Bhp Group Ltd · ASX:BHP
Bhp — Battery Materials Conference, Shanghai 2018
18 slides from Bhp's conference presentation, Apr 18, 2018
Slide 1: Nickel West – Energising our future
Nickel West – Energising our future Transitioning to a global battery material supplier 助力未来- BHP Nickel West 致力于成为具有全球影响力的电池材料供应商 Eduard Haegel, Asset President Nickel West Battery Materials Conference, Shanghai 18 April 2018 Kwinana Nickel Refinery Western Australia
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or
Slide 3: Nickel West – who are we?
Nickel West – who are we? Nickel West is a fully integrated mine to metal producer of Class 1 refined nickel metal. For almost 50 years, Nickel West has supplied our nickel products to the stainless steel sector. An internal strategic review identified that Nickel West was uniquely positioned to sup
Slide 4: Electric vehicle sales are growing rapidly …
Electric vehicle sales are growing rapidly … Global commitments to transition from ICE gathering pace Global EV annual sales (2015-2030) ‘Low Carbon’ EV sales • >100 of new EV models to be available by the early 2020s (~40% CAGR) • More countries introduce targets to support EV sales • We forecast g
Slide 5: …with China leading the way
…with China leading the way Chinese EV production capacity has almost increased fivefold Electric Vehicles production in three years (‘000 units) China is clearly now the front runner in EVs production: 500 400 • Supportive policy environment 300 – Tax rebate for EVs extended until the end of 2020 2
Slide 6: Nickel demand is expected to grow significantly …
Together with the adoption of nickel rich chemistries, nickel demand is expected to grow significantly … Lithium-ion nickel-rich chemistries offer the lowest cost Li-ion batteries: Comparison of EV range and base metal cost using Tesla Model 3 battery solution: NCA 8.5-1-0.5 battery as reference (km
Slide 7: … just as some observers argue we have entered a prolonged period of undersupply
… just as some observers argue we have entered a prolonged period of undersupply Refined Nickel Market Balance (kt) 250 Forecast 200 150 100 50 0 -50 -100 -150 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Wood Mackenzie, 2018Q1 Nickel fo
Slide 8: This supply gap requires investment in Class 1 refined powder / briquette capacity
This supply gap requires investment in Class 1 refined powder / briquette capacity Nickel powder and briquettes are the most cost effective Relative nickel sulphate conversion costs by major source source for nickel sulphate type (including capital costs) per tonne of Ni metal • Half of the global n
Slide 9: Nickel West is already the world's largest producer of nickel powder and briquettes …
Nickel West is already the world’s largest producer of nickel powder and briquettes … Nickel West has an advantaged position to produce nickel Global Briquette and Powder Production FY17 sulphate product (ktpa) 80 • We are already the largest global producer for briquettes and powder 70 • We have in
Slide 10: … with plans to further expand production leveraging lower cost brownfield options …
with plans to further expand production leveraging lower cost brownfield options … Capital intensity of debottlenecking is a fraction of new build Record Production in FY17 – Aspirations even larger • UBS1 estimate new HPAL refinery capacity would cost ~US$40k/t . Metal Production (kt Ni) • Nickel W
Slide 11: … to meet the anticipated rapid growth in demand for our products from the battery segment
… to meet the anticipated rapid growth in demand for our products from the battery segment Expected increasing sales and demand for the battery segment % of Refinery Sales 100 Forecast 90 80 70 60 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 201
Slide 12: Nickel Sulphate Stage 1 (100kt) continues Nickel West's move downstream…
Nickel Sulphate Stage 1 (100kt) continues Nickel West’s move downstream… Product Feed / Bagging Powder Leach Crystalliser Aeration / Filtration Eduard Haegel: Asset President – Nickel West 18 April 2018 12
Slide 13: … while Stage 2 to 200kt remains a low cost expansion option
… while Stage 2 to 200kt remains a low cost expansion option that may be triggered by market demand Product Feed / Bagging Crystalliser (Stage 2) Powder Leach Crystalliser Aeration / Filtration Powder Leach (Stage 2) Eduard Haegel: Asset President – Nickel West 18 April 2018 13
Slide 14: Significant interest in offtake has prompted the construction of a mini plant
Significant interest in offtake has prompted the construction of a mini plant for early delivery of samples Very high demand has prompted the construction of a sophisticated mini plant to deliver samples early • We are constructing a sophisticated mini plant which is a replica of the larger plant de
Slide 15: Nickel West has the potential to grow its cobalt production
Nickel West has the potential to grow its cobalt production To realise this aspiration we need to… World Cobalt Reserves (million tonnes) 4000 Produce cobalt sulphate at the Kwinana Nickel Refinery 3500 3000 2500 Increase cobalt recovery at the Kalgoorlie Nickel Smelter 2000 1500 1000 Recover cobalt
Slide 16: Nickel West's Cobalt SX plant would, if successful, produce cobalt sulphate
Nickel West’s Cobalt SX plant would, if successful, produce cobalt sulphate from a high temperature ammonia leach Research and development conducted with CSIRO in Perth, Western Australia • Test work program is nearing completion with no fatal flaws. • Pilot plant will be operational in Q2 CY18. • I
Slide 17: Nickel West is well placed to become a globally significant battery material supplier
Nickel West is well placed to become a globally significant battery material supplier Energising the future with innovation and excellence • Nickel West is a fully integrated mine-to-market business with end-to-end control of its supply chain. • We have mineral resources to support the business to a
Slide 18: Slide 18