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BHP BILLITON

BHP BILLITON. INDEPENDENT ANNUAL SURVEY OF COMMUNITIES Mine X, South America 2005. Presented to CommDev M&E Workshop Dec. 5, 2006 By Rob Kerr, GlobeScan. PREPARED FOR BHP BILLITON BY GLOBESCAN INCORPORATED. Introduction.

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BHP BILLITON

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  1. BHP BILLITON INDEPENDENT ANNUAL SURVEY OF COMMUNITIES Mine X, South America 2005 Presented to CommDev M&E Workshop Dec. 5, 2006 By Rob Kerr, GlobeScan PREPARED FOR BHP BILLITON BY GLOBESCAN INCORPORATED

  2. Introduction • BHP Billiton’s corporate charter states that the company “is successful in creating value when the communities in which they operate value their citizenship.” • BHP Billiton contracted with GlobeScan, a public opinion and stakeholder research firm to determine how much communities value the company. • GlobeScan surveys the general populations in selected communities deemed to be affected by five BHP Billiton mines located around the world, including Mine X. • For the first three years, surveying was done annually at each site. In the future, the plan is to survey at least once every two years. • GlobeScan provides BHP Billiton management with a complete report on Mine X and an aggregate report covering the five sites.

  3. Methodology • GlobeScan develops survey instrument and sample design and manages research. • GlobeScan’s local research partner carries out the fieldwork in local language. • 300 face-to-face interviews in the communities; 25-minutes. • Random sampling of the general population: a random route for each interviewer; a systematic sample to select households and member of household. • Sampling error of plus or minus 5.6 percentage points 19 times out of 20.

  4. Reasons for and Benefits of Surveying • Determine whether the communities feel that they are better or worse off, and by how wide a margin, because of BHP Billiton’s operations and community programs. • Reveal communities’ perceptions of the mine’s social, economic, cultural, and environmental impacts. • Detect trends in perceived conditions, performance, etc. • Help make the case for community programs. • Help develop, focus, and assess community programs. • Develop and refine communications programs. • Develop key performance indicators (also with qualitative data). • Sound advice to improve communities, as well as corporate performance and reputation.

  5. Selected Key Findings at Mine X in 2005 • Majorities view air quality, drinking water, and transportation as good; crime level, poverty, and availability of jobs as bad. • Overall, 58 percent of residents say that their community is better off because of Mine X, up from 2004, but still below 2003. • A majority think that Mine X has a very positive overall impact on the local economy, up 17 points compared to last year. • Providing jobs is top choice for the most important economic benefit that Mine X should provide, followed by paying good wages. • Majorities of residents perceive Mine X’s performance positively for being sensitive to local culture and traditions. • Perceptions of Mine X’s overall commitment to environmental protection have declined significantly over past two years.

  6. Abbreviated Strategic Overview and Implications • Mine X is trusted, has a good reputation, and is valued for its economic and socio-cultural contributions; but faces declining ratings for environmental performance. • Mine X should consider pursuing environmental initiatives (e.g., water), given poor performance and importance of this area to reputation. • Mine X could consider initiatives in other areas that are major shortcomings, namely contributing to local health care system and minimizing impacts on agriculture and livestock operations.

  7. Overall Community Conditions Compared with Five Years Ago Average of Communities Surveyed, 2004-2005 The white space in this chart represents “DK/NA.”

  8. Most Serious Problems in Mine X Communities Average of Communities Surveyed, All Mentions, 2004-2005

  9. Overall Impact on Mine X Communities Average of Communities Surveyed, 2003-2005 The white space in this chart represents “DK/NA.”

  10. Mine X’s Perceived Environmental Performance “Agree,” 2003-2005 *Asked only in port communities

  11. Best Ways for Mine X to Communicate with Population All Mentions, Prompted, Average of Communities Surveyed, 2004-2005

  12. Drivers of Mine X’s Overall Performance Evaluation

  13. For further information, please contact: Rob Kerr, Vice PresidentGlobeScan Incorporated rob.kerr@globescan.com Tel. +1.416.969.3086www.GlobeScan.com

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