Slide 1: Australian Site Tour - Mt Keith Operation
For personal use only Australian Site Tour Mt Keith Operation Jaco Harwig General Manager 28 October 2008
Slide 2: Important notices
Important notices Reliance on third party information The views expressed here contain infor mation that have been derived from publicly For personal use only available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliab
Slide 3: Agenda
For personal use only Agenda Key Messages Sustainability Business Overview Growth Options Slide 3
Slide 4: Key messages
For personal use only Key messages • Increasing mining rate to compensate for increased strip ratio • Processing plant improvements to treat talc ores • Owner operator • Growth options Slide 4
Slide 5: Agenda
For personal use only Agenda Key Messages Sustainability Business Overview Growth Options Slide 5
Slide 6: Zero Harm – our focus
For personal use only Zero Harm – our focus Total Recordable Injury Frequency Rate (TRIFR) We are determined to im prove our safety performance through: 25 – Continued implementation of Fatal 20 Risk Control Protocols 15 10 – An emphasis on field leadership 5 and operational discipline 0 – In-pit mo
Slide 7: People
For personal use only People Current Workforce: • Nickel West Staff: 285 15% Female and 85% Male • Contractors: 786 12% Female and 88% Male • Total Workforce: 1071 3% Indigenous Key Diversity Strategies: • Work Readiness Programs • Indigenous Participation Strategy • A proactive recruitment model ba
Slide 8: Owner operation transition
Owner operation transition • Mount Keith Mining Alliance commenced For personal use only in March 2003 • Strategic decision transition to owner operation • Modelled on Leinster success • Business Benefits – Zero Harm culture – Direct operational control – Reduced turnover – Cost benefit (approx US$7
Slide 9: Agenda
For personal use only Agenda Key Messages Sustainability Business Overview Growth Options Slide 9
Slide 10: Mount Keith mine and concentrator
For personal use only Mount Keith mine and concentrator Mine • Open cut nickel mine • Reserves¹ of 164 mt @ 0.57% Ni • Mining rate of 38.8mbcm in FY2008 • Expanded fleet capacity in FY 2009 • Mine life of over 14 years Concentrator • Ore throughput capacity ~11.5 mtpa • Recovery of 65% Production •
Slide 11: Mount Keith mine
For personal use only Mount Keith mine • Increase in the fleet size as the pit Mining Rates expands and gets deeper (Million BCM) • Accelerated stripping to expose 50 more ore 40 30 • Increased continuity and reliability 20 of ore for the processing plant 10 • Blending opportunities to improve 0 FY2
Slide 12: Positioned for success
Positioned for success For personal use only The first Hitachi EX8000 and the build team. Hours Average age of trucks 25,000 23,000 21,000 19,000 FRCP Compliant 793 Haul Truck 17,000 15,000 Slide 12 2006 2007 2008
Slide 13: Mount Keith optimisation – maximising value
For personal use only Mount Keith optimisation – maximising value • Additional 120,000m of drilling data resulted in greater understanding of resource • Optimised economic value for business via new mine design • Final result: 1. Managed underlap between Stages G and H in FY2011 and 2012; and 2. Str
Slide 14: FY2008 Cost structure
For personal use only FY2008 Cost structure Cash operating cost (% ) Royalties Cost Reduction Initiatives Administration 1% 4% • Transition to owner-operator Processing • Increase in tyre life from 2,700 22% hours to 7,000 hours • Diesel consumption reduction through use of catalyst and improved equ
Slide 15: Agenda
For personal use only Agenda Key Messages Sustainability Business Overview Growth Options Slide 15
Slide 16: Mount Keith growth options
For personal use only Mount Keith growth options Talc Redesign • Improved recovery of nickel • Increased viability of other deposits. Satellite ore bodies • Significant growth potential • Exploration and definition drilling under way. Ground Control Radar Slide 16
Slide 17: Talc Redesign – unlocking value
For personal use only Talc Redesign – unlocking value Talc Ore - before… Talc Ore - Pilot Plant Conventional Process BHP Billiton’s Talc Redesign • Creates value through allowing treatment of otherwise difficult to treat ore • Increased recovery for Talc/Nickel ores • Access to Talc/Nickel ore in st
Slide 18: Conclusion
For personal use only Conclusion • Increasing mining rate to compensate for increased strip ratio • Processing plant improvements to treat talc ores • Owner operator • Growth options Slide 18
Slide 19: For personal use only
cdl Ohpbilliton sourcing the future