Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (March 2014)
16 slides from Bhp's investor day presentation, Mar 11, 2014
Slide 1: Value through productivity and growth
Newman BHP Billiton Iron Ore Value through productivity and growth Jimmy Wilson President, Iron Ore 11 March 2014 bhpbilliton resourcing the future
Slide 2: Disclaimer
Disclaimer bhpbilliton resourcing the future Forward looking statements This release contains forward looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestm
Slide 3: Key themes
Key themes bhpbilliton resourcing the future Strong steel production outlook continues to underpin iron ore demand Significant additions of low cost supply will flatten the cost curve China’s environmental policies are leading to a preference for quality iron ore We continue to grow WAIO1 production
Slide 4: Strong demand growth for the next years
Strong demand growth for the next 10 years bhpbilliton resourcing the future A further ~1.2 billion people will urbanise globally by 2030, with ~240 million in China Chinese crude steel production is expected to peak at ~1.1 billion tonnes per annum ~2025 Steel production growth in China is expected
Slide 5: Australia has led supply growth in recent years
Australia has led supply growth in recent years bhpbilliton resourcing the future Annualised shipments of Australian, Brazilian and Indian iron ore to China (million tonnes) 600 Australian exports to China 500 Brazilian exports to China Indian exports to China 400 300 200 100 0 Jan 11 Jul 11 Jan 12
Slide 6: Significant low cost supply will enter the market
Significant low cost supply will enter the market bhpbilliton resourcing the future Over the next five years supply growth is expected to exceed demand growth The majority of supply growth will be low cost largely from Australia and Brazil no major African projects expected to be developed by 2018 H
Slide 7: We are well positioned as the cost curve flattens
We are well positioned as the cost curve flattens bhpbilliton resourcing the future Cost curve for iron ore fines (US$/t, nominal, CIF China equivalent basis) CY13 CY15 BHP Billiton will retain a favourable position on the cost curve Our competitive position is underpinned by the quality of our reso
Slide 8: We will benefit from demand for high quality ores
We will benefit from demand for high quality ores bhpbilliton resourcing the future Increasingly stringent pollution controls in China are impacting steel producers new, larger blast furnaces require higher quality raw materials to operate efficiently sintering emissions reduced by increasing lump c
Slide 9: Continuing strong production growth at WAIO
Continuing strong production growth at WAIO bhpbilliton resourcing the future Record WAIO production of 108 mt1 in H1 FY14 Full year guidance upgraded to 212 mt1 during the period Strip ratio has trended higher since FY12 and is expected to average ~1.3 over the next five years higher strip tonnes f
Slide 10: Accelerated delivery of the Jimblebar mine
Accelerated delivery of the Jimblebar mine bhpbilliton resourcing the future New Jimblebar mine was completed in late CY13 with first production delivered six months ahead of schedule Relocatable crushers deployed to commission the stockyard and train load out early First phase approved to 35 mtpa1
Slide 11: Integrated supply chain approach to productivity
Integrated supply chain approach to productivity bhpbilliton resourcing the future Mines Rail Port Pits Ore Handling Plants Yards Train Load Outs Rail Car dumpers Stockyards Shiploaders & berths Current system constraint Moving to Port Key productivity levers at mines: Availability and utilisation o
Slide 12: Unlocking shareholder value through productivity
Unlocking shareholder value through productivity bhpbilliton resourcing the future Sustainable operational improvement is the highest value adding thing we can do Integrated remote operations centre at WAIO is fully operational and adding value Supply chain debottlenecking contributed to a 5 mtpa1 u
Slide 13: Capital efficient growth of WAIO system capacity
Capital efficient growth of WAIO system capacity bhpbilliton resourcing the future We can grow system capacity towards 260–270 mtpa without the requirement for an additional mining hub or major port and rail infrastructure Mines Rail Port The new Jimblebar mine will ramp up to 35 mtpa and take total
Slide 14: Progressive upgrades to increase port capacity
Progressive upgrades to increase port capacity bhpbilliton resourcing the future Shiploader replacement project Replacing two shiploaders at Nelson Point at a cost of US$301 million (BHP Billiton share) Commissioning scheduled for H2 CY14 Will increase the reliability of the inner harbour port facil
Slide 15: Key themes
Key themes bhpbilliton resourcing the future Strong steel production outlook continues to underpin iron ore demand Significant additions of low cost supply will flatten the cost curve China’s environmental policies are leading to a preference for quality iron ore We continue to grow WAIO production,
Slide 16: Signatures
bhpbilliton resourcing the future SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: March 11, 2014 By: /s