bhp billiton iron ore & boodarie iron
TRANSCRIPT
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