Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Geological Society of London presentation (December 2011)
31 slides from Bhp's conference presentation, Dec 14, 2011
Slide 1: Mineral Deposits and their Global Strategic Supply
Mineral Deposits and their G Global Strategic S Supply S Andrew Mackenzie Group Executive and Chief Executive Non-Ferrous 14 December 2011
Slide 2: Disclaimer
Disclaimer 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. This
Slide 3: Agenda
Agenda Growing gpprosperity p y for more p people p Everything we need to grow is abundant in the Earth’s crust Ineffective natural resource governance may limit supply Human H ingenuity i it fi finds d new ways tto supply l natural t l resources Andrew Mackenzie, Group Executive and Chief E
Slide 4: Agenda
Agenda Growing gpprosperity p y for more p people p Everything we need to grow is abundant in the Earth’s crust Ineffective natural resource governance may limit supply Human H ingenuity i it fi finds d new ways tto supply l natural t l resources Andrew Mackenzie, Group Executive and Chief E
Slide 5: Population growth
Population growth World population ((million)) 8,000 7,000 6,000 5,000 4 000 4,000 3,000 2,000 , 1,000 0 1700 1750 1800 1850 1900 1950 2000 2050 Year Source: US Census Bureau, UN Statistics. Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 5
Slide 6: Rising living standards
Rising living standards Global GDP per capita ((2005 real US$’000, PPP basis)) 30 Actual Forecast 25 20 15 10 5 0 1750 1800 1850 1900 1950 2000 2050 Year Sources: GDP data for 1700-2000 from De Long,g 1998, "Estimates of World GDP, One Million B.C. - Present" ((Dept p Economics, U.C. Berkeley).y) GD
Slide 7: Long term economic growth despite short term volatility
Long term economic growth despite short y term volatility Global GDP growth rate ((% p per annum)) 6 Developed economies 5 Developing economies 4 3 2 1 0 1900- 1900 1920- 1920 1930- 1930 1940- 1940 1950- 1950 1960- 1960 1970- 1970 1980- 1980 1990- 1990 2000- 2000 2010- 2010 2020- 2020 1920 1930 1940
Slide 8: Chinese GDP is set to grow substantially to 2030
Chinese GDP is set to grow substantially to 2030 Global GDP per capita1 ((2005 real US$’000, PPP basis)) 50 Bubble size = GDP of US$5 trillion (real 2005 PPP) US 40 Australia Canada Japan 30 Eurozone China South US 2030 Korea Japan 1980 20 1980 Chile Russia China India 10 Brazil 2030 South Africa In
Slide 9: Agenda
Agenda Growing gpprosperity p y for more p people p Everything we need to grow is abundant in the Earth’s crust Ineffective natural resource governance may limit supply Human H ingenuity i it fi finds d new ways tto supply l natural t l resources Andrew Mackenzie, Group Executive and Chief E
Slide 10: Commodity intensity evolve with economic development
Commodity intensity evolve with p economic development Demand index1 250 Emerging Developed economies economies Corn and soybean 200 Meat ect c ty Electricity 150 Copper 100 Steel 50 0 5 10 15 20 25 30 35 40 45 50 GDP per capita (2005 real US$’000, PPP basis) Source: World Bank; Brook Hunt; CRU; IIS
Slide 11: Crustal abundance of some key commodities
Crustal abundance of some key commodities Economic value in-situ in large scale mines (parts per million) Precious Metals Base Metals Bulk Commodities 1,000,000 Mn K U Zn Fe Al 100,000 Cu 10,000 b Pb 1,000 Ag 100 Au 10 Range of economic values in-situ in large scale mines 1 0 0.001 0 0.01 0 0.1 1 10
Slide 12: What we know about crustal resources
What we know about crustal resources Mineral Inventory Mi Mineral l Resource R on Mineralisatio xploration Range of Potential Advanced Ex Undiscovered M Mineralisation (Based on Exploration Results) Ore Reserve A Increasing geological knowledge and confidence The range of Potential Mineralisation is
Slide 13: What we will discover about crustal resources
What we will discover about crustal resources Mineral Inventory Mineral Resource Undiscovered Mineralisation Advanced Exploration Range of Potential undiscovered mineralisation Mineralisation (Based on Exploration Results) Ore Reserve Increasing geological knowledge and confidence Increasing geologi
Slide 14: Estimated available iron ore
Estimated available iron ore 70 20 240 120 10 20 105 5 100 Years of g pp y global supply 5 Iron Ore Province BHP Billiton estimates of available iron ore from selected basins assuming material >30% Fe is economic in the future. Around 50% of the current global supply of iron is derived from direct s
Slide 15: Estimated available metallurgical coal
Estimated available metallurgical coal 8 10 2 20 5 100 1 31 5 Years of g global supply pp y Metallurgical coal basins BHP Billiton estimates for available metallurgical coal including hard (HCC), semi-hard (SHCC), semi-soft (SSCC) coking and pulverised coal injection (PCI) qualities. Rates assumed f
Slide 16: Estimated available copper
Estimated available copper 5 5 5 20 5 5 8 100 16 13 55 Years of g global supply pp y 4 Copper province BHP Billiton estimates of copper available from selected provinces. Extrapolations from estimated reserves and resources published by the USGS (2010) with the application of factors to convert in-s
Slide 17: Estimated available potash
Estimated available potash 350 75 20 40 10 80 5 10 15 100 5 Years of g global supply pp y Potash basin BHP Billiton estimated potash available from selected basins applying a depth constraint of 2500m. The assumed conversion of in-situ to product potash varies from 3-15% depending upon knowledge of
Slide 18: Estimated supply
Estimated supply Expressed as years of estimated global supply at current production rates Estimated orebody Estimated available Estimated mine life life supply Iron Ore 75 190 500 Metallurgical Coal 20 160 80 Copper 40 220 175 Potash 285 1670 500 Sources: based on US Geological Survey (2010) for re
Slide 19: Agenda
Agenda Growing gpprosperity p y for more p people p Everything we need to grow is abundant in the Earth’s crust Ineffective natural resource governance may limit supply Human H ingenuity i it fi finds d new ways tto supply l natural t l resources Andrew Mackenzie, Group Executive and Chief E
Slide 20: Resource governance affects prices
Resource governance affects prices Spot Price of Oil US$ p per barrel 120 Price Nominal (US$/barrel) Price Real (US$/barrel Jan 2011) 100 00 80 60 40 20 0 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year Source: 1945-1983 Arabian Light posted at Ras Tanura; 1984-2010 Brent
Slide 21: Resource governance affects inventory
Resource governance affects inventory OPEC Non-OPEC Non OPEC Former Soviet Union 123 67 87 181 176 166 763 832 1029 1989 1999 2009 Year Source: BP Statistical Review of World Energy June 2010. Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 21
Slide 22: Agenda
Agenda Growing gpprosperity p y for more p people p Everything we need to grow is abundant in the Earth’s crust Ineffective natural resource governance may limit supply Human H ingenuity i it fi finds d new ways tto supply l natural t l resources Andrew Mackenzie, Group Executive and Chief E
Slide 23: Discovery technology then,
Discovery technology then, Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 23
Slide 24: …. and now
…. and now Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 24
Slide 25: Technology – extraction
Technology – extraction Copper production Run of mine grade ((million tonnes p per annum)) ((Cu %)) 30 Direct ore 4.5% Cu production Reverberatory furnace Run of Mine grade 4.0% 25 Fl t ti Flotation 3.5% 20 3.0% 2 5% 2.5% 15 Bulk open pit Central Africa Copper Belt peak Acidic leach, solvent mining
Slide 26: Technology - transportation
Technology - transportation Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 26
Slide 27: Technology - metals substitution
Technology - metals substitution high voltage copper cable high voltage aluminium cable steel engine block aluminium engine block Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 27
Slide 28: Recycling a source of secondary supply
Recycling a source of secondary supply Energy saving relative to primary metal production UK recycling rates for metals Zinc Steel Lead Copper Aluminium 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: British Metals Recycling Association. Andrew Mackenzie, Group Executive and Chief Executive Non
Slide 29: Environmental outcomes
Environmental outcomes Direct impacts of mineral supply Indirect impacts of mineral demand Commencing mine rehabilitation after Low carbon emission electricity generation metallurgical coal mining Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous Slide 29
Slide 30: Summary
Summary Growing prosperity for more people Everything we need to grow is abundant in the Earth’s crust Ineffective natural resource governance may limit supply Human ingenuity finds new ways to supply natural resources Global companies have a role to play Andrew Mackenzie, Group Executive
Slide 31: BHP Billiton – resourcing the future
él ohpbilliton resourcing the future
BHP Billiton — Geological Society of London presentation (December 2011) on 6ix