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22 April
MELBOURNE,
Press Release
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- Solid operational performance reflecting proactive and prudent management in the face of weak demand. Against a backdrop of weak demand, BHP Billiton achieved sound operational results, albeit with lower production compared to the December 2008 quarter. This quarter’s production reflects management proactive and decisive actions in response to the challenging market conditions. These actions include previously announced production curtailments in Samarco, Samancor Manganese and across our metallurgical coal operations. In the medium term, we expect that market conditions will remain uncertain. Consistent with the way we have managed our business to date, all our operations will remain under review. We will continue to take appropriate actions in any business that is cash negative and set to remain so, or where there is lack of demand. Our track record in taking difficult but prudent decisions has ensured that we have an exceptional portfolio of low cost and long life assets. This means that our margins are among the best in the sector. With our low financial and operational leverage and a strong balance sheet we are in a unique position to continue to invest in future growth and deliver long term value to our shareholders. We are also well placed to take advantage of opportunities in the market, but with our usual disciplined approach. Alumina – Production declined across all comparative periods mainly due to calciner outages at Worsley Aluminium – Production for the nine months was only seven per cent lower than the comparative period, despite a 10 per cent mandatory reduction in power consumption across the Southern African operations. | |||