Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — The Second New Caledonian Nickel Conference 2004
17 slides from Bhp's conference presentation, September 2004
Slide 1: The Second New Caledonian Nickel Conference
The Second New Caledonian Nickel Conference Building effective resource development partnerships for the next generation Chris Pointon President BHP Billiton Stainless Steel Materials
Slide 2: BHP Billiton's Charter and value creation
BHP Billiton’s Charter states: ‘Our purpose is to create value through the discovery, development and conversion of natural resources…’ We are successful in creating value when: • Our shareholders are realising superior return on their investment • Our customers and suppliers are benefiting from our
Slide 3: First fundamental: robust, enduring partnerships with local business
First fundamental: build and consolidate robust, enduring partnerships with local business We have been working with New Caledonia since 1986 We purchased 2.3 million tons of lateritic ore in 2003 CY, earning New Caledonia nearly CFP5 billion (27 million tonnes to QNI since 1986) We have relationshi
Slide 4: Maintaining strong partnerships despite the vagaries of the market
Maintaining strong partnerships despite the vagaries of the market US$/lb Nickel price vs New Caledonia ore imports ktpa 10 3000 Nickel Price Nominal 9 QNI NC Ore Imports 8 2500 7 2000 6 5 1500 4 3 1000 2 500 1 0 0 85 87 89 91 93 95 97 99 01 03 19 19 19 19 19 19 19 19 20 20 Source: Brook Hunt/BHP Bi
Slide 5: Second fundamental: development experience and proven project delivery
Second fundamental: bring significant development experience and a proven track record of successful project delivery and technological innovation • 17 growth projects delivered since July 2001 • On-time delivery providing savings for shareholders and certainty for regional stakeholders Noumea Page
Slide 6: BHP Billiton has a strong pipeline of new developments
BHP Billiton has a strong pipeline of new developments • In BHP Billiton “major” capital projects are those where BHP Billiton’s investment share is USD100M or greater. • As at start July 04 the major project portfolio contained: – 5 projects in “Feasibility” – Total project amount = USD 3.2B – 14 m
Slide 7: Major Project Delivery and Front End Loading
Major Project Delivery – the key is doing the “Front End Loading” before you start to build anything. At BHP Billiton we have a rigorous approach to major projects, based on: – A disciplined capital investment process, which specifies all steps required to ensure a project is ready for efficient del
Slide 8: Key elements of capital effectiveness: managing the project inputs
Key Elements of capital effectiveness: managing the project inputs Source: Independent Project Analysts Inc Noumea Page 8 September 2004
Slide 9: FEL Index
Front End Loading Index for BHP Billiton project since 1991 – the benefits of a rigorous process 11 10 Screening 9 8 FEL Index Poor 7 Industry Average (IBC 2004) Fair 6 Good Top Quintile Performance (IBC 2004) 5 Best 4 Pre Tollgating Ave = 7.7 3 2 Post Tollgating Ave = 5.4 Dec-91 Dec-92 Dec-93 Dec-9
Slide 10: BHP Billiton operates an inventory of technologies
BHP Billiton operates an impressive inventory of technologies. We are able to match technology to the specific orebody. We have developed, and operate, leading technologies: • Atmospheric leaching of nickel • BioCop – tank bioleaching copper sulfide • Bioheap Leaching – enhanced copper heap recover
Slide 11: A proven technology suite for nickel
A proven technology suite for nickel Cerro Matoso – rotary kiln + submerged arc electric furnace Yabulu – reduction roast + ammonia leach Ravensthorpe – EPAL, AL & PAL South Africa/Chile – Bio-leaching and heap leaching Noumea Page 11 September 2004
Slide 12: Third fundamental: highest international standards in environment and community
Third fundamental: bring the highest international standards in environment, community engagement and business practice QNI operates a fully ‘zero discharge’ site. Its “world’s best practice” water recycling project helped earn the approval of Government to expand its operations, even though it is l
Slide 13: Fourth Fundamental: Partnership is a two-way process
Fourth Fundamental: Partnership is a two-way process providing value creation opportunity for both host country and investor The host country must provide clear guidelines, allowing investor to obtain fair return for risk and capital investment. Noumea Page 13 September 2004
Slide 14: Cerro Matoso SA: a successful partnership with Government and Community
Cerro Matoso SA: a successful partnership with Government and Community Cerro Matoso in Colombia • 20 years of operation • Remote agricultural host community • Stable fiscal regime respected by both operator and Government • Funded by equity and commercial project finance • Sustainable development e
Slide 15: Cerro Matoso's sustainable development programme
Cerro Matoso’s sustainable development programme is designed to build a long term diversified local economy The focus of Cerro Matoso’s sustainable development programme is on the long term: – Education – developing a skilled new generation – Governance – embedding planning skills in the local munic
Slide 16: In conclusion: long term relationships need stability and mutual responsibility
In conclusion: long term relationships between resource companies and host communities need stability and mutual responsibility A fair and stable fiscal regime, matched by high operating and project delivery standards, and by a commitment to invest in sustainable development of the host community wi
Slide 17: Current Ore Supply
Current Ore Supply Active Suppliers Potential Suppliers Noumea Page 17 September 2004
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