Copper production increased during the 2011 financial year as Olympic Dam reported annual material mined and milling records. Strong operating performance was similarly reported at Pampa Norte and Antamina, where record annual milling rates mitigated the impact of lower grades. Total copper cathode production represented another record for the period.

Underlying EBIT for the 2011 financial year increased by USD 2.2 billion or 47% to USD 6.8 billion. Higher average realized prices for all of our core products favorably impacted Underlying EBIT by USD 3.3 billion. The supportive pricing environment was similarly reflected in a number of our key input costs with higher energy, fuel and contractor costs the major offset. The devaluation of the US dollar and inflation reduced Underlying EBIT by USD 418 million.

In addition, BHP Billiton refined the basis on which the metal content of its leach pads is estimated at Escondida and Pampa Norte, which resulted in a non cash reduction in Underlying EBIT of USD 168 million.

At June 30th 2011, the group had 239,156 tonnes of outstanding copper sales that were revalued at a weighted average price of USD 4.25 per pound. The final price of these sales will be determined in the 2012 financial year.

In addition, 236,584 tonnes of copper sales from the 2010 financial year were subject to a finalization adjustment in 2011. The finalization adjustment and provisional pricing impact increased Underlying EBIT by USD 650 million for the period.

BHP Billiton's Base Metals business is characterized by its large, tier 1 resource position and its numerous options for growth. In that context, a combined investment of USD 492 million (BHP Billiton share) was approved during the period for the Escondida Ore Access and Laguna Seca Debottlenecking projects. The quality of the Base Metals investment pipeline was further emphasized by the progression of both the Escondida Organic Growth Project and the Olympic Dam Project development options into feasibility. A 129% increase in the Escondida district Mineral Resource tonnage solidifies Escondida's position as the world’s leading copper operation for decades to come.