Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (December 2015)
20 slides from Bhp's investor day presentation, Dec 2, 2015
Slide 1: Escondida: Enhancing our competitive advantage
Escondida Enhancing our competitive advantage Hilmar Rode Asset President, Escondida Escondida Norte Pit
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: Statement of Mineral Resources and Mineral Inventory Classifications
Statement of Mineral Resources and Mineral Inventory Classifications Mineral Resources The information in this presentation that relates to the FY2015 Mineral Resources (inclusive of Ore Reserves) was first reported by the Company in compliance with the ‘Australasian Code for Reporting of Exploratio
Slide 4: Key themes
Key themes • Our outstanding safety record is being enhanced by an increased focus on vehicle safety • Our transformation program (E3.0) is delivering a step change in productivity – targeting a grade-adjusted 20% reduction in unit cost by end FY171 – targeting 65% improvement in people productivity
Slide 5: A strong safety culture enabling productivity
A strong safety culture enabling productivity • Tragically we lost one of our colleagues in FY15 Safety performance 12 month rolling average TRIF1 per million hours worked • Escondida has one of the lowest TRIFs in the 10 industry at 1.7 8 • Our material safety risk management process 6 focuses on e
Slide 6: Reducing our exposure to material risks
Reducing our exposure to material risks • There have been several fatal accidents on route Trips on route B-475 to Escondida B-475, the 134 km public access road from Trips per day Antofagasta to Escondida 1,200 – average of ~1,100 trips per day in FY15 800 – road conditions can include dust, fog, 4
Slide 7: Upholding our licence to operate
Upholding our licence to operate Environment • Existing water recovery programs and an additional desalination plant are expected to reduce fresh water consumption by >50% from FY18 • Kelar will provide 517 MW of gas-fired power and secure our long-term supply needs in a more sustainable way while p
Slide 8: The world's largest copper mine…
The world’s largest copper mine… • Escondida's ownership – BHP Billiton 57.5%, operator Escondida Norte Pit – Rio Tinto 30% Sulphide – JECO and JECO2 12.5%1 Oxide Leach Leach Pads • The world’s largest copper mine Pads Los Colorados Concentrator – ~1.4 Mtpd total material moved from two pits Escondi
Slide 9: …is becoming the world's best copper mine…
…is becoming the world’s best copper mine… • We have achieved substantial gains since FY141 Escondida workforce Full-time equivalent, ‘000 – embedded >US$700 million in recurring annual 15 productivity benefits 17% total – improved people productivity by 48% 10 supported by a 17% headcount reduction
Slide 10: …with E3.0 driving substantially lower unit costs through scale and efficiency
…with E3.0 driving substantially lower unit costs through scale and efficiency • Targeting a grade adjusted 20% reduction in unit Reducing cost per tonne of material mined cost by end FY171 Index, FY12=100 120 – additional installed capacity – cross-functional collaboration 100 • Since FY14 we have
Slide 11: Efficient, fully integrated infrastructure
Efficient, fully integrated infrastructure ~1.4 Mtpd total material movement Los Colorados, Escondida Laguna Seca and Escondida Pit OGP1 concentrator ~375 ktpd effective Norte Pit plants concentrator capacity Crusher Copper Concentrate Coloso Port Waste Oxide Mixed Ore Sulphide ~3.5 Mtpa of concentr
Slide 12: Mine: moving more material at lower cost
Mine: moving more material at lower cost • We operate two open pits with the largest mining Moving more tonnes per FTE1 at a lower cost… fleet in Chile Index, FY14=100 170 – total material movement of 1.4 Mtpd 135 – 20 electric rope shovels and 172 trucks 100 • Improved equipment productivity has su
Slide 13: Turning water into a strategic advantage
Turning water into a strategic advantage • As we increase concentrator throughput to offset Shifting towards greater use of desalination grade decline, water has become the bottleneck FY14 • Short-term operational improvements have increased water availability and supported higher Fresh water throug
Slide 14: Maximising the value of our resources
Maximising the value of our resources • OGP1 concentrator achieved mechanical OGP1 ramp up is proceeding to plan… completion in May 2015 Throughput, % of capacity 100 – ramp up is ahead of schedule with full capacity expected by June 2016 50 • We now have the largest effective concentrator capacity
Slide 15: Three concentrators will offset grade decline
Three concentrators will offset grade decline • Our optimised mine plan has enabled the Higher throughput offsets grade decline extension of Los Colorados until at least FY301 Mill throughput, Mtpa; Recovery, % Head grade, % Completed ramp First production • Completion of the low-cost LCE project wi
Slide 16: Maintaining cathode volumes through productivity and technology
Maintaining cathode volumes through productivity and technology • We can sustain average cathode production of Oxide leach throughput ~310 ktpa through FY17 despite grade decline Ore stacked, ktpd 60 – stacking 90 ktpd of additional material – improving pad thermodynamics 30 • We have a robust long-
Slide 17: ~1.2 Mtpa average production capacity for a decade
~1.2 Mtpa average production capacity for a decade • We are optimising the mine plan to reduce Achieving stability in our production processes variability in grade and recoveries Payable copper production, kt 1,250 – split shell on pit expansions 1,000 – ore value ranking to optimise material to 750
Slide 18: Unlocking our full potential
Unlocking our full potential • Mineral resource base of ~27 Bt at 0.52% TCu1 Resource enables future growth1,2 could extend our operation to >100 years Bt 6.3 Bt at • Strategic resource availability (water, power, 0.63% TCu capital, logistics, labour) and intensity of use 16 Bt at 0.47% TCu • Techno
Slide 19: Key themes
Key themes • Our outstanding safety record is being enhanced by an increased focus on vehicle safety • Our transformation program (E3.0) is delivering a step change in productivity – targeting a grade-adjusted 20% reduction in unit cost by end FY171 – targeting 65% improvement in people productivity
Slide 20: Ohpbilliton
PY | Ohpbilliton