Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (September 2005)
25 slides from Rio Tinto's corporate update, Sep 26, 2005
Slide 1: Rio Tinto ASX announcement cover letter
RIO TINTO External Affairs Telephone: #61 3 9283 3360 Facsimile: +61 3 9283 3216 26 September 2005 Company Announcements Office Australian Stock Exchange Limited SYDNEY NSW 2000 Dear Sir, The attached presentation was given by Mr Bill Champion, President & CEO - Kennecott Utah Copper on 23 September
Slide 2: Financial Community Visit - Kennecott Utah Copper
Financial Community Visit September 2005 Kennecott Utah Copper Bill Champion President and CEO
Slide 3: Resource Stewardship and Governance
Resource Stewardship » Pollution Preventian ® Product Stewardship » Shareholder Return * Economic Contribution GOVERNANCE * Customer Fogus +: Management and Structures «Business Ethics. *involvement in Policy and Lawmaking * Human Health and Safety ® Stakeholder Engagement * Transparency * Werking T
Slide 4: Safety: a model for business improvement
Safety: a model for business improvement 14> 124 1.07 08+ LTIFR 0.6 + 04+ 02+ 2000 2001 2002 2003 2004 2005 YTD
Slide 5: Environmental legacies: fully provided
Environmental legacies: fully provided a ys 5 Agreements Sulfate plume Acid plume - 2005?
Slide 6: Operational Context
Operational Context Mining plan flexed to take advantage of moly market Investment in moly plant expansion in 2005 Higher margins with increasing costs 2005 Smelter shutdown completed Pit wall pushback under way
Slide 7: Challenges
Challenges * Variability * Costs « Resource development
Slide 8: We have increased moly production...
We have increased moly production... > o 1, Asad o ‘000 tonnes N o 1 Q2 Q3 04 Qi 02 02 02 02 03 Q2 Q3 04 QQ MoS2 concentrate ===Grade Percentage Q2 Q3 04 Ql 03 03 03 04 04 04 04 05
Slide 9: ...with mining flexibility and capital.
...with mining flexibility and capital. ¢ Mining sequence * Capex $13m — Capacity 25mibs — 35mibs — Improved recoveries
Slide 10: Moly marketing and roasting contracts
Moly marketing and roasting contracts ¢ Supplying metallurgical market for specialty steels « Approximately half sold under contract and half spot « Pricing as quoted in specialist industry publications * Roasting requirements covered by contract * Markets mostly Europe, but also North America
Slide 11: Copper grades: variable but declining over time
Copper grades: variable but declining over time ‘000 tonnes 100 90 5 80 70 4 60 5 50 4 40 30 4 Q1 Q2 G3 24 Q1 Q2 Q3 O4 Qi Q2 3 Q4 O1 Q2 Q3 O4 Qi QZ 01 04 Of Of 02 O02 O2 02 03 03 03 03 04 04 04 04 05 05 Cu produced == Grade Percent
Slide 12: Gold grades: recovered from 2003
Gold grades: recovered from 2003 ‘000 ounces 200 ---~- 180 + 160 5 140 120 100 80 60 40 20 Qi 01 Q2 Q3 Q4 Qi Q2 01 01 01 02 02 Q3 Q4 Qi Q2 Q3 Q4 QI 02 02 03 03 03 03 04 Au produced === Grade + 0.60 + 0.50 + 0.40 0.30 0.20 0.10 Q2 Q3 Q4 Qi Q2 04 04 04 05 05 0.00 grammesi/tonne
Slide 13: Concentrate smelted
Concentrate smelted 350 7~ 300 + 250 + ‘000 tonnes | IZ Q1 01 Q2 01 Q3 04 ai 01 01 02 02 02 Q2 03 Q4 Qi 02 03 (03 03 03 Q2 03 04 Q 04 Q2 93 Q 04 04 04 a1 05 Q2 05
Slide 14: Smelter shutdowns
Smelter shutdowns
Slide 15: Arsenic, bismuth, lead, selenium emissions
Arsenic 0.150 0.120 9.090 0.080 9.030 4 9.900 Bismuth $5 5 B58 8 8 8 & 655 55 25 8 5 5 8 Lead Selenium 0.800 0200 6.600 0.160 0.120 { ul 0.400 oso + 0200 4 0.040 f i 6.000 aio 0.000 2 2 8 #2 8 8 8 8 8 g g 8 FA Piiiiiitiia? efitifiipirr 33 3 $3228 8 3 $85 5 § § § 5 5 5 8 SS
Slide 16: Net cash margins are boosted by co-product credits
Net cash margins are boosted by co-product credits | Copper price ee” Net cash costs oO Cents per pound 2001 2002 2003 2004 2005
Slide 17: We continue to improve the business
We continue to improve the business * Six sigma — Costs and variability * Kennecott Operations Improvement Systems — Production variability * Marketing — Margins * Maintenance — Costs — Hydrocarbon management ¢ Labor agreement — Productivity
Slide 18: Example of business improvement: hydrocarbon management
Example of business improvement: hydrocarbon management Goal How We Will Achieve Value Creation ¢Improved reliability of our HME fleet Avoiding catastrophic failures —Break-down prevention 2) *Extended component lives without equipment degradation Advanced contamination control for all hydrocarbons
Slide 19: Significant benefits from extending component life
Significant benefits from extending component life Differential Lives on Fleet A (000 Operating Hrs) Details of Trial —Differential lasted 3x the standard time-based change-out point —No deterioration in equipment performance —Components did not fail, were taken out to review condition (condition fo
Slide 20: Improvements justify staged capital investment
Improvements justify staged capital investment. East one pushback $m_ | Timing Trucks and support equipment 25 | 2005/6 Mine facilities 30 =| 2005/6 Crusher relocation 63 | 2008/10 Pebble crushing 44 |2005/6 Tailings expansion 35 | 2005+
Slide 21: Pebble crushing location
Pees al) location
Slide 22: Pebble crushing
Pebble crushing
Slide 23: Past resources...
RIO TINTO aie, ae: Past resources... Pre-mine Topography A04 Ultimate Pit 0.70% Cu Grade Shell View looking North
Slide 24: Skarn mineralization and 0.70% Cu grade shell
RIO TINTO Fortuna Skarn 36 MT Cu @ 2.10% Au @ 0.039 opt 0.70% Cu Grade Shell North Rim Skarn ~~ A 73 M tons Cu @ 1.86% Jordan Limestone Au @ 0.025 opt Jordan Limestone
Slide 25: Summary — KUC has sound fundamentals
Summary — KUC has sound fundamentals * Good ore body — significant by-products * Substantial reserves « Modern plant * Unique location — unique opportunities * Stable political and social environment * Committed workforce * Carefully staged future investments