Extension to Copper Cutbacks
BHP Billiton Limited
04 December 2002
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
4 December 2002
Number: 59/02
BHP BILLITON ANNOUNCES EXTENSION TO COPPER CUTBACKS
BHP Billiton Base Metals today announced it would continue its program of
demand-based production originally announced by the Group in November 2001.
During calendar year 2003, BHP Billiton will target an annualized production
rate of 1.05 million metric tonnes of copper at its Escondida mine (150 000
tonnes of cathode and 900 000 tonnes of copper contained in concentrate), and 34
000 tonnes of cathode at its Tintaya mine. The company will continue to maintain
its Pinto Valley and Robinson mines in the Southwest United States on standby
status. As a consequence, BHP Billiton will produce 390 000 tonnes of copper
(305 000 tonnes BHP Billiton share) below installed capacity in calendar year
2003 on an annualized basis. Production from the Company's other copper mines
will not be affected at this time.
Brad Mills, President BHP Billiton Base Metals said, 'Due to continuing weakness
in demand in the US and Europe, BHP Billiton will continue with its 'production
to demand' program. With copper inventories of nearly 1.4 million tonnes of
metal in LME/Comex/Shanghai warehouses, we believe it is prudent for us to
operate at less than our full capacity at this time.'
The constrained production program will include:
• An annualized reduction of 200 000 tonnes (115 000 tonnes BHP Billiton
share) to installed capacity at the Escondida mine in Chile. Following the
completion of the Phase IV expansion in October, installed design capacity
has increased to a total of 1.25 million tonnes per annum of copper
contained in concentrate and cathode. During calendar year 2003, the
Escondida mine will operate at an annual rate of 1.05 million tonnes of
copper contained in concentrate and cathode. The reduced production will be
achieved through a combination of lower grade ore processing and maintenance
shutdowns at the older Los Colorados mill and concentrator facility.
Escondida is scheduled to produce approximately 760 000 tonnes of copper in
concentrate and cathode in calendar year 2002.
• An annualized reduction of 90 000 tonnes to capacity at the Tintaya mine
in Peru. BHP Billiton will maintain its Tintaya copper sulphide operations
on standby at least through the first half of 2003. The Tintaya Oxide
operation will continue to operate at its installed designed capacity of 34
000 tonnes of copper cathode per year. Tintaya did not produce any copper in
concentrate during calendar year 2002.
• BHP Billiton's Pinto Valley and Robinson operations in the Southwest
United States will remain on standby through the end of calendar year 2003.
These operations represent 100 000 tonnes of idled copper capacity. Pinto
Valley and Robinson did not produce any copper in concentrate in calendar
year 2002. As in 2002, the Pinto Valley operation is scheduled to produce 10
000 tonnes of copper cathode in 2003 from its SX-EW operations.
BHP Billiton will review the market demand for copper in six months time and
reassess our production targets at that time.
Further information can be found on our Internet site:http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media Relations
Tel: +61 3 9609 3952 Mobile: +61 408 313 259 Tel: +44 20 7747 3956
email: Andrew.W.Nairn@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Tracey Whitehead, Media Relations South Africa
Tel: +61 3 9609 4202 Mobile: +61 419 404 978 Michael Campbell, Investor & Media Relations
email: Tracey.Whitehead@bhpbilliton.com Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 600 Bourke Street Melbourne Victoria Registered Office: 1-3 Strand London WC2N 5HA United Kingdom
3000 Telephone +44 20 7747 3800 Facsimile +44 20 7747 3900
Telephone +61 3 9609 3333 Facsimile +61 3 9609 3015
The BHP Billiton Group is headquartered in Australia
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