Bhp Billiton Regulatory News (BLT)

BHP BILLITON PRODUCTION REPORT FOR THE YEAR ENDED 30 JUNE 2012

·      Robust operating performance in a challenging environment with annual production records achieved across ten operations.

·      Twelfth consecutive annual production record in iron ore as Western Australia Iron Ore shipments rose to an annualised rate of 179 million tonnes in the June 2012 quarter (100% basis).

·      Record annual metallurgical coal production achieved at Illawarra Coal. Queensland Coal production remained constrained as a result of industrial action and heavy rainfall.

·      The successful integration and further development of our Onshore US shale liquids and gas assets contributed to a 40% increase in petroleum production in the 2012 financial year.

·      An 11% increase in copper production in the June 2012 quarter established strong momentum in our Base Metals business.

Petroleum

Total petroleum production- The successful integration and further development of our Onshore US shale liquids and gas assets contributed to a 40 per cent increase in petroleum production in the 2012 financial year.

Crude oil, condensate and natural gas liquids- Lower liquids production for the 2012 financial year reflected downtime at our non-operated facilities in the Gulf of Mexico (USA) and natural field decline, particularly at Pyrenees (Australia). Mad Dog (USA) was offline for the full financial year while Atlantis (USA) was shut-in for an extended period of scheduled maintenance during the June 2012 quarter. Weather related downtime in the Gulf of Mexico also contributed to lower production in the period.

Onshore US liquids production increased by 10 per cent to 3.8 million barrels in the June 2012 quarter. Over 80 per cent of our Onshore US drilling activity was focused on the liquids rich Eagle Ford shale and Permian Basin at the end of the period.

Our conventional business will benefit from the recommencement of production at Mad Dog and Atlantis in the September 2012 quarter.

Natural gas - Strong performance at Angostura (Trinidad and Tobago) and the successful integration of our Onshore US business led to higher natural gas production in the 2012 financial year.

Aluminium

Alumina - Record annual production at the Alumar refinery (Brazil) contributed to a four per cent increase in total alumina production in the 2012 financial year. Production at Worsley (Australia) is expected to increase during the 2013 financial year as the Efficiency & Growth project ramps up towards full capacity.

Aluminium - Production was lower than all comparable periods as potline capacity at Hillside (South Africa) remained curtailed following a major unplanned outage in the March 2012 quarter. Operations are expected to progressively return to full technical capacity during the 2013 financial year.

Despite our competitive position on the cost curve, our integrated Aluminium business continues to be challenged by weaker prices and underlying cost pressure.

Base Metals

Copper - An 11 per cent increase in copper production in the June 2012 quarter established strong momentum in our Base Metals business. At Escondida (Chile), production increased by 22 per cent as mining activities progressed towards higher grade ore, consistent with the mine plan. This strong performance was also supported by quarterly and annual material mined, mill throughput and copper production records at Antamina (Peru) following the successful commissioning of the expansion project.

Escondida copper production is forecast to increase by approximately 20 per cent in the 2013 financial year. Successful completion of both the Escondida Ore Access and Laguna Seca debottlenecking projects will facilitate a rise in Escondida copper production to over 1.3 million tonnes (100 per cent basis) in the 2015 financial year.

At 30 June 2012 the Group had 278,547 tonnes of outstanding copper sales that were revalued at a weighted average price of US$3.49 per pound. The final price of these sales will be determined in the 2013 financial year. In addition, 239,156 tonnes of copper sales from the 2011 financial year were subject to a finalisation adjustment in 2012. This finalisation adjustment and the provisional pricing impact as at 30 June 2012 will decrease earnings before interest and tax by US$265 million in the 2012 financial year (2011 financial year: US$650 million gain).

Lead/silver - Production for the 2012 financial year was in line with the prior period.

Zinc - Production at Antamina declined during the 2012 financial year as mining progressed through a copper-rich ore zone.

Uranium - Production for the 2012 financial year was broadly in line with the prior period.

Diamonds & Specialty Products

Diamonds - Production was lower than all comparable periods, as expected. EKATI (Canada) production is forecast 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. The sale of BHP Billiton's 37 per cent non-operated interest in Richards Bay Minerals (South Africa) to Rio Tinto is progressing and remains subject to final regulatory approvals.

Stainless Steel Materials

Nickel - The successful replacement of the Line 1 furnace at Cerro Matoso (Colombia) in the September 2011 quarter led to a modest increase in annual nickel production.

The Nickel West Mt Keith Talc Redesign Project and Kwinana hydrogen plant (Australia) were both commissioned in the 2012 financial year. However, despite improved refinery performance, a strong Australian dollar and weak nickel price continued to place pressure on Nickel West operating margins.

Iron Ore

Iron ore - BHP Billiton's commitment to invest throughout the economic cycle delivered a twelfth consecutive annual production record in iron ore. Western Australia Iron Ore (WAIO) shipments rose to a record annualised rate of 179 million tonnes in the June 2012 quarter (100 per cent basis). Consistently strong operating performance, the 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. WAIO production in the 2013 financial year is forecast to increase by approximately five per cent from the 2012 financial year.

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

Manganese

Manganese ore - Consistently strong operating performance and improved plant availability at both GEMCO (Australia) and Hotazel (South Africa) underpinned annual production and sales records in the 2012 financial year.

Manganese alloy - The termination of energy intensive silica manganese production at Metalloys (South Africa) and the temporary suspension of production at TEMCO (Australia) resulted in substantially lower alloy production in the 2012 financial year. TEMCO is expected to return to full capacity towards the end of the September 2012 quarter.

Metallurgical Coal

Metallurgical coal- A modest increase in metallurgical coal production was achieved in the 2012 financial year despite numerous operating challenges. Record annual production at Illawarra Coal (Australia) followed successful commissioning of the West Cliff Coal Preparation Plant upgrade project. A longwall move at the Appin mine is expected to have a minor impact on production in the September 2012 quarter.

Queensland Coal (Australia) production remained constrained during the June 2012 quarter largely as a result of industrial action. This disruption to production and sales has led to significant margin compression for our leading Queensland Coal business. BHP Billiton also announced the indefinite closure of the Norwich Park mine (Australia) during the June 2012 quarter following a review of the mine's profitability.

In July 2012, force majeure was lifted across all BMA sites. In addition, BMA and the unions reached a framework agreement that should guide the finalisation of the BMA Enterprise Agreement. Further work is underway to finalise local mine site details.

Energy Coal

Energy coal - Volumes were higher than all comparable periods with annual and quarterly production records achieved at two of BHP Billiton's export orientated operations, Cerrejon Coal (Colombia) and New South Wales Energy Coal (Australia). Longwall mining activity resumed at San Juan Coal (USA) during the June 2012 quarter.

The RX1 Project at New South Wales Energy Coal delivered first production during the June 2012 quarter, significantly ahead of schedule. This project capitalises on strong demand for high ash coal in our key growth markets.

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

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

(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%, except Hotazel Manganese Mines which is 44.4%.

(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. West Cameron 76 and Starlifter were divested in May 2012.

(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.