Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Corporate Update (May 2013)
20 slides from Bhp's corporate update, May 30, 2013
Slide 1: BMA overview
BMA BMA overview Stephen Dumble Asset President BMA 30 May 2013
Slide 2: Disclaimer: Forward looking statements
Disclaimer Forward looking statements This presentation 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 divestment of certain operations or
Slide 3: Disclaimer: Metallurgical Coal Resources
Disclaimer Metallurgical Coal Resources This presentation includes information on Metallurgical Coal Resources (inclusive of Coal Reserves). Metallurgical Coal Resources are compiled by: R Macpherson (MAIG). This is based on Metallurgical Coal Resource information in the BHP Billiton 2012 Annual Rep
Slide 4: Program
Program Day 1: Wednesday, 29 May 2013 BHP Billiton Coal overview Dean Dalla Valle Metallurgical coal market outlook Vicky Binns Metallurgical coal financial performance Gideon Oberholzer Metallurgical coal projects Phil Hynes Hay Point overview Stephen Dumble Hay Point site visit Day 2: Thursday, 30
Slide 5: Key themes
Key themes • A capable management team with deep operational and commercial expertise • Continued improvement in our HSEC performance • Unparalleled resource position in the world‟s premier coal basin • Our unique infrastructure underpins our competitive advantage • Strong recent recovery in product
Slide 6: Operationally experienced leadership team
Operationally experienced leadership team Asset President Head of Finance Head of Projects Head of Business Stephen Dumble Gerhard Ziems Marco Pires Development Geoff Streeton Head of Production – Head of Production – Head of Resource, Head of Technology Mining Rail, Port, Infrastructure Planning an
Slide 7: Relentless focus on keeping our people safe
Relentless focus on keeping our people safe BMA Total Recordable Injury Frequency (TRIF, 12 month moving average) 16 TRIF Fatality 12 8 4 0 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Queensland Coal site tour, 30 May 2013 Slide 7
Slide 8: Investing to build strong relationships with our local communities
Investing to build strong relationships with our local communities E-reefs partnership Rescue Helicopter Partnership BMA Kidspace Mackay CQU Indigenous Chair Moranbah District Support Services Shave for a Cure Delivering Affordable Housing Local Buying Program Queensland Coal site tour, 30 May 2013
Slide 9: The Bowen Basin is the premier metallurgical coal basin
The Bowen Basin is the premier metallurgical coal basin • Large coal resources support long mine lives • Predominately high quality hard coking coal • Flat topography, favourable geology and thick coal seams are conducive to efficient mining operations • Established infrastructure with relatively sh
Slide 10: Our resource, people and infrastructure underpin our competitive advantage
Our resource, people and infrastructure underpin our competitive advantage • We are the largest private employer in Abbot Point BMA operations Central Queensland with ~10,000 Bowen BMC operations employees and contractors Under construction Mine Port Rail • We have seven mines in operation with Coll
Slide 11: BMA is currently operating at supply chain capacity
BMA is currently operating at supply chain capacity • Industrial action and wet weather severely BMA production capacity1 constrained production in FY11 and FY12 (million tonnes per annum, 100% basis) 80 • Strong recovery in production following conclusion of the BMA enterprise agreement in October
Slide 12: We are better prepared to respond to future heavy rainfall events
We are better prepared to respond to future heavy rainfall events • We experienced significant water accumulation Goonyella Riverside pumps – from record wet seasons in FY10, FY11 and FY12 discharge capacity 6870 litres/second • In response, we implemented a comprehensive program of work – A$100 mil
Slide 13: We will improve productivity by targeting the bottlenecks
We will improve productivity by targeting the bottlenecks • We have a clear understanding of our installed BMA 797 truck fleet targeted improvement capacity, the performance benchmarks and the (hours/month, index, FY13e = 100) bottlenecks 150 • Pre-strip remains the system bottleneck 100 – it is the
Slide 14: A performance based culture will drive greater productivity
A performance based culture will drive greater productivity • We are driving improvement with a “Lean” based approach – extensive use of visual performance metrics – important metrics are monitored from operations to crew level – short interval control and reporting, allows early intervention – work
Slide 15: We continue to "plan the work and work the plan"
We continue to “plan the work and work the plan” • Planned work is more efficient and drives Work management performance greater accountability (%) 100 • Our systems are driving an increased focus on planning to improve equipment availability and labour efficiency Target 80 • We have noted a signifi
Slide 16: Our bottom-up approach will reset our cost base
Our bottom-up approach will reset our cost base • Cost reviews have been completed for all BMA operations • We have set clear targets to rebase costs • Our cost reduction focus stretches across the operations – mining in the right area and at the lowest cost – full visibility of capacity, maximise p
Slide 17: Leveraging technology to deliver value for our shareholders
Leveraging technology to deliver value for our shareholders • Longwall Top Coal Caving at Broadmeadow Longwall top coal caving shield – first installation in Queensland – expect to lift recoveries from ~60% to 90% in the Goonyella Middle Seam – increases production rates with design capacity of over
Slide 18: Providing operational flexibility and increased employee choice
Providing operational flexibility and increased employee choice • A new three year BMA Enterprise Bargaining Agreement was signed in October 2012 – agreement covers seven BMA mines – enables BMA to more effectively run its business – removed constraints and lowered ancillary costs – provides flexibi
Slide 19: Key themes
Key themes • A capable management team with deep operational and commercial expertise • Continued improvement in our HSEC performance • Unparalleled resource position in the world‟s premier coal basin • Our unique infrastructure underpins our competitive advantage • Strong recent recovery in product
Slide 20: bhpbilliton
édl bhpbilliton resourcing the future