Global Trends in the Natural Resource Sector

C W Goodyear Chief Executive Officer10th St. Petersburg International Economic ForumSt. Petersburg, 13 June 2006

Slide 2

1990 – Industry structure

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In 1990 the top five companies accounted for less than 25% of total resource equity market value

Market value of minerals industry US$150 bnValue of Top Five US$36 bn

Slide 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 4

10 year historical Chinese demand

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

95 96 97 98 99 00 01 02 03 04 05 0%

5%

10%

15%

20%

25%

Chinese refi ned copperconsumption

% share of world refi ned copperconsumption (right hand scale)

‘000 tonnes

Data: BHP Billiton

%

0

50

100

150

200

250

95 96 97 98 99 00 01 02 03 04 050%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Chi nese primary ni ckelconsumpti on

% share of world primary ni ckelconsumpti on (ri ght hand scale)

%‘000 tonnes

Data: INSG

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

95 96 97 98 99 00 01 02 03 04 '050%

5%

10%

15%

20%

25%

Chinese alumi niumconsumption

% share of global al uminiumconsumption (right hand scal e)

Data: BH, CRU

‘000 tonnes %

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

95 96 97 98 99 00 01 02 03 04 '050%

5%

10%

15%

20%

25%

30%

35%

Chinese crude steelconsumpti on

% share of gl obal crude steelconsumpti on (right hand scal e)

mill ion tonnes %

Data: IISI, CISA, BHP Bil liton (NB: 05 is based on estimate figures as final figures are not yet released)

Slide 5

Steel intensity of useSteel Intensity per Capita

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

0 5000 10000 15000 20000 25000 30000 35000 40000 45000GDP/Capita (PPP, Jan. 2006 US$'000)

Kg S

teel/

Capi

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USA (1900-2004)Japan (1950-2004)S. Korea (1970-2004)Taiwan (1970-2004)China (1970-2004)

Source: World Bank, OECD (GDP at Purchasing Power Parity), IISI

Slide 6

Energy intensity of use

Source: World Bank, OECD (GDP at Purchasing Power Parity), BP Statistical Review

Energy Intensity per Capita

0.0

2.0

4.0

6.0

8.0

10.0

0 5000 10000 15000 20000 25000 30000 35000 40000 45000

GDP/Capita (PPP, Jan. 2006 US$'000)

Ener

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(Oil

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USA (1960-2004)Japan (1960-2004)S. Korea (1965-2004)Germany (1965-2004)Taiwan (1965-2004)China (1965-2004)

Slide 7

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2006 - industry structure

Market value of minerals industry US$795bnValue of Top Four US$329bn

Today the top five companies account for over 40% of total resource equity market value

Slide 8

Deep inventory of growth projectsB R O W N F I E L D

G R E E N F I E L D

As at 15 February 2006Size of bubble indicates proposed capital expenditure; bold outer border signifies sanctioned project.

$US 200M$US 200M

Blackwater CPP

RavensthorpeRavensthorpe

BMA Phase 2

WA Iron OreRGP 2

WA Iron OreRGP 2

NeptuneNeptune

NWS T5NWS T5

StybarrowStybarrow

NWSAngelNWSAngel

Koala UGKoala UGZamzama Phase 2

WA Iron OreRGP 4+

WA Iron OreRGP 4+

NickelPetroleum

Diamonds

Alumina

Iron OreBase Metals

Met. Coal

Esc’daSulphideEsc’da

Sulphide

Atlantis North

YabuluYabuluDouglas –

MiddelburgDouglas –

Middelburg

Energy Coal

AlumarAlumar

PyreneesPyrenees

WA Iron OreRGP 3

WA Iron OreRGP 3

MaruwaiMaruwai

ShenziShenzi

WorsleyDCP

Atlantis SouthAtlantis South

SpenceSpence

20092007 2008CY2006 2010 2011

SamarcoSamarco

Worsley E&GWorsley E&G

Slide 9

Escondida

Slide 10

Mozal

Slide 11

0

500

1000

1500

2000

Olympic

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Operating MineConstructionUndeveloped

Olympic DamThe world’s top twenty uranium deposits by remaining resources

‘000 tonnes of U3O8

Source: Internal Global Deposit DatabaseSource: Internal Global Deposit Database

• World-class copper-uranium-gold-silver mineral resource.• 34% of world’s uranium reserves.• BHP Billiton ideally placed to meet increasing demand for uranium.

Olympic Dam

Slide 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 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 14

ConclusionMarket Needs

+

Norilsk Nickel

+

BHP Billiton

+

Communities

=

“Win – Win – Win – Win”

Global Trends in the Natural Resource Sector

C W Goodyear Chief Executive Officer10th St. Petersburg International Economic ForumSt. Petersburg, 13 June 2006