C O N V E N E S C O O R D I N A T E S P R E S E N T S

O R G A N I Z E S M E D I A P A R T N E R C O L L A B O R A T E S

“First Meeting of the Network of Mining Regions”

Supply Innovation

Taking Cluster to the Next Level

“First Meeting of the Network of Mining Regions”

Mining industry challenges

Safety and Sustainability

Declining Grade

Industry Disruption

Production vs. Innovation

“First Meeting of the Network of Mining Regions”

Creating space for innovation

Focus on TechnologyStrategically and Operationally

Open Innovation MethodologyCluster to Supply Innovation

Supplier Relationship ManagementSRM

CultureTrust and Collaboration

“First Meeting of the Network of Mining Regions”

Cluster Program

Cluster Program success to date…

• Incubated in 2008 in BHP in Chile and 2010 in CODELCO

• Designed to develop World Class Suppliers, by solving operational issues (Shared Value*).

• Delivers value to the mines and the country.

• Piloted, tested and proven methodology.• Internal and external recognition (IDB,

OECD, Business in the Community, Chilean Public Policy, HSEC Awards, etc.)

Best Practices in Large-Scale MiningMining Council – November 2012

(*) Porter and Kramer. "Creating Shared Value." Harvard Business Review 89, nos. 1-2 (January–February 2011).

Now is the time to build on the Cluster Program’s

success to scale up and amplify delivery

“First Meeting of the Network of Mining Regions”

Taking Cluster to the Next Level –

Supply Innovation

We use our business challenges to spark innovationand create shared value for BHP, our communities

and the countries where we operate.

Through collaboration and trust in action, we empower an ecosystem of innovation delivering

value for all.

“First Meeting of the Network of Mining Regions”

Supply Innovation

Leveraging Supply Innovation to create shared value for BHP, our communities

and the countries where we operate

External Innovation EcosystemEnables regional stakeholders to accelerate

economic growth and job creation

Internal Innovation EcosystemPeople/Culture - Processes - Technology

BHP business challenges become the catalyst for developing an ecosystem of

innovation

Technology

Supply

Operations

Business Challenges

Innovation

“First Meeting of the Network of Mining Regions”

Supply creates shared value at three levels

Supplier Relationship Management / SRMCollaborating with strategic suppliers to amplify our reach:• Local Hiring• Buying locally• Developing local entrepreneurship• Creating innovative solutionsNext lever of value creation for BHP Supply

Creating the Future

Innovator

Adaptor

Simple User

StrategicM

ETSLo

cal &

Ind

igeno

us

Cluster / Supply InnovationFoster an ecosystem of entrepreneurial innovation• Leveraging supplier innovation by taking a business

challenge to the market, both strategic and operational

• Targeted interventions supporting suppliers scale upExample: Cluster Program in Minerals Americas

Local Suppliers & Indigenous Communities

Support form small local suppliers (direct and indirect):

• Access to BHP (Outsource)

• Business basics assistance

• Supporting local entrepreneurs

Example: BMA Local Buying Program in Minerals Australia

“First Meeting of the Network of Mining Regions”

Empowering the Ecosystem of Innovation

“First Meeting of the Network of Mining Regions”

Areas of opportunity

Exploration and Planning

Extraction and Transport

Dry Processing Wet Processing

Inn

ova

tio

n

Tech

no

logi

es

Energy and Water

Automation

Big Data

Process Optimization

C O N V E N E S C O O R D I N A T E S P R E S E N T S

O R G A N I Z E S M E D I A P A R T N E R C O L L A B O R A T E S