Presentation to National Assembly Portfolio Committee on Trade and Industry Dr Xolani Mkhwanazi : Chairman- BHP Billiton SA Mr Lucas Msimanga: Asset President - BHP Billiton Aluminium SA 26 April 2013

Disclaimer

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Forward looking statements This presentation contains forward looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans,

strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments.

Forward looking statements can be identified by the use of terminology such as „intend‟, „aim‟, „project‟, „anticipate‟, „estimate‟, „plan‟, „believe‟, „expect‟, „may‟, „should‟, „will‟, „continue‟ or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward looking statements.

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. Readers are cautioned not to put undue reliance on forward looking statements.

For example, our future revenues from our operations, projects or mines described in this presentation will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing operations.

Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP Billiton‟s filings with the U.S. Securities and Exchange Commission (the “SEC”) (including in Annual Reports on Form 20-F) which are available on the SEC‟s website at www.sec.gov.

Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or review any forward looking statements, whether as a result of new information or future events.

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 Billiton securities in any jurisdiction.

Reliance on third party information The 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.

Purpose

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• BHP Billiton's Group operations in South Africa

• Our partnership with Government to industrialise South Africa

• Our Negotiated Pricing Agreements with Eskom

• Contribution of our aluminium smelters to downstream beneficiation

• Our role as a responsible corporate citizen

• The future of our electricity contracts with Eskom

A diversified global portfolio

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Iron Ore One of the world‟s premier suppliers of iron ore

Manganese Operations produce a combination of ores,

alloys and metals

Metallurgical Coal Produce and market high quality hard coking

coals for the international steel industry

Base Metals One of the world‟s largest producers of silver,

lead and copper

Aluminium and Nickel A global producer and supplier of primary

aluminium, alumina and nickel

Energy Coal One of the world's largest producers and

marketers of export thermal coal

Petroleum A significant oil and gas exploration

and production business

Diamonds and Specialty Products EKATI Diamond Mine1, Potash development

and exploration

Uranium Olympic Dam is the world's largest uranium

deposit

Project and Exploration activities are not shown on this map. 1. BHP Billiton has agreed to sell its diamond business, comprising its interests in the EKATI Diamond mine and Diamonds Marketing operations to Harry Winston Mines Ltd. The transactions are subject to regulatory and other customary conditions. Completion is expected in the first half of calendar year 2013

BHP Billiton Manganese South Africa

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• BHP Billiton Manganese South Africa has interests in

– Hotazel manganese mines in Northern Cape

– Mamatwan open-cut

– Wessels underground mine

• Metalloys is one of the largest alloy plants in the world

• 80% of world‟s high grade manganese reserves are South Africa‟s Kalahari Basin

• This is the highest volume and potentially lowest cost reserve anywhere in the world

BHP Billiton Energy Coal South Africa

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• BHP Billiton Energy Coal (BECSA) operations is the fourth-largest in the country

• Five operations in South Africa – Khutala Colliery – Klipspruit Colliery – Wolvekrans Colliery – Middelburg Colliery – BECSA Coal Processing Plant (BCP)

BHP Billiton Southern Africa - Aluminium

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• BHP Billiton is world‟s eighth largest aluminium producer

• Two operations in South Africa

– Hillside Smelter (opened in 1996)

– Bayside Smelter (opened in 1971)

• One operation in Mozambique

– Mozal Aluminium Smelter (opened in 2002)

BHP Billiton Petroleum - South Africa

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• BHP Billiton is holder of Petroleum exploration rights granted in 2010 to undertake seismic surveys and explorations drilling in Block 3B/4B

• BHP Billiton is currently undertaking a Geophysical survey to assess the hydrocarbon potential of block 3B/4B

• Cape Town is the port of mobilisation, demobilisation, and re-supply for support vessels

Our Contribution to Industrial Development in South Africa

BHP Billiton Aluminium – Our contribution to industrial development in South Africa • BHP Billiton‟s multi-billion rand investment

in the aluminium smelters (Hillside and Mozal) made in direct response to incentives and encouragement by governments of South Africa and Mozambique

• These massive projects were designed to promote industrial development and absorb substantial excess generation capacity following construction of a number of new power stations by Eskom in the late 1980s (reserve margin of more than 40%)

• Eskom‟s excess capacity would not be absorbed through normal economic growth for many years, even decades

• The national utility would continue to ensure there would be sufficient electricity to meet the country‟s needs

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Background on our aluminium business

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Bayside Richards Bay, SA

Opened in 1971 and expanded in 1982

Hillside Richards Bay, SA

Opened in 1996 and expanded in 2003

Mozal Matola, Mozambique

Opened in 2002

How the pricing agreements work

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• Negotiated Price Agreements (NPA) negotiated on a risk sharing basis related to the international price of aluminium and Rand/Dollar exchange rate. The true price paid only able to be calculated over the full life of the contracts

• The price paid for power at Hillside and Bayside is linked to the aluminium commodity price and USD currency rate

• The effect is that in times of high aluminium prices and/or weak rand, BHP pays higher prices and conversely, in times of low aluminium prices and/or strong rand, lower prices are paid for power

• Mozal contract renegotiated in 2010 and no longer commodity price or USD linked

Benefits to Eskom and SA

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Annual Benefit R'mill Cumulative Benefit R'mill Cumulative RevenueValue (2008)

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BHP Billiton‟s Assessment: A – Cumulative incremental revenue to 2008 B – Cumulative incremental benefit to Eskom C – Annual benefit to Eskom D – Represents the incremental variable cost (Comprising cost of additional coal burnt and variable maintenance cost)

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Cumulative benefit of more than R26bn over Eskom’s 14 years of excess capacity

Our investment in beneficiation - Manganese

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• BHP Billiton supports government‟s beneficiation strategy and downstream investments goal

• At almost R1billion, the M14 is currently the largest investment in a manganese furnace in SA and perhaps the world. The last time a large furnace was built was in 1978

• The investment in M14 furnace is a sign of BHP Billiton‟s commitment to South Africa

• Improvements were included in the design of the furnace components to ensure improved emissions control

• M14 furnace will contribute additional carbon monoxide (CO) gas to onsite power generation plant, for additional power output, raising the energy self-sufficiency level from the current base

• The focus on more energy efficient production processes will lead to an improved position of energy efficiency across the production facility at Metalloys and a reduction in CO2 footprint for the site

Aluminium SA annual production flow chart

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75% of all Hulamin’s requirement supplied by BHP Billiton Aluminium SA

Products: Imports and exports

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BHP Billiton Aluminium’s contributions to South Africa

Community spend

A total of R290m has been spent on Community Development between 2008 – 2012

BHP Billiton Aluminium contribution to South Africa

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Contribution to taxation •0.5% or R12bn of GDP •R550m p/a corporate tax (average for 5 years) •R1.5bn to tax base, including personal taxes –p/a •Additional R230m/annum (2012) from PAYE, UIF and SDL •R4.4bn positive impact on Current Account - Balance of Payments (R8.4bn exports less R4bn imports - alumina, petroleum, coke and pitch)

Economic contribution to Richards Bay •10% contribution to regional GDP •7 000 jobs in KwaZulu Natal, •Livelihood for 33 000 people •Significant contribution to ports authorities and municipalities •R4.2bn spent on local supplies, incl. electricity from Eskom (2012)

Source: Econometrix December 2012

Job creation

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• Directly employed jobs at Hillside and Bayside operations as of 2012 is 3000 inclusive of contractors

• Approximately 7000 people have benefited directly or indirectly from employment opportunities at companies associated with the smelters

• Utilising a dependency ratio of 4.0 it is estimated that the livelihood of approx 28000 persons could be dependent o the operations

Source: Econometrix reports – Dec 2012

Ongoye Carbon Sink Project

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• BHP Billiton has spent nearly R6m over the past 5 years

• Addresses environmental issues, unemployment, youth development and our commitment to off-setting our carbon footprint. This project has won two environmental awards. The project has grown to other areas and continues to positively impact on quality of life indicators

• 326 Tree-peneurs registered on the Ngoye Carbon Sink Project – impacting around 4 people per household in the Mzimela Community

Source – Wildlands Conservation Trust quarterly report – Nov 2012

Enterprise development

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• The Business Incubator has a training centre and administration complex providing technical, entrepreneurship and safety skills

• The administration complex provides office accommodation for selected contractors. It is also a GREEN-compliant building built at R20m

• ASA/Raizcorp candidates won several awards at the ZCCI Industry Business Excellence Awards

• 169 entrepeneurs have participated in our Enterprise Development Programme since 2009 and they have collectively created 824 additional jobs

(Source:Raizcorp reports – 2013)

BHP Billiton Paediatric Centre of Excellence

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• BHP Billiton Paediatric Centre of Excellence is situated at King Edward III Hospital in Durban

• A sponsorship of R20m to Carte Blanche‟s “Make a Difference Campaign” was donated by ASA

• The King Edward VIII caters for approximately 3.3 million patients

• With the addition of the Paediatric Centre now caters for 1259 general outpatients, 412 specialist outpatients, 236 High Care and Acute admissions, 57 Day Ward, 203 Procedures and 3430 visits to the Pharmacy on average per month. (January 2013)

• This project highlights BHP Billiton‟s ongoing commitment to the children of South Africa that are our future

• We embrace partnerships of this kind that work towards contributing to the long-term sustainability of the communities in which we operate

The Window of Opportunity Project

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• BHP Billiton has pledged R200m over five years that will benefit four Provinces in SA and one region in Mozambique. Gauteng, Mpumalanga, Northern Cape and KZN. KZN is the first province to benefit from the roll-out

• This project improves antenatal and newborn care, infant nutrition, child development practices, and the quality of health services planning

• It improves the quality and range of clinical and community-based services, and support behaviours among caregivers and communities that positively affect the health and development of young children

Creating value for our communities

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Red Cross Disaster Relief, South Africa

Dreamfields Community Soccer South Africa

HMM Saturday School, Manganese Northern Cape

Nelson Mandela Secondary School Aluminium, Mozambique

Producing aluminium A process of beneficiating coal, electricity

Carbon process

• In the paste plants, calcined petroleum coke and recycled anode butts are heated and mixed with molten pitch

• The hot mixture is compacted into blocks called green (unbaked) anodes

• The green anodes are transferred to the carbon bake furnaces where they are heated in deep, brick-lined pits to around 1100ºC over a period of 21 days

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Carbon process continued

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• After baking, aluminium rods are attached to the anodes and sealed with cast iron

• The rod suspends the anode in the pot and acts as an electrical conductor

• Rodded anodes are delivered to the pot rooms for positioning in the pots

• Some 27 days later, the remains of the anodes (butts) are returned from the pot rooms and are recycled

• The rods are also re-used

Reduction process

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An electrolytic cell or pot in potroom A Potroom A at Hillside

Aluminium SA’s product: remelt ingot and rolling slab

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Fume treatment centre

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• The fume treatment centre, FTC, traps dust and other impurities such as fluoride and tars, from the anode bake furnace

• Impurities are adsorbed onto alumina, which is used in the pot rooms

Electricity contracts and impact on BHP Billiton Aluminium’s business

Plants shut to help South Africa’s power issues

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• Eskom‟s near system collapse in January 2008 due to heavy rains, flooded collieries and low coal stockpiles

• Bayside B & C potlines (250MW) mothballed during 2008 with no compensation

• Helped Eskom‟s system reserve and prevented blackouts

Load shedding smelters to protect other customers

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Bayside Hillside Mozal Total Maximum Demand Installed Capacity

Hours pa Mega-Watts

System Reserve Margin Equals (Capacity-Demand)/Demand

Calendar Years

[No compensation is payable]

Current status of NPA contracts with Eskom

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Media 24 legal challenge

Supreme Court of Appeal ruling

(15 March 2013)

Referral of contracts to NERSA by

Eskom

Uncertainty about the

NERSA process and its impact