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Cumulative Impact AssessmentA Regional Approach in the Pilbara

Bryce Skarratt

Team Leader, Strategic Environmental Assessment

19 November 2014

Disclaimer

Forward-looking statements

This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events, conditions, circumstances and the future financial performance of BHP Billiton, including for capital expenditures, production volumes, project capacity, and schedules for expected production. Often, but not always, forward-looking statements can be identified by the use of the words such as “plans”, “expects”, “expected”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed or implied in the statements contained in this presentation. For more detail on those risks, you should refer to the sections of our annual report on Form 20-F for the year ended 30 June 2013 entitled “Risk factors”, “Forward looking statements” and “Operating and financial review and prospects” filed with the U.S. Securities and Exchange Commission. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. Forward-looking statements speak only as of the date of this presentation. BHP Billiton will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority. All estimates and projections in this presentation are illustrative only. Our actual results may be materially affected by changes in economic or other circumstances which cannot be foreseen. Nothing in this presentation is, or should be relied on as, a promise or representation either as to future results or events or as to the reasonableness of any assumption or view expressly or impliedly contained herein. Nothing in this presentation should be interpreted to mean that future earnings per share of BHP Billiton Plc or BHP Billiton Limited will necessarily match or exceed its historical published earnings per share.

No offer of securities

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any jurisdiction.

Reliance on third party information

The views expressed in this presentation contain information that has been derived from publicly available sources or provided by third parties and has not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.

Bryce Skarratt, Environmental Approvals, November 2014 Slide 2

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BHP Billiton Iron Ore in the Pilbara

Slide 3

• Operating in the Pilbara since the early 1960s

• Four major mining hubs

• More than 1,300 kilometres of rail

• FY14 production of 225 Mt (100% basis)

Bryce Skarratt, Environmental Approvals, November 2014

Source: BHP Billiton

Current development focus

• New rail spurs and main line expansion

• Associated infrastructure

Mudlark

Finucane IslandNelson Point

Yarrie

Mining Area C

Port Hedland

Port Hedland Newman Railway

Yandi

Newman

Jimblebar

South Flank Jinidi

Marillana

Existing hubsFuture optionsSuspended operations

~250km

Slide 4

Source: BHP Billiton

Bryce Skarratt, Environmental Approvals, November 2014

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There is potential for cumulative impacts in the Pilbara

Bryce Skarratt, Environmental Approvals, November 2014 Slide 8

Karijini National

Park

Newman

60 km

BHPB current

BHPB future

Other current

Other future

Source: B. Skarratt

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We have scoped the key aspects

Bryce Skarratt, Environmental Approvals, November 2014 Slide 9

Focus of the Cumulative Impact Assessment (CIA)

• Flora and vegetation

• Terrestrial fauna

• Subterranean fauna

• Key Environmental Assets

Source: BHP Billiton

We have developed an assessment approach

Bryce Skarratt, Environmental Approvals, November 2014 Slide 10

1

2

3

4

5

6

7

Determine the key assets, systems and species

Understand the driving and threatening processes

Determine the direct and indirect risks

Understand the linkages

Determine cumulative change

Define a regional management response

Overlay the risks

Source: B. Skarratt

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Determine the key assets, systems and species

Slide 11

• Define the area of interest

• Define what key environmental assets and listed species are

• Identify the relative significance and align management responses

• Define objectives and outcomes

Bryce Skarratt, Environmental Approvals, November 2014

Source: BHP Billiton

Determine the key assets, systems and species

Slide 12Bryce Skarratt, Environmental Approvals, October 2014

Source: BHP Billiton

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Determine the key assets, systems and species

Slide 13Bryce Skarratt, Environmental Approvals, October 2014

Source: BHP Billiton

Driving and Threatening Processes

Slide 14Bryce Skarratt, Environmental Approvals, November 2014

• Utilised baseline information and current knowledge

• Engagement with technical specialists

• Conceptual models:

• Key environmental assets

• Key listed species

• Considered a range of temporal scenarios

• Considered climate change

Source: BHP Billiton

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Driving and Threatening ProcessesUnderstanding the linkages

Bryce Skarratt, Environmental Approvals, November 2014

Source: Ecological Australia

Driving and Threatening ProcessesUnderstanding the linkages

Bryce Skarratt, Environmental Approvals, November 2014

Source: MWH

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Determine the direct and indirect risks

Bryce Skarratt, Environmental Approvals, November 2014 Slide 17

Combination of tools and approaches

• Typical mine approach

• Conceptual direct disturbance footprint

• ‘Standard’ assessment tools

– Dust

– Noise

– Visual etc.

• ‘New’ approaches – ecohydrological change potential

Source: BHP Billiton

Visual Assessment

Dust

Determine the direct and indirect risksVisual and Dust

Source: 360 Environmental

Source: Pacific Environment

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Determine the direct and indirect risksHydrological Processes

Slide 19

1. Regional ecohydrology

2. Ecological assets

3. Generic mine types

Surface water

Groundwater

Change assessment

Conceptualisation

Bryce Skarratt, Environmental Approvals, November 2014

Determine the direct and indirect risksHydrological Processes

Bryce Skarratt, Environmental Approvals, November 2014 Slide 20

Source: BHP Billiton

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Bryce Skarratt, Environmental Approvals, November 2014 Slide 21

Habitat modifiers

Overlay risk and determine change

Change quantificationBase map

Source: Ecological Australia

Define a Regional Management ResponseRegional Management Strategies

Bryce Skarratt, Environmental Approvals, November 2014 Slide 22

1. Key ConsiderationsExisting environment, potential impacts relevant to BHP Billiton Iron Ore’s Pilbara operations, and stakeholder expectations.

2. Outcome-Based ApproachThe defined outcome-based objective BHP Billiton Iron Ore is committed to achieve across its Pilbara operations.

3. Management StrategyThe strategy BHP Billiton Iron Ore will implement to achieve its outcome-based objective.

4. Management MeasuresThe management tools BHP Billiton Iron Ore has in place, or will develop, to enable its strategy to achieve the outcome-based objective.

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Concluding observations

Slide 23

• No ‘one size fits all’ approach

• May be a combination of different methods

• Simpler might be better – qualitative vs quantitative

• Complex relationships are difficult to assess

– Available data and knowledge

– Understanding of interactions

– Synergistic CIA may be aspirational

• Manage expectations

• Robust management strategy can help mitigate risks

• Will still be difficult questions on proportionate responsibility

Bryce Skarratt, Environmental Approvals, November 2014

Source: B. Skarratt