Bhp Group Ltd · ASX:BHP
Bhp — Technical Presentation (November 2024)
29 slides from Bhp's technical presentation, Nov 19, 2024
Slide 1: 2024 Chilean copper site tour: Escondida
2024 Chilean copper site tour: Escondida Presentation & speech 19 November 2024
Slide 2: Alejandro Tapia introduction
BHP INVESTOR Alejandro Tapia Thank you for joining us at Escondida, we really appreciate you making the long journey to be with us here today. As you know, I’m Alejandro Tapia, Asset President for Escondida – a position I’ve held for the last 16 months. I’m an engineer and have worked in the mining
Slide 3: Disclaimer
BHP INVESTOR Please note our disclaimer which you are all broadly familiar with. 2
Slide 4: Escondida leadership team
BHP INVESTOR My team and I are excited to have you here. Let me introduce briefly my team: • Jose Quiñones, GM Mine Operations • Olga Alfaro, GM Concentrator Operations • Lisset Hormazabal, GM Cathodes Operations • Yerko Fuentes, GM Non-Process Infrastructure • Romina Maggiolo, Head of BHP Operating
Slide 5: Escondida overview: the world's largest copper mine
BHP INVESTOR Let me tell you a bit about Escondida – the world’s largest and, in my opinion at least, best copper mine. As you can see from this picture we are currently sitting to the east of the main pit and oxide leach pads. Our second Norte pit is located in the north, with the Los Colorados con
Slide 6: Safety performance
BHP INVESTOR We will show you our operations later today. But first, let me touch on safety. Brandon explained on Monday about our approach to safety – based on culture, systems and controls – to help ensure our workforce return home safe, every day. This approach has delivered strong results, with
Slide 7: Social value and renewable power
BHP INVESTOR Besides safety, we are also very focused on creating social value. With a remaining life of many decades – as we stand today – strong, win-win relationships with our stakeholders are critical to our success. I want to highlight a few of our accomplishments. Escondida and Spence were som
Slide 8: Workforce diversity
BHP INVESTOR Escondida’s employee workforce has been gender balanced – meaning at least 40% women and 40% men – since our last fiscal year and over 2.5 times the industry average in Chile which, as you can see here, is only 21%. This accomplishment has been helped by our “Mineras” initiative, which
Slide 9: Community partnerships and Sesiones Heuma program
BHP INVESTOR We also actively support our licence to operate through the creation of sustainable partnerships with our key stakeholders around the region. One example I would highlight here is our Sesiones Heuma program, which provides training in programming, autonomy and other technological skills
Slide 10: Renewable energy and desalinated water
BHP INVESTOR As I mentioned before, Escondida and Spence were some of the first operations in Chile to be powered by 100% renewable electricity, starting in 2022. We were also early adopters of desalinated water. Over the past 15 years, we have invested more than US$4 billion in desalination capacit
Slide 11: Integrated operation from mine to port
BHP INVESTOR Today, Escondida is a large, fully integrated operation. We operate two open pit mines and truck our ore to either our leaching or concentrator facilities. Once processed, we transport our cathode via rail to the Port of Antofagasta – just over 200 kilometres away – and our concentrate
Slide 12: Remaining resource and deposits
BHP INVESTOR Despite having produced over 33 Mt of copper over its life, Escondida still has 26 billion tonnes of remaining resource at a high average grade of 0.53% copper. Today, we’re mining the Escondida and Escondida Norte deposits marked on the map here – but we also have the Pampa Escondida d
Slide 13: High-grade zones and pushbacks PL1 and PL2
BHP INVESTOR In the nearer term, exploiting the high-grade areas of Escondida and Escondida Norte pits are key to delivering on our production guidance and our growth plans into the 2030s. You can see on the cross section on the right of this slide, the high-grade zones within the main Escondida ore
Slide 14: PL1 geotechnical challenges
BHP INVESTOR We’re currently mining PL1, before moving into PL2 as you heard in detail yesterday. And while PL1 has good grades, it does have some challenging geotechnical characteristics. For those of your that aren’t geotechnical engineers like me, this basically means the rock is more faulted and
Slide 15: Current flow sheet and growth areas
BHP INVESTOR As we look forward, our integrated value chain and reliable operating performance provides a strong base for the growth plans we covered in detail yesterday. This slide shows our current flow sheet, with the orange circles indicating where this growth will come from across both our conc
Slide 16: Mining equipment fleet
BHP INVESTOR In our mines today, we currently operate around 190 ultra class trucks, 18 electric shovels and 79 pieces of ancillary equipment. This is one of the largest fleets of equipment in Chile and includes three of the world’s largest Komatsu electric shovels, an impressive piece of equipment
Slide 17: Autonomous truck rollout
BHP INVESTOR We have begun rolling out autonomous trucks in a staged approach beginning with the Escondida Norte pit, where, today, almost one third of our fleet is operating that way. And this is delivering great results across all the key metrics we track. We’ve had zero safety events during our f
Slide 18: Material movement and truck productivity
BHP INVESTOR Truck performance is critical to us, as we move huge amounts of material – and increasing this further is key to unlocking the growth plans you heard from the team yesterday. Today, we move approximately 400 Mtpa – equivalent to around 170 thousand Olympic size swimming pools. This is a
Slide 19: Concentrators
BHP INVESTOR Moving down our flow sheet we will start with our concentrators – the key processing route for Escondida, producing around 80% of our copper. Today, we have three concentrators running. As you can see from the graph on the bottom left, the oldest of these, Los Colorados, has been operat
Slide 20: Cathode operations
BHP INVESTOR At our cathode operations, we run two different solvent extraction (or SX) processes at our leach pads – one for oxide; and one for low-grade sulphide. The copper from this process is then extracted at our electrowinning (or EW) facilities. Both processes have been in operation at Escon
Slide 21: Port infrastructure and concentrate marketing
BHP INVESTOR Now turning to Coloso that you visited yesterday, our port infrastructure also can be expanded to add capacity for our growth plans. Our copper concentrate filters and shiploader in the photo here have a capacity of around 12 ktpd and 18 ktpd respectively. Another advantage of Escondida
Slide 22: Operational excellence and BHP Operating System
BHP INVESTOR Now we have been through the value chain, I want to spend some time on a topic that is a big focus for us all here at Escondida – operational excellence. All of this is underpinned, of course, by being good at what we do – day in, day out. As Brandon said yesterday, we want to be safer,
Slide 23: Technology and AI
BHP INVESTOR We are also well placed – due to BHP’s global scale and strong digital foundation – to make the most of the opportunities afforded by technology and artificial intelligence. And we are starting to see benefits. For example, the application of AI at our Escondida processing plants has he
Slide 24: Production outlook and grade decline
BHP INVESTOR Through various cycles, Escondida has delivered strong performance. And this is set to continue. We delivered strong results in FY24, and expect to deliver even higher production this year, while continuing to deliver strong cost control. As you’re all well aware, beyond this we are fac
Slide 25: EBITDA margins, costs and ROCE
BHP INVESTOR Our operational delivery also drives strong and consistent financial returns. As you can see on the top left chart, through the copper cycles we have delivered high EBITDA margins of over 60% and an impressive average of around US$5 billion of EBITDA over the last five years. Our relent
Slide 26: Escondida history since 1990
BHP INVESTOR So, stepping back, it is worth appreciating the journey Escondida has been on since 1990. As you can see on this chart, when we started operations over three decades ago, our grade was 2.5 times where it is today. Since then, grade has gone one direction, but through a series of success
Slide 27: Wrap up and plans for the day
BHP INVESTOR With that, I’ll wrap up. Thanks very much again for making the effort to join us here today. It is a pleasure for us to host you here. In terms of plans for today, you’ll get a chance to visit the Escondida pit, our Laguna Seca concentrators and stop at one of our cathodes facilities as
Slide 28: Notes and references
BHP 1. Side 4 Based onthe Escondda Ore Reserves and Minera Resources at 30 June 2024 in 100% tems reported compliance wth he JORC Code 2 Side, 10 For turner iormaton on Ore Reserves and Mineral Resouces, refer to sides 29 and 30. 32 _‘Side 7: Ve define gender belince at a minimum 40 par eant women a
Slide 29: Competent Person Statement: Copper Mineral Resources
BHP Competent Person Statement: Copper Mineral Resources Copper Mineral Resources Competent Person Statement Ihe infermaton inthis shde relates to Copper Mineral Resources as at 30 June 2024. Mineral Resources are inclusive of Ore Reserves and is based on information compiled by Melo Cortes as Compe