Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — The 5th Annual Global Iron Ore and Steel Forecast Conference 2002
30 slides from Bhp's conference presentation, Mar 1, 2002
Slide 1: The 5th Annual Global Iron Ore and Steel Forecast Conference
The 5th Annual Global Iron Ore and Steel Forecast Conference 28th February and 1 March 2002 Iron Ore bhpbilliton
Slide 2: Iron Ore: Area of BHP Billiton Operations
Port Hedland eat aiwer’ WIGHWAY To Broome” —— ome, Nimingarra Yarrie Marble Bar , Ore body »; 23/25 ; Mt Whaleback @ “ Jimblebar Iron Ore Area of BHP Billiton Operations cdl bhpbilliton
Slide 3: Resource and Infrastructure Base
Resource and Infrastructure Base • Mt Whaleback – shipped more than 900Mt of high quality Brockman ore since 1969 • Yandi Fines – high VIU (value-in-use) sees growing market demand • Yandi Lump – high quality pisolite lump product Future Resources • 1400 Mt of low Phos Brockman resources still avail
Slide 4: Drivers of Change
Drivers of Change • Pressure on prices for our major products • Increased competition • Increased demand for high value-in-use ore products • The new direction of the Company Iron Ore
Slide 5: The Changing Market: Asian Market Growth
The Changing Market: Asian Market Growth Asia's Iron Ore Imports 300 Other Asia China 250 Taiwan Korea Japan 200 Other Asia China Million WMT Taiwan 150 Korea 100 Japan 50 - 92 81 82 86 89 90 91 93 94 95 98 80 83 84 85 87 88 96 97 99 00 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20
Slide 6: The Changing Market: New Product Development
The Changing Market: New Product Development BHP Billiton Iron Ore Sales 80 • Whaleback mine development & expansion 70 underpinned by Japanese Yandi demand Million Wet Metric Tons 60 Newman • Stagnant growth during oil 50 Goldsworthy crisis and recessions in mid 70’s-80’s. 40 • Yandi development in
Slide 7: The Changing Market: Future Growth Strategy
The Changing Market: Future Growth Strategy • Incremental expansion of Newman and Yandi mines • Develop new, high Value-in-Use products to provide steelmakers with competitive advantage: l Yandi Lump l MAC TM Lump and Fines l Products & Capacity Expansion (PACE) – Expanding rail and port capacity to
Slide 8: The Changing Market: Industry Consolidation
The Changing Market: Industry Consolidation Merger Arcelor, Usinor, Arbed & Aceralia (ARCELOR) Thyssen-Krupp Merger NKK/KSC (JFE) British Steel/ Steel Consolidation Hoogovens to Corus NSC POSCO Bao alliances NSC/Usinor Fuji/Yawata merger EU/NorthAm Privatisation of NKK/KSC/TKS alliance to Nippon Ste
Slide 9: Iron Ore
sdf Iron Ore bhpbilliton
Slide 10: Business Performance – Iron Ore
Progress: Business Performance – Iron Ore Cash Costs per tonne shipped against the cash costs incurred in YEM98 100% 100% 96% 90% 88% 83% 79% 80% 70% 60% YEM 98 YEM 99 YEJ 00 YEJ 01 YEJ02 YTD Iron Ore
Slide 11: Operating Excellence – What is it?
Progress: Operating Excellence – What is it? Networks Business Improvement Six Sigma Plus • Meeting business imperatives Common • Reducing implementation times • Accelerating opportunities for improvement Language • Ability to implement proven • Sustainable & systematic improvement practices and sol
Slide 12: Operating Excellence: Gross Loading Rate - Nelson Point
Progress: Operating Excellence Gross Loading Rate - Nelson Point 6000 5500 Tonnes per Hour 5096 5000 4500 4000 3500 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun YTD YEJ00 average YEJ01 average YEJ02 actual Avg Iron Ore
Slide 13: Operating Excellence: Gross Loading Rate - Finucane Island
Progress: Operating Excellence Gross Loading Rate - Finucane Island 3000 Tonnes per Hour 2500 2282 2000 1500 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun YTD YEJ00 average YEJ01 average YEJ02 actual Avg Iron Ore
Slide 14: Operating Excellence: Monthly Fuel Consumption
Progress: Operating Excellence Monthly Fuel Consumption 0.39 Average Fuel (L/T) 0.37 0.35 0.33 0.31 0.29 0.27 0.25 Aug-01 Apr-01 Jun-01 Jul-01 Sep-01 Nov-01 Feb-01 Mar-01 Jan-02 May-01 Oct-01 Dec-01 Month Iron Ore
Slide 15: Safety: Lost Time Injury Frequency Rate
Progress: Safety Lost Time Injury Frequency Rate 30 25 12 Month LTIFR 20 15 10 5 0 4 5 6 1 1 7 8 9 2 3 0 M9 M9 M9 J0 M9 M9 M9 c-0 J0 M9 M0 YE YE De YE YE YE YE YE YE YE YE Iron Ore
Slide 16: What changed our Safety Performance?
Progress: What changed our Safety Performance ? • Strong leadership and commitment • Basic systems developed with involvement of the workforce • Major training programmes focussing on hazard perception • Groups of people making personal decisions that their risk taking behaviours were unacceptable I
Slide 17: Environmental
Progress: Environmental Iron Ore
Slide 18: Workplace Change
Progress: Workplace Change Iron Ore
Slide 19: Workplace Change
Progress: Workplace Change Iron Ore
Slide 20: Technology
Progress: Technology Iron Ore
Slide 21: Technology: Global Positioning System
Progress: Technology Global Positioning System Iron Ore
Slide 22: Technology: Beneficiation Plant
Progress: Technology • Beneficiation Plant – 1998 – 4.4 Mtpa – 2001 – 5.4 Mtpa Iron Ore
Slide 23: Technology
Progress: Technology Iron Ore
Slide 24: Community Relations
Progress: Community Relations Iron Ore
Slide 25: Iron Ore
Iron Ore bhpbilliton
Slide 26: Future Strategy: Yandi Lump
Future Strategy: Yandi Lump • Modification of No. 2 Ore Handling Plant • Additional Mtpa Lump Product
Slide 27: Future Strategy: Mining Area C
Future Strategy: Mining Area C Long term 11 Blending stockpiles Electricity Substation Rail Spur Village Bulk Sample Pit Airstrip C Deposit Pit Outline
Slide 28: Future Strategy: Mining Area C
Future Strategy: Mining Area C • More than 800 million tonnes of iron ore in seven separate deposits • 740,000 tonne bulk sample April 2002 • Over 220,000 tonnes already trucked to Orebody 25 for processing and railing • Production target – late 2003 Iron Ore
Slide 29: Future Strategy: Products & Capacity Expansion (PACE)
Future Strategy: Products & Capacity Expansion (PACE) Iron Ore
Slide 30: Conclusion
Conclusion: • Asia will continue to be the focus for seaborne iron ore growth • The range of ore products will grow as steelmakers increasingly flex their ore mix to optimise production and costs • BHP Billiton are well positioned to participate in industry growth •Proximity to Asian markets •Qualit
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