Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Technical Presentation (September 2011)
98 slides from Bhp's technical presentation, Sep 27, 2011
Slide 1: A world class business with superior growth potential
A world class business with superior growth potential Western Australia Iron Ore site tour Ian Ashby President, BHP Billiton Iron Ore 27 September 2011
Slide 2: Disclaimer
Disclaimer Reliance on third party The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation
Slide 3: Disclaimer: Exploration results and mineral resources
Disclaimer Exploration results and mineral resources This presentation includes information on Exploration Results (Potential Mineralisation), Mineral Resources (inclusive of Ore Reserves) and Ore Reserves. The range of Potential Mineralisation is estimated from geological information including bore
Slide 4: Disclaimer: Exploration results and mineral resources (continued)
Disclaimer Exploration results and mineral resources (continued) Ore reserves - WAIO: FY2011: J Kirk (MAusIMM); A Cockerill (MAusIMM); K Risnes (MAusIMM) FY2010: J Kirk (MAusIMM); A Cockerill (MAusIMM) FY2009: J Kirk (MAusIMM); R Pasyar (MAusIMM) FY2008: J Kirk (MAusIMM); R Pasyar (MAusIMM) FY2007:
Slide 5: Agenda
Agenda Day 1: Tuesday, 27 September 2011 Introduction Ian Ashby Market outlook: China and beyond Michiel Hovers Resources and stages of WAIO development Tony Ottaviano WAIO growth projects Michael Wortham Samarco and international growth options Chris Campbell Performance overview Uvashni Raman Peop
Slide 6: Iron Ore executive committee
Iron Ore executive committee Ian Ashby President Iron Ore Chris Campbell Tony Ottaviano Michael Wortham Michiel Hovers VP Strategy & VP Planning VP Projects VP Marketing Development Eduard Haegel Pete Wilshaw Uvashni Raman VP Production VP Production VP Finance Mines Logistics & Infrastructure Andre
Slide 7: Safety performance
Safety performance Total Recordable Injury Frequency and significant incidents (TRIF 12 month moving average) (number of incidents) 25 Significant incidents 45 TRIF (Contractors) 40 TRIF (Employees) 20 35 TRIF (Combined) Fatality 30 15 25 20 10 15 10 5 5 0 0 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10
Slide 8: Developing WAIO to its full potential: 450mtpa is the ultimate objective
Developing Western Australia Iron Ore (WAIO) to its full potential: 450mtpa is the ultimate objective Growing strongly and investing throughout the cycle is a strategic imperative that we will deliver on WAIO production profile (million tonnes, 100%) 500 155mtpa to +220mtpa investment¹ Historical Fo
Slide 9: Growth Master Plan: Roadmap to 350mtpa and beyond
Growth Master Plan: Roadmap to 350mtpa and beyond Board approved +220mtpa expansion Port Hedland Fully utilise Inner Harbour: Outer Harbour Finucane Island Additional two berths at Burgess Boodarie Nelson Point Point Yarrie Car Dumper 5 at Finucane Island Mooka marshalling yards Inner Harbou
Slide 10: Inner Harbour development: Fulfilling our allocated capacity
Inner Harbour development: Fulfilling our allocated capacity US$7.4 billion1 to relieve the bottleneck at port, unlocking latent capacity at mine and rail Jimblebar mine expansion and associated infrastructure to deliver 35mtpa of additional Mine US$3.4 Delivers additional mining capacity billio
Slide 11: Outer Harbour development: Unlocking the next phase of growth
Outer Harbour development: Unlocking the next phase of growth Designed as a robust, scalable operating system to be constructed over four stages Boodarie stockyards enable the port blending strategy at higher tonnages to support resource optimisation Marine capacity (channel and harbour) suppo
Slide 12: Taking a long-term view
Taking a long-term view Program of Deliver growth through a portfolio of enabling and growth investments Work Standardise Standardised processes and replicable designs for rapid deployment and replicate Scalable Organise and build for increased scale of business Owner Owner operate for impro
Slide 13: Global operations overview
Global operations overview Deliver Samarco expansion and secure resource options in Brazil and West Africa Liberia and Guinea WAIO Samarco JV Brownfield Greenfield BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 13
Slide 14: Supply likely to under perform, steep cost curve underwrites growth plans
Supply likely to under perform, steep cost curve underwrites growth plans Seaborne traded supply growth has failed to Iron ore cost curve meet expectations (US$/t, 62-63% Fe, CIF China equivalent basis) (mtpa) 600 160 2001 2005 140 500 2010 120 Long-term price forecast - 2001 Long-term price forecas
Slide 15: Ideally positioned on the cost curve
Ideally positioned on the cost curve Iron ore cost curve – fines (US$/t, CIF China equivalent basis) Supply shortages have 160 resulted in high cost marginal producers filling the supply base 120 Retained a Competitive position favourable position is underscored by on the cost curve the quality of o
Slide 16: Market Outlook: China and beyond
New York Shanghai Xining Market Outlook: China and beyond Michiel Hovers Vice President, Marketing 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 16
Slide 17: Emerging economies will lead next decade's GDP growth
Emerging economies will lead next decade’s GDP growth Global GDP growth rate (% per annum) GDP growth has two main drivers 6 Developed economies Demographic factors including the Developing economies size and age profile of a population and degree of urbanisation 5 Productivity factors including
Slide 18: Urbanisation and industrialisation drive long-term commodity demand
Urbanisation and industrialisation drive long-term commodity demand Projected urbanisation of India, China and Rest of World (billion people) 5 India China 4 Rest of World 3 2 1 0 1990 2010 2030F 2050F Total Population 0.9 1.1 3.3 1.2 1.4 4.3 1.5 1.5 5.4 1.6 1.4 6.1 (billion people) Urbanisation 25%
Slide 19: Many large Chinese provinces are still in the early stages of the steel intensity curve
Many large Chinese provinces are still in the early stages of the steel intensity curve Chinese steel intensity by province vs. GDP per capita Finished steel consumption per capita 2010 (kg) 1,600 Shanghai 1,400 19m Beijing 1,200 Zhejiang 18m 52m 1,000 Tianjin Shandong Jiangsu 12m 95m 800 77m Avg Ea
Slide 20: China will continue to lead steel production growth well into the next decade
China will continue to lead steel production growth well into the next decade Global crude steel production (million tonnes) 3,000 2,500 2,440 Other 400 2,000 India 141 China 473 1,500 Other 25 1,426 India 40 China 1,000 512 849 500 0 2000 Historical growth 2010 Forecast growth 2025F Source: BHP Bil
Slide 21: Despite strong growth, China's 2025 projections still lag current US comparables
Despite strong growth, China’s 2025 projections still lag current US comparables China annual car production Car penetration density (million units) (number of cars per thousand persons) +155% 30 28 China 2010 32 21 China 2025F 120 15 15 11 US 1916 32 US 1923 120 0 US 2010 423 2010 2015F 2020F 2025F
Slide 22: Iron Ore seaborne demand growth to outpace China's consumption
Iron Ore seaborne demand growth to outpace China’s consumption as domestic grades fall China total domestic ROM versus implied concentrate Iron Ore Consumption1 (62% Fe eq.) production (Seaborne demand 2000=100) (million tonnes) (ROM average Fe grade) CAGR 2000-2010 2010-2020 1,600 35% 800 Total iro
Slide 23: Short-term pricing provides more transparency and efficiency
Short-term pricing provides more transparency and efficiency BHP Billiton contract structure Market evolution Before BHP Billiton is an active participant in spot market Annual priced LTC Spot We remain committed to long-term contracts BHP Billiton is supportive of the Now establishment of phy
Slide 24: Resources and stages of WAIO development
Resources and stages of WAIO development Tony Ottaviano Vice President, Planning 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 24
Slide 25: Putting the power into Planning
Putting the power into Planning Explore, define and sequence Resources a world class resource base Supply chain Analyse infrastructure capacity infrastructure and optimise operating models Establish growth architecture. Growth planning Develop and validate integrated growth options Technology Drive
Slide 26: WAIO is in a phase of unprecedented growth
WAIO is in a phase of unprecedented growth Planned growth in WAIO Pilbara system capacity (mtpa, 100%) 500 400 100 300 130 450 200 65 100 155 0 Current capacity (FY11) Board sanctioned Study phase projects Scaling the Ultimate objective projects Outer Harbour BHP Billiton Iron Ore, Western Australia
Slide 27: Supported by a world class resource base
Supported by a world class resource base Mineral resource more than doubled in 5 years... ...within a concentrated geography WAIO resources and reserves 2007-2011 (wet billion tonnes) Port Hedland Outer Harbour 20 Finucane Island Resource Nelson Point Boodarie YARRIE Reserve 15 Port Hedland Newman R
Slide 28: Large scale drilling program to support growth
Large scale drilling program to support growth WAIO drilling metres (drill metres ‘000s) 800 600 Exploration drilling 400 Sustaining and growth drilling 200 0 FY08 FY09 FY10 FY11 FY12F FY13F FY14F FY15F FY16F Exploratory drilling focus Definition drilling readying options Balanced identified growth
Slide 29: Exploration is delivering a strong portfolio of options
Exploration is delivering a strong portfolio of options Strong exploration results Clear options for sustainable growth WAIO mineral inventory 2007-2011 (billion tonnes) 80 Potential Mineralisation Coondewanna Prairie Downs Resource Options in potential West Ridge 60 mineralisation Tandanya Homestea
Slide 30: A high quality mineral inventory sustains a low cost position
A high quality mineral inventory sustains a low cost position Managing quality through blending delivers resource extension and lower costs1 Production strip ratio of 2:1 for the next 30 years Below water table mining expected to fall as a percentage of overall production Al (%) Concentrated r
Slide 31: Business Planning focused on key enablers
Business Planning focused on key enablers Comprehensive business planning…. .... enables us to work on the right things Workforce planning Business Requirements out to 450mtpa environment under study Airports Key airport study completed Supply / Demand outlook Business Accommodation Planning I
Slide 32: A clear, well defined path to deliver the growth plan
A clear, well defined path to deliver the growth plan Portfolio growth mines and Fully utilise allocated Inner Harbour capacity Scale the Outer Harbour launch of the Outer Harbour WAIO System Capacity (million tonnes, 100%) Port infrastructure 500 Boodarie Approved Outer Outer Outer Outer Currently
Slide 33: WAIO growth projects
WAIO growth projects Michael Wortham Vice President, Projects 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 33
Slide 34: Delivered numerous projects on schedule and within budget
Delivered numerous projects on schedule and within budget WAIO major capital projects performance Over budget 120% Schedule Behind schedule Budget 100% Under budget 80% Ahead of schedule 60% 40% 20% 0% MAC & RGP1 RGP2 RGP3 RGP4 RGP5¹ Inner Jimblebar Blending & PACE Harbour expansion rail yard expans
Slide 35: Yandi Mining Hub
Yandi Mining Hub: Remote primary crushers Ore handling plant 3 (OHP3) Stockpiling facilities Non-process infrastructure including accommodation village, offices, and Yandi Mining Hub workshops to support mining activities As at 26 July 2011 BHP Billiton Iron Ore, Western Australia Iron Ore s
Slide 36: Mainline duplication
Mainline duplication: 285km+ of double tracking Ore cars and locomotives Upgrades to railroad signalling, controls and communication systems Mainline duplication As at 27 July 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 36
Slide 37: Finucane Island port expansion
Finucane Island (Harriet Point) 155 to +220mtpa port (Finucane Island): 2 new berths and shiploaders at Harriet Point Finucane Island New car dumper 5 As at 27 July 2011 New stockyards to support port blending BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide
Slide 38: Nelson Point port expansion
Nelson Point 155 to +220mtpa port (Nelson Point): (Burgess Point) 2 new berths and shiploaders at Burgess Point As at 27 July 2011 New stockyards to support port blending Rail yard facilities (at Mooka) BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 38
Slide 39: Jimblebar mine expansion
Under construction: power and communications infrastructure Jimblebar mine expansion: Remote primary crusher Jimblebar Ore handling plant (Warrawandu village footprint) Stockpiling facilities As at 25 July 2011 Mining equipment and rolling stock BHP Billiton Iron Ore, Western Australia Iron
Slide 40: Planning for 350mtpa and beyond is well advanced
Planning for 350mtpa and beyond is well advanced Boodarie Outer Mines Rail stockyards Harbour Development of new Mainline expansion Car dumpers Up to 8 berths and 4 mines at Jinidi, South and spur lines Stockyards shiploaders Scope Flank and Marillana I Boodarie rail Infrastructure cor
Slide 41: Industry wide capital cost pressures are real
Industry wide capital cost pressures are real Australian iron ore project conveyor belt Component escalation rate (capital intensity, US$ per tonne) (index 2000 = 100) 300 400 Oil Concrete Structural steel fabrication 350 Prefabricated buildings 250 Mechanical & construction equipment US$ to A$ 300
Slide 42: Project delivery capability
Project delivery capability Reduce Standardise Replicate Modularise Pre-assemble work Yandi modules being Pre-assembled transported to site sample stations Village rooms sourced Streamlined from supply partners workforce deployment Secure Strategic Strategic Multiple Workforce capability procurement
Slide 43: Samarco and international growth options
Samarco and international growth options Chris Campbell Vice President, Strategy and Development 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 43
Slide 44: Expanding world class pellet operations
Expanding world class pellet operations QF (Iron Quadrangle) Samarco - 50:50 JV with Vale Railway Fully integrated pellet producer: 22mtpa current capacity, 8mtpa approved fourth pellet plant (P4P) expansion Brazil Large resource base of 6.1 billion tonnes, including 2.0 billion tonnes of reserv
Slide 45: Seeking to establish a broader base in Brazil
Seeking to establish a broader base in Brazil BHP Billiton active exploration licences 100% owned by BHP Billiton QF (Iron Quadrangle) Samarco location: Highly productive and prospective iron ore region 13 exploration licences with four active project areas Siqueira Mata dos Porcos Company BHP
Slide 46: Seeking to establish a West African iron ore business
Seeking to establish a West African iron ore business BHP Billiton West Africa iron ore interests Two country cluster in Guinea and Liberia Legend Nimba North Contains high grade ore with low impurities Guinea Currently in pre-feasibility phase 100% BHP Billiton SMFG Railway Nimba Close to e
Slide 47: Performance overview
Performance overview Uvashni Raman Vice President, Finance 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 47
Slide 48: Highlights – Financial year 2011
Highlights – Financial year 2011 WAIO shipments rose to a record annualised rate of 155mtpa (100% basis) in the Sales June 2011 quarter & prices Average realised prices for both lump and fines increased by 80% - 90% from FY10 Eleventh consecutive annual production record in Iron Ore Production
Slide 49: Increase in average realised prices driving revenue
Increase in average realised prices driving revenue Revenue Average WAIO FOB price (US$ billion) (US$/wet metric tonnes) 25 80% - 90% increase in 240 WAIO average realised prices Samarco 20 WAIO average selling price 180 15 120 10 60 5 0 0 FY06 FY07 FY08 FY09 FY10 FY11 BHP Billiton Iron Ore, Western
Slide 50: WAIO FY11 cost breakdown
WAIO FY11 cost breakdown Other 15% Contractors 24% Exploration 1% Royalties increased Labour incl. consultants following the non-binding 7% Heads of Agreement signed with the Government of Raw materials and Western Australia consumables 7% Contractor costs includes mining services provided by HW
Slide 51: Strong EBIT growth
Strong EBIT growth Higher prices and record production, dampened marginally by increases in contractor rates, price related costs (royalties) and weaker US dollar EBIT EBIT margin (US$ billion) (%) 15 80 WAIO Samarco IO IronEBIT Ore Margin EBIT margin 60 10 40 5 20 0 0 FY06 FY07 FY08 FY09 FY10 FY1
Slide 52: Significant investment in capital expenditure underpinning growth plans
Significant investment in capital expenditure underpinning growth plans Capital expenditure EBIT ROC (%, indexed to FY06) (%) 600% 120% Major growth capex Sustaining capex 500% EBIT ROC 100% 400% 80% 300% 60% 200% 40% 100% 20% 0% 0% FY06 FY07 FY08 FY09 FY10 FY11 Note: Includes WAIO and Samarco. BHP
Slide 53: People
People Andrew Carey Vice President, Human Resources 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 53
Slide 54: Significant growth in labour demand
Significant growth in labour demand Forecast total new operations workforce demand Forecast total new construction labour demand for Australia for WA, QLD & NT (number of people – July 2011) (number of people – May 2011) 100,000 Western Australia 100,000 Mining and mineral processing Oil and gas Que
Slide 55: HR function is structured to support growth
HR function is structured to support growth In house resourcing function structured to support large scale recruitment activity Iron Ore HR is well In house training and positioned to Understanding of labour on-boarding function support the delivery demand and supply of growth workforce requirements
Slide 56: Summary
Summary Ian Ashby President, BHP Billiton Iron Ore 27 September 2011 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 56
Slide 57: Overview – Day 1
Overview – Day 1 Continuing the pursuit of Zero Harm Intense focus on critical risks and fatality prevention Safety Decreasing trend in number of significant incidents Accident rates should improve with insourcing World class resource base - 50Bt mineral inventory in the Pilbara Resources
Slide 58: bhpbilliton resourcing the future
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Slide 59: Mines
Mines Eduard Haegel Vice President, Production Mines 28 September 2011
Slide 60: Disclaimer
Disclaimer Reliance on third party information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This
Slide 61: Agenda
Agenda Day 1: Tuesday, 27 September 2011 Introduction Ian Ashby Market outlook: China and beyond Michiel Hovers Resources and stages of WAIO development Tony Ottaviano WAIO growth projects Michael Wortham Samarco and international growth options Chris Campbell Performance overview Uvashni Raman Peop
Slide 62: Site visit program
Site visit program Time: Program: 7.45 Mines, Technology and License to operate presentations including safety induction 9.30 Morning tea 10.00 Depart for site tour of Mt Whaleback 12.00 Lunch at Mt Whaleback main administration building hub area 12.45 Depart for coach transfer from Mt Whaleback min
Slide 63: Visitor safety induction – on site
Visitor safety induction – on site Stay with your escort at all times – especially if an emergency occurs You will be advised when to wear: – Reflective vest and safety helmets – Safety glasses (fit over prescription glasses) – Face mask Use handrails when on stairs Keep clear of all machine
Slide 64: Mines safety performance
Mines safety performance Total Recordable Injury Frequency and significant incidents (mines) (TRIF 12 month moving average) (number of incidents) 25 Significant incidents 16 TRIF (Contractors) 20 TRIF (Employees) 12 TRIF (Combined) Fatality 15 8 10 4 5 0 0 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 J
Slide 65: Addressing high risk activities in a practical manner
Addressing high risk activities in a practical manner 10% target was exceeded in March 2011 Mines average risk reduction (% risk reduction) 16 14 Maintain ‘up-to-date’ risk profiles with risk reduction 12 measures focused on high risk areas 10 Monitor and measure 8 compliance to the critical con
Slide 66: Significant acceleration of system capacity in recent months
Significant acceleration of system capacity in recent months Annualised total ore for rail tonnage (mtpa, 90 day moving average) 180 ~165mtpa 170 160 150 140 130 120 110 100 Past 12 months 90 80 70 Sep 11 Mar 11 Jun 07 Jun 08 Jun 09 Jun 10 Dec 06 Sep 07 Dec 07 Dec 08 Dec 09 Dec 10 Jun 11 Sep 08 Sep
Slide 67: Newman Hub is complete and running well
Newman Hub is complete and running well OHP4 at Newman Hub As at 14 December 2010 BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 28 September 2011 Slide 9
Slide 68: Newman Hub: good example of efficient infrastructure utilisation
Newman Hub: good example of efficient infrastructure utilisation Eastern Pilbara BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 28 September 2011 Slide 10
Slide 69: Yandi ore processing plant running successfully under owner operation
Yandi ore processing plant running successfully under owner operation Safety: No reportable injuries or significant incidents Costs: On plan People: Take up of 98% from HWE Production: Ahead of ramp up schedule since takeover by 138%. Currently running at over 80% of installed capacity Tim
Slide 70: The transition to owner operator enables more efficient operations
The transition to owner operator enables more efficient operations Enables Provides the people capability platform to leverage for further growth growth Provides greater control over operations Operational Improves ability to manage costs, safety and growth control Provides greater flexibili
Slide 71: Strategic acquisition of HWE will de-risk the transition to an owner operated business
Strategic acquisition of HWE will de-risk the transition to an owner operated business Strategic rationale for the HWE acquisition: Business Minimises business continuity risks associated with the transition to owner continuity operated Shortened transition period through minimal disruption to o
Slide 72: One Mine
One Mine Standardised Simple Scalable Forward looking Highly capable Equipment De-coupled Enabling growth Port blending Flexibility Systems Safe Sustaining growth Centralisation of Engaged workforce Processes roles to Perth Safety through well Remote operations known and
Slide 73: One Mine will be delivered using a series of initiatives across mines
One Mine will be delivered using a series of initiatives across mines Designed to enable and sustain standard equipment, systems and processes across all mines A set of simple, standardised, replicable mines will create lower cost operations capable of rapid growth Organisation designs Rosters M
Slide 74: Technology and innovation
Technology and innovation Tony Ottaviano Vice President, Planning 28 September 2011
Slide 75: Mining technology provides options to drive productivity and efficiency
Mining technology provides options to drive productivity and efficiency Mine Rail Port Semi-automated Automated drill Autonomous trains shiploader Semi-automated excavator Automated train load out Autonomous haul trucks Tele remote graders In 2008, the 1st Generation Rail and Port Operations Centre
Slide 76: Planning is well underway for an IROC located in Perth
Planning is well underway for an IROC located in Perth IROC will have full visibility across our supply chain Stage Expected completion Early CY Mines Rail Port Full deployment 2013 Customer Continuous improvement ‘Compliance to plan’ IROC Standard systems Integrated supply End and processes chain p
Slide 77: Autonomous haul trucks are an attractive opportunity
Autonomous haul trucks are an attractive opportunity Currently trialling autonomous Caterpillar haul trucks at BHP Billiton operations in Navajo, New Mexico Safety Production Cost Fewer people exposed Improved asset Reduced to production areas utilisation maintenance costs Note: Photograph supplied
Slide 78: Licence to operate
Licence to operate Carl Binning Vice President, HSEC 28 September 2011
Slide 79: Licence to operate underpins the capacity to deliver growth
Licence to operate underpins the capacity to deliver growth Reduction in injuries Safety of our people Reduction in significant incidents Community YoY reduction in community engagement and complaints support All approvals supported Traditional owners Comprehensive agreement support with t
Slide 80: Environmental performance
Environmental performance FY11 performance and key achievements 100% environmental approvals obtained on or ahead of schedule FY11 dust event: 4 days against regulated target of < 11 days Water use efficiency: 20.4 litres/tonne shipped against target of 27.5 litres/tonne FY12 key targets Con
Slide 81: Communities and Indigenous affairs
Communities and Indigenous affairs FY11 performance and key achievements Large scale infrastructure projects in partnership with government: – Port Hedland multi-purpose recreation centre – Newman Town Centre retail redevelopment – South Hedland Youth Centre Over 115 Indigenous students particip
Slide 82: Indigenous economic development
Indigenous economic development FY11 performance and key achievements A$115 million direct spend on Indigenous contractors (up 22%) 25 local Indigenous entrepreneurs engaged through Business Support Program 791 Indigenous employees (311 direct and 480 indirect) FY12 key targets A$150 million
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Slide 84: Port Hedland briefing
Port Hedland briefing Pete Wilshaw Vice President, Production, Logistics & Infrastructure 29 September 2011
Slide 85: Disclaimer
Disclaimer Reliance on third party information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This
Slide 86: Agenda
Agenda Day 1: Tuesday, 27 September 2011 Introduction Ian Ashby Market outlook: China and beyond Michiel Hovers Resources and stages of WAIO development Tony Ottaviano WAIO growth projects Michael Wortham Samarco and international growth options Chris Campbell Performance overview Uvashni Raman Peop
Slide 87: Site visit program
Site visit program Time: Program: 14.30 Port presentation at Port Haven theatre room, including distribution of PPE 15.30 Depart for site tour of Nelson Point port operations 16.45 Depart for Public Wharf for harbour cruise to view port developments 18.00 Depart for Courthouse Gallery for light dinn
Slide 88: Rail and Port safety performance
Rail and Port safety performance Total Recordable Injury Frequency and significant incidents (rail and port) (TRIF 12 month moving average) (number of incidents) 25 12 Significant incidents TRIF (Contractors) 20 TRIF (Employees) TRIF (Combined) Fatality 8 15 10 4 5 0 0 Jul 05 Jul 06 Jul 07 Jul 08 Ju
Slide 89: Addressing high risk activities in a practical manner
Addressing high risk activities in a practical manner Maintain ‘up-to-date’ risk profiles with risk reduction measures focused on high risk areas Monitor and measure compliance to the critical control performance standards Engineer risk levels down – 11% reduction in FY11 New Safe Act Observ
Slide 90: Rail and Port performance overview
Rail and Port performance overview Total tonnes railed/shipped (mtpa) (average kt per day) 160 450 Total tonnes per annum Average total tonnes per day 400 140 350 120 300 100 250 80 200 60 150 40 100 20 50 0 0 FY06 FY07 FY08 FY09 FY10 FY11 Ability to load six cape vessels simultaneously following
Slide 91: Rail - Transition to dual track mainline completed successfully
Rail - Transition to dual track mainline completed successfully Rail capacity unlocked through: Port Hedland Outer Harbour ~285km double tracking Finucane Island Nelson Point Construction of 10 rail bridges Boodarie 664 new ore cars and 18 new locomotives Yarrie Signalling, controls, communi
Slide 92: Port Hedland - Infrastructure overview
Port Hedland - Infrastructure overview Dredged channel Finucane Island Nelson Point Stockyards Berths C&D Rail line Stockyards Stockyards Berths A&B Berths G&H Berths E&F under construction BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 29 September 2011 Slide 9
Slide 93: Port - Plant and equipment overview
Port - Plant and equipment overview Under construction Berths: 6 operating and 2 under construction 220mtpa port capacity will be unlocked via: Shiploaders: 6 operating and 2 under construction 2 x additional cape size berths at Nelson Point Stackers: 5 at Nelson Point and 4 at Finucane Isla
Slide 94: Significant acceleration of outflow tonnes over the past months
Significant acceleration of outflow tonnes over the past 12 months Annualised port outflow tonnage (mtpa, 90 day moving average) 170 ~165mtpa 165 160 155 150 145 140 135 Dip in outflow due 130 to weather and growth tie-ins 125 120 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11
Slide 95: FY11 Outflow – Highlights
FY11 Outflow – Highlights Shipped 145.6 million tonnes Commissioning of Harriet Point – November 2010: Shiploader 7 – December 2010: Shiploader 8 850 vessels loaded First Wozmax vessel: Bao Fu – 241 thousand tonnes loaded in December 2010 Largest vessel loaded at port – Cape Infinity 248 t
Slide 96: Improvement projects target volume through the system constraints
Improvement projects target volume through the system constraints Additional positioners installed on all Simpler operations in front of car four car dumpers dumpers, reduced delays, Car dumpers Improvement teams eliminate causes time to dump a rake reduced from of random delays 2.1 to 1.9 hours
Slide 97: Visitor safety induction – on site
Visitor safety induction – on site Stay with your escort at all times – especially if an emergency occurs You will be advised when to wear: – Reflective vest and safety helmets – Safety glasses (fit over prescription glasses) – Face mask Use handrails when on stairs Keep clear of all machine
Slide 98: bhpbilliton resourcing the future
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BHP Billiton — Technical Presentation (September 2011) on 6ix