Rio Tinto Plc · LSE:RIO
Rio Tinto — Citigroup exploration conference 2016
15 slides from Rio Tinto's conference presentation, Jun 27, 2016
Slide 1: Rio Tinto Exploration
27 June 2016 Citigroup exploration conference Rio Tinto Exploration Stephen McIntosh, Group Executive Growth & Innovation
Slide 2: Cautionary statement
Cautionary statement 2 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. In this presentation all figures are US dollars unless stated otherwise
Slide 3: Safety is fundamental
Safety is fundamental 3 Delivering discoveries safely Exploration All Injury Frequency Rate (AIFR) *Per 200,000 hours worked to May 2016 • Relentless safety focus – All Injury 2.5 YTD 2016 Frequency Rate lowest on record 0 LTI & 1 MTCs AIFR 0.1 2.0 • Fatality prevention a key focus 1.5 1.0 0.5 0.0 D
Slide 4: Rio Tinto Exploration overview
Rio Tinto Exploration overview 4 Consistent corporate commitment, delivering value • Successful exploration track record spanning 70 years • Continued focus on delivering investible Tier 1 resource options to the Group • Global reach across multiple commodities • Renewed greenfield focus • Applying
Slide 5: Global exploration spend and historic discovery rate
Global exploration spend and historic discovery rate 5 Funding sharply down & new greenfield discoveries announced remain subdued Significant* mineral discoveries (excluding bulk commodities) Western World: 1975 - 2015 (excluding FSU + Eastern Europe + China 1995 - 2015) $25 200 Number of discoverie
Slide 6: Exploration industry
Exploration industry 6 Risks and value just like other R&D sectors Universal industrial success curve Exploration process 3,000 raw ideas 1:3,000 300 ideas submitted Area Target Target Project Order of Number of ideas Selection Generation Testing of Merit Magnitude 125 small projects Discovery 9 ear
Slide 7: Rio Tinto's track record of discoveries
Rio Tinto’s track record of discoveries* 7 Unique capability to develop entry into new commodities 1947 1956 1962 1970 1982 1996 2004 2008 Lac Allard Sangaredi Tom Price Tarong (QLD) Moro de Ouro Diavik Simandou Bunder Ilmenite Bauxite Iron Ore Coal Gold Diamonds Iron Ore Diamonds 1953 1956 1964 197
Slide 8: Rio Tinto's significant discoveries 2000 to 2015
Rio Tinto’s significant discoveries* 2000 to 2015 8 A global exploration effort Saskatchewan 2012, potash Jadar 2009, borate/lithium Eagle 2004, nickel** Resolution Bunder, 2002, copper 2008, diamonds Simandou 2004, iron ore Sulawesi 2008, nickel laterite*** Aluminium Mutamba La Granja Yandi Braid C
Slide 9: Rio Tinto Exploration's regional structure
Rio Tinto Exploration’s regional structure 9 Multi-commodity teams and cross-region portfolio prioritisation Head of Exploration Moscow London Vancouver Ulaan Bataar Almaty Salt Lake City Beijing Americas Africa-Eurasia Australasia Vientiane Bangalore Lima Brasilia Brisbane Santiago Johannesburg Per
Slide 10: Rio Tinto Exploration – where we operate
Rio Tinto Exploration – where we operate 10 Exploring for 8 different commodities across 17 countries Expenditure by regions - 2015 Non- OECD 32% OECD + Peru 68% Expenditure by commodity - 2015 R&D Bauxite 6% 9% Energy 9% D&M 2% Iron Ore 8% Copper 66% Current Operations Aluminum Copper & Diamonds En
Slide 11: Rio Tinto Exploration – partnering
Rio Tinto Exploration – partnering 11 Working collaboratively across the industry delivers additional options Current Operations Aluminum Copper & Diamonds Energy & Minerals Iron Ore Greenfield projects Brownfield projects ©2016, Rio Tinto, All Rights Reserved
Slide 12: Rio Tinto Exploration - Jadar discovery
Rio Tinto Exploration - Jadar discovery 12 Jadar is a world class lithium resource Exploration team Large scale semi established in Serbia continuous pilot plant tested OoM completed; Jadar Basin JORC compliant resource 3D seismic first visited estimation completed studies Discovery by Jadarite reco
Slide 13: Tier 1 copper resources
Tier 1 copper resources 13 Difficult to find, slow to develop Tier 1 copper discoveries • One Tier 1 copper greenfield discovery is made on 1. Pebble East 5.0 average every 4 years 2. Rosario West Cu price US$/lb 3. Kamoa Greenfield 4. Los Sulfatos 4.0 • A greater proportion of future discoveries wi
Slide 14: Improving discovery rates
Improving discovery rates 14 Combination of old & new technologies and effective data integration yielding knowledge New Technologies Traditional Methods Data Integration and Concepts Mapping Resistate Indicator Very large scale Minerals & Greenrocks compilation of government, Sampling open file and
Slide 15: Conclusions
Conclusions 15 Producing a pipeline of value accretive growth options to deliver future returns • Strong track record of exploration success • Continued strategic commitment to exploration • Strong in house expertise working across multiple commodities and geographies. • Collaboration across the ind