BHP Billiton is the world's largest diversified resources company. We are distinguished from resource companies by the quality of our assets; our deep inventory of growth projects; our customer-focused marketing; our diversification across countries, commodities, and our Petroleum business.

BHP Billiton's global headquarters are in Melbourne, with a major office in London, as well as corporate centers in Johannesburg and Houston. Supporting offices are located around the world.

A Premier Global Company

Our vision is to earn superior returns for shareholders as the world's premier supplier of natural resources and related products and services. To this end, our Strategic Framework sets out seven key value drivers:

1. Stability from outstanding assets
2. Stability from the portfolio effect
3. Stability and growth from customer-centric marketing
4. Growth from deep inventory of projects
5. Growth from petroleum
6. Growth through innovation
7. Realizing the full potential of employees.

BHP Billiton has adopted a business model based on customer-oriented groupings called Customer Sector Groups (CSGs). This structure allows us to focus on the needs of our customers. These CSGs are supported by marketing 'hubs' located in The Hague and Singapore.

We have some 35,000 employees working in more than 100 operations in approximately 20 countries. Reflecting our aim to be a premier global company, we occupy industry leader or near industry leader positions in major commodity businesses, including aluminum, energy coal and metallurgical coal, copper, ferro-alloys, iron ore and titanium minerals and have substantial interests in oil, gas, liquefied natural gas, nickel, diamonds and silver.

Petroleum

BHP Billiton Petroleum is a significant oil and gas explorer and producer, with major producing assets in Australia, the United Kingdom, the Gulf of Mexico (US), Algeria and Pakistan. Our portfolio of high-quality, high-margin assets has strong growth potential and provides an excellent return on capital. The oil and gas business provides BHP Billiton with commodity diversity plus exposure to an industry where the growth dynamics are significant.

Aluminum

BHP Billiton Aluminum is active in every stage of the primary aluminum production process: bauxite mining, alumina refining and aluminum smelting. We are one of the world's major producers of alumina and aluminum, with principal assets located in Australia, Brazil, Mozambique, South Africa and Suriname.

Base Metals

BHP Billiton Base Metals is one of the world's top three producers of copper and a top five producer of silver, lead and zinc. We supply high-quality base metal concentrates to European, Asian and South American custom smelters, and copper cathodes (metal) to copper wire manufacturers and brass mills. We have an excellent portfolio of large, low-cost mining operations with substantial growth opportunities.

Carbon Steel Materials

BHP Billiton Carbon Steel Material is a leading supplier of core raw material (iron ore, metallurgical coal, manganese) and services to the global steel industry. We are ranked umber one in the world in seaborne supply of metallurgical coal and manganese, and number three in iron ore. The Group has an impressive portfolio of long-life assets, producing high-quality, low cost products, supplying global markets, particularly in the growing Asia-Pacific region.

Diamonds & Specialty Products

BHP Billiton Diamonds and Specialty Products produce diamonds, titanium slag and rutile, and zircon. Our Ekati Diamond and Mine is one of the world's largest gem quality diamond producers. Diamonds and Specialty Products also include our North American metals distribution business and our minerals-related exploration and technology assets.

Energy Coal

BHP Billiton Energy Coal is one of the world's largest producers and marketers of export thermal coal. Our focus is on providing highly competitive energy solutions for customers, who are primarily involved in electric power generation. The business is structured around a portfolio of world-class producing assets, which provide a unique multi-sourcing capability to service the major power markets of Europe, Asia and the USA. Large, low-cost mining operations, as well as favorable infrastructure positions and a global logistics capacity, underpin our market competitiveness and provide a platform for future growth.

BHP Billiton Stainless Steel Materials is the Western world's fourth largest nickel producer and the second largest producer of ferrochrome. We supply nickel and ferrochrome to stainless steel industry-our principal customer. The Group also supplies nickel, ferrochrome, chrome ores and cobalt to customers in the specialty alloy, chemicals and refractory material industries.

The central tenet of the BHP Billiton business model is that its diversified portfolio of high quality assets provides more stable cash flows and greater capacity to drive growth than the traditional resource cyclicals. In 2004, we generated turnover of US$ 24.9 billion, earnings before interest and tax (EBIT) of US$ 5.5 billion and operating cash flow after interest and tax of US$ 5.2 billion. As at 26 August 2004 our market capitalization was US$ 58.3 billion.

BHP Billiton's Relationship with China

BHP's relationship with China commenced in 1888, with the visit of one of the BHP Directors to China. The first business transaction was recorded in 1891 when BHP exported lead to Fuzhou. Trade continued into the early part of the 20th century, but diminished as BHP's silver, lead and zinc resources declined and the Company turned to iron and steel.
In the 1960s, trade increased again with the export of semi-finished steel products from Australia. In the 1970s BHP began to export iron ore and continued to sell steel products to China. During this time the company was also importing fluorspar, calcined bauxite and flint clay from China.

In 1979 BHP was a member of the first foreign consortium to sign a Production Sharing Contract to explore for oil in the South China Sea. A BHP Petroleum Office was established in Guangzhou in 1983 in support of this activity. The BHP Corporate Office in Beijing opened in 1984.

BHP began investigating mineral exploration joint venture opportunities in China in 1985. In 1993, the Kang Dian Joint Venture, the first Sino-Foreign minerals exploration JV in China, was established to explore for lead and zinc in Sichuan Province.

Some of the BHP Service Companies also had activities in China. BHP Engineering designed and advised on the construction and commissioning of the Shunchang cement plant in Fujian Province, which opened in 1989. As part of its contract, BHP Engineering trained 40 Chinese engineers and operating specialists in Australia. In 1992-93 BHP Transport client-managed the design, construction and acceptance of eight self-discharging barges in Jiangsu Province.

BHP's first manufacturing investment in China came in 1994, when the company was granted licenses to operate steel roll forming businesses in Shanghai and Guangzhou. Both of these plants commenced production in 1995. After the merger in 2001 these roll forming plants were operated by BHP Billiton until the divestment of BHP Steel in 2002.

By 1997 BHP's sales to China included iron ore, copper concentrate, manganese ore, coal, petroleum and steel products. A Minerals Marketing office was established in Shanghai late in 1997 and the China Head Office in Beijing expanded to about 50 people.

In the 1990s BHP was involved in exploration activities in China for base metals in several provinces, ultimately operating 5 exploration Joint Ventures.

BHP Billiton is currently one of the largest sellers of mineral commodities into China. China is now a significant market for BHP Billiton's iron ore and alumina production, accounting for around 20% of our alumina sales and around 40% of iron ore sales. Other significant sales include copper, nickel, chrome, coking coal and manganese.

In the financial year ended June 2005, BHP Billiton's total commodities sales to China surged by 64% to US$4.0 billion, which accounted for 13% of whole company's EBIT.

In March 2004 BHP Billiton announced its intention to enter into the Wheelarra Joint Venture with four of China's leading steel mills. The joint venture will secure the sale to the mills of approximately 12 million tonnes per annum (Mtpa) of iron ore. The joint venture will be BHP Billiton's largest ever commercial agreement with Chinese steel mills, with sales of iron ore expected to total US$9 billion over the next 25 years. This Joint Venture Agreement is approved by the central government.

BHP Billiton currently has around 75 staff in China, most of whom are located in the China Head Office in Shanghai. Around 90% of these employees are Chinese nationals.

BHP Billiton is a participant in the North West Shelf joint venture which has signed Sales and Purchase Agreements for the supply of LNG for the first phase of the Guangdong LNG Terminal and Trunkline Project. In May 2003, BHP Billiton and the other North West Shelf joint venture participants signed an equity agreement with an entity of the China National Offshore Oil Corporation with regard to equity participation by CNOOC in the North West Shelf Project. Under the equity agreement, CNOOC will purchase a 25% interest in a new joint venture that is being established within the NWS Project to supply LNG to the Guangdong LNG Project.

BHP Billiton has recently signed a Production Sharing Contract to explore for and develop Coalbed Methane resources in Northwestern China and has active business and market development initiatives underway in several business areas.

Editor: Donald