2 Safety in Design “The Mining Perspective” Dr Jonathan GilliganDeputy Director – Mine DevelopmentBHP Billiton Olympic Dam Expansion Project
3 DISCLAIMERBy reviewing/attending this presentation you agree to be bound by the following conditions.Neither BHP Billiton nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the fairness, accuracy or completeness of the information contained in the presentation or of the views given or implied. To the extent permitted by law, neither BHP Billiton nor any of its directors, officers, employees or advisers nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith.This presentation is for information purposes only and does not constitute or form part of any offer for sale of any securities or an offer or invitation to purchase any such securitiesThis presentation is directed only at persons who (i) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (ii) have professional experience in matters relating to investments falling within Article 19(5) of the Order or (iii) are outside the United Kingdom (all such persons being referred to as “relevant persons”). This presentation must not be acted on or relied on by persons who are not relevant persons.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.Factors that could cause actual results or performance to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the risk factors discussed in BHP Billiton's filings with the U.S. Securities and Exchange Commission (“SEC”) (including in Annual Reports on Form 20-F) which are available at the SEC's website (http://www.sec.gov). 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.
4 DISCLAIMER (Cont)Cautionary Note to US Investors – The SEC generally permits mining companies in their filings with the SEC to disclose only those mineral deposits that the company can economically and legally extract. Certain terms in this presentation, including “resource”, “measured resource”, “indicated resource”, “inferred resource” and “deposit”, would not generally be permitted in an SEC filing. The material denoted by such terms is not proven or probable Reserves as such terms are used in the SEC's Industry Guide 7, and there can be no assurance that BHP Billiton will be able to convert such material to proven or probable Reserves or extract such material economically. BHP Billiton urges investors to refer to its Annual Report on Form 20-F for the fiscal year ended June 30, 2007, for its most recent statement of mineral Reserves calculated in accordance with Industry Guide 7.Competent Persons for Mineral Resources and Ore Reserves are named in the BHP Billiton Annual Report 2007, which can be viewed at Stuart Hayward, who is a member of AIG and a full time employee of BHP Billiton, and Shane O'Connell, who is a member of the AusIMM and a full time employee of BHP Billiton, have the required qualifications and experience, are joint Competent Persons for the assessment of Mineral Resources at Olympic Dam, which has been reported in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves, December 2004 (the JORC Code). Stuart Hayward andShane O'Connell verify that the 2007 Mineral Resource data included in this document is based on and fairly reflects the information in the supporting documentation relating to Olympic Dam Mineral Resource.The Mineral Resource numbers prior to 2007 have been sourced from the publicly available Annual Reports for WMC and BHPBilliton.
5 Olympic Dam Location ~550km Australia’s largest underground mine Discovered in 1975Fully integrated processing facility3000 workforceMulti-mineral ore body: copper, gold, silver, uraniumWorld’s fourth-largest remaining copper depositWorld’s largest uranium deposit
6 OLYMPIC DAM EXPANSIONAustralia’s largest underground to an open pit mineNew ore processing plantNew 90km rail line, Olympic Dam to PimbaNew electricity transmission lines ~ 270kmNew airport with 737 jet and night flying capacityNew construction camp up to 8000 person capacityNew accommodation and services ~ a doubling of Roxby DownsNew seawater desalination plant and ~ 320km pipelineElaborate or discuss the dot points in turn
7 Mining FatalitiesA diesel mechanic was fatally injured when he was crushed between the blade of an operating dozer and a service truck that he was standing beside in February 2007.A Truck Driver sustained fatal injuries as a result of a collision between two Caterpillar 797B Haul Trucks in June 2007.
8 Mining Significant Incidents An operator of a 793B haul truck fell from the platform of the cabin to the ground sustaining serious head and back injuries in January 2007.A D10T operator fell from the dozer while attempting to enter the cabin. As he attempted to open the door by pulling it towards him his hands slipped causing him to fall backwards approximately 2.5m on to the ground in September 2006.
9 Disturbing Facts – Failing to Establish Safety in Design? Taxonomy of fatalities and non-fatal permanent disabling incidents*44 Fatalities (1992 – 2006 Western Australia)449 Non-Fatal Permanent Disabilities (1987 – 2006 Western Australia)*Source: The Intersafe Group
10 Fatal and Non-Fatal Permanent Injuries – Energy Source What is the most prevalent cause (damaging energy source) of Fatalities and Non-Fatal Permanent Injuries in the mining industry?Vehicular EnergySurface Mining, 23 Fatalities (1992 – 2006 WA Mining*)9 – Heavy vehicle environment5 – Heavy vehicle struck person4 – Heavy vehicle to another vehicle3 – Vehicle component lowered / fell onto person1 – Light vehicle to environment1 – Light vehicle struck person
11 Fatal and Non-Fatal Permanent Injuries – Energy Source Gravitational Events7 Fatalities5 - Free falling objects4 – Other than rock1 – Fall of rock2 people falling from height
13 HSEC Design Principles No ODX contractor or employee will make decisions based solely on economic grounds.Project Teams are empowered to create initiatives to continuously improve HSEC performance.Designs will meet regulatory requirements and BHP Billiton Standards.The principles of ALARP apply in all designs.The Hierarchy of Control applies in all designsThe ODX project has adopted a set of HSEC Design principles to be used in the planning and design of facilities, activities associated with the project
14 HSE IN DESIGN ACROSS THE PROJECT HSE is inculcated into all facets of engineering design.HSE in Design activities and supporting documents have been developed for use throughout the project lifecycle.HSE in Design is not exclusively about conformance with risk assessment processes (e.g. HAZOP). These processes are certainly necessary and important; however, they serve only to ensure that HSE issues have been addressed earlier in the design process.
15 HSE IN DESIGN ACROSS THE PROJECT The Project Team's approach to HSE in Design is consistent with the "National OHS Strategy 2002 – 2012"One of five National Priorities set by the ASCC (formerly NOSHC) is "Eliminate hazards at the design stage".ODX activities relating to HSE in Design aim to influence the behaviours and actions of all persons involved with engineering design so they are committed to the;Elimination of hazardsApplication of Leading PracticeApplication of FRCP requirementsApplication of design related key learning's from Significant IncidentsThe ODX Project Team has established an approach that will inculcate HSE into all facets of engineering design.A number of HSE in Design activities and supporting documents have been developed for use throughout the project lifecycle, they have been created through consultation and are aligned with engineering processes.The Project Team has challenged paradigms by promoting and applying the view that HSE in Design is not exclusively about conformance with risk assessment processes (e.g. HAZOP). These processes are certainly necessary and important; however, they serve onlyto ensure that HSE issues have been addressed earlier in the design process.It is this early stage of design that has been the focus of the ODX Project Team's attention and effort.The Project Team's approach to HSE in Design is consistent with the "National OHS Strategy 2002 – 2012" supported by the Australian Safety and Compensation Council (ASCC). One of five National Priorities set by the ASCC (formerly NOSHC) is;"Eliminate hazards at the design stage".ODX activities relating to HSE in Design aim to influence the behaviours and actions of all persons involved with engineering design (owner's team and contractors) to ensure that, through the course of design they are committed to the;• Elimination of hazards• Application of Leading Practice• Application of FRCP requirements• Application of design related key learning's from Significant Incidents
16 HSE DESIGN CRITERIAThe ODX HSE Design Criteria establishes a set of philosophies and criteria which apply to all design decisions on the ODX Project.The document provides guidance to designers on the fundamental principles of HSE in Design (based on the concept of Damaging Energy) and how to manage damaging energy types through design.Information is supplemented by photos of 'Leading Practice' as well as poor examples and design features to avoid.
17 HSE Design CriteriaWork teams are empowered to review significant incidents and hazards and develop solutions for eliminating these from the work place.Significant Incident Elimination Posters are developed.
19 Good Safety in Design Examples Safe access for regular haul truck maintenance and inspection.Safe access for regular haul truck maintenance and inspection using fixed access systems significantly reduces the risk of an injury to due to a fall.All service points are located at the correct height
20 Good Safety in Design Examples Safe access for regular maintenance and inspection using mobile access systems significantly reduces the risk of an injury to due to a fall.
21 HSE Design Eliminating Fatalities Truck Shovel & Drill AutomationImplementation of Autonomous Truck Haulage, Blasthole Drills and Remote Control Shovels.Separation of automated and non-automated components in a predictable cycle.Haul truck automation in project collaboration with Caterpillar underway
22 HSE Design Eliminating Fatalities Fatigue Detection SystemsInvestigate fatigue monitoring technology such as Optalert to complement fatigue management programs egWork - life balanceFatigue Management Plans.Integrate Optalert with equipment and FMS.Optalert is a new device that continuously measures alertness/drowsiness.Caution, you are showing sins of drowsinessDanger, you are now too drowsy to drive
23 HSE Design Eliminating Fatalities Seatbelt ImmobiliserFatalities and injuries can occur if the driver is not wearing a seat belt in a rollover.Lock out on equipment that does not allow equipment operation to commence if seat belt is not being used as required.Drill Rig CarouselSerious manual handling & crush Injuries occur when drill bits need changing on drill strings.Development of a drill bit carousel for automated change out of drill bits without manual handling
25 Safety in Design Initiatives Over-Wind Protection System for Drill Rig Winch CableWorking at Heights Fall ProtectionAn Over-Wind Protection System for Drill Rig Winch Cable (or Wire-Line). 'Over-winding' a winch cable (or wire-line) on a drill rig can result in wire-line failure and the free fall of a suspended load to the work surface below. Significant Incident data suggested that wire-line failure due to overwinding occurs throughout the drilling industry. Although this long standing and widely recognised hazard has the potential to result in a fatal outcome, there seemed to be a cultural acceptance of the problem and control measures traditionally considered had been administrative (e.g. keeping non-essential workers out of the immediate work area, regular inspection of wire-line, rope sockets and cables heads, operating wire-line at a safe speed).The ODX Project Team and a Drilling Contractor associated with ODX worked together to develop a design solution (engineering control) that prevents winch cables from over-winding, hence eliminating the potential for serious personal injury or even fatality in relation to the potential over-winding of a wire-line cable.Another long standing problem currently being addressed by the ODX Project Team relates to working at heights. An issue confronted by crane, truck and other mobile equipment operators is where to attach fall protection equipment (e.g. harness lanyards and horizontal static lines) when working at height (e.g. whilst securing loads and unloading). This issue is evident in BHP Billiton Significant Incident data and will continue to present risk for ODX now and in subsequent project phases.The 'Sky Hook' is a portable system that provides a means of attachment for fall protection equipment. It has been developed by the ODX Site H&S team in consultation with a local fabrication company and is modelled on a similar initiative developed at the Escondida operation.The Sky Hook will be certified as fit for purpose prior to mobilisation for field trials. Field trials are planned to occur in July 2008.
26 Safety in Design Initiatives Mosslake Drilling 300D Drill RigAutomatic Rod Handler which takes away the need to manually handle rods.Eliminates hand and manual handling injuriesWe have had a number of injuries to drilling teams from handling rods during rod pulls for bit changes.The 300D rod handler reduced manual handling and hand injuries associated with handling rods.The offsider is generally seated in an operators cabin while rods are being pulled in contrast to standing on a drill platform in the elements. Its bit more comfortable as well.
27 Summary Our goal is Zero Harm to our employees and contractors. We will endeavour to eliminate hazards from our workplace by designing safe plant and equipment.Mature organisations have a positive reporting culture of incidents and near misses that are critical for developing solutions for eliminating hazards from the work placeNo decisions will be based solely on economic grounds.The Hierarchy of Control will always apply.
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