BHP Billiton approved 11 major projects for a total investment commitment of USD 12.9 billion during the 2011 financial year. Following the progression of the Jansen Potash Project into feasibility during the March 2011 quarter, BHP Billiton also announced an additional USD 488 million of pre-commitment funding to support development of the project in Saskatchewan, Canada.
The progression of these projects forms a meaningful component of the Group’s anticipated organic growth program that is expected to exceed USD 80 billion over the five years to the end of the 2015 financial year.
Industry wide cost pressures remain a feature of the development landscape and reflect stronger producer currencies as well as underlying inflation on raw material and labour costs. BHP Billiton approved revised capital budgets and schedules during the 2011 financial year for the Esso Australia Resources Pty Ltd operated Kipper (USD 900 million, BHP Billiton share) and Turrum (USD 1.4 billion, BHP Billiton share) Petroleum projects and the BHP Billiton operated Worsley Efficiency and Growth (USD 3.0 billion, BHP Billiton share) alumina refinery expansion (all Australia).
Three major projects delivered first production in the twelve month period: namely the New South Wales Energy Coal MAC20 Project, the Douglas Middelburg Optimisation Project in South Africa Coal and Angostura Gas Phase II (Trinidad and Tobago).