Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Macquarie Australian Conference (July 2008)
23 slides from Bhp's conference presentation, July 2008
Slide 1: Uranium: A clear future
Uranium: A clear future Macquarie Australian Conference Graeme Hunt – President Uranium and Olympic Dam Development
Slide 2: Disclaimer
Disclaimer This presentation is for in formation purposes only and does not constitute or form part of any offer or invitatio n to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscrib e for, any securities, nor does i
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) Information for US Hold ers of Rio Tinto Limited Shares BHP Billiton Limited is not required to, and does not pla n to, prepare and file with the SEC a registratio n statement in respect of the Rio Tinto Limited Offer. Accordingly, Rio Tinto Limited sharehold ers should carefu
Slide 4: Agenda
Agenda • Olympic Dam is a world class and superior resource • Strong nuclear demand growth prospects • Nuclear key to address climate change • Carbon price rewrites nuclear economics • China impact in the uranium industry Page 4
Slide 5: Olympic Dam: A world class resource
Olympic Dam: A world class resource mt Copper kt U3O8 moz Au 160 2500 ~1100 400 44ththlargest largestcopper The copper Thelargest largesturanium uranium 55ththlargest largestgold gold deposit depositininthetheworld deposit 140 world deposit in theworld in the world 1050 350 deposit deposit in thewor
Slide 6: Olympic Dam relative to Rio Tinto's undeveloped copper projects
Olympic Dam: A world class resource Olympic Dam relative to Rio Tinto’s undeveloped copper projects 3.0 2.5 Olympic Dam Copper equivalent grade - % Cu 2.0 Resolution(a) 1.5 Oyu Tolgoi(b) 1.0 Pebble 0.5 Solid bubble = Existing production La Granja T ransparent bubble = T argeted annual pr oduction No
Slide 7: Agenda
Agenda • Olympic Dam is a world class and superior resource • Strong nuclear demand growth prospects • Nuclear key to address climate change • Carbon price rewrites nuclear economics • China impact in the uranium industry Page 7
Slide 8: The world is well on its way to consuming as much energy in the next 25 years as it has consumed throughout modern history
The world is well on its way to consuming as much energy in the next 25 years as it has consumed throughout modern history World Primary Energy Use 2007-2030 (million tonnes of oil equivalent) Total = 300 bntoe* 15,000 12,500 1900-2006 Total = 400 bntoe 10,000 Emerging Markets 7,500 FSU 5,000 OECD 2
Slide 9: Primary energy consumption is strongly correlated to economic development
Primary energy consumption is strongly correlated to economic development Primary energy use (tonnes of oil equiv/capita) 10 China Germany India 8 Japan Korea, Rep. United States 6 Taiwan 4 2 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 GDP/Capita (Jan 2008 Constant US Do
Slide 10: China's annual power output is growing at a rate equivalent to a major European country
China’s annual power output is growing at a rate equivalent to a major European country China’s Growing Power Output (in billion kWh) 3500 Power output added from previous year 426 3000 2500 2000 1500 UK’s total power 1000 output today 500 400 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Page 10
Slide 11: Energy Issues?
Energy Issues? • Power generation and distribution • Energy efficiency and intensity • Urban environment and transport • Emissions
Slide 12: Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East
Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East Existing operational power plants(a) Operational (power plants) – 439 reactors(b) Planned (reactors) – > 94 reactors(b) Under construction (reactors) – 33 reactors(b) Proposed (reactors) – > 222 reactors(b) Notes
Slide 13: Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East
Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East Existing operational power plants and future development of nuclear power reactors(a),(b) Operational (power plants) – 439 reactors(c) Planned (reactors) – > 94 reactors(c) Under construction (reactors) – 33 reac
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Slide 16: Agenda
Agenda • Olympic Dam is a world class and superior resource • Strong nuclear demand growth prospects • Nuclear key to address climate change • Carbon price rewrites nuclear economics • China impact in the uranium industry Page 16
Slide 17: Carbon price rewrites nuclear economics
Carbon price rewrites nuclear economics • Capital cost • O&M cost • • Fuel cost Decommissioning Relative economics at no carbon cost • Nuclear power is competitive with other • Carbon cost Gas generation technologies at current prices Coal Nuclear $/MWh • At carbon cost of $50/ t CO2, the carbon cos
Slide 18: What if China goes nuclear?
What if China goes nuclear? Traditional China 2030 electricity Nuclear China electricity demand 2030 – demand what if 2,054 1,532 2,054 1,532 GW Installed 4% 12% 33% 26% % Nuclear 17 42 150 88 Ktpa U308 75 262 680 346 182 400 262 426 Coal 346 426 Hydro 1,281 251 Gas 251 Uranium 555 676 Other 337 Cas
Slide 19: Impact of carbon emissions
Impact of carbon emissions Global green house gas emissions growth and abatement requirements (GT CO2e*) Growth 2005-2030 Av e = 7.5GT CO2e Cost 100% = 21 GT emission acceptable Approach Impact GT $/tCO2e from China in 2030 (+36% Higher than CCS 2.7 15 RoW 41 41 China 2005 lev el) DSM 2.4 -12 4 Chin
Slide 20: China has been predictable in re-writing capital intensity and delivery
China has been predictable in re-writing capital intensity and delivery China Western Benchmark Alumina refinery 10x 300mw power stations and 40 Months + Shangdong 3500kt/yr alumina refinery – province construction time 10 months East Hope 800kt/yr alumina refinery – 40 Months + Alumina construction
Slide 21: Olympic Dam well positioned to meet energy demand
Olympic Dam well positioned to meet energy demand CONCEPTUAL Concentrating & Mining Smelting Stages Output Hydrometallurgy Cu U 308 Au (ktpa) (ktpa) (kozpa) 0Mtpa 10Mtpa 0 Current 180 4 100 9Mtpa 10Mtpa (500ktpa con) Optimise current 200 4.5 120 1.1 1 Brownfields configuratio n Develo p open pit 350
Slide 22: Mining investment cycle: Escondida case study
Mining investment cycle: Escondida case study Resource Resource Operation Operation and and Definition Definition Feasibility Feasibility additional growth additional growth Grassroots Grassroots && Financing Construction Construction Financing options options Exploration Exploration High price cycl
Slide 23: The world at night
The world at night Astonomy Picture of the Day 2000 November 27 hep anturp pie nasa gow apo strep her
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