Bhp Group Ltd · ASX:BHP

Bhp — BHP Billiton — Investor Presentation (March 2011)

17 slides from Bhp's investor presentation, Mar 25, 2011

  1. Slide 1: Iron ore and coal: Investing in high quality growth

    For personal use only Iron ore and coal Investing in high quality growth Marcus Randolph Group Chief Executive, Ferrous and Coal March 2011

  2. Slide 2: Disclaimer

    Disclaimer For personal use only Reliance on Third Party Information The views expressed herein 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 o

  3. Slide 3: Iron ore and coal – our global operations

    Iron ore and coal – our global operations For personal use only 1 Underlying EBIT Underlying EBIT (H1 FY11, US$ billion) (H1 FY11) 15 EBIT Margin ROA 10 Western Australia US$5.3 billion 64% 48% Iron Ore Energy Coal Metallurgical Coal 5 Queensland Coal US$1.3 billion 39% 38% Iron Ore Hunter Valley US

  4. Slide 4: Investing in our Tier businesses

    Investing in our Tier 1 businesses For personal use only Western Australia Iron Ore  Scope: Develop capacity in excess of 220mtpa with debottlenecking opportunities to 240mtpa  Cost: US$6.6 billion (BHP Billiton share), excluding US$2.3 billion in pre-approval funding  Initial production date: Q1

  5. Slide 5: Large resources underpin significant growth

    Large resources underpin significant growth Reserves, Resources and Potential Mineralisation For personal use only (FY10, billion tonnes) Potential Mineralisation 75 Resource Reserve 200+ 100+ I Potential Mineralisation range 60 Minimum inventory life (years) 45 30 100+ 15 0 Western Australia Iron O

  6. Slide 6: Western Australia Iron Ore

    Western Australia Iron Ore For personal use only  Western Australia Iron Ore (WAIO) Port Hedland ‒ Integrated system of seven mines Outer Harbour Finucane Island ‒ More than 1,000 kilometres of rail Nelson Point Boodarie infrastructure YARRIE ‒ Expandable port facilities Port Hedland  Increasing c

  7. Slide 7: Investing in our export infrastructure

    Investing in our export infrastructure Existing For personal use only Wharfs and berths 155mtpa to +220mtpa investment 4 km jetty Outer harbour New stockyards Car dumper 5 Conveyors to Finucane Island New stockyards 24 x Shiploaders shiploaders Boodarie stockyards and Berths berths Iron ore and coal

  8. Slide 8: Well positioned to accelerate WAIO production growth

    Well positioned to accelerate WAIO production growth For personal use only WAIO production profile (mtpa, 100%) 400 FY10-FY20 CAGR 10% 350 300 Future growth options including the outer harbour development 250 200 +220mtpa investment 150 100 Existing capacity 50 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 F

  9. Slide 9: Ideally positioned on the cost curve

    Ideally positioned on the cost curve For personal use only Cost curve for iron ore fines (US$ per tonne CIF China) 160 120 80 40 BHP Billiton 0 0 350 700 1050 1400 Cumulative volume (million tonnes) Source: Macquarie Research, March 2011. Iron ore and coal – Investing in high quality growth, March 2

  10. Slide 10: Industry wide capital cost inflation

    Industry wide capital cost inflation BHP Billiton is not immune to that trend For personal use only Indicative capital intensity – WAIO (US$ per annual tonne) 240 45 195 12 183 Growth capital Debottlenecking option Adjusted growth capital Simplification (port Underlying capital (155mtpa to +220mtpa)

  11. Slide 11: Queensland Coal

    Queensland Coal For personal use only BHP Billiton Abbot Point Terminal (X80)  BHP Billiton Mitsubishi Alliance Abbot Point (BMA) Bowen BMA MINE / PORT ‒ BHP Billiton (50 per cent) BMC MINE FUTURE MINE / PORT ‒ Mitsubishi Development Pty Ltd Collinsville (50 per cent) 0 100km ‒ The world’s largest

  12. Slide 12: The premier metallurgical coal business

    The premier metallurgical coal business For personal use only Seaborne metallurgical coal producer operating margin (2016, US$ per tonne FOB) Queensland Coal 0 50 100 150 200 250 300 350 400 Cumulative volume (million tonnes) Source: Wood Mackenzie November 2010 Cost Data and BHP Billiton analysis.

  13. Slide 13: Hay Point – a strategic asset for the long term

    Hay Point – a strategic asset for the long term For personal use only EXISTING WORK UNMODIFIED HPX3 WORKS  Expansion from 44mtpa to 55mtpa NEW WORK HPX3 DEMOLITION WORK HPX3  Modification of existing infrastructure to mitigate risk  Scheduled for completion in CY14  Options for future expansion

  14. Slide 14: Industry wide capital cost inflation

    Industry wide capital cost inflation BHP Billiton is not immune to that trend For personal use only Capital intensity – metallurgical coal (US$ per annual tonne) 700 BHP Billiton  Brownfield expansion options at the start of 600 Non BHP Billiton the decade delivered ‘cheaper’ tonnes 500  Capital c

  15. Slide 15: Numerous options for growth

    Numerous options for growth For personal use only Metallurgical Coal production profile (mtpa, BHP Billiton share) FY10-FY20 70 CAGR 6% IndoMet Coal Stage 11 Illawarra Coal 60 BMC 50 BMA 40 30 20 Current operations 10 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1. IndoMet Coal Stage 1 c

  16. Slide 16: Investing in high quality growth

    Investing in high quality growth For personal use only  BHP Billiton’s large, low cost resource basins in Iron Ore, Metallurgical Coal and Energy Coal can support multiple major expansions  Capital cost inflation is an industry wide trend and consistently lags the commodity price cycle – BHP Billi

  17. Slide 17: For personal use only

    cdl bhpbilliton resourcing the future

BHP Billiton — Investor Presentation (March 2011) on 6ix