Rio Tinto Plc · LSE:RIO
Rio Tinto — Standard Chartered Earth's Resources Conference 2012
16 slides from Rio Tinto's conference presentation, Jun 21, 2012
Slide 1: ASX cover letter for conference presentation
Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia Postal Address: GPO Box 384D Melbourne 3001 Australia T +61 (0) 3 9283 3333 F +61 (0) 3 9283 3707 For personal use only ASX Market Announcements Australian Securities Exchange SYDNEY NSW 2000 21 June 2012 Dear Sir, Attached is a presentat
Slide 2: Kennecott Utah Copper
1 For personal use only Kennecott Utah Copper Andrew Harding Chief executive, Copper June 2012 ©2012, Rio Tinto, All rights reserved
Slide 3: Cautionary statement
21 June 2012 | 2 Cautionary statement For personal use only 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 c
Slide 4: Near-term volatility is likely to persist
21 June 2012 | 3 Near-term volatility is likely to persist For personal use only Commodity price & mining equity indices Greek and Spanish Govt. borrowing costs Daily price index (1 January 2010=100) 10-year bond yield (%) 140 8 45 Spain [LHS] 130 7 40 Greece [RHS] 120 35 6 110 30 100 5 25 90 4 20 8
Slide 5: Tier one assets deliver reliable cash flows and superior performance despite macro volatility
21 June 2012 | 4 Tier one assets deliver reliable cash flows and superior performance despite macro volatility For personal use only Cash flows from operations EBITDA margin by product US$ billions 2011 calendar year 80% Rio Tinto 25 70% Peer group range 60% 20 Dividends from EAUs Cash flows from 50
Slide 6: Long-term copper outlook remains positive
21 June 2012 | 5 Long-term copper outlook remains positive For personal use only Demand has plenty of growth potential Copper supply-demand (Mt) Per capita refined copper consumption (kg) Likely growth scenarios Cu kg/pp Germany USA China Japan India 30 Demand scenarios 5% 18 Supply scenarios 16 Pro
Slide 7: Oyu Tolgoi: 85% complete, first commercial production by 2013
21 June 2012 | 6 Oyu Tolgoi: 85% complete, first commercial production by 2013 For personal use only June 2009 August 2011 June 2012 ©2012, Rio Tinto, All rights reserved
Slide 8: Oyu Tolgoi: a world class asset
21 June 2012 | 7 Oyu Tolgoi: a world class asset For personal use only • First tier one copper mine developed in the last 10 years • A top five copper producer and major Large gold producer • Average annual production of 425kt of copper and460koz of gold • 3.1bt resource and 1.4bt reserve • Potentia
Slide 9: Phased development for a world class asset
21 June 2012 | 8 Phased development for a world class asset For personal use only Phase 1 • Open pit development • 100,000 tonne per day concentrator • Preliminary development of UG mine Phase 2 • Complete underground development • Mill expansion • Power station ©2012, Rio Tinto, All rights reserved
Slide 10: Ivanhoe Mines: majority, 51% ownership of Ivanhoe secured
21 June 2012 | 9 Ivanhoe Mines: majority, 51% ownership of Ivanhoe secured For personal use only Equity financing • Subscription price of US$7.00, CAD$7.17 per share US$1.8 Billion • Rio Tinto standby commitment for the rights offering Bridge loan • Ensures Oyu Tolgoi development remains on track •
Slide 11: Kennecott: studies to increase Bingham Canyon life of mine are advancing
21 June 2012 | 10 Kennecott: studies to increase Bingham Canyon life of mine are advancing For personal use only • Push back south wall by 7%, deepen pit 8% • Underground exploration decline underway • Tunnel boring system trial • Upgrades to flotation circuit • Copper NuWave™ technology trial • 275
Slide 12: Kennecott North Rim Skarn, pathway to underground
21 June 2012 | 11 Kennecott North Rim Skarn, pathway to underground For personal use only First step is near term development North Rim Skarn of North Rim Skarn* − 20 million tonnes mineral resource at 3.6% Cu − 1.0 million ounces of contained gold − $165 million approved for pre-feasibility studies
Slide 13: La Granja potential for 500ktpa Cu for 40+ years
21 June 2012 12 | La Granja potential for 500ktpa Cu for 40+ years – 100% RT owned – Substantial additional mineral inventory identified For personal use only – Part of broader porphyry district – Significant potential – Multiple investment decision points enables effective risk management – Starter
Slide 14: Resolution first production +2021, potential 600ktpa
21 June 2012 | 13 Resolution first production +2021,potential 600ktpa For personal use only – High quality resource – 1.47% copper with significant molybdenum Shaft 9 – Top of resource about 1.5km deep, with Shaft 10 production level 2km deep – Land exchange bill approved in US House of Representati
Slide 15: Grasberg and Escondida: continued investment in our assets
21 June 2012 | 14 Grasberg and Escondida: continued investment in our assets For personal use only Escondida Grasberg – Organic Growth 1 Project – Grasberg Block Cave – Oxide Leach Area Project – Deep Mill Level Zone (DMLZ) – Ore access, bioleach and de-bottlenecking – 40% of total production 2021 ©
Slide 16: Leveraging our competitive advantage
21 June 2012 | 15 Leveraging our competitive advantage Tunnel boring system For personal use only – Commissioning at NPM in progress – Trials to commence in H2 2012 – Potential to significantly reduce UG Construction time Copper NuWave™ recovery innovation – Pilot plant in construction at Kennecott
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