Rio Tinto Plc · LSE:RIO
Rio Tinto — Singapore Iron Ore Week 2016
11 slides from Rio Tinto's conference presentation, May 19, 2016
Slide 1: The Pilbara Blend
The Pilbara Blend Bold Baatar, managing director, Iron Ore Sales & Marketing and Marine Singapore Iron Ore Week 19 May 2016 First Iron ore shipment from Dampier August 1966
Slide 2: Cautionary statement
2 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document contains certain forward-looki
Slide 3: Weakness in China and developed markets impacted ore demand in 2015
The market Our Pilbara business The Pilbara Blend 3 Weakness in China and developed markets impacted ore demand in 2015 China’s net steel exports stable at ~100Mt/a Developed market weakness impacted ex-China Million tonnes annualised Million tonnes annualised 1,000 China steel consumption China ste
Slide 4: High-cost iron ore supply continues to exit the market
The market Our Pilbara business The Pilbara Blend 4 High-cost iron ore supply continues to exit the market Iron ore market balance • There was ~110Mt of additional low cost ore Million tonnes 1,900 supply added to the market in 2015, 1,850 displacing higher cost ores 1,800 110 -95 • We expect new su
Slide 5: China's steel mill profit margins have improved considerably this year, stimulating production
The market Our Pilbara business The Pilbara Blend 5 China’s steel mill profit margins have improved considerably this year, stimulating production China steel mill profit margins China’s crude steel production breakdown RMB/tonne Million tonnes annualised 800 China steel consumption China steel net
Slide 6: The Pilbara - a fully integrated system…
The market Our Pilbara business The Pilbara Blend 6 The Pilbara - a fully integrated system… Leading edge technology ~30TB analysed by the OC per month 1 Drill & Blast 2 Load & Haul 3 Process 4 Rail 5 Ship > 400 kilometres of > 12,000 kilometres ~1 billion tonnes > 15,000 kilometres > 300 million to
Slide 7: Blending consistently reduces variability
The market Our Pilbara business The Pilbara Blend 7 Blending consistently reduces variability Mines Port Terminals Products Stockpile stacking and reclaiming
Slide 8: World class analysis and sampling
The market Our Pilbara business The Pilbara Blend 8 World class analysis and sampling 2015 product quality variability from mean • We ensure our customers get the Percentage Phosphorus Silica Alumina products we have promised • Cape Lambert B has the world’s largest fully automated iron ore port lab
Slide 9: Pilbara Blend Fines is the industry reference iron ore
The market Our Pilbara business The Pilbara Blend 9 Pilbara Blend Fines is the industry reference iron ore Reported spot transactions 10 • Spot liquidity is fundamental to support price formation Delta to Platts 62% ($/dmt) 5 • The 62% Fe segment is the most 0 liquid segment in the spot market -5 •
Slide 10: Lump is an important value driver
The market Our Pilbara business The Pilbara Blend 10 Lump is an important value driver Jan-Apr 2016 iron ore price range US$/dmt CFR • Premium lump products remain in 100 scarce supply 80 • The YTD Platts lump premium has 60 Ave: $51 Ave: $59 averaged ~$8/dmt above the 62% 40 Fe index 20 0 • Lump de
Slide 11: Summary of the value of Pilbara Blend
The market Our Pilbara business The Pilbara Blend 11 Summary of the value of Pilbara Blend 62% Fe segment is most liquid reference point with Credibility Pilbara Blend Fines as the market’s leading brand Integrated planning and blending sustains class Consistency leading quality control for our prod