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BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
BHP Billiton Iron Ore Leveraging our strengths to deliver value
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BHP Billiton Iron Ore Leveraging our strengths to deliver value

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Tony Ottaviano, Vice President Planning Iron Ore, from BHP Billiton Iron Ore has presented at the Global Iron Ore & Steel Forecast Conference. If you would like more information about the conference, …

Tony Ottaviano, Vice President Planning Iron Ore, from BHP Billiton Iron Ore has presented at the Global Iron Ore & Steel Forecast Conference. If you would like more information about the conference, please visit the website: http://bit.ly/13MkVsy

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  • 1. BHP Billiton Iron OreLeveraging our strengths todeliver valueTony OttavianoVice President Planning19 March 2013
  • 2. DisclaimerTony Ottaviano, Vice President Planning, 19 March 2013 Slide 2Forward-looking statementsThis presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events,conditions, circumstances and the future financial performance of BHP Billiton, including for capital expenditures, production volumes, project capacity, andschedules for expected production. Often, but not always, forward-looking statements can be identified by the use of the words such as “plans”, “expects”,“expected”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, conditions,circumstances or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These forward-looking statements are not guarantees orpredictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which maycause actual results to differ materially from those expressed in the statements contained in this presentation. For more detail on those risks, you should refer tothe sections of our annual report on Form 20-F for the year ended 30 June 2012 entitled “Risk factors”, “Forward looking statements” and “Operating and financialreview and prospects” filed with the U.S. Securities and Exchange Commission. All estimates and projections in this presentation are illustrative only. Our actualresults may be materially affected by changes in economic or other circumstances which cannot be foreseen. Nothing in this presentation is, or should be relied onas, a promise or representation either as to future results or events or as to the reasonableness of any assumption or view expressly or impliedly contained herein.No offer of securitiesNothing in this presentation 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.Reliance on third party informationThe views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. Norepresentation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as arecommendation or forecast by BHP Billiton.
  • 3. DisclaimerSlide 3Mineral Resources and Ore ReservesThis presentation includes information on Mineral Resources (inclusive of Ore Reserves) and Ore Reserves.These have been compiled by: P Whitehouse (MAusIMM) – Western Australia Iron Ore (WAIO) who is employed by BHP Billiton at the time of reporting. This isbased on information in the BHP Billiton Annual Reports from 2007 to 2012 and other investor presentations which can be found at www.bhpbilliton.com. Allinformation is reported under the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004’ (the JORC Code).The Compiler verifies that this report is based on and fairly reflects the Mineral Resources and Ore Reserve information in the supporting documentation andagrees with the form and context of information presented.Ore Reserve and Mineral Resource classifications are contained in Table 1.Proved Reserve(Bt)Probable Reserve(Bt)Measured Resource(Bt)Indicated Resource(Bt)Inferred Resource(Bt)FY2012 1.4 2.0 2.3 3.7 14.6FY2011 1.4 2.1 2.2 3.9 13.2FY2010 1.3 2.0 1.9 3.5 10.7FY2009 1.3 1.8 1.8 3.2 7.5FY2008 1.5 1.5 2.0 2.9 6.8FY2007 1.3 1.1 1.7 2.1 4.2Table 1Tony Ottaviano, Vice President Planning, 19 March 2013
  • 4. Long term drivers of demand remain intactTony Ottaviano, Vice President Planning, 19 March 2013 Slide 4Global population growth (historical and forecast)(billion people)1. Total global population CAGR.Source: United Nations (Population Division, Department of Economic and Social Affairs).03691950 1960 1970 1980 1990 2000 2010 2020 2030Rural population Urban population60%52%34%GDP change between 2011 and 2025(2005 real PPP US$ trillion)IndiaChinaBrazilRussiaSouth KoreaEuropeanUnionJapanAustraliaUSA0510152025300 10 20 30 40 50 60GDP per capita(2005 real PPP US$’000s)
  • 5. Global growth is strengthening, Chinesecommodities demand is moderatingSlide 5Contribution to global GDP growth(% YoY)Chinese commodity consumption growth rates(% YoY)(1)012345CY10 CY11 CY12 CY13e CY14eChina United States EurozoneAsia (ex-China) Rest of the world010203040CY02 CY04 CY06 CY08 CY10 CY12Finished steel Copper Aluminium•  The global economy looks set to benefit froma period of improving economic growth•  China will remain the primary driver ofcommodities demand and its cyclical recoveryis in place•  Rebalancing of the Chinese economy suggestsresource intensity will consolidate at a fractionof its GDP growth rate (rather than a multiple)•  Demand growth rates for many of our coreproducts within China are expected to remainin the range of 2% to 4% per annumNote: Real growth rates weighted for share of world GDP; 2005 US$ (market exchange rates).Source: Global Insight.Tony Ottaviano, Vice President Planning, 19 March 2013
  • 6. Iron ore prices will remain volatile in theshort termSlide 6Iron ore spot prices(US$/t, 62% Fe, CIF China)Schematic iron ore cost curve(US$/t, CIF China)015304560050100150200Jun 12 Aug 12 Oct 12 Dec 12Seaborne iron ore inventory (RHS)Price (LHS)•  Over the last decade, Chinese demand forseaborne iron ore overwhelmed the capacityof the low cost supply basins•  Prices responded to induce high cost supply,which led to a steepening of the cost curve•  With the addition of low cost supply, customerinventory cycles now significantly impact themarket price•  Substantially more low cost supply is eitherplanned or in construction•  This will ultimately lead to a flattening of thecost curve and prices will mean revertSource: BHP Billiton analysis; Platts; Mysteel survey of 55 small steel mills.Steel mill inventory(days of inventory)2012 stocking cycleIron ore price volatilityCumulative volume(million tonnes)Current cost curveFuture cost curveTony Ottaviano, Vice President Planning, 19 March 2013
  • 7. 8.011.7 12.516.119.320.62.4 3.0 3.1 3.3 3.5 3.40.05.010.015.020.025.0FY07 FY08 FY09 FY10 FY11 FY12ResourceReserveOur world class resource base is a competitiveadvantageSlide 7Pilbara mineral resources more than doubled in six years... within a concentrated footprintExistingFutureFinucane IslandNelson PointBoodarie YARRIEMACSouth FlankJinidiPort HedlandPortHedlandNewmanRailwayYandiOB 23/25NewmanWheelarraJimblebarOB 18~250kmWAIO resources and reserves(billion wet tonnes, 100% basis)MarillanaNote: Refer to disclaimer on slide 3.1. Represents the Mineral Resource (inclusive of Ore Reserves) divided by the FY12 production rate and does not imply that any mine planning has been completed. The life ofindividual mines may be more or less than the number stated above.+100 yearsmine life1Tony Ottaviano, Vice President Planning, 19 March 2013
  • 8. Major projects in execution are progressing wellTony Ottaviano, Vice President Planning, 19 March 2013 Slide 8•  Major growth projects are on schedule andwithin budget–  Port Hedland Inner Harbour Expansionachieved first production in Q4 CY12– Jimblebar Mine Expansion delivers35 mtpa of mining capacity with largerprocessing capacity, first productionscheduled for Q1 CY14–  Rail Yard Facilities Expansion createsflexibility and increases our direct loadcapability with commissioning expected inH2 CY14•  Inner Harbour optimisation studiesprogressing wellWAIO production(mtpa, 100% basis)FY11 FY12 FY13e FY14e FY15e FY16e100150200250300 >220 mtpaCardumper 5Jimblebar MineExpansion andMooka StagingFacilityDebottlenecking
  • 9. Jimblebar Mine Expansion on scheduleTony Ottaviano, Vice President Planning, 19 March 2013 Slide 9Jimblebar: Ore Handling Plant (February 2013)
  • 10. •  5 car dumpers installed with optimisedthroughput potential of 55 to 60 mtpa perdumper•  8 shiploaders installed with optimisedthroughput potential of 35 to 40 mtpa pershiploader•  Low cost opportunity to debottleneck theconveyor, stockyard and stacker-reclaimersystem•  Achieved 145 mtpa withsingle track infrastructurealthough the large numberof passing loops createdinefficiency•  Dual track in place sinceMay 2011 can deliver>300 mtpa of capacitywith modest investment•  35 mtpa Jimblebar MineExpansion will take totalmine capacity to220 mtpa by Q1 CY14•  Jimblebar readilyexpandable from 35 to55 mtpa•  Mobile crushers can unlocka further 20 mtpa acrossour portfolio of mines•  Only one new mining hubrequired for >300 mtpaCapital efficient growth across the value chainSlide 10Mines StockpilesRailShip-loadersCardumpersTony Ottaviano, Vice President Planning, 19 March 2013
  • 11. We can significantly increase capacity bydebottlenecking the portSlide 11SL1SL3SL4SL8SL7SL2SL5SL6CD4CD5CD1CD3CD2BWR 6STK 7South YardSTK 6BWR 5STK 8North YardSTK 5BWR 8STK 12East YardSTK 11MookaBWR 7STK 10West YardBWR 10STK 9Optimise dumperperformance and chokefeed themEnsure all low cost,incremental investmentin shiploader capacityhas been fully exploredTest dynamic schedulingopportunities andproduct strategies toimprove systemperformanceMooka marshalling yard; CD: Car dumper; STK: Stockyard; BWR: Bucket wheel reclaimer; SL: Shiploader.Tony Ottaviano, Vice President Planning, 19 March 2013
  • 12. Debottlenecking examples: car dumper andconveyor belt optimisationSlide 12Tony Ottaviano, Vice President Planning, 19 March 20131.  Regrade track leading to thecar dumper2.  Increase speed of train inputinto car dumper (increasepusher arm torque, apronfeeder speed control)3.  Optimise dump cycle logic(for example, tuning tip angle,bin level detection)Actions Car dumper performance(ktph)Post-regradePre-regradeActions Conveyor belt load profile1.  Conveyor systemoptimisation allowedincreased belt loading2.  Throughput rate increasedfrom 10.5 ktph to 11.5 ktph8101214May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12Daily average net rateAverageOne-off commissioningHistoricOptimisedSchematic only.
  • 13. Preserving the valuable dual harbour optionTony Ottaviano, Vice President Planning, 19 March 2013 Slide 13Port Hedland Outer HarbourPort Hedland Inner HarbourBP1BP2BHP - DBHP - CPH4BHP - GBHP - HSP1SP2SP3SP4AP4AP5AP1AP2AP3BHP - ABHP - BBHP - EBHP - FPH1PH2PH3SmithPointSting Ray CreekBurgessPointNelsonPointStanleyPointAndersonPoint LumsdenPointSouth EastCreekHunt PointPort Hedlandtown areaFinucaneIslandBHP Billiton berths Option secured for 2 additionalBHP Billiton berths at Burgess PointNEW CHANNEL
  • 14. Productivity enablersTony Ottaviano, Vice President Planning, 19 March 2013 Slide 14Clearprocesses andresponsibilitiesCommon systemsand dataNext GenerationMining•  Common philosophy, systems andprocesses across the company•  Transparent and granular datafacilitates company-wide benchmarking•  Ability to leverage technology and bestin class practices across all divisions•  Enables productivity gains throughoutthe organisation
  • 15. We have clear processes and responsibilities withcommon systems and dataSlide 15Tony Ottaviano, Vice President Planning, 19 March 2013“Our Organisational Design Protocol delivers asimple and accountable organisation that operatesin an effective and common way”PeopleEnable our people to perform attheir bestEconomiesof scaleLeverage our global expertisethrough standard roles, alignmentof structures and simple systemsand processesBest practiceBenchmark and implement bestpractices across the GroupEnhanceperformanceDeliver predictable outcomes andoperational excellence to improvesafety, increase productivity andlower costsIllustrative capacity benchmarking(%)CD1 CD2 CD3 CD4Availability 82 81 80 85Utilisation 52 45 54 66Worst performerBest performerDowntime: No train in yardDowntime: SpottingDowntime: Equipment relatedDowntime: Railroad 1238CD2 CD495515 1
  • 16. Next Generation Mining: Integrated RemoteOperations Centre (IROC) fully operationalSlide 16•  IROC is fully operational•  Delivered under budget and ahead of schedule•  Real-time management of supply chain(pit to port) to reduce supply chain variability•  Optimised scheduling (production andmaintenance) to improve productivity•  Co-location of controllers, schedulers andplanners to improve collaboration, decisionmaking and role consolidation•  Deployable at all BHP Billiton large mining hubswith our Metallurgical Coal business next tobenefit from implementationTony Ottaviano, Vice President Planning, 19 March 2013Role excellence Collaboration TransparencyReducedvariabilityIntegrated Remote Operations CentreContinuous Improvement
  • 17. Next Generation Mining: autonomous equipmentand rapid resource modellingTony Ottaviano, Vice President Planning, 19 March 2013 Slide 17Autonomous equipment•  Clear, simple processes enable the introduction ofscalable autonomous technology•  Autonomous haul trucks (AHT) have been trialledin our New Mexico coal operations since midCY11•  AHT trial at WAIO to commence in H2 CY13•  Delivering safer, more predictable, moreproductive operationsRapid resource modelling•  Real-time elemental measurement with down holetools, and accurate measurement of mineralogy•  Automated interpretation of drill data based onpattern recognition algorithms•  Automated, integrated 3D modelling•  Fast results, better quality, repeatable models•  More effectively deliver product specificationsImage courtesy of Caterpillar Inc.Autonomous Caterpillar truckat New Mexico CoalAutomated drill data interpretation
  • 18. Key themesSlide 18•  Industrialisation and urbanisation will continue to support the expansion of ourworld-class iron ore business in the Pilbara•  Major projects in execution are on schedule and on budget•  Significant opportunity for high-return, capital-efficient growth•  Ongoing program of debottlenecking and optimisation is delivering value•  Common processes, systems and data combined with next generation miningtechnologies will deliver substantial productivity gains across the organisationTony Ottaviano, Vice President Planning, 19 March 2013

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