BHP Group Limited — Capital/Financing Update 2016

Jun 20, 2016

NEWS RELEASE

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Release Time IMMEDIATE Date 21 June 2016 Release Number 14/16

BHP BILLITON PROVIDES AN UPDATE ON ITS COAL BUSINESS

BHP Billiton today outlined the path for its Coal business to improve returns by unlocking productivity, reducing costs and releasing latent capacity.

President Operations Minerals Australia, Mike Henry, told investors at a Coal briefing that the Company saw significant opportunity to further increase the competitiveness of its coal operations – both in terms of costs and volumes.

“Rather than waiting for higher prices, we have been deliberate in shaping a quality, focused portfolio that allows us to deliver value in challenging market conditions and positions us well for an expected longer-term improvement in coal market fundamentals,” Mr Henry said.

BHP Billiton’s Coal business has delivered over US$3 billion of productivity gains since 2012 and is targeting another US$600 million by the end of the 2017 financial year.

“While cost compression has been evident across the industry, we continue to work hard under our new operating model to improve our performance,” Mr Henry said.

“Even in today’s difficult environment, all of our operations remain cash positive.”

BHP Billiton can also grow its Coal business by releasing low-cost, latent capacity as well as by exercising high quality growth options if market conditions call for it.

The Group’s strong position in coal will be further supported by improving market dynamics.

“The developing world needs steel, steel needs coking coal, and we have the strongest resource position in the seaborne market,” Mr Henry said.

“Against the backdrop of greater uncertainty in the outlook for thermal coal, we are confident that base demand in emerging economies will remain resilient for decades to come and our higher quality coals position us well in an increasingly carbon constrained world.”

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Further information on BHP Billiton can be found at: bhpbilliton.com

Media Relations

Australia and Asia

Eleanor Colonico Tel: +61 3 9609 2360 Mobile +61 407 064 748 Email: Eleanor.Colonico@bhpbilliton.com

Paul Hitchins Tel: +61 3 9609 2592 Mobile +61 419 315 001 Email: Paul.Hitchins@bhpbilliton.com

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Fiona Hadley Tel: +61 3 9609 2211 Mobile +61 427 777 908 Email: Fiona.Hadley@bhpbilliton.com

United Kingdom and South Africa

Ruban Yogarajah Tel: +44 207 802 4033 Mobile +44 7827 082 022 Email: Ruban.Yogarajah@bhpbilliton.com

Jennifer White Tel : +44 207 802 7462 Mobile +44 7827 253 764 Email: Jennifer.White@bhpbilliton.com

Investor Relations

Australia and Asia

Tara Dines Tel: +61 3 9609 2222 Mobile: +61 499 249 005 Email: Tara.Dines@bhpbilliton.com

Andrew Gunn Tel: +61 3 9609 3575 Mobile: +61 402 087 354 Email: Andrew.Gunn@bhpbilliton.com

United Kingdom and South Africa

Rob Clifford Tel: +44 20 7802 4131 Mobile: +44 7788 308 844 Email: Rob.Clifford@bhpbilliton.com

Americas

James Wear Tel: +1 212 310 1421 Mobile: +1 347 882 3011 Email: James.Wear@bhpbilliton.com

Joseph Suarez

Tel: +1 212 310 1422 Mobile: +1 646 400 3803 Email: Joseph.Suarez@bhpbilliton.com

North America

Jaryl Strong Tel: +1 713 499 5548 Mobile: +1 281 222 6627 Email: Jaryl.Strong@bhpbilliton.com

BHP Billiton Limited ABN 49 004 028 077 Registered in Australia Registered Office: Level 18, 171 Collins Street Melbourne Victoria 3000 Australia Tel +61 1300 55 4757 Fax +61 3 9609 3015

BHP Billiton Plc Registration number 3196209 Registered in England and Wales Registered Office: Neathouse Place London SW1V 1LH United Kingdom Tel +44 20 7802 4000 Fax +44 20 7802 4111

Members of the BHP Billiton Group which is headquartered in Australia

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Coal: The path to improve returns 21 June 2016

Mike Henry President Operations, Minerals Australia

Disclaimer

Forward-looking statements

This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments.

Forward-looking statements can be identified by the use of terminology such as ‘intend’, ‘aim’, ‘project’, ‘anticipate’, ‘estimate’, ‘plan’, ‘believe’, ‘expect’, ‘may’, ‘should’, ‘will’, ‘continue’, ‘annualised’ or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward-looking statements.

These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Readers are cautioned not to put undue reliance on forward-looking statements.

For example, future revenues from our operations, projects or mines described in this presentation will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing operations.

Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP Billiton’s filings with the US Securities and Exchange Commission (the “SEC”) (including in Annual Reports on Form 20-F) which are available on the SEC’s website at www.sec.gov.

Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

Non-IFRS financial information

BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This release may also include certain non-IFRS measures including Adjusted effective tax rate, Free cash flow, Gearing ratio, Net debt, Net operating assets, Underlying attributable profit, Underlying basic (loss)/earnings per share, Underlying EBIT margin and Underlying EBITDA margin. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.

Presentation of data

Unless specified otherwise: all data is presented on a continuing operations basis to exclude the contribution from assets that were demerged with South32; references to Underlying EBITDA margin exclude third party trading activities; data from subsidiaries is shown on a 100 per cent basis and data from equity accounted investments and other operations is shown on a proportionate consolidation basis. Queensland Coal comprises the BHP Billiton Mitsubishi Alliance (BMA) asset, jointly operated with Mitsubishi, and the BHP Billiton Mitsui Coal (BMC) asset, operated by BHP Billiton.

No offer of securities

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any jurisdiction, or be treated or relied upon as a recommendation or advice by BHP Billiton.

Reliance on third party information

The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.

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Mike Henry, President Operations, Minerals Australia 21 June 2016

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Statement of Coal Reserves

Coal Reserves

The information on slide 10 of this presentation that relates to Coal Reserves has been sourced from Wood Mackenzie. BHP Billiton’s estimates of its Coal Reserves are shown below.

BHP Billiton Marketable Coal Reserves are compiled by J Field (MAusIMM). J Field is a full time employee of BHP Billiton, has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. This is based on Marketable Coal Reserve information in the BHP Billiton 2015 Annual Report for all assets. All reports can be found at www.bhpbilliton.com.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Marketable Coal Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements.

Coal Reserve classifications (100% basis) for each province, where relevant, are contained in Table 1.

Table 1 – BHP Billiton FY15 Marketable Reserves

Province	Proved (Mt)	Probable (Mt)	Total (Mt)	BHP Billiton interest (%)1
Metallurgical coal
CQCA JV & Gregory JV	1,315	971	2,287	50
BHP Billiton Mitsui	94	50	144	80
Indonesia2	4.6	0.1	4.7	75
Energy coal
Australia	409	376	785	100
Colombia	543	90	633	33.3
New Mexico3	15	-	15	100

1. Weighted average equity interest.

1. Sales agreement entered into following strategic review.

1. New Mexico excludes the Navajo Mine which was sold on 30 December 2013. The sale of the San Juan Mine was completed on 31 January 2016.

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Mike Henry, President Operations, Minerals Australia

21 June 2016

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The path to improve returns

• Safe and reliable operations provide the platform for success

• Longer-term coal market outlook remains positive

• We continue to optimise our simple portfolio of high-quality assets

• We will unlock further productivity, reduce costs and release latent capacity

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Mike Henry, President Operations, Minerals Australia 21 June 2016

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Experienced team enabled by new Operating Model

• Our new Operating Model supports improved returns

• enhanced focus on safety, volume and cost

• lower overheads and more effective functional support

• accelerated replication of best practice

• global centres of excellence for Maintenance, Projects and Geoscience

• Deep operating experience across the leadership team

• average industry experience of 23 years

• operating experience across 6 continents and 13 commodities

Minerals Australia Leadership Team

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Vice President Asset President Vice President Asset President
Planning & Technical BMA HSE Nickel West
David Ruddell Rag Udd Hannes van Rensburg Eddy Haegel
24 years 19 years 28 years 25 years
Asset President Asset President Vice President
WAIO Olympic Dam Projects
Edgar Basto Jacqui McGill Matthew Furrer
20 years 28 years 25 years
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Asset President Vice President President Operations Vice President BMC, NSWEC, IndoMet Improvement Minerals Australia Maintenance James Palmer Rob Telford Mike Henry Brandon Craig 19 years 23 years 26 years 21 years Global Human Risk and Marketing Corporate Global Centres Finance Technology Functions Resources Legal and Supply Affairs of Excellence

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Mike Henry, President Operations, Minerals Australia

21 June 2016

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Safe and sustainable operations

• ~50% improvement in TRIF since June 2015[1,2]

• focused on the elimination of fatalities and serious incidents

• Replication of the Field Leadership Program from Western Australia Iron Ore in FY16 is supporting a safer business

• strengthened safety engagement with our employees

• improved control verification

• better incident reporting and reviews

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Improving our safety performance
(TRIF per million hours worked [1] , operated coal assets)
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8
7
6
5
4
3
June 2013 June 2014 June 2015
12 month moving average 3 month moving average
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1. Total recordable injury frequency (TRIF) for operated coal assets. Excludes assets demerged with South32 from March 2015 and San Juan Coal from January 2016. 2. Reflects improvement in 3 month moving average TRIF.

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Mike Henry, President Operations, Minerals Australia

21 June 2016

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Metallurgical coal outlook supported by growing demand for high-quality product

Short-term

• Cost curve has flattened

• Lower prices are leading to closures and reduced investment

Long-term

• The world continues to require steel and metallurgical coal is essential for pig iron production

• China will continue to import seaborne metallurgical coal

• demand supported by coastal market access and requirement for consistent, quality product in larger blast furnaces

• commitment to rationalise domestic supply remains a risk

• Scarcity of high-quality resources and demand growth in emerging economies underpins robust outlook

• particularly in India where we expect strong steel production growth

Source: Wood Mackenzie; Worldsteel; BHP Billiton analysis.

1. Includes productivity improvements.

2. Emerging Asia includes India and countries in South Asia and North Asia, excluding China, Japan and South Korea.

Mike Henry, President Operations, Minerals Australia

Seaborne metallurgical coal supply and demand (Bt)

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Supply
opportunity
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2015 2020e 2025e 2030e 2035e
Existing supply [1] Demand range Demand
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Gap to close in emerging market steel stock (finished steel per capita, t)

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15
10
5
0
2000 2015 2020e 2025e 2030e 2035e
Emerging Asia² China US Europe
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21 June 2016

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Energy coal will remain an important part of the global energy complex

Short-term

• Markets are expected to remain oversupplied in the near term

• China’s demand for imports is likely to fall further as domestic overcapacity persists

Long-term

• Absolute demand expected to increase by 10-15% by the mid-2020s, despite a declining share in the global electricity generation fuel mix

• India and South East Asia have 26% of the world’s population, but account for only 13% of global electricity generation

• low-cost energy coal is expected to be a preferred fuel source

• China consumes >50% of the world’s energy coal and while its total long-term demand for energy coal is expected to increase, its demand for seaborne coal is likely to decline

Source: Wood Mackenzie; IEA; BHP Billiton analysis.

1. Includes productivity improvements.

2. Based on IEA data from WEO2015_AnnexA © OECD/IEA, www.iea.org/statistics. Licence: www.iea.org/t&c; as modified by BHP Billiton.

Mike Henry, President Operations, Minerals Australia 21 June 2016

Additional seaborne supply required to meet expected demand (Bt)

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Global Accord
scenario shock event
2015 2020e 2025e 2030e 2035e
Existing supply [1] Demand range Demand
Global electricity fuel mix [2] Energy coal use in electricity [2]
(PWh) (coal share, %) (PWh)
50 50 15
10
25 25
5
0 0 0
2013 2020e 2030e 2035e 2013 2020e 2030e 2035e
Coal Oil and gas India China RoW
Nuclear Hydro Other non-OECD Asia
Other Coal share
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Supply
opportunity
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Our portfolio is resilient in a 2[o] C world

• Warming of the climate is unequivocal, the human influence is clear and physical impacts are unavoidable

• We believe the world must pursue the twin objectives of limiting climate change and providing access to affordable energy

• we do not prioritise one of these over the other – both are essential

• Our diverse portfolio is resilient in both an orderly and a rapid transition to a 2[o] C world[1]

• metallurgical coal is essential for pig iron production, with more stringent regulations to reduce emissions likely to increase VIU[2] for quality metallurgical coal

• base demand for energy coal is resilient in emerging economies given its cost competitiveness against other fuel types, with demand for higher-quality product expected to increase in a carbon constrained world

• Our Global Accord scenario reflects a global outcome whereby the long-term goal of holding the increase in global average temperature to below 2°C above pre-industrial levels is met.

• Value-in-use (VIU).

Mike Henry, President Operations, Minerals Australia

Long-term commodity demand range in a 2°C world

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140
120
Long-term demand
in the central case
100
80
60
Long-term demand range across Global Accord [1] scenario and shock
event (relative to long-term demand in central case)
2014 actual demand (relative to long-term demand in central case)
Energy coal Metallurgical coal Oil Henry Hub gas Copper Iron ore Potash Uranium
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21 June 2016

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A simple portfolio of large, long-life assets

 Scale  Resource quality 

Stable geo-political  Cost position environment

 Logistics

Metallurgical coal portfolio

(coke strength after reaction, %)

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80
50
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BHP Billiton
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Note: Bubble size represents 2016 production

20

<1,000 (Marketable Reserves[1] , Mt)

Energy coal portfolio

(net calorific value, kcal/kg)

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8,000
5,000
2,000
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BHP Billiton
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Note: Bubble size represents 2016 production

<1,000 (Marketable Reserves[1] , Mt)

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2016 seaborne metallurgical coal C1 cash cost curve[2]

(US$/t) 200

2016 seaborne export thermal coal C1 cash cost curve[2] (US$/t)

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100
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BHP Billiton
100 50
BHP Billiton
0 0
0%0 25%25 50%50 75%75 100%100 0%0 25%25 50%50 75%75 100%100
(cumulative production, %) (cumulative production, %)
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Source: Wood Mackenzie.

1. Marketable Reserves for all companies including BHP Billiton have been sourced from Wood Mackenzie and are shown on a 100% basis. A breakdown of BHP Billiton’s estimates of its Marketable Coal Reserves is shown on slide 3. 2. Based on equity share of production. Thermal coal cost curve is energy adjusted to 6,063 kcal/kg (NAR).

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Mike Henry, President Operations, Minerals Australia

21 June 2016

10

We continue to simplify our portfolio

• We have created a concentrated portfolio of tier 1 assets that retain significant growth optionality

• Illawarra Coal and South Africa Energy Coal demerged with South32

• sale agreement entered into for IndoMet Coal

• sale of San Juan Mine completed and transition of Navajo Coal to NTEC[1] on track for end-CY16

• Our response to the economics of individual operations has been disciplined

• closure of Crinum operations prior to development of high-cost final longwall panel

• suspension of high-cost, loss-making capacity at Norwich Park and Gregory

• reduction of higher-cost production at NSW Energy Coal

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New Mexico Coal
IndoMet Coal
Cerrejón Coal
South Africa Energy Coal
Queensland Coal
NSW Energy Coal
Illawarra Coal
Energy coal Metallurgical coal Demerged/sold assets
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• outsourcing of drill, blast and pre-strip operations at Blackwater and pursuit of fit for purpose enterprise agreement

• We will continue to pursue further optimisation of our portfolio

Note: Bubble size indicative of FY15 production/capacity.

1. Navajo Transitional Energy Company (NTEC).

Mike Henry, President Operations, Minerals Australia

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21 June 2016

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Continued improvements in productivity…

• Delivered >US$3 billion in productivity gains since FY12[1]

• additional ~US$600 million expected by end-FY17

• Most operations will have the bottleneck at the wash plant by end-FY17

• targeting wash plant utilisation of 8,000 hours by FY19

• improvement driven by a focus on maintenance strategies and reducing non-coal delays

• Focus on achieving truck utilisation of 6,500 hours by FY20[2]

• Daunia’s ultra-class fleet is achieving ~6,000 hours – the best across BHP Billiton’s ultra class fleet

• improvement driven by improved shift change processes, pit stop servicing, and upgraded dispatch and reporting systems

• We expect to deliver a 5 Mt (8%) increase in volumes[3] from FY15 to FY18

• FY15 relative to FY12.

• Truck hours exclude queue time. Target represents wash plant availability of 96% and 8,000 operating hours, and truck availability of 88% and 6,500 operating hours.

• Includes Queensland Coal and NSW Energy Coal.

• Average over FY15 and FY16 YTD.

Mike Henry, President Operations, Minerals Australia

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Wash plant and truck productivity [2]
(availability, %) (operating hours per annum)
100 8,760
90 6,130
80 3,500
FY13 FY14 FY15 FY16eFY17e FY13 FY14 FY15 FY16eFY17e
Wash plant (bottleneck) Target May 2016
Ultra-class trucks Target May 2016
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Increasing availability through ‘pit-stop’ maintenance (ultra-class truck service duration, hours)

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15
10
Upside
potential
5
0
Previous Improvement Pit-stop service All Coal
(current average)4
Daunia
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21 June 2016

12

…is sustainably lowering costs…

• Absolute cash costs ~25% below FY12[1] despite higher volumes

• 56% reduction in unit costs at Queensland Coal

• 29% reduction in unit costs at NSW Energy Coal

• Further 16% reduction in absolute costs anticipated by FY17[2]

• unit costs down 20% to US$52/t[3] at Queensland Coal

• unit costs down 9% to US$38/t[3] at NSW Energy Coal

• At NSW Energy Coal, geological constraints (monocline transition) will increase waste stripping, haulage distances and unit costs post FY17

• studies underway to assess mitigating options

• Recovery in FY17 EBITDA margins despite lower expected prices

• All operations remain cash flow positive

• FY15 relative to FY12.

• FY17 relative to FY15.

• Based on exchange rates of AUD/USD 0.72 in FY16 and 0.71 in FY17. Excludes freight and royalties.

• FY16 and FY17 EBITDA margins based on production and unit cost guidance, and consensus prices.

Mike Henry, President Operations, Minerals Australia

Queensland Coal

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Queensland Coal (price index,
(unit cash costs [3] , US$/t) (EBITDA margin [4] , %) FY12=100)
158 0 30 100
60 15 50
40 0 0
FY12 FY15 FY16e FY17e FY12 FY15 FY16e FY17e
EBITDA margin
Unit cash costs
HCC consensus price
NSW Energy Coal (price index,
(unit cash costs [3] , US$/t) (EBITDA margin [4] , %) FY12=100)
60 40 100
45 20 50
30 0 0
FY12 FY15 FY16e FY17e FY12 FY15 FY16e FY17e
Unit cash costs EBITDA margin
Thermal coal consensus price
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21 June 2016

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…and releasing latent capacity

• Focus on maximising output from our existing operations allows us to grow without major capital projects

• Queensland Coal expected to deliver 42.5 Mt in FY16, 44 Mt in FY17 and 46 Mt in FY18

• NSW Energy Coal expected to deliver 17 Mt in FY16[1] , 19 Mt in FY17 and 21 Mt in FY18

• We have rigorously assessed our sustaining capital expenditure

• Queensland Coal: US$6 per tonne[2]

• NSW Energy Coal: US$4 per tonne[2]

Queensland Coal

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(production, Mt) (strip ratio [3] , x)
50 16.0
35 13.0
20 10.0
FY12 FY15 FY16e FY17e FY18e
Production Strip ratio
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• Caval Ridge Southern Circuit can unlock a further 4 Mtpa (100% basis) with a conveyor and additional mining fleet

• We have long-term options that we can exercise when the time is right

• BMA Goonyella Complex Optimisation

• BMC Wards Well underground development

• BHP Billiton FY16 total energy coal production guidance revised from 37 Mt to 34 Mt.

• Average sustaining capital expenditure over FY17e to FY21e. NSW Energy Coal +/- 50% in any given year.

• Represents total overburden stripping (bcm) to production (tonnes).

Mike Henry, President Operations, Minerals Australia

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NSW Energy Coal
(production, Mt) (strip ratio [3] , x)
25 7.0
20 6.0
15 5.0
FY12 FY15 FY16e FY17e FY18e
Production Strip ratio
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21 June 2016

14

Enterprise Agreement (EA) renewals

• Caval Ridge, Poitrel, Daunia and Mt Arthur Coal EAs recently approved

• Progress continuing on Broadmeadow Mine EA

• BMA has commenced renegotiating the BMA EA 2012

• seeking to simplify the EA

• focus on flexibility to better enable safe productivity improvements and cost efficiencies

• proposing a standalone agreement for Blackwater reflecting its unique operating environment

• coverage to exclude Norwich Park and Gregory Crinum which are no longer in operation

• outcomes need to reflect the current market environment

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Daunia
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Mike Henry, President Operations, Minerals Australia 21 June 2016

15

The path to improve returns

• Safe and reliable operations provide the platform for success

• Longer-term coal market outlook remains positive

• We continue to optimise our simple portfolio of high-quality assets

• We will unlock further productivity, reduce costs and release latent capacity

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Mike Henry, President Operations, Minerals Australia 21 June 2016

16

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BHP Billiton guidance

Coal	FY16e	FY17e	FY18e	Notes
Total metallurgical coal production (Mt)	43	44	46	FY16 comprises Queensland Coal and IndoMet Coal.
Total energy coal production (Mt)	34
Queensland Coal
Production (Mt)	42.5	44	46
Unit cash costs (US$/t)	56	52		Excludes freight and royalties; based on an exchange rate of AUD/USD 0.72 in FY16 and 0.71 in FY17.
Sustaining capital expenditure (US$/t)	3	6		FY17e–FY21e average.
NSW Energy Coal
Production (Mt)	17	19	21
Unit cash costs (US$/t)	44	38		Excludes freight and royalties; based on an exchange rate of AUD/USD 0.72 in FY16 and 0.71 in FY17.
Sustaining capital expenditure (US$/t)	1	4		FY17e–FY21e average; +/- 50% in any given year.

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Mike Henry, President Operations, Minerals Australia

21 June 2016

18

Breakdown of costs

BMA

Cash costs

(FY16e, %)

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9%
8%
29%
9%
10%
18%
17%
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Contractors and consultants
Consumables
Labour
Port and rail
Royalties, rates and taxes
Fuel and electricity
Other
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Fixed versus variable split (approximate)

(FY16e, %)

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35%
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Fixed
Variable
65%
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Mike Henry, President Operations, Minerals Australia

NSW Energy Coal

Cash costs

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(FY16e, %)
4%
9%
30%
10%
10%
15% 22%
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Fixed versus variable split (approximate) (FY16e, %)

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35%
65%
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21 June 2016

19

Queensland Coal operations

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BMA BMC
Mackay
Newlands DBCT Mining lease Port
Rail System Hay Point Mine locations Rail
Goonyella Riverside South Walker
Broadmeadow Creek
Moranbah Daunia
Caval Ridge Poitrel Goonyella Rail System
Peak Downs
Saraji
Norwich Park
Rockhampton
Emerald
Blackwater
Blackwater
Blackwater Rail System
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Note: All rail and port capacities are shown at 100%. 1. Blackwater Rail System capacity has been estimated.

Mike Henry, President Operations, Minerals Australia

• Largest supplier of seaborne metallurgical coal

• BHP Billiton interest: BMA 50%; BMC 80%

• Capacity at four Queensland ports with matched rail flexibility allows us to optimise the supply chain

• Key BMA fleet statistics

• 33 draglines (world’s largest fleet)

• 53 shovels and excavators

• 313 dump trucks

• 142 dozers

• 19 loaders

• Key BMC fleet statistics

• 1 dragline

• 7 shovels and excavators

• 42 dump trucks

• 26 dozers

• 3 loaders

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21 June 2016

20

New South Wales Energy Coal operations

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NSWEC Port
Mining lease Rail
Gunnedah
Mine locations
Tamworth
Quirindi
Muswellbrook
Mt Arthur
Mudgee Singleton
Maitland
Cessnock
NEWCASTLE
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• Open-cut coal mine in the Hunter Valley, Australia, with 23 Mtpa of coal handling, preparation and wash plant capacity

• BHP Billiton interest: 100%

• ~6%[1] of production sold to Bayswater power station via conveyor, remainder exported from Newcastle Port

• Owns 35.5% stake in Newcastle Coal Infrastructure Group (NCIG), which operates the Newcastle Third Port export coal loading facility

• Key fleet statistics

• 2 shovels

• 15 excavators

• 87 dump trucks

• 28 dozers

1. Based on FY15 sales volumes.

Mike Henry, President Operations, Minerals Australia

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21 June 2016

21

Cerrejón Coal operations

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Taroa
Puerto Bolivar
Cabo de La Vela
Nazareth
CARIBBEAN SEA
Castilletes
Manaure
Uribia
RIOHACHA
GULF OF
C O L O M B I A Maicao VENEZUELA
Dibulla
Albania
Barrancas Cerrejón
Fonseca
San Juan Del Cesar
V E N E Z U E L A
Villanueva
VALLEDUPAR
Lapaz
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Note: Port capacity shown at 100%.

Mike Henry, President Operations, Minerals Australia

• One of the world’s largest open-cut export energy coal mines, located in the La Guajira province of Colombia

• BHP Billiton interest: 33.3%

• Cerrejón owns and operates integrated rail and port facilities

• Key fleet statistics

• 36 shovels and excavators

• 101 dozers

• 11 front end loaders

• 258 waste trucks

• 56 coal trucks

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Coal operations material moved and strip ratios

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BMA
(material moved, Bt) (strip ratio [1] , x)
3.0 18.0
1.5 9.0
0.0 0.0
FY12 FY13 FY14 FY15 FY16e FY17e FY18e
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NSW Energy Coal
(material moved, Bt) (strip ratio [1] , x)
0.4 8.0
0.2 4.0
0.0 0.0
FY12 FY13 FY14 FY15 FY16e FY17e FY18e
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BMC
(material moved, Bt) (strip ratio [1] , x)
0.4 12.0
0.2 6.0
0.0 0.0
FY12 FY13 FY14 FY15 FY16e FY17e FY18e
Material moved Strip ratio
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1. Represents total overburden stripping (bcm) to production (tonnes).

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Mike Henry, President Operations, Minerals Australia 21 June 2016

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