Western Australia Iron Ore Analysts' Tour

98 Pages·2011·6.12 MB·English

A world class business with
superior growth potential
Western Australia Iron Ore site tour
Ian Ashby
President, BHP Billiton Iron Ore
27 September 2011
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 should not be relied upon
as a recommendation or forecast by BHP Billiton.
Forward looking statements
This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future
events and the future financial performance of BHP Billiton. These forward-looking statements are not guarantees or predictions of future
performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause
actual results to differ materially from those expressed in the statements contained in this presentation. For more detail onthose risks, you should
refer to the sections of our annual report on Form 20-F for the year ended 30 June 2011 entitled “Risk factors”, “Forward looking statements” and
“Operating and financial review and prospects” filed with the U.S. Securities and Exchange Commission.
No offer of securities
Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any
jurisdiction.
Non-GAAP financial information
BHP Billiton results are reported under International Financial Reporting Standards (IFRS). References to Underlying EBIT andEBITDA exclude
any exceptional items. A reconciliation to statutory EBIT is contained within the profit announcement, available at our website www.bhpbilliton.com.
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 2
Disclaimer
Exploration results and mineral resources
This presentation includes information on Exploration Results (Potential Mineralisation), Mineral Resources (inclusive of OreReserves) and Ore
Reserves. The range of Potential Mineralisation is estimated from geological information including boreholes, outcrops and geophysical
information, and is shown as a range (black bars). The potential quantity is conceptual in nature, there has been insufficient exploration to define a
Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
This data has been compiled by: P Whitehouse (MAusIMM) –Western Australian Iron Ore (WAIO). This is based on information in the BHP Billiton
Annual Reports from 2007 to 2011 and other investor presentations which can be found at www.bhpbilliton.com, except for Potential Mineralisation
figures for 2007, 2009 and 2011 which are reported here for the first time and are compiled by J Knight (MAIG) –WAIO.
All information is reported under the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004’ (the
JORC Code) by the following Competent Persons who were employed by BHP Billiton at the time of reporting (unless otherwise stated) and have
the required qualifications and experience to estimate and report Exploration Results, Mineral Resources and Ore Reserves under the JORC
Code.
Exploration results -WAIO:
 FY2007 to FY2011: J Knight (MAIG)
Mineral resources -WAIO:
 FY2011: P Whitehouse (MAusIMM); D Reid (MAusIMM); V Osterholt(MAusIMM); M Smith (MAusIMM); S Nag (MAIG); C Williams (MAIG);
D Stephens (MAIG)
 FY2010: H Arvidson(MAusIMM); P Whitehouse (MAusIMM); D Reid (MAusIMM); A Voortman(MAusIMM) (currently employed by CSA
Global); S Harrison (MAIG); M Smith (MAusIMM); S Nag (MAIG); C Williams (MAIG); D Stephens (MAIG)
 FY2009: H Arvidson(MAusIMM); P Whitehouse (MAusIMM); D Reid (MAusIMM); S Harrison (MAIG); M Smith (MAusIMM); S Nag (MAIG);
C Williams (MAIG)
 FY2008: H Arvidson(MAusIMM); M Wozga(MAusIMM); D Reid (MAusIMM); S Harrison (MAIG); M Smith (MAusIMM); C Williams (MAIG)
 FY2007: H Arvidson(MAusIMM); M Wozga(MAusIMM); D Reid (MAusIMM); J Richardson (MAusIMM); M Smith (MAusIMM);
C Williams (MAIG)
Mineral resources -Samarco:
 FY2011: JP daSilva (MAusIMM); L Bonfioli(MAusIMM); employed by SamarcoMineracaoS.A.
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 3
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: J Kirk (MAusIMM); R Pasyar (MAusIMM)
Ore reserves -Samarco:
FY2011 Samarco: L Rezende(MAusIMM); employed by SamarcoMineracaoS.A.
The Compiler verifies that this report is based on and fairly reflects the Exploration Results , Mineral Resources and Ore Reserve information in the
supporting documentation and agrees with the form and context of information presented.
Ore Reserve, Mineral Resource classification and Potential Mineralisation Ranges for WAIO and Samarcoare contained in Table 1.
Table 1
Exploration Result
Proved Probable Measured Indicated Inferred
Reserve Reserve Resource Resource Resource Range of Potential Mineralisation1
(Bt) (Bt) (Bt) (Bt) (Bt)
Low Mid High
WAIO FY2011 1.4 2.1 2.2 3.9 13.2 16 32 48
FY2010 1.3 2.0 1.9 3.5 10.7 15 31 46
FY2009 1.3 1.8 1.8 3.2 7.5 14 28 42
FY2008 1.5 1.5 2.0 2.9 6.8 13 26 39
FY2007 1.3 1.1 1.7 2.1 4.2 12 24 36
Samarco FY2011 1.1 0.9 2.2 2.3 1.6 - - -
1. The range of Potential Mineralisation is estimated from geological information including boreholes, outcrops and geophysical information, and is shown as a range (black bars).
The potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the
determination of a Mineral Resource.
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 4
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
Samarcoand international growth options Chris Campbell
Performance overview UvashniRaman
People Andrew Carey
Day 2: Wednesday, 28 September 2011
Mines Eddy Haegel
Technology and innovation Tony Ottaviano
Licence to operate Carl Binning
Day 3: Thursday, 29 September 2011
Rail and port Pete Wilshaw
Day 4: Friday, 30 September 2011
Steelmaking materials briefing
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 5
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 UvashniRaman
VP Production VP Production VP Finance
Mines Logistics
& Infrastructure
AAnnddrreeww CCaarreeyy CCaarrll BBiinnnniinngg Ian Fletcher
VVPP HHuummaann VVPP HHSSEECC VP External
RReessoouurrcceess Affairs
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 6
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 Jul 11
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 7
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 Forecast ~450
450
Future growth options
400
~350
350
300
250
200
144
150
100
50
0
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0
0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
F F F F F F F F F F F F F F F F F F F F F
1. Including approved expansion to 220mtpa and debottleneckingincremental investment to 240mtpa.
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 8
Growth Master Plan:
Roadmap to 350mtpa and beyond
Board approved +220mtpa expansion
Port Hedland
Fully utilise Inner Harbour:
Outer Harbour
 Additional two berths at Burgess
Finucane Island
Nelson Point Point
Boodarie
Yarrie  Car Dumper 5 at Finucane Island
 Mooka marshalling yards
 Inner Harbour optimisation to
240mtpa currently under study
Port Hedland
Newman Growth tonnes:
Railway
 Jimblebar mine expansion
Study phase: 350mtpa expansion
Outer Harbour development:
Marillana
 Optionality for port blending
BHP Yandi
MAC  Supporting rail expansions
Jinidi
South flank Growth tonnes:
OB 23/25 Jimblebar
Newman OB 18  Jinidi, Marillana I and II, Southern
Flank
Existing Wheelarra
Future 0 100km Ultimate objective: 450mtpa
 Expand the Outer Harbour
 Greenfield portfolio of mines
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 9
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
e
n US$3.4 Delivers additional mining capacity
i
M billion mining capacity
 Embedded options for expansion to 55mtpa2 for
marginal incremental capital investment
 Two additional berths and shiploaders at Burgess
rt US$2.3 Increases port
o Point (Nelson Point) and additional car dumper
P billion system capacity
capacity at Finucane Island
n
 Port blending facilities at Nelson Point and
o
i
t Increases resource Finucane Island
a
is US$1.7 utilisation and
m  Rail marshalling yards at Mooka
i billion facilitates further growth
t
p
O  Enables ore blending
All figures quoted in 100% terms.
1. Approved March 2011. Excludes pre-commitment funding and investment in debottlenecking.
2. Relates to expansion from 220mtpa to 240mtpa.
BHP Billiton Iron Ore, Western Australia Iron Ore site tour, 27 September 2011 Slide 10