BHP Billiton Iron Ore. Asset Development Projects

Transcription

1 BHP Billiton Iron Ore Asset Development Projects September 2003

2 Agenda Mining Area C Project Area C to Yandi Rail Project Products and Capacity Expansion (PACE) Project System Capacity Increases to 100Mtpa Long Term Expansion (LTE) Study 2

3 Port Capacity Expansion $650M Area C/Yandi Rail $160M Mining Area C $246M 3

4 MINING AREA C General Arrangement Complex Washdown Heavy Vehicle Hardstand Workshop Refuelling Station Laydown Yard Laydown Area 33kV Transmission Line Drainage Channel HV Access Road Switch Yard 4 ROM Pad Plant Control Room Diversion Drain Final Pit Outline 13 September Rev. 2 MINE PIT MC03 Haul Road Pit Access East Primary Crushing Secondary Crushing Crusher Substation MC04 MC01 MC02 Main Plant Substation Transfer Station TS10/11 CRUSHING & SCREENING PLANT MC05 MC06 MC07 MC10 Mine Water Tank LUMP STACKER ST01 Dust Collector Scalping/Product Screening Sample/Prep Laboratory Sample Stations MC11 RECLAIMER RC01 Excess Lump Stockpile MC07 MC14 MC15 Transfer Station TS14/15 Transfer Station TS7/8 Lump Stockpile MC08 Excess Lump Stockpile Lump Stockpile Fines Excess Stockpile Lump Stockpile Lump Stockpile Fines Fines Stockpile Excess Fines Stockpile Loadout Substation Loadout Control Room Stockpile Excess Fines Stockpile TRAIN LOADOUT ST01 Tie Down Rail Loop Excess Fines Stockpile ST02 Tie Down FINES STACKER ST02 Gt Northern Highway Airport Village RC01 Tie Down Minesite Pit

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8 Asset Development Projects KPI s Financial KPI s Original Auth. Budget Current Auth. Budget Project Schedule KPI s Rail 1 st Ore Ship 1 st Ore from Finucane Island Facility Handover to Operations Project HSEC KPI s - 100% (AUD$M) - 100% (AUD$M) Fatalities LTIFR Level 3 Environmental incidents Indigenous Employment (% of site hours) IR Lost Time (% of total hours) Mining Area C Project Nov-03 N/A Dec-03 0 <2 0 5% 2-3% PACE Project N/A Feb-04 Mar-04 0 <2 0 5% 2-3% All projects are currently running ahead of schedule and under budget in A$ s and in US$ s 8

9 LTI s CI s CIFR Asset Development Projects Schedule / Cost / Safety Performance Project Milestones Project Approval Complete Nelson Point Commissioning Rail track available for Commissioning Train Complete Commissioning Area C Rail 1 st ore to Nelson Point from Area C Ship 1 st ore ex Nelson Point New Shiploader delivered to Finucane Island Ship 1 st ore ex Finucane Island Planned 22 Mar Jul 03 1 Sep Sep 03 1 Oct Oct Nov Feb 04 Actual 22 Mar Jul Aug Aug Aug Sep Oct Jan 04 Current Budget Progress Manhrs LTIFR Area C Rail PACE 245, , ,179 99% 99% 70% Area C Rail 1,092,152 1,109, TOTAL 1,052,944 85% PACE 1,674, TOTAL 3,875,

10 Mining Area C Project Crushing Plant 10

11 Mining Area C Project Screening Building 11

12 Mining Area C Project Reclaimer 12

13 Mining Area C to Yandi Railroad Project Bulk Earthworks Cut 28 Length 390m Batter Angle 3:1 Depth 35m 13

14 Mining Area C to Yandi Railroad Project Yeerabiddy Creek Height 45m Fill Volume 440,000bcm Culverts 5 No. 900dia x 165m long 14

15 Mining Area C to Yandi Railroad Project Marillana Creek Bridge 15

16 1 st train from Mining Area C 16 August

17 BHP Billiton Iron Ore PACE Project September 2003

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21 BHP Billiton Iron Ore Capacity Increases September 2003

22 Port Capacity Improvements 81Mt 100Mt Mt Original MAC/PACE announcement 5 OE & other initiatives 6 Conversion to wet metric tonnes Goldsworthy tonnes CY2004 port capacity 22

23 BHPB WA Iron Ore System Capacity 77mt Finucane Island Boodarie Iron PORT HEDLAND Nelson Point 8mt Nimingarra Yarrie 100 wmt System Capacity $USm Yandi Mine HAMERSLEY RANGE NEWMAN Jimblebar Port Rail Mine 23

24 BHPB WA Iron Ore System Capacity 77mt 88mt PACE 95mt Export + 5mt HBI Finucane Island Boodarie Iron Mining Area C 10mt PORT HEDLAND Nelson Point Tertiary crushing, screening, stockpiling & shipping Yandi Mine 80mt HAMERSLEY RANGE 8mt NEWMAN Nimingarra Yarrie Jimblebar 2 rakes 7 sidings 8 locomotives 100 wmt System Capacity Port Rail Mine $USm

25 BHPB WA Iron Ore System Capacity 77mt 92mt PACE 95mt Export + 5mt HBI Finucane Island Boodarie Iron Conveyor + OHP (+3mt) Mining Area C 10mt Secondary crusher (+5mt) PORT HEDLAND Nelson Point Tertiary crushing, screening, stockpiling & shipping Yandi Mine 80mt 84mt HAMERSLEY RANGE 8mt NEWMAN Nimingarra Yarrie Jimblebar 2 rakes 7 sidings 8 locomotives 1 rake wmt 100 System Capacity Port Rail Mine $USm

26 BHPB WA Iron Ore System Capacity 77mt 100mt PACE 95mt Export + 5mt HBI Finucane Island Boodarie Iron Conveyor + OHP (+3mt) Mining Area C 10mt Secondary crusher (+5mt) PORT HEDLAND Nelson Point Tertiary crushing, screening, stockpiling & shipping Yandi Mine 80mt 84mt HAMERSLEY RANGE 8mt NEWMAN 92mt Nimingarra Yarrie Jimblebar 2 rakes 7 sidings 8 locomotives 1 rake 1 rake 3 sidings 100 wmt System Capacity Port Rail Mine $USm

27 BHPB WA Iron Ore System Capacity 77mt 92mt PACE 95mt Export + 5mt HBI Finucane Island Boodarie Iron Conveyor + OHP (+3mt) Mining Area C 10mt Secondary crusher (+5mt) PORT HEDLAND Nelson Point Tertiary crushing, screening, stockpiling & shipping Yandi Mine 80mt 84mt HAMERSLEY RANGE 8mt NEWMAN 92mt Nimingarra Yarrie Jimblebar Goldsworthy closure FY05 FY06+ (-8mt capacity, mine, rail, wharf) 2 rakes 7 sidings 8 locomotives 1 rake 1 rake 3 sidings 100 wmt System Capacity Port Rail Mine $USm

28 Timing of Capacity increases Mining Capacity: Additional 5Mt at Area C 1 st Qtr CY2004 Additional 3Mt at Yandi (IOWA) 1 st Qtr CY2004 Rail Capacity 2 nd rake (+ 4Mt) 4 th Qtr CY rd rake (+ 4Mt) 1 st Qtr CY2004 Extra 3 sidings (+ 4Mt) 1 st Qtr CY th rake (+ 4Mt) 2 nd Qtr CY

29 BHP Billiton Iron Ore Long Term Expansion Study September 2003

30 LTE PFS Global Crude Steel Production Base Case 1200 Mt Rise of Europe Rise of Japan Rise of Other Asia Rise of China Global Effective Capacity* CIS/EE China ROW Source: WSD, BHPB *Expected output 1yr after price rise EU Japan USA 30

31 LTE PFS Asian Seaborne Iron Ore Demand Asia's Iron Ore Imports Other Asia China Taiwan Korea Japan Other Asia Step Jump in PRC Demand Post 99 China Million WMT 150 Korea Taiwan Japan Calendar Year

32 LTE PFS Catalyst / Initiator Rapid, unprecedented and anticipated long-term sustainable increase in demand for Iron Ore that exceeds current supply capacity of major seaborne traders Growth centred on China Originally based on 120 Mtpa capacity with 40:40:40 split from Newman : Yandi : Area C. Expansion study will now consider possibilities closer to 140 Mtpa or beyond 32

33 LTE PFS Purpose To select a single go forward case for long term expansion based on 3 concept studies Assessment of the concepts will be carried out on all parameters (not only NPV) in accordance with BHPBIO s Investment System Standard for a PFS PACE Stage 2 Concept Study Spectrum Concept Study Long Term Expansion Pre-feasibility Study Case 1 Case 2 Case 3 Objective evaluation of required scope to achieve financial & production targets Single Go-Forward Case 33

34 LTE PFS The Cases Case Case 1 Case 2 Case 3 Others Description Two Flexible Ports Based on a four car dumper / four berth port configuration at Port Hedland. Includes installation of Car Dumper 4 (CD4) and upgrading of Berth C at Finucane Island. Three Independent Ports Maintains three car dumpers and three export berths. The port material handling system is modified and expanded to maximise use of the three shiploading berths, by revising operating practices and dedicating stockyards to shiploaders. Spectrum Fundamentally changes the existing operation with crushing and screening of high grade ores undertaken at Newman. Lumps and fines for each product produced on grade at each mine hub. Hybrids adopting the best ideas in all options 34