21 January
MELBOURNE,
Press Release

BHP Billiton delivered a robust production performance in the first half of the 2009 financial year.
This result was achieved within a challenging environment that resulted in prudent decisions being made regarding production adjustments as well as maintenance being brought forward.

Production adjustments announced by BHP Billiton to date have been limited to Samarco (Brazil) and the Samancor manganese operations. In Western Australia Iron Ore and our metallurgical coal operations, we have received requests for deferrals from some long term contract customers.

However, this has not impacted iron ore or metallurgical coal production in the first half of the 2009 financial year. Whilst we sold the deferred long term iron ore tonnages into the spot market, we will likely have to opportunistically adjust our metallurgical coal production in line with the weaker demand, during the second half of the 2009 financial year.

In addition, BHP Billiton separately announced today that it will indefinitely suspend operations at Ravensthorpe Nickel Operation (Australia). Consequently, Yabulu (Australia) will also stop the processing of the mixed nickel cobalt hydroxide product.

The global economic environment deteriorated sharply in the last quarter of the 2008 calendar year and we expect the market to remain weak and uncertain. However, we do expect the longer term fundamentals to remain healthy for our commodities.

BHP Billiton CEO, Marius Kloppers, said the company’s performance and market position meant that it was strongly placed for both the current market conditions and the longer term market recovery.

“Given the very challenging environment the whole industry has faced over the past few months, our production performance was particularly strong. We have also been quick to take appropriate action to respond to market conditions, such as the previously announced production adjustments and project withdrawals, and we will continue to do so if required.

“Our strong balance sheet and uniquely diversified portfolio of high quality and low cost assets place us in a competitive position in these market conditions and we expect to take full advantage of the recovery when it occurs. We continue to invest in growth, but with a highly disciplined and value-focused approach. We also remain alert to potential value accretive acquisition opportunities that may arise in the current market,” he said.

Alumina – Production improved following the scheduled maintenance at Alumar (Brazil) and Worsley (Australia) during the September 2008 quarter.

Aluminium – The Southern African smelters continued to operate at reduced levels to comply with the mandatory reduction in power consumption. The December 2008 half year included the complete shutdown of the B and C potlines at Bayside (South Africa).