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Bhp — BHP Billiton — Diggers and Dealers Mining Forum 2009

18 slides from Bhp's conference presentation, Aug 5, 2009

  1. Slide 1: Western Australia Iron Ore

    Conveyors Conveyersatatthe theNewman NewmanHub, Hub,June July 2009 2009 Western Australia Iron Ore Ian Ashby President Iron Ore 5 August 2009

  2. Slide 2: Important Notices

    Important Notices Reliance on Third Party Information The views expressed here contain information that have 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 informatio

  3. Slide 3: Today's Discussion

    Today’s Discussion ƒ Safety ƒ Production JV ƒ Market ƒ Performance ƒ Growth Ian Ashby, President Iron Ore, 5 August 2009 Slide 3

  4. Slide 4: Our Safety Performance

    Our Safety Performance ƒ Poor safety performance in FY2009 with five separate and unrelated fatal accidents ƒ Challenging time for the business and our people ƒ Extensive internal reviews of our systems ƒ Separate independent expert review (Section 45) ƒ Working closely with the State Government on

  5. Slide 5: Injury Frequency Rates FY2005-FY2009

    Injury Frequency Rates FY2005-FY2009 Western Australia Iron Ore Injury Frequency Rates 20 18 16 14 12 Total Recordable (TRIFR) 10 8 6 4 Lost Time (LTIFR) 2 0 Jul 2005 Jan 2006 Jul 2006 Jan 2007 Jul 2007 Jan 2008 Jul 2008 Jan 2009 Fatality Occurred Ian Ashby, President Iron Ore, 5 August 2009 Slide 5

  6. Slide 6: Safety Actions

    Safety Actions ƒ BHP Billiton Catastrophic Risk Management process being implemented across Western Australia Iron Ore operations ƒ Redesigned Traffic Management System to physically separate heavy and light vehicles ƒ Strengthening Fatigue Management to prevent excess working hours ƒ Reducing site

  7. Slide 7: Unlocking Scale Benefits from a World Class Resource Basin

    Unlocking Scale Benefits from a World Class Resource Basin ƒ Exciting new production joint venture with Rio Tinto announced on 5 June ƒ In principle agreement to form 50:50 production joint venture of Pilbara iron ore assets to leverage benefits of scale Expected benefits include: ƒ Substantial and

  8. Slide 8: ROW Steel Recovering Slower Than China

    ROW Steel Recovering Slower Than China Annualised quarterly crude steel production and China’s share of global output (Mt, %) 1400 50% 1200 45% 1000 40% 800 600 35% 400 30% 200 0 25% 2005 2006 2007 2008 2009 China ex-China China share Source: World Steel Association Ian Ashby, President Iron Ore, 5

  9. Slide 9: China Seaborne Iron Ore Imports Increasing

    China Seaborne Iron Ore Imports Increasing Port stockpiles being consumed Imports gaining market share China Imported Iron Ore Port Stocks China Iron Ore Imports and China Domestic (Mt, days; 25 major ports) Concentrate Production (Mt) 120 700 80% Domestic Iron Ore^ Imported Iron Ore 600 Imported Or

  10. Slide 10: Market Imbalances Remain

    Market Imbalances Remain Historical iron ore prices delivered to China Differential between China spot prices and (US$/dmt) Australia benchmark + freight (US$/dmt) 200 80% 180 China Spot 60% 160 Spot now trading 25% above Australia benchmark delivered 140 40% Brazil 120 benchmark + freight 20% 100 0

  11. Slide 11: Stable Sales Despite Market

    Stable Sales Despite Market WA Iron Ore Production & Shipments (Mt, 100%) 60 BHP Billiton Western Australia Iron Ore Production 50 40 Shipments RGP3 installed capacity 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2008 FY2009 Source: BHP Billiton Ian Ashby, President Iron Ore, 5 August 2009 Slide 11

  12. Slide 12: Long Term Fundamentals are Solid

    Long Term Fundamentals are Solid Seaborne Iron Ore Demand (Mt) 2,000 1,800 ƒ Short to medium term uncertainty will always exist 1,600 1,400 ƒ Steel is a critical input as nations industrialise and 1,200 urbanise 1,000 ƒ China and other emerging 800 economies are expected to continue to drive long te

  13. Slide 13: Iron Ore Growth Projects Well Underway

    Iron Ore Growth Projects Well Underway Western Australia Iron Ore Growth Path (mtpa, 100% basis) 145 Mtpa 350 Mtpa Planning Construction Completed 50 Mtpa 26 Mtpa 129 Mtpa Installed Capacity RGP4 RGP5 Studies (a) (a) All studies and estimated capacity remain under review until they are approved for

  14. Slide 14: RGP4 Hub Pre-Commissioning Underway

    RGP4 Hub Pre-Commissioning Underway Newman Hub RGP4 Construction works - July 2009 Ian Ashby, President Iron Ore, 5 August 2009 Slide 14

  15. Slide 15: RGP5 Works Underway

    RGP5 Works Underway Yandi Tertiary Crushing Plant Foundations Leonardo Da Vinci dredging in Berth Pocket 1 First RGP5 wharf pile being driven in Turnout installation at Bing South Ian Ashby, President Iron Ore, 5 August 2009 Slide 15

  16. Slide 16: In Conclusion

    In Conclusion Safety ƒ Iron Ore is working hard to improve its safety performance Market ƒ Short term market impacted by destocking and restocking effects ƒ Long term fundamentals are solid ƒ Proactive participation in industry evolution towards a transparent and regular market clearing price Perfor

  17. Slide 17: BHP Billiton celebrated 40th Anniversary of Western Australia Iron Ore operations

    BHP Billiton recently celebrated the 40th Anniversary of Western Australia Iron Ore operations in the Pilbara Above: First Ship Loading Ceremony, April 1969 Ian Ashby, President Iron Ore, 5 August 2009 Slide 17

  18. Slide 18: Ian Ashby, President Iron Ore, 5 August 2009 Slide 18

    Ian Ashby, President Iron Ore, 5 August 2009 Slide 18

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