Supply Innovation. Susan Lasecki and Maria Jose Araneda Seminario de Abastecimiento en Minería, April 24 th, 2018

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1 Susan Lasecki and Maria Jose Araneda Seminario de Abastecimiento en Minería, April 24 th, 2018

2 Mining industry challenges Safety and Sustainability Declining Grade Commodity Cycle 100 years vs. Disruption Production vs. Innovation 2

3 Creating space for innovation Open Innovation Methodology Supplier Collaboration SRM Collaboration in Technology Strategically and Operationally Culture Diversity and Inclusion Trust and Collaboration 3

4 Taking Cluster Program to the Next Level 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. 4

5 Leveraging 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 & Projects BHP business challenges become the catalyst for developing an ecosystem of innovation 5

6 Supply creates shared value at three levels Supplier Collaboration - SRM Collaborating with strategic suppliers to amplify our reach: Local Hiring Buying locally Developing local entrepreneurship Creating innovative solutions Cluster / Leveraging supplier innovation by taking a business challenge to the market, both strategic and operational Foster an ecosystem of entrepreneurial innovation Targeted interventions supporting suppliers scale up Creating the Future Innovator Adaptor Strategic / OEMs Medium tier Local Suppliers & Indigenous Communities Support form small local suppliers (direct and indirect): Access to BHP (Outsource) Business basics assistance Supporting local entrepreneurs Simple User Local & Indigenous 6

7 Empowering the Ecosystem of Innovation 7

8 Innovation Technologies Areas of opportunity Exploration and Planning Extraction and Transport Dry Processing Wet Processing Energy and Water Automation and Robotics Big Data / Machine Learning / AI Process Optimization 8

9 Commercial Management Team Head of Category Management Antonio Velásquez Manager Cluster Susan Lasecki Head of Warehouse Logistics & Inventory Vacant Head of Project Contract & Procurement Sally Hancock Manager Analysis & Improvement Kurt Benavides Head of Business Partnering Escondida Roberto Medina Manager Purchasing Viviana Colazo Administrator Supply Paula Muñoz Manager Business Partnering Pampa Norte Fabian Gutierrez VP Supply Minerals Americas Cristian Magri 9

10 & Purchasing Team Mining Equipment & EMT Jorge Wahl Business Wide Goods & Services Andrés Daneri Utilities Fernando Salinas Drill & Blast Nelson Cornejo Freight & Logistic Viviana Lara Plants Services Leonardo Rioseco Plants Goods Juan Larenas Principal LCC Nicolas Urzua Shangai Purchasing Operations Alejandra White Purchasing Functions Ian Oxley

11 Team Principal María José Araneda Specialist Camila Caceres Escondida Specialist Vacant Spence Graduate Josefina Larrañaga Escondida Graduate Ailyn Molina Spence

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