BHP Billiton Base Metals

CSG Briefing 13 October 2004 Disclaimer The views expressed here contain information 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. 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.

Page No 2 Agenda

Introduction and Strategy Diego Hernandez, President

Financial Overview Glenn Kellow, VP & CFO

Market Overview John Crofts, Marketing Director

Operations Diego Hernandez, President Ian Ashby, VP & Chief Operating Officer

Growth Diego Hernandez , President

Question and Answer

Page No 3 Purpose of Today’s Briefing • Summary of key messages to close • An update on the CSG’s performance • To discuss some of the key issues facing the CSG and the industry • To demonstrate our continuous optimisation of the existing asset base • To highlight our value enhancing organic growth projects, helping to meet increased global demand for our commodities

Page No 4 BHP Billiton Base Metals

Base Metals M arketing, The Hague M arketing presence in Shanghai, Tokyo and Seoul Resolution Project, Arizona

Antamina, Peru Cerro Colorado Chile Tintaya, Peru

Cannington, Escondida, Chile Spence Project, Chile Australia

CSG Head Office Page No 5 Santiago, Chile Strategic focus Base Metals’ mission is to create value for BHP Billiton shareholders through its exposure to the base metals value chain. The clear strategy is to create a demand-focused, low cost production base with a bias towards efficient open cut mining and direct leaching technologies.

Numerous Due Diligence and evaluations completed Divestment HVC & Robinson FY 2004 M&A Achievements Bolt-on Acq. Resolution JV Ongoing exploration effort ACL Pilot Start Up (45%) Growth Pipeline Norte Execution Sulphide Leach Approved CPR Spence Feasibility Six Sigma Freight management Savings and Effici encies $45M EBIT $32M EBIT benefits AES Norgener Power benefits Renegotiation Annual record tonnes to Record Production pad Low Cost, High Quality Assets Antamina Labour agreements at all Cerro Colorado assets completed Record Production Record Production Tintaya Sulphide Cannington Escondida Operations Restarted Production records in mine rates, Annual Mine, Mill Mine rate, Concentr ators mill rates and annual oxide production & concentrate rate, mine production and Page No 6 production shipped oxide annual production HSEC

CIF employee / contractor 12M Rolling Avg NO PROJECTS • Base Metals is committed to Zero 6 Harm • Environment – our license to operate. 5 • Community – BHP Billiton Base

Metals aims to be valued as a good 4 corporate citizen in each of the communities in which we operate

3 2 l-0 Ju 2 Aug-0 Sep-02 t-02 Oc v-02 No -02 Dec -03 Jan 3 b-0 Fe Mar-03 Apr-03 3 May-0 3 n-0 Ju 3 l-0 Ju 3 Aug-0 Sep-03 t-03 Oc v-03 No -03 Dec -04 Jan 4 b-0 Fe Mar-04 Apr-04 4 May-0 4 n-0 Ju 4 l-0 Ju 4 Aug-0

CIFR Combined CIFR Employee CIFR Contractor

Page No 7 Production (BHP Billiton Share - payable)

Copper Production Silver Production 45 1,200 Concentrate Cathode 1,000 40

800 s s 600

000 tonne 000 400 35 million ounce million 200

0 30 FY2002 FY2003 FY2004 FY2002 FY2003 FY2004

Lead Production Zinc Production

260 250 250 200

240 150 230 100 000 tonnes 000 tonnes 220 50 210 200 0 FY2002 FY2003 FY2004 FY2002 FY2003 FY2004

Page No 8 BHP Billiton’s ranking in base metals mine production Top Copper Miners - 2003 Top Lead Miners- 2003

1 800 30 0 s 1 600 25 0 1 400

1 200 20 0

1 000 15 0 800

600 10 0

400 50 Attributable mine prod. - '000 tonne '000 - prod. mine Attributable 200 tonnes - '000 mine prod. Attributable

0 0 o n a) o e n o Run at lc g t o t lit tr d in ico e s mi nco de o ex Bil X o D T Do ( asminco Co s M P P Billi o BHP M p Rio MI el up h BH Teck C P Gr Top Silver Miners – 2003 Top Zinc Miners - 2003

60 80 0

70 0 50

60 0 40 50 0

30 40 0

20 30 0

Attributable mine prod. - Mozs - mine prod. Attributable 10 20 0

Attributable mine prod. - '000 tonnes - '000 prod. mine Attributable Data: CRU 10 0 0 Calendar Years s n z o 0 ied nole M exic Pe Billito M Rio T into fex n n HP lska po a B u rica les Zi n ominco n Z inc e ncor e llito liden Po Gr Volcan e e no o Nor anda sta m PBi P B ck C A Gl e BH KGHM T Hindu n glo A Page No 9 Competitive Position Unit Costs - 2004 (all Data from and copyright Brook Hunt)

C1 Pro-rata Costing (1) (1) Assumes by-products share costs

Page No 10 Key Issues •Market – Demand – China is the key growth market – Supply – Reactivation of shuttered capacity and new mine development – Base metals’ prices, TC/RC’s and freight • Royalties – Escondida the largest single first category tax payer in Chile – over US$2B paid in first 14 years of operations –Peru • Chile – gas and power status

Page No 11 Finance

Glenn Kellow Base Metals CSG

EBIT Summary by Asset (pre-exceptionals) FY2004 FY2003 Variance $US m % EBIT ($US millions) Escondida 808 217 591 272% Tintaya 75 (30) 105 Cerro Colorado 82 28 54 193% Antamina 103 34 69 203% Alumbrera 0 40 (40) Cannington 171 92 79 86% Highland Valley Copper 7 (3) 10 Other Businesses (90) (92) 2 Total CSG (pre-exceptionals) 1,156 286 870 304%

Page No 13 EBIT Variances – FY03 to FY04

EBIT Variances

1,500 881 (103) 45 (17) (19) (5) (36) 1156 1,200

900

600 124 $US Millions 286 300

0 FY03 EBIT Volume Price/ Exch Infl Six Sigma Grade Costs Expl. Ceased/ FY04 TCRCs Sold/ EB IT Other

Page No 14 EBIT Sensitivity (FY05)

EBIT Sensitivities Commodity Prices $US m illions 1 cent change in Copper Price 22 10 cent change in Silver Price 4 1 c change in Zinc Price 2

Exchange Rates 1 cent change in $A rate 2 10 peso movement in CHP rate 6

Copper Price and Chilean Peso Comparison FY02 FY03 FY04

Realised Copper Price ($US/lb.) 0.69 0.73 1.14 Average Chilean Peso Exchange Rate 672 719 634

Page No 15 EBIT Comparison – Base Metals CSG

EBIT and Copper Price Revenue by Commodity

4,000 Copper Silver Lead Zi n c Gold 1500 EBIT Copper Price $1.20

1156 $1.00 3,000 1000 $0.80 2,000 $0.60

500 $0.40 millions $US 1,000 $US millions $US 286 198 $0.20 Realized$US/lb. Price 0 $0.00 0 FY02 FY03 FY04 FY2002 FY2003 FY2004

Cash Flow and Capex EBIT ROC

Free Cash Flow before Tax Capital Expenditure 35% 1200 30% 900 25% 600 20% 300 15%

0 millions $US 10% $US millions$US -300 5% -600 0% FY2002 FY2003 FY2004 FY2002FY2003FY2004

Page No 16 Investing in Profitable Future Growth

Base Metals Forecast Major Projects Capex (Escondida Norte, Escondida Sulphide Leach, Spence)

900.0 800.0 700.0 600.0 500.0

US$M 400.0 300.0 200.0 100.0 - FY 2004 FY 2005 FY 2006 FY 2007 Actual Budget Forecast Forecast

Page No 17 Southwest Copper During FY04, a charge was taken against profit of $425 million, in order to provide for: • higher capital closure costs • expected ongoing costs (overheads and water management) which were previously expensed

Page No 18 Marketing

John Crofts World refined copper production and BHP Billiton managed sales by region World refined copper production by type BHP Billiton Cu Concs sales by region (Total production in CY04 = 16 Mt)

Secondary China 13% Japan 11% Other SXEW Primary refined 21% (Integrated) Asia 17% 14% 44% Americas Includes all Cu Primary refined 25% Europe Concs marketed (Custom) 29% for Escondida, 26% Tintaya, Antamina agency, BMAG

BHP Billiton attributable copper production BHP Billiton copper cathode sales by region (Total output in FY04 = 0.95 Mt )

Americas China Cathode 16% 16% 27% Other Copper-in-Concentrates Asia Europe Includes all Cu (payable) 37% 31% cathodes marketed 73% for Escondida, Tintaya, BM AG

Page No 20 Copper’s intensity of use has recovered from the shocks of the 1970s

World Copper Consumption and GDP Per Capita …The growth of 1950-2003 China’s economy, and 130 Emerging Market economic expansion in other growth. China’s 2000 industrialisation gathers pace 120 emerging markets are Post-WWII emergence and growth of Japan. US and responsible. Despite 110 European consumer booms 1973 1979 1997 unpredictable major global economic 100 1990 1966 shocks, copper 1982 2003 90 1993 2.5 kg Cu per per son intensity of GDP shows a strong, 80 persistent upward 1955 1973 and 1979 Oil Price Shocks Collapse of Soviet trend 70 and 1982 Inflationary Recession central economy and Major focus on reduced unit use 1993 recession of metals, including copper Metal Intensity Per Capita (1985=100) Note: A steeper slope repr esents 60 a stronger rise in use of copper in 1950 relation to economic activity – a 50 1.2 kg Cu per per son gentle slope indicates lower ‘intensity of use’ y = 0.6038x + 42.324 R2 = 0.8502 40 40 50 60 70 80 90 100 110 120 130 140 US$GDP(1995) Per Capita (1985=100)

Page No 21 China accounts for more than 20% of world refined copper demand

Refined Copper Consumption, 1950-2004, ('000 tonnes) 18000

16000 World demand – back to …Asia now accounts for 14000 “normal” after the Oil approx. half world Shocks and collapse of 12000 China demand for copper USSR? (But still cyclical) and other major 10000 metals

8000 Australasia S. Korea 6000 Japan China Other Asia 4000 Africa S America 2000 USA N America (less USA) Russia 0 USSR (less Russia) 1950 1960 1970 1980 1990 2000 Europe

Source: CRU. Data is for apparent consumption of refined copper

Page No 22 Continued stock withdrawals from Exchanges’ stocks have kept prices high

LME copper price – US$/tonne Copper stocks – ‘000 tonnes 3000 1600 LME 3-mth copper price 2800 1400 (monthly average) 2600 SHFE 1200 2400 Comex 1000 2200

2000 800 LME 1800 600 1600 400 1400 200 1200

1000 0 J- FMAM J J A SONDJ-FMAMJ JASONDJ-FMAMJ J ASONDJ-FMAMJ JAS 01 02 03 04 Data: LME, Comex, SHFE Industrialising countries have followed two distinctive “intensity” paths

Copper Demand Intensity of GDP (1950-2002) 30 Korea and High apparent Taiwan have consumption for USA 25 export oriented South Korea shown very manufacturing Taiwan economies? Japan strong increases 20 in copper intensity per 15

capita as they (k g/pers on) industrialised 10

since the 1970s 5 Refined Cu Consumption per Capita Capita per Consumption Cu Refined

China’s position today 0 (>doubled in 10 years) 0 5000 10000 15000 20000 25000 30000 35000 40000 GDP per Capita (2002 US$/person) Chinese Cu Consumption and GDP 3.0 Per Capita 2.5 Japan followed a path of slower, but 2.0 consistent, increases in copper demand 1.5 1.0 intensity of GDP (per capita) during its Cu: Kg/capita Cu: 0.5 post-WWII industrialisation 0.0 0 200 400 600 800 1000 GDP: $US/capita Page No 24 Independent forecasts all predict deficits in world refined copper market in 2004 and 2005

‘000 tonnes 1000 Forecasts 800

600

400

200

0

-200 BHPB refined copper balance -400 Brook Hunt -600 BME CRU -800 ICSG -1000 1999 2000 2001 2002 2003 2004 2005 Treatment and refining charges have risen rapidly but from a very low base

TC/RC – Nominal Cents/lb 40 •Spot terms have risen rapidly since Spot TC/RC April this year 35 •Expected to remain high in Q4 2004

30 •Contract terms, even including Price Contract TC/RC Participation, are much less volatile 25 •Terms were at historic lows in 2003/Q1 2004 20 •Adjustment has been rapid but from a low base 15 •Current levels are not out of line with 10 history Contract TC/RC/PP 5

0

96 3 97 3 98 3 99 3 00 3 01 3 02 3 03 3 04 3 1- Q 1- Q 1- Q 1- Q 1- Q 1- Q 1- Q 1- Q 1- Q Q Q Q Q Q Q Q Q Q Data: CRU Q4 04 BHPB estimate Operations

Diego Hernandez and Ian Ashby Escondida – A Remarkable Monetisation of a Mineral Resource • Discovered in 1981 • Commissioned in 1991 • Currently completing its 7th growth project in 13 years of operation • Became the largest copper mine in the world in its 5th year of operation • Currently: – +1 Million t of material mined per day – +220,000 t of ore processed per day Mine Copper Production Ramp Up Source: Public Domain – Ramping up to 300,000 tonnes per day 2004 placed on leach dumps 1200 Apollo – Once Sulphide Leach and Norte 1000 completed, a fleet of over 100 (250 to 800

380t) trucks will move ore from two pits 600 Escondida Discovery to two concentrators and and two leach kt Cu OD dump / sx-ew facilities 400 Discovery 200 4 6 95 00 8 77 98 19 2 0 0 59 96 19 1 2 41 95 19 1 4 23 93 19 1 05 91 19 1 19 1 Page No 28 Bingham Canyon ChuqicamataYear Oympic Dam Escondida Escondida – Achieving its Full Potential Escondida Copper Production (BHPB Billiton Share) Escondida EBIT (BHP Billiton Share) 700 1,000 600 Cathode Concentrate 800 500 Constrained 600 400 production and low copper prices 300 400

200 millions$US 200 100 000 payable tonnes 0 0 FY2000 FY2001 FY2002 FY2003 FY2004 FY2000 FY2001 FY2002 FY2003 FY2004

Escondida Tonnes Mined Per Day (7 day average) Escondida Tonnes Processed per Day (7 day average) 1,400 300

1,200 250 1,000 200 800 150 600 100 400 ,000 Tonnes per day per ,000 Tonnes day per ,000 Tonnes 200 50 0 0 Sept 02Dec 02 Mar 03 Jun 03Sept 03 Dec 03 Mar 04 Jun 04 Sept 04 Sept 02Dec 02 Mar 03 Jun 03 Sept 03 Dec 03 Mar 04 Jun 04Sept 04

Page No 29 Cannington – A World Class Asset Continues to Over-Achieve Cannington EBIT • Achieving record mill throughput > 2.7 Mtpa 200

• Cannington North Block successfully 150 completed on budget and ahead of 100

schedule Millions $US 50 • Business improvement targeting potential 0 FY2000 FY2001 FY2002 FY2003 F Y2004 increase in throughput to offset declining Cannington P roduction Silver Lead head grades 50 300 250 40 e • Current mine life 2015 200 30 • Exploration program targeting reserve 150 20 100 000 payable tonn

extension ouces payable million 10 50 0 0 FY2000 FY2001 FY2002 FY2003 FY2004

Page No 30 Antamina –Exceeding Design Capacity Antamina EBIT (BHP B Shar e) • Lake sediments mined successfully by May 2004 120 opening up new ore faces in higher grades and 100 increasing mine flexibility 80 60 40 • Plant exceeding design throughput on all ore $US Millions 20 types by 25% and copper ores by up to 40%. 0 • FY05 copper production 120,000t+ FY2002 FY2003 FY2004 Antamina Production (BHP Billiton Share)

• Improving operational stability creating Copper Zinc

120 opportunities for revenue and cost improvement 100 80 • 17 year mine life 60 40 20

• Exploration program targeting reserve extension Tonnes 000 Payable 0 and better predictability FY2002 FY2003 FY2004

Page No 31 Tintaya

Tintaya EBIT • Successful restart of sulphide operation 60 after 20 month shut. Modern fleet of 240 40 ton haul trucks relocated from Robinson 20 operation in Nevada 0 $US Millions $US (20) • Reached full capacity on schedule in (40) November 2003 FY2000 FY2001 FY2002 FY2003 FY2004 Tintaya Copper Production

• Outstanding safety performance Concentr ate Cathode 100 • Recognised for community programs 80 60

• Oxide production will exceed plan 40

20 • Slight shortfall in sulphide production 000 payable tonnes 0 (80,000t+ Cu in conc) for FY2005 due to FY2000 FY2001 FY2002 FY2003 FY2004 skarn complexity in the current quarter • Brownfields development and exploration drilling currently underway (Antapaccay, Coroccohuayco and regional targets)

Page No 32 Cerro Colorado Cerro Colorado EBIT • Combined oxide-sulphide leach 100 operation 80 60 • Mine plan sees production through 40

2013 Millions $US 20 0 • Mature operation using Six Sigma FY2000 FY2001 FY2002 F Y2003 F Y2004 business improvement Cerro Colorado methodologies to offset the 135 challenges of declining grades and 130 125 changing clay characteristics 120 115 • FY05 production ~ 110,000 t of 110

000 payable tonnes payable 000 105 cathode 100 FY 2000 FY2001 FY2002 FY2003 FY2004 • Potential regional exploration opportunities

Page No 33 Growth

Diego Hernandez Escondida Ore Delivery Systems (Norte and East 3 Conveyor) •Two integrated projects – – Development of new pit at Escondida Norte, and associated crushing and conveying of ore to existing plants – relocation of existing dual conveyors from Escondida pit to the East 3 bench •Conveyor (E3) relocation in Escondida pit on schedule for completion in 4th Quarter calendar 2004. •Escondida Norte ore will be delivered to the plants from 2nd Quarter calendar 2005 First Blast at Escondida Norte, 30/9/03 •Reserves of 538Mt at 1.14% Cu @ 0.7% cut-off will produce 7.2Mt of copper production (Escondida 100%) through 2040

100% Escondida Norte Progress 'S' Curve 100%

80%

60%

41,9 % 40%

20%

0 % 0% Jun- Ju l - Aug- Sep- Oct- No v - De c - Jan- Feb- Mar- Apr- May- Jun- Ju l- Aug- Sep- Oc t - No v - Dec- Jan- Feb- Ma r - Apr - May- Jun- Jul- Aug- Sep- Oc t - No v - De c - 03 03 03 03 03 03 03 04 04 04 04 04 04 04 04 04 04 04 04 05 05 05 05 05 05 05 05 05 05 05 05 Page No 35 June ' 03 August ' 04 Sept ' 05 Escondida NortaPit Development as of 20/3/04 Escondida Sulphide Leach • Marginal and mixed ores from both Escondida and Escondida Norte pits will be bio-leached in Run-of- Mine (ROM) heaps, with conventional SXEW extraction of copper. • Reserve exceeds 1.5 billion tonnes of ore at grades between 0.3% and 0.7% total Cu • A new tankhouse with a cathode capacity of 180,000 tpa will be constructed. • Engineering design is well advanced and preliminary field construction activities are underway. • First cathode is expected to be produced in 2nd Quarter 2006, with ramp-up to full production during 2006 and 2007. Progre ss 'S ' Curv e • Project scope includes 500 litres per second desalination plant near Antofagasta, with pumping to Actual Cumulative minesite. 120% 100% Forecast Cumulative Engineering 63.7% ress

g 80% C o nstr uc ti on 3 .5 % • Forecast to add 3.9Mt of copper production Ov er a ll 6 .15% (Escondida 100%) through 2040 Pro 60% 40%

20%

0%

Pr oj ect M on ths Page No 36 Spence • Greenfields mine development at Sierra Gorda in northern Chile, 45 kilometres from Calama. • 50,000 tpd of oxide and sulphide ores will be leached to produce an average of 200,000 tpa of copper cathodes. • Reserve is 370 million tonnes at an average 1.06% total copper. • Project has completed Feasibility Study and approval to proceed is expected in 4th Quarter 2004. • First cathode is anticipated in 4th Quarter 2006. • Mine life 19 years. Capex approx $1 billion

Page No 37 Delivering Value Adding Growth • Since the merger Base Metals have delivered:

– Tintaya Oxide Leach BHP Billiton Base Metals Copper Production (assuming scheduled start up of Escondida Norte, Sulphide Leach – Escondida Phase 4 1600 and Spence) 1500 on time and under budget. 1400 1300 1200 • Over the next 3 years the 1100 1000 000 tonnes current pipeline of growth 900 projects will be managed to the 800 700 same standards: 600 – Escondida Norte FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 – Escondida Sulphide Leach Note: This projection is based on our current plans and schedules and market demand. It could change for a variety – Spence of reasons including project schedules, operating performance and commodity prices

Page No 38 Additional Growth Options Coarse Particle Recovery • Process optimization project in both Los Colorados and Laguna Seca concentrators. • Objective is to improve total copper recovery by 4-5%, targeting coarse fraction of rougher tailings which contain 2/3 of non-recovered copper. • Project is in Feasibility Study • Study and review to be completed in 2nd Quarter 2005. Alliance Copper (ACL) • 50/50 JV with Codelco • Prototype plant was commissioned in Sep.2003 • BioCOP™ technology applied to complex concentrates • 13,500 tonnes of copper contained in PLS have been shipped to Codelco’s SXEW facilities in Chuquicamata since start up • Currently treating Mansa Mina concentrates and flue dust coming from the Chuqui smelter • Engineering concept study being conducted by Hatch on an industrial size plant to process Mansa Mina concentrates • Shareholders will make a decision during the first half of CY05 Page No 39 about the future of the project Additional Growth Options (continued) Technology • Base Metals spends over US$10m each year on R&D. The majority of this is focused on improving leach performance of primary sulphides. If successful this has the potential to significantly improve the financial returns of the Escondida Sulphide Leach Project

Exploration • Brown fields exploration potential at all sites. • BHP Billiton is spending ~ US$20m on base metals green fields exploration each year – (includes JV exploration) • Resolution - advanced exploration project under pre-feasibility study

Page No 40 Geographic Distribution of Exploraiton Spend FY 05 Location of Main Projects 21% S outh A merica North America 47% E urope Africa 11% Australia 11% 5% 5% Asia Jokkmokk Isurtuq

Northern East ern Kazakh stan China Pebble Anat oli a

Globe

East ern Mexico Sonora TCC Reko Diq India Reccy Central Amer ica Katanga Luamata ICA Mwinilunga East ern Su ccession Southern Peru Gascoyn e Georgetown Atacam a Luamata Mingary Balingup Candelaria Mt. Wood

Legend Farellon Negro Sedimentary Copper Cannington-type IOCG Copper

Page No 41 Conclusion • Summary of key messages to close • CSG’s performance • Key issues facing the CSG and the industry • Continuous optimisation of the existing asset base • Our value enhancing organic growth projects, helping to meet increased global demand for our commodities

Page No 42