On schedule and budget. The overall
Plant production capacity by project is 90% complete.
(Brazil) 8.3 million tpa to
50% 30.5 million tpa.
Iron Ore
Daunia 800 Q1 CY13 Greenfield mine First production was achieved in Q1
(Australia) development with CY13, ahead of schedule. Ramp-up is
50% 4.5 million tpa of export also progressing ahead of plan. The
Metallurgical Coal metallurgical coal final capital cost is expected to be capacity. below budget. The overall project is 97% complete.
Hay Point Stage Three 1,250(c) CY14 Increases port capacity Schedule and budget are under
Expansion from 44 million tpa to review. The overall project is 66%
(Australia) 55 million tpa and complete.
50% reduces storm
Metallurgical Coal vulnerability.
Caval Ridge 1,870(c) CY14 Greenfield mine On schedule and budget. The overall
(Australia) development to produce project is 71% complete.
50% an initial 5.5 million tpa of
Metallurgical Coal export metallurgical coal.
BHP Billiton Exploration and Development Report for the year ended 30 June 2013 3
Project and ownership Share of approved capex (US$m) Initial production target date Production capacity (100%) Quarterly progress
Appin Area 9 845 CY16 Maintains Illawarra Coal’s On schedule and budget. The overall
(Australia) production capacity with a project is 44% complete.
100% replacement mining
Metallurgical Coal domain and capacity to produce 3.5 million tpa of metallurgical coal.
Cerrejon P40 Project 437 CY13 Increases saleable On schedule and budget. The overall
(Colombia) thermal coal production project is 71% complete.
33.3% by 8 million tpa to
Energy Coal approximately 40 million tpa.
Newcastle Third Port 367 Q2 CY13 Increases total coal First coal was loaded in Q2 CY13,
Project Stage 3 terminal capacity from ahead of schedule and on budget. The
(Australia) 53 million tpa to overall project is 76% complete.
35.5% 66 million tpa.
Energy Coal
Minerals exploration
Greenfield minerals exploration is focused on advancing copper targets within Chile and Peru. Minerals exploration expenditure for the 2013 financial year was US$651 million, of which US$500 million was expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 30 June 2013.
Well Location BHP Billiton equity Status
Raptor-1/ST-1 Gulf of Mexico 50% Drilling ahead DC535 (Anadarko operator)
Homevale-1 Western Australia 60% Plugged and abandoned WA-475P (Operator) Dry hole
Petroleum exploration expenditure for the 2013 financial year was US$675 million, of which US$522 million was expensed.
BHP Billiton expanded its Petroleum exploration portfolio with the signing of Production Sharing Contracts for Trinidad and Tobago’s deep water Blocks 5, 6, 28 and 29.
(a) Initial production through the Turrum facilities, scheduled for the 2013 calendar year, will be low CO2 gas. Additional high CO2 production from the Turrum reservoir will come online with completion of the Longford Gas Conditioning Plant in the 2016 calendar year.
(b) Following completion of the ITOCHU and Mitsui transaction in July 2013, BHP Billiton’s economic interest in the Jimblebar Mine Expansion project is now 85 per cent and our share of approved capital expenditure is reduced to US$3,220 million.
(c) Excludes announced pre-commitment funding.
(d) The construction of port blending and rail yard facilities at the South Stockyard is no longer included in the scope of the WAIO Port Blending and Rail Yard Facilities project.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
BHP Billiton Exploration and Development Report for the year ended 30 June 2013 4
Media Relations Investor Relations
Australia Australia
Gabrielle Notley James Agar
Tel: +61 3 9609 3830 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 467 807 064
email: Gabrielle.Notley@bhpbilliton.com email: James.Agar@bhpbilliton.com
Fiona Hadley Andrew Gunn
Tel: +61 3 9609 2211 Mobile: +61 427 777 908 Tel: +61 3 9609 3575 Mobile: +61 402 087 354
email: Fiona.Hadley@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Eleanor Nichols United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile: +61 407 064 748 email: Eleanor.Nichols@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 James Agar
Tel: +61 3 9609 2222 Mobile: +61 467 807 064
Jennifer White email: James.Agar@bhpbilliton.com
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764 email: Jennifer.White@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
BHP Billiton Exploration and Development Report for the year ended 30 June 2013 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: July 17, 2013 | By: | /s/ Jane McAloon | ||
| Name: | Jane McAloon | |||
| Title: | Group Company Secretary | |||