BHP BILLITON CASE STUDY: MALARIA
André van der BerghRegional Advisor, Southern AfricaHealth, Safety, Environment and Communities
The BHP Billiton Approach
Slide 1
BHP Billiton – A Global Footprint
Corporate centresMarketing offices
PetroleumAluminiumBase MetalsCarbon steel materialsDiamonds & specialityEnergy coalStainless steel
Slide 2
BHP BillitonWorld’s Largest Diversified Resources Company
• Turnover in 2003 of US$17,5 billion
• Listings on Australian, London and Johannesburg stock exchanges
• American Depository Receipts listing on the New York stock exchange
• Market capitalisation of about US$60 billion
• 35 000 employees working in more than 100 sites across 20 countries
• Pipeline of projects at US$8 billion
Slide 3
BHP BillitonVision
We aspire to be not only the premier supplier of natural resources and related products, but one of the world’s best companies – creating
value and delivering superior, sustainable returns to our shareholders
• Win-win Relationships – Having relationships which focus on the creation of value for all parties.
• Safety & environment – An overriding commitment to health, safety, environment responsibility and community (“Zero Harm”)
• Integrity – Doing what we say we will do.• High performance – The excitement and fulfillment of achieving superior
business results and stretching our capabilities
• The courage to lead change – Accepting the responsibility to inspire and deliver positive change in the face of adversity.
Values
• Respect for each other – The embracing of diversity, enriched by openness, sharing, trust, teamwork and involvement.
Slide 4
BHP Billiton – Southern African Operations
CoalKhutalaDelmasRietspruit
CoalKoornfonteinDouglasMiddelburgOptimum
CoalZululand Anthracite
Richards Richards BayBay
DurbanDurban
WitbankWitbank
JohannesburgJohannesburg
CapetownCapetown
BloemfonteinBloemfontein
ManganeseManganeseHotazelHotazel
ChromeChromeMiddelburg FerrochromeMiddelburg FerrochromeFerrometalsFerrometals
Base MetalsBase MetalsPering Pering AluminumAluminum
HillsideHillsideBaysideBayside
Base MetalsBase MetalsRichards Bay Minerals Richards Bay Minerals
MaputoMaputo
ManganeseManganeseManganese MetalsManganese Metals
AluminumAluminumMozalMozal
ManganeseManganeseMetalloysMetalloysManganese MetalsManganese Metals
ChromeChromeEastern Chrome Eastern Chrome TubatseTubatse
ChromeChromeWestern Chrome Western Chrome PalmietPalmiet
Port Port ElizabethElizabeth
MozambiqueMozambique
South AfricaSouth Africa
CoalKhutalaDelmasRietspruit
CoalKoornfonteinDouglasMiddelburgOptimum
CoalZululand Anthracite
Richards Richards BayBay
DurbanDurban
WitbankWitbank
JohannesburgJohannesburg
CapetownCapetown
BloemfonteinBloemfontein
ManganeseManganeseHotazelHotazel
ChromeChromeMiddelburg FerrochromeMiddelburg FerrochromeFerrometalsFerrometals
Base MetalsBase MetalsPering Pering AluminumAluminum
HillsideHillsideBaysideBayside
Base MetalsBase MetalsRichards Bay Minerals Richards Bay Minerals
MaputoMaputo
ManganeseManganeseManganese MetalsManganese Metals
AluminumAluminumMozalMozal
ManganeseManganeseMetalloysMetalloysManganese MetalsManganese Metals
ChromeChromeEastern Chrome Eastern Chrome TubatseTubatse
ChromeChromeWestern Chrome Western Chrome PalmietPalmiet
Port Port ElizabethElizabeth
MozambiqueMozambique
South AfricaSouth Africa
• ±17000 employees in southern Africa •±12500 from previously disadvantaged communities
Slide 5
The Mozal Aluminium Smelter
• 506 000 t.p.a. primary aluminium smelter, built over two phases
• Over US$2 billion capital investment
• Mozambican export earnings climb from US$220 to over US$1 billion
• In 2001 Mozal contributed 55% of exports and 20% of imports
• Mozal contributed 4,6% to Mozambique’s economic growth of 14,8% in 2001
Slide 6
Why is business interested in managing malaria?
• Increasing evidence that malaria management is a positive precursor to development• Main beneficiaries are tourism, business, governments and communities
• Costs of malaria to business include:
Reduced productivity (absenteeism, morale)Medical (evacuations, treatment)Unattractive destination for skilled employees
Discourages establishment of small supporting businessReplacement recruitment and training
The management of malaria is good for business and the communities in which it operates
• Boundaries of responsibilities – a partnership approach
Slide 7
Beluluane Village School: 1999
• No roof, electricity and water• No classes when raining• 130 pupils• Grades 1-5• Up to 20% daily absenteeism
(malaria)
Slide 8
“HOW”
• Site spraying in communities
• Chemical debate• Joint forces with LSDI
• Initial funding R5 million from Mozal
• 73 spray operators trained in 2000• 944 spray operators trained in 2003• Day one 100 km2 was sprayed• Today we are spraying approximately 20 000 km2
Source: MRC
• Industrial theatre for employees and community
Slide 9
Lubombo Spatial Development Initiative (LSDI)
In July 1999 President Mbeki, President Chissano and King Mswati III signed the General Protocol which established a platform for regional cooperation, development and delivery.
In October 1999 the Lubombo Malaria Protocol and tri-national malaria programme was launched.
Slide 10
“HOW”
• Site spraying in communities
• Chemical debate• Joint forces with LSDI
• Initial funding R5 million from Mozal
• 73 spray operators trained in 2000• 944 spray operators trained in 2003• Day one 100 km2 was sprayed• Today we are spraying approximately 20 000 km2
Source: MRC
• Industrial theatre for employees and community
Slide 11
Partnership Funding for the LSDI
0
20
40
60
80
100
Business 100 100 69 51Government 0 0 31 49
2000 2001 2002 2003
Source: MRCSlide 12
Malaria Prevalence
Malaria parasite prevalence in children aged between 2 & 15 years in the four malaria control zones in Mozambique prior to, and following malaria vector control
Source: MRCSlide 13 Confidential
Malaria Cases
Seasonal KwaZulu-Natal malaria case totals
500010000150002000025000
3000035000
4000045000
1998/1999 1999/2000 2000/2001 2001/2002 2002/2003
Malaria Seasons
Malar
ia Ca
ses
Source: MRCSlide 14
Regional Reductions in Malaria
Regional Reductions in malaria compared to baseline indicators in 1999/2000 malaria season
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
1
2001
/200
220
01/2
002
2001
/200
220
01/2
0 02
2001
/20 0
220
01/2
002
2001
/200
220
01/2
002
2001
/20 0
2
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
3
SOU
TH
A
F RIC
A
6 76 76 76 76 76 76 76 76 7%%%%%%%%%
8 28 28 28 28 28 28 28 28 2%%%%%%%%%
SWAZILANDSWAZILANDSWAZILANDSWAZILANDSWAZILANDSWAZILANDSWAZILANDSWAZILANDSWAZILAND
Reduction inReduction inReduction inReduction inReduction inReduction inReduction inReduction inReduction inMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria Incidence
9 19 19 19 19 19 19 19 19 1%%%%%%%%%
0∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋∋
15
kilometres30
8 68 68 68 68 68 68 68 68 6%%%%%%%%%
ZONE1ZONE1ZONE1ZONE1ZONE1ZONE1ZONE1ZONE1ZONE1MOZAMBIQUEMOZAMBIQUEMOZAMBIQUEMOZAMBIQUEMOZAMBIQUEMOZAMBIQUEMOZAMBIQUEMOZAMBIQUEMOZAMBIQUE
4 14 14 14 14 14 14 14 14 1%%%%%%%%%
6 66 66 66 66 66 66 66 66 6%%%%%%%%%
Reduction inReduction inReduction inReduction inReduction inReduction inReduction inReduction inReduction inParasite PrevalenceParasite PrevalenceParasite PrevalenceParasite PrevalenceParasite PrevalenceParasite PrevalenceParasite PrevalenceParasite PrevalenceParasite Prevalence
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
1
2001
/200
220
01/2
002
2001
/200
220
01/2
002
2001
/200
220
01/2
002
2001
/200
220
01/2
002
2001
/200
2
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
320
0 2/2
003
200 2
/200
320
0 2/2
003
2002
/200
3
IndianOcean
6 06 06 06 06 06 06 06 06 0%%%%%%%%%
9 29 29 29 29 29 29 29 29 2%%%%%%%%%
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
120
00/2
001
2000
/200
1
2001
/200
220
01/2
002
2001
/200
220
01/2
002
2001
/200
220
01/2
002
2001
/200
220
01/2
002
2001
/200
2
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
320
02/2
003
2002
/200
3
KWAZULU NATALKWAZULU NATALKWAZULU NATALKWAZULU NATALKWAZULU NATALKWAZULU NATALKWAZULU NATALKWAZULU NATALKWAZULU NATAL(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)(SOUTH AFRICA)
Reduction inReduction inReduction inReduction inReduction inReduction inReduction inReduction inReduction inMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria IncidenceMalaria Incidence
9 69 69 69 69 69 69 69 69 6%%%%%%%%%
Maputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo CityMaputo City
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Source : Ministry of Health, Mozambique Ministry of Health, Swaziland Department of Health, South Africa MRP, Medical Research CouncilProduced by : MRP, MRC. 2002
Sampling Locations
Zone 1
Average Percentage Average Percentage Average Percentage Average Percentage Average Percentage Average Percentage Average Percentage Average Percentage Average Percentage Parasite Decrease Parasite Decrease Parasite Decrease Parasite Decrease Parasite Decrease Parasite Decrease Parasite Decrease Parasite Decrease Parasite Decrease Since Year 1Since Year 1Since Year 1Since Year 1Since Year 1Since Year 1Since Year 1Since Year 1Since Year 1
200020002000200020002000200020002000tototototototototo
200120012001200120012001200120012001
200220022002200220022002200220022002tototototototototo
200320032003200320032003200320032003
200120012001200120012001200120012001tototototototototo
200220022002200220022002200220022002
2000 to
2001
2000 to
2001
2000 to
2001
Slide 15 Confidential
Impact of Vector Control Programme (Estimated)
-86%113Fatalities
-77%40300Medical evacuations
-70%9976000Recorded cases
14.526Million hours
% change per million hoursMozal IIMozal I
Slide 16
Beluluane Village School: 1999
• No roof, electricity and water• No classes when raining• 130 pupils• Grades 1-5• Up to 20% daily absenteeism
(malaria)
Slide 17
Beluluane Village School: 2004
• 420 pupils• Additional grades
progressively• Water/electricity/ablutions• Sports field • MCDT built three additional
schools• Malaria parasitaemia reduced
by 80%
Slide 18
Ministry of Environmental Affairs and Tourism Media Statement
04 December 2003
MINISTER MOOSA ANNOUNCES MAJOR GREEN INVESTMENT FOR GREATER ST. LUCIA WETLAND PARK, SA’S FIRST WORLD HERITAGE SITE
“R432 million investment to go towards the improvement of the lives of local communities”
“The Greater St Lucia Wetland Park, South Africa’s first World Heritage Site, is set to become an international model of the way in which the protection of wilderness can contribute to the alleviation of poverty and benefit social groups way beyond their boundaries –,” added Minister Moosa.
Slide 19
Accommodation Concessions
R501m923R432m884TOTAL
R64m81R54m6420yrsHalycon HotelsPerrier’s Rock
R25m33R21m1020yrsAkani LeisureNdolozi B
R36m56R49m5020yrsAkani LeisureNdolozi A
R29m87R26m7415yrsKwaDapha Complex
R4m22R3m1215yrsWilderness SafariseNkovukeni
R66m99R29m5015yrsIL LeisureBhangazi
Cape Vidal
R258m500R231m60030yrsLubombo HotelsCape Vidal Beach
R17m45R20m2415yrsIL LeisureAmanzimyama
Projected concession
feesDirect jobs
CapexinvestmentBedsConcession
periodPreferred
BidderConcession
Slide 20
Conclusion
• BHP Billiton is committed to developing communities in which we operate -partnerships
• The sustainability of our operations are dependant on the support of the surrounding communities.
“RISKS CAN BE MANAGED”
• Triple bottom line approach
• “Zero Harm” extends into our communities
Slide 21
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ome
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0
5
10
15
20
25
30
35
40
45
50
55
60
Mark
et C
ap. o
n 14
/01/0
4 (U
S$Bn
)The largest company in a consolidating sector
Market value of minerals industry US$416 bnValue of Top Five US$179 bnValue of BHP Billiton US$ 56 bn
Source: Datastream
Appendix 1
Klipspruit
Deep inventory of projects
B R O W N F I E L D
2005 2006CY2004 2007
Energy CoalNickel
Aluminium
Carbon SteelBase Metals
PetroleumAs at 19 February 2004
G R E E N F I E L D
SpenceSpenceMinerva Angostura
RODRODMadDogMadDog
AtlantisAtlantis
DiamondsSize of bubble indicatesproposed capital expenditure; bold outer border signifies sanctioned project
$US 200m$US 200m
Esc’daSulphideEsc’da
Sulphide
Broadmeadow
Panda UG
Dendrobium
Paranam
GoM Infrastr.
WAIO RGP
NWS4th Train
NWS4th Train
Blackwater CPP
Esc’daNorte
Esc’daNorte
Cerrejon
WAIO Acc’dExp’n
YabuluRavensthorpe
YabuluRavensthorpe
Worsley
WA Iron OreLong Term Expansion
WA Iron OreLong Term Expansion
EscondidaCPR
BMA
Appendix 2