Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (April 2004)
25 slides from Bhp's investor presentation, April 2004
Slide 1: BHP Billiton – Latin America
-1- BHP Billiton – Latin America Presentation to Analysts April, 2004
Slide 2: Brazil: Aluminium, Carbon Steel Materials, Development
-2- Brazil Aluminium Carbon Steel Materials Development
Slide 3: Brazil – Introduction
-3- Brazil – Introduction • The pace of economic recovery has moderated; • Population: 178 million (5th labor market conditions weak in the world) • Interest rate in decline (16% • Area: 8,515,000 Km2 p.a.); inflation under control • GDP per capita: US$2,961 • Exports at record levels, • Life expect
Slide 4: Brazil – Macroeconomic Figures
-4- Brazil – Macroeconomic Figures 2002A 2003A 2004F GDP Growth 1.9% - 0.2% 3.5% Inflation rate (IPCA) 12.5% 9.3% 5.3% Exchange rate (end of period) 3.53 2.89 3.10 Interest rate (average) 19.1% 23.2% 14.9% Unemployment (average) 11.7% 12.4% 11.7% Trade balance (US$ Billion) 13.1 24.8 25.4 Foreign Di
Slide 5: Brazil – Country Risk Premium
-5- Brazil – Country Risk Premium Country risk back to 1998 level & Exchange Rate Stable 2400 4.0 Election 2100 concerns 3.5 1800 3.0 1500 2.5 Basi s Point R$/US $ 1200 2.0 550 Basis Points (Apr 13th) 900 1.5 600 1.0 300 0.5 0 0.0 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03
Slide 6: Assets
-6- Assets: MRN Aluminium Carbon Steel Materials ALUMAR PARÁ MARANHÃO S AMARCO (GERMANO) MINAS ESPÍRITO SANTO GERAIS S AMARCO (PONTA UBU) RIO DE JANEIRO VALES UL
Slide 7: Structure
-7- Structure BHP Billiton PLC BHP Billiton Ltd Billiton Aluminium Holdings BV BHP International Finance Corp. Corp. BHP Billiton Metais SA BHP Billiton Brasil Ltda 14.8% 45.49% 50% MRN Valesul ALUMAR Samarco (Incorporated JV) (Incorporated JV) JV) (Unincorporated Unincorporated JV) (Incorporated JV
Slide 8: Revenue and EBIT Contribution (US$ million)
-8- Revenue and EBIT Contribution (US$ million) 2000 / 2001 2001 / 2002 2002 / 2003 Revenue 548 504 616 EBIT 166 136 193
Slide 9: BHP Billiton Brazil’s Mission
-9- BHP Billiton Brazil’s Mission To Add Value to BHP Billiton Businesses in Brazil – Be the custodian of the BHP Billiton Charter with emphasis on HSEC Zero Harm – Active participation in JV Leadership, Business Improvement and Growth – Provide Finance, HR, Legal, IT and Administrative support – Lo
Slide 10: Aluminium CSG (Total Production in ‘000t in fiscal years)
-10- S Smelter Aluminium CSG z Mine (Total Production in ‘000t in fiscal years) z Refinery z Suriname MRNz Sz Alumar Mozal S Hillside SSBayside S Valesul Worsleyz Production ('000 tonnes) 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Aluminium 883 981 992 1,074 1,250 1,300 Alumina 1,878 2,939 3,94
Slide 11: BHP Billiton Aluminium and Alumina Production
-11- BHP Billiton Aluminium and Alumina Production How our portfolio might look in 2010, after harvesting brownfield potential Aluminium Production Alumina Production 1700.0 6200.0 1500.0 5200.0 1300.0 4200.0 1100.0 900.0 3200.0 700.0 2200.0 500.0 1200.0 300.0 200.0 99/00 00/01 01/02 02/03 03/04 04/
Slide 12: MRN
-12- MRN • Bauxite mine located in Pará state, set up in 1974 • Expansion to 16mtpa capacity in 2003 • ISO 14001 and OHSAS 18001 certifications • Reserves of 800 million tonnes
Slide 13: MRN Production Process
-13- MRN Production Process O PERATI O N SEQ U EN CE ST RIPPIN G TAI LLIN G REFO RESTA TIO N EX CAVA TIO N AN D H AU LAG E DI SPO SA L MIN E WA SH IN G CRUSHI NG CRUSHED BA UX ITE WA SH ED BAU X ITE BEN EFI CI AT IO N CAR L OA DI NG RA IL WA Y TRA NSPO RTA TIO N RA I LWA Y WET BA UX I TE DRYIN G D R
Slide 14: Valesul
-14- Valesul • Primary aluminium smelter, capacity 93ktpa • Joint Venture with CVRD, commissioned in 1982 • Equity in 4 hydro power plants – approx. 40% of needs • ISO 9002, ISO 14000 and BS 8800 certification • Focus on VAP (billet & primary alloys)
Slide 15: Alumar
-15- Alumar • Consortium (UJV) with Alcoa, Alcan and Abalco • Comprises: • Alumina refinery – 1.35mtpa (36% BHP Billiton, 54% Alcoa associate companies, 10% Alcan) • Aluminium smelter – 375ktpa (46% BHP Billiton, 54% Alcoa) • ISO 9002, ISO 14001 and OHSAS 18001 certification
Slide 16: Alumar Refinery Expansion
-16- Alumar Refinery Expansion • Refinery debottlenecking from 1.35mtpa to 1.5mtpa approved • Alumar Consortium members studying a further expansion to 3.3mtpa • Decision expected late 2004 with first additional production late 2006 • Estimated unit capital cost of approx. US$400/t capacity and redu
Slide 17: Brazil: Carbon Steel Materials
-17- Brazil Carbon Steel Materials
Slide 18: Samarco
-18- Samarco Americas Europe China Sales breakdown 2003 (100% export market) Other Asia Af rica / Middle East • Joint Venture with CVRD – 26 years of operations • Two industrial facilities linked by the longest iron ore slurry pipeline in the world • Extensive iron ore reserves • 2 Hydroelectric pow
Slide 19: Samarco Expansion
-19- Samarco Expansion • Brown field expansion project pre-feasibility study being carried out • 50% capacity increase: from 14mtpa to 21mtpa • Capital requirement - US$550 million • Decision foreseen around first quarter 2005 and first additional production targeted for third quarter 2007
Slide 20: Brazil: Other Activities
-20- Brazil Other Activities
Slide 21: Exploration and Development Opportunities
-21- Exploration and Development Opportunities Minerals Commodity Region Copper, Silver, Lead & Zinc Pará, Bahia & Maranhão Iron Ore Minas Gerais Bauxite Pará/Amazonas Copper-Nickel Mato Grosso/ Rondônia Petroleum • Acquired Block BM-C-24 located at Campos Basin (off Rio de Janeiro State) in June 20
Slide 22: Suriname: Growth
-22- Suriname Growth
Slide 23: Location
-23- Location ± Nickerie ! ATLANTIC OCEAN Suriname Paramaribo ! Paranam Moengo ! ! ! GUYANA Onverd ach t Alb in a ! Apoera ! GUY ANE Bakhuis Exploration Concession Area SURINAME km 0 20 40 60 80 100
Slide 24: Bakhuis Exploration
-24- Bakhuis Exploration • Commenced a $8.5 million exploration program • Targeting approx. 300 Mt+ bauxite by end 2005 • Hill type bauxite situated in Western Suriname • Historic exploration estimated 300 – 400 Mt • Quality issues with historic data – new exploration under way
Slide 25: Integration (Aug 2003) of BHP Billiton & Alcoa Interests
-25- Integration (Aug 2003) of BHP Billiton & Alcoa Interests • Old BMS − bauxite miner with 45% equity interest in alumina refinery (Suralco operated) – Lelydorp III Mine (BMS −76 %, Suralco − 24%) – Coermotibo Mine (Suralco − 100%) – Mine closures in 2006/7 • New BMS − alumina producer (45% intere