UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
June 27, 2012
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter)
VICTORIA, AUSTRALIA (Jurisdiction of incorporation or organisation)
180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA (Address of principal executive offices) |
BHP BILLITON PLC (REG. NO. 3196209) (Exact name of Registrant as specified in its charter)
ENGLAND AND WALES (Jurisdiction of incorporation or organisation)
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F: x Form 20-F ¨ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ¨ Yes x No
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
Building momentum in
Base Metals
Peter Beaven President Base Metals
27 June 2012
Escondida
Disclaimer
Building momentum in Base Metals, 27 June 2012 Slide 2
Forward looking statements
This presentation contains forward looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans,
strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement
dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and
contingent liabilities; tax and regulatory developments.
Forward looking statements can be identified by the use of terminology such as „intend‟, „aim‟, „project‟, „anticipate‟, „estimate‟, „plan‟, „believe‟, „expect‟, „may‟, „should‟, „will‟, „continue‟
or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward looking statements.
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 in the statements contained in this presentation. Readers are cautioned not to put
undue reliance on forward looking statements.
For example, our future revenues from our operations, projects or mines described in this presentation will be based, in part, upon the market price of the minerals, metals or
petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular
project, the expansion of certain facilities or mines, or the continuation of existing operations.
Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our
ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices
of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines,
including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP
Billiton‟s filings with the U.S. Securities and Exchange Commission (the “SEC”) (including in Annual Reports on Form 20-F) which are available on the SEC‟s website at www.sec.gov.
Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or review any forward looking statements, whether as a result
of new information or future events.
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 that have 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.
Disclaimer
Building momentum in Base Metals, 27 June 2012 Slide 3
Exploration Targets and Mineral Resources
This presentation includes information on Exploration Targets (Potential Mineralisation) and Mineral Resources. Mineral Resources are compiled by:
L Soto (MAusIMM), M Cortes (MAusIMM) and R Preece (FAusIMM) – Escondida mineral district, J Céspedes (MAusIMM) – Cerro Colorado and Spence, R Preece (FAusIMM) –
Antamina, and A Edwards (MAusIMM) – Cannington. This is based on Mineral Resource information in the BHP Billiton 2011 Annual Report for all assets, except Spence and the
Escondida district Mineral Resource. Information for Spence is as at 31 December 2011 as disclosed in the BHP Billiton Exploration and Development Report for the quarter ended
31 December 2011. Mineral Resource information for the Escondida district includes Pampa Escondida and Pinta Verde resources as disclosed in the BHP Billiton 2011 Annual
Report and the Escondida and Chimborazo resources as at 31 December 2011 as disclosed in the BHP Billiton News Release dated 14 February 2012. All reports can be found at
www.bhpbilliton.com.
Exploration Targets (Potential Mineralisation) are compiled by J des Rivieres (IGI) (Escondida has been previously reported in BHP Billiton‟s Bank of America Merrill Lynch Global
Metals, Mining & Steel Conference Presentation, 15 May 2012).
All information is reported under the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004‟ (the JORC Code) by the above-mentioned
persons who are employed by BHP Billiton and have the required qualifications and experience to qualify as Competent Persons for Mineral Resources or Exploration Results under
the JORC Code.
The compilers verify that this report is based on and fairly reflects the Exploration Targets and Mineral Resources information in the supporting documentation and agree with the
form and context of the information presented.
Mineral Resource classification and Potential Mineralisation Ranges (100% basis) for each province, where relevant, are contained in Table 1.
Table 1
Province
Measured Resource
(Mt)
Indicated Resource
(Mt)
Inferred Resource
(Mt)
Range of Potential Mineralisation
(Bt)
BHP Billiton
interest
Low Mid High %
Escondida district 4,087 @ 0.72% Cu 4,991 @ 0.57% Cu 12,634 @ 0.47% Cu 16 @ 0.4-0.6% Cu 23 @ 0.4-0.6% Cu 43 @ 0.5-0.6% Cu 57.5
Cerro Colorado 153 @ 0.65% Cu 188 @ 0.66% Cu 83 @ 0.64% Cu 1.3 @ 0.35-0.45% Cu 1.7 @ 0.35-0.45% Cu 3.2 @ 0.35-0.45% Cu 100
Spence 241 @ 0.92% Cu 1,278 @ 0.47% Cu 1,174 @ 0.39% Cu 0.8 @ 0.4-0.5% Cu 1.2 @ 0.4-0.5% Cu 1.9 @ 0.4-0.5% Cu 100
Antamina 188 @ 0.85% Cu 1,018 @ 0.92% Cu 708 @ 0.73% Cu 33.75
Cannington
50 @ 248g/t Ag,
6.7% Pb, 3.4% Zn
17 @ 149g/t Ag,
4.7% Pb, 2.8% Zn
10 @ 125g/t Ag,
4.1% Pb, 2.4% Zn
100
The range of Potential Mineralisation is estimated from geological information including boreholes, outcrops and geophysical information. The potential quantity is conceptual in
nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. It should not
be expected that the quality of the Potential Mineralisation is equivalent to that of the Mineral Resource.
Building momentum in Base Metals
Building momentum in Base Metals, 27 June 2012 Slide 4
Strong performance in health, safety, environment and the community
Our confidence in the long term outlook for copper
Delivering valuable growth in our Base Metals business
Low risk, high return projects are progressing well
The challenges facing the Chilean mining industry
Strong performance in health, safety,
environment and the community
Building momentum in Base Metals, 27 June 2012 Slide 5
Health
Focus on reducing exposure to silica, noise and acid mist
Monitoring and managing fatigue
Safety
No fatalities
Material risk management
Job safety observations
Promoting a culture of compliance
Field leadership
Environment
Reduce environmental footprint (energy and water efficiency)
Abatement curves for energy, water and carbon
Community
Focus on improving quality of life indicators
Escondida Foundation
Antamina Fund
Invested in excess of US$250 million in local communities over
the last five years
Spence
Cerro Colorado
Japon School Antofagasta
Safety is a core value for BHP Billiton
Building momentum in Base Metals, 27 June 2012 Slide 6
Total Recordable Injury Frequency
(12 month rolling average)
0
3
6
9
FY06 FY07² FY08² FY09 FY10² FY11 FY12³
BHP Billiton
Base Metals¹
1. Excludes Uranium Customer Sector Group (Olympic Dam).
2. Indicates a fatality occurred in the Base Metals Customer Sector Group during the reporting period.
3. TRIF up until 31 May 2012.
Demand evolves with economic development
Slide 7
Emerging economic growth will
transition from being investment to
consumption led
Steel intensity is expected to peak first
as the construction cycle matures
Commodities such as copper plateau
later in the industrialisation cycle
Energy and food demand is linked
with economic expansion in a more
linear fashion
Diversification will provide more
opportunities to create long term
shareholder value
Intensity trends evolve with economic development
(US intensity index1)
China’s share of global demand
(CY11, %)
Source: World Bank; Brook Hunt – a Wood Mackenzie Company; CRU; IISI; Global Insight; CISA; World Steel Association; JBS; IEA; BHP Billiton analysis.
1. The demand intensity index represents volume consumption per capita, with 1972 consumption representing 100 for electricity, and 1968 consumption representing 100 for the
other commodities.
GDP per capita
(2005 real US$‟000, PPP basis)
0
20
40
60
Met coal
Iron ore
Aluminium
Copper
Potash
Crude oil
Uranium
50
100
150
200
0 10 20 30 40 50
Electricity
Steel
Copper
Emerging
economies
Developed
economies Meat
Building momentum in Base Metals, 27 June 2012
Robust long term Chinese copper demand growth
Building momentum in Base Metals, 27 June 2012 Slide 8
(50)
50
150
250
350
450
2000 2005 2011
Domestic mine Concentrate imports
Cathode imports Other imports
Scrap Inventory change
Underlying long term Chinese demand is strong
(index 2000=100)
Source: China Customs; BHP Billiton analysis.
(20)
0
20
40
60
80
Feb 09 Nov 09 Aug 10 May 11 Feb 12
Semis output
Refined supply
Source: NBS; China Customs.
Chinese inventory cycle creates short term volatility
(% change YoY, 3 month moving average)
12% CAGR
Copper remains a material of choice
Building momentum in Base Metals, 27 June 2012 Slide 9
Copper is a material of choice
– energy efficient
– carbon sensitive
Overall substitution remains small (~2%
of the global market), especially in high
volume sectors
Even at a price ratio of 4:1 for
copper:aluminium, substitution has not
significantly increased penetration
The copper industry is evolving to
defend market share
Substitution losses by key market sector1
Source: ICA; CRU International.
1. Percentage shown represents share of product market lost in 2011.
4%
3%
14%
4%
7%
2%
1%
2%
0 20 40 60 80
Commercial tube
Alloy rod & bar
Telecom cable
Utility power cable
Plumbing tube
Non-insulated uses of
wire rod
Industrial power cable
Electric motors
Substitution tonnage loss in 2011
(thousand tonnes)
0
5
10
15
20
25
30
2000
Supply
reduction
Effective
demand
2011
Supply
reduction
Effective
demand
2025
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1980 1989 1998 2007 2016 2025
Copper: a longer term supply challenge
Building momentum in Base Metals, 27 June 2012 Slide 10
Grade decline constrains the supply response
(% copper in process feed)
Historical Forecast
Source: Brook Hunt – a Wood Mackenzie Company.
Strong effective1 copper demand growth
(million tonnes per annum)
Source: CRU; Brook Hunt – a Wood Mackenzie Company.
1. Effective demand combines forecast market demand growth and the anticipated
supply reduction from existing operations.
+15 mt
Underlying
3% CAGR
Effective
+5% CAGR
A world class Base Metals business
Building momentum in Base Metals, 27 June 2012 Slide 11
Santiago - Chile
Headquarters
Singapore
Marketing Hub
Santiago - Chile
Project Hub
Olympic Dam - Australia
Copper - Uranium
Pampa Norte - Chile
Cerro Colorado and Spence
Copper
Pinto Valley - USA
Copper
Cannington - Australia
Silver - Lead - Zinc
Execution
Antamina Expansion
Antamina - Peru
Copper - Zinc
Execution
Escondida Ore Access
Laguna Seca Debottlenecking
Escondida Organic Growth Project 1
Escondida Oxide Leach Area Project
Escondida - Chile
Copper
Note: Includes producing assets and major projects in execution.
Base Metals CSG operation
Uranium CSG operation
Largest copper mine in the world
4,000 employees and 10,000 contractors
Material movement in excess of 1.5 mtpd,
over 50% more than our Western Australia
Iron Ore business
Two pits feeding two concentrators
(Los Colorados and Laguna Seca) and two
leaching operations (oxide and sulphide)
Two cathode producing electrowinning plants
Port facilities with capacity to export over
1 mtpa of copper in concentrate
Copper production guidance for FY121
unchanged with a substantial uplift forecast
in the June 2012 quarter
Escondida: the world’s leading copper mine
Building momentum in Base Metals, 27 June 2012 Slide 12
1. Escondida FY12 production is forecast to be marginally lower than FY11 with volumes weighted to the second half. BHP Billiton interest in Escondida is 57.5%.
Laguna Seca concentrator Los Colorados concentrator
Electrowinning plants Coloso Port
Escondida and Escondida Norte pits
Significant increase in valuable Escondida
mineral district resources
Building momentum in Base Metals, 27 June 2012 Slide 13
Significant increase in Escondida mineral district resources including
– 129% increase reported in FY111
– a further 11% increase reported in February 20121
High quality resource base with 21.7 bt @ 0.54% copper1
Open cut development potential and long term underground opportunity
Escondida
Norte
Escondida Pampa
Escondida A B
Undifferentiated porphyry (schematic)
Zaldivar Lease
TCu > 0.7% TCu > 0.3%
Pit (December 2011)
Open pit limit for declared Mineral Resource. Material
of TCu > 0.3% outside the pit limit is included in the
Potential Mineralisation stated on slide 3.
Deep drill holes
B
A
Longitudinal section
A
B
Escondida
Pinta
Verde
Zaldivar
Lease
Escondida
Norte
Pampa
Escondida
1. BHP Billiton 2011 Annual Report and BHP Billiton News Release dated 14 February 2012. Refer to disclaimer on slide 3 as presented on 27 June 2012. Declared resources in
the Escondida Norte and Pinta Verde deposits are constrained to those within Minera Escondida Limitada mining rights.
Sears
Tower
527m
Petronas
Towers
452m
Delivering low risk, high return volume growth
Building momentum in Base Metals, 27 June 2012 Slide 14
Escondida Ore Access on track for completion in
the June 2012 quarter, providing access to high
grade ore (over 1% copper head grade)
Escondida Organic Growth Project 1 (OGP1)
approved in the March 2012 quarter with
commissioning scheduled for CY15
Targeting copper production of over 1.3 mt in
FY15 (100% basis)
1. H1 FY12 production annualised, indexed to 100.
0
100
200
H1 FY12¹ FY15e
Significant growth in Escondida copper production
(index annualised H1 FY12, BHP Billiton share)
High
grade
ore
Antamina
Escondida IV
OGP12
0
15,000
30,000
0 40 80 120 160
OGP1 generates strong returns
Building momentum in Base Metals, 27 June 2012 Slide 15
Construction of a new concentrator with
152 ktpd processing capacity
– located adjacent to the existing
Laguna Seca concentrator
High return project with a competitive
level of capital intensity
Maximises value by
– achieving early access to high
grade ore located underneath the
Los Colorados concentrator
– increasing throughput capacity by
approximately 50 ktpd1
Will be the standard concentrator
design for Base Metals
Processing capacity
(thousand tonnes per day)
Capital intensity
(US$/tonne per day)
Source: Bechtel.
1. Includes incremental capacity from the Laguna Seca debottlenecking project and the new 152 ktpd plant that will replace the Los Colorados concentrator.
2. The OGP1 capital intensity calculation is based on costs related to the basic concentrator process facilities only and excludes costs related to infrastructure such as reclaim
conveying systems, tailings, administration buildings and warehouses. Capital intensity calculations performed on the same basis for the peer group.
Laguna Seca concentrator
New 152 ktpd concentrator (OGP1)
OGP1 – setting a new benchmark for the industry
Laguna Seca debottlenecking project
Pampa Norte combination a major success
Building momentum in Base Metals, 27 June 2012 Slide 16
Combined Spence and Cerro Colorado
operations into a single asset
– allows sharing of best practices and
critical skills
– complementary oxide and secondary
sulphide leach operations
24% of BHP Billiton copper production in FY11
Current production capacity
– approximately 180 ktpa of copper at Spence1
– approximately 95 ktpa of copper at
Cerro Colorado1
Plant debottlenecking completed at both Spence
and Cerro Colorado during FY12
– increased processing capacity at Spence to
61 ktpd (from 56 ktpd)
– increased processing capacity at
Cerro Colorado to 55 ktpd (from 52 ktpd)
Source: 1. BHP Billiton interest in both Spence and Cerro Colorado is 100%. BHP Billiton.
Hypogene zone provides a significant opportunity
for Pampa Norte
Slide 17
Spence North Phase Access project
completed during FY12
– allows early access to higher grade ore
by accelerating waste stripping
Progressing pre-feasibility studies for the
Spence Hypogene project
– potential for open pit access to more than
2 bt of sulphide resources1 that could be
processed through a new 95 ktpd
concentrator
Hypogene mineralisation at Cerro Colorado is
in the early stages of characterisation
– potential for exploitation through either
leaching or concentration
Building momentum in Base Metals, 27 June 2012
Spence, Chile2
Cerro Colorado, Chile3
1. Open pit limit for declared Sulphide Mineral Resource as reported in the BHP Billiton Exploration and Development Report for the quarter ended 31 December 2011.
2. Perspective view of the Spence Mineral Resources as of 31 December 2011, showing drill data (vertical lines), limit of +0.2% Cu as chalcopyrite and open pit limit of declared
resources. Material of TCu > 0.2% outside the pit limit is included in the Potential Mineralisation stated on slide 3. Pit dimensions are approximately 4km x 1km x 0.5km in depth.
3. Plan view map of Hypogene sulphides underlying the declared supergene mineral resources. This material is included in the Potential Mineralisation stated on slide 3.
1 km
> 0.3% Cu
Antamina: large, long life, low cost and
expandable
Slide 18
Located in the Peruvian Andes at 4,300 m
above sea level
Polymetallic skarn ore body (copper, zinc,
molybdenum, silver and lead)
A world class and leading base metals
operation on a copper equivalent basis
Producing a higher proportion of copper
versus zinc (a ratio of approximately 70:30)
Production guidance for CY12 of
approximately 425 kt of copper and
approximately 200 kt of zinc (100% basis1)
Positioned at the bottom of the cost curve
benefiting from by-product credits
Building momentum in Base Metals, 27 June 2012
1. BHP Billiton interest in Antamina is 33.75%.
Antamina expansion is ramping up
Building momentum in Base Metals, 27 June 2012 Slide 19
Expansion project increases ore
processing capacity to 130 ktpd and
generates strong investment returns
– 92% complete at the end of May 2012
– delivered incremental production in
the March 2012 quarter
Components to complete
– molybdenum plant, fresh water pond
and last orders of mine equipment
Debottlenecking opportunities beyond
130 ktpd being considered
Cannington: the world’s largest silver and
lead mine
Building momentum in Base Metals, 27 June 2012 Slide 20
Single underground operation with
processing capacity of over 3 mtpa1
One of the lowest cost producers of
silver and lead
Access to markets through BHP Billiton
owned port infrastructure
Two saleable products (lead and zinc
concentrates)
– high metal content
– low impurities
Highly cash generative asset
– average EBITDA to operating
assets of 3.5 times over the
last 5 years
Top 10 silver producers
(CY11 production, million ounces)
Source: Company reports, contained silver in production.
42 41
27
22
21
20
19
15
15
32
Fresnillo plc
KGHM Polska Miedz
Cannington Mine
Goldcorp Inc
Pan American Silver Corp
Volcan Cia. Minera
Polymetal International plc
Coeur d’Alene Mines Corp
Cia. De Minas Buenaventura
Hochschild Mining plc
1. BHP Billiton interest in Cannington is 100%.
Southern
Zone
Orebody
Northern
Zone
Orebody
Cannington’s resource provides significant
scope to increase the life of mine
Building momentum in Base Metals, 27 June 2012 Slide 21
Significant expansion of near surface
resource of 19 mt1
Option to significantly extend life of mine by
more than 20 years with the staged
development of an open pit
Potential to increase processing capacity to
5 mtpa
Ready access to outbound supply chain
capacity utilising existing road, rail and port
infrastructure
1. Open cut Mineral Resources contained within the Northern Zone pit limit, exclusive of underground resources and reserves reported in the BHP Billiton 2011 Annual Report.
Cannington open cut Mineral Resources of 19 mt is included in the Table 1 on slide 3 as presented on 27 June 2012. Refer to disclaimer on slide 3.
2. Vertical projection of the Cannington mineral inventory, classified as Measured, Indicated or Inferred as per the 2004 JORC Code, and depleted by previous production stopes.
Northern Zone pit limits are based on a current feasibility-stage project and is used as the basis for Open Cut Mineral Resource declaration. The Southern Zone open pit limit is
currently in concept-stage study and is not used as a basis for resource declaration.
Cannington2
Cannington1
Pinto Valley: a low risk and low complexity restart
Building momentum in Base Metals, 27 June 2012 Slide 22
Restart announced in February 2012 with
expected start up of operations by end CY12
Investment of US$195 million1 for a low risk,
low complexity and quick payback project
(facilities in place)
Produces copper and molybdenum
concentrate
Capacity of 60 ktpa1 of copper in concentrate
Five year production plan in place with further
extension options available
1. BHP Billiton interest in Pinto Valley is 100%.
Chile: the importance of power and water
Building momentum in Base Metals, 27 June 2012 Slide 23
Power
Our power requirements in Chile (Northern Grid –
SING) are fully secured for the next four years
Ongoing tender process for long term power
requirements with contracts expected to be closed
during FY13
Options include various combinations of conventional
coal, gas generation and renewable sources
Water
Surface and ground water is scarce in Northern Chile
Current water supply for our operations is mainly
sourced from underground aquifers
The use of sea water is being prioritised with
associated studies underway
Source: BHP Billiton.
Chile: industry wide labour challenges and
cost pressures
Building momentum in Base Metals, 27 June 2012 Slide 24
Labour
Availability of qualified labour for both
operations and projects is a key challenge
Productivity is lower in Chile compared to
other mining jurisdictions
BHP Billiton‟s Santiago Project Hub provides
a stable platform for the development of
project people
Labour contracts for our three operations are
scheduled to be renegotiated during CY13
Costs
Increased mining and reconstruction activity
has tightened the supply of key raw materials
We are focused on capital and operating
costs improvement
Our competitive position on the cost curve is
important in this environment
bhpbilliton
resourcing the future
SIGNATURES
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
| BHP Billiton Limited and BHP Billiton Plc | ||||||
| Date: June 27, 2012 | By: | /s/ Jane McAloon | ||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||