C O N V E N E S P R E S E N T S C O O R D I N A T E S O R G A N I Z E S C O L L A B O R A T E S M E D I A P A R T N E R

Supply Innovation Taking Cluster to the Next Level “First Meeting of the Network of Mining Regions” Supply Innovation Taking Cluster to the Next Level

Mining industry challenges “First Meeting of the Network of Mining Regions” Mining industry challenges Safety and Sustainability Declining Grade Industry Disruption Production vs. Innovation

Creating space for innovation “First Meeting of the Network of Mining Regions” Creating space for innovation Focus on Technology Strategically and Operationally Open Innovation Methodology Cluster to Supply Innovation Supplier Relationship Management SRM Culture Trust and Collaboration

Cluster Program Cluster Program success to date… “First Meeting of the Network of Mining Regions” Cluster Program Cluster Program success to date… Incubated in 2008 in BHP in Chile and 2010 in CODELCO Designed to develop World Class Suppliers, by solving operational issues (Shared Value*). Delivers value to the mines and the country. Piloted, tested and proven methodology. Internal and external recognition (IDB, OECD, Business in the Community, Chilean Public Policy, HSEC Awards, etc.) Best Practices in Large-Scale Mining Mining Council – November 2012  Now is the time to build on the Cluster Program’s success to scale up and amplify delivery (*) Porter and Kramer. "Creating Shared Value." Harvard Business Review 89, nos. 1-2 (January–February 2011).

Taking Cluster to the Next Level – Supply Innovation “First Meeting of the Network of Mining Regions” Taking Cluster to the Next Level – Supply Innovation We use our business challenges to spark innovation and create shared value for BHP, our communities and the countries where we operate. Through collaboration and trust in action, we empower an ecosystem of innovation delivering value for all.

External Innovation Ecosystem Internal Innovation Ecosystem “First Meeting of the Network of Mining Regions” Supply Innovation Leveraging Supply Innovation to create shared value for BHP, our communities and the countries where we operate External Innovation Ecosystem Enables regional stakeholders to accelerate economic growth and job creation Internal Innovation Ecosystem People/Culture - Processes - Technology Technology Innovation Business Challenges Supply Operations BHP business challenges become the catalyst for developing an ecosystem of innovation

Supply creates shared value at three levels “First Meeting of the Network of Mining Regions” Supply creates shared value at three levels Supplier Relationship Management / SRM Collaborating with strategic suppliers to amplify our reach: Local Hiring Buying locally Developing local entrepreneurship Creating innovative solutions Next lever of value creation for BHP Supply Creating the Future Innovator Adaptor Simple User Strategic Cluster / Supply Innovation Foster an ecosystem of entrepreneurial innovation Leveraging supplier innovation by taking a business challenge to the market, both strategic and operational Targeted interventions supporting suppliers scale up Example: Cluster Program in Minerals Americas METS Local Suppliers & Indigenous Communities Support form small local suppliers (direct and indirect): Access to BHP (Outsource) Business basics assistance Supporting local entrepreneurs Example: BMA Local Buying Program in Minerals Australia Local & Indigenous

Empowering the Ecosystem of Innovation “First Meeting of the Network of Mining Regions” Empowering the Ecosystem of Innovation

Areas of opportunity Exploration and Planning Extraction and Transport “First Meeting of the Network of Mining Regions” Areas of opportunity Exploration and Planning Extraction and Transport Dry Processing Wet Processing Innovation Technologies Energy and Water Automation Big Data Process Optimization

C O N V E N E S P R E S E N T S C O O R D I N A T E S O R G A N I Z E S C O L L A B O R A T E S M E D I A P A R T N E R