Slide 1: BHP Billiton Aluminium Southern Africa
BHP Billiton Aluminium Southern Africa
Slide 2: Southern African smelters
Southern African smelters y Richards Bay
Slide 3: Richards Bay the early days
Richards Bay the early days e! of bhptbilliton
Slide 4: Primary aluminium smelter capacities
Primary aluminium smelter capacities 900 800 HILLSIDE METRIC TONS PER ANNUM 700 600 MOZAL 500 400 300 BAYSIDE 200 100 0 10 20 30 40 50 60 SMELTERS 70 80 90 100 110 120
Slide 5: Hillside Aluminium
HILLSIDE ALUMINIUM A world-class producer of aluminium
Slide 6: Logistics
Logistics mu ni mi lu Al u A mi n iu m m iu in m lu A 25 C o 0 0t 0 ke Electricity 0 a Alumina 1 000 000t
Slide 7: Hillside Overview
Hillside Overview • Capacity: 466 000 tpa design capacity (H1 & H2) – Current actual capacity > 500 000 tpa – Hillside 3, additional 132 000 tpa • Technology: Aluminium Pechiney AP30S • Shareholding: 100% BHP Billiton • 850 MVA Power (approximately 4% of S.A. Consumption) • Currently 1010 people emp
Slide 8: Hillside Aluminium
HILLSIDE ALUMINIUM Health Safety and Environment Organisational Learning Internal Processes Financial Performance
Slide 9: Classified Injury Frequency Rate (CIFR)
Classified Injury Frequency Rate (CIFR) Combined for Hillsiders & Contractors 20 18 16 14 12 Currently 1.43 10 8 6 4 2 0 95.Q4 96.Q2 96.Q4 97.Q2 97.Q4 98.Q2 98.Q4 99.Q2 99.Q4 00.Q2 00.Q4 01.Q2 01.Q4 02.Q2 02.Q4 03.Q2
Slide 10: Environment - Fluoride Emissions (Kg/t)
ENVIRONMENT - Fluoride Emissions (Kg/t) kg F / ton Al 1.4 1.2 1 0.8 0.6 0.4 0.2 0 97 Q1 97 Q3 98 Q1 98 Q3 99 Q1 99 Q3 00 Q1 00 Q3 01 Q1 01 Q3 02 Q1 02 Q3 03 Q1 03 Q3 Actual Target Permit Linear (Actual)
Slide 11: HSE Successes
HSE Successes • ISO 9000:2000 and 14000 - certification. • International recognition for our Sustainability Report. • Implemented the United States Environmental Protection Agency standard of environmental emission monitoring (EPA). • Reduced waste to landfill from 1100 to 450 tons per month.
Slide 12: Hillside Aluminium
HILLSIDE ALUMINIUM Health Safety and Environment Organisational Learning Internal Processes Financial Performance
Slide 13: Employee Productivity
Employee Productivity PRODUCTIVITY - ton/employee 600 500 453 415 429 423 426 430 410 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 FCast
Slide 14: Absenteeism and HIV Aids Disease Management Programme
Absenteeism continues on a downward trend Early success with HIV Aids Disease Management Programme 3.00% HIV Saliva Test Results 2.50% 2.40% 2.30% • 2 tests completed in July 2000 1.90% And July 2002 2.00% 1.80% 1.70% 1.60% • Prevalence rate remained at 13% 1.50% • KZN regional prevalence > 35% 1.00
Slide 15: Hillside Aluminium
HILLSIDE ALUMINIUM Health Safety and Environment Organisational Learning Internal Processes Financial Performance
Slide 16: Optimise Metal Production
Optimise Metal Production LIQUID METAL PRODUCTION - kt Outage 14/9/01 700 600 537 500 504 501 499 504 504 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Plan Fcast
Slide 17: Metal Quality
Metal Quality 1600 ppm Outage 1365 14/9/01 1400 1200 1056 1058 941 955 1000 866 810 800 600 400 200 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Plan Fcast
Slide 18: Hillside Aluminium
HILLSIDE ALUMINIUM Health Safety and Environment Internal Processes Organisational Learning Financial Performance
Slide 19: EBIT at LME $1400/t, Constant Exchange Rate
EBIT @ LME $1400/t, Constant Exchange rate and steady state pot relining $m 300 200 100 2001 2002 2003 2004
Slide 20: Cash Cost - Including sustaining capex
CASH COST – Including sustaining capex ( $/ton) 1200 1000 800 600 400 200 0 1997 1998 1999 2000 2001 2002 2003 2004 FCast Conversion costs Power Alumina
Slide 21: Major cost inputs
Major cost inputs Alumina Alcoa 500 000 tpa Worseley 500 000 tpa Average Cost 12.8% of LME POWER Bayside 350MVA Hillside 850MVA 5 independent high voltage feeds from the grid Bayside 1 out of 2 - 275kv 2 out of 3 - 400kv Price : 16.3% of LME
Slide 22: Value added
Value added Electricity from 8 tons coal converts 2 tons of alumina into 1 ton aluminium
Slide 23: Smelter Power Supply
SMELTER POWER SUPPLY PEGASUS UMFOLOSI AVON INVUBU IMPALA ATHENE GENERATION GRID 400 kV BAYSIDE HILLSIDE 275 kV 132 kV
Slide 24: Power Price: $/kWh
Power Price : $/kWh 0 5 10 15 20 25 30 800 1000 Power contract 1200 1400 1600 LME : $/ton 1800 2000 2200 2400
Slide 25: Cost position
Cost position Cash cost of production at 3 month LME of $1400 (2002 term 1600 ($/to nne ) 1400 Bayside 1200 Hillside 1000 800 600 Mozal 400 0 2 4 6 8 10 12 14 16 18 20 22 24 Source Brook Hunt C apac ity (million tpy)
Slide 26: Further improvement plans
Further improvement plans
Slide 27: Three to five year objectives - Hillside
Three to five year objectives- Hillside • Improve contractor safety performance • Improve metal quality to 700ppm • Pursuing Excellence: - BHP Billiton Aluminium Operating System and Operating Excellence • Successfully commission Potline 3 • Introduce Value Added Product production • Capacity creep
Slide 28: The Expansion at Hillside
The Expansion at Hillside
Slide 29: Spare capacity at Hillside
Spare capacity at Hillside • Paste plant and rodding shop • Conveyors and silos • Infrastructure • Emission permit limits
Slide 30: The Expansion
The Expansion New impoundment dam Half potline, GTC and substation Extension to casthouse Extension to Extension to existing rodded anodes Impoundment storage area dam New bake furnace and FTC
Slide 31: Key aspects of the expansion
Key aspects of the expansion • 132 000 tons of additional capacity (half a potline) • Most likely to be under the budget of $449 million • 18 months to 1st metal (World Record achieved) • Product mix – Horizontal caster – US market • Half line represents best use of existing infrastructure • Impecca
Slide 32: Hillside Expansion Project Key components
Hillside Expansion Project Key components • Experienced Owners Team members from Mozal 1 and Hillside operations • Synergy with Mozal 2 expansion – H3/M2 schedule aligned with optimum 9 months gap • EPCM contract similar to Mozal 2 • Same EPCM contractor Hillside 1/2 and Mozal 1&2 • Same technology
Slide 33: Construction Progress
CONSTRUCTION PROGRESS dd bhptbilliton
Slide 34: Bayside Aluminium
BHP Billiton Aluminium Southern Africa BAYSIDE ALUMINIUM
Slide 35: Bayside Aluminium - Overview
Bayside Aluminium – Overview • Capacity: Liquid Metal (2 Potrooms) – 181 kt • Technology: • Pre-Bake (Potroom A) – 92 kt • Soderberg Paste (Potroom B and C) – 89 kt • Shareholding – 100% BHP Billiton • Electricity: • Demand – 350 MVA (approximately 2% of SA) • 2 Business re-engineering processes und
Slide 36: Bayside Aluminium - Overview
Bayside Aluminium – Overview • State of the art Value Added Casthouse – Capacity 300 kt • Current VAP Products: 250 • Rim Alloy 200 • Rolling Ingot 150 • Extrusion Ingot 100 • Rod 50 • VAP Strategy: - Maximise Casthouse Throughput 0 2000 2001 2002 2003 2004 Fcast Alloys Rolling Ingot Extrusion Ingot
Slide 37: Community Social Investment programme
Community Social Investment programme
Slide 38: Introduction and CSI Policy
Introduction • To date: over R100m invested through assets (buildings, vehicles, employee secondments, etc) and finances to establish the ZCBF Community Park. • The national and international award winning Park has an early learning center, a science center,a career center, functions venues, busines
Slide 39: CSI Program
CSI Program • Focus Areas – Education, Training and Skills Development – Health Care promotion – Capacity Building – Job Creation and Business Opportunity Development – Conservation of Cultural and Environmental Heritage Values – Charity and Welfare Service • Entire CSI Programme outsourced to ZCBF
Slide 40: END
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