A summary of the Half Year Production Report (2H 2012) for BHP-BILLITON 23/01/13

 

 

 

 

 

 

 

PETROLEUM

• Total production was 121 million barrels of oil equivalent. Total year estimate 240 mboe
• Crude oil, condensate and natural gas liquids – up 4% in Sept quarter due to growth in Onshore US liquids.
•  Seasonal reduction in Bass Strait production.
•  Decline in production at Pyrenees Offshore Oil Field in Exmouth WA sub-basin.
• Record Onshore US Liquids production of 48 thousand barrels per day in 4Q 2012..
• Drilling program in liquids-rich Eagle Ford and Permian areas expected to increase production
• Lower natural gas production 4Q 2012 following a strong production in 3Q

Aluminium & Nickel

Alumina – The 85% owned Worsley mine and refinery in SW Western Australia contributed to record alumina production.

Aluminium – 10% increase in production at Hillside, South Africa.

Nickel – 6% decline in 4Q 2012 due to maintenance at the West Kalgoorlie smelter and Kwinana refinery.

 

BASE METALS

Copper

• copper concentrate production increased 70% in 2H 2012 at Escondida (Chile) The copper grade increased, by 1.39%
• record copper production at Antamina (Peru)
• 26% reduction at Olympic Dam due to a planned smelter outage.

Lead/Silver

• Lower production at Cannington near Mt Isa in Queensland. It is a low cost producer.

Zinc – production in line with comparable periods.

Uranium – 8% increase in production at Olympic Dan as a result of improved plant availability

 

DIAMONDS & SPECIALTY PRODUCTS

EKATI (Canada) production was lower

Diamond businesses to be sold to Harry Winston Diamond Mines Ltd for US$500 million if approved in 1H 2013

 

 IRON ORE

West Australian Iron Ore (WAIO) delivered its 12^th 2H production and sales record.

The installation of a fifth car dumper on Finucane Island has increased the Port Headland capacity from 188 to 220 million tonnes per annum.

The expansion of the Jimblebar Mine which is one of seven mines in the Pilbara region, starts production in 1Q 2014. Mine production should then match the port capacity.

BHP anticipates that with a 5% increase in production in 2013 the present guidance of 183 million tonnes will be met.

 

 

This summary of BHP’s 2H 2012 production report highlights the complexities and breadth of BHP-BILLITON’s operations.

The report is positive for 2012/13 profitability with iron ore and copper the best performing activities.

The Petroleum division has the potential for significant growth from US shale oil and gas.