BHP Billiton Iron Ore Western Australia. Iron Ore. Mining Operations. Phil Price Vice President Integrated Planning

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1 BHP Billiton Iron Ore Western Australia Mining Operations Phil Price Vice President Integrated Planning Iron Ore

2 Visitors Safety Induction Office Area 1. In an emergency - a siren will sound 2. Stay with your escort at all times 3. Evacuate building through main entrance 4. Muster point is in car park adjacent to front door 5. We have a no-smoking policy inside buildings Page 2

3 Summary 7 mines producing approx 106 Mtpa; 6 mines contract operated: BHP Billiton WAIO performs mine planning and scheduling - Contractor provides statutory role of Registered Manager; Total productive movement ~ 300 Mtpa; 2800 mining employees (inc full time contractors); Integrated system: mine/rail/port. OB OB Page 3

4 Continuous Improvement in Safety Performance Continued development of One Business approach to HSEC systems and processes. Focus areas: - Leadership - Behavioural based systems Programs & actions: - Take 5/JHA s - Stop for safety - Risk assessments -Fit for work/life (fatigue management) - 15 HSEC Standards Safety - 12 M onth Rolling TRIFR 16 Actual 2006 YTD 12 40% reduction in TRIFR during FY06 last quarter was a record low of Jul-05 Sep-05 Nov-05 Jan-06 M ar-06 M ay-06 Page 4

5 Production History since Million Wet Tonnes OFR Whaleback+OB29/30/35 Bene OB23/25 Jimblebar Yandi Goldsworthy Area C Page 5

6 Total Integrated System Approach Mines Rail Dumping to Stacking Reclaiming To Shiploading Shipping Stockpile Surge Queue of Ore cars Stockpile Surge Queue of Vessels Dynamic simulation modelling is necessary to understand, optimise and improve our integrated process Models developed and enhanced over a period of about 14 years Page 6

7 BHP Billiton WA Iron Ore Production Distribution YEJ 2005 Sales Total = 104Mt (100% basis, wet metric tonnes) Dwt % Fines Lump Goldsworthy 7% MAC 19% Fe Silica Alumina Phos LOI Yandi 39% Newman 35% Page 7

8 Integrated Production Process Creating the Perfect Blend 75% 70% Fe % 65% 60% 55% 50% MINE RAIL PORT Page 8

9 8 High Quality Products From Numerous Ore Sources Yandi 1 Yandi 2 OB 25 OB 29/30 Whaleback Jimblebar OB 18 Yarrie Nimingarra MAC TM Fines Fines & Lump Fines & Lump High Grade Ore -100mm Bene Ore -100mm Crushed Ore -100mm Crushed Ore -150mm Crushed Ore -150mm Fines Lump BLENDING Rail to Nelson Point Rail to Nelson Point Rail to Finucane Island Rail to Nelson Point Crushing and Screening Crushing and Screening LRP LRP LRP Fines Lump Fines Lump Fines Lump Fines Lump Page 9

10 Newman Joint Venture Process Flow WHALEBACK MINE CONTACT ORE CRUSHING & SCREENING BENE PLANT -100MM Ore HIGH GRADE CRUSHING -100MM Ore OREBODY 29/30/35 OREBODY 23/25 CRUSHING & SCREENING Lump & Fines JIMBLEBAR CRUSHING & SCREENING -100MM Ore OREBODY 18 CRUSHING -125MM Ore WHALEBACK HIGH GRADE LOADOUT STOCKPILES LOADOUT STOCKPILES LOADOUT STOCKPILES LOADOUT STOCKPILES RAIL -6.3MM CRUSHING & SCREENING 31.5 X 6.3MM PORT HIGH GRADE FINES STOCKPILE HIGH GRADE LUMP STOCKPILE Continuous Stockpile Management System Nelson Point LUMP RESCREENING SHIP Page 10

11 Continuous Stockpile Management System Diverse ore grades at mines Computerised decision support system Intelligent sequencing of trains from mines %Al2O3 Lump On-grade lump & fines stockpiles at port Shipping Limits Continuous Stockpile Grade Most Recent Time (two month period) Page 11

12 Long Term Approach to Quality Control Quality control starts up to 25 years before mining BHP Billiton has consistently met customers quality expectations through 40 years of experience and leading edge mining practices Blending starts at the mine planning stage and includes ore types and their physical and chemical properties. Work Completed Exploration Infill Drilling Winzing Orebody Modelling Mine Planning Customer Samples Iron Making Testwork Quality Control Systems Up to 25 years Up to 10 years Up to 5 years Page 12

13 Growth Projects RGP2: Completion expected mid 2006 OB18 & OB25 OB18 Port & Rail RGP3: Approved October 2005 Area C Port & Rail Area C RGP4 & Feasibility Study expected to be complete Beyond in Evaluating a range of further options for expansion beyond 152mtpa Page 13

14 Iron Ore - Crucial to the Nation and the State The Petroleum and Minerals sectors are worth around A$40 billion to Western Australia; With a value of more than A$11 billion, Iron Ore is the largest individual sector, recently taking over from crude oil and condensate; BHP Billiton Iron Ore is a significant contributor to Australia and WA: A$ million* Federal Business Tax 451 State Royalties & Taxes 136 Local Rate Payments 2.3 Payments to Local Contractors 658 Community Contributions 3.7 TOTAL 1,215 Page 14 *H1 FY2006

15 Developing Partnerships to Enhance Newman Expect to invest more than A$100 million in the Pilbara over next decade based on internationally recognised social research Service Delivery: Developed MOUs with WA Government to address service issues (>A$12 million) Local Infrastructure: Newman Community Planning Process Look to 2020 A$3 million to improve local infrastructure, ie: playgrounds, parks, footpaths, etc. Alternative Economic Development & Capacity Building: Indigenous arts skills program developing retail businesses and export opportunities Upgraded Newman Visitor s Centre Page 15

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