The following table provides a summary of the performance of the Customer Sector Groups for the year ended June 30th 2010 and the corresponding prior year.

Revenue

(In USD million)

EBIT

(In USD million)

Petroleum
Underlying EBIT was USD 4,573 million, an increase of USD 488 million or 12% compared to the prior year. The increase in underlying EBIT was primarily attributable to the growth in high margin crude volumes.

Total production of 159 million barrels of oil equivalent was a record and an increase of 21 million barrels of oil equivalent compared to the previous year. The 15% increase in production reflected strong performance from BHP Billiton operated Shenzi and Pyrenees, the latter being delivered on schedule during the period. In addition, improved reservoir performance from Atlantis (USA) and an absence of weather related interruptions supported the strong production result.

Underlying EBIT also benefited from higher realised oil prices, which averaged USD 73.05 per barrel for the year (compared with USD 66.18 per barrel). The major offsetting factors were a lower average realized natural gas price of USD 3.43 per thousand standard cubic feet (compared with USD 3.57 per thousand standard cubic feet) and a lower average realized liquefied natural gas price of USD 9.07 per thousand standard cubic feet (compared with USD 12.07 per thousand standard cubic feet).

Gross exploration expenditure was USD 817 million, an increase of USD 269 million compared to last year (USD 548 million), primarily from increased drilling activity in the Gulf of Mexico (USA), Canada, Malaysia, the Falklands and the Philippines. Several exploration wells were not commercial and resulted in an increase in exploration expense of USD 163 million (USD 563 million compared to USD 400 million in the prior year).

Drilling activities at Atlantis and Shenzi ceased during the June 2010 quarter due to the drilling moratorium currently in place in the deepwater Gulf of Mexico. BHP Billiton continues to monitor and assess the impact of the six month suspension of certain permitting and drilling activities. All other drilling operations outside of the Gulf of Mexico progressed as planned. Underlying EBIT was impacted by a USD 59 million charge related to idle rig time in the Gulf of Mexico for operated rigs. This is part of BHP Billiton’s ongoing management of rig contracts which included negotiating revised terms for the rigs during the moratorium and will provide BHP Billiton with continued access to the rigs and experienced crews when the moratorium ceases.


Aluminium
Underlying EBIT was USD 406 million, an increase of USD 214 million or 111% over the prior financial year. Higher prices and premiums for aluminium had a favourable impact of USD 253 million, which was partially offset by a USD 19 million unfavourable impact of price linked costs. The average LME aluminium price increased to USD 2,018 per tonne (compared with USD 1,862 per tonne). The average realised alumina price was USD 291 per tonne for the year ended June 2010 (compared with USD 286 per tonne).

Overall, operating costs were lower, mainly due to reduced raw material and energy costs. This was partially offset by a weaker US dollar against the Australian dollar and South African rand, and inflationary pressures in Australia, South Africa and Brazil.
Lower operational losses from Suriname in the year ended June 2010 increased Underlying EBIT by USD 68 million.

Base Metals
Underlying EBIT was USD 4,632 million, an increase of USD 3,340 million or 259% from the corresponding period. Higher average realised prices favourably impacted Underlying EBIT by USD 3,977 million. Average realized prices for all of the key commodities in Base Metals, except uranium, were higher compared to last year.

Stronger production from Escondida following the successful repair of the Laguna Seca SAG mill contributed to higher earnings. However, that benefit was more than offset by lower copper sales due to the Clark Shaft incident at Olympic Dam and industrial disruptions at Spence. 11

The Clark Shaft accounts for approximately 75% of Olympic Dam's ore hoisting capacity. The incident impacted earnings by USD 455 million but was partially offset by self insurance recoveries of USD 297 million. The recommissioning of Olympic Dam's Clark Shaft occurred during the final quarter of the year and has returned to full production.

Cost efficiency was favourably impacted by lower prices for key consumables including fuel and energy. This was offset by higher labour costs, including one off bonus payments from collective labour negotiations completed during the year in the South American operations. Costs were also negatively impacted by the devaluation of the US dollar and inflation in Chile and Australia.

At June 30th 2010 the Group had 236,584 tonnes of outstanding copper sales that were revalued at a weighted average price of USD 2.96 per pound. The final price of these sales will be determined in the 2011 financial year. In addition, 234,871 tonnes of copper sales from the 2009 financial year were subject to a finalisation adjustment in 2010. The finalization adjustment and provisional pricing impact as at 30 June 2010 increased earnings by USD 303 million for the year (compared to a loss of USD 936 million in the year ended June 2009).

Diamonds and Specialty Products
Underlying EBIT was USD 485 million, an increase of USD 340 million or 234% over the corresponding period. Strong operating earnings at EKATI (Canada) resulted from higher volumes and realized diamond prices and lower unit costs, due to the continued emphasis on cost control. There was also a decrease in exploration expense of USD 43 million mainly due to reduced diamonds exploration activity. Potash exploration expenditure of USD 73 million in Saskatchewan, Canada, was USD 21 million lower for the year as the exploration work program for Jansen was completed in the corresponding period. Higher diamonds earnings were partially offset by a reduction in operating earnings in Titanium Minerals (South Africa) due to lower realized prices and higher energy costs.

Stainless Steel Materials
Underlying EBIT was USD 668 million, an increase of USD 1,522 million compared with the corresponding period. Higher average LME prices for nickel of USD 8.81/lb (compared to USD 6.03/lb) had a favorable impact on Underlying EBIT of USD 1,171 million that was partly offset by a USD 305 million unfavorable impact of price linked costs.

Proactive portfolio restructuring and ongoing improvements at the operating level also contributed to the strong result. Lower operational losses from Yabulu and Ravensthorpe in the year ended June 2010 increased Underlying EBIT by USD 458 million.

The Nickel West Kalgoorlie Smelter furnace rebuild and concurrent maintenance at the Nickel West Kwinana Refinery (both Australia) in the prior period set the platform for record total production at Nickel West in the year ended June 2010. Ongoing cost saving initiatives and lower labour costs were offset by the devaluation in the US dollar and inflation. Underlying EBIT also benefited from lower exploration and business development expenditure.

Iron Ore
Underlying EBIT was USD 6,001 million, a decrease of USD 228 million or four per cent compared with the corresponding period. Record production and sales were the major positive contributors adding USD 546 million to Underlying EBIT.

Overall operating costs were unfavourably impacted by a weaker US dollar, general inflationary pressure and the ongoing ramp up of Western Australia RGP4, reducing Underlying EBIT by USD 759 million. In addition, a provision that relates to proposed amendments to the Western Australian State Agreements reduced Underlying EBIT by USD 126 million.

For the 2010 financial year, 39% of Western Australia Iron Ore shipments on a wet metric tonne basis were priced on annually agreed terms, with the remainder sold on a shorter term basis. During the second half of the financial year, the old benchmark pricing system was substantially replaced by shorter term market based, landed pricing. Our expectation is that future Western Australia Iron Ore shipments will be priced on this basis.

Manganese
Underlying EBIT was USD 712 million, a decrease of USD 637 million or 47% compared with the corresponding period. The decline was directly attributable to lower realised prices which reduced Underlying EBIT by USD 1,680 million. In comparison to the year ended June 2009, average realised prices for ore fell by 46% and alloy prices fell by 43%. Offsetting this was the positive impact of price-linked costs of USD 261 million.

The decrease in realized prices was partially offset by a demand driven rise in sales volumes that increased Underlying EBIT by USD 799 million. Local operating costs were well controlled throughout the year although the impacts of inflation and a weaker US dollar mitigated any benefit.

All Manganese assets were running at full supply chain capacity at the end of the June 2010 quarter.

Metallurgical Coal
Underlying EBIT was USD 2,053 million, a decrease of USD 2,658 million or 56% from the corresponding period. The decrease was mainly due to lower realized prices for hard coking coal (34%), weak coking coal (33%) and thermal coal (11%). This was partly offset by a reduction in price linked costs.

Record annual sales volumes were delivered despite wet weather disruptions in Queensland in the March 2010 quarter. Production for the year was higher due to improved operational and supply chain performance, supported by strong demand.

Operating costs were well controlled. However a weaker US dollar and inflationary pressure had an unfavorable impact of US$632 million on Underlying EBIT.

As with iron ore, the old benchmark system was substantially replaced by shorter term market based pricing. For the year ended June 2010, 34% of metallurgical coal shipments were priced on a shorter term basis. The majority of product sold in the June 2010 quarter was priced in this manner.

Energy Coal
Underlying EBIT was USD 730 million, a decrease of USD 730 million or 50% from the corresponding period. This was mainly due to lower average export prices which decreased earnings by USD 535 million, offset by a USD 76 million benefit related to price-linked costs. Dissolution of the Douglas Tavistock Joint Venture arrangement favourably impacted Underlying EBIT in the period.

Production was in line with the previous year with a 10% increase in export sales attributable to the continued ramp up of the Klipspruit (South Africa) expansion and record production at Mt Arthur (Australia). Weaker production at New Mexico Coal (USA) reflected a downturn in demand from the dedicated power generators. Operating costs were well controlled despite the adverse impacts of a weaker US dollar and inflation.