Global Trends in the Natural Resource Sector

Transcription

1 Global Trends in the Natural Resource Sector C W Goodyear Chief Executive Officer 10 th St. Petersburg International Economic Forum St. Petersburg, 13 June 2006

2 1990 Industry structure BHP Rio Tinto Anglo Am. De Beers Gencor Alcoa Newmont Alcan Amplats Placer Dome Reynolds Driefontein WMC Barrick GFSA Noranda Minorco Inco Pechiney MIM In 1990 the top five companies accounted for less than 25% of total resource equity market value Market value of minerals industry US$150 bn Value of Top Five US$36 bn Market Cap. at end of 1990 (US$B) Slide 2

3 BHP Billiton is now the world s largest diversified resource company Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Prod Energy Coal Stainless Steel Materials Slide 3

4 10 year historical Chinese demand 000 tonnes 4,000 % 25% million tonnes % 350,000 35% 3,500 3,000 2,500 2,000 1,500 Chinese refi ned copper consumption % share of world refi ned copper consumption (right hand scale) 20% 15% 10% 300, , , ,000 Chinese crude steel consumption % share of global crude steel consumpti on (right hand scal e) 30% 25% 20% 15% 1, % 100,000 50,000 10% 5% Data: BHP Billiton 000 tonnes 0% % 0 0% '05 Data: IISI, CISA, BHP Billiton (NB: 05 is based on estimate figures as final figures are not yet released) 000 tonnes % % 8,000 25% Chinese primary nickel consumpti on % share of world primary ni ckel consumpti on (ri ght hand scale) 16% 14% 12% 10% 8% 6% 7,000 6,000 5,000 4,000 3,000 Chinese alumi nium consumption % share of global al uminium consumption (right hand scal e) 20% 15% 10% 50 4% 2% 2,000 1,000 5% Data: INSG 0% 0 Data: BH, CRU '05 0% Slide 4

5 Steel intensity of use Steel Intensity per Capita Kg Steel/Capita USA ( ) Japan ( ) S. Korea ( ) Taiwan ( ) China ( ) GDP/Capita (PPP, Jan US$'000) Slide 5 Source: World Bank, OECD (GDP at Purchasing Power Parity), IISI

6 Energy intensity of use Energy Use per Capita (Oil Equivalent tonnes) USA ( ) Japan ( ) S. Korea ( ) Germany ( ) Taiwan ( ) China ( ) Energy Intensity per Capita Slide GDP/Capita (PPP, Jan US$'000) Source: World Bank, OECD (GDP at Purchasing Power Parity), BP Statistical Review

7 industry structure Shenhua Alcoa Newmont Norilsk Barrick Xstrata AngloPlat Alcan Phelps Dodge Peabody Energy Teck Cominco Anglogold Falconbridge Cameco SPCC Freeport CVRD Rio Tinto Anglo American BHPB Market Cap. on 21 April 2006 (US$Bn) Today the top five companies account for over 40% of total resource equity market value Market value of minerals industry US$795bn Value of Top Four US$329bn Slide 7

8 Worsley DCP BMA Phase 2 Blackw ater CPP Deep inventory of growth projects Esc da Sulphide Zamzama Phase 2 WA Iron Ore RGP 2 Douglas Middelburg Atlantis North Yabulu Koala UG WA Iron Ore RGP 3 Samarco Alumar Worsley E&G NWS T5 B R O W N F I E L D NWS Angel As at 15 February 2006 Size of bubble indicates proposed capital expenditure; bold outer border signifies sanctioned project. WA Iron Ore RGP 4+ $US 200M Y Atlantis South Spence Ravensthorpe Neptune Stybarrow Pyrenees Maruwai Shenzi Alumina Base Metals Iron Ore Met. Coal Diamonds Energy Coal Nickel Petroleum Slide 8 G R E E N F I E L D

9 Escondida Slide 9

10 Mozal Slide 10

11 Olympic Dam World-class copper-uranium-gold-silver mineral resource. 34% of world s uranium reserves. BHP Billiton ideally placed to meet increasing demand for uranium. 000 tonnes of U 3 O Olympic Dam 1500 The world s top twenty uranium deposits by remaining resources Operating Mine Construction Undeveloped 0 Olympic Dam McArthur River Inkai Rossing Jabiluka Cigar Lake Aflease Rio Cristalino Itatiaia Ranger Yeelirrie Valhalla McClean Lake Kintyre Akouta Langer Heinrich Dieter Lake Beverly Arlit Gurvanbulag Slide 11 Source: Internal Global Deposit Database

12 BHP Billiton-Norilsk Nickel Alliance Alliance between world's largest diversified resources company and Russia's largest mining company Significant growth opportunities - geographical diversification for BHP Billiton and commodity diversification for Norilsk Nickel Initial focus on exploration - an area that has received insufficient attention in recent years A win-win relationship building on strengths of both partners: Norilsk Nickel is Russia s leading mining company and has the in-country knowledge and experience that is essential for success in Russia. BHP Billiton offers global exploration and project development expertise, world-class technology and global marketing organisation Slide 12

13 A sustainable future What BHP Billiton brings to Russia: A model based on developing and sustaining relationships with both local businesses and local communities A track record of in-country expansion and re-investment ensuring long term prosperity for all partners A long term partnership based on sustainable development Slide 13

14 Conclusion Market Needs + Norilsk Nickel + BHP Billiton + Communities = Win Win Win Win Slide 14

15 Global Trends in the Natural Resource Sector C W Goodyear Chief Executive Officer 10 th St. Petersburg International Economic Forum St. Petersburg, 13 June 2006