Iron ore production increased by 7% in the 2013 financial year to 170 million tonnes (BHP Billiton share). WAIO production of 187 million tonnes (100% basis) represented a thirteenth consecutive annual production record. The delivery of WAIO's capital efficient growth program and continued strong operating performance across the supply chain contributed to this record result. Samarco's three pellet plants continued to operate at capacity during the period.

Underlying EBIT for the 2013 financial year declined by USD 3.1 billion to USD 11.1 billion. Record sales volumes at WAIO increased Underlying EBIT by USD 1.4 billion. However, this was more than offset by a 17% fall in the average realized price of iron ore to USD 110 per tonne which reduced Underlying EBIT by USD 3.9 billion, net of price linked costs.

WAIO's export volumes for the 2013 financial year were sold on the basis of shorter term, market based prices. Revenue for the period reflected the average index price one month prior to the month of shipment, adjusted for product characteristics such as iron and moisture content. Approximately 65% of shipments were delivered on a Cost and Freight (CFR) basis.

Increased labour and contractor costs reduced Underlying EBIT by USD 151 million during the period. This largely reflected our decision to invest in operating capability prior to the full commissioning and ramp up of expanded capacity at WAIO. WAIO unit cash costs including freight and royalty charges of USD 856 million and USD 1.2 billion, respectively remained largely unchanged during the 2013 financial year.

Increased depreciation and amortization charges reduced Underlying EBIT by USD 239 million and reflected the recent completion of several major projects and a USD 86 million impairment of project costs associated with the WAIO Tug Harbour project.

On June 20th 2013, BHP Billiton announced an extension of its long term WAIO JV relationship with ITOCHU Corporation and Mitsui & Company Limited. This transaction was completed in July 2013 and has aligned interests across the WAIO supply chain. Under the terms of the agreement, ITOCHU and Mitsui invested approximately USD 0.8 billion and USD 0.7 billion, respectively, in shares and loans of BHP Iron Ore (Jimblebar) Private Limited representing an 8% and 7% interest in the Jimblebar mining hub and resource. The consideration included a share of capital costs associated with the Jimblebar Mine Expansion project.

Several major milestones were achieved at our WAIO business during the 2013 financial year including an increase in port capacity to 220 million tonnes per annum (100% basis) following the successful installation of all major infrastructure associated with the Port Hedland Inner Harbour Expansion project.

First production from BHP Billiton Financial Results for the year ended 30 June 2013 the Jimblebar Mine Expansion, which will increase mine capacity to 220 million tonnes per annum (100% basis), is expected in the December 2013 quarter, ahead of schedule. Longer term, the progressive debottle necking of the supply chain is expected to underpin substantial low cost growth in ourWAJO business.

WAIO production is expected to increase by 10% to approximately 207 million tonnes (100% basis) in the 2014 financial year. The associated productivity gains will benefit unit costs in the 2014 financial year however, this is expected to be more than offset by a temporary increase in strip ratios as the Jimblebar Mine Expansion ramps up production. Total iron ore production for the 2014 financial year which includes Samarco production, is forecast to increase by 11% to 188 million tonnes.