Australian British Chamber of Commerce

Marius Kloppers15 September 2010

BHP Billiton – 15 September 2010 Slide 2

BHPBilliton Belitung Mine (1851)

Broken Hill Mine (1883)

The Broken Hill Proprietary Company Limited and NV Billiton Maatschappij 100 years ago

BHP Billiton – 15 September 2010 Slide 3

Shanghai

KolkataDelhi Mumbai Chennai

Beijing Shenzhen

Rapidly rising living standards will bring opportunities and challenges

Sao Paulo

FY10 pre-tax earnings fromAustralian operations

Return to Australiain FY10

BHP Billiton – 15 September 2010 Slide 4

BHP Billiton contribution to the Australian economy

11.8

15.8

8.4 Capital

Investment

5.5 Taxes

1.9 Dividends

(A$ Billion)

BHP Billiton position

BHP Billiton – 15 September 2010 Slide 5

We acknowledge that the mainstream science is correct

We have historically expressed our preference for a unified global solution but recognise that local action is more likely in the short term

We believe Australia must act ahead of a global solution to maintain its competitiveness

Australia has high per capita emissions

29

25

22 2220

1513 13

12 12

0

5

10

15

20

25

30

35

Australia Luxembourg Iceland Canada UnitedStates

Ireland CzechRepublic

Netherlands Belgium Denmark

BHP Billiton – 15 September 2010 Slide 6

Source: UNFCCC Annex 1 GHG emissions; World Resources Institute, Climate Analysis Indicators Tool; Global Insight; team analysis.

Emissions per capita by Kyoto Annex 1 country - 2008(Metric tonne of carbon dioxide equivalent per person)

There is no silver bullet for reducing emissions

Reducing carbon emissions is a long dated problem

A mosaic of initiatives that that collectively achieve the desired result is necessary

A single encompassing trading system is not the solution

BHP Billiton – 15 September 2010 Slide 7

Renewables

Market basedmeasures

Standards and regulations

Taxes

BHP Billiton – 15 September 2010 Slide 8

Key considerations for Australia

Our export-based economy is intrinsically carbon intensive

Policy choices must be carefully tested and tailored to avoid a negative impact on a carbon exposed Australia

Infrastructure decisions have long dated impact, particularly inelectricity generation

The emissions problem is about energy consumption

BHP Billiton – 15 September 2010 Slide 9

(1) Stationary energy comprises: electricity generation - 35%, and direct combustion - 16% (fuels consumed directly in the manufacturing, construction and commercial sectors and other sources such as domestic heating).

Source: Department of Climate Change, ‘Tracking to Kyoto and 2020’, 2009; Australian Greenhouse Emissions National Inventory, May 2009.

Australian net greenhouse gas emissions by sector - 2008(%)

Land & Forestry6

Waste3

Industrial5

Transport14

Agriculture16

Fugitives7

Stationary Energy51

(1)

We must look beyond just coal

BHP Billiton – 15 September 2010 Slide 10

Source: ABARE “Energy in Australia Report – 2010”

Brown Coal22

Natural Gas16

Hydro5

Other3

Black Coal54

Australian electricity generation by fuel source - 2008(%)

BHP Billiton – 15 September 2010 Slide 11

What else do large companies think about?

What happens to the money raised by pricing carbon?

How is international trade affected when countries act individually?

BHP Billiton – 15 September 2010 Slide 12Slide 12

Climate change policy design principles

Clear price signal

Revenue neutral

Trade friendly

Broad based in its application

Predictable and gradual transition

Simple and effective

The BHP Billiton group today

BHP Billiton – 15 September 2010 Slide 13

AluminiumBase MetalsDiamonds & Specialty ProductsEnergy CoalIron OreManganeseMetallurgical CoalPetroleumStainless Steel MaterialsOffices

Slide 13