Worsley Alumina Pty Ltd1

INVESTORS AND ANALYSTS VISIT – SEPTEMBER 2003

Worsley Alumina Pty Ltd2

PERTH

BUNBURY

BODDINGTONBAUXITE MINE

KWINANA

PINJARRA

WAGERUP

INDIANOCEAN

COLLIE

WORSLEY

Worsley Alumina Pty Ltd3

Worsley Joint Venture Ownership Structure

N.I.A.4%

BHP Billiton 86%

KAA10%

Worsley Alumina Joint Venture

Worsley Alumina Pty Ltd4

Bauxite Mine Data

• 332 Mt remaining Ore Reserves (at 1 January 2003)• Additional indicated resources of 144 Mt (at 1 January 2003)

121 Mt mined to date (from 1984)

1987 hectares cleared

1230 hectares rehabilitated

• Key mining equipment11m3 excavator (backhoe config.) x 2

12m3 front end loader x 2105t rear dump trucks x 11Bulldozer (575) x 1

• Approx 30 year mine life at 3.2 Mtpy refinery capacity• Plan FY2004 Bauxite Production is 10.5 Mt• Employ approx. 160 employees (FTE) & 40 contractors (FTE)

Worsley Alumina Pty Ltd5

Forest Management

• Lease situated within State Jarrah Forest

• 784 plant species, 130 species of vertebrates and 150 bird species

• Forest Management - Dieback hygiene

Worsley Alumina Pty Ltd6

Forest Rehabilitation

Worsley Alumina Pty Ltd7

Conveyor

• Cable Belt design

• 51 Kilometers in 2 flights

• Travels at 26 kilometers per hour

• 2,750 tonnes per hour delivery

• 68,000 pulley wheels

Worsley Alumina Pty Ltd8

Refinery

• 2,500 hectare lease

• 100 hectares refinery site• Headwaters of Augustus River• 905 employees• 289 Contractors• Continuous operation• Bayer process• FY 2004 3.25mtpa 8900 tonnes per day• Equidistant from bauxite, coal & port • Established infrastructure

Worsley Alumina Pty Ltd9

Worsley Production

1984 Worsley Commenced

1995 Production 1.7 Million Tonnes

2001/2 Production 3.1 Million Tonnes (Expansion Design)

2003/4 Production 3.25 Million Tonnes

2006/7 Production 3.5 Million Tonnes – subject to approval of feasibility study and successful project completion

00.5

11.5

22.5

33.5

4

1985 1988 1990 1995 2001/2 2003/4 2006/7

Worsley Alumina Pty Ltd10

Other W.A. Refinery Production

KWINANA

PINJARRA

WAGERUP

4

12

10

8

6

2

063 70 72 76 79 84 88 90 95 2001 2003

1963 KWINANA COMMENCED PRODUCTION

1972 PINJARRA COMMENCED PRODUCTION

1984 WAGERUP & WORSLEY COMMENCED

1995 COMBINED PRODUCTION APPROX. 6.5 MILLION TONNES

2003 COMBINED PRODUCTION ESTIMATED 7.8 MILLION TONNES

Worsley Alumina Pty Ltd11

Total W.A. Refinery Production

KWINANA

PINJARRA

WAGERUP

2003 COMBINED PRODUCTION ESTIMATED 11.0 MILLION TONNES

WORSLEY

0

2

4

6

8

10

12

63 70 72 76 79 84 88 90 95 2001 2003

Worsley Alumina Pty Ltd12

Rankings by full operating costs year 2003(refineries estimated at less than us$120 per tonne)

Refinery Capacity US$Damanjodi 1575.0 73.5Worsley 3200.0 82.6Pinjarra 3500.0 86.6Wagerup 2300.0 87.3Pavlodar 1350.0 100.5Pingguo 650.0 106.3Paranam 1925.0 109.5Gladstone (QAL) 3650.0 110.6Belem 2300.0 112.1Guizhou 700.0 114.3Alcan Gove 1850.0 116.7Kwinana 2150.0 119.8

Source: BH-alumina cash costs-2003 Brook Hunt

Worsley Alumina Pty Ltd13

70.0

80.0

90.0

100.0

110.0

120.0

130.0

4 7 14 19 21

Tonnes (Millions)

US$/t

Wor

sley

Pinj

arra

Wag

erup

Pavl

oda

Dam

anjo

di

Ping

huo

Para

na

Gla

dsto

ne (Q

AL)

Bele

m

Gui

zhou

Gove Kw

inan

a

Rankings by full operating costs year 2003(refineries estimated at less than US$120 per tonne)

Source: BH-alumina cash costs-2003 Brook Hunt

Worsley Alumina Pty Ltd14

Alumina Refining costs year 2003

US$/t

8940 11925 29505 55970

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

220.0

240.0

DamanjodiWorsleyPinjarraWgerup

Sao LuisGuizhouShanxiPuerton OrdazKimboPocos De Mairinique

ZhengzhouNainClarendonStadeZhongzhouJajarmUralskRenukootSan CiprianKorbaAchinsk

PavlodarBelemParanamShandongCaldas

Tonnes (Millions)Source: BH-alumina cash costs-2003 Brook Hunt

Worsley Alumina Pty Ltd15

Powerhouse

• Provides steam, power and air to the Refinery• Coal fired boiler/turbine cogeneration plant• Gas turbine/waste heat boiler cogeneration plant• Produces

– 850 tonne per hour of steam– 105 MW of power– 120 MW of power to the grid

Worsley owns and operates coal plant and turbinesSWCJV owns gas turbine and waste heat boilerCogeneration plant is 75% efficient (35% conventional )

Worsley Alumina Pty Ltd16

Unit Labour Usage(tonnes per employee hour)

Tonnes Calcined per Employee Hour

0.6

1.0

1.4

1.8

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Worsley Alumina Pty Ltd17

Labour Turnover

0%

5%

10%

15%

20%

25%

19821984

19861988

19901992

19941996

19982000

2002

Worsley Alumina Pty Ltd18

0

2

4

6

8

10

12

14

16

18

20A

pr '0

2

May

'02

Jun

'02

July

'02

Aug

'02

Sep

t '02

Oct

'02

Nov

'02

Dec

'02

Jan

'03

Feb

'03

Mar

'03

Apr

'03

May

'03

Jun

'03

Jul '

03

Injury Frequency Trends(Injuries per million hours worked)

TRIFR

LTI

Worsley Alumina Pty Ltd19

SHE Performance Indicators

Actual Actual Plan

Description 2002 2003 2004

TRIFR 15.3 7.6 5.5 CIFR 10.6 3.5 2.5

Reportable Environmental Incidents 1 1 <4Achieved ISO 14001 Mine-site Rehabilitation 100 hectares per annum

Worsley Alumina Pty Ltd20

Employee Relations History

1984 - 1994closed shopfederal award & agreementstraditional industrial relationship

Continuous ImprovementProgram

1994 - 2004staff contractsSingle class employee relationship

Worsley Alumina Pty Ltd21

Plan Costs (FY 2004)

Caustic16%Energy

16%

Mine10%

Conveyor4%

Maintenance (ex labour)14%

Labour Mtce6%

8%

Ops Labour11%

Prod'n Cons Contract Services3%

Royalty3%

Shipping & RailOther 3%15% Devel & Activity

2%Other4%

Worsley Alumina Pty Ltd22

Worsley alumina customers in 2003

Middle East8%

Indonesia1%

Russia1%

China36%

Canada17%

Mozambique18%

South Africa19%

Worsley Alumina Pty Ltd23

Contribution to the Community (AUD $m Per Year)

• $100 - direct payroll costs

• $83 - to local contractors & services

• $119 - raw materials, coal, lime etc.

• $16 - rail freight contract

• $15 - State royalties

• $ 8 - State taxes and charges

Worsley Alumina Pty Ltd24

Indexed Cash Operating Cost per tonne (AUD)Constant Dollars (2003) (Base 1990)

70

80

90

100

110

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

Index - Normalised 2003 Prices Trend

Note: 2004 indexed cost is Plan, using corporate macro assumptions.

Worsley Alumina Pty Ltd25

US GULF CAUSTIC SODA PRICING1974 - 2003

US GULF CAUSTIC SODA PRICING1974 - 2003

0

100

200

300

400

500

600

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

Data Source: Harriman Chemsult

USD

/DM

T

CONTRACT

SPOT

Worsley Alumina Pty Ltd26

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

2002

Equ

ival

ent A

lum

ina

Pric

e ($

US)

1955 - 2002 Trend

(No Continuous Improvement)

Variation of Alumina Indicator Price in 2002 Equivalent Dollars

Worsley Alumina Pty Ltd27

Key Idea of the Business

Key objective for Worsley is to engage in continuous improvement to offset annual pre-tax cash loss of AUD 16 Million by:-

•More Tonnes•Less Cost •Improve HSE

Continuous Improvement Program

Worsley Alumina Pty Ltd28

CIP Project List - Summary (AUD 000’s)

• F.Y. 2002 (ref. 2001) One-off costs BenefitsIncreased production 24,425 11,720Reduced costs (sustainable) 2,550 12,455Reduced costs (one-off) _________ 11,720

26,975 35,895• F.Y. 2003 (ref. 2002)

Increased production 9,680Reduced costs (sustainable) 1,260 12,130

1,260 21,810• F.Y. 2004 (Plan ref. 2003)

Increased production 11,780Reduced costs 3,300 9,390

3,300 21,170• F.Y. 2004 (Plan ref. 2001)

Cumulative benefitsIncreased production 24,425 33,180Reduced costs (sustainable) 7,110 33,975Reduced costs (one-off) _________11,720

31,535 78,875

FY 02 FY 03 FY 04 (f’cast)Alumina production 3.137 3.189 3.250(Million Tonnes)

Worsley Alumina Pty Ltd29

Average Quarterly Alumina Prices (USD/t)

100

150

200

250

300

350

400

450Q

1 19

95Q

2 19

95Q

3 19

95Q

4 19

95Q

1 19

96Q

2 19

96Q

3 19

96Q

4 19

96Q

1 19

97Q

2 19

97Q

3 19

97Q

4 19

97Q

1 19

98Q

2 19

98Q

3 19

98Q

4 19

98Q

1 19

99Q

2 19

99Q

3 19

99Q

4 19

99Q

1 20

00Q

2 20

00Q

3 20

00Q

4 20

00Q

1 20

01Q

2 20

01Q

3 20

01Q

4 20

01Q

1 20

02Q

2 20

02Q

3 20

02Q

4 20

02Q

1 20

03

Metal Bulletin Spot Australian Export

Worsley Alumina Pty Ltd30

BHP Billiton Aluminium positioning in alumina

• The spot price increase is recent, with the Metal Bulletin price still at $140/t at start January; $200/t in February and $275/t in April

• BHP Billiton Aluminium’s FY2003 alumina results did not fully reflect this price improvement due to:• Only relatively recent spot price strength (some recent

high prices offset by earlier weak prices)• Modest available FY 2003 spot tonnages (legacy

contracts pre Worsley and post Worsley acquisition obligations)

• Stronger USD/AUD, lower FY 2003 MRN dividend and lower prices

• Alumina market fundamentals look set to remain firm• BHP Billiton Aluminium aims to participate fully in any

alumina price improvement, allowing for pre-existing contracts

Worsley Alumina Pty Ltd31

Refinery expansion options

• Committed Paranam expansion – BHPB share 112ktpa for $29m

• Worsley feasibility study – BHPB share 215ktpa for $103m

• Stage 2 Worsley expansion to beyond 4mtpa

• Alumar optimisation & brownfield potential – BHPB share 600ktpa

• Suriname greenfield refinery potential using Bakhuisbauxite

• M&A & greenfield options, which are kept under active review

Worsley Alumina Pty Ltd32