bhp billiton iron ore & boodarie iron

BHP Billiton Iron Ore & Boodarie IronA Global Leader

Fundamental Business Strategies

! Sustaining a strong underlying business that continually strives to deliver operating improvements and efficiencies

! Capacity expansion projects that will allow us to manage changes in demand

! A sophisticated marketing approach that aligns the business with the marketplace

BHP Billiton Iron Ore Customers

Calendar Year 2002 Total = 74.6 Mwt

Japan42%

China20%

South Korea17%

Australia - including Newman Fines sales to Boodarie Iron

10%

Taiwan7%

Europe4%

Production History 1966-2002Million Wet Metric Tonnes

0

10000

20000

30000

40000

50000

60000

70000

8000019

66

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

Calendar Year

'000 Wmt

MACGoldsworthyYandiJimblebarOB23/25BeneWhaleback+OB29

Mineral Resource Base

* Note 1: high P ore >0.1%P

11Yarrie detrital

31Yarrie crustal

59Yarrie low P

1,430Pisolite

2,138Marra Mamba

75Detrital (lump product)

1,705Brockman high P *1,298Brockman low P

Resource (Mwt)Ore Type

Iron Ore Products

The Iron Ore business is made up of severaljoint ventures (JV) each having their ownrange of products:Mt. Newman Joint Venture• Mt Newman High Grade Lump (Hematite)• Mt Newman High Grade Fines (Hematite)• Port Hedland Sinter Fines (Hematite/Pisolite)Mt. Goldsworthy Mining Associates Joint Venture• Goldsworthy High Grade Lump (Hematite)• Goldsworthy High Grade Fines (Hematite)• Goldsworthy Siliceous Run-Of-Mine (Hematite)Mining Area C Joint Venture• MACTM Lump (Marra Mamba)• MACTM Fines (Marra Mamba)Yandi Joint Venture• Yandi Fine Ore (Pisolite)• Yandi Lump Ore (Pisolite)

Business Performance: June - December 2002

Best On Record

! Sales 40.4Mwt

! Production 38.4 Mwt

BHP Billiton Iron Ore – Sales

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,00019

88

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

YEJ2

003 e

st

Calendar Year

'000 Wmt

MACTMYampiYandiNewmanGoldsworthy

Asian Growth at a Glance

! Asia - 41% of world crude steel production in 2001

! 1990 – 2001 Growth of 3% pa compared

with global average of 0.9% pa

! 1980 – 2000: Asian ore imports ↑ 67%

while global seaborne ore trade ↑ 27%

! Asian iron ore demand

55% of 455Mt (global demand) in 2001

63% of 480Mt (global demand) in 2002

Asian Market Growth

Asia's Iron Ore Imports

Japan

Korea

Taiw anChinaOther Asia

-

50

100

150

200

250

300

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Calendar Year

Mill

ion

WM

T

Other AsiaChinaTaiw anKoreaJapan

China - Growth Engine of Demand

! 1992 – 2002 Chinese steel production

grew by 85Mtpa (8.5% growth pa)

! 200Mt Steel forecast in 2003

! 300Mt Steel forecast in next 5 – 10 years

! Chinese demand

↑ 19Mt in 2002 (80% of total global ↑)

300Mt forecast in next 5 – 10 years

Sustaining the Business

BHP Billiton Iron Ore – Gross Loading Rate

3,000

3,500

4,000

4,500

5,000

5,500

Tonn

es p

er h

our

2000

2001

2002

YT

D20

03

Year Ending June

Sustaining the Business - Operating Efficiencies

Operating Excellence - Increased Rail Tonnages

Safety

! Leadership

! Systems

! Maturity

Our Improving Safety Performance

0

5

10

15

20

25

30M

199

3

M 1

994

M 1

995

M 1

996

M 1

997

M 1

998

M 1

999

M 2

000

D 2

001

D 2

002

12 Month LTIFR

Year Ending

ISO 14001 International Accreditation

Expansion Projects

Picture: Foundations for Area C crusher

Yandi Lump

Expansion ProjectsAuthorised Capital Cost

Mining Area C

! US$213 million(BHP Billiton share)

PACE

! US$351 million (BHP Billiton share)

Area C Bulk Sample

Marketing

New Product Development

! Yandi Lump

! MACTM Fines

! MACTM Lump

Newman Ore Upgrade Project

Regional OfficesBHP Billiton Iron Ore has regional offices in Tokyo, Seoul, Shanghai

and London. Each of these offices are

the first point of contact for the

customer.

Perth Officeis the centre for operations and

technical serv ices.

Singapore & The Hague

Officesare the marketing

centres.

BHB Billiton Iron Ore Customer Support Network

BHP Billiton Iron Ore uses it’s

Newcastle Technology Centre and

Wollongong Centre

to provide fundamental research and investigate technical issues to

optimise the value-in-use of its ores at customers’ facilities.

Conclusion

! World Leader

! Quality Asset Base

! Large Product Range

! Large Scale

! Technology