western australian mining operations
TRANSCRIPT
James Shaw, Vice President Mining
Iron Ore
Western Australian Mining OperationsPresentation to Analysts June 2005
Business Analysts Visit June 2005 2
MININGContinuing to Grow our Mining Capability
Business Analysts Visit June 2005 3
Visitor Safety Induction
Welcome to BHP Billiton Iron Ore Mining Operations1. Stay with your BHP Billiton escort at all times.2. Reflective vests, gloves and safety helmets are provided and you will be
advised when to wear them.3. Safety glasses are provided. You will be advised when it is necessary to
wear them. Safety glasses will fit over prescription glasses.4. Use handrails when using stairs.5. Keep clear of all machinery.6. In the event of an evacuation or emergency stay with your BHP Billiton escort 7. BHP Billiton has a NO-SMOKING policy inside buildings and vehicles.8. You are most welcome to use cameras.
Enjoy your visit with us today
Business Analysts Visit June 2005 4
LTIFR & CIFR Whaleback and Contract Mines
0
5
10
15
20
25
YEM97 YEM98 YEM99 YEJ00 YEJ01 YEJ02 YEJ03 YEJ04 YEJ05TO DATE
Whaleback LTIFR Contract Mines LTIFR CIFR All Mines
NSCA SMP
Consult
SSRG
D&A
SAO
SAO
PPS
DetailedInvestigation
ICAM
D&A
7.5
20.6
Standardisation
NewD&A
ZeroHarm
JHA,Take5SAO
LTIF
R &
CIF
R R
ate
Business Analysts Visit June 2005 5
Behavioural Safety
LTI
MTI
First Aid
Near Miss
Unsafe Acts
Upper Management Commitment
Current Learning ExposureStatutory ObligationsSafety SystemsImproved Practices
BEHAVIOURTrainingValuesRecognition
Potential knowledge
30 X incident reports to injuries
CI
F
Business Analysts Visit June 2005 6
Mining Strategic Focus: 2003 - 2008
Key Points• Achieve / exceed goals through good planning• Think beyond short term / regional horizons• Gain strategic benefits• People – attract, retain, foster direct relationships• Organisation consistency• Secure support for business decisions• Pace of restructuring• Keep it simple• Growth
Business Analysts Visit June 2005 7
Mt. Whaleback Pit
8 South Pushback
4 N Pushback Centre West PitCurrent floor at
Bench 27
East PitCurrent floor at
Bench 27
Ore Body 29Crushing/ Train loading
facilities
Beneficiation Plant
Current Pit Dimensions• Length: 5km• Width: 1.2km•Depth : 400m
Administration
Business Analysts Visit June 2005 8
Mt. Whaleback Northwall Waste Removal Complete –Project China
High Grade
Waste
23 Mt approx
Business Analysts Visit June 2005 9
Drills1 x IR DM-M3 (251mm)3 x IR DM-H4 (311mm)
Shovels & Excavators1 x P & H 2800 2 x O & K RH2001 x O & K RH170New 2 x R996 ShovelNew 1 x R994 BackhoeNew 1 x R995 ShovelTrucks17 x CAT 789B 189T13 x CAT 793B 219TNew 10 x CAT 793C 230T
Loaders3 x CAT 9941 x CAT 992DNew 2 x CAT 992G
New Mining Equipment in 2005 to Meet Growth
LIEBHERR R996
CAT 230T
Business Analysts Visit June 2005 10
Industry Ave.
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Dec99
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Av. life (month) Av. life (12 month m.a.) Tyres scrapped (month)
No. Tyres ScrappedAverage scrap life (km)
YEJ06 TARGET
Excellent Tyre Management(Average Scrap Life trends vs Industry Average)
Industry Ave.
Business Analysts Visit June 2005 11
Tyre Management - Ongoing Improvement (OE)• A dedicated road crew, extra water cart, 2 x CAT998 clean-up machines
• Trials of various road binding agents
• Otraco fitter coverage 24 hours
• Incident report raised for each tyre loss
• Independent tyre and road maintenance report all mines
• Tyre awareness sessions each shift quarterly
• Tyre awareness posters updated monthly
• Yearly goals, performance reviews include personal responsibilities on tyre management
Business Analysts Visit June 2005 12
Bene Plant Throughput YTD FY05 (Dry Tonnes Basis)
Feed (58.91%Fe) 7.2Mdt
Product (65.03%Fe) 5.5Mdt
Waste (34.83%Fe) 1.0Mdt
Tailings (44.04%Fe) 0.7Mdt
Separation
in
Concentrator
To Loadout Tunnel
To Waste Dump
To Tailings Dam
Business Analysts Visit June 2005 13
New Resource Development - Orebody 18
October 2004 - Board approval as part of RGP2February 2005 - Construction commencedFebruary 2005 - BGC Contracting awarded pre-strip contract March 2005 - Pre-strip contract commenced and comprises
6.1 million tonnes• Initial plant capacity will be 8mtpa increasing to 12mtpa• Plant construction and pre-stripping progressing to schedule
Business Analysts Visit June 2005 14
Yandi - Central 4/5 Pit
Access to IOWA Crusher
Eastern 2 Pit
-partially backfilled
Area C Rail Spur
Yandi 1 Rail Loop
OHP1 and loadoutYandi Office
Business Analysts Visit June 2005 15
Yandi Central 1
Overland Conveyor
IOWA Primary Crusher
C1 infilling
OHP2Western 4
Business Analysts Visit June 2005 16
Stacker & Reclaimer at Area C
Business Analysts Visit June 2005 17
0.000.200.400.600.801.001.201.401.601.802.00
Aug-
03Se
p-03
Oct-0
3No
v-03
Dec-
03Ja
n-04
Feb-
04Ma
r-04
Apr-0
4Ma
y-04
Jun-
04Ju
l-04
Aug-
04Se
p-04
Oct-0
4No
v-04
Dec-
04Ja
n-05
Feb-
05Ma
r-05
Milli
ons o
f Ton
nes
Actual Area C Feasibility Ramp-up
Accelerated Area C Ramp-upOre Production Mt
Ore Production Increased Three Fold vs Feasibility in 22 months.
18 day shut for crusher upgrade
RGP1Rail
constrained productivity
Business Analysts Visit June 2005 18
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40Au
g-03
Sep-
03Oc
t-03
Nov-
03De
c-03
Jan-
04Fe
b-04
Mar-0
4Ap
r-04
May-
04Ju
n-04
Jul-0
4Au
g-04
Sep-
04Oc
t-04
Nov-
04De
c-04
Jan-
05Fe
b-05
Mar-0
5
Milli
ons o
f Ton
nes
Actual Contract
Area C Mine – Total Mining Movement Mining Volume (MBCM)
Original Fleet:-3 x 785 1 x EX1900
+1 x 789
+ 3 x 789+RH120
+2 x 789
+2 x 789+RH170
+WL994+3 x 789Mining Volume Increased Four Fold vs
Contract during August 03 – May 05.
Business Analysts Visit June 2005 19
Goldsworthy Mining Leases
Business Analysts Visit June 2005 20
Significant WAIO Resource Base
• Mineral Resources / Ore Reserves at 30 June 2004
13234Yarrie
2,5787,053Total
9011,334Pisolite
5652,139Marra Mamba
-74Detrital (lump product)
1991,862Brockman high P
9001,410Brockman low P
Reserves (Mwt)Resources (Mwt)Ore Type
Business Analysts Visit June 2005 21
Resource Evaluation GroupJimblebar – W3
Business Analysts Visit June 2005 22
Resource Evaluation Group
60.0450kmReviewing42.5310kmCurrent
Expenditure A$M
Significant Drilling Program
Business Analysts Visit June 2005 23
Resource Evaluation Group – Strong Capability
• Workforce – 60% growth in drilling group with 40 geologists operating 16 shifts of drilling per day RC & DDH.
• 5 years of drilling planned at Yandi, Yarrie, Area C and Newman• New drilling technology is being developed to improve
geotechnical wall stability models at Mt Whaleback• Large scale drilling programs aimed at improving reserve
knowledge at– Mt Whaleback & surrounding satellite mines– Area C mine corridor– Yandi mine corridor
Business Analysts Visit June 2005 24
CAPABILITYBHP Billiton Iron Ore – Mining Engineers and Geologists
2003 2004 2005
Mining Engineers
Whaleback 18 19 22Contract Mines 6 9 10
Geologists
Whaleback 20 26 46Contract Mines 12 14 24
NB All data based on 30 June – end of financial year.
Mining Operations Improvement Initiatives
Business Analysts Visit June 2005 26
Iron Ore30/06/2003
Successful Business ImprovementDelivering significant financial benefits
• Total projects completed year to March 05 = 26• Business benefit to March 05 = $29.6m
Embedding the Six Sigma Philosophy
• Total OE coaches trained = 58• Total OE coaches in training = 6• Total Accredited OE coaches = 23• Total active OE coaches = 19 7 Mine
9 Port & Rail3 Perth
Business Analysts Visit June 2005 27
Status of Business Improvement in Mining GroupNumber of Improvement Projects
020406080
100
YEJ02 YEJ03 YEJ04 YEJ05Health and Safety
Cost
Efficiency
Product Quality
Planning
Community Relations
Tonnage and Growth Environment
HSE&C Integration
People Management
Business Analysts Visit June 2005 28
Business Improvement Focus (OE) - Tonnage Projects
Jimblebar Load Times
Reduce rake Loading times and Maximise Ore Car Capacity at Yandi 1 and 2
Reduce rake Loading times and Maximise Ore Car Capacity at Mining Area
Yandi Lump Mine to Market Strategy
Multiple projects aimed at optimising the Car Dumper bottleneck to exceed 110MTPa.
Business Analysts Visit June 2005 29
Back-up Slides
Business Analysts Visit June 2005 30
Navigator – Business Planning Alignment & Involvement
• Strengthening business planning through greater input from all work groups and OE processes
BHPBIORoad Map
Site Business
Plan
DepartmentBusiness
Plan
Individual& Team Goals
Navigator
• 69 sessions across all workgroups
• 737 participants • 5733 comments
collected and analysed
Business Analysts Visit June 2005 31
Navigator - Results
Count Comment By Key Driver YEJ06 Navigator Workgroup Session
0 200 400 600 800 1000 1200
Marketing
HSEC Integration
Product Quality
Tonnage
Growth
Cost
Community Relations
Planning
Environment
Health & Safety
People Management
Efficiency
• Efficiency– System /
Processes– Maintenance /
Equipment Availability
• People Management– Skills
Development– HR Administration
Issues
• Health & Safety– Safety
Management– Education /
Promotion– Risk Reduction
• Operating Excellence projects are under way with workgroups
Business Analysts Visit June 2005 32
Mt. Whaleback Ultimate Pit Design
Pit Control Office 690 mRlLowest Point 190 mRlTotal Depth ≈ 500 mLength 5 kmsWidth 2 kms
Crushers
Pit Control Office
N• Core ore source for
the next 20+ years
• Controls chemical and physical properties of the blend
Business Analysts Visit June 2005 33
Beneficiation Plant• Drum Capacity Increased – 340 to 550
tph/drum, 3.2 to 3.5 SG – May 1999
• Cyclone Circuit Upgrade – June 1999
• Replaced Cones Plant with Spiral Plant– March 2000
• Modified Chutes for Wet Feed Handling– November 2000
• Waste System Upgrade – higher tonnage/reduce spillage – June 2001
• Tailings System Upgrade – October 2001
• 2004 Operation and Maintenance Interface Improvement Strategies – Bene and High Grade
YEJ 1998 : 4.8MwtYEJ 2001 : 5.8MwtYEJ 2002 : 7.1MwtYEJ 2003 : 7.8MwtYEJ 2004 : 7.7Mwt
Business Analysts Visit June 2005 34
Orebody 25 & 23
Orebody 25– Flexible contractor mining operation– Operational flexibility – crushing/screening options
Orebody 23– Advanced pit development– Dewatering system being installed
Orebody 18– Commenced pre-strip
Satellite Orebodies Offer Blending Flexibility
Business Analysts Visit June 2005 35
Jimblebar – Wheelarra 4 Pit
– Flexible contractor mining operation– Ore handling plant capacity 8Mtpa– Ore reserves in excess of 100Mt– All ore reserves above water table– Low Phosphorus ore reserves
Business Analysts Visit June 2005 36
Bulk Ore Conditioning Sprays used to increase moisture and reduce overall dust levels.
Overall moisture conditioning levels of 3% for fines and 4% lump ores
Additional moisture controls are via train loadout, rail and port.
Area C – Moisture Control Program
Business Analysts Visit June 2005 37
Competent Person StatementThe information in this presentation that relates to Mineral Resources
and Ore Reserves is based on information compiled by R. Pasyar (MAusIMM) and P. Schultz (MAusIMM) who are employees of BHP Billiton.
R Pasyar and P Shultz have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 1999 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". R Pasyar and P Shultz consent to the inclusion in the presentation of the matters based on their information in the form and context in which it appears.