Copper Market Briefing

26 September 2010

Disclaimer
Reliance on Third Party Information The views expressed here 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. Forward Looking Statements This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of BHP Billiton. 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 For more detail on those risks you should refer to the sections of our annual presentation. risks, report on Form 20-F for the year ended 30 June 2010 entitled Risk factors, Forward looking statements and Operating and financial review and prospects filed with the U.S. Securities and Exchange Commission. No Offer of Securities Nothing in this release 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. Non-GAAP Non GAAP Financial Information BHP Billiton results are reported under International Financial Reporting Standards (IFRS). References to Underlying EBIT and EBITDA exclude any exceptional items. A reconciliation to statutory EBIT is contained within the profit announcement, available at our website www.bhpbilliton.com.

Copper market presentation, September 2010

Slide 2

Longer term global growth remains robust

Global copper cathode supply/demand breakdown (Index, 1980 = 100)
350 Others China 300 OECD Actual Cu Cathode supply & forecast (highly probable mine developments)

Refined copper consumption (kg/capita)

25 Germany United States 20 Japan Korea, Rep. China 15 India

CAGR (1980 2020) +2.7%

250

200

150

+9.1%

10

100

5
50

-0.6%
0
1985 1990 1995 2000 2005 2010E 2015E 2020E

0 1980

10,000

20,000

30,000

40,000

50,000

US$ GDP PPP /Capita

Sources: Brook Hunt (WoodMac), BHP Billiton.

Copper market presentation, September 2010

Slide 3

Declining head grades

Copper grade (Cu %)
1.70 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Head grade all operations

Source: Brook Hunt (WoodMac)

Copper market presentation, September 2010

Slide 4

Chinese net imports remain strong

China cathode & scrap imports (Mthly net imports 3Mth Mov. Avg; Kt Copper)
350

China copper raw material mix (Index, 2004 = 100)

250 Indirect Scrap Imported Blister Imported Cathode (Net) 200 Imported Concentrate (Net) Domestic mine

CAGR (2004-10) +17% +21%

Scrap
300

Cathode

250

CAGR +15%
200

150

+17%
100

150

100

+14%
50
50

+10%
0 Jan 2007

Jul 2007

Jan 2008

Jul 2008

Jan 2009

Jul 2009

Jan 2010

2004

2005

2006

2007

2008

2009

2010E

Sources: China Customs Data, BHP Billiton.

Copper market presentation, September 2010

Slide 5

Substitution loss
Gains and losses (kt copper)
100 16 0 (100) (318) ( (200) ) (300) (474) (571) (500) (430) 34 41 32 36

(302)
(400)

(394)
(500) (600) (700) 2005 2006 2007 2008 2009

(440) (530)

(468)

Source: International Copper Association, Ltd.

Copper market presentation, September 2010

Slide 6

Global concentrate gap expected to continue

Concentrates surplus/deficit relative to optimal (88%) primary smelter capacity (kt Cu)
2,400

Concentrates production as % primary smelter capacity (%)

100%

Concentrates surplus/shortfall @ 88% smelter utilisation after disruption Concentrates production as % capacity (RHS)

1,600 1 600

96%

800

92%

88%

(800)

84%

(1,600)

80%

(2,400) 2002 2005 2010E 2015E 2020E

76%

Source: Brook Hunt (WoodMac)

Copper market presentation, September 2010

Slide 7

Copper exchange stocks

Exchange stock versus LME cash price qtly 1997-2010 Exchange stock to consumption (weeks)
8 7

Exchange Stock versus LME Cash Price LME Cash Price ($/t, Nominal) Exch Stock (kt)
10,000 SHFE Comex LME LME Cash Price (LH) 1,800 1,600 1,400 1,200

1997-05
8,000 8 000

6 5 4

2006-10

6,000 1,000 1 000 800

3 2 1 0 0 100 200 300 400 500

4,000 600

Q2 2010
2,000 400 200 0 Q1 2001 0 Q1 2010

Q1 2006

Q2 2003

Q3 2005

Q4 2007

LME Cash Price (cents/lb,Nominal)

Source: LME, COMEX, SFE.

Copper market presentation, September 2010

Slide 8