Professional Documents
Culture Documents
Hilmar Rode
Asset President, Escondida
Escondida Norte Pit
Disclaimer
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, annualised 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, 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 Billitons filings with the US Securities and Exchange Commission (the SEC) (including in Annual Reports on Form 20-F)
which are available on the SECs 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.
Past performance cannot be relied on as a guide to future performance.
Presentation of data
Unless specified otherwise, all data is presented on a continuing operations basis to exclude the contribution from assets that were demerged with South32 and references to Underlying EBITDA margin and
Underlying EBIT margin exclude third party trading activities.
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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, or be treated or relied upon as a recommendation or
advice by BHP Billiton.
FY15 ROM
Measured Resource Indicated Resource Inferred Resource BHP Billiton
Asset Deposit Ore Type production
(Mt) (Mt) (Mt) interest (%)
(Mt)
Copper
5,870 @ 3,230 @ 10,100 @
Escondida1 All
0.64% Cu 0.50% Cu 0.50% Cu
294 @ 1,150 @ 6,000 @
Pampa Escondida Sulphide
0.53% Cu 0.55% Cu 0.43% Cu
Escondida Cluster 193 57.5
109 @ 87 @ 52 @
Pinta Verde All leach ore types
0.60% Cu 0.52% Cu 0.48% Cu
139 @ 84 @
Chimborazo Leach sulphide NA
0.50% Cu 0.60% Cu
Our outstanding safety record is being enhanced by an increased focus on vehicle safety
Our transformation program (E3.0) is delivering a step change in productivity
targeting a grade-adjusted 20% reduction in unit cost by end FY171
targeting 65% improvement in people productivity by end FY172
Our proactive approach to water and power provides a strategic advantage
Our three concentrator strategy will release latent capacity at very low capital intensity
the Los Colorados Extension (LCE) project will prolong the life of the concentrator until at least FY30
investment ~US$200 million, IRR ~100%, one year execution, approval targeted in H2 FY16
~1.2 Mtpa average production capacity for a decade from FY16 with minimal further capital required
maintaining our competitive position on the cost curve with unit costs of US$1.08/lb by FY173
Outstanding resource quality provides optionality for long-term growth through technology
FY16 YTD
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
with a focus on key risks
high-altitude health
fatigue
Incidents with potential significant impact2
mental wellness Index, July 2013=1.00, number of incidents, 3 month rolling average
1.00
drugs and alcohol
0.75
noise and hazardous material exposure
reductions 0.50
0.25
0.00
FY14 FY15 FY16 YTD
1. Total Recordable Injury Frequency (TRIF).
2. Incident with uncontrolled release of energy.
There have been several fatal accidents on route Trips on route B-475 to Escondida
B-475, the 134 km public access road from Trips per day
Antofagasta to Escondida 1,200
Employees Contractors
Environment
Existing water recovery programs and an additional
desalination plant are expected to reduce fresh water
consumption by >50% from FY18
Kelar will provide 517 MW of gas-fired power and
secure our long-term supply needs in a more
sustainable way while providing flexibility
Our greenhouse gas reduction projects have reduced
CO2 emissions by 13% since FY14 EWS, Coloso Port
Community
Partnering with local and indigenous communities
>US$150 million invested since FY12
We are improving the quality of life in Antofagasta
through our support of the CREO1 project and other
local community programs
Our education initiatives focus on early childhood and
social participation, as well as specialised technical
training for the mining industry Cultural event, Antofagasta
1. A long-term plan supported by the OECD to improve quality of life in Antofagasta, aligning public and private investment with citizen participation.
Escondida's ownership
BHP Billiton 57.5%, operator Escondida
Norte Pit
Rio Tinto 30%
Sulphide
JECO and JECO2 12.5%1 Oxide Leach
Leach Pads
The worlds largest copper mine Pads Los Colorados
Concentrator
~1.4 Mtpd total material moved from two pits
Escondida
three concentrators with ~375 ktpd effective Cathode Pit
Plant
throughput capacity
oxide and sulphide leaching streams with
~330 ktpa effective cathode capacity
~3.5 Mtpa of concentrate shipments
OGP1 and
Delivery of OGP1 and OLAP2 supporting our Laguna Seca
concentrate and leaching strategy Concentrators
Mine
Totals
Concentrators
G&A
NPI/CHO
Others
1. As at 31 October 2015.
2. Weighted average of throughput unit cost of each area, e.g. US$/t ex-pit for mine.
3. Non-process infrastructure (NPI) / Concentrate handling operations (CHO).
Sulphide ore
stock
Dumps
Copper
Oxide ore cathodes
~60 ktpd of ore stacked
stock
Crusher Oxide acid leach
Ports of
Antofagasta
and
Mejillones
BHP Billiton Investor Briefing, Escondida
December 2015 11
Mine: moving more material at lower cost
We operate two open pits with the largest mining Moving more tonnes per FTE1 at a lower cost
fleet in Chile Index, FY14=100
170
total material movement of 1.4 Mtpd
135
20 electric rope shovels and 172 trucks
100
Improved equipment productivity has supported a
23% increase in material movement since FY14 65
OGP1 Constancia
Our optimised mine plan has enabled the Higher throughput offsets grade decline
extension of Los Colorados until at least FY301 Mill throughput, Mtpa; Recovery, % Head grade, %
Completed ramp First production
Completion of the low-cost LCE project will support 150
up OGP1 LCE, EWS starts
1.5
a >70% increase in concentrator throughput by the
end of FY172 100 1.0
0 0.00
FY14 FY15 FY16e FY17e
Stacking rates Head grade
Mineral resource base of ~27 Bt at 0.52% TCu1 Resource enables future growth1,2
could extend our operation to >100 years Bt
6.3 Bt at
Strategic resource availability (water, power, 0.63% TCu
capital, logistics, labour) and intensity of use 16 Bt at
0.47% TCu
Technology is the key to our mining strategy
4.6 Bt at
massive mining methods 0.51% TCu
equipment evolution (autonomy, scale)
Improving concentrator and cathode recovery Measured Indicated Inferred
through operating excellence and technology
grind size optimisation Potential future pit development
Escondida and Escondida Norte Pits
flotation optimisation Escondida
Escondida Norte Pit
leaching optimisation (salt enhanced leaching) Pit
Pampa
Escondida
Pit
Potential Mega Pit
1. Total copper (TCu) includes oxide, mixed and sulphide.
2. Total classified mineral Resources on a 100% basis as presented in slide 3.
Our outstanding safety record is being enhanced by an increased focus on vehicle safety
Our transformation program (E3.0) is delivering a step change in productivity
targeting a grade-adjusted 20% reduction in unit cost by end FY171
targeting 65% improvement in people productivity by end FY172
Our proactive approach to water and power provides a strategic advantage
Our three concentrator strategy will release latent capacity at very low capital intensity
the Los Colorados Extension (LCE) project will prolong the life of the concentrator until at least FY30
investment ~US$200 million, IRR ~100%, one year execution, approval targeted in H2 FY16
~1.2 Mtpa average production capacity for a decade from FY16 with minimal further capital required
maintaining our competitive position on the cost curve with unit costs of US$1.08/lb by FY173
Outstanding resource quality provides optionality for long-term growth through technology