Slide 1: An outstanding business with tremendous growth opportunities
An outstanding business with tremendous growth opportunities Iron Ore Analyst Site Visit Day 3 Tuesday 30 October – Port Hedland
Slide 2: Important Notices
Important Notices Reliance on third party information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information
Slide 3: Port & Rail
Maximising safety, productivity and value from our integrated business system (mine, rail and port) Port & Rail Mick Evans, Vice President Port & Rail
Slide 4: Port and Rail highlights
Port and Rail highlights • Incident reporting up by 22% and injury rates down by 30% HSEC • Dust and water management plans approved (growth enablers) • Indigenous employment up to 9% • Above budget tonnage on inflow and outflow Operations • Shipping Challenge • Productivity up by 9% • 4% reduction
Slide 5: HSEC – safety trends
HSEC – safety trends Port and Rail Total Recordable Injury Frequency Rate (TRIFR) 29 17.9 11.37 13.03 FY2005 FY2006 FY2007 Jul-07 Aug-07 Sep-07 • Key focus and activities – Fatal risk management – Fit for work / Fit for life – Peer on peer observation programs – Reporting focus BHP Billiton Iron Ore
Slide 6: Supply chain is the integrated system from mine to ship queue
Supply chain is the integrated system that stretches from mine loadout / plant to the ship queue, and all the steps between Managed as an integrated system allowing us to • Successfully introduce of new infrastructure • Identify and manage bottlenecks • Optimise the overall supply chain rather than
Slide 7: Supply chain performance – inflow (railing / dumping)
Supply chain performance – inflow (railing / dumping) Inflow higher than expected and at design over the last 18 months 400 Actual Performance - Non-shutdown days RGP Mean 350 Expected Tonnes per day - thousand tonnes (000's) 300 250 200 150 100 50 0 FY2006 FY2007 FY2008 Forecast • Expansion ramp up
Slide 8: Supply chain performance – shiploading rates
Supply chain performance – shiploading rates Design ramp-ups achieved and exceeded over the last year • Ongoing application of business improvement methodologies has yielded good results and trends 6300 Annual shipped tonnes 104.9 105.5 100 Gross Loading Rate (tonnes per hour) Gross Loading Rate (to
Slide 9: Train operations overview
Train operations overview • Operating philosophy and ‘Pathways’ (despatch plan) designed to optimise system performance • A mix of ‘drumbeat’ and variable despatch to 7 destinations • Train configuration: – 2 rakes = 212 ore cars = 26,500 tonnes of ore, 4 locomotives – 3 rakes = 318 ore cars = 39,75
Slide 10: Operating improvements have increased axle loads
Operating improvements have increased axle loads Axle loads over time 40.0t 37.5t 35.0t 32.5t 28.5t 30.0t Max. wet tonnes 89 96 107 116 126 130 per wagon 1970 1974 1986 1996 1999 2006 BHP Billiton Iron Ore Analyst Site Visit Page 10 28-30 October 2007
Slide 11: Environment & efficiency improvements
Environment & efficiency improvements Litres of diesel Contributing factors per wet metric tonne • Rail / wheel profile 1.45 • Aerodynamic ore cars Fuel Savings • Efficient locomotives • Distributed power • Higher axle load 0.73 • Longer trains 1978 2007 • Driver strategy BHP Billiton Iron Ore Analy
Slide 12: Port Hedland operations overview
Port Hedland operations overview • Newman JV Run of Mine (ROM) processing 4 fully automatic rotary car dumpers and Direct Shipped Ore (DSO) at Nelson 2 tertiary crushing & screening plants Point, DSO at Finucane Island 9 stackers, 6 reclaimers • RGP1 & 2 completed, RGP3 in ramp up, RGP4 development
Slide 13: Port Hedland shipping
Port Hedland shipping • Exit from harbour by 43km dredged channel • Parameters affecting vessel movements include under keel clearance, vessel handling and tides Area of dredging Channel widenin g 50km 40km 30km 20km 10km 0km Minus 10 metres Minus 15 metres Minus 20 metres BHP Billiton Iron Ore Anal
Slide 14: Operating within windows of opportunity: sailing drafts
Operating within windows of opportunity: sailing drafts BHP Billiton Iron Ore Analyst Site Visit Page 14 28-30 October 2007
Slide 15: Our license to operate underpins our capacity to deliver growth
Our license to operate underpins our capacity to deliver growth Carl Binning, Vice President Sustainability Image: Port Headland Arts Precinct
Slide 16: BHP Billiton's approach to sustainability
BHP Billiton’s approach to sustainability BHP Billiton’s commitment to sustainable development underpins our licence to operate Our ability to grow to and sustain 300 Mtpa requires strong: • Community infrastructure • Environmental stewardship • Stakeholder engagement BHP BHP Billiton Billiton Iron
Slide 17: Our key sustainability challenges
Our key sustainability challenges Underpinning our capacity to deliver shareholder value • Community – Community services – health, education, policing – Housing and infrastructure • Environment – Impact mitigation: dust, dewatering, mine-site closure – Biodiversity, water and climate change • Indig
Slide 18: Sustaining our communities
Sustaining our communities Contributing to the provision of core community services • For the year ending June 2007 West Australian Iron Ore paid: – A$1,090M in company tax to the Federal government – A$340M direct iron ore royalty payments to the State – A$12M in various Native Title payments – A$1
Slide 19: Building stronger towns for the next 20 years
Building stronger towns for the next 20 years Community Infrastructure Health • Town planning • New equipment – defibrillators etc • Housing • Staff and specialist support • School upgrades Education • Childcare centres • School upgrade • Airport upgrade • IT Centre Amenity • Literacy teachers • Vis
Slide 20: Environment Stewardship
Environment Stewardship Total Freshwater Consumption WAIO (Megalitres) 20,000 Impact mitigation • Dust 10,000 • Minesite closure 0 FY2003 FY2004 FY2005 FY2006 FY2007 Total Greenhouse Gas Emissions Addressing long term WAIO (kt CO2-e) 1000 strategic issues • Biodiversity • Water 500 • Climate change
Slide 21: Indigenous participation
Indigenous participation Employment – 3% to 9.6% since 2000 • Apprenticeship and traineeship targets • Indirect employment through contractors • Involvement of Indigenous contracting organisations • More Indigenous people to hold senior positions in the Company and act as role models Contracting – 7
Slide 22: Our vision is to integrate our commitment to Indigenous communities into our operations
Our vision is to integrate our commitment to Indigenous communities into our operations • Yarrie mine will be managed and operated by Ngarda Civil and Mining in a landmark contract worth approximately A$300m over five years • Contract for drill pad preparation in the Yandi area recently awarded to C
Slide 23: Growing our business requires strong community leadership
Growth options Project Pipeline Growing our business requires Financial Strength and Discipline The “ BHP Billiton Way” strong community leadership World Class Assets License to Operate People Our leadership position and track record underpins • Our licence to operate • Our demonstrated capacity to
Slide 24: Site Tour: Finucane Island
Site Tour: Finucane Island Jim Harris, Area Manager ADP
Slide 25: Safety: Personal Protective Equipment
Safety: Personal Protective Equipment PPE requirements for visitors • Helmet • Glasses APPROVED APPROVEDSAFETY SAFETYHELMET APPROVED HELMET APPROVEDSAFETY SAFETYGLASSES GLASSES • Approved footwear APPROVED APPROVEDLONG SLEEVED LONG SLEEVEDCOTTON COTTONSHIRT SHIRT • Approved clothing • Gloves on your
Slide 26: End of Day 3
End of Day 3