Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (October 2012)
55 slides from Bhp's investor day presentation, Oct 2, 2012
Slide 1: Form 6-K Report of Foreign Private Issuer
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 September 30, 2012 BHP BILLITON LIMITED BHP BILLITON PLC (ABN 49 004 028 077) (REG. NO. 3196209) (Exact name o
Slide 2: Base Metals Briefing and Chilean Site Tour
BHP Billiton Limited BHP Billiton Plc 180 Lonsdale Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1BH UK GPO BOX 86A Tel +44 20 7802 4000 30 September 2012 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 Tel +61 1300 55 47 57 Fax +61 3 9609 4372 bhpbilliton.com bhpbilli
Slide 3: Non-ferrous overview
Base Escondida Non-ferrous Andrew 30 September Metals Mackenzie overview briefing 2012 Chief and Chilean Executive siteNon-ferrous tour
Slide 4: Forward-looking statements disclaimer
Forward Disclaimer future statements state or materially 30 estimates this Non-IFRS herein. This EBIT assess No Nothing Reliance The to BHPthe predictions June offer presentation views presentation that Billiton margin accuracy, financial operational 2012 in looking of on certain and from expressed
Slide 5: Mineral disclaimer
Mineral Disclaimer This (MAusIMM) Resource Exploration America Mining All 2012). employed The the BHP information compilers presentation Billiton & Resources Pinto information by Steel Targets BHP Base Olympic –verify Valley Cerro presented. Conference isincludes reported Billiton Metals (Potential
Slide 6: Table 1 Mineral Resource disclaimer
Table Mineral Disclaimer 1 Resource Measured Indicated classification (100% Inferred Range basis) forMineralisation of Potential each province,BHP where relevant, Billiton are contained Province ResourceinResource Table 1. Resource (Bt) interest (Mt) (Mt) (Mt) Low Mid High % Escondida 4,233 93 1.16%
Slide 7: Chilean site tour program
Chilean Welcome Beck project Escondida Day Pampa BHP 1: 2: 3: Billiton Low Tuesday, Sunday, Monday, Norte hub site and risk, presentation Carlos tour Base presentation safety 30 high 12program October September Mesquita Metals induction return Edgar site Ivan 2012 projects Examining 2012 Basto tour,
Slide 8: Key themes
•Key BHP A Targeting Building Our strong, high themes Billiton longer quality strong experienced a term substantial Base and momentum development Metals uniquely and reduction site well in diversified tour, options our established in30 Base costs September portfolio Metals management business 2012 S
Slide 9: Non-ferrous leadership team
Non-ferrous Strong, Products Philip Montgomery BHP Billiton Protocol experienced Valle leadership Base Stefan Timothy Metals and Buys team Cutt well siteestablished tour, 30 September 2012 Slide 7
Slide 10: A high quality and uniquely diversified portfolio
Silver A Copper Legend Potash Potential high(years) Ratio 100+ quality Resource Mineralisation and uniquely diversified portfolio Offices London SaskatoonMinerals—minimum Note: Jansen Includes mineral producing inventory assets, major life at FY12 projects in production execution andrates specific l
Slide 11: Building strong momentum in Base Metals
0 Building (FY12 150 •Escondida CAGR 50 – F Y11 Total Low Multiple two Excludes low Escondida copper Note: FY12 projects complexity risk, to copper ofproduction strong FY15) +10% low high FY13e Organic production (Escondida risk near return Other toPinto end projects FY15e Uraniumgrowth term Growth
Slide 12: Targeting a substantial reduction in costs
e We •Targeting – business E Cost scondida diluting are will inflation committed development achieve aour substantial costs continues this over toby spend reducing reduction ato larger impact – increasing costs base in costs thein asglobal FY13 substantial operating Effective and latent capital asse
Slide 13: Longer term development options: Jansen
Longer Well – •global BHP A The Two Regulatory Detailed Final Saskatchewan mining major placed Billiton longer shafts cost investment term lease presence front-end curve to that term development approvals Base meet conversions Ministry will in outlook decision Metals inits growing mine support the e
Slide 14: Longer term development options: Olympic Dam
Longer •Project Our BHP An These Following heap alternative investment Billiton economics term studies leach adevelopment Base major will test design decision will Metals program require capital has determine issite options the extensive review, far intour, potential from Adelaide the we 30 imminent
Slide 15: Key themes
•Key BHP A Targeting Building Our strong, high themes Billiton longer quality strong experienced a term substantial Base and momentum development Metals uniquely and reduction site well in diversified tour, options our established in30 Base costs September portfolio Metals management business 2012 S
Slide 16: Escondida: well positioned to deliver low risk copper growth
Well Escondida Peter 30 September positioned Beaven President 2012 to deliver Base lowMetals risk copper growth
Slide 17: Key themes
•Key BHP A Targeting Strong Delivering Our leading themes Billiton confidence valuable extensive performance significant producer low Base longer and risk, inMetals the successful ofin term high unit long Base health, site return cost development term Metals tour, brownfield savings safety, copper o
Slide 18: An established, experienced Base Metals leadership team
An established, Base Peter Alex BHP Billiton Jaques Metals BeavenDevelopment Executive Base experienced Metals Committee site Carlos and tour, diverse Randy 30 September leadership Jones Mesquita 2012 teamSlide 16
Slide 19: Base Metals: committed to copper
Base Committed Copper Well Delivering Operating “Substantial 1. term” BHPBHP Base Billiton Metals Billiton remains Our Metals Strong tomineralisation –Base an systems 2012 a important is particularly operating Metals well Annual and positioned site totalling processes driver and report. attractive t
Slide 20: Geographically diverse Base Metals business
Headquarters Geographically Base Uranium North Pinto Marketing Singapore Pampa Copper—Zinc Antamina—Peru Cerro Copper Escondida—Chile Escondida Execution Santiago—Chile Metals Valley Colorado America Norte—Chile Silver—Lead—Zinc CSG hub Oxide Restart CSG Copper—Uranium operation –diverse and Olympic
Slide 21: A leading copper producer
– Third •A operator leading significant largest copper of producer Escondida, global producer copper the world’s producerlargest (CY11 contained copper production, mt) •copper Copper mine production BHP Billiton growth over the next three years is significant in the context of the global industry Su
Slide 22: Base Metals a significant contributor to BHP Billiton
Base 24 over 8 Significant Headquartered •16% 0 0758,000 Metals—a 25billion Production2 (five – Over US$25 US$20.6 16%year of the people component contributed total major inof average, last billion BHP fivein FY08 of Santiago, five contributor copperof different the Underlying years Billiton net FY0
Slide 23: Strong focus on health, safety, environment and community
Strong Health Safety Environment Cerro •Community Japan BHP Abatement Antamina Monitoring Material Job Field Reduce Focus Escondida Invested Billiton Safety Colorado School leadership performance onenvironmental Risk in reducing improving Fund Foundation Observation curves excess and Base – Antofaga
Slide 24: Safety performance
6 Safety Total (number B 9 3 F 0 HP Billiton Recordable is of a core recordable Base value Injury Metals¹ for injuries Frequency BHP Billiton per million (TRIF)hours worked) 1.Y06 FY07² Excludes FY08² Uranium FY09 CSG.FY10² FY11 FY12 FY13²³ 2. BHPIndicates 3. TRIF fatalities Billiton up until Base o
Slide 25: Strong operating performance
Five Strong •action production Spence associated 1.Recovery Strong BHP year and recovery operating Antaminaaverage with wet inisBase Billiton the ore weather expansion underway notJune grade FY12 performance 2012 shown–and Metalsthe projects atmilling as quarter sitereversal Escondida the over tour,
Slide 26: Base Metals performance overview
Base Margaret 30 September Metals Beck performance 2012 VP Financeoverview
Slide 27: Strong returns and margins
1.Y08 A 150 F •0 EBIT BHP – Escondida the provisional EBIT Over In being high Excludes mine contribution FY12 Billiton’s return FY09 the margin contribution negatively plan; Base last 42% pricing Uranium FY10 onfive and business Underlying capital Metals associated FY11 affected –years (and from aCS
Slide 28: Underlying EBIT variance analysis
Excha Underlying EBIT (FY12 Uncontrollable 8.0 0.1 6.0 6.5 (1.5) (0.1) 4.0 Y11 0.0 2.0 (0.5) Infla 5.0 (0.5) Note: ice¹ Sub (0.1) 3.9 variance Cash versus nge Voluc 0.0 EBIT Non Excludestion FY11, (1.5) outages otal analysis US$ Controllable Uraniumme²CSG. disrupti billion) sts² ash (1.1) sts² ajor
Slide 29: Unit cost pressures
Unit FY12 •200 150 – 50Copper Higher pressure higher impact 182% costs (index, ›Source: 41% Local BHP strip costs of unit industrial lower Fixed affected on Billiton gradelower labour ratio 2000=100) cash driven COCHILCO; Variable action Base at volumes costs at by costs Spence by one-off Escondida
Slide 30: Targeting a substantial reduction in costs
Targeting 1.5 •0.5 250 200 – 150 FY08 BHP A Economies Reversal However, Escondida industrial crushing reduction improvements continued high substantial Billiton Q4 FY09 power FY08 significant of and challenges of action tight FY10 Ore of one-off Base costs study reduction conveying scale FY09 identi
Slide 31: Exploration and capital investment
Exploration Continued •3.0 2.0 – 1.0 FY08 0.0 0.5 1.Exploration Investment Sustaining due overall BHP to FY09 focus reduction Excludes investment BillitonSustaining FY10 capital in expense on growth Uranium Basedownstream FY11 targeted spend peaked into Metals and CSG. FY12 high accelerate isother i
Slide 32: Low risk, high return projects
Low Peter 30 September risk, Beaven highPresident 2012 return projects Base Metals
Slide 33: Delivering low risk brownfield growth
capacity Delivering •Projects (capital ?– US$501m- Two US$250m Antamina Escondida – •FY12 projects Laguna expenditure, completed by Escondida FY13 low 38% Expansion Seca?FY14 US$500m achieved Laguna Orerisk, toFY15 and 130 brownfield US$ increased in ktpd first billion) Debottlenecking Access execut
Slide 34: Valuable longer term development options
Valuable Hypogene Spence •– Antamina Progressing Cannington Escondida exploitation substantial existinglonger SAG project further post resources open-cut pre-feasibility ofcapacity term an OGP1 debottlenecking extensive development studies support of 210 studies hypogene underway additional ktpd opt
Slide 35: Significant increase in resource base
FY08 Significant (mt) 80 cost •– 0.55% Extensive Successful High 95% discoveries 388% of – FY12 approximately increase copper2 quality US$0.001 increase brownfield brownfield exploration converted resource 0ininper total Pampa 1.5 pound exploration contained exploration base into has million Norte r
Slide 36: Focused exploration program
Focused •and 200 BHP Extensive Ramping Diverse More Ongoing central km Billiton than commitment exploration generative up Peru Andean 50,000 Base activity Metals metres greenfield portfolio, activities to ongreenfield asite of number drilling tour, exploration aimed withexploration of 30 aplanned at
Slide 37: Key themes
•Key BHP A Targeting Strong Delivering Our leading themes Billiton confidence valuable extensive performance significant producer low Base longer and risk, inMetals the successful ofin term high unit long Base health, site return cost development term Metals tour, brownfield savings safety, copper o
Slide 38: Our confidence in the long term outlook for copper
OurSeptember Shaun 30 confidence Verner Vice 2012 in the President long term Base outlook Metalsfor Marketing copper
Slide 39: A centralised marketing approach
AMarketing our •defining BHP centralised products, Billiton our volumes is view Base approach from centralised of Metals asset long in FY12 toterm across site market; (contained tour, market commodities and 30 fundamentals September raw metal) materials, providing – 2012 copper from Slide aconcentra
Slide 40: Copper demand drivers
geography construction, applications 3 Copper Demand Europe •Buil Demand growth metals drivers cdemand infrastructure – across consumption China urbanisation floor consumables replacement developing developed tele 20% is is and wide by which driven aintensive space is led power sector are growth is2
Slide 41: China demand driven by development cycle
Demand China driven India 25 15 5 Emerging Copper China Chinese •BHP 0 to GDP (2005 USA 1. elasticity 1.1 1.3 commodities aand Intensity 10 Semi play evolves plateaus 203040semis1 economic BillitonIndia 1950-2011 per real ofJapan fabricated part capita US$’000, per50 Base with intensity copper are l
Slide 42: Long term drivers of urbanisation
(million Long Rural globally 60% 5.0 34% from •400 t200 0 China han Global Urban Rural Per Commodity Chinese billion triples Source: BHP capita 2010 term population urban population population people) from population copper (2030) drivers 1950 Billitonfrom wealth Unitedcity demand 3.6 Base1960 rural
Slide 43: Strong demand growth in Asia
40 Strong 3% 200 Exchange •Asia demand primary India C 0 China Total Primary Rest Despite Y00 CAGR Primary Source: BHP of CY02 semis primary demand world increasing drivers 160 Billiton ICA,over CY04 demand inventories demand the Base CRU;growth will CY06 next secondary expected begrowth Metals Wood
Slide 44: Secondary supply
Secondary only 28 of 24 20 •decade Source: BHP While This Secondary In Chinese Despite product China experienced Billiton is1.6% the Wood offset an collection the life-cycle, supply size supply increasing CAGR Base recycling Mackenzie; byofmodest an isthe Metals from and increasing, (CY00 extension
Slide 45: Substitution risk
(thousand Copper: 2% (wire, •3% 0 Substitution Overall Limited Even Copper Detailed 20Alloy Electric 40 cable Source: BHP at60 ais substitution aimpact Billitonrod ICA;material tonnes) analysis 80 price the motors and tonnage and material Base CRUelectrical ratio inbar of shows high loss tonnage cho
Slide 46: Exchange stocks and Chinese demand
Domestic Exchange 1,000 consumption 500 exchange Dec more – 450 •spot 150 The Exchange Shanghai Stocking China’s 8,000 12% 09 demand prominent historical 10,000 Jun CAGR stocks proportion mine stocks and bonded 10 stocks versus Dec de-stocking Concentrate relationship as and are are USA stocks 10 lo
Slide 47: Short term volatility
(20) Short 80 Refined downstream amplifying •60 u 0 nits The Chinese Refined China Consumers, Feb 09islong term very issupply Novsupply refined the term cyclical short demand positive, traders most 09 demand term from Augmetal active stock expectations, and 10but inventory domestic purchasing trend
Slide 48: Concentrate market transitioning
complex Concentrate transitioning primary towards 98% scarcity •78% 68% The TCRCs Key(2,000) Forecast China Concentrate Concentrate (1,000) global sensitivity Source: remains of smelter aand have more surplus Woodconcentrate availability copper from premium qualities more balanced capacity the relat
Slide 49: Structural supply response
Source: Structural response – •Brownfield H 0 100 Sier 1.This In alesI/II aBHP BHP number addition Konk could Wood from Deep challenges Mina Billitonof lead to Billitonnew Mackenzie. the Tolgoi the Frontie Basetoindustry Basestrong projects the remain Gorda curtailment MetalsKolwe near BHP MetalsGre
Slide 50: Supply-side challenges
0.2 •Supply-side 1980 0.0 At Copper Lower Newthe 1989 discoveries Source: BHP same grades grades 1998 Billiton Wood challenges: time have have 2007 Base have new an declined 2016 technologies Mackenzie, Metalsnot impact grade been 2025 site Q2 decline at onable 2012anHistorical tour, Industry 30and
Slide 51: Resource depletion and supply gap
0 Resource Possible operating Probable •and projects CTherefore, Current Resource Substantial Y10 greenfield Source: BHP CY15 projects projects production depletion expenditure nationalisation, Billiton Woodon CY20 investment capacity average, Base CY25 infers will escalation, will Mackenzie, Metals
Slide 52: Copper supply by region
Europe 6,000 12,000 0 2010 South (mined 18,000 6,000 20102015 Source: BHP 12,000 America Asia 18,000 2015 (mined 12,000 copper, copper 2020 Billiton Woodand 2020 6,000 12,000 copper, supply will copper kt) BaseAustralia 2025 2025 Africa provide 6,000 0 North Mackenzie,supply kt) 2010 Base Metals and
Slide 53: Key themes
•Base BHP A Targeting Building Our strong, high Billiton Metals longer quality strong experienced a key term substantial Base and themes momentum development Metals uniquely and reduction site well in diversified tour, options our established in30 Base costs September portfolio Metals management bus
Slide 54: BHP Billiton resourcing the future
cdl Oohpbilliton resourcing the future
Slide 55: 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: September 30, 2012 By: /s/Jane McAloon Name: Jane McAlo