UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

September 25, 2006

BHP Billiton Limited

(Translation of registrant’s name into English)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: þ Form 20-F
o Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: o Yes    þ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

				BHP Billiton Limited
Date: 25 September 2006		By:		Karen Wood
		Name:		Karen Wood
		Title:		Group Company Secretary

Message from the Chief Executive Officer

At BHP Billiton we recognise the intrinsic link between sound sustainability performance and long-term business viability. Our business Strategic Framework reflects this understanding, presenting Licence to Operate as a key Framework element.

In 2006 we achieved strong performance in a global market facing significant increases in commodity demand and sustainability performance expectations. On behalf of the Board and the management team, I extend my thanks to not only our employees and contractors but also their spouses, partners and families for helping our Company to achieve these results. The nature of our business means it takes a strong team effort to achieve our goals, and we recognise and greatly value this support.

Broader macroeconomic trends affecting our organisation and sustainability priorities include the increasing prominence of developing economies such as China, India and Brazil. In these parts of the world there are several billion people who over the last four or five years have had a greater opportunity to participate in economic development. At their current stage of development, raw materials supply is critical. Through our own technology research, technology partnerships and participation in broader industry initiatives, such as the International Council on Mining and Metals and the World Business Council for Sustainable Development, we aim to support the sustainable growth of emerging markets.

While very good progress has been made in implementing our Fatal Risk Control Protocols, our efforts have not been as effective as they need to be. Our thoughts are with the families and friends of the three people who lost their lives while working at our sites over the past year. We will continue to work tirelessly to achieve our goal of Zero Harm.

With the acquisition of WMC Resources Ltd in 2005, we are now a significant provider of uranium to the global energy market. We recognise the concerns of some of our stakeholders arising from involvement in this commodity and we are taking a leadership position in demonstrating sound stewardship of this and, indeed, with all of our products.

During the year we received advice that BHP Billiton would be included in an Australian Inquiry into the United Nations (UN) Oil-For-Food Programme. Our involvement relates to the funding of a shipment of wheat from Australia to Iraq in the mid 1990s. We are conducting our own internal review and have committed to publicly report our findings, taking into account the results of the Inquiry.

The continued growth in demand for our products has assisted us in the delivery of a very strong financial performance. It has also, however, created significant stresses in our operations and the industry more broadly as operations expand to meet demand. Skill shortages are a clear manifestation of this and we have initiated a number of programs to address the issue. The management team has also stressed that our commitment to sustainability must not be compromised in meeting that demand.

Our commitment to spending 1 per cent of pre-tax profits (on a rolling three-year average) on voluntary community programs remains, which ensures that our host communities continue to share in our success – both in the short and long-term. Examples include our efforts to support the management of major infectious diseases, such as HIV/AIDS and malaria.

Climate change remains a key focus area for the Company. We have maintained our programs to reduce greenhouse gas emissions from our operations and continue to gain experience in carbon trading. We also continue to fund a variety of climate change mitigation initiatives, such as the US FutureGen project, the Australian Coal Association’s COAL21 initiative and the Australian Cooperative Research Centre for Greenhouse Gas Technologies.

Our Full Report on our website has again been prepared in accordance with the Global Reporting Initiative 2002 Sustainability Reporting Guidelines and we believe it represents a balanced and reasonable representation of our organisation’s economic, environmental and social performance. We remain committed to the UN Global Compact, and this year we have expanded our reporting on UN initiatives in our Full Report to show how we contribute to the achievement of the UN Millennium Development Goals.

I welcome any feedback you have in relation to this Report and look forward to reporting our progress again next year as we continue to focus on creating value for all our stakeholders.

Chip Goodyear

 

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006 5		1

Performance at a Glance – HSEC Targets Scorecard
BHP Billiton’s Health, Safety, Environment and Community (HSEC) performance

(Baseline 1 July 2001 to 30 June 2002 for reduction targets except where stated otherwise)

 

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BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006 5		3

Our Sustainability Challenges

Our sustainability challenges are those issues that we believe may have a material impact on our ability to be a successful business.

Our key sustainability challenges, not in order of importance and requiring parallel action, are:

4		Greenhouse Gas Emissions
4		Access to and Management of Resources
4		Sustainable Community Development and Closure of Operations
4		Eliminating Fatal Risks
4		Occupational and Community Health

Greenhouse Gas Emissions

Access to affordable energy, minerals and metals is a critical component of poverty alleviation and social and economic development. Our challenge as a member of global society is to help meet the world’s minerals and energy needs while mitigating the potential impact of greenhouse gas emissions on the climate.

Our approach to this challenge includes controlling the emissions that we produce at our sites and seeking ways to reduce the emissions produced by our customers when they consume our products, both now and in the future.

Looking forward, we will... define a process for Australian operations to meet emerging Energy Efficiency Opportunity legislation, participate in sector initiatives to define and share leading energy efficiency practice and undertake further energy efficiency reviews at our sites to continuously improve our performance.

Access to and Management of Resources

Our challenge is to achieve access to the resources relevant to our scope of operations while addressing heightened political and societal expectations related to obtaining and maintaining a ‘licence to operate’. In 2006 we expanded the scope of this challenge to consider access to water and skills, recognising that both are as critical as land access in determining long-term business viability.

Our approach to this challenge includes the implementation of land, water and biodiversity management plans at sites, formal risk and impact assessments, skills development programs, proactive stakeholder engagement and advocacy. For example, in conjunction with the International Council on Mining and Metals and the World Conservation Union, we have undertaken not to explore or mine in World Heritage properties.

Looking forward, we will... examine opportunities for biodiversity offsets and develop appropriate performance metrics, develop a Company Environmental and Social Impact Assessment Guideline, enhance strategies to attract and retain skilled people, and continue to improve our approach to water management.

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Sustainable Community Development and Closure of Operations

Our challenge is to maximise the benefits to communities during the operational phase of a site so that a positive lasting legacy exists after closure.

Our approach to this challenge requires a consistent approach to the implementation of initiatives that will be sustainable beyond the life of the project, while being careful to avoid creating dependency on our support. This approach includes community participation and engagement, employee involvement, compliance with our Company Closure Standard and sharing our financial success with the communities in which we operate. Since 2002, the Company has met its target to spend 1 per cent of pre-tax profits (on a rolling three-year average) on voluntary community programs.

Looking forward, we will... implement our Closure Standard at all ‘controlled’ operations¹, share knowledge and leading practice among our network of closure and rehabilitation practitioners, further integrate closure requirements into business systems and mine planning processes, undertake human rights self-assessments and implement risk-based human rights management plans at all sites.

Eliminating Fatal Risks

Our challenge is to fully implement and optimise the safety management standards we have developed. We need to ensure that all of our employees and contractors understand, rigorously apply and fully comply with these standards.

Our approach to this challenge includes effective leadership; improving our awareness and behaviour; implementing and maintaining rigorous standards and systems for managing risk; and developing and implementing our Fatal Risk Control Protocols.

Looking forward, we will... work with our contractors and suppliers to adopt standards and procedures consistent with our own, introduce behaviour-based safety programs, monitor and learn from ‘near-miss’ incidents, implement and review the effectiveness of our Fatal Risk Control Protocols, update our site risk registers annually and reduce our Total Recordable Injury Frequency Rate. This metric aims to improve the visibility of all workplace incidents by including the total number of medical cases, not just the ones requiring time away from the workplace or a change in duties.

Occupational and Community Health

Our challenge is to improve quality of life through both work-based and community health programs. This means we must promote an environment that contributes to our employees being both fit for work and fit for life.

We seek to apply a holistic approach to the management of health, targeting health impacts at work, at home and in the broader community. This includes standardised procedures for measuring, reporting and managing occupational exposure; Fit for Work/Fit for Life guidelines for managing drug and alcohol abuse, fatigue management, occupational rehabilitation, health promotion, job and task analysis and stress management; supporting major programs to combat infectious disease in the regions where we operate and supporting activities that offer health benefits that extend beyond the communities in which we operate (e.g. HIV/AIDS research).

Looking forward, we will... continue to implement our stringent Exposure Standards, increase our focus on fatigue management, use of personal protective equipment and monitoring occupational illness, work with other organisations to conduct HIV/AIDS immunotherapy trials, and further develop our preparedness to respond in the event that avian flu affects our communities

1.

Controlled operation is any operation owned and operated by BHP Billiton or managed by the Company in a joint venture.

     

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006 5		5

Sustainability at BHP Billiton

Our vision for sustainable development is to be the company of choice – creating sustainable value for shareholders, employees, contractors, suppliers, customers, business partners and host communities. Central to our vision is our aspirational goal of Zero Harm to people and the environment.

We aim to create sustainable value through our willingness to invest for the future while ensuring we deliver value in the shorter term.

The Business Case

Our bottom-line performance is dependent on ensuring access to resources and securing and maintaining our licence to operate and grow. Maximising the bottom-line is, however, about recognising the value protection and value add that can be achieved through enhanced performance in non-financial aspects.

Beyond the Business Case

Beyond the business case described above, there are also many societal benefits that flow from integrating aspects of sustainability into our business. These benefits include, but are not limited to, contributing to improved standards of living and self-sustaining communities.

Our Strategy

Our sustainable development strategy comprises two dimensions – a business dimension and a sustainability dimension – that together contribute to bottom-line performance.

The business dimension represents traditional contributors to a financially successful and competitive business, as without a profitable business we are unable to contribute to the broader goals of sustainability. Elements include business excellence and customer focus; portfolio diversity; deep inventory of growth projects; and quality long-life assets.

The sustainability dimension includes aspiring towards zero harm to people, host communities and the environment; ensuring effective governance and risk management processes are in place; recognising the need to be socially responsible and contribute to sustainable community development; and ensuring the broader economic contributions of our operations are effectively injected into the regions where we operate.

Measuring Progress

At the operational level, we encourage our managers to increasingly seek out leading practice in health, safety, environment and community performance.

On a strategic level, we encourage management teams to identify opportunities that drive sustainable value creation.

     

At the commodity level, we encourage our businesses to demonstrate stewardship by building partnerships across the life cycles of our products to deliver broader business and societal returns.

Engaging Stakeholders

Every day we interact with numerous people from varied backgrounds. We are committed to maintaining and promoting dialogue with our stakeholders and remaining responsive to the global community’s concerns and aspirations.

We recognise the importance of trust to relationship building. Being accountable is paramount, as is transparency with our communications and documentation. Our Charter, Sustainable Development Policy, HSEC Management Standards and Guide to Business Conduct all promote a commitment to acting with honesty, integrity and fairness in all our activities.

Our key stakeholders are generally identified as people who are adversely or positively impacted by our operations, those who have an interest in what we do, or those who have an influence on what we do.

In 2006 our stakeholder engagements included:

•		regular interaction with consultative committees in the communities in which we operate
•		bi-annual meetings with our Forum on Corporate Responsibility, that consists of representatives of our senior management team, leaders of several key non-government organisations (NGOs), and community opinion leaders
•		a major dialogue session with a range of NGOs, socially responsible investment (SRI) community, academia, government and employee representatives on biodiversity and uranium
•		annual update to SRI representatives.

     

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Our Stewardship Approach

Stewardship is a principle that calls on all those involved in the product life cycle to share responsibility for minimising the environmental and human impacts that result from the production, use and disposal of the product.

BHP Billiton has embraced the concept of stewardship as an integral part of our commitment to sustainable development. Our HSEC Management Standards define our approach to stewardship as the means to ensure that ‘the HSEC impacts, associated with resources, material, processes and products are minimised and managed’.

Key Stakeholders

In the life cycle of the commodities produced by BHP Billiton, key stakeholders include:

•		processors
•		manufacturers
•		users and end-users (recyclers/reusers/disposers)
•		suppliers
•		transport chain that links the different sectors.

Our Products’ Life Cycle

The life cycle of our products varies depending on the nature of the product. For the majority of our products the life cycle comprises:

•		resource extractors – a BHP Billiton mine or oil field
•		processors – note that for some products, such as nickel and aluminium, we are both the extractor and processor
•		manufacturers
•		users.

At the end of the life cycle the product is reused, recycled or disposed of.

The four types of stewardship are illustrated below, using a generic product life cycle.

While material, process and product stewardship apply across the life cycle, resource stewardship is most prominent in the early stages of the life cycle. Common to all parts of the life cycle are the transport and marketing functions, as both play a critical role in stewardship.

Industry Initiatives

We are actively involved in several product stewardship initiatives, including:

•		Nickel – Nickel Institute
•		Copper – International Copper Association
•		Lead – Green LeadTM project
•		Silver – Silver Research Consortium
•		Diamonds and gold – Council for Responsible Jewellery Practices and the Kimberley Process Certification Scheme
•		Uranium – Uranium Industry Framework Steering Group and the World Nuclear Association.

Working with Others

Most mining and mineral processing companies do not traditionally integrate product manufacture into their businesses. We, however, recognise that implementing stewardship principles in collaboration with our key stakeholders has strong business merit through maintaining market access, providing the opportunities for product differentiation and maximising opportunities for recycling and reuse.

This year we engaged extensively with our specialist marketing personnel across the globe to develop a clearer understanding of the role of marketing in the implementation of stewardship principles, and how we can work collaboratively with our customers to reduce the negative impacts of minerals production on the community and the environment.

Uranium Stewardship

With the acquisition of the Olympic Dam copper and uranium mine in South Australia last year, we recognise the importance of demonstrating strong leadership in the management of this commodity. Our uranium strategy recognises that to be a world leading supplier of uranium concentrate requires a foundation based on uranium stewardship.

We are active members of the Australian Uranium Industry Framework Steering Group and its Uranium Stewardship Working Group, and chair the World Nuclear Association Uranium Stewardship Working Group.

Radiation safety is an integral consideration at all stages of the product life cycle. Personnel at our Olympic Dam operation are monitored to ensure compliance with relevant standards. Road, rail and ocean freight is approved by the Australian Safeguards Non Proliferation Office (ASNO). Our exports approval process involves a variety of national and international agencies and we only sell to countries approved under bilateral agreements with the Australian Government and which are signatories to the international Nuclear Non-Proliferation Treaty.

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006 5		7

Governance

At BHP Billiton we believe that to maintain our position as one of the world’s leading companies we must commit to the highest standards of governance. Therefore, in addition to the corporate governance processes that manage the broader affairs of the Company, we have a number of processes in place to implement our commitment to sustainable development.

Structure and Responsibilities

Our organisation for sustainable development, as illustrated, is characterised by the following key features:

•		the Sustainability Committee of the Board oversees HSEC matters across the Group
•		business line management has primary responsibility and accountability for HSEC performance
•		the HSEC function provides advice and guidance and advocates leading practices directly and through a series of networks across the business
•		executive remuneration is directly linked to performance indicators that include health, safety, environment and community targets.

Hierarchy of Systems and Documents

Our hierarchy of systems and documents, as illustrated, represents our HSEC management system and other related Company policies and documents.

Central to our business is our Company Charter, which states our ‘overriding commitment to health, safety, environmental responsibility and sustainable development’.

Supporting the values of our Charter is our Sustainable Development Policy. While we strive to deliver strong financial returns to shareholders, we fully recognise and deliver on our wider responsibilities to our stakeholders: as the Policy states ‘our objective is to be the company of choice – creating sustainable value for our shareholders, employees, contractors, suppliers, customers, business partners and host communities’. Integral to this is our aspirational goal of Zero Harm.

The Guide to Business Conduct applies to our entire workforce, regardless of their specific job or location. It provides employees and contractors with direction and advice on conducting business and interacting with governments, communities and business partners.

The BHP Billiton HSEC Management Standards form the basis for the development and application of HSEC management systems at all levels in the Company and represent a key process through which we drive our contribution to sustainable development.

The Standards cover all operational aspects and activities across the entire life cycle of operations that have the potential to affect HSEC, either positively or negatively. The terminology Health, Safety, Environment and Community (or HSEC) has been utilised throughout the Standards to highlight four key components of sustainable development. These are:

•		Health – promoting and improving the health of the Company’s workforce and host communities
•		Safety – ensuring that safety values are not compromised, and providing a workplace where people are able to work without being injured
•		Environment – promoting the efficient use of resources, reducing and preventing pollution, and enhancing biodiversity protection
•		Community –

	•		internal community – engaging regularly with employees and contractors
	•		external community – engaging regularly with those affected by our operations, including our host communities
	•		human rights – understanding, promoting and upholding fundamental human rights within BHP Billiton’s sphere of influence.

Central to the HSEC Management Standards is a requirement for an auditing process to check that our Charter, Sustainable Development Policy and HSEC Management Standards are being applied and to verify performance. Procedures, protocols, guidelines and toolkits have also been developed to provide guidance and support in implementing our HSEC Management Standards.

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Our Performance – Governance

Risk Management

Comprehensive risk registers are maintained at our operations and within our business groups. Risks are identified and assessed using the common methodology specified in our Enterprise-Wide Risk Management (EWRM) Standards.

Our HSEC risk assessment methodology has been further refined, including an external benchmarking program, to further improve the identification, understanding and effective management of potential catastrophic events.

Our operational risk assessment methodology has been developed to provide quantitative justification for risk-reduction investments. The methodology has been piloted at three major port operations and an alumina refinery.

We have continued with our efforts to fully integrate risk management into our key business processes such as Business Development, Global Supply, Asset Protection and the Global Maintenance Network.

Management Systems Review

Our Sustainable Development Policy has been translated into ten languages and rolled out to all operating assets and businesses. The Policy is supported by a comprehensive Policy Guide and training materials.

The second triennial Company-wide HSEC audit cycle was marked by the rollout of our revised and more stringent HSEC Management Standards. In the current reporting year, 15 audits were completed against the broader scope of the revised HSEC Management Standards.

Business Conduct

We recognise the need to continuously reinforce and refresh business conduct principles. A key part of the assurance process is an annual communication by the Chief Executive Officer to his direct reports to ensure that the Guide to Business Conduct has been rolled out and understood. This requirement is then cascaded through the Company. Communication of the Guide is facilitated with posters, a printed summary version of the Guide, electronic information and other communication tools. An addendum was produced in February 2006 to reflect the adoption of a new regional fraud hotline service and the Sustainable Development Policy.

During the year we received advice that BHP Billiton would be included in an Australian Inquiry into the UN Oil-For-Food Programme. Our involvement relates to the funding of a shipment of wheat from Australia to Iraq in the mid 1990s. We are conducting our own internal review and have committed to publicly report our findings, taking into account the results of the Inquiry. The internal review is well advanced and includes an assessment of compliance by BHP Billiton and its employees with the law and with its own business conduct requirements. It will also include a report on remedial actions.

The Board took a decision in October 2005 to cease the trial of a whistle-blowing service in South Africa. We have returned to running one globally consistent in-house system.

Audit and Self-Assessment

With the revision of the HSEC Management Standards and the Audit and Self-Assessment Protocols during the previous reporting period, learnings from the first triennial audit cycle are being taken into account in this year’s audit process. Fifteen site audits have been conducted against the revised HSEC Management Standards since October 2005. A total of 106 audits have been conducted since the audit program commenced in September 2001, involving 318 BHP Billiton personnel and external auditors.

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006 5		9

Our Performance – Health

The health and wellbeing of people is central to the success of our business and, accordingly, understanding the potential for health risks and establishing suitable mitigation measures are integral to the success of our journey towards Zero Harm.

Health risks continue to be an area where we are attempting to reduce potential short and long-term impacts. These health risks are diverse in the areas in which we operate and are not only related to work processes. Significant community-based health risks exist in our business, and we continue to contribute to the management of these issues on both a local and global basis.

Fit for Work/Fit for Life

Efforts to implement our Fit for Work/Fit for Life initiative continued during the current reporting year. This Company-wide initiative was launched in the previous reporting year to assist our drive towards Zero Harm by seeking to promote a consistent approach to the management of health issues in the work environment. The initiative recognises that many health issues have not only the potential to impact on our safety performance, but can also cause community issues, and consequently impact on our ability to contribute to sustainable development.

During the reporting year two Practice Leaders were appointed to assist sites with the implementation of the program, with one of these positions specifically focused on fatigue management, which is a complex issue of risk within the Company.

Occupational Illnesses

During the year, 123 new cases of occupational illness* were reported throughout the Company, a reduction from 152 last year, resulting in an overall reduction to date of 46 per cent against the baseline numbers for 2002/03. The breakdown of these new illnesses is shown in the graph below. This reduction in new cases of occupational illness means we are on target to exceed the 20 per cent reduction target across the Company by June 2007.

New Illnesses by Type 2005/2006

Occupational Exposures

When compared to the previous period, potential exposures to noise, if not for the use of personal protective equipment (PPE), have decreased by 6 per cent across the Company. For other exposures there has been a 10 per cent decrease in exposures expressed as a percentage of employees, if not for the use of PPE. This is a result of our concerted efforts to reduce these exposures over time. We will continue our focus on this challenge to further improve these figures.

Managing potential exposure to substances that may cause cancer is a major concern for the Company. Our Diesel Particulate Initiative, which focuses on reducing exposure to diesel exhaust fumes, has been taken to our underground mining operations where the potential for exposure is highest.

We have also initiated a research program with an external manufacturer to explore technology to further reduce acid mist exposure that occurs in some of our metal processing plants. Other principal exposures relate to dust, heat, welding fumes and vibration. Vibration exposures mainly occur in drivers of earthmoving equipment and in the longer term may result in back injury or pain. In addition to other health and safety modifications, we continue to work to reduce vibration exposures as part of our strategic alliance with Caterpillar, our major earthmoving equipment supplier.

Community Health

Malaria is a significant health issue for our operations in Mozambique and Brazil, and in many other areas where we have development activities. During the year we continued our support of the Medicines for Malaria Venture to develop new anti-malarial medication. The Venture, established through the World Health Organisation, aims to provide affordable anti-malarial drugs to people in disease-endemic countries. Concurrently, we continued our support of the mosquito spraying program in southern Africa.

In the Northwest Territories of Canada, tuberculosis is a significant issue among the Inuit population, which, as a consequence, has an impact on our EKATI Diamond Mine operation. Our study in EKATI to limit the spread of tuberculosis is progressing through stages of approval prior to its full implementation.

The HIV/AIDS immunotherapy project initiated during the previous year has progressed to a point where it is hoped that a clinical trial will commence in the coming year. BHP Billiton has assisted in recruiting other organisations to provide funding and has provided logistic support and funding to develop the early stages of the clinical trial program. If this treatment proves successful, it will potentially provide an approach to the epidemic that can be delivered to a wider number of the affected population, and reduce the often significant compliance issues and costs associated with anti-retroviral medication.

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Our Performance – Safety

The safety of our employees, contractors and the communities in which we operate is an integral part of our business. Our goal is Zero Harm.

To this end, we seek to create a mindset and an environment where people believe it is possible to work injury free – regardless of where they are in the world, what role they undertake or in which business they work.

Across the Company we manage safety through our risk-based HSEC Management Standards. Our business line managers are accountable for the implementation of these Standards and responsible for ensuring that supporting systems and procedures are in place. We are confident that our Standards and associated systems are the right ones, and have directed our efforts towards the effective and consistent implementation of these across the organisation.

Fatal Risk Control Protocols

The Fatal Risk Control Protocols (FRCPs) were developed in 2003 with the goal of establishing clear expectations for managing identified risk areas at leading-practice level. In 2005 Global FRCP Facilitators were appointed for each of the Protocols to act as a subject matter expert in assisting sites with meeting and understanding the Protocol requirements.

In the current reporting year our focus has been on ensuring continued compliance and supporting the former WMC assets in the implementation of the Protocols. Facilitators have analysed shortfalls in the implementation of the Protocols that contributed to significant incidents across the Company and presented this information to sites and management. Guidelines for the effective implementation of each Protocol and an online leading practice library have been developed. To further share knowledge, we continued our support of a dedicated FRCP intranet site and Community of Practice.

Contractor Partnering and Engagement

A key focus of our safety management systems is working closely with our contractors to ensure their safety approach and management systems align with ours. In 2005/06, contractors represented 64 per cent of our total workforce.

During the reporting year we conducted forums in Australia and South America where CEOs of our contract partners joined us to discuss our safety approach and how we can work together to drive improvement. A similar forum is also planned for southern Africa in late 2006. To complement this we also conducted Contractor Safety Training Seminars in Australia, South America and southern Africa that targeted both Company and contractor representatives from our operations. As a result, the Contractor

Safety Management Course was expanded to include health and environment. Ongoing assistance with safety training was also provided by our three regional training leaders appointed this year. Our FRCP Global Facilitators can also assist contractors with aligning their safety systems to those of the Company.

Significant Near Miss Reporting

A key platform of our improvement strategy is to promote, encourage and recognise high levels of significant near miss reporting as a positive and healthy indicator of:

•		shortcomings in the application of our systems and procedures
•		high safety awareness of potential hazards and risks in the workplace
•		invaluable free lessons to assist in the prevention of fatalities
•		openness, trust and transparency of reporting
•		increased safety maturity.

This reporting year we had a threefold increase in the number of significant near misses reported, providing us with our most valuable information for improvement. These near misses are tracked and reported against the FRCP categories. Analysis indicates that the key exposures and areas for improvement are surface mobile equipment, isolation and working at heights. Where analysis indicates a high frequency of repeat events, we issue a

Repeat Incident Alert. This Alert highlights common issues and lessons and is directed to both management and individuals involved in the activities.

This year we also commenced highlighting Zero Barrier Incidents: close-call events where key preventative barriers were breached. Our ability to take heed of the signals from near miss events is crucial to our efforts in eliminating injuries and fatalities.

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006 5		11

Our Performance – Environment

Our objectives for environmental management are outlined in our Sustainable Development Policy, which states that we will:

•		strive to achieve leading industry practice
•		meet or, where less stringent than our standards, exceed applicable legal and other requirements
•		set and achieve targets that promote efficient use of resources and include reducing and preventing pollution
•		enhance biodiversity protection by assessing and considering ecological values and land-use in our activities.

Environmental Incidents

During the reporting period three significant environmental incidents were reported: the accidental release of a leaching solution at the Tintaya mine (Peru) and a release of mine-impacted water at the Optimum Colliery (South Africa). A small oil spill from the Liverpool Bay Lennox platform (United Kingdom) was also reported. In all cases, remedial actions were put in place to mitigate impacts, stakeholders were notified and investigations undertaken. Longer-term corrective and preventative actions have been identified and are being implemented. Our definition of ‘significant’ is conservative to ensure all learnings are captured from relevant HSEC incidents.

Closure

Our Closure Standard requires each asset to review its existing closure plan and make adjustments to align with the requirements of the Standard. The reviews will be finalised next year and include a rigorous assessment of site-specific closure risks, identification of risk management actions and the development of reasonable and accurate closure cost estimates. To assist this process a series of closure planning workshops was convened during the reporting year and a Community of Practice was established.

Biodiversity

Biodiversity is a critical aspect of environmental management and we are working to integrate this consideration into our business activities. Over the reporting period, 31 sites contributed to biodiversity-related research and development, with expenditure totalling US$2.68 million. In addition, 48 sites reported engaging in biodiversity-related activities, in addition to ongoing rehabilitation.

Resource Use

Our energy, water, waste and land targets are focused upon driving initiatives that promote the efficient use of resources.

Land

The total footprint of land owned, leased or managed was 3.2 million hectares, of which 4 per cent is used for mining, processing plants and infrastructure.

The amount of land newly disturbed over the reporting period was around 5,000 hectares, a similar level to last year. Land rehabilitated increased by 30 per cent to 2,410 hectares, largely due to additional rehabilitation at closed sites in the Base Metals Customer Sector Group (CSG).

Energy

Our energy consumption decreased slightly from 309 petajoules in the previous reporting period to 304 petajoules.

Water

Access to water is one of our key sustainability challenges. High-quality water consumption amounted to 170,250 megalitres, increasing from 153,170 megalitres reported last year. The increase was due to additional consumption associated with the inclusion of former WMC interests. Our Stainless Steel Materials and Carbon Steel Materials CSGs continued to be the major consumers of fresh water. Initiatives to reduce high-quality water consumption included improved metering; auditing; water balance assessments; increased recycling and reuse of mine water, stormwater and grey water; and implementing training and awareness programs.

Waste

Our operations generated 235,460 tonnes of general waste in the reporting period, of which 30 per cent was recycled, reused, or composted; 68 per cent was disposed to landfill (a slight increase on last year); and 2 per cent was incinerated. 43,530 tonnes of hazardous waste were disposed of compared with 67,710 tonnes last year, largely due to the divestment of some Stainless Steel Materials CSG interests.

Emissions

Central to our goal to achieve Zero Harm to the environment is our focus on reducing and preventing pollution.

Greenhouse Gases

Our total greenhouse gas emissions amounted to 51 million tonnes of carbon dioxide equivalent, a similar level to that reported in the previous reporting period. Major contributions were from aluminium smelters and Carbon Steel Material CSG operations.

Footnote to graphs

12		5 BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006

Our Performance – Community

Building relationships and partnerships is really at the heart of our business. There is very little we can do on our own – our ability to work cooperatively with others, from business partners and governments through to non-government organisations and host communities, impacts both directly and indirectly on our business.

The range of activities our community relations practitioners are required to undertake to build relationships continues to grow, as we aspire to achieve our goal of sharing our success and being valued by our host communities.

Key activities include educating and informing stakeholders about our operations, responding to queries, providing opportunities to build a strong dialogue process so stakeholders can freely express their views and opinions, and facilitating their participation in decision-making in aspects of our business that relate to them. We aim to support community development by providing training and employment opportunities for local people and supporting local businesses.

The diversity of locations, languages and cultures that frame our interactions with people from our host communities adds a further layer of complexity to the task. Community practitioners play a critical role in building relationships in an area that is challenging but that has the potential to be extremely rewarding. During the year we have focused on our people and how we can better support them in these important roles, knowing that they are key to ongoing improvements in our social performance.

Community Relations

Our HSEC Management Standard 7 forms the basis of our approach to communication, consultation and participation with stakeholders. The intent is that ‘effective, transparent and open communication and consultation is maintained with stakeholders associated with BHP Billiton activities. Stakeholders are encouraged to participate in and contribute to sustainable development through HSEC performance improvement initiatives’.

In line with our HSEC target, 98 per cent of sites required to have community relations plans have operational plans in place or were covered by a regional plan developed by the business group. This result is the same as for the last reporting period, with only one site yet to formalise their community relations plan.

For sites required to have a site-based HSEC Report, 95 per cent of sites had done so, which is slightly lower than the 100 per cent achieved last year. Two assets that met this target in 2004/05 and one of our newer assets have not produced Reports this financial year.

Global Community Network

In March 2006 the Company formalised and launched its Global Community Network. The Network now has over 260 members throughout the Company and around the world, including community relations practitioners, HSEC personnel and asset managers. The purpose of this Network is to provide employees with a range of resources and knowledge-sharing opportunities to assist them in achieving best practice community relations outcomes. To aid this process, the Network conducted an Internal Capacity Building Survey of all Network members in May 2006 to identify current skills and potential training and development needs within the Company’s community function.

The Global Community Network has identified four key social issues that form the basis of its work program for the current and future reporting periods. These issues include Human Rights (including Indigenous Rights), Stakeholder Relationships, Social and Economic Impacts and Community Development. To address these key issues, four Network workgroups have been established to focus on social requirements in project tollgating, measurement of socio-economic contributions, community development project evaluation and assessment, and internal capacity building.

Community Contributions

In 2005/06, the Employee Matched Giving Program was rolled out globally to all BHP Billiton managed sites. During 2005/06, BHP Billiton contributed US$824,230 to around 400 not-for-profit organisations to match its employees’ cash contributions, volunteering and fundraising activities.

In response to the devastating earthquake in Pakistan in October 2005, we joined with the Government of Pakistan and local and international NGOs to support relief efforts through financial contributions of US$310,000. With the help of local and worldwide employees and matched donations from our Matched Giving Program, the Company’s total contributions reached more than US$600,000 to the earthquake relief efforts, which was used for urgent humanitarian programs, the reconstruction of houses, medical supplies and mobile medical units.

This year we commenced mapping our Community Contributions spend against the United Nations Millennium Development Goals, recognising that the intent of the Goals align with our sustainability values and presents a consistent global framework for measuring tangible progress. We aim to further enhance our approach to reporting against the Goals in the next reporting period.

Human Rights

Our Human Rights Self-Assessment toolkit is used by sites to assist them in appraising their potential exposure to human rights issues. The toolkit has been revised and updated in collaboration with all CSGs to integrate it with our risk management processes and ensure consistency with our target of ensuring there are no transgressions of the principles of the UN Universal Declaration of Human Rights.

Thirty-five sites have reported that they have completed the Human Rights Self-Assessment this year and many have undertaken training of site and security personnel. We continue to recognise that training is a key area requiring improvement, and this will be addressed as part of the Global Community Network work program.

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 20065		13

Our Performance – Socio-Economic

The socio-economic aspects of our operations relate to how we manage our people and contribute to the economies within which we operate. Our priorities are:

•

our relationships with our employees and contractors: development of our leaders; diversity, including Indigenous employment; training; remuneration and other benefits of our employees

•

our economic contribution to society: the payments we make to governments, including taxes and royalties, and the added value we provide as a result of our operations and their broader contributions through aspects such as payments to suppliers and employees.

Employee Relations

Employee relations at BHP Billiton is the responsibility of local and business unit management. Each business is required to:

•

implement employment arrangements that deliver outcomes consistent with our Charter, Sustainable Development Policy and Guide to Business Conduct

•

build open and productive relationships with employees and provide processes to address workplace issues in an equitable manner

•

ensure that employees have the opportunity to develop skills that allow them to contribute to business success, and are recognised and rewarded for those results

•

support fundamental human rights and freedom of association and ensure legal requirements governing employment are fully met

•

respect local legislative requirements and other local standards and circumstances.

Diversity

Approximately 7 per cent of our Company’s management are women, including one of our non-executive Directors, our Company Secretary and the President of Gas and Power. About 12 per cent of full-time employees at operated sites and offices are women.

We recognise that diversity issues are particularly sensitive at some specific sites and countries. Examples of ongoing policies and programs to address employment diversity issues include employment equity in South Africa and targeted indigenous employment programs in Australia, Canada, and the United States.

Recognising the historic employment equity issues of South Africa, this year we achieved our target of 40 per cent representation by ‘designated groups’¹ at senior management level and middle management level and are trending towards the target at senior management level.

In support of Indigenous employment and training, this year we implemented a range of initiatives: 7.2 per cent of Iron Ore employees are Indigenous, 20 per cent of the Groote Eylandt permanent workforce is from Indigenous descent and 57 per cent of EKATI Diamonds skilled or professional employees are Northern Aboriginal.

Supply

We seek to ensure that the contracting of services, the purchase, hire or lease of equipment and materials, and activities with partners are carried out so as to minimise any adverse HSEC consequences and, where possible, to enhance community development opportunities. Our objective is to ensure that standards and procedures adopted by our contractors are consistent with BHP Billiton standards.

We recognise the value to local economies that can be delivered through our activities and consequently seek to encourage the development of local contractors and the use of local suppliers wherever possible. For example, our Black Economic Empowerment Procurement Policy has been rolled out at all South African operations.

Our Supply Optimisation in Emerging Markets (SOiEM) Team is focusing on supply chain governance as we look to procurement in new markets such as China and India.

Building on a broad supplier screening process, we are further developing our approach to business conduct and human rights screening of suppliers to ensure that we only select suppliers after careful consideration of both commercial factors and observed sustainability performance.

Economic Contributions

The economic contribution we make to society is much more than the financial profits we derive. Our contribution includes the value that flows from the broader contributions of our operations, such as payments to our employees and suppliers, and disbursements to governments, including taxes and royalties.

BHP Billiton supports the Extractive Industries Transparency Initiative. We are committed to working with our host governments that participate in this process and develop systems to report these payments.

In 2006, two of our South American mines participated in the International Council on Mining and Metal’s Resource Endowment Project to understand how to promote better socio-economic outcomes in natural resource development projects.

14		5 BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006

Policy in Action – Case Studies

The case studies listed below appear in our Full Sustainability Report. They present examples of issues, initiatives, projects and programs across the Group and highlight some of the sustainability opportunities and challenges faced by our operations. In this Summary Report, we present in abbreviated form the five case studies indicated in colour.

Health

•

Employee Health – Read how BMA and Iron Ore are helping employees monitor and manage their health

•

Health Management – Kwinana Nickel Refinery conducts an industry-first baseline study of ingested nickel in employees

•

Community Health Clinics – Valesul and Hotazel are helping to improve health standards in local communities

•

HIV/AIDS – The Ethembeni Care Centre is a ‘Place Of Hope’ in southern Africa

•

Exposure Management – Pioneering technology for unloading coal dump wagons at BMA Hay Point alleviates employee health issues

Safety

•

Road Safety – Mt Arthur Coal, Minera Spence and Mozal demonstrate the programs to manage risks associated with vehicles and mobile equipment

•

Safety Leadership – Minera Spence employees SPOT the safety difference and Mozal achieves a safety breakthrough

•

Confined Space Management – An innovative tank cleaning system reduces the time people spend working in confined spaces

•

Learning from Fatalities – Escondida and Mozal turn the hard lessons of fatalities into substantial improvements in safety

•

Heavy Equipment – Illawarra Coal sets new standards with design for Operator’s Cabin in Load-Haul-Dump equipment

•

Aviation Safety – Company-wide Aviation Standards and Guidelines address the risks associated with flying

•

Safety in the Supply Chain – Our global Caterpillar alliance, deepwater drilling in the Gulf of Mexico and integrating local contractors into site-based HSE management systems show how we work with contractors to ensure their safety

Environment

•

Stewardship – Minimising coal loss during the mining process, supporting responsible jewellery practices and researching the feasibility of third-party certification of mining’s environmental and social performance demonstrate how we have embraced the principle of stewardship

•

Waste Recycling and Reuse – Alumar provides coal fines as a substitute for coke burned at a cement plant in the region.

•

Rehabilitation and Closure – Petangis, San Juan and San Manuel are testimony to our approach to closure planning

•

Biodiversity – Our Arid Recovery Program, camera trapping program in Suriname and approach to managing pastoral leases demonstrate how we manage the values of biodiversity

•

Spills Management – Angostura helps a local community to safeguard their environment in the event of an oil spill

•

Water Management – Ingwe’s Emalahleni Water Reclamation Project is a sustainable solution to a critical water issue

•

Energy Efficiency – EKATI shows how we can all reduce greenhouse gas emissions and help mitigate climate change

•

Environmental Management – EKATI and Olympic Dam engage our stakeholders in ways to reduce our environmental footprint

Community

•

Education – Partnering with Government in Western Australia, supporting South African Community Early Learning Centres and funding the Australian Tools for Change Program are just some of the ways we support education

•

Disaster Relief – Where host communities are prone to natural disasters – such as Pakistan, Chile, Trinidad and Tobago, and the US Gulf States – we help them with both disaster planning and relief

•

Alcohol Management – GEMCO and Iron Ore are helping communities address the problems associated with higher than average rates of alcohol consumption

•

Community Partnerships – Illawarra Coal and Escondida show the value associated with having community ownership of community programs

•

Community Development – Improving sanitation and providing clean water is enhancing living standards in Pakistan

•

Community Consultation and Engagement – Read how we employ a range of techniques to ensure different communities, such as local Peruvians and semi-nomadic Bedouin people in Algeria, are informed about our operations and that they have opportunities to express their views and engage in decision-making

•

Indigenous Governance – The Indigenous Governance Awards are providing important lessons about how to overturn disadvantage in Indigenous communities

•

Cultural Heritage – A heritage study of a proposed gas plant site in Australia’s Pilbara region is providing local Indigenous people with valuable information from the past

Socio-Economic

•

Working in Emerging Markets – The Company takes up the challenge of procuring supplies from emerging markets

•

Skills Development – Project Greenshoots and BMA’s Skills for Growth are helping to attract and retain people

•

Diversity – Building the profile of women in our workforce increases the diversity of our employee base

•

Indigenous Skills Development and Employment – EKATI and GEMCO lead the way in promoting employment and business opportunities for local Indigenous peoples

•

Mining Impact Analysis – Antamina and Escondida measure the socio-economic contribution of mining operations to their host countries

•

Supporting Local Suppliers – An important way we support our host communities is using local suppliers

•

Human Rights – Human rights aspects are integrated across our business, [ILLEGIBLE] by training in Algeria and Cerrejón

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 20065		15

Policy in Action – Case Studies continued

Health

Our approach to health management is based on controlling employee exposures and reducing occupational illnesses

Throughout the Company, there are numerous examples of our people developing and implementing innovative engineering solutions to activities that have high health-risk potential.

Stainless Steel Materials, Kwinana Nickel Refinery, Western Australia

As part of a comprehensive biological monitoring program in our Nickel West’s operations, Kwinana Nickel Refinery (KNR) undertook a study in 2005 to determine baseline levels of ingested nickel in employees and contractors. The study is the first of its kind to be conducted in the international nickel industry.

There are no standards setting safe levels of ingested nickel. Using the best available knowledge, a conservative protocol was developed for both the general workforce and pregnant workers, following research that suggested the possibility of high levels of ingested nickel leading to problems in female reproduction.

Samples were taken from a large number of employees and contractors over a 14-week period. Results revealed levels of nickel similar to that of non-occupationally exposed people, providing a level of assurance that ingested nickel exposures at KNR are not likely to cause reproductive harm.

Carbon Steel Materials, BHP Billiton Mitsubishi Alliance, Queensland, Australia

The coal from our mines is delivered by train to our coal terminal at Hay Point. It is conveyed in ‘bottom dump’ wagons, which have floors that open and allow the coal to be dumped into bins below. During transportation, the coal often becomes moist and some of it settles and sticks to the walls and floor of the wagons.

Operators at the dumpstations conventionally use jackhammers to vibrate the sides of the wagons, loosening the sticky coal and allowing it to drop into the bins. The use of jackhammers can give rise to health and safety issues. A project team addressed this challenge by developing an innovative machine that vibrates the wagons to loosen the coal. The pioneering technology has alleviated the health and safety issues and could potentially lead to full automation of the coal unloading process.

Saftey

Working closely with our contractors to ensure their safety management systems align with those of BHP Billiton

In addressing our challenge of Fatal Risks, a focus area is contractor safety management. We work closely with our contractors to ensure their safety management systems align with ours, and that they incorporate our Fatal Risk Control Protocols, so as to minimise any adverse HSEC consequences and, where possible, to enhance community development opportunities.

Corporate Global Supply

BHP Billiton and Caterpillar formed a strategic alliance in 2003 that has enabled our two companies to work towards common sustainability goals. The Alliance is investing in opportunities to better understand technologies that could address the long-term needs of our Company and other users of Caterpillar machinery through an integrated research and development program. Key areas of focus include safe access and egress for operators, reducing greenhouse gas emissions and developing fatigue management technologies.

Petroleum, Worldwide Drilling Group, Texas, US

In 2005, GlobalSantaFe, our drilling contractor in the region, and its ultra deepwater drillship, the CR Luigs, received the 2005 Safety Award for Excellence from the US Minerals Management Service of the US Department of the Interior, the primary regulator of the industry. Key to the excellent safety performance has been our concerted effort to work as a team, setting out to achieve Zero Harm to people and the environment and to outperform the industry in drilling efficiency.

Aluminium, Mozal, Mozambique

Our southern African aluminium smelters have developed a strategic framework designed to firstly, ensure that all contractors are aware of their contribution to the overall health, safety ad environmental performance on site and, secondly, facilitate the sharing of learnings and completion of projects. The strategic framework is divided into two risk profiles (Risk Profiling and Risk Management) and has five basic components: pre-qualification; tender and award selection; access and activation; execution and control; and performance management.

16		5 BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006

Environment

Biodiversity loss due to competing land use is an issue of global concern, and one of our key sustainability challenges

We are committed to actively enhancing our contribution to biodiversity protection. A number of our sites operate in or near areas recognised as having high biodiversity values, underscoring the importance of biodiversity conservation. The majority of our sites have biodiversity considerations embedded in their overall environmental management system and many are actively engaged in biodiversity-related programs, often partnering with academia and research institutes to improve biodiversity outcomes.

Base Metals, Olympic Dam, South Australia

Located near our Olympic Dam mine, we initiated Arid Recovery, which is the largest fenced reserve in Australia from which all feral cats, foxes and rabbits have been removed. The reserve straddles the mine lease and four other pastoral properties, two of which are leased by the Company. Native animals and plants thrive within the 86-square-kilometre enclave, which has become both a centre for ecological research and the site of a nationally significant conservation program.

Aluminium, Bakhuis Concession Area, Suriname

As part of an exploration program in western Suriname, a camera trapping program was established in conjunction with Conservation International, an international not-for-profit organisation focused on conserving biodiversity, to record the diverse and abundant fauna of the concession area. Such a project provides a sound basis for the prediction of potential impacts of any future mining at Bakhuis, together with the responsible management of those operations.

Stainless Steel Materials, Nickel West, Western Australia

Nickel West is a major pastoral landowner facing many challenges. With the support of Western Australia’s Curtin University of Technology and the Centre for the Management of Arid Environments, we have established Ecosystem Management Understanding (EMU) projects for our pastoral holdings, designed to help us understand the complexity and inter-connectedness of rangeland biodiversity and adopt a sustainable approach to the environments in which we operate.

Community

Where host communities are prone to natural disasters, we help them with both disaster planning and relief

When natural disasters, such as hurricanes, earthquakes, floods and drought strike, the impact on our operations, employees and their families, and our host communities can be dire. Through our community development programs, we help with both disaster planning and relief programs. Our employees also assist through donations, volunteer work and fundraising, the value of which is matched by the Company through our Matched Giving Program.

Base Metals, Cerro Colorado, Chile

In June 2005 an earthquake struck Chile in the vicinity of our Cerro Colorado mine, killing eleven and affecting thousands. In the months following, the Company and different groups of our employees and contractors played an active part in the recovery process and development of a Plan for the Reconstruction of Tarapaca, an initiative of the national government.

Petroleum, Operations and Technology Team, US

Before the onset of the US hurricane season in 2005, we partnered in an aid project to collect, sort and distribute food and supplies, and support emergency shelters set up for evacuees. Following Hurricanes Katrina and Rita, our employees contributed hundreds of hours in relief efforts. Every contribution was needed as the 2005 hurricane season was the worst on record.

Petroleum, Zamzama Gas Project, Pakistan

The United Nations declared the October 2005 Pakistan earthquake to be the worst in recent history. We joined with the Government of Pakistan and various NGOs to support relief efforts. With the help of local and worldwide staff, our donations reached more than US$600,000 for urgent humanitarian programs, the reconstruction of houses, medical supplies and mobile medical units.

Petroleum, Angostura Integrated Oil and Gas Development, Trinidad and Tobago

As Tobago has been the victim of a number of natural disasters in recent years, we partnered with the Trinidad and Tobago Office of Disaster Preparedness and Management to provide basic cardiac life support training programs to various primary care institutions to ensure that they are equipped to assist in the preservation of human life.

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 20065		17

Policy in Action — Case Studies continued

Socio-Economic

Measuring the socio-economic contribution of mining operations to their host countries

Our Antamina mine in Peru and Escondida mine in Chile participated in a major study by the International Council on Mining and Metals (ICMM) to understand how large-scale mining activity can impact the socio-economic development of host countries. In both cases, there is evidence that the mining operations have contributed to economic and social improvements and their efforts provide lessons on how to promote better socio-economic outcomes in natural resource development projects.

Natural resource endowments have contributed to broad-based and long-term socio-economic development in some countries, but the degree of development is not consistent across those countries. The ICMM study sought to understand why some countries have been able to avoid problems and how the dynamic forces that created good outcomes can be repeated.

A summary of the contribution of the two mines to employment and procurement and the contribution of the mining sector to national gross domestic product (GDP) and exports is presented in Table 1. Though modern industrial mining is highly mechanised, the numbers of people employed (either directly or indirectly) are substantial. Another striking employment characteristic is the generally low number of expatriate staff. At Antamina, the number of expatriate staff halved in the five years to 2005; 92 per cent of the staff come from the local region. At both mines, the value of the procurement of goods and services is substantial, as is the proportion that is sourced domestically.

Both mines have adopted social investment policies and have invested in a range of social and economic infrastructure initiatives. Escondida stated its commitment to a sustainable development framework from the outset and this has been reflected in various social investments in line with strategic priorities.

The ICMM analysis of the overall social and economic impacts of the mines shows that the GDP per capita of Region II, where Escondida is located, is more than twice the national average. The region also has the lowest poverty rates in Chile and the highest poverty alleviation rates (1990-2003). There is significant local procurement, resulting from deliberate targeting and fostering of suppliers, combined with efforts to build their capacities through a collaborative training and development process. Escondida has invested in human and social capital within Region II via a Foundation, with increasing emphasis on partnering with stakeholders to underpin the sustainability of social infrastructure. Additionally, the Company has developed in Antofagasta a training centre for the industrial and mining sectors.

From Antamina’s perspective, the Company has invested in enhancements to the social infrastructure of host

communities in order to underpin their sustainability. It is not yet possible to ascertain whether mining has improved or undermined the regional human development index relative to the national average, and the limited size of the economy and young age of the mine mean that it is premature to assess the status of economic development and diversification definitively. Initiatives that have been put in place will take time to have an impact.

Social and community impacts of the mines are linked to a number of factors: the direct impacts of mining on incomes and employment, the mine’s social investment policies, the strength of local governance and local institutions, and also to some extent national policies for mining revenue redistribution and their effect on investments in social infrastructure by regional and local governments.

The ICMM report concludes with a summary of recommendations, which are reflected in the Chilean and Peruvian experiences at Escondida and Antamina, and include:

•

extending conventional commercial risk analysis to take account of perceived weaknesses in the capacity of governments at different levels to undertake economic development planning and management

•

building a sustainable domestic supply chain through procurement policies and activities that focus on building the capacity of local suppliers

•

implementing community development principles that focus on reducing poverty in host communities and underpinning their sustainability.

Table 1

Employment and other contributions		Escondida				Antamina
(highlights)		(Chile)				(Peru)
(Data is from the latest year available)
Total employment			2,930				3,524
Indirect employment
(Includes permanent contract employees located at the mines)			2,621				2,102
Estimated induced employment			12,300				5,815-8,810
Expatriate/Domestic employment			1%/99	%			1%/99	%
Procurement		US$	540 m			US$	265 m
Domestic procurement			85	%			89	%
Contribution to domestic tax revenue		US$	896	m		US$	319 m
National mining sector contributions to:
GDP			8.0	%1			7.6	%
Exports			57	%			50	%

1.

According to some estimates, the mining sector in Chile would represent more than 13% of the national GDP if indirect impact is considered (Ramos, Diaro Financiero, 2005)

18		5BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006

Our Resources at Work

Customer

Diamonds and Specialty

Sector Group

Petroleum

Aluminium

Base Metals

Carbon Steel Materials

Products

Energy Coal

Stainless Steel Materials

OIL AND

TITANIUM

THERMAL

Commodity

NATURAL GAS

ALUMINIUM

COPPER

GOLD

LEAD

SILVER

URANIUM*

ZINC

MANGANESE

IRON ORE

COKING COAL

DIAMONDS

COAL

NICKEL

COBALT

Fuel, heating, electricity generation

High-tension power lines, wires and cables

Wire and cables, electrical wiring in buildings, electrical generators and motors

Lead-acid storage batteries (car batteries), remote area power storage

Electricity generation

Zinc carbon batteries

Dry cell batteries

Electricity generation, heating

Electricity generation turbines, batteries

Rechargeable lithium batteries for mobile telephones and laptop computers, jet engine turbines

Carpets, paints, plastics

Door and window frames, wall cladding, roofing, awnings

Electrical wiring, plumbing pipes and tanks, roofing, light fixtures, treated timbers

Gold leaf for decoration

Roofing, plumbing, soundproofing, stained glass windows

Solder

Roofing, fences, doors, handles, paints, plumbing, nuts and bolts

Steelmaking, buildings, bridges, tools, cranes

Diamond grit and powder impregnated rock drilling bits, masonry drilling, machine tool tips and cutting discs

Pigment for paints, fabric, plastics, paper

Street furniture, building cladding, stainless steel

Tyre adhesives, magnets, carbide cutting tools

Electricity generation, transport, furnace fuel

Propellers, body sheet (for ships, aeroplanes, vehicles), gearboxes, motor parts, wires, cables, packaging

Wires and cables, electrical wiring in buildings and vehicles, robotics, airconditioning and refrigeration units, scientific instruments

Electronics for computers, industrial equipment, aerospace technology, tinted-glass windows

Lead foil, radiation shields, toxic waste storage containers, dyes, solder

Photographic paper and film, medicines, super conductors

Electricity generation

Galvanising and corrosion protection, car bodies, carburettors, tyres

Steel alloys

Steelmaking, transport equipment, motor vehicles, farm machinery

Steelmaking

Polishing compounds for fine optical surfaces, jewel bearings, wire drawing dies

Titanium metal for aerospace equipment, engines, abrasives, ceramics, robotics

Electricity generation, heating, cement

Computer hard disks, surgical implements and implants, jet engines, food and beverage equipment, pharmaceutical equipment, vehicles, metal

Paints, enamels, glazes

hardening

Plastic components, packaging

Components for TV sets, radios, refrigerators and airconditioners

Electrical appliances, telephone cables, microwave equipment, radio and TV sets

Electronic technology

Electronic and electrical appliances such as radios and TV sets (soldered connections)

Door handles and other household components, brass fittings

Refrigerators, washing machines, ovens

Knife ‘sharpeners’

Paper products, computer and TV screens

Colour TV tubes, kitchen sinks, white goods

Videotape coatings, heating elements on electric stoves

Electricity, fuel for vehicles, fuel for cooking and heating, clothing fabric, plastic toys, pens

Beverage cans, bottle tops, foil wrap, foil semi- rigid containers, kettles and saucepans, cutlery, tennis racquets, softball bats, indoor and outdoor furniture, bicycles, vehicles

Ornaments, telephones, cooking utensils, home heating systems, decorative applications, coins

Jewellery, watches, currency, dentistry, decoration for dinnerware and ornaments

Computers, leadlight windows, glass in TV and computer screens for radiation protection

Jewellery, watches, dinnerware and ornaments, mirrors, cutlery, currency, medallions

Electricity

Medications, zinc cream, TV sets, computer parts, toys

Glass, ceramics, dry cell batteries

Food cans, vehicles, tools, cutlery, jewellery, watches

Jewellery

Cosmetics and sunscreens, fabric, clothing, jewellery, heart pacemakers, hip replacements, food colouring

Electricity, fuel for cooking and heating

Kitchen utensils, coins, mobile telephones, bathroom and kitchen fittings and fixtures

BHP BILLITON SUSTAINABILITY SUMMARY REPORT 20065		19

Offices

Ref		Country		Location
1		Australia		Adelaide s •
2		Australia		Brisbane •5
3		Australia		Melbourne
				(Global Headquarters) s • 5
4		Australia		Newcastle§
5		Australia		Perth s • 5§
6		Belgium		Antwerp •
7		Brazil		Rio de Janeiro • 5
8		Canada		Vancouver 5
9		Chile		Santiago s • 5
10		China		Beijing • 5
11		China		Shanghai •
12		Germany		Essen •
13		India		New Delhi • 5
14		Indonesia		Jakarta •
15		Japan		Tokyo •
16		Korea		Seoul •
17		Mongolia		Ulaanbaatar 5
18		Netherlands		The Hague •
19		Peru		Lima 5
20		Russia		Moscow • 5
21		Singapore		Singapore •
22		South Africa		Johannesburg s • 5§
23		Switzerland		Baar •
24		UK		London s
25		UK		Sheffield •
26		US		Houston s •
27		US		Pittsburgh •

^s Corporate Centres

• Marketing Offices

5 Minerals Exploration Offices

§ Technology Centres

Petroleum

Ref		Country		Site/Asset		Description		Ownership
28		Algeria		Ohanet		Joint operator with Sonatrach of wet gas development			45	%
29		Algeria		ROD Integrated Development		Onshore oil development			36.04	%
30		Australia		Bass Strait		The Bass Strait operations produce oil, condensate, LPG, natural gas and ethane			50	%
31		Australia		Griffin		Operator of oil and gas project offshore WA			45	%
32		Australia		Minerva		Operator of Minerva gas field development in the Otway Basin			90	%
33		Australia		North West Shelf		One of Australia’s largest resource projects, producing liquids, LNG and domestic gas			8.33-16.67	%
34		Pakistan		Zamzama		Operator of onshore gas development			38.5	%
35		Trinidad and Tobago		Angostura		Operator of oil field			45	%
36		UK		Bruce/Keith		Oil and gas production in the UK North Sea (sold in August 2006)			16-31.83	%
37		UK		Liverpool Bay		Operator of oil and gas development in the Irish Sea			46.1	%
38		US		Gulf of Mexico		Interests in several producing assets, the Atlantis, Neptune and Shenzi developments, and a significant exploration acreage position			4.95-100	%
-		Various		Exploration		Exploration interests in Algeria, Australia, Brunei, Maritime Canada, Colombia, Namibia, Pakistan, South Africa, Trinidad and Tobago, UK, US		—

Aluminium

Ref		Country		Site/Asset		Description		Ownership
39		Australia		Worsley		Integrated alumina refinery/			86	%
						bauxite mine
40		Brazil		Alumar		Alumina refinery and aluminium			36-40	%
						smelter
41		Brazil		MRN		Bauxite mine			14.8	%
42		Mozambique		Mozal		Aluminium smelter			47.1	%
43		South Africa		Hillside/Bayside		Two aluminium smelters			100	%
44		Suriname		Paranam		Alumina refinery and bauxite mines			45	%

Base Metals

Ref		Country		Site/Asset		Description		Ownership
45		Australia		Cannington		Silver, lead and zinc mine in north-west Queensland			100	%
46		Australia		Olympic Dam		Large underground copper/uranium mine in South Australia			100	%
47		Chile		Cerro Colorado		Copper mine in northern Chile, producing cathode copper through a SX-EW leach operation			100	%
48		Chile		Escondida		The world’s largest copper mine, located in northern Chile			57.5	%
49		Chile		Spence		Open cut copper mine under development			100	%
50		Peru		Antamina		Large copper-zinc mine			33.75	%

Carbon Steel Materials

Ref		Country		Site/Asset		Description		Ownership
51		Australia		GEMCO		Producer of manganese ore			60	%
52		Australia		Illawarra Coal		Three underground coal mines			100	%
53		Australia		Queensland Coal		World’s largest supplier of high-quality metallurgical coal for steel production			50-80	%
54		Australia		TEMCO		Producer of manganese alloys (•)			60	%
55		Australia		WA Iron Ore		Pilbara iron ore mine, rail and port operations			85–100	%
56		Brazil		Samarco		An efficient low-cost producer of iron ore pellets			50	%
57		South Africa		Samancor Manganese		Integrated producer of manganese ore (Hotazel Manganese Mines) and alloys (Metalloys)			60	%

Diamonds and Specialty Products

Ref		Country		Site/Asset		Description		Ownership
58		Canada		Yellowknife		EKATI Diamond Mine in the Northwest Territories of Canada			80	%
59		Mozambique		Corridor Sands		Titanium minerals project			90	%
60		South Africa		Richards Bay Minerals		World’s largest producer of titanium slag			50%

Energy Coal

Ref		Country		Site/Asset		Description		Ownership
61		Australia		Hunter Valley
				Energy Coal		Mt Arthur Coal			100	%
62		Australia		Illawarra Coal		Marketing agent for energy coal output			—
63		Australia		Queensland Coal		Marketing agent for energy coal output			—
64		Colombia		Cerrejon		Largest coal producer in Colombia			33.3	%
65		South Africa		Ingwe		Largest coal producer in South Africa			100	%
66		US		New Mexico		Mine-mouth operations			100	%
				Coal

Stainless Steel Materials

Ref		Country		Site/Asset		Description		Ownership
67		Australia		Nickel West		Nickel assets including Mt Keith and			100	%
						Leinster operations, Kalgoorlie nickel
						smelter and concentrator and Kwinana
						nickel refinery
68		Australia		QNI Yabulu		The Yabulu refinery is one of the world’s			100	%
				Refinery		major laterite nickel cobalt processing
						plants
69		Australia		Ravensthorpe		Ravensthorpe nickel mine and processing			100	%
				Nickel Project		facility (currently in development)
70		Colombia		Cerro Matoso		Integrated ferronickel mining and			99.8	%
						smelting complex in north Colombia

5 BHP BILLITON SUSTAINABILITY SUMMARY REPORT 2006		20

Recognition

BHP Billiton Employee HSEC Awards

The BHP Billiton Employee HSEC Awards encourage and recognise employees and their teams who openly embody the values expressed in our Charter and go beyond their day-to-day job requirements to care for fellow employees, the community and the environment.

Individual Excellence Award Short-listed Nominees

To be personally selected by the Chair of the Judging Panel, The Rt Hon Sir Ninian Stephen

Jannie Kleynsmith		Rossana Espinoza		Terry Fletcher		Eduardo Lara		Tarique MacDonald-Razvi		Trefor Penno
Aluminium, Bayside		Base Metals, Cerro		Base Metals, Ambrosia		Base Metals, Cerro		Carbon Steel Materials,		Carbon Steel Materials,
Aluminium Smelter,		Colorado, Chile		Lake, New Mexico, USA		Colorado, Chile		Western Australia Iron Ore		Western Australia Iron Ore
South Africa
Graham Perkins		Barry Quiroz		Aubrey Matuludi		Jim Trench		Muliawan Margadana
Carbon Steel Materials,		Minerals Exploration,		Energy Coal, Ingwe,		Petroleum Products		BHP Billiton Indonesia,
BHP Billiton Mitsubishi		East Asia, Beijing, China		Middelburg Mine,		Marketing, Supply &		Jakarta Office, Indonesia
Alliance, Peak Downs				South Africa		Trading, Singapore
Mine, Australia

Award Finalists (all finalists are team representatives)

Health		Safety		Environment		Community
Fatigue Management (Tony O’Keefe)		Six Sigma Visibility Project		San Manuel Mine Reclamation Project		Drought Relief Program
Carbon Steel Materials,		(John Mitchell)		(John Kline)		(Salvador Traquino)
Western Australia Iron Ore		Energy Coal, Mt Arthur Coal,		Base Metals, San Manuel Mine, USA		Aluminium, Mozal, Mozambique
Reducing Dust and Noise		Hunter Valley, Australia		Miami Unit No 2 Tailings Site		Mozlink II (Frans-Jozef Jaspers)
Generation during Metal Ladle		Behaviour Based Competence Model		Reclamation (David Unger)		Aluminium, Mozal, Mozambique
Lifting Beam Testing (Ramiro Roy)		(Ramón Parrguez)		Base Metals, Pinto Valley Operation,		Groote Eylandt Liquor Management
Aluminium, Mozal, Mozambique		Base Metals, Escondida,		USA		Plan (Rick Peters)
Bird Flu Pandemic Preparedness		Second Region, Chile		Punta Negra Salt Lake		Carbon Steel Materials, GEMCO,
Project (Yusdi Sangadji)		Reducing Road Transport Risks		Biodiversity Monitoring Plan		Australia
Jakarta Office, Indonesia		(John Christowitz)		(Nora Patricia González Jorquera)
Nickel Hygiene Baseline Study						Professional Skills Development
		Aluminium, Mozal, Mozambique		Base Metals, Escondida, Chile		Program (Ralph Chelotti)
(Iona Williamson)		Zero Incident Process (Nicole Sabourin)		Arid Recovery (John Read)		Carbon Steel Materials, Samarco
Stainless Steel Materials, Kwinana		Diamonds and Specialty Products,		Base Metals, Olympic Dam, Australia		Mineração S.A., Brazil
Nickel Refinery, Australia		EKATI Diamond Mine, Canada		Shenzi Subsea Architecture		Community Relocation Project
Hallmark Nickel Prospect Community		Eliminating High Risk Activities in		Optimisation (David Trench)		(Luis Alberto Ponguta)
and Health Development Project		Drilling Operations (Dale Bradford)		Petroleum, Shenzi Development,		Stainless Steel Materials,
(Carlito Rena)		Petroleum, Worldwide Drilling Team,		Gulf of Mexico, USA		Cerro Matoso, Colombia
Minerals Exploration, Region XI,		Houston, USA		Tank Cleaning System (Patrick Fee)		Livestock Training Program
Philippines		Contractors Safety Awareness Program		Petroleum, Fourchon Shore Base, USA		(Sheldon Narine)
Improving Ergonomic Conditions at		(Muhammad Aftab Khan)		Ore Moisture Conditioning Project		Petroleum, Angostura Oil and
Horizontal Direct Chilled Casting		Petroleum, Pakistan Asset, Islamabad,		(John Groves)		Gas,Trinidad and Tobago
Machine (Sebastião Rodrigues)		Pakistan		Carbon Steel Materials, WA Iron Ore,		Community Sanitation Program
Aluminium, Valesul Alumínio S.A.,		Measuring Contractor Performance		Australia		(Humera Malik)
Rio de Janeiro, Brazil		(Johan Badenhorst)		Reusing Town Treated Effluent		Petroleum, Zamzama Asset, Pakistan
Digital Noise Display Board		Energy Coal, Ingwe, Middelburg Mine,		Program (Carl Bagnall)		Fish Farming Development Program
(Mariaan Smit)		South Africa
				Energy Coal, Mt Arthur Coal,		(José Haroldo Chaves Paulo)
Energy Coal, Ingwe, Khutala Colliery,
		BMA Haul Road Watering Project		Hunter Valley, Australia		Aluminium, Mineração Rio do Norte,
Mpumalanga, South Africa
		(Ross Truelson)		Brazil Nut Germplasm Bank		Brazil
Risk Based Medical Assessments		Carbon Steel Materials, BHP Billiton
				(Ademar Cavalcanti Silvi)		Tintaya Foundation (Alfredo Zuniga)
(Samantha Lee)		Mitsubishi Alliance, Peak Downs Mine,
				Aluminium, Mineração Rio do Norte,		Base Metals, Tintaya, Peru
Petroleum, Australia Operated		Australia
				Brazil		Valesul Volunteer Program
Asset Team, Griffin Venture,
Western Australia		Dozer Training Package (Edan Stolberg)		Coal Fine Reuse as Secondary Fuel		(Victor Ladeira)
		Carbon Steel Materials, BHP Billiton		(Emanoel Varão)		Aluminium, Valesul Alumínio S.A.,
Fatigue and Sleep Control (Horatio Reeves)		Mitsubishi Alliance, Australia		Aluminium, Alumar, Brazil		Brazil
Base Metals, Antamina, Peru		HSEC Contacts Process
		(Anthony Peterson)
Fatigue Management in Coal Mining Program (Garry Hughes)		Carbon Steel Materials, BHP Billiton Mitsubishi Alliance, Goonyella Riverside				The excellence, highly commended and merit award recipients will be listed in our Full Sustainability Report following their announcement at the Awards presentation to take place on 12 September 2006.
Carbon Steel Materials, BHP Billiton Mitsubishi Alliance, Peak Downs Mine, Australia		Mine, Australia

BHP BILLITON SUSTAINABILITY SUMMARY 2006

About BHP Billiton

BHP Billiton is the world’s largest diversified resources company, with a portfolio of high-quality, long-life assets and a significant pipeline of growth projects. We have around 38,000 employees working in more than 100 operations and offices in 25 countries (see our BHP Billiton locations map).

The headquarters of BHP Billiton Limited, and the global headquarters of the combined BHP Billiton Group, are located in Melbourne, Australia. BHP Billiton Plc is located in London, United Kingdom. The Group has primary listings on the Australian and London Stock Exchanges.

We have adopted a business model based on customer-oriented groupings called Customer Sector Groups (CSGs). This structure reflects our focus on the needs of our customers.

Each CSG is a substantial business in its own right, and several are leaders in their respective fields. They have autonomy to optimise their businesses, with clear accountabilities. The CSGs are Aluminium, Base Metals, Carbon Steel Materials (includes Metallurgical Coal, Iron Ore and Manganese), Diamonds and Specialty Products, Energy Coal, Petroleum, and Stainless Steel Materials. Our key markets include downstream refiners and processors of raw materials, such as steelworks, smelters, petroleum refiners, power stations and diamond cutters.

Last year we welcomed WMC Resources Ltd to the Group and this year commenced reporting on the activities of former WMC assets.

In line with the values expressed in our Charter, throughout our operations we have an overriding commitment to health, safety, environmental responsibility and sustainable development.