Slide 1: Spence site tour
Spence Pampa p Norte Spence site tour Ivan Arriagada President Pampa Norte 2 October 2012
Slide 2: Disclaimer
Disclaimer Forward looking statements This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events, conditions circumstances and the future financial performance of BHP Billiton conditions, Billiton, inc
Slide 3: Disclaimer: Exploration Targets and Mineral Resources
Disclaimer Exploration Targets and Mineral Resources This presentation includes information on Exploration Targets (Potential Mineralisation) and Mineral Resources. Mineral Resources are compiled by: J Céspedes (MAusIMM) – Spence. Spence This is based on Mineral Resource information in the BHP Billi
Slide 4: Chilean site tour program
Chilean site tour program Day 1: Sunday, 30 September 2012 Welcome and safety induction Brendan Harris Non-ferrous overview Andrew Mackenzie Well positioned to deliver low risk copper growth Peter Beaven Base Metals performance overview Margaret Beck Low risk, high return projects Peter Beaven Our c
Slide 5: Spence site tour
Spence site tour Time Description 07 30 – 09.45 07.30 09 45 C Coach h ttransfer f from f Terrado T d Suites S it to t Spence S 09.45 – 10.00 Welcome and morning tea 10.00 – 11.45 Pampa Norte presentation 11.45 – 12.00 Spence safety induction 12.00 – 14.30 Spence site tour 14 30 – 15.30 14.30 15 30 L
Slide 6: Visitor safety induction
Visitor safety induction • Stay with your escort at all times – especially if an emergency occurs • You will be advised when to wear – a reflective vest and safety helmet – safety glasses (fit over prescription glasses) – steel toe boots – gloves – hearing protection • Use handrails when on stairs •
Slide 7: Key themes
Key themes • Pampa Norte – a successful combination of Spence and Cerro Colorado • HSEC performance amongst the best in the industry • High return projects recently completed • Targeting unit cost savings in FY13 • Spence Hypogene project could substantially increase the life of mine BHP Billiton Ba
Slide 8: Pampa Norte combination a major success
Pampa Norte combination a major success • Combined Spence and Cerro Colorado operations into a single asset – complementary oxide and secondary sulphide leach operations – allows sharing of best practices and critical skills • 29%1 of Base Metals copper production in FY12 • Grade adjusted production
Slide 9: Pampa Norte leadership team
Pampa Norte leadership team Well established and experienced President Pampa Norte Ivan Arriagada General General Head of Head of Manager Manager Projects Finance Spence Cerro Colorado Alejandro Tapia Pablo Valverde Luis Sanchez Hernan Rincon Head of Head of Health, Head of Head of Human Resource Sa
Slide 10: Committed to health, safety, environment and the community
Committed to health, safety, environment and the community Heallth y • Acid Mist: upgrade of acid mist containment equipment • Silica: dust emission suppression programs • Noise: upgrade of mining equipment cabin conditions Safety • Focus on top 5 risks per operating area • Critical controls impleme
Slide 11: Safety performance amongst the best in the industry
Safety performance amongst the best in the industry y • Focus on Material Safety Risk and Critical Total Recordable Injury Frequency (TRIF) Controls (number of recordable injuries per million hours worked) 3 • Ensure that performance standards for critical controls are designed and operated effectiv
Slide 12: Community engagement is a priority
Community engagement is a priority • Over 10 different communities are in our area of influence, mostly y around Cerro Colorado • We are focused on – community engagement, communication and participation – ensuring our projects and operations are understood (workshops and indigenous consultation) –
Slide 13: Spence: operations overview
Spence: operations overview BHP Billiton Base Metals site tour, 2 October 2012 Slide 13
Slide 14: Spence: operations overview
Spence: operations overview Mine p • Material moved: 302 ktpd – 36 trucks, 4 shovels & 4 front end loaders Plant • Throughput increased from 56 ktpd to 61 ktpd • Dry area – 1 primary crusher – 2 secondary crushers – 5 tertiary crushers Bucket wheel excavator Bucket-wheel • Agglomeration – 2 agglomer
Slide 15: Improved recoveries, record copper production
Improved recoveries, record copper production • Record production of 180 kt in FY12 Copper production Head grade (kt) (%) • The trend in head grade remains consistent 200 2.0 with the mine plan • New mobile equipment has allowed the north side of the orebody y to be mined – mitigates the impact of g
Slide 16: High return projects recently completed
High return projects recently completed Spence North Phase Access Material mined (mt) • Provides earlier access to higher grade ore 120 – total investment of US$132 million – completed in June 2012 • 18 additional pieces of earthmoving equipment (trucks, shovel, drills) 80 • The camp facilities and
Slide 17: Cost pressures partially offset by higher grades
Cost pressures partially offset by higher grades • Spence unit cash costs increased by 22% in Spence cost breakdown FY12 (FY12) – higher strip ratios following commencement of the North Phase Other 28% Contractors 24% Access project – higher hi h prices i ffor power, ffuel, l acid id and d explosive
Slide 18: Targeting unit cost savings in FY13
Targeting unit cost savings in FY13 • Cost saving opportunities have been Spence unit cash costs identified (index, FY08=100) 250 – an absence of one-off costs that affected profitability in FY12 (plant maintenance) 200 – economies of scale with completion of the North Phase Access project and Spenc
Slide 19: A successful brownfield exploration program
A successful brownfield exploration program • A successful exploration program Pampa Norte exploration (thousand meters drilled) – declaration of a significant hypogene 100 (chalcopyrite) resource › 2.4 bt @ 0.43% copper and 117 ppm molybdenum1 80 • Brownfield exploration is focused on identifying m
Slide 20: Significant new resource underpins another development option
Significant new resource underpins another development p option p • Spence Hypogene project is currently in pre- feasibility • Potential to exploit the hypogene resource via development of a 95 ktpd concentrator with longer term expansion potential • Key facilities and infrastructure required – conc
Slide 21: Spence Hypogene project could substantially increase the life of mine
Spence Hypogene project could substantially increase the life of mine • Could extend the mine life by over 50 years Spence, Chile • Would result in the conversion of large hypogene resources into reserves • No pre-stripping would be required to access the hypogene mineralisation • Low technical risk
Slide 22: Key themes
Key themes • Pampa Norte – a successful combination of Spence and Cerro Colorado • HSEC performance amongst the best in the industry • High return projects recently completed • Targeting unit cost savings in FY13 • Spence Hypogene project could substantially increase the life of mine BHP Billiton Ba
Slide 23: BHP Billiton: resourcing the future
él ohpbilliton resourcing the future