Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Global Iron Ore & Steel Conference March 2010
19 slides from Bhp's conference presentation, March 2010
Slide 1: Delivering the Iron Ore Growth Program
Replace with a photograph Newman Hub, December 2009 Delivering the Iron Ore Growth Program Ian Ashby President Iron Ore March 2010
Slide 2: Disclaimer
Disclaimer Reliance on Third Party Information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This
Slide 3: 2009 Overview
2009 Overview RGP4 First Ore in the Newman Hub stockyards September 09 Back to Basics focus is delivering results in the areas of Safety, Production and Cost Record production and sales in CY2009 RGP4 completion RGP5 construction RGP6 early funding Newman & Port Hedland Childcare Centres
Slide 4: Record-breaking Chinese and Global Pig Iron Output in January 2010
Record-breaking Chinese and Global Pig Iron Output in January 2010 Pig iron production (Index, H1’08 = 100) 125 China ex-China World 100 75 50 H1 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan CY'08 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 20
Slide 5: Displacement of High Cost China Production
Displacement of High Cost China Production China Imported and Domestic Production Relationship between Economic Capacity and % Share Spot Price in CY2009 Mt Imports 1000 100 100% Imported iron ore 900 Domestic iron ore (62% Fe Equiv) 90 % of Chinese Dom IO capacity economic 800 Imported ore share 80
Slide 6: Iron Ore Market Evolution Continues
Iron Ore Market Evolution Continues Global Imports plus China Domestic (Mt) 1,600 China Captive China LTC Imports 1,400 ROW Seaborne China Domestic Spot 1,200 China Floating Price Imports 1,000 800 600 Global 400 Overall floating ~20% YoY price Spot market 200 Imports close to ~90% YoY 500Mt in 0 20
Slide 7: Risk Management Tools Developing
Risk Management Tools Developing Steel Futures Volumes Since Establishment Transparent and regular pricing allows (Multiple of Total China Steel Production) customers to mitigate risks on short, 20x medium and long term contracts 16x Recent market developments 12x • Increased liquidity in financ
Slide 8: Steel Intensity Per Capita Grows Strongly as a Nation Becomes Wealthier
Steel Intensity Per Capita Grows Strongly as a Nation Becomes Wealthier Industrial development & finished steel consumption growth (kg) China/India steel intensity 1,200 Other country steel intensities Possible path range for China by 2025 South Korea 1,000 800 China 600 today Japan Germany 400 USA
Slide 9: RGP4 Newman Hub Ramping Up
RGP4 Newman Hub Ramping Up RGP4: Newman Hub in operation ahead of schedule December 2009 (+26Mtpa) Shuttle trains arrive with ore from Jimblebar & the SOB’s Crushing and screening completed at the hub Stockpiling and blending ore to specification at the hub Loading trains for Port Hedland with NJV p
Slide 10: System Complexity – Pre RGP4
System Complexity – Pre RGP4 Mines Port Product on Specification Area C Car Dumpers Crushing and Stockpiling Rescreening Ship Fines Screening Loading Lump SL 1 Area C CD 1 Yandi Plant 1 North Yard Fines 1 Plant 1 Fines 2 CD 2 Plant 1 SL 2 Lump Plant 2 South Yard Whaleback CD 3 Jimblebar Plant 2 SL 3
Slide 11: System Simplicity – Post RGP4
System Simplicity – Post RGP4 Mining Hubs Port Product on Specification Area C Car Dumpers Stockpiling Rescreening Ship Fines Loading Lump SL 1 Area C CD 3 Yandi Plant 1 Fines North Yard Lump CD 2 South Yard SL 2 NJV CD 1 Fines CD 1 Plant 2 SL 3 East Yard Lump CD 4 West Yard SL 4 Ian Ashby, Global I
Slide 12: RGP5 New Infrastructure (+50Mtpa)
RGP5 New Infrastructure (+50Mtpa) New infrastructure includes: Mining expansions Yandi Mine Area C Mine Two new Primary / Secondary Sizer Stations De-bottlenecking at Ore Handling Plant 1 New ore handling plant Supporting infrastructure 4 x 250kt blending stockpiles New stacker New rec
Slide 13: RGP5 Mine Expansion Works Underway
RGP5 Mine Expansion Works Underway RGP5: + 50Mtpa to 205Mtpa installed capacity in 2011 RGP5 Yandi reclaimer base delivery, December 09 RGP5 Yandi stockyard construction December 09 Ian Ashby, Global Iron Ore & Steel Conference March 2010 Slide 13
Slide 14: RGP5 Rail Expansion Works Underway
RGP5 Rail Expansion Works Underway RGP5: + 50Mtpa to 205Mtpa installed capacity in 2011 Rail duplication underway Kurrajura to Yandi, December 2009 Bore Creek bridge construction, December 2009 Ian Ashby, Global Iron Ore & Steel Conference March 2010 Slide 14
Slide 15: RGP5 New Port Facilities Under Construction at Harriet Point
RGP5 New Port Facilities Under Construction at Harriet Point RGP5: + 50Mtpa to 205Mtpa installed capacity in 2011 Cutter suction dredging & wharf piling at Harriet Point, BHP Billiton Inner Harbour Berths reclamation areas in the background, December 2009 Finucane Island BHP Billiton Finucane Is. Ut
Slide 16: RGP6 Early Funding Approved
RGP6 Early Funding Approved US$1.93 billion* early expenditure approved in January 2010 RGP6 dredging work underway at Port Hedland Expected to increase installed capacity to 240Mtpa during calendar year 2013 Balance of RGP6 capital will be reviewed during H2 CY2010 Growth studies continued
Slide 17: Delivering the Iron Ore Growth Program and Setting Production Records
Delivering the Iron Ore Growth Program and Setting Production Records US$12B Approved Investment including RGP6 Early Works BHP Billiton WA Iron Ore Production History Long-term growth to (Mt, Year ended June 2000 - 2009) 350Mtpa and beyond under study 300 RGP6 250 +35Mt RGP5 +50Mt 200 RGP4 Area C &
Slide 18: Iron Ore: Unlocking Scale Benefits from a World Class Resource Basin
Iron Ore: Unlocking Scale Benefits from a World Class Resource Basin Exciting new joint venture with Rio Tinto announced on 5 June 2009 Binding agreement to form 50:50 joint venture of Pilbara iron ore assets to leverage benefits of scale finalised early December 2009 [Map of BHP/Rio Pilbara ass
Slide 19: Newman Hub, December 2009
Newman Hub, December 2009 Ian Ashby, Global Iron Ore & Steel Conference March 2010 Slide 19
BHP Billiton — Global Iron Ore & Steel Conference March 2010 on 6ix