Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (October 2012)
28 slides from Bhp's investor presentation, Oct 30, 2012
Slide 1: Delivering value through optimisation
Newman For personal use only Change photo Delivering value through optimisation Marcus Randolph Group Executive & Chief Executive Ferrous and Coal 30 October 2012
Slide 2: Disclaimer: Forward looking statements
Disclaimer For personal use only 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
Slide 3: Mineral Resources and Ore Reserves
Disclaimer For personal use only Mineral Resources and Ore Reserves – Iron Ore This presentation includes information on Mineral Resources (inclusive of Ore Reserves) and Ore Reserves. These have been compiled by: P Whitehouse (MAusIMM) – Western Australia Iron Ore (WAIO) who is employed by BHP Bill
Slide 4: Key themes
Key themes For personal use only • Western Australia Iron Ore projects are on schedule and budget • Multiple debottlenecking opportunities present a low cost path significantly beyond 220 mtpa1 • Unlocking latent capacity at Queensland Coal will drive a substantial increase in volumes and reduce cos
Slide 5: Iron Ore: Maximising productivity, efficiency and returns
Newman For personal use only Iron Ore Maximising productivity, efficiency and returns
Slide 6: Our world class resource base is a competitive advantage
Our world class resource base is a competitive advantage For personal use only Pilbara mineral resource more than doubled in six years... within a concentrated footprint WAIO resources and reserves (billion wet tonnes, 100% basis) Port Hedland 25.0 +100 years Finucane Island Resource Nelson Point mi
Slide 7: Pursuing the capital efficient tonne
Pursuing the capital efficient tonne For personal use only • Investment through the cycle and a series WAIO investment1 of successful projects have delivered (US$ billion, BHP Billiton share) significant production growth in Western 8 Australia Iron Ore (WAIO) 6 • Our focus has shifted from the marg
Slide 8: Major projects in execution are progressing well
Major projects in execution are progressing well For personal use only • Major growth projects are on schedule and WAIO production within budget (mtpa, 100% basis) – Port Hedland Inner Harbour Expansion 300 >220 mtpa commissioning scheduled for H2 CY12 Jimblebar Mine Expansion and Debottlenecking –
Slide 9: Prioritising the highest return growth option
Prioritising the highest return growth option For personal use only • Inner Harbour Expansion project on Port Hedland Inner Harbour schedule – first ore loaded during Q1 FY13 from Hunt Point two recently installed shiploaders at Finucane Nelson Point Island – car dumper 5 scheduled to process BHP -
Slide 10: Debottleneck and optimise the supply chain
Debottleneck and optimise the supply chain For personal use only Targeting the release of substantial capacity at low capital intensity Action the • Identify the bottlenecks and bottlenecks increase their throughput + Optimal utilisation of installed Fully utilise • Maximise output by infrastructure
Slide 11: Port: action the bottlenecks
Port: action the bottlenecks For personal use only West Yard SL8 Optimise dumper performance and choke CD4 feed them STK 9 BWR 7 SL7 STK 10 BWR 10 SL3 East Yard CD5 Ensure all low cost, STK 11 SL4 BWR 8 incremental investment STK 12 in shiploader capacity Mooka CD1 has been fully explored SL1 North
Slide 12: Port: fully utilise the assets
Port: fully utilise the assets For personal use only Car dumper 4 throughput Shiploader 1 throughput (mtpa, 90 day moving average) (mtpa, 90 day moving average) 75 45 50 30 25 15 0 0 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 • Car dumper 4 performance improved by • Shiplo
Slide 13: Port: deliver the capital efficient tonne
Port: deliver the capital efficient tonne For personal use only Stockyards Mooka Staging 5 car dumpers Stacker–reclaimers 8 shiploaders Facility Conveyer system 7th and 8th shiploaders recently installed at Nelson Point 5th car dumper installed end CY12 Low cost opportunity to Optimised throughput d
Slide 14: Port: low cost debottlenecking of our conveyors and stockyards
Port: low cost debottlenecking of our conveyors and stockyards For personal use only • Latent capacity in our car dumpers and shiploaders has SL8 West Yard been tested and proven CD4 STK 9 BWR 7 SL7 STK 10 BWR 10 • Complex interconnections are SL3 constraining the system East Yard CD5 STK 11 SL4 BWR
Slide 15: Port: optimising stockyard performance will unlock significant value
Port: optimising stockyard performance will unlock significant value For personal use only Delivering value through optimisation, 30 October 2012 Slide 15
Slide 16: Rail: substantial upside in our existing dual track
Rail: substantial upside in our existing dual track For personal use only • Achieved 145 mtpa with single track Railed tonnage performance infrastructure (mtpa, 90 day moving average) 200 • Single track operation required a large number of passing loops which created inefficiency 180 • Dual track ca
Slide 17: Mines: readily expandable
Mines: readily expandable For personal use only Mobile crushers can unlock 20 mtpa of capacity • Fully utilise rail load out capacity • We are deploying mobile crushers at Whaleback and MAC • Evaluating deployment at Jimblebar and Yarrie Typical mobile secondary crusher Jimblebar built for expansion
Slide 18: Metallurgical Coal: Releasing latent capacity
Hay Point For personal use only Metallurgical Coal Releasing latent capacity
Slide 19: Significant latent capacity at Queensland Coal
Significant latent capacity at Queensland Coal For personal use only • Industrial action and wet weather severely Queensland Coal production capacity1 constrained production at Queensland Coal (mtpa, 100% basis) in FY11 and FY12 80 • Strong recovery during the September 10 66 2012 quarter as BMA pro
Slide 20: Cost reduction activities at BMA are well underway
Cost reduction activities at BMA are well underway For personal use only • Returning volumes to pre-flood and industrial Unit costs1 action levels will drive significant unit cost (indexed to 100 in FY08) improvement 250 BMA BMC • Closure of high cost operations 200 Illawarra – Norwich Park 150 – Gr
Slide 21: Projects are on schedule and budget
Projects are on schedule and budget For personal use only Daunia – first of the new mines Daunia CHPP • 4.5 mtpa greenfield mine development • US$800 million (BHP Billiton share)1 • Initial production CY13 • Project is 68% complete2 Broadmeadow Sustaining Operations • Increases capacity by 0.4 mtpa
Slide 22: Caval Ridge – significant low cost expansion potential
Caval Ridge – significant low cost expansion potential For personal use only • Revised cost US$1.87 billion (BHP Billiton share)1 • Initial production CY14 • Project is 48% complete2 • Phase 1 mining fleet supports 5.5 mtpa operation Caval Ridge site office and accommodation • Preparation plant capa
Slide 23: Securing our infrastructure capacity
Securing our infrastructure capacity For personal use only Hay Point Expansion Phase 3 Reducing storm vulnerability at Hay Point • Reduces storm vulnerability Tropical Cyclone Yasi (Indicative) 16.5m • Increases port capacity from 44 mtpa to Tropical Cyclone Ului 55 mtpa 11.5m • US$1.25 billion (BHP
Slide 24: Improving the predictability of our operations
Newman For personal use only Improving the predictability of our operations
Slide 25: Reducing the variability of our operations
Reducing the variability of our operations For personal use only • Reduced operating variability improves safety, increases productivity and lowers costs • Common metrics and simplified processes ensure we do the basics well – by end CY13 all operations will be using the same SAP system – the applic
Slide 26: Advantages of a low variability operation
Advantages of a low variability operation For personal use only Measurement of the right metrics to drive value Autonomous Caterpillar truck at New Mexico Coal • Percentage of work planned one week in advance (mining and maintenance) • Adherence to schedule on the day (mining and maintenance) • Prod
Slide 27: Key themes
Key themes For personal use only • Western Australia Iron Ore projects are on schedule and budget • Multiple debottlenecking opportunities present a low cost path significantly beyond 220 mtpa1 • Unlocking latent capacity at Queensland Coal will drive a substantial increase in volumes and reduce cos
Slide 28: BHP Billiton: resourcing the future
édl bhpbilliton resourcing the future