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
| BHP BILLITON LIMITED | BHP BILLITON PLC | |
| (ABN 49 004 028 077) | (REG. NO. 3196209) | |
| (Exact name of Registrant as specified in its charter) | (Exact name of Registrant as specified in its charter) |
| VICTORIA, AUSTRALIA | ENGLAND AND WALES | |
| (Jurisdiction of incorporation or organisation) | (Jurisdiction of incorporation or organisation) | |
| 180 LONSDALE STREET, MELBOURNE, VICTORIA |
NEATHOUSE PLACE, VICTORIA, LONDON, | |
| 3000 AUSTRALIA | UNITED KINGDOM | |
| (Address of principal executive offices) | (Address of principal executive offices) | |
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
| Proved Reserve |
Probable Reserve |
Measured Resource |
Indicated Resource |
Inferred Resource | ||||||
| (Bt) |
(Bt) |
(Bt) |
(Bt) |
(Bt) | ||||||
| FY2012 |
1.4 |
2.0 |
2.3 |
3.7 |
14.6 | |||||
| FY2011 |
1.4 |
2.1 |
2.2 |
3.9 |
13.2 | |||||
| FY2010 |
1.3 |
2.0 |
1.9 |
3.5 |
10.7 | |||||
| FY2009 |
1.3 |
1.8 |
1.8 |
3.2 |
7.5 | |||||
| FY2008 |
1.5 |
1.5 |
2.0 |
2.9 |
6.8 | |||||
| FY2007 |
1.3 |
1.1 |
1.7 |
2.1 |
4.2 |
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.
| BHP Billiton Limited and BHP Billiton Plc | ||||||
| Date: October 30, 2012 | By: | /s/ Jane McAloon | ||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||