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
November 3, 2008
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter) |
BHP BILLITON PLC (REG. NO. 3196209) (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) |
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
Aluminium Investor Presentation
Australia Analysts Site Visit
29 October 2008
Disclaimer
By viewing this presentation you agree to be bound by the following conditions.
Certain statements in this presentation are forward-looking statements (including statements regarding contribution synergies, future cost savings, the cost and timing of development projects, future production volumes, increases in production and infrastructure capacity, the identification of additional mineral Reserves and Resources and project lives and, without limitation, other statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” plans,” “estimates” and words of similar import.) These statements are based on current expectations and beliefs and numerous assumptions regarding BHP Billiton’s present and future business strategies and the environments in which BHP Billiton will operate in the future and such assumptions, expectations and beliefs may or may not prove to be correct and by their nature, are subject to a number of known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially.
Save as required by law or the rules of the UK Listing Authority and the London Stock Exchange, the UK Takeover Panel, or the listing rules of ASX Limited, BHP Billiton undertakes no duty to update any forward-looking statements in this presentation.
No statement concerning expected cost savings, revenue benefits (and resulting incremental EBITDA) and EPS accretion in this presentation should be interpreted to mean that the future earnings per share of the enlarged BHP Billiton group for current and future financial years will necessarily match or exceed the historical or published earnings per share of BHP Billiton, and the actual estimated cost savings and revenue benefits (and resulting EBITDA enhancement) may be materially greater or less than estimated.
BHP Billiton results are reported under International Financial Reporting Standards (IFRS). References to Underlying EBIT and Underlying EBITDA exclude any exceptional items. A reconciliation to profit from operations is contained within the profit announcement References in this presentation to “$” are to United States dollars unless otherwise specified.
Slide 2
Presenter introduction
Jon Dudas Julius Matthys
President Aluminium CSG COO Worsley Alumina
• 24 years resources experience • 26 years resources experience
• 17 years at BHP Billiton • 26 years at BHP Billiton
Markus Meurer Warren McKenzie
VP Marketing Alumina E&G Project Director
• 21 years resources experience • 35 years resources experience
| • |
|
7 years at BHP Billiton • 1 year at BHP Billiton |
Slide 3
Presentation agenda
Business overview
– Operating performance
– Significance to BHP Billiton portfolio
– Comparison to peers
– Key challenges for the industry
Aluminium and alumina commodity outlook
– Global demand and China growth outlook
– Global supply outlook
– Cost curves
– Input costs
Future growth options
Key messages
Slide 4
Aluminium investor presentation
Business overview
– Operating performance
– Significance to BHP Billiton portfolio
– Comparison to peers
– Key challenges for the industry
Aluminium and alumina commodity outlook
– Global demand and China growth outlook
– Global supply outlook
– Cost curves
– Input costs
Future growth options
Key messages
Slide 5
Business overview: HSEC
Safety Community
TRIFR Community Expenditure
(12 MMA) (US$m) 9
Arts Other
8 2% Environment
7 7% Sport / Recreation 4% 6 5% 5
Community
4 46%
Health 17% Welfare 3 2 19% 1 0 Education
Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 FY08 Community Expenditure amounted to US$ 12.6 m (BHP Billiton Share).
Slide 6
Business overview: current assets
Facility Ownership Equity capacity
Alumar 40% 180
Facility Ownership Equity capacity
MRN Trombetas 14.8% 2,664
Kaaimangrasie 45% 720
Klaverblad 45% 630
Coermotibo 45% 630
Facility Ownership Equity capacity Expansion projects
Alumar 36% 540 720
Paranam 45% 990
Facility Ownership Equity capacity
Mozal 47.1% 265
Hillside 100% 704
Bayside 100% 191
Facility Ownership Equity capacity Expansion projects
Worsley 86% 3010 946
Facility Ownership Equity capacity Expansion Projects
Boddington 86% 11,180 3,514
Legend – EquityCapacity (ktpa)
Smelters 1,340
Refineries 4,540
Mines 15,824
Source: BHP Billiton.
Bayside reduced capacity ~50% .
Slide 7
Business overview: operating performance
Year ended June (US$m) 2008 2007 % Change Aluminium EBIT 1,465 1,856 -21.1
Record alumina production
South African power situation will continue to impact metal production
Worsley E&G approved
EBIT Margin
(%)
50 40 30 20 10 0
2004 2005 2006 2007 2008
Year Ended June
Peers BHP Billiton
Source: BHP Billiton and companies’ annual and half year reports Excludes Third Party Trading
* Peers include AWAC, Chalco and the aluminium segments Rio Tinto, Vale and the upstream segments of Alcoa and Alcan (until June 2007).
Slide 8
Business overview : contribution to group
(Our portfolio is diversified and balanced across high margin commodities)
Underlying EBIT Underlying EBIT Margin(a)
(FY2008, US$bn) (FY2008)
25
Petroleum 67% Petroleum Energy Energy Coal 30% (27%)
20
Energy Coal Aluminium
31% Aluminium
Base Metals 62% 15
Diamonds and
Specialty Products 20% Base Metals Non Ferrous (44%) Stainless Steel
25%
Materials
10 Diamonds and
Specialty Products Iron Ore 51% Stainless Steel Materials Manganese 58%
5 Iron Ore Steelmaking
Materials Metallurgical Coal 24% (29%) Manganese
Group 48% Metallurgical Coal
0
(a) EBIT Margin excludes third party trading activities.
Slide 9
Business overview: key challenges
Raw material price pressures
Global power supply
Bringing on new capacity
Quality of Chinese bauxite
Slide 10
Aluminium investor presentation
Business overview
– Operating performance
– Significance to BHP Billiton portfolio
– Comparison to peers
– Key challenges for the industry
Aluminium and alumina commodity outlook
– Global demand and China growth outlook
– Global supply outlook
– Cost curves
Future growth options
Key messages
Slide 11
Aluminium and alumina commodity outlook
Key China Messages
• China has a significant influence on the Aluminium market
– Aluminium is required to supply the intensive urbanisation of China
– A question of self sufficiency of aluminium supply
– Is power a constraining factor?
– Domestic aluminium supply is positioned high on the cost curve
• Short on quality bauxite and thus alumina
– Domestic alumina additions are positioned high on the cost curve
Slide 12
China production capacity can respond rapidly to pricing opportunities
Smelter Production in China Aluminium Price
(‘000 mt) (US$/t) 16,000 3,000
14,000
2,500 12,000 SHFE in US$ (2002 fixed exchange rate) 2,000 10,000
8,000 1,500
Chinese Marginal Smelter 6,000
1,000 4,000 500 2,000
0 0 2002 2003 2004 2005 2006 2007 2008F
CAGR 2002-2007 = 23%
Source: Brook Hunt data.
Slide 13
China has been self-sufficient in smelting
Chinese Aluminium supply is up 650% driven by low capital construction costs and strong domestic demand
Aluminium Production
(kt) 45 40 35
China 30
25 Asia
20 Oceania Eastern Europe 15 Western Europe 10 Latin America
| 5 |
|
North America |
0 Africa 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Brook Hunt.
Slide 14
Chinese Aluminium capacity additions at the top end of cost curve
Chinese Aluminium capacity additions come at the top end of the cost curve
US$/t
Other Smelters BHP Billiton Smelters 2,800 Chinese Smelters
2,400
Bayside 2,000 Alumar Hillside 1,600 Mozal 1,200
800
400
0
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Cumulative capacity (kt)
Source: CRU Smelting costs, 2008
Slide 15
China has a track record of bringing on new power capacity
Ability to bring on new power capacity on time as planned
Sources of Chinese power
(GW)
750 Wind / Other Nuclear Hydro 600
450
300
Coal
150
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: CEC.
Slide 16
200 400 600 800 1,000 1,200 1,400 1,600 1,800 (kt)
Slide 17 0 Jan-04
Source: LME, SHFE and Comex. Apr-04
Jul-04 Exchange Stocks
Oct-04
Jan-05 LME SHFE Comex Aluminium stocks
Apr-05 LME Cash (RH)
Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08
Jul-08
( $ Oct-08
0 500 1,000 1,500 2,000 2,500 3,000 3,500 /t Nominal) LME Cash price
Chinese demand for imported Alumina and Bauxite
Alumina
(kt)
30,000
25,000
20,000
Alumina Imports
15,000
Domestic Alumina
Production –Imported Bauxite Ore
10,000
Domestic Alumina Production –5,000 Chinese Bauxite
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008YTD
Source: BHP Billiton Internal Analysis, Chinese customs data, CNIA.
Slide 18
Chinese alumina supply at the top end of the cost curve
CRU Alumina cost curve, 2008
US$/t
Other refineries BHP Billiton Refineries Chinese Refineries
480
400
320
Paranam
Worsley
240 Alumar 160
80
0
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Cumulative capacity (kt)
Source: CRU Alumina, 2008
Slide 19
Aluminium investor presentation
Business overview
– Operating performance
– Significance to BHP Billiton portfolio
– Comparison to peers
– Key challenges for the industry
Aluminium and alumina commodity outlook
– Global demand and China growth outlook
– Global supply outlook
– Cost curves
– Input costs
Future growth options
Key messages
Slide 20
Most attractive bauxite deposits
Most attractive bauxite deposits are in Guinea
World’s top 10 bauxite deposit countries
(Bt)
Kazakhstan Greece 0.4 Bt 0.6 Bt
China Jamaica India 2.3 Bt 2.5 Bt 1.4 Bt Suriname 0.6 Bt Guyana 0.9 Bt Guinea 8.6 Bt Brazil 2.5 Bt
Australia 7.9 Bt
Source: USGS. Reserves
Slide 21
Guinea project
Guinea
• Long life, world class bauxite resource with embedded options
• Strong government support
• Currently finalising feasibility study
• Greenfield projects are more challenging in new geographies
Slide 22
Aluminium investor presentation
Business overview
– Operating performance
– Significance to BHP Billiton portfolio
– Comparison to peers
– Key challenges for the industry
Aluminium and alumina commodity outlook
– Global demand and China growth outlook
– Global supply outlook (The key constraints)
– Cost curves
– Input costs
Growth profile and capital projects
Key messages
Slide 23
Key messages
• China’s focus is on self-sufficiency in aluminium
• China’s growing requirement to import alumina or bauxite to meet domestic metal demands
• Our growth options and project pipeline are aligned to this view (to feed the emerging seaborne bauxite/alumina market)
• We have a track record of delivering these projects on time and on budget
• Our strategy of having world class long life, low cost assets enables us to maintain a strong EBIT and EBIT margin performance in relation to our peers
• Commitment to safety, the community and the environment
Slide 24
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: 3 November 2008 | By: | Jane McAloon | ||||
|
| ||||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||