Newman BHP Billiton Iron Ore Value through productivity and growth Jimmy Wilson President, Iron Ore 11 March 2014
Key themes Strong steel production outlook continues to underpin iron ore demand Significant additions of low cost supply will flatten the cost curve Chinas environmental policies are leading to a preference for quality iron ore…
Strong demand growth for the next 10 years A further 1.2 billion people will urbanise Global crude steel production globally by 2030, with 240 million in China (million tonnes) Chinese crude steel production is expected 3,000 to…
Australia has led supply growth in recent years Annualised shipments of Australian, Brazilian Operation rate of Chinese private iron ore mines and Indian iron ore to China (%) (million tonnes) 600 100 Australian exports to China…
Significant low cost supply will enter the market Over the next five years supply growth is Incremental growth in seaborne imports and expected to exceed demand growth exports (million tonnes) The majority of supply growth will be…
We are well positioned as the cost curve flattens Cost curve for iron ore fines (US/t, nominal, CIF China equivalent basis) CY13 CY15 BHP Billiton will retain a favourable position on the cost curve Our competitive position…
We will benefit from demand for high quality ores Increasingly stringent pollution controls in Lump premium China are impacting steel producers (USc/dmtu) new, larger blast furnaces require 35 higher quality raw materials to…
Continuing strong production growth at WAIO Record WAIO production of 108 mt1 in WAIO production H1 FY14 (million tonnes, 100% basis) 240 Full year guidance upgraded to 212 mt1 during the period 160 Strip ratio has trended higher…
Accelerated delivery of the Jimblebar mine New Jimblebar mine was completed in late CY13 with first production delivered six months ahead of schedule Relocatable crushers deployed to commission the stockyard and train load out…
Integrated supply chain approach to productivity Mines Rail Port Pits Ore Handling Yards Train Load Outs Rail Car dumpers Stockyards Shiploaders & Plants berths Current system constraint Moving to Port Key productivity levers…
Unlocking shareholder value through productivity Sustainable operational improvement is the Iron Ore productivity gains2 (US billion) highest value adding thing we can do 0.6 Integrated remote operations centre at WAIO 0.3 is…
Capital efficient growth of WAIO system capacity We can grow system capacity towards 260270 mtpa without the requirement for an additional mining hub or major port and rail infrastructure Mines Rail Port The new Jimblebar mine…
Progressive upgrades to increase port capacity Shiploader replacement project Replacing two shiploaders at Nelson Point at a cost of US301 million (BHP Billiton share) Commissioning scheduled for H2 CY14 Will increase the…
Key themes Strong steel production outlook continues to underpin iron ore demand Significant additions of low cost supply will flatten the cost curve Chinas environmental policies are leading to a preference for quality iron ore…
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