Production
2.3 Production
2.3.1 Petroleum
The table below details our Petroleum CSG‘s historical net crude oil and condensate, natural gas and natural gas liquids production, primarily by asset, for each of the three years ended 30 June 2008, 2007 and 2006. We have shown volumes of marketable production after deduction of applicable royalties, fuel and flare. We have included in the table average production costs per unit of production and average sales prices for oil and condensate and natural gas for each of those periods.
| BHP Billiton Group share of production Year ended 30 June | |||
|---|---|---|---|
| 2008 | 2007 | 2006 | |
| Total petroleum products production (million barrels of oil equivalent) (2) | 129.50 | 116.19 | 117.36 |
| Average sales price | |||
| Oil and condensate (US$ per barrel) | 96.27 | 63.87 | 61.90 |
| Natural gas (US$ per thousand cubic feet) | 3.87 | 3.19 | 3.33 |
| Average production cost (3) | |||
| US$ per barrel of oil equivalent (including indirect taxes) | 7.30 | 7.16 | 6.40 |
| US$ per barrel of oil equivalent (excluding indirect taxes) | 5.40 | 5.50 | 5.01 |
| Petroleum Crude oil and condensate (’000 of barrels) | |||
| Bass Strait | 12,843 | 14,231 | 14,682 |
| North West Shelf | 9,090 | 10,765 | 9,119 |
| Atlantis | 7,406 | - | - |
| Shenzi | 548 | - | - |
| Liverpool Bay & Bruce / Keith | 3,640 | 4,656 | 5,699 |
| ROD & Ohanet | 6,722 | 7,591 | 7,446 |
| Other – Australia/Asia | 8,777 | 1,365 | 1,600 |
| Other – Americas | 8,417 | 6,560 | 7,327 |
| Total crude oil and condensate | 57,443 | 45,168 | 45,873 |
| Natural gas (billion cubic feet) | |||
| Bass Strait (1) | 123.93 | 114.50 | 109.74 |
| North West Shelf (1) | 108.49 | 105.49 | 104.16 |
| Atlantis | 3.73 | - | - |
| Shenzi | 0.14 | - | - |
| Liverpool Bay & Bruce / Keith | 45.21 | 53.27 | 60.82 |
| Other – Australia/Asia | 78.44 | 74.83 | 77.68 |
| Other – Americas | 8.07 | 8.73 | 8.04 |
| Total natural gas | 368.01 | 356.82 | 360.44 |
| Natural Gas Liquids (’000 of barrels) (1) | |||
| Bass Strait | 7,755 | 7,756 | 7,740 |
| North West Shelf | 1,498 | 1,689 | 1,684 |
| Liverpool Bay & Bruce / Keith | 426 | 563 | 488 |
| ROD & Ohanet | 1,045 | 1,514 | 1,516 |
| Total NGL | 10,724 | 11,522 | 11,428 |
- In FY2007 we began reporting LPG and Ethane Natural Gas Liquids (NGL), consistent with petroleum industry practice. Product-specific conversions are made and NGL are reported in barrels of oil equivalent. The 2006 comparatives have been restated.
- Total barrels of oil equivalent (boe) conversions based on the following: 6,000 scf of natural gas equals 1 boe.
- Average production costs include direct and indirect production costs relating to the production and transportation of hydrocarbons to the point of sale. This includes shipping where applicable. Average production costs have been shown excluding resource tax and including and excluding other indirect taxes and duties, and including the foreign exchange effect of translating local currency denominated costs and indirect taxes into US dollar.
2.3.2 Minerals
| BHP Billiton Group share of production Year ended 30 June | ||||
|---|---|---|---|---|
| By CSG by mineral | BHP Billiton interest % | 2008 | 2007 | 2006 |
| Aluminium | ||||
| Alumina Production (’000 tonnes) | ||||
| Worsley, Australia | 86 | 3,035 | 2,956 | 2,763 |
| Alumar, Brazil | 36 | 536 | 526 | 503 |
| Paranam, Suriname | 45 | 983 | 978 | 921 |
| Total alumina | 4,554 | 4,460 | 4,187 | |
| Aluminium Production (’000 tonnes) | ||||
| Hillside, RSA | 100 | 695 | 704 | 700 |
| Bayside, RSA | 100 | 168 | 194 | 179 |
| Mozal, Mozambique | 47.1 | 257 | 265 | 262 |
| Alumar, Brazil | 40 | 178 | 177 | 178 |
| Valesul, Brazil (1) | - | - | - | 43 |
| Total aluminium | 1,298 | 1,340 | 1,362 | |
| Base Metals (2) | ||||
| Copper | ||||
| Payable metal in concentrate (’000 tonnes) | ||||
| Escondida, Chile | 57.5 | 679.5 | 638.9 | 671.0 |
| Antamina, Peru | 33.75 | 111.7 | 113.7 | 124.2 |
| Pinto Valley, US | 100 | 26.8 | - | - |
| Tintaya, Peru (3) | - | - | - | 64.5 |
| Total copper concentrate | 818 | 752.6 | 859.7 | |
| Cathode (’000 tonnes) | ||||
| Escondida, Chile | 57.5 | 131.6 | 126.1 | 66.7 |
| Cerro Colorado, Chile (4) | 100 | 106.4 | 105.8 | 94.1 |
| Pinto Valley, US | 100 | 6.9 | 7.6 | 8.2 |
| Olympic Dam, Australia | 100 | 169.9 | 182.5 | 204.3 |
| Spence, Chile (5) | 100 | 142.7 | 75.5 | - |
| Tintaya, Peru (3) | - | - | - | 34.8 |
| Total copper cathode | 557.5 | 497.5 | 408.1 | |
| Total copper | 1,375.5 | 1,250.1 | 1,267.8 | |
| Uranium oxide | ||||
| Payable metal in concentrate (tonnes) | ||||
| Olympic Dam, Australia | 100 | 4,144 | 3,486 | 3,936 |
| Total uranium oxide | 4,144 | 3,486 | 3,936 | |
| Zinc | ||||
| Payable metal in concentrate (’000 tonnes) | ||||
| Antamina, Peru | 33.75 | 83.5 | 73.0 | 40.3 |
| Cannington, Australia | 100 | 61.0 | 45.7 | 68.8 |
| Total zinc | 144.5 | 118.7 | 109.1 | |
| Silver | ||||
| Payable metal in concentrate (’000 ounces) | ||||
| Escondida, Chile | 57.5 | 3,604 | 3,514 | 3,379 |
| Olympic Dam, Australia (refined silver) | 100 | 780 | 814 | 884 |
| Antamina, Peru | 33.75 | 3,505 | 3,132 | 3,174 |
| Cannington, Australia | 100 | 35,485 | 29,105 | 38,447 |
| Pinto Valley, US (6) | 100 | 113 | - | - |
| Tintaya, Peru (3) | - | - | - | 592 |
| Total silver | 43,487 | 36,565 | 46,476 | |
| Lead | ||||
| Payable metal in concentrate (’000 tonnes) | ||||
| Antamina, Peru | 33.75 | 1.6 | 1.5 | - |
| Cannington, Australia | 100 | 251.5 | 210.8 | 266.3 |
| Total lead | 253.1 | 212.3 | 266.3 | |
| Gold | ||||
| Payable metal in concentrate (’000 ounces) | ||||
| Escondida, Chile | 57.5 | 79.7 | 84.4 | 79.8 |
| Olympic Dam, Australia (refined gold) | 100 | 80.5 | 91.7 | 107.5 |
| Pinto Valley, US | 100 | 1.7 | - | |
| Tintaya, Peru (3) | - | - | 29.2 | |
| Total gold | 161.9 | 176.1 | 216.5 | |
| Molybdenum | ||||
| Payable metal in concentrate (tonnes) | ||||
| Antamina, Peru | 33.75 | 2,542 | 2,268 | 2,515 |
| Total molybdenum | 2,542 | 2,268 | 2,515 | |
| Diamonds and Specialty Products | ||||
| Production (’000 carats) | ||||
| EKATI, Canada | 80 | 3,349 | 3,224 | 2,561 |
| Total diamonds | 3,349 | 3,224 | 2,561 | |
| Titanium minerals (7)(8) | ||||
| Titanium slag (8) | ||||
| Production (’000 tonnes) | ||||
| Richards Bay Minerals, RSA | 50 | 480 | 465 | 435 |
| Rutile (8) | ||||
| Production (’000 tonnes) | ||||
| Richards Bay Minerals, RSA | 50 | 43 | 35 | 36 |
| Zircon (8) | ||||
| Production (’000 tonnes) | ||||
| Richards Bay Minerals, RSA | 50 | 120 | 120 | 118 |
| Phosphates | ||||
| Production (’000 tonnes) | ||||
| Southern Cross Fertiliser (formerly Queensland Fertilizer) (7)(9)(10) | 100 | - | 84.3 | 861.3 |
| Total phosphates | - | 84.3 | 861.3 | |
| Stainless Steel Materials | ||||
| Nickel | ||||
| Production (’000 tonnes) | ||||
| Cerro Matoso, Colombia | 99.94 | 41.8 | 51 | 51.5 |
| Nickel West, Australia | 100 | 98.1 | 104.1 | 101.4 |
| Yabulu, Australia | 100 | 28.0 | 32.1 | 23.3 |
| Total nickel | 167.9 | 187.2 | 176.2 | |
| Cobalt | ||||
| Production (’000 tonnes) | ||||
| Yabulu, Australia | 100 | 1.7 | 1.7 | 1.0 |
| Iron ore (11) | ||||
| Production (’000 tonnes) | ||||
| Mt Newman, Australia | 85 | 30,330 | 29,306 | 24,774 |
| Jimblebar, Australia (12) | 85 | 5,119 | 5,457 | 6,370 |
| Mt Goldsworthy, Australia | 85 | 941 | 1,227 | 6,241 |
| Mt Goldsworthy, Area C joint venture, Australia (13)(14) | 85 | 27,130 | 20,086 | 17,988 |
| Yandi, Australia (15) | 85 | 40,276 | 35,548 | 34,196 |
| Samarco, Brazil | 50 | 8,464 | 7,800 | 7,503 |
| Total iron ore | 112,260 | 99,424 | 97,072 | |
| Manganese | ||||
| Manganese ores | ||||
| Saleable production (’000 tonnes) | ||||
| Hotazel, South Africa (16) | 60 | 3,040 | 2,570 | 2,300 |
| GEMCO, Australia (16) | 60 | 3,535 | 3,439 | 2,980 |
| Total manganese ores | 6,575 | 6,009 | 5,280 | |
| Manganese alloys | ||||
| Saleable production (’000 tonnes) | ||||
| South Africa (16)(17)(18) | 60 | 513 | 493 | 434 |
| Australia (16) | 60 | 262 | 239 | 218 |
| Total manganese alloys | 775 | 732 | 652 | |
| Metallurgical coal (19) | ||||
| Production (’000 tonnes) | ||||
| Goonyella | 6,036 | 7,352 | 7,267 | |
| Peak Downs | 4,094 | 4,484 | 4,389 | |
| Saraji | 2,896 | 3,397 | 2,634 | |
| Norwich Park | 2,026 | 2,850 | 2,662 | |
| Blackwater | 5,632 | 6,138 | 6,018 | |
| Gregory Joint Venture | 2,110 | 2,462 | 2,610 | |
| Total BMA, Australia | 50 | 22,794 | 26,683 | 25,580 |
| Riverside | - | - | ||
| South Walker Creek | 2,862 | 3,422 | 3,049 | |
| Poitrel | 2,270 | 1,438 | - | |
| Total BHP Mitsui Coal, Australia (20) | 80 | 5,132 | 4,860 | 3,049 |
| Illawarra, Australia | 100 | 7,265 | 6,886 | 7,014 |
| Total metallurgical coal | 35,193 | 38,429 | 35,643 | |
| Energy Coal | ||||
| Production (’000 tonnes) | ||||
| Navajo | 100 | 7,533 | 8,174 | 8,266 |
| San Juan | 100 | 6,119 | 6,906 | 7,080 |
| New Mexico, US | 100 | 13,652 | 15,080 | 15,346 |
| Optimum | 100 | 11,302 | 11,304 | 11,805 |
| Middelburg | 84 | 12,113 | 13,513 | 13,705 |
| Douglas | 84 | 4,890 | 5,218 | 5,123 |
| Koornfontein | - | - | 4,858 | 4,809 |
| Khutala | 100 | 13,327 | 13,526 | 13,625 |
| Klipspruit | 100 | 3,440 | 3,223 | 2,632 |
| Zululand Anthracite Collieries | - | - | - | 249 |
| Total BECSA (21) | 100 | 45,072 | 51,642 | 51,948 |
| Mt Arthur Coal, Australia | 100 | 11,776 | 10,897 | 9,146 |
| Cerrejón Coal Company, Colombia | 33.3 | 10,368 | 9,406 | 9,316 |
| Total energy coal | 80,868 | 87,025 | 85,756 | |
- We completed the sale of Valesul in August 2006 with a 1 July 2006 effective date.
- Metal production is reported on the basis of payable metal.
- BHP Billiton sold Tintaya effective from 1 June 2006.
- Production at Cerro Colorado was temporarily suspended on 14 June 2005 following an earthquake. Production commenced at half capacity on 30 June 2005 and ramped up to pre-earthquake levels in February 2006.
- Spence operations were commissioned during the December 2006 quarter
- Pinto Valley resumed concentrate operations during the December 2007 quarter.
- Amounts represent production for the preceding year ended 31 December.
- Data was sourced from the TZ Minerals International Pty Ltd Mineral Sands Annual Review 2008.
- We sold Southern Cross Fertiliser (formerly Queensland Fertilizer) in 2006.
- Includes di-ammonium phosphate and mono-ammonium phosphate.
- Iron ore production is reported on a wet tonnes basis with the exception of Samarco.
- The Jimblebar reserves listed include the Wheelarra Hill 3,4,5,6 and Hashimoto 1 and 2 deposits at Jimblebar, in which the Wheelarra joint venture participants (BHP Iron Ore (Jimblebar) (51%), ITOCHU Minerals and Energy (4.8%), Mitsui Iron Ore (4.2%) and subsidiaries from Chinese steelmakers Magang, Shagang, Tanggang and Wugang (10% each)) have a legal interest. At the commencement of the Wheelarra joint venture on 1 October 2005, the Wheelarra joint venture participants had a legal interest in 175 million dry metric tonnes of Jimblebar reserves (Wheelarra joint venture tonnes). The effect of the sales contracts entered into between the Wheelarra joint venture participants and the Mt Newman joint venture participants and other associated agreements is that BHP Billiton (as a Mt Newman joint venture participant) has an entitlement to 85% of these Wheelarra joint venture tonnes. This disclosure and the financial statements are prepared on this basis.
- The Mt Goldsworthy Area C reserves listed include C deposit within Area C in which the POSMAC joint venture participants (BHP Billiton Minerals Pty Ltd (65%), ITOCHU Minerals and Energy of Australia Pty Ltd (8%), Mitsui Iron Ore Corporation Pty Ltd (7%) and a subsidiary of POSCO (a Korean steelmaker) (20%)) have a legal interest. The effect of the sales contracts entered into between the POSMAC joint venture participants and the Mt Goldsworthy joint venture participants and other associated agreements is that BHP Billiton (as a Mt Goldsworthy joint venture participant) has an entitlement to 85% of the reserves in C deposit . This disclosure and the financial statements are prepared on this basis.
- Production statistics relate to pellet production and concentrate and screens product.
- The Yandi reserves listed include the Western 4 deposit in which the JFE Western 4 Joint Venture (JW4 JV) participants (BHP Billiton Minerals Pty Ltd (65%), ITOCHU Minerals and Energy of Australia Pty Ltd (8%), Mitsui Iron Ore Corporation Pty Ltd (7%) and a subsidiary of JFE Steel Corporation (a Japanese steelmaker) (20%)) have a legal interest. The effect of the sales contracts entered into between the JW4 joint venture participants and the Yandi joint venture participants and other associated agreements is that BHP Billiton (as a Yandi joint venture participant) has an entitlement to 85% of the reserves in the Western 4 deposit. This disclosure and the financial statements are prepared on this basis.
- Shown on 100% basis. BHP Billiton interest in saleable production is 60%.
- We purchased Mitsui’s 50 % shareholding in Advalloy (Pty) Ltd, making Samancor Manganese the 100% owner of Advalloy in July 2006. Following this change in ownership, we report the MCFeMn production of Advalloy in the above table for FY2007. Prior to us holding 100% of Advalloy, we reported FeMn production transferred to Advalloy. If prior year production was restated to reflect the same basis, total manganese alloys production would have shown 632,000 tonnes in 2006.
- Production includes Medium Carbon Ferro Manganese.
- Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.
- Shown on 100% basis. BHP Billiton interest in saleable production is 80%.
- Including 11.3 million tonnes of production from our South African Optimum operation (3.96 million tonnes export and 7.3 million tonnes domestic.) Earnings on these tonnes will be excluded as the entitlement to those earnings vested with the intended purchaser effective from 1 July 2007.