news release

BHP BILLITON PRODUCTION REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2012

·      Western Australia Iron Ore achieved record production for the nine months ended March 2012, a 22% increase on the prior corresponding period.

·      The Onshore US petroleum business delivered a 35% increase in liquids production compared to the December 2011 quarter.

·      Escondida (Chile) production increased by 9% from the December 2011 quarter, benefiting from higher ore grades.

·      Production records for the nine months and quarter ended March 2012 were achieved at two of BHP Billiton's high value, export orientated energy coal operations, New South Wales Energy Coal (Australia) and Cerrejon Coal (Colombia).

·      Queensland Coal (Australia) production remained constrained as a result of industrial action and heavy rainfall.

Petroleum

Total petroleum production - Total production increased for the nine months ended March 2012 as our recently acquired Onshore US business reported strong growth. Guidance for the 2012 financial year of 225 million barrels of oil equivalent (MMboe) remains unchanged.

Crude oil, condensate and natural gas liquids - Lower production for the nine months ended March 2012 reflected expiration of the Ohanet (Algeria) Risk Sharing Contract, maintenance and drilling delays at non-operated facilities, weather related downtime in Western Australia and natural field decline, especially at Pyrenees (Australia). Mad Dog (USA) was offline for the entire quarter and is forecast by the operator to recommence production during the June 2012 quarter. Atlantis (USA) was shut-in during April 2012 for an extended period of scheduled maintenance and will be offline until the September 2012 quarter.

Notably, the Onshore US business delivered a 35 per cent increase in liquids production compared to the December 2011 quarter. These liquids contributed 3.5 MMboe of Onshore US production in the March 2012 quarter consistent with our shift in focus towards the high return Eagle Ford shale. We continue to adjust our Onshore US development plans in response to lower US gas prices and expect activity in the liquids rich Eagle Ford shale and Permian Basin to represent the significant majority of Onshore US operating activity by the end of the 2012 calendar year.

Natural gas- Strong performance from the Onshore US and Angostura (Trinidad and Tobago) businesses contributed to higher natural gas production for the nine months ended March 2012.

Aluminium

Alumina - Production in the March 2012 quarter was higher than all comparable periods as the Alumar refinery (Brazil) continued to deliver into expanded capacity and output at Worsley (Australia) recovered following a planned calciner outage in the December 2011 quarter.

Aluminium - Production decreased during the March 2012 quarter as a major unplanned outage at Hillside (South Africa) led to the temporary curtailment of potline capacity. Operations are expected to progressively return to full technical capacity over the next year.

Base Metals

Copper - Consistent with the mine plan, Escondida production increased by nine per cent from the December 2011 quarter, benefiting from higher ore grades. This was offset by unfavourable weather conditions and lower recoveries at Pampa Norte (Chile) and planned maintenance at Olympic Dam (Australia). Recent investment in the mining fleets at Antamina (Peru) and Pampa Norte contributed to material mined records for both assets for the nine months ended March 2012. In addition, Antamina achieved a milling record for the same period following successful commissioning of the expansion project.

Escondida production guidance remains unchanged for the 2012 financial year. Production is expected to improve as mining activities progress towards higher grade ore with completion of the Escondida Ore Access project in the main pit.

Lead/silver- Production at Cannington (Australia) decreased in the March 2012 quarter reflecting lower average ore grades and mill throughput.

Zinc - An improvement in Antamina ore grades and the successful commissioning of the expansion project led to a five per cent increase in total zinc production in the March 2012 quarter.

Uranium - Production was largely unchanged in the March 2012 quarter.

Diamonds & Specialty Products

Diamonds - As anticipated, production was lower than all comparable periods. EKATI (Canada) production is expected to remain constrained in the medium term as the operations extract lower grade material, consistent with the mine plan.

BHP Billiton announced a review of its diamonds business during the December 2011 quarter and this process is ongoing. During the March 2012 quarter, BHP Billiton announced that it had exercised an option to sell its 37 per cent non-operated interest in Richards Bay Minerals (South Africa) to Rio Tinto.

Stainless Steel Materials

Nickel - Production was higher than all comparable periods reflecting improved smelter and refinery performance at Nickel West (Australia) and strong operating performance at Cerro Matoso (Colombia) following the successful replacement of the Line 1 furnace in September 2011.

During the March 2012 quarter the Nickel West Kwinana hydrogen plant was successfully commissioned and will enable the refinery to operate at full capacity in future periods.

In response to persistent weakness in nickel prices and the continued strength of the Australian dollar, BHP Billiton announced a reduction in functional support staff and a temporary reduction in mining activity at Nickel West Mt Keith during the March 2012 quarter. Production of nickel concentrate at Mt Keith will be maintained in the short term as commissioning of the Talc Redesign Project has enabled stockpiled talc-bearing ore to be processed.

Iron Ore

Iron ore - Western Australia Iron Ore (WAIO) achieved record production for the nine months ended March 2012 despite a decline in volumes in the March 2012 quarter as a result of cyclone activity. Consistently strong operating performance, combined with the continued ramp up of Ore Handling Plant 3 at Yandi, dual tracking of the company's rail infrastructure and additional ship loading capacity at Port Hedland, contributed to the record result.

Full year WAIO production guidance remains unchanged as scheduled maintenance and tie-in activities are expected to constrain performance in the June 2012 quarter.

Manganese

Manganese ore - Production and sales in the March 2012 quarter were higher following the recovery from weather related downtime at GEMCO (Australia) and planned maintenance at Hotazel (South Africa). Record production and sales for the nine months ended March 2012 were achieved at both GEMCO and Hotazel.

Manganese alloy - In response to challenging conditions in the downstream manganese alloy industry, BHP Billiton announced the temporary suspension of production at TEMCO (Australia) and the cessation of production of energy intensive silica manganese at the Metalloys plant (South Africa) during the March 2012 quarter.

Metallurgical Coal

Metallurgical coal - Queensland Coal production remained constrained in the March 2012 quarter as a result of industrial action and heavy rainfall. The extent to which industrial action will continue to affect production, sales and unit costs is difficult to predict, however with inventories now severely depleted, the impact on future quarters may be significant. Force majeure was declared across all BMA sites in April 2012 and remains in place.

A planned longwall move and plant shutdown at Dendrobium led to lower production at Illawarra Coal (Australia) in the March 2012 quarter. A longwall move at Appin is scheduled for the June 2012 quarter.

Energy Coal

Energy coal- Production records for the nine months and quarter ended March 2012 were achieved at two of BHP Billiton's high value, export orientated energy coal operations, New South Wales Energy Coal and Cerrejon Coal. Export volumes for New South Wales Energy Coal were adversely affected by vessel delays at the Port of Newcastle in the March 2012 quarter. Preparation for the resumption of mining activity at San Juan Coal (USA) has commenced, with a full restart expected in the June 2012 quarter.  

Throughout this report, unless otherwise stated, production volumes refer to BHP Billiton's share and exclude suspended and sold operations.

This report, together with the Exploration and Development Report, represents the Interim Management Statement for the purposes of the UK Listing Authority's Disclosure and Transparency Rules. There have been no significant changes in the financial position of the Group in the quarter ended 31 March 2012.

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

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

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) Includes Cerro Colorado and Spence.

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

(e) Newman includes Mt Newman Joint Venture and Jimblebar

(f) Shown on 100% basis.  BHP Billiton interest in saleable production is 60%.

(g) Production includes Medium Carbon Ferro Manganese.

(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%.

(a) Other Australia includes Minerva.

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

(c) The Genghis Khan operation is reported in Shenzi.

(d) Fayetteville shale acquisition completed on 31 March 2011. Petrohawk Energy Corporation acquisition completed on 20 August 2011. Onshore US volumes are net of mineral holder royalties.

(e) Other Americas includes Neptune, West Cameron 76, Genesis and Starlifter.

(f) Algeria includes ROD and Ohanet. The Ohanet Risk Sharing Contract expired in October 2011.

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