Mike Darby, Vice President Rail

Iron Ore

BHP Billiton Iron Ore RailroadPresentation to Analysts June 2005

Page 2

Rail System Location MapThe Nelson Point -

Newman Railway is

426km

Yandi spur line is

30kmArea C spur line extension from Yandi is 38km

Port Hedland-Yarrie Railway is 208km

Jimblebar spur line is

32km

Page 3

Safety Performance - Rail Classified Injuries

Classified Injury Frequency Rate for Rail (including contractors)47.3

28.1

17.2

7.811.6

10.412.6 11.6 10.5 9.5 10.5 10.510.5 9.5

8.2

05

101520253035404550

00/01

01/02

02/03

03/04

Jul-04

Aug-04

Sep-04

Oct-04

Nov- 04

Dec-04

Jan-05

Feb-05

Mar-05

Apr- 05

May-05

Historical Actual CI Actual

Page 4

110

61

FY66

FY68

FY70

FY72 FY74 FY76 FY78

FY80

FY82

FY84

FY86 FY88 FY90

FY92

FY94

FY96

FY98 FY00 FY02 FY04 RGP

Tonnes Railed

Rapid

Growth

Period

Page 5

Rail KPI’s - Long Trains (300-336 Cars)

Jul-00

Sep-00

N ov-00

Ja n-01

Mar-01

Ma y-01 Jul-01

Sep -0 1No v-0

1Jan

-02Ma r-02May-0

2Ju l-02Sep-

02Nov-0

2J an-

03Mar-0

3May-0

3Jul

-0 3Se p-0

3N ov-0

3Jan

-0 4Mar-0

4May-0

4Jul

-04Sep-

04Nov-0

4Jan

-05Mar-0

5

Yandi & MACNewman

Number of Train Runs

Apr 05

3,642Long Trains

YTD

1,053 Trains

3,642

Page 6

Million Tonnes Railed Per Employee

0.1260.148 0.151

0.167 0.179

0.2160.245 0.258

0.301

0.353

FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05

Employee Productivity Tripled in the last 10 years

Page 7

Railroad Manning

362

297 288 290 302322

339375

FY99 FY00 FY01 FY02 FY03 FY04 FY05 Actual FY05 Plan

Page 8

21 21 21 22 22 22 22 23 23 23 24 24 25 2526 26 27 27 28 28 29 29 29 29 29 30 30 31 31 32 32 32 33 33 33

3,4103,203

2,971

2,484

2,210

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Feb-

03

Mar

-03

Apr

-03

May

-03

Jun-

03

Jul-0

3

Aug

-03

Sep

-03

Oct

-03

Nov

-03

Dec

-03

Jan-

04

Feb-

04

Mar

-04

Apr

-04

May

-04

Jun-

04

Jul-0

4

Aug

-04

Sep

-04

Oct

-04

Nov

-04

Dec

-04

Jan-

05

Feb-

05

Mar

-05

Apr

-05

May

-05

Jun-

05

Jul-0

5

Aug

-05

Sep

-05

Oct

-05

Nov

-05

Dec

-05 0

5

10

15

20

25

30

35

40

45

50RakesOre Cars

Rolling Stock Fleet Expansion Program

Arrival of 3 SD40

Arrival of 5 SD40

Arrival of 6 SD40

Arrival of 6 SD40

Arrival of 13 SD70

10 Train Schedule

12 Train Schedule

Original

8 AC600 Locos

40 Dash 8 Locos

2210 Ore Car

12 Train Schedule12 Train Schedule

Page 9

Locomotive Fleet Dash 8 AC6000 SD40 SD70ace

Number 40 8 20 13 (Oct05)

Traction Horsepower 4,000 6,000 3,000 4,300

SD40

Dash 8

AC6000

Page 10

Automatic Train Protection - ATP System

Page 11

Current Train Operations

Newman Line• 12 ore trains per day / 14 trains 1 July 05

• Flexibility of One / Two / Three Rake Trains

• Train configuration:1 rake = 104 ore cars = 12,480 tonnes of ore

2 rakes = 208 ore cars = 24,960 tonnes of ore

3 rakes = 312 ore cars = 37,440 tonnes of ore

• Goldsworthy Line• 4 ore trains per day

• Train configuration:90 ore cars = 7,650 tonne of ore

Page 12

Asset Protection

12 Hotbox / Hot Wheel Detectors

1 Cold Wheel Detector

1 Wheel Impact Monitor

3 in Motion Weighbridges

Acoustic Bearing Detection

Dragging Equipment Detectors

Auto Locomotive Downloads

Video Imaging

Page 13

• Vertical suspension travel (ride quality)

• Wheel-rail acceleration (rail condition)

• In-train forces

• Lateral stability (hunting)

• Longitudinal acceleration

• Car body / draft gear pocket strains

• Temperature

• Brake pipe pressure

Instrumented Ore Cars (IOC)

Page 14Car side wall strains

IOC Reporting

Automatic data downloading

Dumping Forces Measured

Page 15

IOC Other Applications

Strain Gauge on Sidewalls

Measure Car Body Dumping Strains

Control Service Dumping Peaks

Strain Gauge on Draft Gear Pocket

Measure Longitudinal Train Forces

Control Service Loading

Peaks & In Train Forces

• Bearing Temperature & Brake Pressure

• Track Assessment Sensors

• Improve Car Body Life

Page 16

The following bearing faults are detected:

• Cone Faults

• Roller Faults

• Audible Wheel Flats

• Cup Faults

• Looseness / fretting

• Noisy Wheel sets (flanging)

Acoustic Bearing Detection

Page 17

• Flange Height

• Flange Width

• Vertical Flange

• Hollowing Depth

• Rim Thickness

• Wheel Diameter

Video Imagining Technology

Page 18

Video Imaging Reporting

1. Tabulated

2. Pictorial

3. Graphical

Page 19

37 Traceable Components for each Ore Cars

Page 20

Wheels Ultrasonic Testing

Page 21

Train Driving Simulator

Used To Define Driving Strategy

& Training Needs

Page 22

Aluminothermic / Flash Butt

Page 23

In Track Flash Butt Welder

Page 24

Rail KPI’s Broken Rails

37

62

6964

3429

25

49

56

36

2723

4

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05April

Calendar Year

Page 25

Best Practice

R&D programme since 1970, combination of ‘in-house & Monash University

It focuses on four main areas:-

• Rail / Wheel Interface

• Higher Axle Load

• Train Lengths / Cycle Time

• Components Life

Page 26

Higher Axle Load

1970 1974 1986 1996 99-04

8996

107116

Yandi

126Yandi28.5 tonnes 30.0 tonnes

32.5 tonnes35.0 tonnes

37.5 tonnes

Wettonnes

per wagon

Operating Improvements

40.2 tonnesAxle Load

Page 27

Rail / Wheel Interface

0.34

1.9

1980 2005

350

1,800

1980 2005

Ore Car Wheel LifeMillion Tonne Kms

Rail Life (Tangent Track)Million Gross Tonnes

Page 28

Train Lengths / Cycle Time

Train LengthsCars per Train

131

180208

312

1972 1984 199240

36

30

1972 1984 Current

Train Cycle TimeHours

Current

Train LengthCars / Train

Page 29

Environmental & Efficiency

1.45

0.68

1978 2005

Fuel

Sav

ings

Contributing Factors

Rail / Wheel profile

Aerodynamic Ore Cars

Efficient Locomotives

Distributed Power

Higher Axle Load

Longer Trains

Driver Strategy

Page 30

What’s in the “Future”

• Continued Safety Focus

• 40 tonne axle loading

• “Cruise Control”

• Train Automation

• Electric Brake Trials

• Increased Tonnage (16 train schedule arrival based)