Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Australian Journal of Mining Global Iron Ore and Steel Forecast Conference 2014
19 slides from Bhp's conference presentation, Mar 11, 2014
Slide 1: ASX cover letter: AJM Global Iron Ore and Steel Forecast Conference
BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1BH UK GPO BOX 86 Tel +44 20 7802 4000 11 March 2014 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 For personal use only Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilli
Slide 2: BHP Billiton Iron Ore Delivering Significant Value (News Release)
NEWS RELEASE For personal use only Release Time IMMEDIATE Date 11 March 2014 BHP BILLITON IRON ORE DELIVERING SIGNIFICANT VALUE BHP Billiton today outlined how its focus on productivity and capital efficient debottlenecking in its iron ore business is delivering value. Speaking at the AJM Global Iro
Slide 3: Media and Investor Relations contacts
Media Relations Investor Relations Australia Australia Emily Perry Tara Dines Tel: +61 3 9609 2800 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 499 249 005 For personal use only email: Emily.Perry@bhpbilliton.com email: Tara.Dines@bhpbilliton.com Fiona Hadley Jodie Phillips Tel: +61 3 96
Slide 4: BHP Billiton Iron Ore: Value through productivity and growth
Newman For personal use only BHP Billiton Iron Ore Value through productivity and growth Jimmy Wilson President, Iron Ore 11 March 2014
Slide 5: Disclaimer: Forward looking statements
Disclaimer For personal use only Forward looking statements This release 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 certa
Slide 6: Key themes
Key themes For personal use only • Strong steel production outlook continues to underpin iron ore demand • Significant additions of low cost supply will flatten the cost curve • China’s environmental policies are leading to a preference for quality iron ore • We continue to grow WAIO1 production, ta
Slide 7: Strong demand growth for the next years
Strong demand growth for the next 10 years For personal use only • A further ~1.2 billion people will urbanise Global crude steel production globally by 2030, with ~240 million in China (million tonnes) • Chinese crude steel production is expected 3,000 to peak at ~1.1 billion tonnes per annum ~2025
Slide 8: Australia has led supply growth in recent years
Australia has led supply growth in recent years For personal use only Annualised shipments of Australian, Brazilian Operation rate of Chinese private iron ore mines and Indian iron ore to China (%) (million tonnes) 600 100 Australian exports to China Brazilian exports to China Indian exports to Chin
Slide 9: Significant low cost supply will enter the market
Significant low cost supply will enter the market For personal use only • Over the next five years supply growth is Incremental growth in seaborne imports and expected to exceed demand growth exports (million tonnes) • The majority of supply growth will be low cost 140 – largely from Australia and B
Slide 10: We are well positioned as the cost curve flattens
We are well positioned as the cost curve flattens For personal use only Cost curve for iron ore fines (US$/t, nominal, CIF China equivalent basis) CY13 CY15 • BHP Billiton will retain a favourable position on the cost curve • Our competitive position is underpinned by the quality of our resource Cos
Slide 11: We will benefit from demand for high quality ores
We will benefit from demand for high quality ores For personal use only • Increasingly stringent pollution controls in Lump premium China are impacting steel producers (USc/dmtu) – new, larger blast furnaces require 35 higher quality raw materials to operate efficiently 30 – sintering emissions redu
Slide 12: Continuing strong production growth at WAIO
Continuing strong production growth at WAIO For personal use only • Record WAIO production of 108 mt1 in WAIO production H1 FY14 (million tonnes, 100% basis) 240 • Full year guidance upgraded to 212 mt1 during the period 160 • Strip ratio has trended higher since FY12 80 and is expected to average ~
Slide 13: Accelerated delivery of the Jimblebar mine
Accelerated delivery of the Jimblebar mine For personal use only • New Jimblebar mine was completed in late CY13 with first production delivered six months ahead of schedule • Relocatable crushers deployed to commission the stockyard and train load out early • First phase approved to 35 mtpa1 with i
Slide 14: Integrated supply chain approach to productivity
Integrated supply chain approach to productivity Mines Rail Port For personal use only Pits Ore Handling Yards Train Load Outs Rail Car dumpers Stockyards Shiploaders & Plants berths Current system constraint Moving to Port Key productivity levers at mines: Key productivity levers at port: • Availab
Slide 15: Unlocking shareholder value through productivity
Unlocking shareholder value through productivity For personal use only • Sustainable operational improvement is the Iron Ore productivity gains2 (US$ billion) highest value adding thing we can do 0.6 • Integrated remote operations centre at WAIO 0.3 is fully operational and adding value 0.0 • Supply
Slide 16: Capital efficient growth of WAIO system capacity
Capital efficient growth of WAIO system capacity For personal use only We can grow system capacity towards 260–270 mtpa without the requirement for an additional mining hub or major port and rail infrastructure Mines Rail Port • The new Jimblebar mine will • Dual track rail can deliver • Five car du
Slide 17: Progressive upgrades to increase port capacity
Progressive upgrades to increase port capacity For personal use only Shiploader replacement project • Replacing two shiploaders at Nelson Point at a cost of US$301 million (BHP Billiton share) • Commissioning scheduled for H2 CY14 • Will increase the reliability of the inner harbour port facilities
Slide 18: Key themes
Key themes For personal use only • Strong steel production outlook continues to underpin iron ore demand • Significant additions of low cost supply will flatten the cost curve • China’s environmental policies are leading to a preference for quality iron ore • We continue to grow WAIO production, tar
Slide 19: BHP Billiton: resourcing the future
édl bhpbilliton resourcing the future