IndoMet Coal and Indonesia A Mutually Beneficial Relationship · • PT Juloi Coal, currently...

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IndoMet Coal and IndonesiaA mutually beneficial relationship

Rock FunstonPresident Director, IndoMet Coal17 April 2012

Disclaimer

Forward-Looking StatementsThis presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events, conditions, circumstances and the future financial performance of BHP Billiton, including for capital expenditures, production volumes, project capacity, and schedules for expected production. Often, but not always, forward-looking statements can be identified by the use of the words such as “plans”, “expects”, “expected”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. 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 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. All estimates and projections in this presentation are illustrative only. Our actual results may be materially affected by changes in economic or other circumstances which cannot be foreseen. Nothing in this presentation is, or should be relied on as, a promise or representation either as to future results or events or as to the reasonableness of any assumption or view expressly or impliedly contained herein.

No Offer of SecuritiesNothing 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.

Reliance on Third Party InformationThe 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.

Slide 2Rock Funston, President Director, IndoMet Coal, 17 April 2012

Contents

Our Focus and Our Charter

IndoMet Coal

Sustainable Development

Policy in practice

Leaving a positive legacy

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 3

A diversified global portfolio

Project and Exploration activities are not shown on this map.

Stainless Steel MaterialsSupplies nickel to the stainless steel industry

Iron OreOne of the world’s premier suppliers of iron ore

ManganeseOperations produce a combination of ores, alloys and metal

Metallurgical CoalProduce and market high quality hard coking coals for the international steel industry

Base MetalsOne of the world’s largest producers of silver, lead and copper

AluminiumAluminium Operations across all three stages of the value chain

Energy CoalOne of the world's largest producers and marketers of export thermal coal

PetroleumA significant oil and gas explorationand production business

Diamonds & Specialty ProductsEKATI Diamond Mine, titanium minerals, Potash development and exploration

UraniumOlympic Dam is the world’s largest uranium deposit

Slide 4Rock Funston, President Director, IndoMet Coal, 17 April 2012

BHP Billiton - Our focus

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 5

• Overriding commitment to health, safety, environment, community and sustainability

• Our strategy is to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market

Content

Our Focus and Our Charter

IndoMet Coal

Sustainable Development

Policy in practice

Leaving a positive legacy

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 6

IndoMet Coal overview

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 7

• A 75 per cent / 25 per cent joint venture with Adaro Energy

• Operated by BHP Billiton

• Seven Coal Contracts of Work (CCoWs) in Central and East Kalimantan

• PT Juloi Coal, currently undertaking exploration activities within its CCoW in the Murung Raya District (kabupaten), Central Kalimantan Province

• Objective is to establish a successful business, which operates safely, responsibly and sustainably, working to the highest standards

IndoMet Coal CCOWs and Locations

7 Coal Contracts of Work (Gen 3)Located in Central and East Kalimantan

Slide 8Rock Funston, President Director, IndoMet Coal, 17 April 2012

Content

Our Focus and Our Charter

IndoMet Coal

Sustainable Development

Policy in practice

Leaving a positive legacy

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 9

Our Charter

Rock Funston, President Director, IndoMet Coal, 17 April 2012

Our Charter, together with our Code of Business Conduct, are the foundation of our Company

Slide 10

Keeping our people safe

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 11

Our safety practices comply with regulatory requirements and BHP Billiton standards

Employees and contractors are supported by:

• Inductions and ongoing safety awareness training

• Hazard identification and risk management

• Safe – Act – Observation techniques

• Monitoring, reporting and review of safety performance

• Developing and maintaining a positive safety culture

Occupational Health Program

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 12

• Medical check ups

• Vaccination program

• Health insurance

• Health & hygiene education

• Malaria/dengue fever awareness and education

• Monitoring of work conditions (noise, gas, vibration, dust, etc)

• Pandemic management plan

• Management of hazardous waste

• On site medical services

• Emergency and referral management

Enhancing biodiversity and land management

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 13

IndoMet Coal’s Biodiversity Strategy aims to benefit biodiversity conservation in Kalimantan both within the BHP Billiton areas of operation and the wider region

Starting from project inception, we identify, assess and manage specific risks to biodiversity including those posed by closure of an operation

Enhancing biodiversity and land management

Rock Funston, President Director, IndoMet Coal, 17 April 2012

We show our respect for the region through:• Biodiversity strategy

• Sustainable development in Murung Raya

• Minimizing our exploration footprint

• Rehabilitating completed drilling sites

• Providing logistical, safety and helicopter support to the Borneo Orangutan Survival Foundation

A typical helicopter used during drilling activities to abate exploration footprints

Slide 14

Enhancing biodiversity and land management

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 15

High standards will be implemented around all site locations, for example:• Clear process for managing land clearing

• Buffer zone policy

• Rehabilitation of disturbed areas

• Prohibiting hunting and fishing

• Prohibiting removal of flora and fauna from project site

Camera Traps - motion sensor

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 16

Caught on camera

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 17

Yellow Muntjac

Caught on camera

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 18

Bearded Pig

Caught on camera

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 19

Malay Civet Cat

Making a positive contribution to the community

Rock Funston, President Director, IndoMet Coal, 17 April 2012

Through consultation and engagement, IndoMet Coal’s Community Development Program seeks to promote partnerships with the communities and local government, with a focus on: • Local Business Capacity

Building• Employment• Education• Public health • Public infrastructure • Strategic initiatives

Slide 20

Content

Our Focus and Our Charter

In Indonesia and IndoMet Coal

Sustainable Development

Policy in practice

Leaving a positive legacy

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 21

Implemented community programs –clean water program

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 22

Implemented community program –scholarship (midwife)

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 23

The Kalimantan Conservation and Sustainable Development ProjectProject with Fauna & Flora International to provide a platform for the enhancement of regional biodiversity and provide long term habitat for orangutan

Supported by BHP Billiton, Fauna & Flora International will undertake projects to:• Assist Sustainable Land Use Planning

• Build Local Conservation Leadership

• Develop Sustainable Finance and Management

• Raise Awareness

• Undertake Orangutan Relocations with selected partner

Slide 24Rock Funston, President Director, IndoMet Coal, 17 April 2012

BHP Billiton support to Borneo OrangutanSurvival Foundation

Tarzan

Astrid

Monic

Tantri

Assisted BOSF in releasing four orangutans to the wild into Bukit Batikap Protection Forest this year

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 25

Our programs across Indonesia

Jakarta

Employee Volunteer Program to Aceh Tsunami survivors, 2006

Medical response team for Jogja earthquake survivors, 2006

Medical aid for Mentawai Tsunami survivors, 2010; Training May 2012

Rock Funston, President Director, IndoMet Coal, 17 April 2012

We recognise that our presence should also be felt by community outside the project level

Medical aid and post-traumatic Treatment for Puruk Cahu fire victims, October 2011

Slide 26

Content

Our Focus and Our Charter

IndoMet Coal

Sustainable Development

Policy in practice

Leaving a positive legacy

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 27

Mine-life commitment to sustainability at Petangis mine

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 28

Leaving a positive legacy - Padma Award

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 29

An award for Integrated Village Development Program at Muara Tuhup

Summary

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 30

• A successful business, operating safely, responsibly and sustainably - recognising the region’s important conservation and biodiversity values

• Engage with stakeholders and create broad and lasting community, environmental and biodiversity benefits

• Benefit government and local business through capacity building, job creation and business opportunities

• Work to the highest international standards, applying strict policies and procedures for conducting business in Indonesia

Quote

Let no one say - and say it to your shame - that all was beauty here before

you came…

Rock Funston, President Director, IndoMet Coal, 17 April 2012 Slide 31