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Global Technology
ACE – Automation, Connectivity & Electrification
25th October 2018
Disclaimer
Forward-looking statements
This presentation contains forward looking statements, which may include statements regarding plans, strategies and objectives of management, future performance
and future opportunities. 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. BHP’s Annual Report on Form 20-F filed with the US Securities and Exchange Commission identifies, under the heading Risk Factors,
specific factors that may cause actual results to differ from the forward-looking statements in this presentation. BHP does not undertake any obligation to update or
review any forward-looking statements.
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 securities in any jurisdiction, or be treated or
relied upon as a recommendation or advice by BHP.
2
Safety Share
Situation – Too dangerous for humans
Last week at Nickel West a drill hole 1km underground was closed off with a tap on a pipe. Pressure surged to 650 psi in pipe rated to 150 psi
• Exclusion zone enforced. Anyone entering required rebreather equipment with back-up member above and below ground (labour intensive)
Approach – Work together to release a robot
Woodside, Deakin University Innovation Mine Crëw:
• Debug and configure the wireless communications, and wrote some health monitoring software for the Woodside Robot
• Above ground tests to select jaws of life / parrot beak cutter attached to the Deakin robot hooked up
• Practise run held 600m underground succeeds, while on site a team earing rebreathers configure the wireless communications along the tunnel
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Outcome – Success
• The robot cuts the pipe and is smashed by water pressure, but survives
• The confident environment and deep technical capability at Nickel West allowed the team to make informed decisions quickly and safely. Site culture also welcomed those from Woodside, Deakin, and Innovation Mine
• Nickel West were extremely happy with the result. Operations could continue without more costly / less effective remediation options, such as walling off the drill with shotcrete
Creating Tomorrow’s Mine, Today
Global Technology
Show video of the team in action
INNOVATIONi d e a s
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Understanding the BHP Company strategyTo own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity,
geography and market.
Own and operate
We prefer to own and operate as it allows
us to control our destiny, manage risks and
apply our standards.
Upstream assets
Upstream means we want to be as close to
the raw material as we can be – that’s what
we do best.
Large, long-life, low cost
We are an industry whose cycles can be
measured in decades. To be sustainable
through these cycles we must have
scalable, quality assets that enable us
to operate and succeed in good times and
bad.
Expandable
We choose assets that have the potential to
grow. The best way to grow and create
value is to make the most of our existing
assets.
Diversified by commodity,
geography and market
Not all commodities and markets are the
same, there are cycles within cycles.
Because we are diversified, we are
shielded from the factors that can impact
one market or one commodity, because we
can rely on the others. That means we can
be successful and keep investing through
the cycle. It also means we have a great
mix of commodities, including energy, that
sets us apart from our competitors.
Strength in diversity
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Iron ore CopperPetroleumCoal
Creating Tomorrow’s Mine, Today
Global Technology
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Productivity – trailing…Safety – come a long way….…
Creating Tomorrow’s Mine, Today
Global Technology
Our Industry Challenge
Technology will play a key role
The future of Technology at BHP
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Our three focus areas:
Creating Future Options
Delivering Benchmark Projects
Improving our Foundation
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Our Vision is to enable a fully
integrated and highly
automated business from
resource to market
Technology Presents Important Growth Pathway for BHPBank of Meryl Lynch briefing by Andrew Mackenzie
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Our vision is to enable a fully integrated and highly automated business from resource to market by 2025
The External EnvironmentGlobal Automation Investment – Fast & Furious
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Scale of the opportunity
Innovation leaders & drivers
Autonomous Vehicles Mining
There are estimated to be 1.32
billion motor vehicles worldwide
comprising cars, and light, medium,
and heavy duty trucks. UPS alone is
1.2m vehicles.
The number of
mining
equipment in
use worldwide
is estimated at
88,000
• Big new tech companies
• Plethora of startups
• OEMs racing to stay relevant
• Driven by fleet and robo-taxis
• Fast pace of innovation: cost
reduction and miles driven
Investment environment
• Small number of players
• Proprietary solutions
• Slow pace: less than 1% of
equipment is autonomous after
15 years of development
• Insignificant startup presence
• $4B in Venture Capital funding
since 2016
• Over $80B in research, JV /
partnerships, and M&A transactions
• No significant venture
funding and partnerships
or transactions
The future is autonomy enabling connectivity and electrification
INNOVATIONi d e a s
design
communication inspirationmotivationmanagement
original
finance
v i s i o n
succe
ss
operations
business
goals strategy
i n v e n t i o nu n i q u e
t e a m w o r k
focus
method
discip
line
process
developmentcompany
commitment new
crea t i veplanning
knowledge
understanding
