Slide 1: An outstanding business with tremendous growth opportunities
An outstanding business with tremendous growth opportunities Iron Ore Analyst Site Visit Day 2 Monday 29 October - Newman
Slide 2: Important Notices
Important Notices 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
Slide 3: Competent Persons
Competent Persons • The information in this presentation that relates to Ore Reserves and Mineral Resources is as at 30 June 2007 and is based on information prepared by the relevant Competent Persons. The Competent Persons agree with the form and context of the Mineral Resources and Ore Reserves pr
Slide 4: Enjoy your visit
Visitor Safety Induction – On Site 1. Stay with your escort at all times; especially if an emergency occurs 2. You will be advised when to wear: • Reflective vests and safety helmets • Safety glasses (fit over prescription glasses) 3. Use handrails when on stairs 4. Keep clear of all machinery 5. We
Slide 5: Contract Mines
Maximising safety, productivity and value from our integrated business system (mine, rail and port): Contract Mines Rag Udd, Manager Contract Mines Image: Construction of a second ore handling plant to expand production of the M ACTM product at Area C in the Pilbara, Western Australia (2007)
Slide 6: Contract mines overview
Contract mines overview • Control and major decision- making by BHP Billiton • Operated using HWE Mining, Macmahon, and Leightons; • Five mines producing ~ 89 Mtpa of ore for rail (OFR); • Total productive movement ~ 154 mt; • Approximately 2,000 permanent and contract employees • Workforce almost 1
Slide 7: Contract mines highlights
Contract mines highlights HSEC • Ongoing downward trend on Safety indicators • Strong cost control • Production increased by 7% in FY2007 • Yarrie mine to be transitioned to Indigenous contract mining through Operations Ngarda in April 2008 with training facilities • Combined OB18 and Jimblebar to o
Slide 8: TRIFR performance: contract mines
TRIFR performance: contract mines Contract Mines TRIFR Trend 20.8 17.9 13.9 8.5 10.1 FY2004 FY2005 FY2006 FY2007 Jul-07 Aug-07 Sep-07 BHP Billiton Iron Ore Analyst Site Visit Page 8 28-30 October 2007
Slide 9: Contract mines system capability
Contract mines system capability Stretching the system at Area C and Yandi while upward capability still exists at a couple of mines… Mine Name Plate FY2008 Comment Capacity (Mt) Guidance Yandi 42 43.1 Operating above nameplate Area C 23 33.6 RGP3 expansion coming on line (42) Yarrie 8 0.5 Transitio
Slide 10: Contract mines production: ability to scramble and ramp up quickly
We have been able to take advantage of the flexibility allowed by contract mining to ‘scramble’ and ramp up quickly Contract Mines Production (Ore for Railing) 100 90 • Intense growth over the last 10 years 80 • Area C start up in 2002 70 • OB18 Start up in 2006 Million Tonnes 60 50 40 30 20 10 0 19
Slide 11: Evaluating the commercial terms with our contractors
Evaluating the commercial terms with our contractors to extract maximum value All new contracts are being signed with guarantees on the capability to assure business improvement (BI) Mine Contractor Term until Negotiated expiry Yandi HWE Mining 2009 Extension under negotiation Under negotiation fact
Slide 12: West Australian Mining Operations
Maximising safety, productivity and value from our integrated business system (mine, rail and port) West Australian Mining Operations Dean White, Resident Manager Whaleback Image: Mt Whaleback July 2007
Slide 13: Whaleback overview
Whaleback overview • Whaleback and OB29/30/35 ore bodies • Source of both Hematite and Goethite • Commenced 1967 with first ore shipped in 1969 • Remaining life > 20 years • Largest single pit iron ore mine in the world • Productive movement 97Mt • Ore for rail approx 22Mt pa • 750 employees and 350
Slide 14: Newman Joint Venture highlights
Newman Joint Venture highlights HSEC • Continuous downward trend on safety indicators • CEO Award for Most Improved • Successful transition from contractor to owner operator Operations • Productive movement achieved • Cost saving attained • RGP4 commenced Growth • Upgrade of load and haul fleet unde
Slide 15: Strong safety improvements
Strong safety improvements… Focus on continuing downward trend Whaleback TRIFR Trend 42.3 31.4 6.1 10.4 8.3 FY2004 FY2005 FY2006 FY2007 Jul-07 Aug-07 Sep-07 BHP Billiton Iron Ore Analyst Site Visit Page 15 28-30 October 2007
Slide 16: Optimised mine planning delivers benefits
Optimised mine planning delivers benefits Resource maximisation and cost efficiencies by reducing reliance on higher strip ratio Whaleback, increasing use of beneficiation and satellite ore bodies… 45 Whaleback Beneficiation OB23/25 OB18 Jimblebar/Wheelarra 40 35 Million Tonnes (Mt) 30 25 20 15 10 5
Slide 17: Beneficiation increases the benefits of blending across Newman JV
Beneficiation further increases the power and benefits of blending across Newman JV Turns waste into ore; allowing more low grade resource to be used in the blend while maintaining product grade Product (65.1%Fe) To loadout 5.6Mdt tunnel Separation Feed (54.81%Fe) 8.4Mdt in concentrator Waste (34.9%
Slide 18: Mining equipment – main production units
Mining equipment – main production units Trucks Drills Shovels 13 x CAT 789B 189T 1 x IR DM-M3 (251mm) 1 x P & H 2800 6 x CAT 789C 189T 3 x IR DM-H4 (311mm) 2 x R996 Shovel 13 x CAT 793B 219T 1 x R995 Shovel 26 x CAT 793C 230T New equipment 2 x O & K RH200 3 x CAT 793D 230T BHP Billiton Iron Ore Ana
Slide 19: Excellent tyre management
Excellent tyre management – CAT 793 Average scrap life exceeds industry average Average Scrap Life Trends vs Industry Average FY2008 Target Industry Ave. BHP Billiton Iron Ore Analyst Site Visit Page 19 28-30 October 2007
Slide 20: Site innovation – tyre management & collision avoidance
Site innovation – tyre management & collision avoidance Tyre Management • Best in Class across BHP Billiton for Cat789 tyre • Dedicated road crew & equipment • Application of VBox for Collision Avoidance redesigning roads • Use of road binding agents • Major EME R&D projects • Dedicated use of rolle
Slide 21: Targeted exploration, drilling and evaluation to support our growth strategy
Targeted exploration, drilling and evaluation to support our growth strategy James Shaw, Vice President Technical Services and Resource Development
Slide 22: Significant mineral inventory in the Pilbara underpins our growth program
Significant mineral inventory in the Pilbara underpins our growth program 8 Bt of Mineral Resource as at 30 June 2007 BHP Billiton Iron Ore Mineral Inventory (Bt) • 15% increase in Resource compared to 30th June 2006 Further drilling to 18 - 30 • Packsaddle Range, Area C confirm – 1 Bt Inferred Reso
Slide 23: Tremendous endowment of world class, low cost potential
Tremendous endowment of world class, low cost potential close to existing infrastructure Roy Hill Yandi Marillana Munjina Jinayri Area C West Newman / Jimblebar Area C East / Packsaddle NOTE: This Mineral Resource and Ore Reserves information should be read together with and subject to the notes set
Slide 24: Programmes to make Heritage clearance for exploration more effective
New programmes and initiatives making processes to obtain Heritage clearance for exploration more effective • Heritage clearance for exploration is an important challenge • Established the Land Access Steering Committee – cross-functional executives working with traditional owners and representative
Slide 25: Using leading technology for faster, better information
Using leading technology to provide faster and better information for decision making • Falcon™ – an airborne gravity gradiometer that can be used to collect high resolution data about changes in gravitational forces below the Earth’s surface allowing detection of potential ore deposits from the air
Slide 26: Drilling program focussed on evaluation of strategic options
Drilling program focussed on evaluation of strategic options • Pilbara exploration budget of more than US$350M for FY2008 - FY2012 • Targeting improved understanding of potential new hubs to – Optimise the mine sequence – Ensure potential new hubs are ready when required • Program delivers 300 Mt in
Slide 27: Site Tour: Mt Whaleback
Site Tour: Mt Whaleback bhpbilliton
Slide 28: Area C
Maximising safety, productivity and value from our integrated business system (mine, rail and port): Area C Daniel Pop, Manager Area C
Slide 29: Enjoy your visit
Visitor Safety Induction – On Site 1. Stay with your escort at all times; especially if an emergency occurs 2. You will be advised when to wear: • Reflective vests and safety helmets • Safety glasses (fit over prescription glasses) 3. Use handrails when on stairs 4. Keep clear of all machinery 5. We
Slide 30: Area C overview
Area C overview • POSMAC JV (C Deposit) • Goldsworthy JV (E Deposit) • Operated by HWE Newman Mining Pty Ltd • First ore processed 21 July 2003 • Project to date ~ 75mt • Lump / Fines split approx. 38% • Currently mining the first 3 of 10 staged pits • Planned production for FY2008 = 33.6 Mt BHP Bil
Slide 31: Regional setting
Regional setting • Area C is hosted by rocks of the Hamersley Group (2400 – 2600 Mya) • Region affected by five deformation events, D1 to D5 • The Marra Mamba Iron Formation hosts the major deposits, on the northern fold limb of the Weeli Wolli Anticline (F3) • D2 and D3 are the significant controls
Slide 32: Area C mining fleet
Area C mining fleet – Liebherr 994 Excavator – 2 Hitachi EX 2500 Excavator – O & K RH170 Excavator – 1 Hitachi EX 3600 Excavator – O & K RH120 Excavator – 2 x CAT 994 FEL’s – 23 x 789 (180t) – 4 x CAT D10 Dozers – 1 x D9 CAT Track Dozer and 1 x Tiger 690 Wheel Dozer – 2 x CAT 16H grader – 5 x Water
Slide 33: Responding to growing demand with rapid expansions
Responding to growing demand with rapid expansions Area C Production (Ore for Railing) 30 25 20 Million Tonnes 15 10 5 0 2002 2003 2004 2005 2006 2007 BHP Billiton Iron Ore Analyst Site Visit Page 33 28-30 October 2007
Slide 34: MAC TM sales – CY 2006
MACTM sales – CY 2006 Total MACTM Sales by Region Europe CAL 2006 1% Australia 0.5% China Taiw an 67% 2.5% Korea 14% Japan TM Total MAC Fines Sales by Region15% Total MACTM Lump Sales by Region CAL 2006 CAL 2006 Europe Europe 2% China 0.5% Australia 57% Taiwan China 1% 1.5% 72% Taiwan 5% Korea 14% K
Slide 35: Area C - processing plant flow sheet
Area C - processing plant flow sheet BHP Billiton Iron Ore Analyst Site Visit Page 35 28-30 October 2007
Slide 36: Workforce
Workforce • 1146 Village rooms – 490 Permanent 656 Short Stay – 450 HWE staff, including ESS catering and Brandrill – 50 BHP Billiton Iron Ore staff – 585 RGP3 Construction and sub-contractors – Balance for shutdown employees and visiting staff • Fly in / fly out roster from Perth to Site – 14 days
Slide 37: Expansion - E Deposit
Expansion - E Deposit BHP Billiton Iron Ore Analyst Site Visit Page 37 28-30 October 2007
Slide 38: Expansion - C Deposit
Expansion - C Deposit BHP Billiton Iron Ore Analyst Site Visit Page 38 28-30 October 2007
Slide 39: Site Tour: Area C
Site Tour: Area C Daniel Pop, Manager Area C
Slide 40: End of Day 2
End of Day 2