Production Report of BHP Billiton

BHP BILLITON PRODUCTION REPORT FOR THE YEAR ENDED 30 JUNE 2010

22.07.2010 | Deskman: Frank Jablonski

Nickel – Nickel West achieved record production for the year ended June 2010 following the major furnace rebuild at the Nickel West Kalgoorlie (Australia) smelter in the prior year. The subsequent drawdown of accumulated concentrate stocks is largely complete. Production in the June 2010 quarter was impacted by disruptions to hydrogen supply at the Nickel West Kwinana (Australia) refinery and an unplanned outage at Nickel West Kalgoorlie. During the second half of the 2011 financial year, Cerro Matoso (Colombia) production will be impacted for nine months due to the planned replacement of one of its two furnaces.

Iron Ore – Record production was achieved for the year ended June 2010. Current quarter production was impacted by tie-in activities at Western Australia Iron Ore as Rapid Growth Project 4 continues to ramp up. Following demand related production adjustments, Samarco returned to full production during the year ended June 2010, delivering a record result for the operation. For the 2010 financial year, 39 per cent of Western Australia Iron Ore shipments on a wet metric tonne basis were priced on annually agreed terms, with the remainder sold on a shorter term basis. During the second half of the financial year, the old benchmark pricing system was substantially replaced by shorter term market based, landed pricing. The companies expectation is that future Western Australia Iron Ore shipments will be priced on this basis.

Manganese Ore – Production was higher than all corresponding periods despite weather related impacts in Australia and South Africa during the June 2010 quarter. Mamatwan mine (South Africa) achieved record production during the quarter. For the year, production was significantly higher and reflected improved market demand.

Metallurgical Coal – Production was higher due to improved operational and supply chain performance, supported by strong demand. The March 2010 quarter was impacted by wet weather disruptions at Queensland Coal and planned longwall moves at Illawarra (both Australia). Despite this, Queensland Coal achieved record annual and quarterly shipments. Hay Point Coal Terminal (Australia) is currently undergoing planned maintenance on Berth 2, which is scheduled for completion in August 2010. As with iron ore, the old benchmark system was substantially replaced by shorter term market based pricing. For the year ended June 2010, 34 per cent of metallurgical coal shipments were priced on a shorter term basis. The majority of product sold in the June 2010 quarter was priced in this manner.