Mineral Deposits and their Global Strategic Supply G S S

Andrew Mackenzie Group Executive and Chief Executive Non-Ferrous 14 December 2011

Disclaimer
Reliance on Third Party Information The views expressed here 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. Forward Looking Statements This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of BHP Billiton. 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 For more detail on those risks you should refer to the sections of our annual presentation. risks, report on Form 20-F for the year ended 30 June 2011 entitled Risk factors, Forward looking statements and Operating and financial review and prospects filed with the U.S. Securities and Exchange Commission. No Offer of Securities Nothing in this release 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.

Agenda
Growing p p y for more p p g prosperity people Everything we need to grow is abundant in the Earths crust Ineffective natural resource governance may limit supply H Human ingenuity fi d new ways t supply natural resources i it finds to l t l

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

Slide 3

Agenda
Growing p p y for more p p g prosperity people Everything we need to grow is abundant in the Earths crust Ineffective natural resource governance may limit supply H Human ingenuity fi d new ways t supply natural resources i it finds to l t l

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

Slide 4

Population growth
World population ( (million) )
8,000 7,000 6,000 5,000 4,000 4 000 3,000 2,000 , 1,000 0 1700

1750

1800

1850

1900

1950

2000

2050

Year

Source: US Census Bureau, UN Statistics.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Rising living standards

Global GDP per capita ( (2005 real US$000, PPP basis) )
30 25 20 15 10 5 0 1750 Actual Forecast

1800

1850

1900

1950

2000

2050

Year
Sources: GDP data for 1700-2000 from De Long, 1998, "Estimates of World GDP, One Million B.C. - Present" (Dept Economics, U.C. Berkeley). g ( p y) GDP Data for 2000-2040 from Global Insight WES. Population data for 1800-1950 from Grubler, Arnulf. 2008. "Energy transitions." In: Encyclopaedia of Earth. Eds. Cutler J. Cleveland (Washington, D.C. National Council for Science and the Environment). Population data for 1950-2100 from Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2010 Revision.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Long term economic growth despite short y term volatility

Global GDP growth rate ( per (% p annum) )
6 Developed economies 5 4 3 2 1 0 19001900 1920 19201920 1930 19301930 1940 19401940 1950 19501950 1960 19601960 1970 19701970 1980 19801980 1990 19901990 2000 20002000 2010 20102010 2020 20202020 2025 Developing economies

Year

Source: 1900 to1980 J. Bradford De Long (Estimates of World GDP, 1998); 1980 to 2010 IMF World Economic Outlook Database; 2010 to 2025 Forecast Global Insight.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Chinese GDP is set to grow substantially to 2030

Global GDP per capita1 ( (2005 real US$000, PPP basis) )
50 US Bubble size = GDP of US$5 trillion (real 2005 PPP) Australia Canada Japan South Korea 20 Chile 10 South Africa 0 0 200 400 600 800 1,000 1,200 1,400 1,600

40

30 US 1980 Japan 1980 Russia Brazil

Eurozone China 2030

China India

India 2030

Population (million persons)

Source: Global Insight; BHP Billiton analysis. 1. All figures for 2009 unless mentioned otherwise.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Agenda
Growing p p y for more p p g prosperity people Everything we need to grow is abundant in the Earths crust Ineffective natural resource governance may limit supply H Human ingenuity fi d new ways t supply natural resources i it finds to l t l

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Commodity intensity evolve with p economic development

Demand index1
250 Emerging economies Developed economies

Corn and soybean

200 Meat ect c ty Electricity

150

Copper 100 Steel

50 0 5 10 15 20 25 30 35 40 45 50

GDP per capita (2005 real US$000, PPP basis)

Source: World Bank; Brook Hunt; CRU; IISI; Global Insight; CISA; worldsteel; JBS; IEA; BHP Billiton analysis. 1. The demand intensity index represents the volume consumption per capita consumption, 1968 as 100 for each of the commodities, based on the USA experience.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Crustal abundance of some key commodities

Economic value in-situ in large scale mines (parts per million)
Precious Metals 1,000,000 U 100,000 10,000 b Pb 1,000 100 Au 10 1 0 0.001 0 0 0.01 0 0.1 1 10 100 1,000 10,000 100,000 Ag Cu Base Metals Mn Zn Bulk Commodities K Fe Al

Range of economic values in-situ in large scale mines

Average Crustal Abundance (p (parts p million) per )

Source: Crustal abundance for precious & base metals Levinson A.A. (1974) Introduction to Exploration Geochemistry (Applied Publishing, Calgary), BHP Billiton analysis.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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What we know about crustal resources

Mineral Inventory Mineral Resource Mi lR

Undiscovered Mineralisatio M on

Range of Potential Mineralisation (Based on Exploration Results)

A Advanced Ex xploration

Ore Reserve

Increasing geological knowledge and confidence

The range of Potential Mineralisation is estimated from geological information including boreholes, outcrops and geophysical information. The potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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What we will discover about crustal resources

Mineral Inventory Mineral Resource

Undiscovered Mineralisation

undiscovered mineralisation

Range of Potential Mineralisation (Based on Exploration Results)

Advanced Exploration

Ore Reserve

Increasing geological knowledge and confidence

Increasing geological knowledge and confidence

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Estimated available iron ore

70

20 240 120 20 5 105 10

100

g pp y Years of global supply 5 Iron Ore Province

BHP Billiton estimates of available iron ore from selected basins assuming material >30% Fe is economic in the future. Around 50% of the current global supply of iron is derived from direct ship ores at grades of >60% Fe. In some locations, ores at grades as low as 30% (eg China, Canada and Russia) are currently mined for domestic markets. This estimate assumes that, over time, cut-off grades migrate towards 30% Fe and that 2-3% of the volume of the iron bearing sedimentary formations of the major basins is ultimately extractable. This implies a potential for ~500 years of supply based on current demand.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Estimated available metallurgical coal

8 10 2 5 20

100 1 5 31

Years of global supply g pp y Metallurgical coal basins

BHP Billiton estimates for available metallurgical coal including hard (HCC), semi-hard (SHCC), semi-soft (SSCC) coking and pulverised coal injection (PCI) qualities. Rates assumed for conversion of in-situ resource to product vary from basin to basin in the range of 10-70% depending on nature and disposition of known geology and washery yields. Total is estimated as ~80 years of supply at current rates of consumption.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Estimated available copper

5 5 20 5 5 5

100

16 55 Years of global supply g pp y Copper province

8 13

BHP Billiton estimates of copper available from selected provinces. Extrapolations from estimated reserves and resources published by the USGS (2010) with the application of factors to convert in-situ metal to product depending on knowledge of deposit styles and likely geological disposition. Total is 175 years including 10 years of supply from deep ocean sources.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Estimated available potash

350

75 20 40 10 80 5 10 100 15

Years of global supply g pp y Potash basin

BHP Billiton estimated potash available from selected basins applying a depth constraint of 2500m. The assumed conversion of in-situ to product potash varies from 3-15% depending upon knowledge of seam characteristics and geological disposition. Production is assumed to be derived from conventional, and solution mining plus surface brine extraction methods. This implies a potential for ~900 years of supply based on current demand.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Estimated supply
Expressed as years of estimated global supply at current production rates

Estimated mine life

Estimated orebody life

Estimated available supply

Iron Ore Metallurgical Coal Copper Potash

75 20 40 285

190 160 220 1670

500 80 175 500

Sources: based on US Geological Survey (2010) for reserves and resources (in italics). Other data is BHP Billiton estimates. Estimated mine-life and estimated orebody life are based on in-situ material whereas estimated future supply allows for conversion of in-situ mineralization to product.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Agenda
Growing p p y for more p p g prosperity people Everything we need to grow is abundant in the Earths crust Ineffective natural resource governance may limit supply H Human ingenuity fi d new ways t supply natural resources i it finds to l t l

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Resource governance affects prices

Spot Price of Oil US$ per barrel p
120 Price Nominal (US$/barrel) Price Real (US$/barrel Jan 2011) 100 00

80

60

40

20

0 1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Year
Source: 1945-1983 Arabian Light posted at Ras Tanura; 1984-2010 Brent dated.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Resource governance affects inventory

OPEC

Non OPEC Non-OPEC

Former Soviet Union

123 67 176 166 87

181

763

832

1029

1989

1999

2009

Year

Source: BP Statistical Review of World Energy June 2010.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Agenda
Growing p p y for more p p g prosperity people Everything we need to grow is abundant in the Earths crust Ineffective natural resource governance may limit supply H Human ingenuity fi d new ways t supply natural resources i it finds to l t l

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Discovery technology then,

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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. and now

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Technology extraction
Copper production ( (million tonnes per annum) p )
30 Direct ore Reverberatory furnace Flotation Fl t ti

Run of mine grade ( (Cu %) )

Cu production Run of Mine grade 4.5% 4.0% 3.5% 3.0% 2.5% 2 5%

25

20

15

Bulk open pit mining

Central Africa Copper Belt peak Flash furnace

10

Acidic leach, solvent extraction, electrowinning Bacterial leaching

2.0% 1.5% 1.0% 0.5%

In pit crushing

0.0%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

2020

2030

Source: US Geological Survey (1900-83), Brook Hunt (1984 onwards).

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Technology - transportation

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Technology - metals substitution

high voltage copper cable

high voltage aluminium cable

steel engine block

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

aluminium engine block

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Recycling a source of secondary supply

Energy saving relative to primary metal production UK recycling rates for metals

Zinc

Steel

Lead

Copper

Aluminium

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Source: British Metals Recycling Association.

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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Environmental outcomes

Direct impacts of mineral supply Commencing mine rehabilitation after metallurgical coal mining
Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

Indirect impacts of mineral demand Low carbon emission electricity generation

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Summary
Growing prosperity for more people Everything we need to grow is abundant in the Earths crust Ineffective natural resource governance may limit supply Human ingenuity finds new ways to supply natural resources Global companies have a role to play

Andrew Mackenzie, Group Executive and Chief Executive Non-Ferrous

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