Production Report of BHP Billiton

BHP BILLITON PRODUCTION REPORT FOR THE YEAR ENDED 30 JUNE 2010

22.07.2010 | Deskman: Frank Jablonski

Energy Coal – Production was in line with the previous year with the continued ramp up of the Klipspruit (South Africa) expansion and record production at Hunter Valley Energy Coal offsetting lower customer demand at New Mexico Coal (USA). Cerrejon Coal achieved a production record during the June 2010 quarter however this was offset by weather related disruptions and a strike by the rail services provider in South Africa, and plant upgrade activities related to the MAC20 project at Hunter Valley Energy Coal.

The Newcastle Third Port Project (energy coal) was completed in June 2010, ahead of schedule and budget. This project will not be reported in future Exploration and Development reports.

During the year ended 30 June 2010 a further three projects achieved first production and two projects were sanctioned for development. The three commissioned projects were Western Australia Iron Ore Rapid Growth Project 4 (iron ore), Klipspruit Expansion (energy coal) and Pyrenees (oil and gas). The sanctioned projects were MAC20 Project (energy coal) and Antamina Expansion (copper). In addition, US$2.4 billion of pre-commitment expenditure was approved to accelerate development of Western Australia Iron Ore Rapid Growth Project 6 (iron ore), Caval Ridge and Hay Point Coal Terminal Stage 3 Expansion (both metallurgical coal) and the first stages of the Jansen Potash Project (potash).

Minerals Exploration - Grassroots exploration continued on copper targets in Chile and Zambia; nickel targets in Australia; manganese targets in Gabon; and diamond targets in Canada. Exploration for iron ore, coal, bauxite, potash and manganese was undertaken in a number of regions including Australia, Canada, South America, Russia and Africa. During the quarter, BHP Billiton confirmed the strength of its position in the Saskatchewan potash basin in Canada with the reporting of an in-situ Mineral Resource1 of 3,370 million tonnes @ 25.4% K2O at its wholly-owned Jansen Potash Project. In addition, the Indonesian Coal Project (ICP) joint venture was formed following Government approvals. PT Adaro Energy TBK has acquired a 25 per cent interest in the ICP joint venture, with BHP Billiton holding the remaining 75 per cent. For the year ended 30 June 2010, BHP Billiton spent US$516 million on minerals exploration, of which US$467 million was expensed. This includes US$73 million of exploration spend for potash in Saskatchewan, Canada.