Embed Size (px)
Citation preview
BHP Billiton Iron Ore – Western AustraliaMining Operations
Iron OrePhil Price – Vice President Integrated Planning
17 July 2006Page 2
Visitors Safety Induction – Office Area
1. In an emergency - a siren will sound
2. Stay with your escort at all times
3. Evacuate building through main entrance
4. Muster point is in car park adjacent to front door
5. We have a no-smoking policy inside buildings
17 July 2006Page 3
Summary• 7 mines producing
approx 106 Mtpa;
• 6 mines contract operated: BHP Billiton WAIO performs mine planning and scheduling -Contractor provides statutory role of Registered Manager;
• Total productive movement ~ 300 Mtpa;
• 2800 mining employees (inc. 1700 full time contractors);
• Integrated system: mine/rail/port.
OB 18OB 18
17 July 2006Page 4
Continuous Improvement in Safety Performance• Continued development of One
Business approach to HSEC systems and processes.
• Focus areas:- Leadership- Behavioural based systems
• Programs & actions:- Take 5/JHA’s- Stop for safety- Risk assessments- Fit for work/life (fatigue management)
- 15 HSEC Standards
• 40% reduction in TRIFR during FY06 – last quarter was a record low of 7.9.
Safety - 12 Month Rolling TRIFR22
21
16
12
20
0
5
10
15
20
25
2004 2005Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06
Actual2006 YTD
17 July 2006Page 5
Production History since 1966 - Million Wet Tonnes OFR
0102030405060708090
100
19661968197019721974197619781980198219841986198819901992199419961998200020022004
Whaleback+OB29/30/35 Bene OB23/25 Jimblebar Yandi Goldsworthy Area C
17 July 2006Page 6
Total Integrated System Approach
Dynamic simulation modelling is necessary to understand, optimise and improve our integrated process
Models developed and enhanced over a period of about 14 years
Mines Rail Dumping to Stacking ShippingReclaiming
To Shiploading
Stockpile Surge
Stockpile Surge
Queue ofOre cars
Queue ofVessels
17 July 2006Page 7
MAC19%
Yandi39%
Newman35%
Goldsworthy7%
BHP Billiton WA Iron Ore Production Distribution
1.92.4LOI0.0570.070Phos1.31.95Alumina3.03.7Silica65.464.0Fe
LumpFinesDwt %YEJ 2005 Sales Total = 104Mt (100% basis, wet metric tonnes)
17 July 2006Page 8
Integrated Production Process – Creating the Perfect Blend
Fe %
50%
55%
60%
65%
70%
75%
MINE RAIL PORT
17 July 2006Page 9
8 High Quality Products From Numerous Ore Sources
Rail to Nelson Point
Yandi 1 Yandi 2 OB 25 Whaleback Jimblebar
Fines Fines & Fines &Lump
High Grade Ore -100mm
Bene Ore-100mm
Crushing and Screening
LRP
Fines Fines Lump
Rail to Nelson Point
Rail to NelsonPoint
Yarrie Nimingarra
Crushing and
Screening
Fines Lump
Rail to Finucane Island
MACTM
Fines Lump
LRP
Fines LumpLump
Lump
LRP
OB 29/30 OB 18
Crushed Ore -100mm
Crushed Ore -150mm
Crushed Ore -150mm
BLEN
DING
17 July 2006Page 10
Newman Joint Venture Process FlowWHALEBACK
CRUSHING
-100MM Ore -100MM Ore
WHALEBACK HIGH GRADELOADOUT STOCKPILES
CONTACT ORE
CRUSHING &SCREENING
HIGH GRADEOREBODY
23/25 JIMBLEBAR
LOADOUTSTOCKPILES
LOADOUTSTOCKPILES
-100MM OreLump & Fines
-6.3MM 31.5 X 6.3MM
OREBODY29/30/35
HIGHGRADE FINES
STOCKPILE
MIN
ERA
ILPO
RTSH
IP
BENE PLANT
CRUSHING &SCREENING
CRUSHING &SCREENING
CRUSHING &SCREENING
LUMP RESCREENINGNelson Point
OREBODY 18
LOADOUTSTOCKPILES
-125MM Ore
CRUSHING
Continuous Stockpile Management System
HIGHGRADE LUMPSTOCKPILE
17 July 2006Page 11
Continuous Stockpile Management System
• Diverse ore grades at mines
• Computerised decision support system
• Intelligent sequencing of trains from mines
• On-grade lump & fines stockpiles at port
Continuous Stockpile GradeShipping Limits
Time (two month period)
%Al
2 O3
Lum
p
Continuous Stockpile GradeShipping Limits
Time (two month period)
%Al
2 O3
Lum
p
Continuous Stockpile GradeShipping Limits
Most Recent
17 July 2006Page 12
Long Term Approach to Quality Control
• Quality control starts up to 25 years before mining
• BHP Billiton has consistently met customers’ quality expectations – through 40 years of experience and leading edge mining practices
• Blending starts at the mine planning stage and includes ore types and their physical and chemical properties.
Quality Control Systems
Iron Making Testwork
Customer Samples
Mine Planning
Orebody Modelling
Winzing
Infill Drilling
Exploration
Up to 5 years
Up to 10 years
Up to 25
years
Work Completed
17 July 2006Page 13
• RGP2: Completion expected mid 2006
– OB18 & OB25
– Port & Rail
• RGP3: Approved October 2005
– Area C
– Port & Rail
• RGP4 & Feasibility Study expected to be complete Beyond in 2007. Evaluating a range of further
options for expansion beyond 152mtpa
Growth Projects
OB18
Area C
17 July 2006Page 14
• The Petroleum and Minerals sectors are worth around A$40 billion to Western Australia;
• With a value of more than A$11 billion, Iron Ore is the largest individual sector, recently taking over from crude oil and condensate;
• BHP Billiton Iron Ore is a significant contributor to Australia and WA:
A$ million*– Federal Business Tax 451
– State Royalties & Taxes 136
– Local Rate Payments 2.3
– Payments to Local Contractors 658
– Community Contributions 3.7
– TOTAL 1,215
Iron Ore - Crucial to the Nation and the State
*H1 FY2006
17 July 2006Page 15
• Expect to invest more than A$100 million in the Pilbara over next decade – based on internationally recognised social research
• Service Delivery:– Developed MOUs with WA Government to address service
issues (>A$12 million)
• Local Infrastructure:– Newman Community Planning Process – Look to 2020– A$3 million to improve local infrastructure, ie: playgrounds,
parks, footpaths, etc.
• Alternative Economic Development & Capacity Building:– Indigenous arts skills program – developing retail
businesses and export opportunities– Upgraded Newman Visitor’s Centre
Developing Partnerships to Enhance Newman
