GLD.

022
MINERALISATION, RESOURCE AND
RESERVE REPORTING

Brief description
Performance requirements for the public reporting of mineral Exploration Results, the estimation and public
reporting of Mineral Resources and Ore Reserves in compliance with the 2004 JORC Code, the estimation and
reporting of Ore Reserves in compliance with the US SEC Industry Guide 7, and the reporting and review
requirements for brownfield exploration.
Minerals Customer Sector Groups (CSGs) and Minerals Exploration are collectively referred to as CSGs in this
Group Level Document (GLD), unless explicitly stated otherwise.
This GLD does not apply to BHP Billiton Petroleum Assets.

Key contact
Jill Terry, Senior Manager Resource Governance

Version: 2.4 (21 October 2011)

Revalidation date: 30 June 2013
BHP Billiton Group Level Document (printed copies are uncontrolled)
 GLD.022
MINERALISATION, RESOURCE AND RESERVE
REPORTING

1. Competent Person assignment

The public reporting of Mineral Resources, Ore Reserves and mineral Exploration Results (as applicable) must
only be performed by a Competent Person (CP) appointed annually for each Asset, ensuring each CP has
relevant and sufficient experience and can demonstrate competence in the commodity, deposit and mining method.

 Customer Sector Group (CSG) Ore Reserve Coordinators must manage the nomination and
appointment of CPs, oversee the process of annual Mineral Resource and Ore Reserve declarations,
and notify the CSG President of the CSG’s public reporting, in consultation with the Senior Manager
Resource Governance and the Ore Reserve and Resource Guidance Group.
 Complete the CP Nomination Form available on the BHP Billiton Resource and Reserves Data Entry
System and authorise it in accordance with Appendix 1.
 Lodge the CP Nomination Form, CP curriculum vitae and CP Consent Form in the BHP Billiton Resource
and Reserves Data Entry System prior to the publication of public statements of mineral Exploration
Results, Mineral Resources and Ore Reserves. Where the statement refers to previously published
information, the appropriate CSG Ore Reserves Coordinator can act as the CP and lodge the CP
Consent Form.

2. Potential mineralisation estimation

An estimation of potential mineralisation in brownfield exploration areas must be undertaken using Resource
Range Analysis (RRA) techniques for mineralisation that is outside of any Mineral Resource estimate as an input
into total mineral inventory for CSG Directional Planning.

 Conduct RRA analysis using the methodology contained within the Resource Range Analysis Template
accessible from the BHP Billiton Resource and Reserves Data Entry System.
 Lodge the estimate of potential mineralisation using the template available from the BHP Billiton
Resource and Reserves Data Entry System.

3. Brownfield exploration reporting obligations

A defined set of brownfield exploration reporting deliverables must be submitted to Mineral Resource
Development (MRD) by 31 March each year for compilation, review and internal management reporting of
Minerals, CSG and brownfield exploration.

 Lodge the defined set of brownfield exploration reporting deliverables using template available from the
BHP Billiton Resource and Reserves Data Entry System.
 Undertake an annual review of brownfield exploration, facilitated by MRD, which includes:
– overview of activities, including linkage to CSG growth strategy, Resource Development Potential
(RDP) and Life of Asset (LoA) plans, and current growth projects;
– detailed review of brownfield exploration deliverables, including estimation of tenement maturity,
development and estimation of potential mineralisation and inventory maturity, and achievability of
the program.

Version: 2.4 (21 October 2011)

Revalidation date: 30 June 2013
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MINERALISATION, RESOURCE AND RESERVE
REPORTING

4. Public reporting of Exploration Results for minerals

Minerals Exploration Results must be authorised by nominated Competent Persons (CPs) and publicly reported
in compliance with Australian Stock Exchange (ASX) Listing Rules Appendix 5A (2004 JORC Code).

 Where the Minerals Exploration Results include an estimate of potential mineralisation, this must be
based on the RRA and reported as a range using the Low and High case results.
 Where an estimate of potential mineralisation is undertaken, a CP Report containing the RRA must be
prepared and lodged in the BHP Billiton Resource and Reserves Data Entry System.
 Authorise and lodge the CP Consent Form together with the public statement of Exploration Results in
accordance with Appendix 1 and the BHP Billiton Resource and Reserves Data Entry System
respectively.

5. Public reporting of Mineral Resources

Mineral Resources must be authorised by Competent Persons (CPs) and publicly reported in the BHP Billiton
Annual Report, or when a material change has occurred as defined by and in compliance with 2004 JORC Code
and to provide consistency of reporting across BHP Billiton.

 State only Mineral Resources that are contained within existing tenements controlled by an Asset.
 Do not report Mineral Resources where the tenement has expired or access to the tenement area has
been denied, unless tenement renewal is an administrative exercise and forms part of the normal course
of business as advised by the CP to the Senior Manager Resource Governance.
 Apply Mineral Resource reporting limits that include all mineralisation of intrinsic economic interest
using, where required by the CP, the BHP Billiton High case, flat real commodity anchor price forecast to
assess intrinsic economic value (available from Group Investments and Value Management).
 Publish a statement of Mineral Resources for BHP Billiton capital projects only, for:
– brownfield exploration sites where the deposit is within an Asset’s exploration district (as defined by
the CSG and Minerals Exploration) and appropriate studies (for example, identification phase study)
have been completed to ensure the Mineral Resource is of intrinsic economic interest; or
– greenfield exploration sites where the project has been authorised to move to the definition phase
of the investment process.
 Authorise and lodge the estimate of the Mineral Resources and supporting CP Report as at 30 June
each year using the declaration template and CP Report template available from the BHP Billiton
Resource and Reserves Data Entry System in accordance with Appendix 1.
 Authorise and lodge the consent form for the public statement of Mineral Resources in accordance with
Appendix 1 and the BHP Billiton Resource and Reserves Data Entry System respectively.

6. Public reporting of Ore Reserves

Ore Reserves must be authorised by Competent Persons (CPs) and publicly reported annually in the BHP
Billiton Annual Report, or when a material change has occurred as defined by and in compliance with the 2004
JORC Code and to provide consistency of reporting across BHP Billiton.

Version: 2.4 (21 October 2011)

Revalidation date: 30 June 2013
BHP Billiton Group Level Document (printed copies are uncontrolled) Page 3 of 6
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MINERALISATION, RESOURCE AND RESERVE
REPORTING

 Produce a public statement of Ore Reserves for BHP Billiton capital projects only in instances where
development has been authorised and the Ore Reserves are included in the Life of Asset Optimised
Base Plan.
 State only Ore Reserves contained within existing fully permitted mining tenements which are of
sufficient duration (or convey a procedural right to renew in the normal course of business) to enable all
Ore Reserves on leased properties to be mined in accordance with current production schedules.
Prepare and establish the Ore Reserve estimate:
– demonstrating that the Ore Reserve is consistent with the development schedule in the LoA
Optimised Base Plan and economically mineable using the LoA Optimised Base Plan;
– using the authorised commodity Mid price protocol (available from Group Investments and Value
Management) and cash cost forecasts where the assumptions underpinning long-run industry costs
are consistent with price forecasts to ensure appropriate projection of operating margin.
– assuming a positive cash contribution from the Inferred Mineral Resources.
 Authorise and lodge the estimate of the Ore Reserves and supporting CP Report as at 30 June each
year using the declaration template and CP Report template available from the BHP Billiton Resource
and Reserves Data Entry System in accordance with Appendix 1.
 Authorise and lodge the consent form for the public statement of Ore Reserves in accordance with
Appendix 1 and the BHP Billiton Resource and Reserves Data Entry System respectively.

7. US SEC reporting of Ore Reserves

Ore Reserves must be reported each year in the US SEC Form 20-F filing in accordance with BHP Billiton market
disclosure obligations and in compliance with the US SEC Exchange Act Industry Guide 7.

 Conduct a cash flow test using the JORC compliant Ore Reserves estimate if the:
– commodity price assumed for the purpose of defining mining limits for the JORC compliant Ore
Reserves is higher than the US SEC compliant price (the average price over the preceding three
years);
– mining limit used for estimating the JORC Ore Reserve was developed assuming a positive cash
contribution from Inferred Mineral Resource.
 Produce the cash flow forecast using the LoA Optimised Base Plan from which the JORC compliant
Ore Reserve was estimated from by applying the following:
– Revenue must be calculated using US SEC compliant prices provided by Group Investments and
Value Management (I&VM) and applied only to Measured Mineral Resources and Indicated Mineral
Resources.
– Inferred Mineral Resource, where mined, must be treated as waste for the purposes of cash flow
estimation and must be given cost but no revenue.
– Operating costs must be based on demonstrated actual costs for the operating mine(s), or on
feasibility level estimates at the nominal authorised production rate for greenfield sites, where the
project has been authorised for development.
– Capital costs must include the required capital and base sustaining capital to maintain current
production levels or increase production to the authorised rate. Exclude capital estimated for projects
which have not been authorised.
– All cash flows must be undiscounted.

Version: 2.4 (21 October 2011)

Revalidation date: 30 June 2013
BHP Billiton Group Level Document (printed copies are uncontrolled) Page 4 of 6
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MINERALISATION, RESOURCE AND RESERVE
REPORTING

 Report the JORC compliant Ore Reserve in the US SEC Form 20-F if the cashflow test is not required or
the JORC compliant Ore Reserve passes the cash flow test (that is, results show a positive undiscounted
cumulative cash flow).
 Estimate an additional US SEC compliant Ore Reserve if the cash flow test fails, by using only Measured
Mineral Resources and Indicated Mineral Resource, the last three year average commodity price and
current costs. Where the Ore Reserve is estimated to satisfy US SEC requirements only, ensure that the
mine plan is feasible and the costs associated are based on current estimates.
 Report the additional US SEC compliant Ore Reserve in the US SEC Form 20-F and include the
supporting information for the US SEC compliant Ore Reserve in the CP Report lodged in the BHP
Billiton Resource and Reserves Data Entry System if it is materially lower than the JORC compliant Ore
Reserve (that is, by more than five per cent).

8. Ore Reserve reconciliation

Operating Assets must collate and analyse (quarterly) and report (annually) the results after completing the
calculation of defined reconciliation factors of production against forecast Ore Reserve to provide validation of
forward projections of production estimates.

 Calculate the following reconciliation factors:

– F1: grade control (short-term production control model) to Ore Reserve (long-term forecast model)
and/or the Mineral Resource model.
– F2: process plant received mine production to grade control predicted mine production or, if a grade
control model is unavailable, F2 is the process plant received mine production to reserve model
predicted mine production.
– F3: final product inventory and sales to reserve predicted.
 Lodge the annual reconciliation results as part of the annual declaration of Ore Reserves using the
declaration template available from the BHP Billiton Resource and Reserves Data Entry System.

9. Independent auditing
Independent audits (either internal independent or external third party) of Mineral Resources and Ore Reserves
estimation and reporting must be conducted prior to capital project and divestment decisions above the group
approval threshold, or following a significant change in an estimate to provide assurance in the quality of Mineral
Resource and Ore Reserve estimates.

 Consult with the Senior Manager Resource Governance to determine if a change in a Mineral Resource
or Ore Reserve estimate requires an independent audit.
 Adhere to the following requirements when planning the audit:
– Encompass both 2004 JORC Code and US SEC Exchange Act Industry Guide 7 compliance.
– Appoint suitably qualified independent person(s) who have knowledge and experience of the deposit
style, mining method and requirements of both 2004 JORC Code and US SEC Exchange Act Industry
Guide 7.
– Comply with authorities (Appendix 1).

Version: 2.4 (21 October 2011)

Revalidation date: 30 June 2013
BHP Billiton Group Level Document (printed copies are uncontrolled) Page 5 of 6
 GLD.022
MINERALISATION, RESOURCE AND RESERVE
REPORTING

Appendix 1. Authorities

Endorse Approve Inform

15.2 COMPETENT PERSON

15.2.1 Competent Person Nomination Form

Competent Person 

and CSG Ore Reserves Coordinator 

Asset President <Asset> 

Senior Manager Resource Governance 

15.2.2 Competent Person Report

Competent Person 

Asset President <Asset> 

15.2.3 Competent Person Consent Form for Public statements of minerals Exploration Results, Mineral
Resources and Ore Reserves

Asset President <Asset> 

Competent Person 

Senior Manager Resource Governance 

15.3 Independent Mineral Resource and Ore Reserve Audits

Senior Manager Resource Governance 

Version: 2.4 (21 October 2011)

Revalidation date: 30 June 2013
BHP Billiton Group Level Document (printed copies are uncontrolled) Page 6 of 6