Ian AshbyPresident BHP Billiton Iron Ore

Growing for a Sustainable FutureGlobal Iron Ore & Steel Forecast Conference 2007

1 March 2007Page 2

DisclaimerThe views expressed here contain information derived from publicly available sources that have not been independently verified. Norepresentation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.

Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

1 March 2007Page 3

Continuous Improvement in Safety Performance - WAIO• One Business approach to HSEC

systems and processes

• Focus areas:- Leadership- Behavioural systems- Tolerance

• Programs & actions:- Stop for safety- FRCPs- Risk assessments- Fit for work/life (fatigue management)

- 15 HSEC Standards

• Jan 07 performance 55% improvement on YEJ04 and 17.5% improvement on YEJ06

Safety - 12 Month Rolling TRIFRActual2007 YTD

12

2022

9.910.6

11.712.3

81012141618202224

YEJ04 YEJ05 YEJ06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07

1 March 2007Page 4

BHP Billiton Iron Ore - Strategic Framework

• Identify & expand our resource position: drilling programme• Business improvement – delivering results• Maintain integrity and reliability of our infrastructure

• Developing people to drive improvement and safety

• Safety – Continued reduction in TRIFR toward Zero Harm

• Deliver current expansions, eg. RGP 3• RGP4 feasibility study• Samarco expansion

• Implement plans for further expansion beyond 152 Mtpa.• Focus on global business development and exploration

• Maintaining margins & managing costs through the cycle• Deliver production capability

• Knowledge networks accelerating improvements

People

‘Licence to Operate’

World Class Assets

The BHP Billiton Way(Value Added Processes)

Financial Strength and Discipline

Project Pipeline

GrowthOptions

1 March 2007Page 5

BHP Billiton Iron Ore Overview• Iron Ore became stand-alone CSG in

November 2006

• Global Iron Ore headquarters in Perth, Western Australia

• Responsible for global iron ore development

• No change for customers - CSM marketing model remains (iron ore, metallurgical coal and manganese)

• Integrated mine, port and rail operations in the Pilbara

• 50% share of Samarco in Brazil

• More than 7000 direct employees and contractors in WA

• 8.7% of WA employees Indigenous (Jan 07)

COLOMBIA

VENEZUELA

PERU

BOLIVIA

ECUADOR

GUYANA

SURINAME

FRENCHGUIANA

PARAGUAY

ARGENTINA

URUGUAY

CHILE

BrazilSamarco

Port Hedland

PERTH

Western Australia

WA Iron Ore

Newman

Pellet Plants, Port

1 March 2007Page 6

• Capital investments are delivering ongoing strong production performance.

• Impacts, including Goldsworthy suspension and RGP3 tie-ins, are expected to continue in FY07 offset by business improvements and RGP2 capacity.

• Without the impact of tie-ins, production capability is aligned to RGP2 capacity.

• Goldsworthy remains an important part of future expansion plans.

WAIO 2006 Production Performance

Millio

n Ton

nes

Millio

n Ton

nes (

Half Y

ear)

Continued Strong Production Growth in WA

WAIO 2007 Production Capability

90

95

100

105

110

115

2006 GoldsworthySuspension

Rolling Stock &New Mines

Cycle TimeImprovement +CD4 Installation

Rake WeightImprovement

RGP3 Impacts 2007F

Millio

n Ton

nes

Limited Goldsworthy shipments

Increase in ore cars per rake

Improved rake cycle

times

.

More efficient use

of rail

Impacts of RGP3

interactions.

Potential Upside

26.8

24.4

28.427.1 27.7

52.354.7

2022

2426

2830

3234

Dec Qtr 05 Mar Qtr 06 Jun Qtr 06 Sep Qtr 06 Dec Qtr 0635

45

55

1 March 2007Page 7

Focus on Global Business Development and Exploration

Focus regions outside WA

1 March 2007Page 8

10131087

1150

2005 2006 2007e

Global Steel Production (Mt)

The Global Steel Industry Continues to Power On

+7%+6%

Calendar YearSource: Public announcements, IISI, BHP Billiton

1 March 2007Page 9

China’s Influence is GrowingChina will continue to be the growth engine of the global steel industry in the short to medium term. India has the potential to provide further medium to long term growth.

Source: IISI, AME, Tex, CRU, BHP Billiton

Chinese Crude Steel Production

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Millio

n ton

nes

Calendar Year

1 March 2007Page 10

Australia and Brazil will Remain Key Seaborne SuppliersIndia’s role remains uncertain due to its own potential growth needs

Source: Public announcements, CRU, AME, BHP Billiton

Seaborne Iron Ore Supply Capacity

0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009 2010

Millio

n ton

nes

OthersCanadaSwedenSouth AfricaIndiaBrazilAustralia

Calendar Year

1 March 2007Page 11

• Challenges, ie: rising costs, are impacting and delaying the delivery of new capacity from traditional low cost producers

• Supply gap has been met by high cost producers – India, domestic China, others

• Rising Indian domestic demand is seeing local shortages and pressure to reduce exports

• China’s domestic growth, while spectacular, is not without its issues

• Smaller producers lack volumes to significantly impact the overall supply/demand balance

Balancing supply and demand is likely to take longer than first thought, due to delays in additional supply and more robust demand

Weak demand

Slow supplyresponse

Rapid supplyresponse

Strong demand

UNDERSUPPLY

OVERSUPPLY

Illustrative Supply capacity is constrained to industry average

Millio

n Ton

nes

Seaborne Iron Ore Market Balance

Strong Market Demand Expected to Continue

1 March 2007Page 12

RGP 2 – Ramp Up Complete• OB18 & 25 – Commissioned & producing.• Construction at Port complete:

- CD4: >20Mt throughput since June 06- CD1 & CD3 direct dump to berths A & B- Upgraded OHP#2 conveyors

• Producing at design capacity.

OB25

CD4

OB18

1 March 2007Page 13

RGP 3 – Capacity Increased to 129Mtpa

Mine expansion Area C

Port expansions

Rail upgrades

OB 18

• Expansion of port and rail infrastructure along with Area C capacity

• Expansion at Port includes:

- Car dumper & conveyor upgrades

- Single row East Yard

- Upgrades to C Berth & increased C & D berth flexibility

• All major contracts and component packages awarded

• 35% of construction complete at December 2006

• On schedule, on budget

• First production by end of Q4 CY07 C Berth Port Works

1 March 2007Page 14

OB 18

Newman HubIncremental Yandi

Minor Port expansions

Further Rail upgrades

OB 18

RGP4 and Further Expansion

• RGP4 feasibility study to deliver capacity of approx 152Mtpa

• Board decision expected in 1H CY2007

• Centred on Newman with infrastructure upgrades and expansions at satellite orebodies + port and rail operations

• Evaluating a range of further options to expand beyond 152Mtpa subject to market demand

1 March 2007Page 15

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

YE00 YEJ01 YEJ02 YEJ03 YEJ04 YEJ05 YEJ06 YEJ07 YEJ08 YEJ09 YEJ10 YEJ110

2000

4000

6000

8000

10000

12000

Aggressive 5 -Year Program to Further Grow Resource Base

• Catch up phase completed• Five-year program underway to significantly grow the resource base

Drill metres Resources

Drill

metre

s

Reported Resource BaseReported Resource Base

Reso

urce

s (Mt

)

*Note: This mineral resource information should be read together with and subject to the notes set out on pages 60-61 of the BHP Billiton Group Annual Report 2006. This document can be viewed at: www.bhpbilliton.com

1 March 2007Page 16

Market Driven Costs

Costs Still Challenging but Increases Slowing

• Costs remain challenging, however the rate of increase has slowed.

• Pressures remain in areas such as contractor costs, services and commodity priced consumables

Total Costs* (incl. Freight, Dep'n)

0%

100%

200%

2003A 2004A 2005A 2006A 1H 2007

Rel

ativ

e C

osts

% (A

$/t)

0%

10%

20%

30%

40%

50%

60%

EBIT

Mar

gin

Government Royalties

0%

50%

100%

150%

200%

250%

2003A 2004A 2005A 2006A 1H 2007

Rel

ativ

e %

(A$/

t)

Freight

0%

200%

400%

600%

800%

2003A 2004A 2005A 2006A 1H 2007

Rel

ativ

e %

(A$/

t)

Contract Mining

0%

50%

100%

150%

200%

250%

2003A 2004A 2005A 2006A 1H 2007

Rel

ativ

e %

(A$/

t)

Diesel

0%

100%

200%

300%

400%

2003A 2004A 2005A 2006A 1H 2007

Rel

ativ

e %

(A$/

t)

1H 2007 Cost Breakdown

Freight20%

Contract Mines20%

Rail 8%

Port 7%

Royalty (Government)

10%

Depreciation & Amortisation

8%

Other 15%

Mining Whaleback10%

*Cost base 2003

1 March 2007Page 17

• Availability of skilled personnel, and potential impact on labour productivity, is a major challenge for BHP Billiton and Western Australia

• Largest shortages in trades & semi-skilled personnel

• Preference is to recruit locally

• Taking action in both Operations and Expansion areas:– Expansion: various initiatives

ie: Indigenous training, plus discussing options with State & Federal Governments to supplement shortfalls in local labour supply

– Operations: implemented major culture change program

• Objective is to become the mining industry’s employer of choice

Taking Action to Address Skills Shortage

1 March 2007Page 18

Major Investments in Housing & Accommodation• A$150 million housing program announced in

October 2006• Two-year program includes:

• 106 new houses• 112 refurbishments• 100 ‘Eco Units’

• Largest single private or public investment in Pilbara housing for more than 20 years

• Significant contracts awarded to local builders• Complements major construction in Hedland and

Newman over the past two years• First phase of five-year program• All stakeholders must focus on what is

sustainable over the long term

New Port Hedland Home

Eco Unit Under Construction

1 March 2007Page 19

Infrastructure Access – Key Issue for Continued Growth • Continued prosperity and growth of the WA iron ore industry is under threat• Declaration will have a massive negative impact on

productivity, efficiency and future investment• Costs far outweigh benefits - A$20 billion vs.

A$100 million*• There are better ways, ie: mine gate sales and

haulage agreements• Working with the WA Government to modernise

existing haulage agreements• Also speaking with prospective miners about possible

transport arrangements• We strongly believe in our position and will continue

to defend it

*Source: Centre for International Economics 2006

1 March 2007Page 20

Conclusion

• Market outlook positive• Production capability in the short term will be impacted by

construction tie-ins• Improvement initiatives delivering results• Growth projects continue to be delivered on time and budget• Costs still challenging but increases slowing• Significant drilling to underpin growth• Addressing challenges such as housing and skills shortages• Infrastructure access is a major issue facing the industry• FY07 focus – managing growth and delivering consistent,

predictable and sustainable operating performance

1 March 2007Page 21