Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (October 2014)
97 slides from Bhp's investor day presentation, Oct 6, 2014
Slide 1: Newman: Safely growing production while lowering costs
Newman Safely growing production while lowering costs Jimmy Wilson President Iron Ore 6 October 2014 bhpbilliton resourcing the future
Slide 2: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future 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 divestm
Slide 3: Disclaimer: Ore Reserves, Mineral Resources and Exploration Targets
Disclaimer bhpbilliton resourcing the future Ore Reserves, Mineral Resources and Exploration Targets The information in this presentation that relates to the FY2014 Western Australia Iron Ore (WAIO) Ore Reserves, Mineral Resources (inclusive of Ore Reserves), Exploration Targets, and Samarco Ore Res
Slide 4: Key themes
Key themes bhpbilliton resourcing the future Iron Ore will remain a key pillar of a simplified BHP Billiton Growth in low-cost iron ore supply will continue to outpace demand We have the strongest resource position in the Pilbara We value safe and sustainable operations above all else We are targeti
Slide 5: A simpler and more productive organisation
A simpler and more productive organisation bhpbilliton resourcing the future BHP Billiton core portfolio1 Minerals Operated Western Australia Iron Ore Olympic Dam Escondida Pampa Norte Queensland Coal2 NSW Energy Coal Jansen project Petroleum Onshore US Shenzi Angostura Pyrenees Macedon Under review
Slide 6: Iron Ore — a key pillar of BHP Billiton
Iron Ore — a key pillar of BHP Billiton bhpbilliton resourcing the future Our Iron Ore business, comprising Western Australia Iron Ore (WAIO) and Samarco, has delivered exceptional returns over the last five years – 22% of total BHP Billiton production1 – average Underlying EBIT margin2 of 59% – US$
Slide 7: WAIO — our flagship Iron Ore asset
WAIO — our flagship Iron Ore asset bhpbilliton resourcing the future WAIO generated US$53 billion of Underlying EBIT over the last five years at an average Underlying EBIT margin1 of 61% We operate four substantial mining hubs that produce a suite of high-quality products Installed rail infrastructu
Slide 8: Samarco — a world class pellet operation
Samarco — a world class pellet operation bhpbilliton resourcing the future 50:50 joint venture with Vale A long-life, high-margin operation located in Brazil Its high-quality pellets add to the diversity of BHP Billiton’s product portfolio – well positioned to service key demand centres in Europe an
Slide 9: Growth in low-cost iron ore supply will continue to outpace demand
Growth in low-cost iron ore supply will continue to outpace demand bhpbilliton resourcing the future Iron ore is abundant in the Earth’s crust The availability of capital is the primary barrier to entry High prices over the last decade have incentivised new entrants and substantial growth in traditi
Slide 10: We have the strongest resource position in the Pilbara
We have the strongest resource position in the Pilbara bhpbilliton resourcing the future Our Pilbara Mineral Resource has tripled1 in size over the last seven years The scale and quality of our ore bodies and their concentrated geographic footprint underpins our competitive advantage – a low strip r
Slide 11: Our plan will maximise shareholder value
Our plan will maximise shareholder value bhpbilliton resourcing the future Create options for the future Deliver benchmark projects Relentless pursuit of the basics Relentless pursuit of the basics Safe and sustainable operations before all else Valuing our people, communities and the environment to
Slide 12: An experienced management team
An experienced management team bhpbilliton resourcing the future Michiel Hovers Vice President Marketing Brett Swayn Vice President HSE Andrew Carey Vice President Human Resources Randal Barker Vice President Group Legal Julius Matthys Vice President Corporate Affairs Ricardo Escobar Vice President
Slide 13: Safe and sustainable operations above all else
Safe and sustainable operations above all else bhpbilliton resourcing the future Total Recordable Injury Frequency (TRIF) (WAIO, number of recordable injuries per million hours worked) 25 20 15 10 5 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 YTD BHP Billiton Investor briefing: Iron Ore
Slide 14: Our integrated supply chain
Our integrated supply chain bhpbilliton resourcing the future Mines Rail Port Pits Ore handling plants Yards Train load-outs Rail Car dumpers Stockyards Shiploaders & berths Current system constraint Moving to port Key productivity levers at mines: Availability, utilisation and rate of excavators, t
Slide 15: Targeting FOB unit cash costs of less than US$20 per tonne
Targeting FOB unit cash costs of less than US$20 per tonne bhpbilliton resourcing the future As production grows we will maintain a relentless focus on costs - strong early momentum as we reduced unit cash costs1 by 12% in H2 FY14 to US$25.89/t We are targeting unit cash costs1 of less than US$20/t2
Slide 16: Technology is a key productivity enabler
Technology is a key productivity enabler bhpbilliton resourcing the future Our technology agenda underpins the path to 290 Mtpa1 and beyond - disciplined and value-based approach to technology driven by the business strategy Key technology enablers - our fully functioning Integrated Remote Operation
Slide 17: A proven track record of project delivery
A proven track record of project delivery bhpbilliton resourcing the future Over the last decade we invested US$25 billion in the Pilbara As a result we have more than doubled iron ore production in a strong pricing environment WAIO achieved a fourteenth consecutive annual record in FY14 of 225 Mt1
Slide 18: We plan to grow WAIO production by 65 Mtpa at ~US$30 per annual tonne
We plan to grow WAIO production by 65 Mtpa at a capital intensity of ~US$30 per annual tonne bhpbilliton resourcing the future Delivering value from our installed infrastructure1 (Mtpa, 100% basis) 1 Debottleneck inner harbour 2 Fully utilise inner harbour capacity 225 245 270 290 Optimisation Mines
Slide 19: Step to 245 Mtpa – raising mine capacity without fixed plant investment
Step 1 to 290 Mtpa – raising the capacity of our mines without fixed plant investment bhpbilliton resourcing the future WAIO production is expected to increase by 20 Mt to 245 Mt1 in FY15 Beyond FY15 our relentless focus on productivity will deliver volume growth from already installed infrastructur
Slide 20: Step to 290 Mtpa – investing in IHD1 and Jimblebar Phase 2
Step 2 to 290 Mtpa – investing in IHD1 and Jimblebar Phase 2 bhpbilliton resourcing the future The two key components to the second step of growth to 290 Mtpa1 have a low capital cost and offer attractive investment returns Inner Harbour Debottlenecking 1 will deliver ~20 Mtpa1 of incremental port c
Slide 21: Key messages
Key messages bhpbilliton resourcing the future Iron Ore will remain a key pillar of a simplified BHP Billiton Growth in low-cost iron ore supply will continue to outpace demand We have the strongest resource position in the Pilbara We value safe and sustainable operations above all else We are targe
Slide 22: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 23: Iron ore market outlook
Mainline rail Iron ore market outlook Michiel Hovers Vice President Marketing Iron Ore 6 October 2014 bhpbilliton resourcing the future
Slide 24: Key themes
Key themes bhpbilliton resourcing the future China’s steel production growth remains robust despite a rebalancing of the economy The construction and machinery sectors will underpin medium-term growth in Chinese steel demand Increasing scrap availability in China will impact long-term demand for pig
Slide 25: The rebalancing of China's economy is underway
The rebalancing of China’s economy is underway bhpbilliton resourcing the future China’s GDP grew by 7.5% in Q2 CY14 – the government is committed to a growth rate above 7.0% in the near term Solid export demand and an acceleration in government spending have supported growth in recent quarters Prop
Slide 26: China's steel production growth has moderated
China’s steel production growth has moderated bhpbilliton resourcing the future Growth in net exports has underpinned momentum in Chinese steel production in CY14 – net steel exports in July 2014 increased by 48% YoY While Asia remains China’s largest steel trading partner, other key markets are eme
Slide 27: China's steel stock per capita is expected to double
China’s steel stock per capita is expected to double bhpbilliton resourcing the future Despite an expected moderation in the rate of Chinese steel production growth, the absolute increase in production will be substantial – we expect Chinese steel demand to grow by ~2% CAGR to 2030 China’s stock of
Slide 28: China's steel demand is led by the construction and machinery sectors
China’s steel demand is led by the construction and machinery sectors bhpbilliton resourcing the future The construction sector accounts for ~40% of current Chinese steel consumption – continued urbanisation will underpin the construction sector The machinery sector will increase its share of consum
Slide 29: Higher steel intensity of construction and increased mechanisation will support demand
Higher steel intensity of construction and increased mechanisation will support demand bhpbilliton resourcing the future 250 million people in to modern, taller buildings… (floor space to land area ratio1 in Chinese cities) 2.54 2.81 3.07 2006 2009 2012 Construction equipment penetration rate (unit/
Slide 30: Increased scrap availability in China will impact long-term pig iron demand
An increase in scrap availability in China will impact long-term demand for pig iron bhpbilliton resourcing the future China’s scrap usage ratio of ~15% is the lowest among key steel-making countries and reflects low scrap availability Continued economic development and a maturing manufacturing sect
Slide 31: Emerging Asia has significant growth potential
Emerging Asia has significant growth potential bhpbilliton resourcing the future Emerging Asian countries are currently in the initial development phase, with significant potential for further growth in steel intensity per capita – more industrialised countries, such as Thailand and Vietnam, will co
Slide 32: The long-term outlook for global steel production remains robust
The long-term outlook for global steel production remains robust bhpbilliton resourcing the future Global crude steel production to grow at a CAGR between 2.5% and 3.0% to CY30 Global crude steel production to reach ~2.5 billion tonnes by 2030 We expect China’s crude steel production to peak at 1 to
Slide 33: Growth in seaborne iron ore supply will outweigh growth in demand in 2014
Growth in seaborne iron ore supply will outweigh growth in demand in 2014 bhpbilliton resourcing the future China’s iron ore demand from pig iron production remains at record highs but growth rates have moderated Growth in seaborne iron ore supply will exceed demand growth in CY14 – total seaborne s
Slide 34: High-cost iron ore supply is price elastic
High-cost iron ore supply is price elastic bhpbilliton resourcing the future Private Chinese mines have responded to a sharp reduction in prices despite a ~10% reduction in local taxes and fees in some regions – an additional ~50 Mtpa of China’s domestic private iron ore capacity was idled between D
Slide 35: The iron ore cost curve will flatten over time
The iron ore cost curve will flatten over time bhpbilliton resourcing the future Global contestable iron ore demand growth is expected to moderate – ~9% CAGR between 2000 and 2010 – ~3% CAGR forecast between 2010 and 2020 Seaborne supply growth will continue to exceed demand over the medium term – a
Slide 36: A value-adding marketing model
A value-adding, marketing model bhpbilliton resourcing the future Front office Commercial execution Maximise price realisation Customer-specific product placement Technical Marketing Value-in-use maximisation Optimising product placement based on customer needs Maximise upstream resource value Distr
Slide 37: Fleet optimisation has increased port throughput
Fleet optimisation has increased port throughput bhpbilliton resourcing the future Our freight scheduling has been enhanced to increase throughput at Port Hedland – we have optimised the CFR:FOB split to enhance supply chain flexibility Over 40% of voyages per month now use >200,000 DWT1 vessels Gre
Slide 38: The quality of our ore is a competitive advantage
The quality of our ore is a competitive advantage bhpbilliton resourcing the future China is following the global trend towards larger and more efficient blast furnaces – economies of scale and increasing seaborne supply support larger integrated steel mills in coastal areas – large furnaces are fed
Slide 39: Adding another long-life source to our 62% fines product suite
Adding another long-life source to our 62% fines product suite bhpbilliton resourcing the future We deliver low variability products into the 62% Fe and 58% Fe high-grade quality segments that form the base load for many Asian sintering blends BHP Billiton Marketing has successfully introduced the J
Slide 40: Not all Fe units are created equal
Not all Fe units are created equal bhpbilliton resourcing the future We produce high-quality value-in-use ores The value of our resources is elevated by low impurity levels and the production of lump The value of Fe in our Yandi fines achieves a premium relative to 58% indices, in part due to its lo
Slide 41: BHP Billiton continues to lead market innovation
BHP Billiton continues to lead market innovation bhpbilliton resourcing the future All of BHP Billiton’s contracted iron ore production is sold on a floating price basis – our price-of-the-day philosophy underpins world-class contract performance In FY14 our iron ore sales, on average, were linked t
Slide 42: Physical transaction platforms are well accepted
Physical transaction platforms are well accepted bhpbilliton resourcing the future Physical transaction platforms are well accepted by the market and provide an efficient spot trading mechanism globalORE and COREX are two examples of industry-owned (steel mills, miners and traders) platforms – BHP B
Slide 43: Key themes
Key themes bhpbilliton resourcing the future China’s steel production growth remains robust despite a rebalancing of the economy The construction and machinery sectors will underpin medium-term growth in Chinese steel demand Increasing scrap availability in China will impact long-term demand for pig
Slide 44: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 45: Western Australia Iron Ore financial performance
Integrated Remote Operations Centre, Perth Western Australia Iron Ore financial performance Margaret Beck Vice President Finance 6 October 2014 bhpbilliton resourcing the future
Slide 46: WAIO has delivered exceptional returns
WAIO has delivered exceptional returns bhpbilliton resourcing the future Western Australia Iron Ore has delivered exceptional returns over the last five years – 20% of total BHP Billiton production1 – average Underlying EBITDA margin2 of 65% – US$53 billion of Underlying EBIT, representing 43% of th
Slide 47: Successfully managing the factors we control
Successfully managing the factors we control bhpbilliton resourcing the future WAIO achieved a fourteenth consecutive annual production record of 225 Mt1 and exported 223 Mt1 of high-quality product Volume efficiencies reflect an increase in the utilisation of existing infrastructure across the supp
Slide 48: Taking a hard line on costs
Taking a hard line on costs bhpbilliton resourcing the future Our relentless focus on productivity delivered a 12% reduction in unit cash costs1 in H2 FY14 to US$25.89/t We have plans in place that will enable us to drive unit cash costs1 below US$20/t2 in the medium term – reduction in services thr
Slide 49: Our plans are built from the bottom up
Our plans are built from the bottom up bhpbilliton resourcing the future We are systematically targeting cost savings across the supply chain – equipment productivity is reducing demand for new equipment and enabling a reduction in hire gear – supply productivity is reducing external expenditure thr
Slide 50: Lower sustaining capital expenditure is a function of our superior resource base
Lower sustaining capital expenditure is a function of our superior resource base bhpbilliton resourcing the future Our depreciation rate has increased with the completion of major projects and the growth of our business – unit depreciation is not expected to increase post FY15 Over the next five yea
Slide 51: A meaningful contribution to the economy and our communities
A meaningful contribution to the economy and our communities bhpbilliton resourcing the future We contribute to the communities in which we operate by providing skilled employment opportunities, wages, taxes, royalties and community development programs For FY14 we will pay approximately A$5 billion
Slide 52: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 53: Relentless pursuit of the basics
Jimblebar Rail mainline Nelson Point Relentless pursuit of the basics Eduard Haegel Vice President Production Mines Rag Udd Vice President Production Logistics & Infrastructure 6 October 2014 bhpbilliton resourcing the future
Slide 54: Key themes
Key themes bhpbilliton resourcing the future We operate a world-class fully integrated supply chain We safely deliver high-quality product while pursuing the lowest possible unit costs Our move to owner-operator at all mines is complete We have standardised the key components of our mine and rail fl
Slide 55: Mine operations overview
Mine operations overview bhpbilliton resourcing the future Our world-class resource supports four large hubs averaging over 60 Mtpa with capacity to grow Introduction of a single lump product has unlocked greater system capacity We have a centralised fleet management across all mining operations – ~
Slide 56: Jimblebar hub
Jimblebar hub bhpbilliton resourcing the future First ore in September 2013 ~700 employees Four mining pits feed two primary crushers linked to the ore handling plant (OHP) by overland conveyor Jimblebar is running an autonomous haulage project High-grade Brockman ore Infrastructure summary – two pr
Slide 57: Mining Area C hub
Mining Area C hub bhpbilliton resourcing the future First ore in 2003 ~1,050 employees Eight mining pits feed into two fixed OHPs and a relocatable crusher High-grade Marra Mamba and Brockman ore Infrastructure summary – two OHPs – one TLO – fleet of 10 excavators and 65 haul trucks Mining Area C mi
Slide 58: Yandi hub
Yandi hub bhpbilliton resourcing the future First ore in 1991 ~850 employees Eight mining pits feed five primary crushers Yandi is trialing an autonomous drilling program Largest mining hub in the Pilbara1 Channel iron deposit Infrastructure summary – three OHPs – two TLOs – fleet of six excavators,
Slide 59: Newman hub
Newman hub bhpbilliton resourcing the future First ore in 1969 ~1,200 employees Six mining pits feed into the Newman hub Primary crushed ore from Orebodies 18 and 24 delivered to Newman hub utilising shuttle trains and a car dumper facility High-grade Brockman and Marra Mamba ore Infrastructure summ
Slide 60: Rail infrastructure
Rail infrastructure bhpbilliton resourcing the future Mainline over 1,300 km of track which connects all mining hub train load-outs to the Port Hedland inner harbour dual tracked between Yandi junction and the port Mooka staging facility was constructed with five lines of track to enable optimal sch
Slide 61: Port infrastructure
Port infrastructure bhpbilliton resourcing the future Five car dumpers, two with the ability to feed through an underground tunnel from Nelson Point to Finucane Island optimised throughput potential of 55–60 Mtpa per dumper Eight shiploaders (~12,500 tph each), one per berth optimised throughput pot
Slide 62: We value safe and sustainable operations above all else
We value safe and sustainable operations above all else bhpbilliton resourcing the future Field leadership activities (Mine and Logistics & Infrastructure, observations) 20,000 15,000 10,000 ~11× 5,000 0 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 1
Slide 63: We operate a fully integrated supply chain from mine to rail to port
We operate a fully integrated supply chain from mine to rail to port bhpbilliton resourcing the future Integrated Remote Operations Centre Flow Balance Synchron- isation Focus at Mines Enable SL1 utilisation – Target the factors that mines control Product on specification Load times Ore car weights
Slide 64: Transition to owner-operator has unlocked under-utilised mine capacity
Transition to owner-operator has unlocked under-utilised mine capacity bhpbilliton resourcing the future WAIO started the move to owner-operator in September 2011 with the acquisition of HWE Mining subsidiaries – the last of our contractor sites, Orebody 18, transitioned on 1 July 2014 Owner-operato
Slide 65: Focus on availability, utilisation and rate has raised OHP and TLO performance
Relentless focus on availability, utilisation and rate has raised OHP and TLO performance bhpbilliton resourcing the future Availability of mine reclaimers and train load-outs has increased, improving supply chain performance – centralised shutdown management has resulted in a significant reduction
Slide 66: We have standardised the key components of our mining operations
We have standardised the key components of our mining operations bhpbilliton resourcing the future We have standardised systems, processes and equipment across our mining operations – simplified organisational design – uniform mine design – consistent planning processes – simplified operational proc
Slide 67: Standardisation has facilitated a step change in mining performance
Standardisation has facilitated a step change in performance of mining operations bhpbilliton resourcing the future The standardisation of our mining equipment and management systems provides consistent and transparent data for benchmarking The relentless pursuit of benchmark performance involves re
Slide 68: Significant reduction in mining unit costs
Relentless pursuit of the basics has delivered a significant reduction in mining unit costs bhpbilliton resourcing the future Improving safety performance, increasing volumes and a focus on costs are delivering a substantial reduction in mining unit costs – removal of hired mining equipment has redu
Slide 69: Productivity is unlocking significant capacity
Productivity is unlocking significant capacity bhpbilliton resourcing the future We can increase mine output to ~275 Mtpa1 with no additional fixed plant investment Jimblebar Phase 1 will now achieve 45 Mtpa1 – addition of 10 haul trucks and two excavators Unlocking 8 Mtpa1 of processing capacity at
Slide 70: Rail will never be the bottleneck
Rail will never be the bottleneck bhpbilliton resourcing the future Existing double track Never be the bottleneck Optimise & automate Port Hedland Yarrie Double track Yandi Mining Area C Single track Eastern Ridge Newman Jimblebar ~250km Significant below rail investment already installed >260 Mtpa
Slide 71: Focus on availability, utilisation and rate has raised rail performance
Focus on availability, utilisation and rate has raised rail performance bhpbilliton resourcing the future Availability of rail has increased - completion of track ballast remediation project has improved track availability and extended track life longevity - centralised coordination of track mainten
Slide 72: Longer, heavier trains will underpin rail capacity to 290 Mtpa
Longer, heavier trains will underpin an increase in railing capacity to 290 Mtpa and beyond bhpbilliton resourcing the future Modest above rail investment is required to lift overall rail capacity to 290 Mtpa1 A combination of standardisation, longer trains and heavier wagons will increase rail capa
Slide 73: Optimising the flow of ore through the port
Optimising the flow of ore through the port bhpbilliton resourcing the future Inflow Inter-port ore movements Outflow Trains arrive at the right time, with the right product and at the right weight Direct To Ship (DTS) Prioritise flow to maximise use of high rate routes DTS Maximise use of both BWR1
Slide 74: Focus on availability, utilisation and rate has raised port capability
Focus on availability, utilisation and rate has raised port capability bhpbilliton resourcing the future Availability of car dumpers and shiploaders has increased following changes to our maintenance strategy - 50% reduction in electrical delays over the last 18 months Utilisation substantially enha
Slide 75: Replacement of shiploaders at Nelson Point increases port capacity
Replacement of Shiploaders 1 and 2 at Nelson Point further increases port capacity bhpbilliton resourcing the future We are replacing two shiploaders at Nelson Point at a cost of US$300 million1 - loading rates increase by 25% to 12,500 tph - improves reliability Project is on budget and schedule -
Slide 76: IHD1 will lift inner harbour capacity
IHD1 will lift inner harbour capacity from 270 Mtpa to 290 Mtpa bhpbilliton resourcing the future Upgrades to 12 conveyor route system components including drives and belts Replacement of Bucket Wheel Reclaimer 6 Expansion of Lump Rescreening Plant 2 Minor equipment changes to stackers and shiploade
Slide 77: Key themes
bhpbilliton resourcing the future Key themes We operate a world-class fully integrated supply chain We safely deliver high-quality product while pursuing the lowest possible unit costs Our move to owner-operator at all mines is complete We have standardised the key components of our mine and rail fl
Slide 78: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 79: Leveraging our superior resources through productivity
Newman Leveraging our superior resources through productivity bhpbilliton resourcing the future Tony Ottaviano Vice President Strategy, Development & Planning 6 October 2014
Slide 80: Key themes
Key themes bhpbilliton resourcing the future The scale and close proximity of our high-quality resources to our major mining hubs underpins our competitive advantage We have capital-efficient options to sustain and grow these hubs for decades to come Our ore bodies will enable us to maintain our hig
Slide 81: We have the strongest resource position in the Pilbara
We have the strongest resource position in the Pilbara bhpbilliton resourcing the future Our Pilbara Mineral Resource has tripled1 in size during the last seven years - Resources of 23 Bt inclusive of Reserves of 3.7 Bt2 Our current focus is to increase resource definition around existing hubs In th
Slide 82: High resource intensity and proximity to infrastructure is a competitive advantage
High resource intensity and proximity to our infrastructure is a competitive advantage bhpbilliton resourcing the future We operate four large mining hubs within a highly concentrated footprint of 7,752 kilometres squared - almost 3 Mt of Total Resource per square kilometre of live tenure1 - 95% of
Slide 83: The characteristics of our ore bodies support low-cost operations
The characteristics of our ore bodies support low-cost operations bhpbilliton resourcing the future Our world-class ore bodies should enable us to become the lowest-cost supplier of iron ore to China - we optimise our mine plans to maximise our profit margin The majority of our resources are high Fe
Slide 84: Ore body characteristics: strip ratio and beneficiation
The characteristics of our ore bodies support low-cost operations bhpbilliton resourcing the future Our strip ratio is expected to remain stable at an average of 1.3x over the next five years A lower proportion of our resource is below the water table - results in lower capital intensity and operati
Slide 85: Excellence in project delivery
Excellence in project delivery bhpbilliton resourcing the future Over the last decade we completed a series of major investments at WAIO and developed a strong track record of project delivery - Jimblebar delivered first production six months ahead of schedule in FY14 On average, recent projects hav
Slide 86: Capital savings through Standardisation, Modularisation and Replication
Capital savings through Standardisation, Modularisation and Replication bhpbilliton resourcing the future Conveyor components Optimised designs for transfer chutes, take-up, shuttle, high and low level sections selected for all sustaining and debottlenecking projects 30% saving Primary crusher New d
Slide 87: Modularisation underpinned the successful delivery of the Jimblebar project
Modularisation underpinned the successful delivery of the Jimblebar project bhpbilliton resourcing the future Jimblebar delivered first production six months ahead of schedule Employed modular approach with major items fabricated in China and delivered to site for assembly China procurement team ins
Slide 88: We plan to grow WAIO production by 65 Mtpa at ~US$30 per annual tonne
We plan to grow WAIO production by 65 Mtpa at a capital intensity of ~US$30 per annual tonne bhpbilliton resourcing the future Delivering value from our installed infrastructure1 (Mtpa, 100% basis) 1 Debottleneck 2 Fully utilise inner harbour inner harbour capacity 290 270 245 225 Optimisation Futur
Slide 89: Releasing more volume from our installed mine infrastructure
Releasing more volume from our installed mine infrastructure bhpbilliton resourcing the future Low-cost volume growth will be underpinned by - unlocking latent capacity - debottlenecking mine-rail interfaces We can increase mine output to ~275 Mtpa1 with no additional fixed plant investment - Jimble
Slide 90: We can sustain our existing hubs for at least years
We can sustain our existing hubs for at least 30 years bhpbilliton resourcing the future Mining Area C 5km Highway To port Rail Existing OHP Conveyor Existing crusher South Flank Eastern Ridge To port Mining Area C expandable up to 120 Mtpa Newman Whaleback Current or planned Newman expandable up to
Slide 91: Rail will never be the bottleneck
Rail will never be the bottleneck bhpbilliton resourcing the future Existing double track Never be the bottleneck Optimise & automate Productivity improvements Above rail investment Port Hedland Fleet and maintenance Communications based Yarrie standardisation signalling and train control Synchronis
Slide 92: The port will support our capital-efficient growth plans
The port will support our capital-efficient growth plans bhpbilliton resourcing the future We have 240 Mtpa1 of A and B class capacity allocated at Port Hedland Able to utilise latent D class capacity – capacity has been accessed on a number of occasions The port has sufficient capacity on each tide
Slide 93: Debottlenecking initiatives that could unlock additional capacity are under study
Debottlenecking initiatives that could unlock additional capacity are under study bhpbilliton resourcing the future Mooka rail CD4 STK 9 West Yard BWR 7 LRP 2 SL8 marshalling CD5 STK 10 East Yard BWR 10 SL7 yards CD1 STK 11 North Yard BWR 8 SL3 STK 12 South Yard BWR 5 SL4 CD3 STK 5 BWR 6 SL1 CD2 STK
Slide 94: Integrated approach to technology focused on maximising value
Integrated approach to technology focused on maximising value bhpbilliton resourcing the future First wave of productivity improvement driven by process refinements and control - underpinned by 1SAP and the BHP Billiton Operating Model Next wave of productivity improvement will be enabled by the tar
Slide 95: Core technology projects demonstrating early success
Core technology projects demonstrating early success bhpbilliton resourcing the future Autonomy Autonomous trucks Nine autonomous haul trucks in operation at Jimblebar >20 Mt to be hauled autonomously in FY15 Autonomous haul truck fleet to increase to 12 Train automation Load-out automation Automate
Slide 96: Key themes
Key themes bhpbilliton resourcing the future The scale and close proximity of our high-quality resources to our major mining hubs underpins our competitive advantage We have capital-efficient options to sustain and grow these hubs for decades to come Our ore bodies will enable us to maintain our hig
Slide 97: Signatures
bhpbilliton resourcing the future SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: 6 October, 2014 By: /