Edgar Filing: BHP BILLITON LTD

Form 6-K

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

January 22, 2014


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)

171 COLLINS STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA		NEATHOUSE PLACE, LONDON, UNITED KINGDOM
(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): ¨

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

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a


NEWS RELEASE


Release Time		IMMEDIATE

Date		22 January 2014

Number		03/14

BHP BILLITON OPERATIONAL REVIEW

FOR THE HALF YEAR ENDED 31 DECEMBER 2013

•

Strong operating performance in the December 2013 half year with production records achieved across 10 operations and three commodities. Full year production guidance maintained for our Petroleum, Copper, Iron Ore and Coal businesses.

•

Western Australia Iron Ore achieved record production of 108 million tonnes (100% basis) for the December 2013 half year as the operation benefited from the early delivery of first production from the Jimblebar mine.

•

Queensland Coal achieved record production for the December 2013 half year as several productivity initiatives increased annualised production to 68 million tonnes (100% basis) in the December 2013 quarter.

•

Petroleum liquids production increased by 9% to 50 million barrels of oil equivalent in the December 2013 half year, underpinned by a 72% increase at Onshore US.

•

Another two major projects delivered first production in the December 2013 quarter and all remaining projects are on schedule and budget.

•

BHP Billiton’s share of capital and exploration expenditure for the 2014 financial year is expected to be US$16.1 billionⁱ, as planned.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Strong operating performance across our diversified portfolio in the December 2013 half year delivered a 10 per centⁱⁱ increase in production and volumes are expected to grow by 16 per centⁱⁱ over the two years to the end of the 2015 financial year. Iron ore and metallurgical coal were particularly strong and are very well positioned to achieve guidance, notwithstanding the general uncertainty that exists as we enter the wet season.

“Our productivity continues to improve and this was most clearly demonstrated by our Queensland Coal business which ran at an annualised rate of 68 million tonnes in the December 2013 quarter. Our productivity agenda is in full swing and we expect to carry strong momentum into the second half of the financial year.

“During the period, six of our major projects delivered first production and our 10 remaining projects, which are largely low risk, brownfield expansions, are tracking to plan. By maintaining strict financial discipline and increasing internal competition for capital we intend to further differentiate ourselves by achieving a superior rate of return on incremental investment. We also remain committed to actively managing our portfolio for value. This strategy leaves us well positioned to deliver a substantial increase in free cash flow and higher returns to shareholders.”

Note: Unless specified otherwise: variance analysis relates to the relative performance of BHP Billiton and/or its operations during the December 2013 half year compared with the December 2012 half year; production and sales volumes from subsidiaries (which include Escondida, Jimblebar, BHP Billiton Mitsui Coal and our manganese operations) are reported on a 100 per cent basis; volumes from equity accounted investments (which include Antamina, Samarco and Cerrejon Coal) and other operations are reported on a proportionate consolidation basis.

Summary


Production summary	DEC 2013 HALF		DEC 2013 QTR		DEC H13 vs DEC H12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13
Total petroleum products (million boe)		120.4		57.7		-1	%		-4	%		-8	%

Copper (‘000 tonnes)		843.2		439.9		6	%		6	%		9	%
Iron ore (‘000 tonnes)		97,820		48,867		19	%		16	%		0	%
Metallurgical coal (‘000 tonnes)		21,725		11,540		22	%		30	%		13	%
Energy coal (‘000 tonnes)		37,406		17,767		-1	%		-5	%		-10	%
Alumina (‘000 tonnes)		2,603		1,352		8	%		10	%		8	%
Aluminium (‘000 tonnes)		612		302		8	%		2	%		-3	%
Manganese ore (‘000 tonnes)		4,246		2,200		0	%		4	%		8	%
Manganese alloy (‘000 tonnes)		303		166		7	%		8	%		21	%
Nickel (‘000 tonnes)		78.2		37.8		9	%		9	%		-6	%

BHP Billiton maintained strong momentum in the December 2013 half year as production increased by 10 per centⁱⁱ. Full year production guidance is retained for our Petroleum, Copper, Iron Ore and Coal businesses.

The Cerrejon P40 (Colombia) and Western Australia Iron Ore (WAIO) Port Blending and Rail Yard Facilities projects achieved first production during the December 2013 quarter, as planned. These projects will not be reported in future Operational Reviews. Our 10 remaining major projects are on schedule and budget.

During the December 2013 quarter, BHP Billiton approved an investment of US$301 million (BHP Billiton share) to replace two shiploaders at WAIO’s Nelson Point operations in Port Hedland. The two new shiploaders will increase the reliability of our inner harbour port facilities and create additional port capacity that will be utilised as a series of debottlenecking initiatives increase the capacity of our supply chain to approximately 260 million tonnes per annum (mtpa) to 270 mtpa (100 per cent basis), at a low capital cost. Commissioning of the two replacement shiploaders is scheduled for the second half of the 2014 calendar year.

BHP Billiton’s active program of portfolio simplification delivered proceeds of US$2.2 billion in the December 2013 half year following the completion of the Jimblebar (Australia) and Pinto Valley (US) transactions. The sale of the Navajo mine (US) was also completed during the period.

On 2 January 2014, the Group also announced the redemption of Petrohawk Energy Corporation’s 10.5% Senior Notes due 2014 and 7.875% Senior Notes due 2015. The total aggregate principal value of the notes to be redeemed is approximately US$1.4 billion and the redemption will be completed on 3 February 2014.

The new International Financial Reporting Standard (IFRS) 10 came into effect on 1 July 2013. The adoption of this accounting standard requires the full consolidation of Escondida (Chile), as compared to the proportionate consolidation of our 57.5 per cent equity interest which was applied in prior periods. This report has been prepared on the basis of this new accounting standard and includes 100 per cent of Escondida, unless otherwise noted.

In addition, IFRS 11 and International Financial Reporting Interpretations Committee (IFRIC) 20 came into effect on 1 July 2013. The adoption of IFRS 11 requires entities that no longer meet the definition of joint control (such as Antamina and Cerrejon Coal) or are classified as joint ventures (such as Samarco) to be equity accounted, whereas they were proportionately consolidated in prior periods. IFRIC 20 affects the accounting treatment for production stripping.

Although the adoption of IFRS 10, IFRS 11 and IFRIC 20 does not impact the Company’s share of production or sales volumes, it does impact the Group’s consolidated financial accounts. We have therefore republished 2013 interim and full year financial information to reflect these and other accounting policy changes.

As a consequence of these new accounting standards and interpretations, our taxation expense, including royalty-related taxation, as a proportion of pre-tax profit is now expected to be in the range of 31 per cent to 34 per cent in the 2014 financial year. This excludes the influence of exchange rate movements, adjustments to deferred tax balances associated with the Minerals Resource Rent Tax and the impact of exceptional items.


BHP Billiton operational review for the half year ended 31 December 2013		2

Following the adoption of the new accounting standards, our guidance for capital and exploration expenditure will now refer to BHP Billiton share. On this basis, the Company’s share of capital and exploration expenditure is expected to be US$16.1 billionⁱ in the 2014 financial year.


FY14 capital and exploration expenditure guidance	US$ billion
Guidance provided on 20 August 2013ⁱⁱⁱ		16.2
Adjustment for: Change in accounting standards^iv		0.5

		16.7

Less: Non-controlling interests^v		(1.5	)
Add: BHP Billiton share of equity accounted investments^vi		0.9

Capital and exploration expenditure (BHP Billiton share)ⁱ		16.1

The relative change in the price achieved for our major commodities in the December 2013 half year is summarised in the table below.


Average realised prices^vii	DEC H13 vs DEC H12			DEC H13 vs JUN H13			DEC H13 vs FY13
Oil (crude and condensate) (US$/bbl)		-2	%		-4	%		-3	%
Natural gas (US$/mscf)		5	%		-2	%		1	%
US natural gas (US$/mscf)		15	%		-5	%		5	%
LNG (US$/mscf)		-2	%		0	%		-1	%
Copper (US$/lb)^viii		-6	%		4	%		-1	%
Iron ore (US$/wmt)^ix		10	%		-4	%		2	%
Hard coking coal (US$/t)		-18	%		-10	%		-13	%
Thermal coal (US$/t)^x		-11	%		-6	%		-9	%
Alumina (US$/t)^xi		0	%		-7	%		-4	%
Aluminium (US$/t)		-8	%		-7	%		-7	%
Manganese ore (US$/dmtu)^xi		4	%		-4	%		1	%
Manganese alloy (US$/t)		-13	%		-5	%		-9	%
Nickel metal (US$/t)		-17	%		-13	%		-15	%


BHP Billiton operational review for the half year ended 31 December 2013		3

Petroleum and Potash

Production


	DEC 2013 HALF		DEC 2013 QTR		DEC H13 vs DEC H12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13
Crude oil, condensate and natural gas liquids (‘000 boe)		50,026		23,973		9	%		3	%		-8	%
Natural gas (bcf)		422.31		202.65		-7	%		-8	%		-8	%

Total petroleum products (million boe)		120.4		57.7		-1	%		-4	%		-8	%

Total petroleum production – Total petroleum production for the December 2013 half year was 120.4 million barrels of oil equivalent. Guidance for the 2014 financial year remains unchanged at approximately 250 million barrels of oil equivalent.

Crude oil, condensate and natural gas liquids – A nine per cent increase in liquids production for the December 2013 half year was underpinned by a 72 per cent increase at Onshore US. This was supported by an 80 per cent increase at Atlantis (US) as volumes benefited from the start-up of a new production well in the September 2013 quarter. Atlantis production is expected to remain strong in the second half of the 2014 financial year with an additional well scheduled for completion.

The significant increase in liquids production at Onshore US and Atlantis during the period was partially offset by expected natural field decline across the broader Conventional business and scheduled downtime at Pyrenees (Australia). The one month maintenance outage of the floating production storage and off-take (FPSO) facility at Pyrenees was completed ahead of plan and the field had returned to full production of 34 thousand barrels per day (100 per cent basis) at the end of the period.

Onshore US liquids production for the December 2013 quarter was constrained by scheduled downtime across the Eagle Ford. This primarily reflected facility tie-ins in the Black Hawk to support significant growth in liquids production and the installation of additional production tubing for a number of wells at Hawkville to ensure their integrity over the long term. Guidance for the 2014 financial year remains unchanged with an anticipated 75 per cent increase in Onshore US liquids production.

Natural gas – Natural gas production declined by seven per cent in the December 2013 half year. The successful delivery of first gas from the Macedon project partially offset lower seasonal Bass Strait (both Australia) demand, as well as natural field decline at Haynesville (US), which followed our decision to prioritise Onshore US development drilling in the liquids rich Black Hawk region of the Eagle Ford.

Projects

Project and ownership

Capital
expenditure
(US$m)

Initial
production
target date

Capacity

Progress

North West Shelf

Greater Western

Flank-A

(Australia)

16.67% (non-operator)

400

CY16

To maintain LNG plant throughput from the North West Shelf operations.

On schedule and budget. The overall project is 68% complete.

Bass Strait Longford

Gas Conditioning

Plant

(Australia)

50% (non-operator)

520

CY16

Designed to process approximately 400 million cubic feet per day of high CO₂ gas.

On schedule and budget. The overall project is 25% complete.


BHP Billiton operational review for the half year ended 31 December 2013		4

Onshore US drilling and development expenditure totalled US$2.4 billion in the December 2013 half year. Approximately 75 per cent of drilling activity occurred in the Eagle Ford, with the majority focused on our Black Hawk acreage. The rate of expenditure is expected to slow in the second half of the 2014 financial year following a 35 per cent reduction in the Company’s active rig count to 26 during the period. Our high return development plans are underpinned by annual investment of approximately US$4.0 billion, subject to market conditions.

As highlighted at the recent Petroleum briefing, the optimisation of our dry gas program will result in a series of charges in the 2014 financial year including rig termination costs of approximately US$100 million (with the majority booked in the first half) and underutilised legacy gas pipeline commitment charges of approximately US$170 million. Following a successful evaluation program we will also incur approximately US$600 million in depreciation charges related to Permian production in the 2014 financial year.

Petroleum exploration

Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 31 December 2013.

Well

Location

Target

BHP
Billiton
equity

Spud date

Water depth

Total well
depth

Status

Stybarrow

East-1

Carnarvon

Basin

WA-32-L

Oil

50%

(Operator)

10 December
2013

675 metres

2,533 metres

Plugged and abandoned Hydrocarbons encountered

Non-commercial

Stybarrow

East-2

Carnarvon

Basin

WA-32-L

Oil

50%

(Operator)

26 December
2013

675 metres

2,670 metres

Plugged and abandoned

Dry hole

Petroleum exploration expenditure for the December 2013 half year was US$285 million, of which US$147 million was expensed. BHP Billiton also signed a Production Sharing Contract for Block 23b in Trinidad and Tobago, where the Group now has a 60 per cent interest and is the operator. A US$600 million exploration program, largely focused on the Gulf of Mexico (US) and Western Australia, is planned for the 2014 financial year.

Potash

Project and ownership

Investment
(US$m)

Scope

Progress

Jansen Potash

(Canada)

100%

2,600

Investment to finish the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.

On schedule and budget. The overall project is 16% complete.

Excavation of the production and service shafts paused in the December 2013 quarter to enable a thorough review of the activities completed to date and to ensure all learnings are captured and adopted in future works. Excavation is expected to resume in February 2014. The staggered manner in which we are progressing the production and service shafts allows us to mitigate risk and optimise their development. The project remains on schedule and budget.


BHP Billiton operational review for the half year ended 31 December 2013		5

Copper

Production


	DEC 2013 HALF		DEC 2013 QTR		DEC H13 vs DEC H12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13
Copper (‘000 tonnes)		843.2		439.9		6	%		6	%		9	%
Lead (tonnes)		94,284		47,839		-4	%		4	%		3	%
Zinc (tonnes)		61,410		32,855		18	%		25	%		15	%
Silver (‘000 ounces)		17,538		8,850		-4	%		1	%		2	%
Uranium oxide concentrate (Uranium) (tonnes)		1,978		1,008		-3	%		0	%		4	%

Copper – Total copper production increased by six per cent in the December 2013 half year to 843 thousand tonnes.

The adoption of IFRS 10 requires the full consolidation of Escondida, as compared to the proportionate consolidation of our 57.5 per cent equity interest which has been applied in prior periods. This report has been prepared on the basis of this new accounting standard and includes 100 per cent of Escondida.

BHP Billiton’s copper production guidance for the 2014 financial year remains unchanged at 1.7 million tonnes, although the Group’s equity interest is 1.2 million tonnes. Production in the second half is expected to be weighted towards the June 2014 quarter.

Escondida copper production increased by seven per cent in the December 2013 half year to 564 thousand tonnes as ongoing productivity initiatives supported increased mill throughput and recoveries, which more than offset lower ore grades. Escondida remains on track to produce approximately 1.1 million tonnes of copper in the 2014 financial year before increasing to approximately 1.3 million tonnes in the 2015 financial year.

Pampa Norte (Chile) copper production increased by 37 per cent from the September 2013 quarter as recoveries at Spence improved during the period. Spence achieved record mill throughput in the December 2013 half year, which will underpin a strong increase in production through the second half of the 2014 financial year. Full year volumes at Spence are expected to be in line with the prior corresponding period.

Antamina (Peru) achieved record copper production for the December 2013 half year. This was underpinned by record mining and milling throughput, together with higher average ore grades, as mining progressed through a copper rich ore zone. Full year copper production at Antamina is expected to remain at a similar level to the 2013 financial year given a projected decline in copper ore grades, consistent with the mine plan.

Olympic Dam (Australia) copper production benefited from improved smelter reliability during the December 2013 quarter, although planned maintenance is expected to impact the smelter over a 20 day period in the second half of the 2014 financial year. The operation achieved record material mined for the December 2013 half year. Copper production at Olympic Dam for the 2014 financial year is expected to be in line with the prior period.

At 31 December 2013, the Group had 437,749 tonnes of outstanding copper sales that were revalued at a weighted average price of US$3.33 per pound. The final price of these sales will be determined over the remainder of the 2014 financial year. In addition, 385,721 tonnes of copper sales from the 2013 financial year were subject to a finalisation adjustment in the current period. Provisional pricing and finalisation adjustments will increase earnings before interest and tax by US$196 million in the December 2013 half year (December 2012 half year: US$67 million increase).^xii

On 11 October 2013, BHP Billiton completed the sale of its Pinto Valley (US) mining operation and the associated San Manuel Arizona Railroad Company to Capstone Mining Corp. for US$653 million, after working capital adjustments.


BHP Billiton operational review for the half year ended 31 December 2013		6

Lead/silver – Lead and silver production increased by three and two per cent, respectively, from the September 2013 quarter. Antamina achieved record silver production for the December 2013 half year. In addition, Cannington (Australia) delivered record material mined over the same period, however lead and silver production was affected by lower average ore grades, consistent with the mine plan.

Zinc – Total zinc production increased by 18 per cent in the December 2013 half year, supported by higher average zinc grades at Cannington.

Uranium – Uranium production decreased by three per cent in the December 2013 half year as a result of planned maintenance at Olympic Dam.

Projects

Project and ownership

Capital
expenditure
(US$m)

Initial
production
target date

Capacity

Progress

Escondida Oxide

Leach Area Project

(Chile)

57.5%

721

H1 CY14

New dynamic leaching pad and mineral handling system. Maintains oxide leaching capacity.

On schedule and budget. The overall project is 86% complete.

Escondida Organic

Growth Project 1

(Chile)

57.5%

3,838

H1 CY15

Replaces the Los Colorados concentrator with a new 152,000 tonnes per day plant.

On schedule and budget. The overall project is 61% complete.

Escondida Water

Supply

(Chile)

57.5%

3,430

CY17

New desalination facility to ensure continued water supply to Escondida.

On schedule and budget. The overall project is 4% complete.


BHP Billiton operational review for the half year ended 31 December 2013		7

Iron Ore

Production


	DEC 2013 HALF		DEC 2013 QTR		DEC H13 vs DEC H12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13
Iron ore (‘000 tonnes)		97,820		48,867		19	%		16	%		0	%

Iron ore – Iron ore production increased by 19 per cent in the December 2013 half year to a record 98 million tonnes.

WAIO achieved record production of 108 million tonnes (100 per cent basis) for the December 2013 half year, despite weather related downtime and an increase in planned maintenance during the December 2013 quarter. This record result reflected strong operating performance, the early delivery of production from Jimblebar and a series of volume enhancing productivity initiatives, which included increased utilisation rates for several relocatable crushers installed at our operating mines. While these crushers have increased the capacity of our supply chain at a low capital cost and contributed to a significant rise in profitability, the previously signalled increase in the strip ratio at WAIO has more than offset the unit cost savings achieved across the broader supply chain.

Our WAIO business continues to perform strongly, however we have maintained production guidance of 212 million tonnes (100 per cent basis) for the 2014 financial year given the general uncertainty that exists as we enter the wet season.

The ramp up of phase one capacity at Jimblebar to 35 mtpa (100 per cent basis) is expected to be completed by the end of the 2015 financial year. Longer term, a low cost option to expand Jimblebar to 55 mtpa (100 per cent basis) and the broader debottlenecking of the supply chain are expected to underpin further capital efficient growth in capacity to approximately 260 mtpa to 270 mtpa (100 per cent basis).

Samarco’s (Brazil) three pellet plants continued to operate at capacity during the period.

Total iron ore production guidance for the 2014 financial year remains unchanged at 192 million tonnes.

Projects

Project and ownership

Capital
expenditure
(US$m)

Initial
production
target date

Capacity

Progress

WAIO Port Blending

and Rail Yard

Facilities

(Australia)

85%

1,000

^xiii

H2 CY14

Optimises resource and enhances efficiency across the WAIO supply chain.

First ore was handled in Q4 CY13. On schedule and budget on the basis of the revised scope. The overall project is 98% complete.

Samarco Fourth

Pellet Plant

(Brazil)

50%

1,750

H1 CY14

Increases iron ore pellet production capacity by 8.3 million tonnes per annum to 30.5 million tonnes per annum.

On schedule and budget. The overall project is 98% complete.

On 25 November 2013, BHP Billiton approved an investment of US$301 million (BHP Billiton share) to replace two shiploaders at WAIO’s Nelson Point operations in Port Hedland. The two new shiploaders will increase the reliability of our inner harbour port facilities and create additional port capacity that will be utilised as a series of debottlenecking initiatives increase the capacity of our supply chain. Commissioning of the two replacement shiploaders is scheduled for the second half of the 2014 calendar year.


BHP Billiton operational review for the half year ended 31 December 2013		8

Coal

Production


	DEC 2013 HALF		DEC 2013 QTR		DEC H13 vs DEC H12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13
Metallurgical coal (‘000 tonnes)		21,725		11,540		22	%		30	%		13	%
Energy coal (‘000 tonnes)		37,406		17,767		-1	%		-5	%		-10	%

Metallurgical coal – Metallurgical coal production increased by 22 per cent in the December 2013 half year to a record 22 million tonnes.

Queensland Coal (Australia) delivered record production and sales volumes for the December 2013 half year, underpinned by strong performance across all operations. This included record production at South Walker Creek, Saraji and Poitrel. The business continued to benefit from our productivity initiatives, achieving annualised production of 68 million tonnes (100 per cent basis) in the December 2013 quarter.

Illawarra Coal (Australia) production declined by 13 per cent in the December 2013 half year, due to an extended outage at Dendrobium and a scheduled longwall move at West Cliff in the September 2013 quarter. Operations are expected to return to normal production levels by the end of the March 2014 quarter.

Our Queensland Coal business continues to perform strongly, however we have retained total metallurgical coal production guidance of 41 million tonnes for the 2014 financial year given the general uncertainty that exists as we enter the wet season.

Energy coal – Energy coal production of 37 million tonnes was in line with the December 2012 half year. Record production at both New South Wales Energy Coal (Australia) and Cerrejon Coal (Colombia) offset the impact of industrial action, lower yields and adverse weather conditions at BECSA (South Africa).

Total energy coal production guidance for the 2014 financial year remains unchanged at 73 million tonnes.

BHP Billiton completed the sale of the Navajo mine to the Navajo Transitional Energy Company effective 30 December 2013. As BHP Billiton will remain the mine manager and operator until 2016, production and financial results for Navajo Mine will continue to be reported by the Group.

Projects

Project and ownership

Capital
expenditure
(US$m)

Initial
production
target date

Capacity

Progress

Cerrejon P40

Project

(Colombia)

33.3%

437

CY13

Increases saleable thermal coal production by 8 million tonnes per annum to approximately 40 million tonnes per annum.

First coal was handled in Q4 CY13. Port still to be completed. On schedule and budget. The overall project is 86% complete.

Caval Ridge

(Australia)

50%

1,870

^xiii

CY14

Greenfield mine development to produce an initial 5.5 million tonnes per annum of export metallurgical coal.

On schedule and budget. The overall project is 96% complete.

Hay Point Stage

Three Expansion

(Australia)

50%

1,505

^xiii

CY15

Increases port capacity from 44 million tonnes per annum to 55 million tonnes per annum and reduces storm vulnerability.

On revised schedule and budget. The overall project is 77% complete.

Appin Area 9

(Australia)

100%

845

CY16

Maintains Illawarra Coal’s production capacity with a replacement mining domain and capacity to produce 3.5 million tonnes per annum of metallurgical coal.

On schedule and budget. The overall project is 57% complete.


BHP Billiton operational review for the half year ended 31 December 2013		9

Aluminium, Manganese and Nickel

Production


	DEC 2013 HALF		DEC 2013 QTR		DEC H13 vs DEC H12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13
Alumina (‘000 tonnes)		2,603		1,352		8	%		10	%		8	%
Aluminium (‘000 tonnes)		612		302		8	%		2	%		-3	%
Manganese ore (‘000 tonnes)		4,246		2,200		0	%		4	%		8	%
Manganese alloy (‘000 tonnes)		303		166		7	%		8	%		21	%
Nickel (‘000 tonnes)		78.2		37.8		9	%		9	%		-6	%

Alumina – Alumina production increased by eight per cent in the December 2013 half year to a record 2.6 million tonnes. The Efficiency and Growth project at Worsley (Australia) reached nameplate capacity and the Alumar refinery (Brazil) achieved record production.

Aluminium – Aluminium production increased by eight per cent in the December 2013 half year to 612 thousand tonnes. Production benefited from strong operating performance at our Southern African smelters which included a half year production record at Hillside (South Africa).

Manganese ore – Manganese ore production was in line with the December 2012 half year as improved performance at Hotazel (South Africa) was offset by lower recoveries at GEMCO (Australia).

Manganese alloy – Manganese alloy volumes increased by seven per cent from the December 2012 half year which was affected by the temporary suspension of operations at TEMCO (Australia).

Nickel – Nickel production increased by nine per cent from the December 2012 half year which was affected by planned maintenance at the Nickel West Kalgoorlie smelter and Kwinana refinery (both Australia).

On 31 October 2013, production at Nickel West Leinster Perseverance underground mine was suspended following a significant seismic event. A subsequent review of the incident determined it was unsafe to resume operations. Mining at Rocky’s Reward open cut mine, near Leinster, will provide an alternative ore supply to our integrated business. Total saleable nickel production at Nickel West in the 2014 financial year is expected to be in line with the prior year, although the impact on production for the 2015 financial year continues to be assessed.


BHP Billiton operational review for the half year ended 31 December 2013		10

Minerals exploration

Greenfield minerals exploration is focused on advancing copper targets within Chile and Peru. Minerals exploration expenditure in the December 2013 half year was US$219 million, of which US$195 million was expensed.

ⁱ	Represents the share of capital and exploration expenditure (on an accruals basis) attributable to BHP Billiton shareholders. Includes BHP Billiton proportionate share of equity accounted investments; excludes non-controlling interests and deferred stripping.

ⁱⁱ	Refers to copper equivalent production based on average realised product prices for the 2013 financial year.

ⁱⁱⁱ	Excludes deferred stripping.

^iv	Includes adjustment for IFRS 10 and IFRS 11.

^v	Primarily includes Escondida, Jimblebar, BHP Billiton Mitsui Coal (BMC) and our manganese operations.

^vi	Primarily includes Antamina, Samarco and Cerrejon Coal.

^vii	Excludes third party product.

^viii

Excludes Antamina.

^ix	Excludes freight revenue.

^x	Export sales only, excludes Cerrejon Coal. Includes thermal coal sales from metallurgical coal mines.

^xi	Excludes internal sales.

^xii	Includes third party product.

^xiii

Excludes announced pre-commitment funding.


BHP Billiton operational review for the half year ended 31 December 2013		11

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


Media Relations Australia Emily Perry Tel: +61 3 9609 2800 Mobile: +61 477 325 803 email: Emily.Perry@bhpbilliton.com Fiona Hadley Tel: +61 3 9609 2211 Mobile: +61 427 777 908 email: Fiona.Hadley@bhpbilliton.com Eleanor Nichols Tel: +61 3 9609 2360 Mobile: +61 407 064 748 email: Eleanor.Nichols@bhpbilliton.com United Kingdom Ruban Yogarajah Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 email: Ruban.Yogarajah@bhpbilliton.com Jennifer White Tel: +44 20 7802 7462 Mobile: +44 7827 253 764 email: Jennifer.White@bhpbilliton.com Americas Ruban Yogarajah Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 email: Ruban.Yogarajah@bhpbilliton.com		Investor Relations Australia Tara Dines Mobile: +61 499 249 005 email: Tara.Dines@bhpbilliton.com Jodie Phillips Tel: +61 3 9609 2069 Mobile: +61 418 710 516 email: Jodie.Phillips@bhpbilliton.com United Kingdom and South Africa Jonathan Price Tel: +44 20 7802 4131 Mobile: +44 7990 527 726 email: Jonathan.H.Price@bhpbilliton.com Dean Simon Tel: +44 20 7802 7461 Mobile: +44 7717 511 193 email: Dean.Simon@bhpbilliton.com Americas James Agar Tel: +1 212 310 1421 Mobile: +1 347 882 3011 email: James.Agar@bhpbilliton.com Joseph Suarez Tel: +1 212 310 1422 Mobile: +1 646 400 3803 email: Joseph.Suarez@bhpbilliton.com

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BHP Billiton operational review for the half year ended 31 December 2013		12

BHP BILLITON PRODUCTION SUMMARY


		QUARTER ENDED						YEAR TO DATE				% CHANGE
		DEC 2012		SEP 2013		DEC 2013		DEC 2013		DEC 2012		DEC YTD13 vs DEC YTD12			DEC Q13 vs DEC Q12			DEC Q13 vs SEP Q13

Petroleum
Crude oil & condensate	(‘000 bbl)		19,228		20,421		19,202		39,623		37,264		6	%		0	%		-6	%
Natural gas	(bcf)		219.66		219.66		202.65		422.31		452.51		-7	%		-8	%		-8	%
NGL	(‘000 boe)		4,064		5,632		4,771		10,403		8,475		23	%		17	%		-15	%
Total petroleum products	(million boe)		59.9		62.7		57.7		120.4		121.2		-1	%		-4	%		-8	%

Copper
Copper	(‘000 tonnes)		414.6		403.3		439.9		843.2		794.0		6	%		6	%		9	%
Lead	(tonnes)		46,135		46,445		47,839		94,284		98,318		-4	%		4	%		3	%
Zinc	(tonnes)		26,209		28,555		32,855		61,410		52,131		18	%		25	%		15	%
Gold	(ounces)		42,574		45,045		45,655		90,700		82,542		10	%		7	%		1	%
Silver	(‘000 ounces)		8,772		8,688		8,850		17,538		18,218		-4	%		1	%		2	%
Uranium oxide concentrate	(tonnes)		1,005		970		1,008		1,978		2,035		-3	%		0	%		4	%
Molybdenum	(tonnes)		410		458		379		837		864		-3	%		-8	%		-17	%

Iron ore
Iron ore	(‘000 tonnes)		42,190		48,953		48,867		97,820		81,962		19	%		16	%		0	%

Coal
Metallurgical coal	(‘000 tonnes)		8,888		10,185		11,540		21,725		17,826		22	%		30	%		13	%
Energy coal	(‘000 tonnes)		18,738		19,639		17,767		37,406		37,882		-1	%		-5	%		-10	%

Aluminium, Manganese and Nickel
Alumina	(‘000 tonnes)		1,232		1,251		1,352		2,603		2,402		8	%		10	%		8	%
Aluminium	(‘000 tonnes)		297		310		302		612		566		8	%		2	%		-3	%
Manganese ore	(‘000 tonnes)		2,117		2,046		2,200		4,246		4,263		0	%		4	%		8	%
Manganese alloy	(‘000 tonnes)		153		137		166		303		283		7	%		8	%		21	%
Nickel	(‘000 tonnes)		34.7		40.4		37.8		78.2		71.7		9	%		9	%		-6	%

Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.


BHP Billiton operational review for the half year ended 31 December 2013		13

BHP BILLITON ATTRIBUTABLE PRODUCTION


				QUARTER ENDED										YEAR TO DATE
	BHP Billiton interest			DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Petroleum
Production
Crude oil and condensate (‘000 bbl)					19,228		16,689		18,559		20,421		19,202		39,623		37,264
Natural gas (bcf)					219.66		207.27		214.49		219.66		202.65		422.31		452.51
NGL (‘000 boe) (a)					4,064		4,182		4,882		5,632		4,771		10,403		8,475

Total petroleum products (million boe)					59.9		55.4		59.2		62.7		57.7		120.4		121.2


Copper (b)
Copper
Payable metal in concentrate (‘000 tonnes)
Escondida (c)		57.5	%		209.9		222.6		223.0		205.1		208.0		413.1		385.9
Antamina		33.8	%		39.6		25.2		34.7		41.9		42.4		84.3		79.8
Pinto Valley		100	%		0.5		5.3		10.8		10.9		1.6		12.5		0.5

Total					250.0		253.1		268.5		257.9		252.0		509.9		466.2


Cathode (‘000 tonnes)
Escondida (c)		57.5	%		71.0		75.3		79.3		73.2		77.5		150.7		143.3
Pampa Norte (d)		100	%		58.8		56.4		64.7		43.5		59.4		102.9		111.5
Pinto Valley		100	%		1.2		1.2		1.3		0.8		0.1		0.9		2.4
Olympic Dam		100	%		33.6		47.7		47.9		27.9		50.9		78.8		70.6

Total					164.6		180.6		193.2		145.4		187.9		333.3		327.8

Total Copper					414.6		433.7		461.7		403.3		439.9		843.2		794.0


Lead
Payable metal in concentrate (tonnes)
Cannington		100	%		45,937		48,899		66,666		46,287		47,259		93,546		97,860
Antamina		33.8	%		198		181		368		158		580		738		458

Total					46,135		49,080		67,034		46,445		47,839		94,284		98,318


Zinc
Payable metal in concentrate (tonnes)
Cannington		100	%		13,622		11,045		20,206		16,033		16,123		32,156		25,030
Antamina		33.8	%		12,587		19,148		25,675		12,522		16,732		29,254		27,101

Total					26,209		30,193		45,881		28,555		32,855		61,410		52,131


Gold
Payable metal in concentrate (ounces)
Escondida (c)		57.5	%		18,359		18,626		17,593		17,347		19,384		36,731		35,310
Olympic Dam (refined gold)		100	%		24,215		27,531		38,477		27,649		26,271		53,920		47,232
Pinto Valley		100	%		—		—		—		49		—		49		—

Total					42,574		46,157		56,070		45,045		45,655		90,700		82,542


Silver
Payable metal in concentrate (‘000 ounces)
Escondida (c)		57.5	%		696		743		890		891		982		1,873		1,327
Antamina		33.8	%		934		802		1,297		1,205		1,350		2,555		1,853
Cannington		100	%		6,949		7,323		9,101		6,361		6,306		12,667		14,638
Olympic Dam (refined silver)		100	%		193		214		266		190		212		402		400
Pinto Valley		100	%		—		11		48		41		—		41		—

Total					8,772		9,093		11,602		8,688		8,850		17,538		18,218


Uranium oxide concentrate
Payable metal in concentrate (tonnes)
Olympic Dam		100	%		1,005		926		1,105		970		1,008		1,978		2,035

Total					1,005		926		1,105		970		1,008		1,978		2,035


Molybdenum
Payable metal in concentrate (tonnes)
Antamina		33.8	%		410		321		376		458		379		837		864

Total					410		321		376		458		379		837		864

Refer footnotes on page 16.


BHP Billiton operational review for the half year ended 31 December 2013		14

BHP BILLITON ATTRIBUTABLE PRODUCTION


				QUARTER ENDED										YEAR TO DATE
	BHP Billiton interest			DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Iron Ore
Production (‘000 tonnes) (e)
Newman (f)		85	%		12,809		13,028		15,408		15,362		14,186		29,548		24,561
Goldsworthy Joint Venture		85	%		378		296		—		202		428		630		810
Area C Joint Venture		85	%		10,245		10,983		12,552		11,814		11,383		23,197		21,182
Yandi Joint Venture		85	%		15,954		13,302		17,027		18,146		17,135		35,281		29,725
Jimblebar (g)		85	%		—		—		—		700		2,894		3,594		—
Samarco		50	%		2,804		2,596		2,702		2,729		2,841		5,570		5,684

Total					42,190		40,205		47,689		48,953		48,867		97,820		81,962


Coal
Metallurgical coal
Production (‘000 tonnes) (h)
BMA		50	%		5,440		5,327		6,696		6,705		7,494		14,199		10,622
BHP Mitsui Coal (i)		80	%		1,589		1,862		1,846		2,057		2,114		4,171		3,355
Illawarra		100	%		1,859		1,777		2,316		1,423		1,932		3,355		3,849

Total					8,888		8,966		10,858		10,185		11,540		21,725		17,826


Energy coal
Production (‘000 tonnes)
South Africa (j)		90	%		7,969		7,302		7,902		7,937		7,036		14,973		16,423
USA		100	%		3,280		3,351		2,752		3,145		2,896		6,041		6,688
Australia		100	%		4,827		3,837		4,893		5,372		4,544		9,916		9,280
Colombia		33.3	%		2,662		1,512		3,014		3,185		3,291		6,476		5,491

Total					18,738		16,002		18,561		19,639		17,767		37,406		37,882


Aluminium, Manganese and Nickel
Alumina
Saleable production (‘000 tonnes)
Worsley		86	%		944		911		961		946		1,024		1,970		1,803
Alumar		36	%		288		302		304		305		328		633		599

Total					1,232		1,213		1,265		1,251		1,352		2,603		2,402


Aluminium
Production (‘000 tonnes)
Hillside		100	%		167		178		181		184		183		367		306
Bayside		100	%		24		24		24		24		24		48		48
Alumar		40	%		39		37		39		35		28		63		78
Mozal		47.1	%		67		64		66		67		67		134		134

Total					297		303		310		310		302		612		566


Manganese ores
Saleable production (‘000 tonnes)
South Africa (k)		44.4	%		834		859		939		864		944		1,808		1,692
Australia (k)		60	%		1,283		1,149		1,307		1,182		1,256		2,438		2,571

Total					2,117		2,008		2,246		2,046		2,200		4,246		4,263


Manganese alloys
Saleable production (‘000 tonnes)
South Africa (k) (l)		60	%		91		86		104		86		94		180		184
Australia (k)		60	%		62		57		78		51		72		123		99

Total					153		143		182		137		166		303		283


Nickel
Saleable production (‘000 tonnes)
Cerro Matoso		99.9	%		12.4		12.3		12.8		12.0		12.3		24.3		25.7
Nickel West		100	%		22.3		29.8		27.5		28.4		25.5		53.9		46.0

Total					34.7		42.1		40.3		40.4		37.8		78.2		71.7

Refer footnotes on page 16.


BHP Billiton operational review for the half year ended 31 December 2013		15

BHP BILLITON ATTRIBUTABLE PRODUCTION

(a)	LPG and ethane are reported as Natural Gas Liquid (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe).

(b)	Metal production is reported on the basis of payable metal.

(c)	Shown on 100% basis following the application of the new IFRS 10 which came into effect from 1 July 2013. BHP Billiton interest in saleable production is 57.5%.

(d)	Includes Cerro Colorado and Spence.

(e)	Iron ore production is reported on a wet tonnes basis.

(f)	Newman includes Mt Newman Joint Venture and Wheelarra.

(g)	Shown on 100% basis. BHP Billiton interest in saleable production is 85%.

(h)	Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

(i)	Shown on 100% basis. BHP Billiton interest in saleable production is 80%.

(j)	Shown on 100% basis. BHP Billiton interest in saleable production is 90%.

(k)	Shown on 100% basis. BHP Billiton interest in saleable production is 60%, except Hotazel Manganese Mines which is 44.4%.

(l)	Production includes Medium Carbon Ferro Manganese.


BHP Billiton operational review for the half year ended 31 December 2013		16

PRODUCTION AND SALES REPORT


	QUARTER ENDED										YEAR TO DATE
	DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Petroleum
BHP Billiton attributable production unless otherwise stated.

Crude oil and condensate (‘000 barrels)
Bass Strait		2,081		1,934		2,229		2,247		1,958		4,205		4,650
North West Shelf		1,829		1,526		1,646		1,865		1,497		3,362		3,696
Stybarrow		464		323		401		348		317		665		998
Pyrenees		2,379		1,659		1,817		1,707		1,295		3,002		4,984
Other Australia (a)		15		15		12		14		12		26		32
Atlantis (b)		2,376		1,471		2,594		2,953		3,988		6,941		3,930
Mad Dog (b)		906		791		649		732		496		1,228		1,275
Shenzi (b)		4,008		3,580		3,378		3,467		3,201		6,668		7,791
Onshore US (c)		2,658		3,071		3,614		5,044		4,238		9,282		5,016
Trinidad/Tobago		362		331		259		320		314		634		738
Other Americas (b) (d)		410		384		403		378		373		751		777
UK (e)		355		326		282		142		305		447		615
Algeria		1,316		1,207		1,210		1,142		1,156		2,298		2,625
Pakistan		69		71		65		62		52		114		137

Total		19,228		16,689		18,559		20,421		19,202		39,623		37,264


Natural gas (billion cubic feet)
Bass Strait		26.67		23.38		33.63		34.20		22.73		56.93		66.73
North West Shelf		34.09		31.29		30.29		34.18		30.35		64.53		69.42
Other Australia (a)		5.48		5.17		4.54		9.32		15.12		24.44		11.68
Atlantis (b)		0.89		0.54		0.83		1.26		1.85		3.11		1.48
Mad Dog (b)		0.18		0.15		0.05		0.11		0.07		0.18		0.24
Shenzi (b)		0.94		0.81		0.78		0.80		0.76		1.56		3.05
Onshore US (c)		123.03		115.69		118.08		114.89		105.29		220.18		245.62
Trinidad/Tobago		9.15		8.84		9.07		9.90		9.66		19.56		18.36
Other Americas (b) (d)		0.48		0.59		0.29		0.27		0.29		0.56		0.83
UK (e)		5.26		6.44		4.09		3.47		6.25		9.72		8.55
Pakistan		13.49		14.37		12.84		11.26		10.28		21.54		26.55

Total		219.66		207.27		214.49		219.66		202.65		422.31		452.51


NGL (‘000 barrels of oil equivalent)
Bass Strait		1,342		1,405		1,753		2,001		1,603		3,604		3,395
North West Shelf		354		323		312		399		234		633		739
Atlantis (b)		209		96		200		255		348		603		263
Mad Dog (b)		72		55		—		38		24		62		88
Shenzi (b)		324		269		224		266		252		518		694
Onshore US (c)		1,736		2,004		2,375		2,656		2,295		4,951		3,252
Other Americas (b) (d)		16		13		9		11		10		21		33
UK (e)		11		17		9		6		5		11		11

Total		4,064		4,182		4,882		5,632		4,771		10,403		8,475



Total Petroleum Products		59.9		55.4		59.2		62.7		57.7		120.4		121.2

(million barrels of oil equivalent) (f)

(a)	Other Australia includes Minerva and Macedon. Macedon achieved first production in August 2013.

(b)	Gulf of Mexico volumes are net of royalties.

(c)	Onshore US volumes are net of mineral holder royalties.

(d)	Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

(e)	An agreement to sell Liverpool Bay was reached in October 2013 and the transaction is expected to close before the end of the 2014 financial year.

(f)	Total barrels of oil equivalent (boe) conversions are based on 6,000 scf of natural gas equals 1 boe.


BHP Billiton operational review for the half year ended 31 December 2013		17

PRODUCTION AND SALES REPORT


		QUARTER ENDED															YEAR TO DATE
		DEC 2012			MAR 2013			JUN 2013			SEP 2013			DEC 2013			DEC 2013			DEC 2012

Copper
BHP Billiton attributable production and sales unless otherwise stated. Metals production is payable metal unless otherwise stated.

Escondida, Chile (a)
Material mined	(‘000 tonnes)		96,938			94,567			98,665			93,744			93,814			187,558			199,437
Sulphide ore milled	(‘000 tonnes)		18,796			18,964			19,295			18,276			19,584			37,860			35,646
Average copper grade	(%)		1.39	%		1.44	%		1.42	%		1.37	%		1.30	%		1.33	%		1.37	%
Production ex mill	(‘000 tonnes)		216.6			229.3			231.9			210.6			214.4			425.0			401.8

Production
Payable copper	(‘000 tonnes)		209.9			222.6			223.0			205.1			208.0			413.1			385.9
Payable gold concentrate	(fine ounces)		18,359			18,626			17,593			17,347			19,384			36,731			35,310
Copper cathode (EW)	(‘000 tonnes)		71.0			75.3			79.3			73.2			77.5			150.7			143.3
Payable silver concentrate	(‘000 ounces)		696			743			890			891			982			1,873			1,327

Sales
Payable copper	(‘000 tonnes)		226.6			215.8			228.2			192.3			228.1			420.4			392.2
Payable gold concentrate	(fine ounces)		19,235			18,325			15,831			12,490			18,602			31,092			34,885
Copper cathode (EW)	(‘000 tonnes)		81.4			59.1			95.0			63.0			86.7			149.7			148.9
Payable silver concentrate	(‘000 ounces)		772			720			908			836			1,076			1,912			1,335

(a) Shown on 100% basis following the application of the new IFRS 10 which came into effect from 1 July 2013. BHP Billiton interest in saleable production is 57.5%.

Pampa Norte, Chile
Cerro Colorado
Material mined	(‘000 tonnes)		15,722			14,964			16,303			15,771			17,487			33,258			31,789
Ore milled	(‘000 tonnes)		4,206			4,350			4,351			4,161			4,501			8,662			8,711
Average copper grade	(%)		0.66	%		0.65	%		0.82	%		0.78	%		0.76	%		0.77	%		0.60	%

Production
Copper cathode (EW)	(‘000 tonnes)		17.9			14.6			21.2			17.6			19.4			37.0			35.7

Sales
Copper cathode (EW)	(‘000 tonnes)		18.8			13.7			21.7			17.3			17.6			34.9			34.9

Spence
Material mined	(‘000 tonnes)		25,999			28,861			28,646			24,331			27,911			52,242			53,540
Ore milled	(‘000 tonnes)		4,161			4,041			4,146			4,860			4,788			9,648			7,913
Average copper grade	(%)		1.29	%		1.38	%		1.16	%		1.11	%		1.25	%		1.18	%		1.23	%

Production
Copper cathode (EW)	(‘000 tonnes)		40.9			41.8			43.5			25.9			40.0			65.9			75.8

Sales
Copper cathode (EW)	(‘000 tonnes)		42.6			29.8			57.9			25.9			35.9			61.8			73.7


BHP Billiton operational review for the half year ended 31 December 2013		18

PRODUCTION AND SALES REPORT


		QUARTER ENDED															YEAR TO DATE
		DEC 2012			MAR 2013			JUN 2013			SEP 2013			DEC 2013			DEC 2013			DEC 2012

Copper
BHP Billiton attributable production and sales unless otherwise stated. Metals production is payable metal unless otherwise stated.

Antamina, Peru
Material mined (100%)	(‘000 tonnes)		49,246			48,032			56,254			56,428			50,872			107,300			103,728
Sulphide ore milled (100%)	(‘000 tonnes)		11,752			10,330			12,424			11,765			12,521			24,286			24,026
Average head grades
- Copper	(%)		1.16	%		0.88	%		1.03	%		1.21	%		1.15	%		1.18	%		1.15	%
- Zinc	(%)		0.64	%		0.93	%		1.02	%		0.56	%		0.72	%		0.64	%		0.65	%

Production
Payable copper	(‘000 tonnes)		39.6			25.2			34.7			41.9			42.4			84.3			79.8
Payable zinc	(tonnes)		12,587			19,148			25,675			12,522			16,732			29,254			27,101
Payable silver	(‘000 ounces)		934			802			1,297			1,205			1,350			2,555			1,853
Payable lead	(tonnes)		198			181			368			158			580			738			458
Payable molybdenum	(tonnes)		410			321			376			458			379			837			864

Sales
Payable copper	(‘000 tonnes)		42.7			24.1			31.9			41.3			44.5			85.8			82.4
Payable zinc	(tonnes)		17,874			16,062			22,560			16,123			18,397			34,520			33,393
Payable silver	(‘000 ounces)		1,101			772			1,165			1,503			1,367			2,870			1,950
Payable lead	(tonnes)		276			115			262			297			368			665			606
Payable molybdenum	(tonnes)		381			371			283			411			442			853			917

Cannington, Australia
Material mined	(‘000 tonnes)		817			810			802			893			974			1,867			1,534
Ore milled	(‘000 tonnes)		793			713			866			750			852			1,602			1,566
Average head grades
- Silver	(g/t)		317			364			401			315			274			293			336
- Lead	(%)		7.0	%		7.7	%		9.1	%		7.4	%		6.7	%		7.0	%		7.3	%
- Zinc	(%)		2.9	%		2.7	%		3.8	%		3.2	%		3.1	%		3.1	%		2.7	%

Production
Payable silver	(‘000 ounces)		6,949			7,323			9,101			6,361			6,306			12,667			14,638
Payable lead	(tonnes)		45,937			48,899			66,666			46,287			47,259			93,546			97,860
Payable zinc	(tonnes)		13,622			11,045			20,206			16,033			16,123			32,156			25,030

Sales
Payable silver	(‘000 ounces)		6,694			7,265			7,793			7,844			6,548			14,392			15,200
Payable lead	(tonnes)		46,319			48,661			64,633			56,500			47,185			103,685			105,361
Payable zinc	(tonnes)		16,321			9,439			21,056			17,286			18,241			35,527			26,700


BHP Billiton operational review for the half year ended 31 December 2013		19

PRODUCTION AND SALES REPORT


		QUARTER ENDED															YEAR TO DATE
		DEC 2012			MAR 2013			JUN 2013			SEP 2013			DEC 2013			DEC 2013			DEC 2012

Copper
BHP Billiton attributable production and sales unless otherwise stated. Metals production is payable metal unless otherwise stated.

Olympic Dam, Australia
Material mined (a)	(‘000 tonnes)		2,123			2,448			2,750			2,897			2,717			5,614			4,349
Ore milled	(‘000 tonnes)		2,435			2,353			2,641			2,404			2,641			5,045			4,906
Average copper grade	(%)		1.71	%		1.73	%		1.86	%		1.85	%		1.86	%		1.86	%		1.81	%
Average uranium grade	(kg/t)		0.51			0.50			0.56			0.53			0.52			0.52			0.53

Production
Copper cathode (ER)	(‘000 tonnes)		30.4			44.7			45.1			25.9			47.6			73.5			64.4
Copper cathode (EW)	(‘000 tonnes)		3.2			3.0			2.8			2.0			3.3			5.3			6.2
Uranium oxide concentrate	(tonnes)		1,005			926			1,105			970			1,008			1,978			2,035
Refined gold	(fine ounces)		24,215			27,531			38,477			27,649			26,271			53,920			47,232
Refined silver	(‘000 ounces)		193			214			266			190			212			402			400

Sales
Copper cathode (ER)	(‘000 tonnes)		33.2			40.1			46.4			26.8			43.3			70.1			68.3
Copper cathode (EW)	(‘000 tonnes)		2.7			3.1			3.5			2.1			2.8			4.9			6.1
Uranium oxide concentrate	(tonnes)		1,343			816			1,374			930			1,037			1,967			1,958
Refined gold	(fine ounces)		25,227			24,678			38,394			21,675			32,226			53,901			46,176
Refined silver	(‘000 ounces)		169			211			275			176			177			353			434

(a) Material mined refers to run of mine ore mined and hoisted.

Pinto Valley, US (a)
Production
Payable copper	(‘000 tonnes)		0.5			5.3			10.8			10.9			1.6			12.5			0.5
Copper cathode (EW)	(‘000 tonnes)		1.2			1.2			1.3			0.8			0.1			0.9			2.4
Payable silver	(‘000 ounces)		—			11			48			41			—			41			—
Payable gold	(ounces)		—			—			—			49			—			49			—

Sales
Payable copper	(‘000 tonnes)		—			2.6			9.9			7.3			—			7.3			—
Copper cathode (EW)	(‘000 tonnes)		1.2			1.1			1.4			1.1			—			1.1			2.4
Payable silver	(‘000 ounces)		—			11			48			41			—			41			—
Payable gold	(ounces)		—			—			—			49			—			49			—

(a)	On 11 October 2013 BHP Billiton completed the sale of its Pinto Valley operations.


BHP Billiton operational review for the half year ended 31 December 2013		20

PRODUCTION AND SALES REPORT


	QUARTER ENDED										YEAR TO DATE
	DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Iron Ore
BHP Billiton attributable production and sales unless otherwise stated.
(‘000 tonnes)

Iron ore
Pilbara, Australia
Production (a)
Newman (b)		12,809		13,028		15,408		15,362		14,186		29,548		24,561
Goldsworthy Joint Venture		378		296		—		202		428		630		810
Area C Joint Venture		10,245		10,983		12,552		11,814		11,383		23,197		21,182
Yandi Joint Venture		15,954		13,302		17,027		18,146		17,135		35,281		29,725
Jimblebar (c)		—		—		—		700		2,894		3,594		—

Total		39,386		37,609		44,987		46,224		46,026		92,250		76,278

Total production (100%)		46,337		44,245		52,926		54,258		53,638		107,896		89,740

Sales
Lump		9,806		9,339		11,284		10,292		9,996		20,288		18,144
Fines		30,479		28,370		34,621		35,235		35,756		70,991		59,197

Total		40,285		37,709		45,905		45,527		45,752		91,279		77,341

Total sales (100%)		47,393		44,363		54,006		53,561		53,808		107,369		90,988

(a) Iron ore production and sales are reported on a wet tonnes basis. (b) Newman includes Mt Newman Joint Venture and Wheelarra. (c) Shown on 100% basis. BHP Billiton interest in saleable production is 85%.

Samarco, Brazil
Production (a)		2,804		2,596		2,702		2,729		2,841		5,570		5,684

Sales		3,227		2,515		2,651		2,676		3,025		5,701		5,849

(a)	Iron ore production and sales are reported on a wet tonnes basis.


BHP Billiton operational review for the half year ended 31 December 2013		21

PRODUCTION AND SALES REPORT


	QUARTER ENDED										YEAR TO DATE
	DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Coal
BHP Billiton attributable production and sales unless otherwise stated.
(‘000 tonnes)

Metallurgical coal
Queensland, Australia
Production (a)
BMA
Blackwater		1,588		1,157		1,539		1,691		1,655		3,346		2,736
Goonyella		1,392		1,478		1,816		1,737		1,999		3,736		2,927
Peak Downs		1,151		1,225		1,140		1,112		1,201		2,313		2,180
Saraji		994		711		971		1,197		1,195		2,392		1,767
Gregory Joint Venture (b)		315		657		854		464		850		1,314		1,012
Daunia		—		99		376		504		594		1,098		—

BMA total		5,440		5,327		6,696		6,705		7,494		14,199		10,622


BHP Mitsui Coal (c)
South Walker Creek		864		1,188		1,215		1,298		1,313		2,611		1,948
Poitrel		725		674		631		759		801		1,560		1,407

BHP Mitsui Coal total		1,589		1,862		1,846		2,057		2,114		4,171		3,355

Queensland total		7,029		7,189		8,542		8,762		9,608		18,370		13,977


Sales
Coking coal		5,561		4,933		6,316		6,123		6,517		12,640		9,619
Weak coking coal		1,820		2,029		2,417		2,397		2,505		4,902		3,365
Thermal coal		237		75		30		160		271		431		476

Total		7,618		7,037		8,763		8,680		9,293		17,973		13,460


(a) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal. (b) Gregory open-cut ceased production on 10 October 2012. (c) Shown on 100% basis. BHP Billiton interest in saleable production is 80%.

Illawarra, Australia
Production (a)		1,859		1,777		2,316		1,423		1,932		3,355		3,849

Sales
Coking coal		1,785		1,595		1,877		1,084		1,495		2,579		3,560
Thermal coal		327		145		436		359		318		677		829

Total		2,112		1,740		2,313		1,443		1,813		3,256		4,389

(a)	Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.


BHP Billiton operational review for the half year ended 31 December 2013		22

PRODUCTION AND SALES REPORT


	QUARTER ENDED										YEAR TO DATE
	DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Coal
BHP Billiton attributable production and sales unless otherwise stated.
(‘000 tonnes)

Energy coal
South Africa (a)
Production		7,969		7,302		7,902		7,937		7,036		14,973		16,423

Sales
Export		3,583		3,604		3,363		2,504		4,087		6,591		6,968
Local utility		4,615		4,171		4,353		4,543		3,811		8,354		9,484
Inland		28		32		24		—		—		—		66

Total		8,226		7,807		7,740		7,047		7,898		14,945		16,518


(a) Shown on 100% basis. BHP Billiton interest in saleable production is 90%.

New Mexico, US
Production
Navajo Coal (a)		2,012		1,944		1,569		1,670		1,400		3,070		3,955
San Juan Coal		1,268		1,407		1,183		1,475		1,496		2,971		2,733

Total		3,280		3,351		2,752		3,145		2,896		6,041		6,688


Sales - local utility		3,265		3,275		2,815		3,129		2,950		6,079		6,685

(a) BHP Billiton completed the sale of Navajo Mine on 30 December 2013. BHP Billiton will remain the mine manager and operator until 2016 and therefore production will continue to be reported by the Group.

NSW Energy Coal, Australia
Production		4,827		3,837		4,893		5,372		4,544		9,916		9,280

Sales
Export		4,187		4,505		4,289		4,037		4,887		8,924		8,675
Inland		265		174		478		446		332		778		515

Total		4,452		4,679		4,767		4,483		5,219		9,702		9,190


Cerrejon Coal, Colombia
Production		2,662		1,512		3,014		3,185		3,291		6,476		5,491

Sales - export		2,702		1,774		3,157		3,155		3,067		6,222		5,332


BHP Billiton operational review for the half year ended 31 December 2013		23

PRODUCTION AND SALES REPORT


	QUARTER ENDED										YEAR TO DATE
	DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012

Aluminium, Manganese and Nickel
BHP Billiton attributable production and sales unless otherwise stated.
(‘000 tonnes)

Alumina
Saleable production
Worsley, Australia		944		911		961		946		1,024		1,970		1,803
Alumar, Brazil		288		302		304		305		328		633		599

Total		1,232		1,213		1,265		1,251		1,352		2,603		2,402


Sales
Worsley, Australia		916		910		1,031		897		961		1,858		1,736
Alumar, Brazil		298		296		329		278		320		598		650

Total		1,214		1,206		1,360		1,175		1,281		2,456		2,386


Aluminium
Production
Hillside, South Africa		167		178		181		184		183		367		306
Bayside, South Africa		24		24		24		24		24		48		48
Alumar, Brazil		39		37		39		35		28		63		78
Mozal, Mozambique		67		64		66		67		67		134		134

Total		297		303		310		310		302		612		566


Sales
Hillside, South Africa		171		166		191		180		173		353		310
Bayside, South Africa		26		27		26		24		24		48		52
Alumar, Brazil		41		39		38		34		28		62		87
Mozal, Mozambique		65		76		65		68		74		142		123

Total		303		308		320		306		299		605		572


Manganese ore
Saleable production
South Africa (a)		834		859		939		864		944		1,808		1,692
Australia (a)		1,283		1,149		1,307		1,182		1,256		2,438		2,571

Total		2,117		2,008		2,246		2,046		2,200		4,246		4,263


Sales
South Africa (a)		808		835		970		920		714		1,634		1,686
Australia (a)		979		1,326		1,102		1,078		1,445		2,523		2,150

Total		1,787		2,161		2,072		1,998		2,159		4,157		3,836


Manganese alloy
Saleable production
South Africa (a) (b)		91		86		104		86		94		180		184
Australia (a)		62		57		78		51		72		123		99

Total		153		143		182		137		166		303		283


Sales
South Africa (a) (b)		112		89		110		88		87		175		186
Australia (a)		52		68		61		54		63		117		98

Total		164		157		171		142		150		292		284

(a)	Shown on 100% basis. BHP Billiton interest in saleable production is 60%, except Hotazel Manganese Mines which is 44.4%.

(b)	Production includes Medium Carbon Ferro Manganese.


BHP Billiton operational review for the half year ended 31 December 2013		24

PRODUCTION AND SALES REPORT


	QUARTER ENDED										YEAR TO DATE
	DEC 2012		MAR 2013		JUN 2013		SEP 2013		DEC 2013		DEC 2013		DEC 2012
Aluminium, Manganese and Nickel
BHP Billiton attributable production and sales unless otherwise stated.
(‘000 tonnes)

Nickel
Cerro Matoso, Colombia
Production		12.4		12.3		12.8		12.0		12.3		24.3		25.7

Sales		13.7		13.0		13.1		12.6		12.3		24.9		26.0

Nickel West, Australia
Saleable production
Nickel contained in concentrate		4.1		3.1		3.0		3.4		2.4		5.8		5.4
Nickel contained in finished matte		7.6		9.7		8.6		8.8		6.1		14.9		13.4
Nickel metal		10.6		17.0		15.9		16.2		17.0		33.2		27.2

Nickel production		22.3		29.8		27.5		28.4		25.5		53.9		46.0


Sales
Nickel contained in concentrate		2.9		3.1		3.0		2.7		2.8		5.5		4.5
Nickel contained in finished matte		7.0		9.0		9.7		7.8		7.4		15.2		13.7
Nickel metal		12.8		19.5		17.7		15.3		17.2		32.5		27.0

Nickel sales		22.7		31.6		30.4		25.8		27.4		53.2		45.2


BHP Billiton operational review for the half year ended 31 December 2013		25

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: January 22, 2014	By:	/s/ Jane McAloon
	Name:	Jane McAloon
	Title:	Group Company Secretary