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BHP Billiton 6-K 2012 Documents found in this filing:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 October 30, 2012
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: x Form 20-F ¨ Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ¨ Yes x No If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
Newman Delivering value through optimisation bhpbilliton resourcing the future Marcus Randolph Group Executive & Chief Executive Ferrous and Coal 30 October 2012
Disclaimer bhpbilliton resourcing the future Forward looking statements This presentation contains forward looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments. Forward looking statements can be identified by the use of terminology such as ‘intend’, ‘aim’, ‘project’, ‘anticipate’, ‘estimate’, ‘plan’, ‘believe’, ‘expect’, ‘may’, ‘should’, ‘will’, ‘continue’ or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward looking statements. 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. Readers are cautioned not to put undue reliance on forward looking statements. For example, our future revenues from our operations, projects or mines described in this presentation will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing operations. Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP Billiton’s filings with the US Securities and Exchange Commission (the “SEC”) (including in Annual Reports on Form 20-F) which are available on the SEC’s website at www.sec.gov. Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or review any forward looking statements, whether as a result of new information or future events. Non-IFRS financial information BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This presentation also includes certain non-IFRS measures including Attributable profit excluding exceptional items, Underlying EBITDA interest coverage, Underlying effective tax rate, Underlying EBIT margin and Underlying return on capital. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review. UK GAAP financial information Certain historical financial information for periods prior to FY2005 has been presented on the basis of UK GAAP, which is not comparable to IFRS or US GAAP. Readers are cautioned not to place undue reliance on UK GAAP information. No offer of securities Nothing 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 information The views expressed in this presentation 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. Delivering value through optimisation, 30 October 2012 Slide 2
Disclaimer bhpbilliton resourcing the future Mineral Resources and Ore Reserves – Iron Ore This 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 is based on information in the BHP Billiton Annual Reports from 2007 to 2012 and other investor presentations which can be found at www.bhpbilliton.com. All information 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 and agrees with the form and context of information presented. Ore Reserve and Mineral Resource classifications are contained in Table 1. Table 1
Mineral Resources and Ore Reserves – Metallurgical Coal Based on information contained in the BHP Billiton 2012 Annual Report which can be viewed at www.bhpbilliton.com. 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 have the required qualifications and experience to qualify as Competent Persons under the JORC Code. Broadmeadow: David Walker (MAusIMM) who is employed by Mineplan Pty Ltd at the time of reporting. Illawarra Coal: Matthew Rose (MAusIMM) who is employed by BHP Billiton at the time of reporting. The Competent Persons verify that this report is based on and fairly reflects the Mineral Resources and Ore Reserve information in the supporting documentation and agree with the form and context of information presented. Delivering value through optimisation, 30 October 2012 Slide 3
Key themes bhpbilliton resourcing the future Western Australia Iron Ore projects are on schedule and budget Multiple debottlenecking opportunities present a low cost path significantly beyond 220 mtpa1 Unlocking latent capacity at Queensland Coal will drive a substantial increase in volumes and reduce costs Metallurgical coal projects in execution are on schedule and budget Improving the predictability of our operations through better planning, systems, processes and technology Our focused strategy will lower unit costs, deliver capital efficient volume growth and create value for our shareholders 1. 100% basis. Delivering value through optimisation, 30 October 2012 Slide 4
Newman Iron Ore Maximising productivity, efficiency and returns bhpbilliton resourcing the future
Our world class resource base is a competitive advantage bhpbilliton resourcing the future Pilbara mineral resource more than doubled in six years... within a concentrated footprint WAIO resources and reserves (billion wet tonnes, 100% basis) 25.0 Resource +100 years Reserve mine life1 20.0 15.0 10.0 +158% 20.6 19.3 16.1 11.7 12.5 5.0 8.0 2.4 3.0 3.1 3.3 3.5 3.4 0.0 FY07 FY08 FY09 FY10 FY11 FY12 Port Hedland Finucane Island Nelson Point Boodarie Yarrie Port Hedland Newman Railway Marillana Yandi MAC Jinidi South Flank OB 23/25 OB 18 Newman Jimblebar Wheelarra Existing Future ~250km Note: 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 of individual mines may be more or less than the number stated above. Delivering value through optimisation, 30 October 2012 Slide 6
Pursuing the capital efficient tonne bhpbilliton resourcing the future Investment through the cycle and a series of successful projects have delivered significant production growth in Western Australia Iron Ore (WAIO) Our focus has shifted from the marginal tonne to the capital efficient tonne Debottlenecking opportunities have the potential to release significant capacity well beyond 220 mtpa (100% basis) We will exercise the options with the lowest capital intensity and highest returns to unlock substantial value 1. Includes growth and sustaining capital expenditure. 2. CAGR from FY07 to FY13e. WAIO investment1 (US$ billion, BHP Billiton share) 8 6 4 2 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13e WAIO production (mtpa, 100% basis) 200 CAGR: 9%2 150 100 50 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13e Delivering value through optimisation, 30 October 2012 Slide 7
Major projects in execution are progressing well bhpbilliton resourcing the future Major growth projects are on schedule and within budget – Port Hedland Inner Harbour Expansion commissioning scheduled for H2 CY12 – Jimblebar Mine Expansion delivers 35 mtpa of mining capacity with larger processing capacity, first production scheduled for Q1 CY14 – Rail Yard Facilities Expansion creates flexibility and increases our direct load capability with commissioning expected in H2 CY14 Inner Harbour optimisation studies progressing well WAIO production (mtpa, 100% basis) 300 >220 mtpa Jimblebar Mine Expansion and Debottlenecking 250 Mooka Staging Facility Car dumper 5 200 150 100 FY11 FY12 FY13e FY14e FY15e FY16e Delivering value through optimisation, 30 October 2012 Slide 8
Prioritising the highest return growth option bhpbilliton resourcing the future Inner Harbour Expansion project on schedule – first ore loaded during Q1 FY13 from two recently installed shiploaders at Nelson Point – car dumper 5 scheduled to process first ore in late CY12 The Inner Harbour will comprise eight berths and eight shiploaders, four each at Nelson Point and Finucane Island, when existing projects are completed Option secured for two additional berths at Burgess Point Potential to debottleneck existing land-side infrastructure The Outer Harbour remains a valuable option for long term growth Port Hedland Inner Harbour Hunt Point Finucane Island BHP - D Port Hedland BHP - C town area PH1 PH4 Nelson PH2 Point BHP - G BHP - A PH3 BHP - B BHP - H Stanley BHP - E Point SP1 AP1 BHP - F AP2 SP2 AP4 Burgess SP3 AP3 Point AP5 BP1 SP4 Anderson BP2 Point Lumsden Sting Ray Creek Point Smith South East Point Creek BHP Billiton berths Option secured for 2 additional BHP Billiton berths at Burgess Point Delivering value through optimisation, 30 October 2012 Slide 9
Debottleneck and optimise the supply chain bhpbilliton resourcing the future Targeting the release of substantial capacity at low capital intensity Action the bottlenecks Identify the bottlenecks and increase their throughput Fully utilise the assets + Maximise output by increasing utilisation + Deliver the capital efficient tonne Fully utilise excess capacity in the supply chain (e.g. dual track rail, car dumper and shiploader capacity) Optimal utilisation of installed infrastructure = Lower cost tonnes and higher returns Delivering value through optimisation, 30 October 2012 Slide 10
Port: action the bottlenecks bhpbilliton resourcing the future Optimise dumper performance and choke feed them Ensure all low cost, incremental investment in shiploader capacity has been fully explored Test dynamic scheduling opportunities and product strategies to improve system performance West Yard SL8 CD4 STK 9 BWR 7 SL7 STK 10 BWR 10 SL3 East Yard CD5 STK 11 SL4 BWR 8 STK 12 Mooka CD1 SL1 North Yard CD3 STK 5 BWR 5 SL2 STK 8 South Yard SL5 CD2 STK 6 BWR 6 SL6 STK 7 Mooka marshalling yard; CD: Car dumper; STK: Stockyard; BWR: Bucket wheel reclaimer; SL: Shiploader Delivering value through optimisation, 30 October 2012 Slide 11
Port: fully utilise the assets bhpbilliton resourcing the future Car dumper 4 throughput (mtpa, 90 day moving average) 75 50 25 0 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Car dumper 4 performance improved by choke feeding — idle time reduced from 27% in FY11 to 10% in FY12 — 57 mt dumped in FY12 Targeting similar performance across all five dumpers Mooka Staging Facility enables trains to be queued away from the congestion of the Inner Harbour, increasing car dumper utilisation — completion scheduled for H2 CY14 Shiploader 1 throughput (mtpa, 90 day moving average) 45 30 15 0 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Shiploader 1 (SL1) is one of our oldest loaders rated at 10,000 tph loading capability (newer loaders are 12,500 tph) Despite limitations, SL1 comfortably operating at >35 mtpa annualised rate Additional opportunities to remove constraints through the tidal cycle Targeting optimal performance across all eight shiploaders Delivering value through optimisation, 30 October 2012 Slide 12
Port: deliver the capital efficient tonne bhpbilliton resourcing the future Mooka Staging Facility 5 car dumpers Stockyards Stacker-reclaimers Conveyer system 8 shiploaders 5th car dumper installed end CY12 Optimised throughput potential 55-60 mtpa per dumper Low cost opportunity to debottleneck the conveyor, stockyard and stacker-reclaimer system 7th and 8th shiploaders recently installed at Nelson Point Optimised throughput potential 35-40 mtpa per shiploader Right to develop two new berths and associated infrastructure Dumpers Conveyers / Yards Shiploaders Delivering value through optimisation, 30 October 2012 Slide 13
Port: low cost debottlenecking of our conveyors and stockyards bhpbilliton resourcing the future Latent capacity in our car dumpers and shiploaders has been tested and proven Complex interconnections are constraining the system System capacity will rise significantly as we debottleneck our stockyards and conveyors West Yard SL8 CD4 STK 9 BWR 7 SL7 STK 10 BWR 10 SL3 CD5 East Yard STK 11 SL4 BWR 8 STK 12 Mooka CD1 SL1 North Yard CD3 STK 5 BWR 5 SL2 STK 8 South Yard SL5 CD2 STK 6 BWR 6 SL6 STK 7 Mooka marshalling yard; CD: Car dumper; STK: Stockyard; BWR: Bucket wheel reclaimer; SL: Shiploader Delivering value through optimisation, 30 October 2012 Slide 14
Port: optimising stockyard performance will unlock significant value bhpbilliton resourcing the future Delivering value through optimisation, 30 October 2012 Slide 15
Rail: substantial upside in our existing dual track bhpbilliton resourcing the future Achieved 145 mtpa with single track infrastructure Single track operation required a large number of passing loops which created inefficiency Dual track can deliver more than 300 mtpa of capacity with modest investment Railed tonnage performance (mtpa, 90 day moving average) 200 180 160 140 120 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Dual track construction completed Delivering value through optimisation, 30 October 2012 Slide 16
Mines: readily expandable bhpbilliton resourcing the future Mobile crushers can unlock 20 mtpa of capacity Fully utilise rail load out capacity We are deploying mobile crushers at Whaleback and MAC Evaluating deployment at Jimblebar and Yarrie Jimblebar built for expansion beyond 35 mtpa Initial investment delivers capacity of — 60 mtpa stockpile and train load out — 55 mtpa Ore Handling Plant (OHP) — 35 mtpa mining fleet Substantial low cost expansion option One new mine required to achieve >300 mtpa Typical mobile secondary crusher Jimblebar production (mtpa, 100% basis) 75 50 25 0 75 55 35 Approved Upside Delivering value through optimisation, 30 October 2012 Slide 17
Hay Point Metallurgical Coal Releasing latent capacity bhpbilliton resourcing the future
Significant latent capacity at Queensland Coal bhpbilliton resourcing the future Industrial action and wet weather severely constrained production at Queensland Coal in FY11 and FY12 Strong recovery during the September 2012 quarter as BMA production increased to over 80% of supply chain capacity Short term focus — fully realise existing system capability — commission projects in execution — debottleneck and optimise installed capacity By end CY14 the capacity of Queensland Coal will be 50% higher than the production rate in FY12 1. Includes major projects in execution; FY15 estimated capacity excludes Norwich Park and Gregory nominal capacity. Queensland Coal production capacity1 (mtpa, 100% basis) 80 60 40 20 0 10 66 8 55 46 4 44 FY10 production FY11 production FY12 production Q1 FY13 recovery Latent capacity Projects in execution FY15e capacity Delivering value through optimisation, 30 October 2012 Slide 19
Cost reduction activities at BMA are well underway bhpbilliton resourcing the future Returning volumes to pre-flood and industrial action levels will drive significant unit cost improvement Closure of high cost operations — Norwich Park — Gregory open cut Targeting material cost savings — optimise contractor usage and rates — reduce supplier costs — review general overheads Reduce business development costs All non-essential expenditure is being targeted Unit costs1 (indexed to 100 in FY08) 250 200 150 100 BMA BMC Illawarra FY08 FY09 FY10 FY11 FY12 Queensland Coal cost base (cash costs, %) Variable 20% Fixed 80% 1. A$ per tonne FOB costs - cash production costs plus shiploading, demurrage, royalties and marketing and selling costs. Delivering value through optimisation, 30 October 2012 Slide 20
Projects are on schedule and budget bhpbilliton resourcing the future Daunia — first of the new mines 4.5 mtpa greenfield mine development US$800 million (BHP Billiton share)1 Initial production CY13 Project is 68% complete2 Broadmeadow Sustaining Operations Increases capacity by 0.4 mtpa and extends mine life by 21 years US$450 million (BHP Billiton share)1 Initial production CY13 Project is 83% complete2 Illawarra Coal — Appin Area 9 Sustains West Cliff and Appin mines for 20 years with capacity of 3.5 mtpa US$845 million (BHP Billiton share)1 Initial production CY16 Project is 25% complete2 Note: Refer to disclaimer on slide 3. 1. BHP Billiton interest : Daunia 50%; Broadmeadow 50%; and Illawarra Coal 100%. 2. As at 30 September 2012. Daunia CHPP BSO conveyor Delivering value through optimisation, 30 October 2012 Slide 21
Caval Ridge — significant low cost expansion potential bhpbilliton resourcing the future Revised cost US$1.87 billion (BHP Billiton share)1 Initial production CY14 Project is 48% complete2 Phase 1 mining fleet supports 5.5 mtpa operation Preparation plant capacity of 10 mtpa Rapid, low cost expansion of the mining fleet to 10 mtpa will be timed to meet market demand Expansion options beyond 10 mtpa 1. BHP Billiton interest: Caval Ridge 50%. 2. As at 30 September 2012. Caval Ridge site office and accommodation Caval Ridge aerial image Delivering value through optimisation, 30 October 2012 Slide 22
Securing our infrastructure capacity bhpbilliton resourcing the future Hay Point Expansion Phase 3 Reduces storm vulnerability Increases port capacity from 44 mtpa to 55 mtpa US$1.25 billion (BHP Billiton share)1 Completion CY14 Project is 50% complete2 Rail strategy — a cost effective option Establish above rail operations — initial capacity of 15 mtpa We will be the only integrated metallurgical coal producer from mine to port in Australia Creating future options and capability 1. BHP Billiton interest: Hay Point 50%. 2. As at 30 September 2012. Reducing storm vulnerability at Hay Point Tropical Cyclone Yasi (Indicative) 16.5m Tropical Cyclone Ului 11.5m Highest tide level 7.14m Existing trestle New trestle Illustration only. Delivering value through optimisation, 30 October 2012 Slide 23
Newman Improving the predictability of our operations bhpbilliton resourcing the future
Reducing the variability of our operations bhpbilliton resourcing the future Reduced operating variability improves safety, increases productivity and lowers costs Common metrics and simplified processes ensure we do the basics well — by end CY13 all operations will be using the same SAP system — the application of SAP across all functions including Maintenance, HSEC and Production Management will be a major differentiator for BHP Billiton Key difference is measurement of planning and execution, not just cost — was the work planned? — was the work executed according to the plan? Delivering value through optimisation, 30 October 2012 Slide 25
Advantages of a low variability operation bhpbilliton resourcing the future Measurement of the right metrics to drive value Percentage of work planned one week in advance (mining and maintenance) Adherence to schedule on the day (mining and maintenance) Production forecast accuracy Mined tonnes and grade, by block and by day Inventory tonnes and specifications Predictable operations with reliable equipment Increase productivity and reduce costs Allow standardised equipment and programmed procurement Maximise the benefit of autonomous equipment Enable more efficient technologies (truckless mining/mass material movement) Allow tighter product specifications in sales agreements Autonomous Caterpillar truck at New Mexico Coal Photo courtesy of Caterpillar Inc. Autonomous drill rig in operation at BMA Delivering value through optimisation, 30 October 2012 Slide 26
Key themes bhpbilliton resourcing the future Western Australia Iron Ore projects are on schedule and budget Multiple debottlenecking opportunities present a low cost path significantly beyond 220 mtpa1 Unlocking latent capacity at Queensland Coal will drive a substantial increase in volumes and reduce costs Metallurgical coal projects in execution are on schedule and budget Improving the predictability of our operations through better planning, systems, processes and technology Our focused strategy will lower unit costs, deliver capital efficient volume growth and create value for our shareholders 1. 100% basis. Delivering value through optimisation, 30 October 2012 Slide 27
bhpbilliton resourcing the future
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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