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
November 3, 2008
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter) |
BHP BILLITON PLC (REG. NO. 3196209) (Exact name of Registrant as specified in its charter) | |
| VICTORIA, AUSTRALIA (Jurisdiction of incorporation or organisation)
180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA (Address of principal executive offices) |
ENGLAND AND WALES (Jurisdiction of incorporation or organisation)
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM (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
Australian Site Tour
Stainless Steel Materials CSG
Jimmy Wilson
President, Stainless Steel Materials
28 October 2008
Important notices
Reliance on third party information The views expressed here contain information that have 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.
Forward looking statements
This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of BHP Billiton. 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. For more detail on those risks, you should refer to the sections of our annual report on Form 20-F for the year ended 30 June 2008 entitled “Risk factors”, “Forward looking statements” and “Operating and financial review and prospects” filed with the U.S. Securities and Exchange Commission.
No offer of securities
Nothing in this release 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.
Cautionary Note to US Investors
The SEC generally permits mining companies in their filings with the SEC to disclose only those mineral deposits that the company can economically and legally extract. Certain terms in this presentation, including “resources” and “deposits” would not generally be permitted in an SEC filing. The material denoted by such terms is not proven or probable Reserves as such terms are used in the SEC’s Industry Guide 7, and there can be no assurance that BHP Billiton will be able to convert such material to proven or probable Reserves or extract such material economically. BHP Billiton urges investors to refer to its Annual Report on Form 20-F for the fiscal year ended June 30, 2008 for its most recent statement of mineral Reserves calculated in accordance with Industry Guide 7.
Competent Persons for Mineral Resources and Ore Reserves are named in the BHP Billiton Annual Report 2008, which can be viewed at www.bhpbilliton.com. Phil Hopkins (Resource and Reserves), who is a member of AusIMM and full time employee of BHP Billiton and has the required qualifications and experience, verifies that the relevant content of this document is based on and fairly reflects the information in the supporting documentation relating to Resources and Reserves.
Slide 2
Key messages
Safely run 100% of our assets at 100% capacity, 100% of the time
Delivering on committed projects
Options for low cost stable operations
Sound long run margins
Substantial resource base
Superior technology advantages
Part of BHP Billiton and hence ability to invest countercyclical to nickel market
Nickel West acquisition is value accretive
Slide 3
Agenda
Overview of our Business
Stainless Steel Materials Performance
Growth Options
Competitive Advantages
Slide 4
Stainless Steel Materials in the BHP Billiton portfolio
Underlying EBIT
(FY2008, US$bn)
25 20 15 10 5 0
Petroleum
Energy Coal Aluminium
Base Metals
Diamonds and Specialty Products
Stainless Steel Materials
Iron Ore
Manganese Metallurgical Coal
Energy (27%)
Non Ferrous (44%)
Steelmaking Materials (29%)
Notes: a) EBIT Margin excludes third party trading activities.
Underlying EBIT Margin(a)
(FY2008)
Petroleum 67% Energy Coal 30% Aluminium 31% Base Metals 62%
Diamonds and
20%
Specialty Products
Stainless Steel Materials 25%
Iron Ore 51% Manganese 58% Metallurgical Coal 24% Group 48%
Slide 5
SSM global footprint
Russia
The Hague
Cerro Matoso
Singapore Mount Keith Nickel
Indonesia Leinster Nickel Yabulu Operations
Kalgoorlie Nickel New Caledonia Exploration JVs Smelter Development Options Kambalda Nickel Nickel West
Fremantle Port
Concentrator Marketing Offices Kwinana Nickel
Esperance Port
Refinery Ravensthorpe Nickel
Slide 6
Experienced management team
Jimmy Wilson
President
Nickel West
Wayne Isaacs
President & COO
30 years resources experience
11 years with BHP Billiton
Yabulu
Neil Meadows
General Manager
23 years resources experience
4 years with BHP Billiton
Cerro Matoso
Alan Pangbourne
President
26 years resources experience
12 years with BHP Billiton
Human Resources
Mick Wheeler
Vice President
20 years resources experience
20 years with BHP Billiton
Business Development
Michiel Hovers
Acting Chief Dvt Officer
7 years resources experience
5 years with BHP Billiton
HSEC
Hannes van Rensburg
Vice President
6 years resources experience
6 years with BHP Billiton
Finance
Gerard Bond
Chief Financial Officer
11 years resources experience
11 years with BHP Billiton
Marketing
Stephen Williams
Marketing Director
21 years resources experience
21 years with BHP Billiton
Note: Stephen Williams reports jointly to Jimmy Wilson, President Stainless Steel Materials and Tommy Schutte, President Marketing
Slide 7
Focus to deliver value
Safely run assets at full potential
Continuously driving a Zero Harm culture
Continuous focus on business optimisation and reliable production
Recruit, develop and retain the right people
Deliver current projects
Ramp-up Ravensthorpe / Yabulu extension
Nickel West growth projects
Future Growth options
Cerro Matoso
Nickel West
Indonesia
Exploration
Slide 8
Focus on safety
SSM – Total Recordable Injury Frequency Rate¹
(TRIFR)
16 14 12 10 8 6 4 2 0
FY05 FY06 FY07 FY08 Key areas of focus
Elimination of fatal risks
Elimination of catastrophic risks
Creating operational stability, key driver to improve safety performance
Improving the quality of our Field Leadership process
Working with contract partners
Nickel exposure reduction
1. Excludes Ravensthorpe.
Slide 9
Agenda
Overview of our Business
Stainless Steel Materials Performance Growth Options Competitive Advantages
Slide 10
SSM financial performance
(US$m)
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 EBIT FY01
FY02 FY03 FY04 FY05 FY06 FY07 Price Cost
Efficiencies Volume Exchange Exploration Inflation Other FY08
Note: FY02 to FY05 shown on the basis of UKEAAP subsequent periods are calculated under IFRS. FY05 include one month of results for Nickel West (June). Subsequent years includes a full year of results from Nickel West.
Agenda
Overview of our Business
Stainless Steel Materials Performance Growth Options Competitive Advantages
Slide 12
SSM growth options in the pipeline
CW Africa Exploration Escondida 3rd Conc
CMSA Pyro Expansion
Puma
Blackwater UG
NWS WFGH Nimba
DRC Smelter
RBM
Thebe
Olympic Dam Expansion 3
Wards Well
Knotty Head
Mount Keith Talc
Cannington Life Ext
Potash
Gabon
Mt Arthur Coal (MACX)
Olympic Dam Expansion 2
CMSA Heap Leach 2
Mad Dog West
Red Hill UG
Olympic Dam Expansion 1
WA Iron Ore Quantum 2
Caroona
Scarborough
Kennedy
Corridor Sands
HPX3
Shenzi Nth
WA Iron Ore Quantum 1
Browse LNG
Saraji Exp
Angola & DRC Newcastle Third Port Exp
Boffa/Santou Refinery
Escondida Moly
GEMCO
Exp
Macedon
Samarco 4
Ekati
Goonyella Expansions
Resolution
Eastern Indonesian Facility
CMSA Heap Leach 1
Antamina Exp
Peak Downs Exp (Caval Ridge)
WA Iron Ore RGP 6 Neptune Nth
New Saraji
Potash-Jansen
Maruwai Cerrejon Opt Exp Stage 2
Angostura Guinea Gas Alumina
Mt Arthur Coal UG
WA Iron Ore RGP 5
Navajo Sth
NWS Bakhuis CWLH
Perseverance Deeps
Daunia
NWS T5
Mt Arthur Coal OC (MAC20)
WA Iron Ore RGP 4
Atlantis North
Klipspruit
Kipper
Worsley E&G
GEMCO
Maruwai Shenzi Stage 1
Turrum
Alumar
Newcastle Third Port
Pyrenees
NWS Nth Rankin B
Douglas-Middelburg
NWS Angel
As at 14 August 2008 Proposed capital expenditure
£$500m $501m-$2bn $2bn+
Future Options
2009 2013 Feasibility Execution
CSG
SSM Other
Slide 13
Exploration focused on tier 1 opportunities
Norilsk Alliance
Colombia
Indonesia
Western Australia
Sulphide Exploration
Laterite Provinces
Brownfields exploration to expand our WA and Colombia production
Greenfields exploration of Tier 1 opportunities
Slide 14
Agenda
Overview of our Business
Stainless Steel Materials Performance Growth Options Competitive Advantages
Slide 15
BHP Billiton ranks as the No. 3 nickel producer
Production in year ending June 2008
(kt Ni)
350 300 250 200 150 100 50 0
294.0 253.8 167.9 117.1 116.3 54.3 54.2 37.2
Norilsk Nickel
Vale
BHP Billiton
Xstrata
Jinchuan1
Eramet
Sumitomo1
Anglo American
Source: Company Annual and Production reports. All production figures incorporate third party ore purchases where appropriate.
1 CRU.
Slide 16
Resources to fulfil our future growth aspirations
Ni contained
(mt)
30 25 20 15 10 5 0
25.1 22.1 11.9 9.7 8.2 2.6 2.3
Vale1
Norilsk Nickel2
BHP Billiton3
Xstrata4
Eramet (SLN)5
Rio Tinto6
Anglo American7
Resources Reserves
1 Reserves 2007 Annual report; Resources July 2007 Investor presentation. 2,4,5,7 2007 Annual reports.
3 Total; full details available in the BHP Billiton Annual Report 2008
6 2007 Annual report & May 2008 company presentation.
Slide 17
Our competitive advantages
Global Nickel Resources
(mt Ni)
100 75 50 25 0
(39%) (61%)
Sulphide Laterite
South East Asia
Significant expansion options around existing assets
Cerro Matoso
Nickel West
Operating know-how across all technologies
Both sulphide and laterite smelting and leaching process employed
Most recent experience with Ravensthorpe implementation
Proximity to customers and multi sourcing options
Source: BHP Billiton analysis
Slide 18
Technology is a critical success factor for the Nickel industry
Sulphide Ores – proven “simple” technology, but exploration driven
Mining Concentrating
Nickel concentrate Smelting
Matte Refining
Nickel metal (Co, Cu, PGM by-products)
Key considerations: Discovery
Mining / deposit depth/grade
Laterite Ores – known deposits, but technology and CapEx driven
Pyro: Mining Reduction
RKEF smelting Crude FeNi
FeNi refining FeNi
Key considerations: Ore type, Nickel grade and resource intensity
Energy cost
CapEx
Hydro: Mining
Leaching
Concentrating (PAL , AL , HL)
MHP / MSP Refining
Nickel metal
Key considerations:
Nickel grade and resource intensity
Sulphur / Acid cost
Infrastructure and CapEx
Slide 19
Key messages
Safely run 100% of our assets at 100% capacity, 100% of the time
Delivering on committed projects
Options for low cost stable operations
Sound long run margins
Substantial resource base
Superior technology advantages
Part of BHP Billiton and hence ability to invest countercyclical to nickel market.
Nickel West acquisition is value accretive
Slide 20
Australian Site Tour
Nickel and stainless steel market review
Stephen Williams
Marketing Director, Stainless Steel Materials
October 2008
Agenda
Demand and substitution Supply Outlook
Slide 22
Nickel and stainless steel market review
Stainless steel consumption is the key driver for nickel demand
Stainless steel and nickel are cyclical businesses with pronounced stocking and de-stocking cycles
Stainless steel demand is expected to remain robust over the long term underpinned by urbanisation and industrialisation of China and other developing economies
Nickel is a responsive market, increasingly influenced by supply
Slide 23
Stainless steel is the key driver of nickel demand
Nickel Use by Application
(CY 2007)
Other inc. Foundry 8%
Batteries 3%
Plating 8%
Non-Ferrous
14% Alloys
5% Alloy Steels
62%
Stainless Steel
Nickel improves durability and corrosion resistance of steel
Two main types of stainless steel:
Austenitic or nickel containing (200 and 300 series)
Ferritic or non-nickel containing (400 series)
The top 3 uses of nickel in stainless steel are:
Food Processing Equipment
Catering
Chemical Process Equipment
Source: CRU 2008.
Slide 24
Emerging markets are driving this global growth
Stainless Steel Production Growth
(CY 2007, kt)
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
Global CAGR 1998-2007: 5.9%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008F 2009F 2010F 2011F 2012F
China India Other Asia
Europe
Americas Others
Forecast
Stainless Steel Capacity Growth by Region
(%)
69% 7% 9% 8%
2003-2007
69% 17% 5% 8%
2008F-2012F China
India
Other Asia
Europe Americas
Source: CRU.
Slide 25
China’s self sufficiency in stainless steel production
China Import and Export
(‘000 mt)
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
Finished Production Consumption Net Import%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008F
(%) Net Import position
-5% 5% 15% 25% 35% 45% 55% 65% 75% 85% Source: BHP Billiton, CRU, Antaike, Macquaire.
Slide 26
Stainless steel is a cyclical business with pronounced stocking and de-stocking cycles
1. Global stainless steel production, quarterly
2. 1993-2009, y-o-y change %
-15% -10% -5% 0% 5% 10% 15% 20% 25% 30% % Change
Quarterly moving average
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008F 2009F
Mining / Refining
Stainless steel mills
Distributors/Semi-Fabricators
End users
Source: CRU Analysis.
Slide 27
The high and volatile prices encouraged substitution
Stainless Market Share
(%)
0 3005 4005 2005 10 20 30 40 50 60 70 80
2001 2002 2003 2004 2005 2006 2007 300 series stainless steel is durable, weldable and
formable and is the workhorse of the stainless steel industry
We expect the rate of substitution to decline as ‘easier’ substitution has taken place already
TAKE A VACATION FROM PLASTIC
700 YEARS
Plastic begins to decompose
Source: ISSF.
Slide 28
Emerging economies will underpin stainless steel over the long term
Stainless Steel Consumption
(kg per capita)
0 5 10 15 20 25
China
2028 2015
India
Other Asia
2028
2015 2007
Europe 2007 2015 2028
America
2007 2015 2028
0 5,000 10,000 15,000 20,000 25,000 30,000 GDP in US$ per capita
Source: SMR.
Slide 29
Agenda
Demand and substitution Supply Outlook
Slide 30
LME stocks have risen but remain low in historical terms
Number of Weeks of Consumption & LME Stocks (kt)
0 20 40 60 80 100 120 140 160 180 Total LME
No. of weeks consumption
Total market additions in 2007
New supply has been dominated by Nickel Pig Iron
(Number of weeks consumption)
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
NPI (84%)
CY 2007 (112kt)
0 1 2 3 4 5 6 7 8 9 10
Source: CRU; BHP Billiton Analysis.
Slide 31
Nickel pig iron responded as supply source and is now declining
Ore imports by origin (mt)
0.0 0.5 1.0 1.5 2.0 2.5
Wet Season
Wet Season
Recent decline in supply
Jan-06
Jan-06
Mar-06 Apr-06
May-06 Jun-06
Jul-06 Aug-06
Sep-06 Oct-06
Nov-06 Dec-06
Jan-07 Feb-07
Mar-07 Apr-07
May-07 Jun-07
Jul-07 Aug-07
Sep-07 Oct-07
Nov-07 Dec-07
Jan-08 Feb-08
Mar-08 Apr-08
May-08 Jun-08
Jul-08
Source: China Customs.
Slide 32
Higher cost supply is coming under pressure as the marginal producer is squeezed (>120ktpa announced)
Nickel C1 cost and price
(US$/lb)
Avg 4th quartile C1 costs LME price (avg annual)
0 2 4 6 8 10 12 14 16 18
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008F
Existing operations suspended:
Falcondo (11ktpa)
Ufaley/Rehz (5ktpa)
Cawse (8ktpa)
Radio Hill (2ktpa)
Blair Mine (2ktpa)
Yulin Wei, Xi’an (8ktpa)
NPI (20-30ktpa)
Projects deferred:
Murrin Murrin HL (10ktpa)
Tati Activox Refinery (22ktpa)
Scholl B2 (3ktpa)
Bah Phuc (4ktpa) (suspended)
Windarra (5.5ktpa)
Nunavik (12ktpa)
Kylyahti (3ktpa)
Source: Brook Hunt; BHP Billiton analysis.
Slide 33
Future supply growth:
Disruption a feature of new supply growth?
Expected future production from committed and highly probable nickel developments (kt) Ni
300 250 200 150 100 50 0
2006 2007 2008F 2009F 2010F 2011F 2012F
Greenfield projects (Q4 06)
Greenfield projects (Q3 08)
Forecast production Q4 2006
Forecast production Q3 2008
1 year delay
Upcoming projects include:
Vale (Onça Puma; Goro)
Xstrata (Koniambo)
Anglo American (Barro Alto)
Sherritt/Sumitomo/Korean Consortium (Ambatovy)
Ramu (CMCC/Jinchuan/Jien/Jisco)
Source: BHP Billiton Analysis
Slide 34
All major Nickel projects have experienced significant capital cost escalation. Most of them yet to be completed
Nickel Project Capital Intensity
(US$ / tonne of Nickel)
70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
Onça Puma RNO Ambatovy Ramu Koniambo Goro
Quasi-Brownfield
106% ?
110% ü
True Greenfields
83% ?
73% ?
47% ?
75% ?
Original Estimate
Latest Public Estimate
Escalation driven by:
Shortage of skilled workers resulting in cost escalation
Higher contractor margins
Shortages in global manufacturing resulting in cost escalation and increased schedule
Increasing raw material prices
Source: SSM for Ravensthorpe, and public disclosures for other projects. The “?” indicates that the project has not been completed yet.
Slide 35
Agenda
Demand and substitution Supply Outlook
Slide 36
Short term cyclical swings and supply side correction
2003 2004 2005 2006 2007 2008F 2009F
Global Supply (kt) 1286 1276 1281 1346 1432 1407 1497
% change (0.9)% 0.4% 5.1% 6.4% (1.8)% 6.4%
Global Consumption (kt) 1239 1256 1239 1399 1335 1384 1450
% change 1.4% (1.4)% 12.9% (4.6)% 3.7% 4.7%
Surplus/(Deficit) 47.5 19.1 41.3 (53.6) 97.2 22.7 47.4
World Nickel Supply & Demand Balance
(‘000 Tonne)
120 100 80 60 40 20 0 -20 -40 -60 -80
47.5 41.3 19.1
(53.6)
97.2 47.4 22.7
2003 2004 2005 2006 2007 2008F 2009F
Source: CRU.
Slide 37
Key messages
Stainless steel and nickel are cyclical commodities with a strong underlying growth trend
They are responsive markets as evidenced by the rapid introduction of nickel pig iron and now a supply side correction
Stainless steel and nickel growth continues to look promising in the long term due to the emerging market effect
Slide 38
Australian Site Tour Nickel West
Wayne Isaacs
Nickel West President and Chief Operating Officer
October 2008
Agenda
Key Messages
Sustainability
Business Overview
Growth Options
Slide 40
Key Messages
Operating assets safely
Focussing on efficiency and reducing costs
Exploring to find reserves to support long-life assets
Assessing next phase of projects
Slide 41
Agenda
Key Messages
Sustainability
Business Overview
Growth Options
Slide 42
Safety and Health – Nickel West
Nickel West – Total Recordable Injury Frequency Rate¹
(TRIFR)
25 20 15 10 5 0
FY05 FY06 FY07 FY08
A safety culture driven by
Fatality prevention (FRCP)
Strong leadership
Safe behaviours and equipment
Compliance, audit and governance
Health and fit-for work programs
Fatigue management
Alcohol and drug testing
Atmospheric monitoring
Healthy lifestyle promotions
1. Excludes Ravensthorpe.
Slide 43
Sustainable environment and community programs
Sustainability priorities include :
Increased indigenous employment
Indigenous education and training
Community development partnerships
Active employee community participation teams
Uniform certified environmental programs
Understanding our energy footprint
Slide 44
Agenda
Key Messages
Sustainability
Business Overview
Growth Options
Slide 45
Nickel West – Operations
World’s third largest producer of nickel-in-concentrate
Produced 107 kt1 contained nickel in FY 2008
Approximately 3,500 employees and operational contractors
Nickel West’s business
Mining, concentrating, smelting, and refining
A major operation is being ramped-up at Ravensthorpe
Mount Keith Nickel Leinster Nickel Kalgoorlie Nickel Smelter Kambalda Nickel Concentrator
Fremantle Port Kwinana Nickel Refinery Esperance Port Ravensthorpe Nickel
1. Includes production from Ravensthorpe.
Slide 46
Nickel West flowchart
Nickel-in-concentrate
Mount Keith Operation
30-45 ktpa
Mount Keith concentrator
Leinster Nickel Operation 40-50 ktpa Leinster concentrator
Third Party Mines
35-45 ktpa
Kambalda concentrator
Mixed Hydroxide Product
Ravensthorpe Nickel Operation
Up to 50 ktpa
Nickel-in-concentrate sales 0-30 ktpa
Kalgoorlie Nickel Smelter
100-110 ktpa
Kwinana Nickel Refinery
Nickel-in-metal sales 60-70 ktpa
Nickel-in-matte
Nickel-in-matte sales 30-50 ktpa
Yabulu Refinery
Note: Indicative production – varies depending on mining profile
Slide 47
Leinster Mines and Concentrator
Mines
Perseverance underground – ore reserves of 11 mt @ 1.85% Ni¹ – life to ~2014
Satellite operations now in production
Cliffs
Rocky’s Reward
Concentrator
Mill throughput ~3 mtpa
Recovery of ~85%
Production
40-50 ktpa nickel in concentrate @ ~11.5% Ni grade
Leinster Mine Feed
(Ore kt) 3,000 2,500 2,000 1,500 1,000 500 0
FY06 FY07 FY08
1. Total; full details available in the BHP Billiton Annual Report 2008
Slide 48
Kambalda Nickel Concentrator
Concentrator
Mill throughput >1.6 mtpa
35-45 ktpa Ni in concentrate @ ~13% Ni grade
Output driven by third party resource base
Partnerships with third party producers to sustain a viable future for Kambalda
KNC Mine Feed
(Ore kt) 2,000 1,500 1,000 500 0
FY06 FY07 FY08
Slide 49
Kalgoorlie Nickel Smelter
Smelter
750 ktpa concentrate throughput capacity
Furnace re-build June to Sept 2008
Completed ahead of schedule
Successful ramp-up
Improved operational flexibility
Positions smelter for next 15 years
Slide 50
Kwinana Nickel Refinery
Refinery
Based on Sherritt-Gordon technology
Efficient, low cost producer
Premium briquette product
Competes with global refineries for matte
Furnace rebuild an opportunity for KNR shutdown
Work set up the refinery for four years’ operation before the next planned shutdown
Production
65-70 ktpa nickel metal
(95% of product in the form of LME briquettes)
Slide 51
Historical Nickel West Production
Saleable Nickel Production (ktpa)
120 100 80 60 40 20 0
101 62 38 1
105 54 50 1
107 65 37 5
FY2006 FY2007 FY2008
Metal Ni intermediates Ni in con Export
Notes: Nickel intermediates in FY2008 includes production from Ravensthorpe.
Slide 52
FY2008 Cost Structure
Cash operating cost (%)
Others Royalties Chemicals / Additives Contractors Labour Fuel and Energy Maintenance TPP
12% 2% 4% 3% 9% 14% 44% 12%
Key value drivers
Volume
Cost reduction
Excludes RNO (In ramp-up)
90% of cost base is in $AUD (excluding TPP)
Slide 53
Input Cost Pressures
Salaries & Wages (%)
135 125 115 105 95
FY06 FY07 FY08
Diesel (%)
175 155 135 115 95
FY06 FY07 FY08
Electricity (%)
135 125 115 105 95
FY06 FY07 FY08
Maintenance (%)
135 125 115 105 95
FY06 FY07 FY08
Xanthate (%)
135 125 115 105 95
FY06 FY07 FY08
Explosives (%)
135 125 115 105 95
FY06 FY07 FY08
Slide 54
Agenda
Key Messages
Sustainability
Business Overview
Growth Options
Slide 55
Delivering on our commitments
Status of projects discussed at your last visit
Project
Cliffs
Rocky’s Reward II Mount Keith Stage H Smelter Rebuild Ravensthorpe Perseverance Deeps Yakabindie
Status
Operational Operational Operational Operational Ramp Up Definition Under study
Slide 56
Growth options
Keeping focus on finding and acquiring resources to fill our growing downstream capability
Prioritising our focus on developing existing resources
Building on our technology processing advantages
Our strategy is to
Leverage exploration success
Capture value of technology advances
Plan for growth to cope with long term demand
Slide 57
Exploration strategy – building resources
Exploration Spend (US$m)
45 40 35 30 25 20 15 10 5 0
4.4 17.6 40.0
FY2006 FY2007 FY2008
Five-year exploration program
Producing promising results
Focus on low-risk brownfields targets near existing operations
Currently second full year of program
Work started on converting to resource
Program meeting BHP Billiton strategic objectives
Slide 58
Leinster Asset Life Extension
Perseverance Deeps
Extension of Leinster beyond 2014
Follows development of Cliffs and Rocky’s Reward
Feasibility study to be completed 2H FY 2009
Slide 59
Extension of Kambalda opportunities
Objectives
Extended life and output of Kambalda region
Successful long term partnerships
Majority of contracts have options to 2019
Current Status and Future Growth
Concentrator progressively de-bottlenecked to more than1.6 mtpa capacity
Kambalda exploration started July 2008
Third party producers have enjoyed significant exploration success
Slide 60
Conclusion
Operating assets safely
Focussing on efficiency and reducing costs
Exploring to find reserves to support long-life assets
Assessing next phase of projects
Slide 61
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: 3 November 2008 | By: | Jane McAloon | ||||
|
| ||||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||