Welcome to BHP Billiton Iron Ore Mining Operations

Welcome to BHP Billiton Iron Ore Mining Operations

Business Analysts visit11 – 12 September 2003

Business Analysts Visit September 2003 2

Visitor Safety Induction

Welcome to Newman1. 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


LTIFR – Whaleback and Contract Mines

0.5 10.6 0.50.5

8813

2.5 2 1.2

8

5 55

3

0

5

10

15

20

25

YEM97 YEM98 YEM99 YEJ00 YEJ01 YEJ02 YEJ03 YEJO4 todate

Whaleback Contract Mines

NSCA SMP

Consult

SSRG

D&A

SAO

SAO

PPS

DetailedInvestigation ICAM

D&A


CIFR – Whaleback & Contract Mines 2003

0

5

10

15

20

AugustSeptem

berOcto

berNovem

berDece

mberJan

uaryFebruary

March

April May Jun JulAug

Whaleback Contract Mines


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


Mining Strategic Focus: 2003 - 2008

Key Points• Achieve / exceed goals through good planning• Think beyond short term / regional horizons• Gain strategic benefits• People management – become employer of choice• Organisation consistency• Secure support for business decisions• Pace of restructuring• Keep it simple• Growth


YEJ04 Mining Group Roadmap

Occupational Hygiene

Contractor HSEC Management

Information Business Systems - HSEC

Integrate HSEC Standards and Corporate Initiatives

HSEC Integration

Resource & Reserve

Classification & Reporting

Increase Goldsworthy Ore

Car Dumper Rates

Upgrade Newman JV Product

Integrated Processes

Progress Closure Planning Process

Integrate Area C into Business

Information Business Systems:

Value from Existing Systems

Efficiency Planning Product Quality Tonnage Growth

Deliver on Navigator

Goldsworthy Options - Cost

BenefitCSMS Upgrades

Ramp Up Production Tonnages

Growth Planning, Capability & Awareness

Capital Management

Process

Improve Management with

Government Obligations

Mine Product Moisture Control

Reduce Departmental Boundaries /

Tonnage Losses

Own & Implement Long Term Expansion Outcomes

Communications Across Site

Manage Land Tenure

Improve Ore Sampling

Tonnage Expansion

Realisation - Area C

Maximise Yandi Resource

Health & Safety EnvironmentCommunity Relations

People Management

Cost

Extend Behavioural

Based Safety

Manage Hydro- Carbon Waste &

Spills

Manage Aboriginal

Affairs Business Commitments

Attract & Retain Employees

Contract Efficiencies

Fitness for WorkReduce Mine Emissions

Align Business and Local Community Objectives

Build Indigenous Employment Capability

Cost Reduction At Whaleback

Implement Fatal Risk Protocol

Enhance Local Trainee and

Apprenticeship Programmes

Fully Engage Workforce

Contract Efficiencies

Contract Mines


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

• 54 sessions across all workgroups

• 460 participants • 1834 comments collected and

analysed


Navigator - Results

Effic

ienc

y

Peop

leM

anag

emen

t

Plan

ning

Safe

ty

Prod

uct

Qua

lity

Cos

t

Tonn

age

Com

mun

ityR

elat

ions

Gro

wth

Envi

ronm

ent

No.

Of C

omm

ents

Strengths Weakness Opportunity Threat

77% of all comments

• Efficiency– Communication – Systems & Processes– Maintenance &

Equipment Availability

• People Management– Working Arrangements

& Workload– Skills Development

• Operating Excellence projects are under way with workgroups


BOODARIE IRON

Location Map

Newman to Nelson Point - 426km

• Jimblebar spur line is 32km

Yandi to Nelson Point - 310 km

• Yandi spur line is 30km

• Area C proposed spur line extension from Yandi is 38km

Yarrie to Finucane Island - 208km


S.E. Pilbara Mining Tenements


Yandi Mining Lease


Goldsworthy Mining Leases


Mine Production – Million tonnes

Mt

0

10

20

30

40

50

60

70

80

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

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1979

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1981

1982

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1986

1987

1988

1989

1990

1991

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1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Whaleback+OB29 Bene OB23/25 Jimblebar Yandi Goldsworthy MAC

YEJ Years


Mt Whaleback Employee NumbersNu

mbe

r of E

mpl

oyee

s

2500

2000

1500

1000

500

01986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003


Mt. Whaleback Pit

8 South Pushback

4 N PushbackCentre 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


Mt. Whaleback

Smarter useof equipment

Global Positioning

System

Better ore availability Lower waste movement Improved control over chemical and physical quality

PUSHBACK OPTIMISATION …

Optimises Production ControlQuality ControlReconciliation Practices

MaximisesOre RecoveryResources


Mt. Whaleback Northwall Waste Removal – Project China

High Grade

Waste

23 Mt approx


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 30 years

• Controls chemical and physical properties of the blend


Beneficiation Plant

• Feed System Modification– April 1999

• 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

YEJ 1998 : 4.8MwtYEJ 2001 : 5.8MwtYEJ 2002 : 7.1MwtYEJ 2003 : 8.0Mwt


Orebody 25 & 23

Orebody 25– Flexible contractor mining operation– Operational flexibility – crushing/screening options– All ore reserves above water table

Orebody 23– Maintained as standby HGO source– Advanced pit development– Dewatering system designed to allow rapid start up

Satellite Orebodies Offer Blending Flexibility


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


Yandi Central 1 Central 5

522mRL Bench

Central 1

Central 2

Central 5

Yandi Rail Loop

New Primary Crusher

Overland Conveyor


Yandi OHP2 to Central 1

Overland conveyor

5.3km

Primary crusher


Area C Progress• Mining Contract awarded 1 April 2003• HWE mobilisation commenced 24 April 2003• First Mining 15 May 2003• First Ore crushed 21 July 2003• Commissioning of reclaimer and train loading system began 8

August• 1st loaded train departed 14 August 2003• Providing feed from the Bulk Sample Stockpiles and direct from

the pit to the Processing Plant as part of Load Commissioning• Transfer of responsibilities from ADP to Mining Operations on

1 September 2003


Area C


Stacker & Reclaimer at Area C


Area C – Moisture Control Program

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 Quality Control - Moisture

1

10

100

1000

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0%H2O

Dus

t Num

ber (

Dus

t Yie

ld x

100,

000)

0

20

40

60

80

100

120

Dur

ham

Con

e Fl

ow T

ime

(s)

Dust Number Flow Time

Flow stopped

OptimumMoisture

range

MACTM

Fines

• Fines moisture targets based on dust extinction and flow studies– Initially will target 7.5-8.0% moisture– Will be reviewed with customers based on operational experience

• On-line low frequency microwave moisture analysers in new processing plant will automate process for moisture control of fines


Goldsworthy Yarrie Mine

1st June 2003

Yarrie Y10 Pit

Yarrie Y2 PitCrusher & Train loader


Yarrie Sunrise Hill West

1st June 2003

100mrl

Northern pushback

Mining Operations Improvement Initiatives


Business Improvement YEJ04Number Of Improvement Projects

020406080

100

YEJ02 YEJ03 YEJ04

• Operating Excellence – 9 Full Time, 3 Part Time, Black Belt Coaches– 109 Attended OE Basics training– 28 OE Champions


Operating Excellence ProjectCAT 994 Loader Operator Driven Reliability

Availablity %

0

10

20

30

40

50

60

70

80

90

100

Sep-02

Oct-02

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-0

3

Aug-03

Improved Operating Techniques & Teamwork between Maintenance andProduction Departments:

Increased availability from 72% to 85%.

Increased Mean Time Between Failure from 22 hours to 46 hours.

Next step is to roll out to our Shovel and Truck fleets. Reliability MTBF (Hours)

0

10

20

30

40

50

60

Sep-02

Oct-02

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-0

3Aug

-03


Operating Excellence ProjectCAT 793 Truck Load Factor Study

CAT 793 Truck On Board Pay Load System

200

205

210

215

220

225

Before Implementation After Implementation

Tonn

es

Set Point Actual Load

• Onboard Load System critical to achieving truck tonnage targets –only effective measure for Shovel operators.

• Inaccuracies meant systematically underloading 793 trucks.• Improvement in calibration technique achieved increased accuracy

and therefore higher actual loads. • Increased set point simultaneously.


Operating ExcellenceExponentially Smoothed Grades from each Pit at Yandi

3.0

4.0

5.0

6.0

7.0

01-Jul 29-Jul 26-Aug 23-Sep 21-Oct 18-Nov 16-Dec7.0

Train Grades

Smoothed Train Grades from each Pit

3.0

4.0

5.0

6.0

1-Jul 29-Jul 26-Aug 23-Sep 21-Oct 18-Nov 16-DecYandi 1 Yandi 2 Fines Yandi 2 Fines from Lump Prodn Combined Fines


Operating ExcellenceGross Loading Rate

Gross Loading Rate

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

Jan

-00

Feb-

00

Mar

-00

Apr

-00

May

-00

Jun

-00

Jul-

00

Au

g-0

0

Sep-

00

Oct

-00

Nov

-00

Dec

-00

Jan

-01

Feb-

01

Mar

-01

Apr

-01

May

-01

Jun

-01

Jul-

01

Au

g-0

1

Sep-

01

Oct

-01

Nov

-01

Dec

-01

Jan

-02

Feb-

02

Mar

-02

Apr

-02

May

-02

Jun

-02

Jul-

02

Au

g-0

2

Sep-

02

Oct

-02

Nov

-02

Dec

-02

Jan

-03

Feb-

03

GLR

(tp

h)

25 Vessel Moving Average

Minimum Level - 4,500 tph

Target Level - 5,500 tph

01 January 00 to 7-Apr-2003Target Level - 5,850 wtph

Minimum Level - 4,785 wtph

Minimum Level - 5,500 wtph

Target Level - 6,000 wtph


New Technology -Slope Stability Radar


Leadership Excellence• Leadership Excellence is a customised BHP Billiton Iron Ore leadership

development program

• Objectives– Develop a common leadership framework

– “Attaining organisational goals through the development of people”– Assess current competence levels and implement improvement plans– All BHPBIO leaders meet competency benchmarks– Nationally accredited Frontline Management qualifications– 25 Managers and Superintendents completed 2002 program

– 23 achieved Diploma (92% of target group)– 52 Supervisors completing 2003 program


Leadership Excellence 360o FeedbackStart of Program


Leadership Excellence 360o FeedbackConclusion of Program

Documents

Welcome to BHP Billiton Iron Ore Mining Operations