Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (June 2011)
18 slides from Rio Tinto's corporate update, Jun 7, 2011
Slide 1: Unparalleled sector leadership: Financial community visit to the Pilbara
Unparalleled sector leadership Financial community visit to the Pilbara 7 June 2011
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-looking statements T
Slide 3: Iron Ore overview
Unparalleled sector leadership Iron Ore overview Sam Walsh, Chief executive – Iron Ore & Australia Financial community visit to the Pilbara 7 June 2011
Slide 4: Outline
Outline •Safety – our core business value •Financial and operational performance •Demand and supply outlook •Pilbara expansion pathway •Capital and operating cost control •Workforce – more than numbers •International growth options •Mine of the FutureTM 4
Slide 5: Safety is our core business value
Safety is our core business value Global Iron Ore injury rates, 2001 to April 2011 LTIFR** * AIFR (all injury frequency rate) includes Lost Day Injuries, Restricted Work Day Injuries and Medical Treatment Cases per 200,000 hours worked which consists of employees, contractors and covers operations a
Slide 6: Records continue in 2010 for Iron Ore
Records continue in 2010 for Iron Ore Global Iron Ore production Iron Ore underlying earnings * (Rio Tinto share, Mt) (US$ billion) * Includes Dampier Salt Note: The sale of Corumbá was completed on 18 September 2009 Source: Rio Tinto Annual Reports 6
Slide 7: Global operations recovering from first quarter weather disruptions
Global operations recovering from first quarter weather disruptions Global iron ore production (Mt) •Rio Tinto’s global production was 239 Mt in 2010 •Increased total Pilbara system capacity to 225 Mt/a in Q1 2011 following completion of Dampier de-bottlenecking •Difficult first quarter – weather-af
Slide 8: China and India following in the foot steps of others
China and India following in the foot steps of others Steel intensity (Steel consumption*, kg/capita against real GDP, $/capita) South Korea (1970-2008) Heavy industry export economies Taiwan (1970-2008) China (2011-2040) Developed and China (1980-2010) Japan (1955-2008) diversified Germany (1946-20
Slide 9: Many large Chinese provinces are just beginning to climb the steel intensity curve
Many large Chinese provinces are just beginning to climb the steel intensity curve Chinese regional steel intensity Steel use per capita 2009 (kg) Beijing 18m Shandong Shanghai 95m 19m Henan 100m Guangdong 96m Sichuan 89m Guizhou 41m Bubble size reflects population of each of the 31 Chinese province
Slide 10: Options to supply additional tonnes are increasingly challenging
Options to supply additional tonnes are increasingly challenging Global iron ore supply/export additions per year •An average of 85 Mt of global supply were (Mt/a) added each year between 2007 and 2010, Required to satisfy down from about 100 Mt each year over the demand growth previous 4 years •Ove
Slide 11: The pathway to 333 Mt/a capacity with options for further growth
The pathway to 333 Mt/a capacity with options for further growth Pilbara system capacity (Mt/a) Options to •Most components to deliver 283 Mt/a achieve 433 Mt/a have been approved and work is underway •Studies for 333 Mt/a are well progressed •Further growth options to 433 Mt/a are very clear, with
Slide 12: On time and on budget in Australian dollars although exposed to foreign exchange volatility
On time and on budget in Australian dollars although exposed to foreign exchange volatility Growth capital by year - % approved (Rio Tinto share A$ million) 4% 61% 38% 0% 97% 0% Source: Rio Tinto 12
Slide 13: Focused cost management is a key factor to strong financial performance
Focused cost management is a key factor to strong financial performance Pilbara cash operating unit cost * (2006 = 100) * Includes all operating costs, excluding royalties or freight costs; adjusted for impacts of Australian CPI but includes “Pilbara inflation”. 13
Slide 14: Huge scope for further global growth
Huge scope for further global growth Global Iron Ore system capacity (Mt/a, 100% basis) •Clear pathway for 454 Mt capacity in the Pilbara, IOC and Simandou from 2015 •More than 650 Mt potential in the Pilbara, IOC and Simandou •Orissa provides an entry point into the Indian market 14
Slide 15: Meeting the demands of an increasing global workforce
Meeting the demands of an increasing global workforce •Increase in global workforce to 2015 of about 10,000 •Workforce is changing – Cultural and gender diversity – New demands of a new generation •Leading recruitment and training in a very competitive environment – Leaders in industry safety – Glob
Slide 16: Industry leading advantages in technology and innovation
Industry leading advantages in technology and innovation Operations Centre: underpinning our Mine of the FutureTM projects in testing Mine of the FutureTM programme Autonomous Haulage Autonomous Drilling “Smart” Explosives Truck Autonomous Trains AHS Trial Pit High Precision GPS Machine Supervision
Slide 17: Summary
Summary • Safety is our core business value • Continuing strong cost management and earnings performance • Overcoming first quarter impacts in our operation • Strong urbanisation and industrialisation of emerging economies support demand growth • Delivering Australia’s largest integrated mining proj
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