Slide 1: Escondida site tour
Escondida site tour Edgar Basto President Escondida 1 October 2012
Slide 2: Disclaimer
Disclaimer Forward looking statements This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events, conditions circumstances and the future financial performance of BHP Billiton conditions, Billiton, inc
Slide 3: Disclaimer: Exploration Targets and Mineral Resources
Disclaimer Exploration Targets and Mineral Resources This presentation includes information on Exploration Targets (Potential Mineralisation) and Mineral Resources. Mineral Resources are compiled by: L Soto (MAusIMM) (MAusIMM), M Cortes (MAusIMM) and R Preece (FAusIMM) – Escondida mineral district d
Slide 4: Chilean site tour program
Chilean site tour program Day 1: Sunday, 30 September 2012 Welcome and safety induction Brendan Harris Non-ferrous overview Andrew Mackenzie Well positioned to deliver low risk copper growth Peter Beaven Base Metals performance overview Margaret Beck Low risk, high return projects Peter Beaven Our c
Slide 5: Escondida visit
Escondida visit Time Description 07:00 – 09:30 Coach transfer from Terrado Suites to Escondida 09:30 – 11:00 Escondida management presentations 11:00 – 12:00 Lunch with Escondida management 12:00 – 15:00 Escondida site tour 15:00 – 15:30 Afternoon tea 15 30 – 18:00 15:30 18 00 C Coach h ttransfer f
Slide 6: Visitor safety induction
Visitor safety induction • Stay with your escort at all times – especially if an emergency occurs • You will be advised when to wear – a reflective vest and safety helmet – safety glasses (fit over prescription glasses) – face mask – gloves – hearing protection • Use handrails when on stairs • Keep
Slide 7: Key themes
Key themes • A well established, experienced and diverse management team • Leading industry HSEC performance • Operation is performing well following temporary challenges in FY12 • The release of latent capacity will deliver material unit cost savings • Low risk, high return growth projects will sus
Slide 8: Escondida leadership team
Escondida leadership team Well established, experienced and diverse President Escondida Edgar Basto Head of Head of Head of HR Head of HSEC Finance Production Jorge Lopez Marcelo Maree Pedro Damjanic Ocampo Robertson Head of Head of Manager Projects Resource External Affairs Claudio Monken Planning
Slide 9: Strong focus on health, safety, environment and the community
Strong focus on health, safety, environment and the communityy • Use of forced air helmets in electrowinning plant to reduce exposure to acid mist alth • Implementation of plans to minimise exposure e pos re to silica, silica noise and acid mist Hea • Monitoring and managing fatigue • Monitoring cam
Slide 10: Industry leading HSEC performance
Industry leading HSEC performance • Reduction in Significant Incidents and Escondida Total Recordable Injury Frequency (TRIF) benchmark TRIF despitep increased level (number of recordable injuries per million hours worked) of activity from major projects 4 3 • Significant development in Material Ris
Slide 11: Good community citizen
Good community citizen • Recognised as the leading mining company Chile’s most respected companies (2012) in Chile Minera Escondida ZOFRI • We have good relationships with the ENTEL community, supported by our foundations CODELCO and local community programs FORUS Andina Sociedad Punta del Cobre • M
Slide 12: Escondida: the world's leading copper mine
Escondida: the world’s leading copper mine • Largest copper mine in the world – Escondida pit › depth 645 m › dimensions 3.9 km x 2.7km – Escondida Norte pit p › depth 525 m › dimensions 2.5 km x 2.2 km Escondida and Escondida Norte pits • BHP Billiton 57.5% 57 5% interest and operator • 4,000 emplo
Slide 13: Escondida: operations overview
Escondida: operations overview Los Colorados Escondida Pit Escondida Norte Pit Laguna Seca Approximately Concentrator Plants 230 ktpd ore processed Crusher Copper Coloso Port Waste Oxide Mix Ore Sulphide p Concentrate Approximately pp y 3.5 mtpa of Crusher concentrate shipped Sulphide Ore Stock Dump
Slide 14: Escondida: mine operations overview
Escondida: mine operations overview Mine mobile equipment Total material moved per day (mtpd) • 18 shovels • 171 trucks 1.6 • 5 front end loaders • 20 drills • 22 bulldozers 1.2 • 19 wheel tyre dozer • 14 graders • 13 water trucks 0.8 Mine fixed equipment • 5 primary crushers • 35 km conveyor belts
Slide 15: Escondida: concentrator plants overview
Escondida: concentrator plants overview Los Colorados Los Colorados • Started operations in 1990 • 120 ktpd design capacity • Average monthly energy consumption of 62,000 MWh Laguna Seca • Started operations in 2002 • 110 ktpd design capacity • Average monthly energy consumption of 62,000 MWh BHP Bi
Slide 16: Escondida: hydrometallurgy processes overview
Escondida: hydrometallurgy processes overview • Two solvent extraction plants (oxide and Electrowinning area sulphide) p ) • Sulphide and oxide ore leached in separate pads • Electrowinning with a nominal capacity of 330 ktpa • The cathodes produced are transported to A t f Antofagasta t portt for f
Slide 17: Strong growth over the last years
Strong growth over the last 20 years Escondida copper production Sulphide Leach Head grade (mt, 100% basis) 180 kt (%) Laguna Seca 1.5 Oxide Leach Debottleneck 4 150 kt Phase 4 Escondida Phase 3.5 Ore Access 1.2 25 ktpd p 120 ktpd 3 0.9 Phase 3 Phase 2 50 ktpd +50 2 +15 ktpd 0.6 Phase 1 35 ktpd 1 03
Slide 18: Concentrate production and throughput affected by temporary challenges
Concentrate production and throughput affected by y temporary p y challenges g • In recent years, throughput affected by Throughput Payable metal (ktpd, 100% basis) (kt, 100% basis) – crushing and conveying equipment reliability issues due to aging of the 300 1,400 system 225 1,050 – ore hardness, w
Slide 19: Strong recovery underway
Strong recovery underway • Successfully carried out the largest Equipment vulnerability index (crusher and conveyor)1 maintenance shut-down in the history y of (%) Escondida during July and August 2012 15 – will impact production in Q1 FY13 as 10 planned 5 – no change to FY13 production guidance 0 A
Slide 20: Unit costs affected by industrial action and one-off events
Unit costs affected by industrial action and one-off events • Copper unit cash costs increase by 24% in Cost breakdown FY12 due to a number of temporary p y (FY12) challenges – grade decline Other 30% Contractors 31% – labour unrest – equipment reliability issues Replacement parts 12% Labour 14% • O
Slide 21: Targeting significant unit cost savings
Targeting significant unit cost savings • Economies of scale benefits Unit cash cost (index, FY08=100) – access to higher grade ore with the completion of Escondida Ore Access project 250 – increased throughput capacity with completion 200 of Laguna Seca Debottlenecking project 150 100 • Reversal of
Slide 22: High return, rapid payback projects underpin significant momentum
High return, rapid payback projects underpin significant g momentum in the business • Escondida Ore Access completed in the Escondida forecast copper production1 June 2012 qquarter, p providing g access to high g (index, FY12=100) grade ore (over 1% copper head grade) 150 • Laguna Seca debottlenecki
Slide 23: Escondida Ore Access project provides access to higher grade ore
Escondida Ore Access project provides access to higher g grade g ore • Escondida Ore Access project on time and Crusher relocation on budget g – investment of US$554 million (100% basis) • Project relocated the two existing in-pit in pit crushing stations (2 and 3) to a location outside of the curre
Slide 24: Laguna Seca Debottlenecking project delivers increased throughput
Laguna Seca Debottlenecking project delivers increased throughput g p and improved p recoveries • Laguna Seca Debottlenecking project Laguna Seca increases throughput g p by y 15 ktpd p and improves overall recoveries – completed on time and on budget – investment of US$300 million (100% bbasis) i )
Slide 25: OGP1 generates strong returns
OGP1 generates strong returns • Construction of a 152 ktpd concentrator to OGP1 – setting a new benchmark for the industry replace Los Colorados Concentrator (LCC) and d provide id early l access tto hi high h ore grade d – on track and on schedule – investment of US$3.8 billion (100% basis) – commi
Slide 26: Extending the life of our leaching operations
Extending the life of our leaching operations Escondida Bio Leach Pad Extension III Sulphide leach pad • Provides P id additional dditi l strips t i ((pad d surface f area), ) equipment and new facilities to sustain production of the sulphide leach plant • Investment In estment of US$354 million (10
Slide 27: Infrastructure projects to enable Escondida's growth plan
Infrastructure projects to enable Escondida’s growth plan g p Escondida Water Supply Antofagasta • Expansion E i off th the currentt desalination d li ti plant l t tto meet Escondida’s future water demands New Facilities Mine Maintenance • Construction of a replacement maintenance facility to allow
Slide 28: A highly successful exploration program has delivered a substantial increase in resource base
A highly successful exploration program has delivered a substantial increase in resource base • High quality resource base with 21.7 bt @ 0.54% copper1 B • Substantial increase in Escondida mineral district resources including: g Escondida 1 Zaldivar – 11% increase in resources from 30 June 2011 Nor
Slide 29: Substantial future growth potential
Substantial future growth potential • Significant copper resource base Escondida – providing +100 years of production1 – multiple plant expansion opportunities • Longer term growth will require investment in additional throughput thro ghp t capacity capacit – enabling technology studies underway • S
Slide 30: Enabling long term growth by applying technological solutions to key constraints
Enabling long term growth by applying technological g solutions to key y constraints Growth • Intensity and costs of • Intensity and costs of • Complexity of constraint mining operations processing future low operations grade, harder ores Technology T h l • Bulk B lk material i lhhandling dli • Sele
Slide 31: Key themes
Key themes • A well established, experienced and diverse management team • Leading industry HSEC performance • Operation is performing well following temporary challenges in FY12 • The release of latent capacity will deliver material unit cost savings • Low risk, high return growth projects will sus
Slide 32: BHP Billiton: resourcing the future
él ohpbilliton resourcing the future