Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Corporate Update (November 2008)
19 slides from Bhp's corporate update, Nov 3, 2008
Slide 1: Australian Site Tour Mt Keith Operation
Australian Site Tour Mt Keith Operation Jaco Harwig General Manager 28 October 2008
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
Slide 3: Agenda
Agenda Key Messages Sustainability Business Overview Growth Options
Slide 4: Key messages
Key messages Increasing mining rate to compensate for increased strip ratio Processing plant improvements to treat talc ores Owner operator Growth options
Slide 5: Agenda
Agenda Key Messages Sustainability Business Overview Growth Options
Slide 6: Zero Harm – our focus
Zero Harm – our focus Total Recordable Injury Frequency Rate We are determined to improve our safety (TRIFR) performance through: – Continued implementation of Fatal Risk Control Protocols – An emphasis on field leadership 5 and operational discipline – In-pit monitoring using radars – Pit fleet boa
Slide 7: People
People Current Workforce: Nickel West Staff: 285 15% Female and 85% Male Contractors: 786 12% Female and 88% Male Total Workforce: 1071 3% Indigenous Key Diversity Strategies: Work Readiness Programs Indigenous Participation Strategy A proactive recruitment model based on promoting diversity
Slide 8: Owner operation transition
Owner operation transition Mount Keith Mining Alliance commenced in March 2003 Strategic decision transition to owner operation Modelled on Leinster success Business Benefits – Zero Harm culture – Direct operational control – Reduced turnover – Cost benefit (approx US$7m pa) Completion of transition
Slide 9: Agenda
Agenda Key Messages Sustainability Business Overview Growth Options
Slide 10: Mount Keith mine and concentrator
Mount Keith mine and concentrator Mine Open cut nickel mine Reserves¹ of 164 mt @ 0.57% Ni Mining rate of 38.8mbcm in FY2008 Expanded fleet capacity in FY 2009 Mine life of over 14 years Concentrator Ore throughput capacity ~11.5 mtpa Recovery of 65% Production 30-45 ktpa Ni in concentrate @ ~20% Ni
Slide 11: Mount Keith mine
Mount Keith mine Increase in the fleet size as the pit Mining Rates expands and gets deeper (Million BCM) Accelerated stripping to expose 50 more ore Increased continuity and reliability of ore for the processing plant Blending opportunities to improve 0 the management of head grade, throughput and
Slide 12: Positioned for success
Positioned for success The first Hitachi EX8000 and the build team. Hours Average age of trucks 25,000 23,000 21,000 19,000 FRCP Compliant 793 Haul Truck 17,000 15,000 Slide 12 2006 2007 2008
Slide 13: Mount Keith optimisation – maximising value
Mount Keith optimisation – maximising value Additional 120,000m of drilling data resulted in greater understanding of resource Optimised economic value for business via new mine design Final result: 1. Managed underlap between Stages G and H in FY2011 and 2012; and 2. Strip ratio and ore generation
Slide 14: FY2008 Cost structure
FY2008 Cost structure Cash operating cost (%) Royalties Administration 1% 4% Processing 22% Mining 73% Cost Reduction Initiatives Transition to owner-operator Increase in tyre life from 2,700 hours to 7,000 hours Diesel consumption reduction through use of catalyst and improved equipment operation E
Slide 15: Agenda
Agenda Key Messages Sustainability Business Overview Growth Options
Slide 16: Mount Keith growth options
Mount Keith growth options Talc Redesign Improved recovery of nickel Increased viability of other deposits. Satellite ore bodies Significant growth potential Exploration and definition drilling under way. Ground Control Radar
Slide 17: Talc Redesign – unlocking value
Talc Redesign – unlocking value Talc Ore - before... Talc Ore - Pilot Plant Conventional Process BHP Billiton’s Talc Redesign Creates value through allowing treatment of otherwise difficult to treat ore Increased recovery for Talc/Nickel ores Access to Talc/Nickel ore in stockpiles Makes other resou
Slide 18: Conclusion
Conclusion Increasing mining rate to compensate for increased strip ratio Processing plant improvements to treat talc ores Owner operator Growth options
Slide 19: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: 3 November 2008 By: Jane McAloon Name: Jane McAloon Tit