Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (December 2015)
17 slides from Bhp's investor day presentation, Dec 3, 2015
Slide 1: Pampa Norte: Unlocking the potential of our orebodies
bhpbilliton Pampa Norte Unlocking the potential of our orebodies Kevin O’Kane Asset President, Pampa Norte Spence
Slide 2: Disclaimer: Forward-looking statements
Disclaimer Forward-looking statements This presentation 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 divestment of certain operations or
Slide 3: Statement of Mineral Resources and Mineral Inventory Classifications
Statement of Mineral Resources and Mineral Inventory Classifications Mineral Resources The information in this presentation that relates to the FY2015 Mineral Resources (inclusive of Ore Reserves) was first reported by the Company in compliance with the ‘Australasian Code for Reporting of Exploratio
Slide 4: Key themes
Key themes • Pampa Norte’s safety performance is amongst the best in the industry • Our productivity focus is delivering a step change in our cost structure – 38% reduction in unit cost expected at Spence in FY17 to US$0.87/lb1 – 27% reduction in unit cost expected at Cerro Colorado in FY17 to US$1.
Slide 5: Health and safety is our first priority
Health and safety is our first priority Strong and sustainable safety track record – significant reduction in TRIF1 over the last decade We are intensifying our efforts to eliminate serious incidents – reinforcing that safety always comes first – improving in-field verification of material and fatal
Slide 6: Growing together with our communities
Growing together with our communities Building on our successful track record of community engagement – community investment of ~US$16 million since FY14 Extensive indigenous community consultation process conducted by Cerro Colorado during recent environmental approval extension – successfully conc
Slide 7: Pampa Norte – Spence and Cerro Colorado
Pampa Norte – Spence and Cerro Colorado Pampa Norte combined the Spence and Cerro Colorado operations into a single asset in CY10 – complementary oxide and secondary sulphide leach operations – allows sharing of best practices and critical skills Contributed 36% of cathode production for the Copper
Slide 8: Our current operations have further upside
Our current operations have further upside Spence and Cerro Colorado are comprised of open pit mines, sulphide and oxide leaching processes and SX-EW1 plants – ~580 ktpd total material movement – 82 trucks operating at a benchmark performance of ~6,000 hours annually1 – dynamic leach pads at both op
Slide 9: Resetting the cost base
Resetting the cost base Spence Unit cost expected to decline 38% to US$0.87/lb in FY171 Focused on reducing our key cost drivers – productivity efficiencies in fuel and power – mechanised pad irrigation lines – ~US$16 million reduction in contractor spend expected in FY16 We have improved people pro
Slide 10: Maximising throughput and recoveries
Maximising throughput and recoveries Spence We are optimising the use of our current infrastructure and equipment – truck utilisation expected to increase >12% to 6,300 hours annually by FY171 – dry plant throughput expected to increase 20% to 56 ktpd by FY161 – US$735 million productivity gains ass
Slide 11: SRO will fully utilise tankhouse capacity
SRO will fully utilise tankhouse capacity Spence Recovery Optimisation (SRO) SRO project expected to offset grade decline and support full utilisation of tankhouse capacity – acceleration of heap leach kinetics and increased utilisation of leach pads – will enable full utilisation of ~200 ktpa tankh
Slide 12: SGO expected to extend mining operations by >50 years
SGO expected to extend mining operations by >50 years Spence Growth Option (SGO) Development of the 2.3 Bt hypogene resource beneath the current mine footprint Competitive capital cost estimate of <US$2.2 billion will support attractive returns1 – construction of a 95 ktpd concentrator with potentia
Slide 13: Optimising the capital efficiency of SGO
Optimising the capital efficiency of SGO Spence Growth Option (SGO) We have reduced the capital estimate by ~US$500 million during pre-feasibility studies – use of larger haul trucks in mining fleet – staged flotation reactors reduce footprint and lower power consumption by ~50% Further capital inte
Slide 14: A lean operation ready to move forward
A lean operation ready to move forward Cerro Colorado Environmental permit extension supports near-term momentum and long-term optionality We have a clear path towards sustainable free cash flow generation at current copper prices – 60% reduction in sustaining capital since FY13 – 27% reduction in u
Slide 15: Retaining attractive optionality
Retaining attractive optionality Cerro Colorado Significant growth optionality through additional supergene and potential hypogene mineralisation – potential hypogene mineralisation could extend the life of the mine beyond FY90 Considering modular, low-capital intensity development options for hypog
Slide 16: Key themes
Key themes Pampa Norte’s safety performance is amongst the best in the industry Our productivity focus is delivering a step change in our cost structure – 38% reduction in unit cost expected at Spence in FY17 to US$0.87/lb1 – 27% reduction in unit cost expected at Cerro Colorado in FY17 to US$1.91/l
Slide 17: bhpbilliton
bhpbilliton 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: December 3, 2015 By: /s/ Rachel Agnew Name: