Welcome to BHP Billiton Iron Ore Mining Operations Business Analysts visit 11 – 12 September 2003
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
Business Analysts Visit September 2003 3
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
Business Analysts Visit September 2003 4
CIFR – Whaleback & Contract Mines 2003
0
5
10
15
20
AugustSeptem
berOcto
berNovem
berDece
mberJan
uaryFebruary
March
April May Jun JulAug
Whaleback Contract Mines
Business Analysts Visit September 2003 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 September 2003 6
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
Business Analysts Visit September 2003 7
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
Business Analysts Visit September 2003 8
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
Business Analysts Visit September 2003 9
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
Business Analysts Visit September 2003 10
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
Business Analysts Visit September 2003 11
S.E. Pilbara Mining Tenements
Business Analysts Visit September 2003 12
Yandi Mining Lease
Business Analysts Visit September 2003 13
Goldsworthy Mining Leases
Business Analysts Visit September 2003 14
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
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Whaleback+OB29 Bene OB23/25 Jimblebar Yandi Goldsworthy MAC
YEJ Years
Business Analysts Visit September 2003 15
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
Business Analysts Visit September 2003 16
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
Business Analysts Visit September 2003 17
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
Business Analysts Visit September 2003 18
Mt. Whaleback Northwall Waste Removal – Project China
High Grade
Waste
23 Mt approx
Business Analysts Visit September 2003 19
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
Business Analysts Visit September 2003 20
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
Business Analysts Visit September 2003 21
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
Business Analysts Visit September 2003 22
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 September 2003 23
Yandi Central 1 Central 5
522mRL Bench
Central 1
Central 2
Central 5
Yandi Rail Loop
New Primary Crusher
Overland Conveyor
Business Analysts Visit September 2003 24
Yandi OHP2 to Central 1
Overland conveyor
5.3km
Primary crusher
Business Analysts Visit September 2003 25
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
Business Analysts Visit September 2003 26
Area C
Business Analysts Visit September 2003 27
Stacker & Reclaimer at Area C
Business Analysts Visit September 2003 28
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.
Business Analysts Visit September 2003 29
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
Business Analysts Visit September 2003 30
Goldsworthy Yarrie Mine
1st June 2003
Yarrie Y10 Pit
Yarrie Y2 PitCrusher & Train loader
Business Analysts Visit September 2003 31
Yarrie Sunrise Hill West
1st June 2003
100mrl
Northern pushback
Mining Operations Improvement Initiatives
Business Analysts Visit September 2003 33
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
Business Analysts Visit September 2003 34
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
Business Analysts Visit September 2003 35
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.
Business Analysts Visit September 2003 36
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
Business Analysts Visit September 2003 37
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
Business Analysts Visit September 2003 38
New Technology -Slope Stability Radar
Business Analysts Visit September 2003 39
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
Business Analysts Visit September 2003 40
Leadership Excellence 360o FeedbackStart of Program
Business Analysts Visit September 2003 41
Leadership Excellence 360o FeedbackConclusion of Program