Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (August 2023)
98 slides from Rio Tinto's corporate update, Aug 1, 2023
Slide 1: Notice to ASX: Investor site visit to Oyu Tolgoi copper mine
Notice to ASX Investor site visit to Oyu Tolgoi copper mine, Mongolia 11 July 2023 Rio Tinto is hosting an investor site visit to the Oyu Tolgoi copper mine in Mongolia, set to become the world’s fourth largest copper mine by 2030. The presentation is not considered to contain any new material finan
Slide 2: Notice to ASX: Contacts
Notice to ASX 2 / 2 Contacts Please direct all enquiries to media.enquiries@riotinto.com Media Relations, United Kingdom Matthew Klar M +44 7796 630 637 David Outhwaite M +44 7787 597 493 Media Relations, Australia Matt Chambers M +61 433 525 739 Jesse Riseborough M +61 436 653 412 Alyesha Anderson
Slide 3: Financial Community Visit to Oyu Tolgoi
Financial Community Visit to Oyu Tolgoi
Slide 4: Forward-looking statements
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. Unless otherwise stated the information in the presentation is based on the Oyu Tolgoi Feasibi
Slide 5: Production Targets
Production Targets The 500kpta copper and 350kozpa gold target (stated as recoverable metal) for the Oyu Tolgoi underground and open pit mines for the years 2028 to 2036 referenced in slides 10 and 50 is underpinned 13% by Proved Ore Reserves and 87% by Probable Ore Reserves. This production target
Slide 6: Agenda
@2023, Rio Tinto, All Rights Reserved 4 Agenda Ulaanbaatar standard time Topic Presenter SESSION 1: 8:00 – 8:05 Safety Share 8:05 – 8:25 Rio Tinto Copper overview Bold Baatar – Chief Executive, Copper / Simandou 8:25 – 8:40 Mongolia overview Amarjargal Khenchbish - Country Director Mongolia 8:40 – 9
Slide 7: Presenters
@2023, Rio Tinto, All Rights Reserved 5 Presenters Amarjargal Khenchbish Country Director Mongolia Deirdré Lingenfelder Chief Executive Officer Oyu Tolgoi Sugar Gonchigjantsan General Manager, Communities Philip Abraham General Manager, Health, Safety, Environment and Security Andrew Wilson Operatio
Slide 8: Others in room
@2023, Rio Tinto, All Rights Reserved 6 Others in room Roger McNeill General Manager, Procurement Amarbayasgalan Dashnyam Chief Counsel Lkhagva Erdene General Manager, External Affairs and Communications Melissa Shanjengange General Manager, People and Organisation Peter Butler Deputy Country Direct
Slide 9: Rio Tinto Copper Overview
Rio Tinto Copper Overview Bold Baatar – Chief Executive, Copper / Simandou @2023, Rio Tinto, All Rights Reserved 7
Slide 10: Copper Group highlights
©2023, Rio Tinto, All Rights Reserved Copper Group highlights Rio Tinto expected to account for ~25% of growth volumes in global copper supply in the next 5 years1 On-track for 1Mt of mined copper production within 5 years, with more than 80% of the capital spent Oyu Tolgoi underground ramp up on tr
Slide 11: Rio Tinto expected to account for ~25% of growth volumes in global copper supply
Rio Tinto expected to account for ~25% of growth volumes in global copper supply in the next 5 years1 ©2023, Rio Tinto, All Rights Reserved 1. Source: Rio Tinto, CRU, Wood Mackenzie (WM) 2. Supply gap range for WM committed supply (Q1 2023 data) and RT demand forecasts 0 5 10 15 20 25 30 35 40 45 50
Slide 12: On-track for 1Mt of mined copper production within 5 years
©2023, Rio Tinto, All Rights Reserved On-track for 1Mt of mined copper production within 5 years, with more than 80% of the growth capital already spent 10 • Oyu Tolgoi underground ramp-up on track to deliver over 500ktpa2 as a world class Tier 1 asset • Oyu Tolgoi has multiple expansion options • W
Slide 13: An exciting future for Rio Tinto in the US
©2023, Rio Tinto, All Rights Reserved 11 An exciting future for Rio Tinto in the US Arizona and New Mexico exploration RT Cu Operation • US demand to double over next decade from 2Mt to 4Mt, with growing import dependence1 • Kennecott is 1 of 2 operating smelters and potential for life of mine beyon
Slide 14: Nuton promises to deliver exceptional recovery
NutonTM promises to deliver exceptional recovery >80% recovery from primary copper sulphides, compared to 25-35% from traditional heap leach Actual test results have supported our modelling work1 Nuton delivers leading ESG performance Lower CO2 emissions, TMM2 and friendly ore to 99% cathode process
Slide 15: Slide 15
Slide 16: Mongolia Overview
Mongolia Overview Amarjargal Khenchbish – Country Director Mongolia @2023, Rio Tinto, All Rights Reserved 14
Slide 17: Mongolia highlights
@2023, Rio Tinto, All Rights Reserved 15 Mongolia highlights Young democratic country with highly educated population Long history of balancing geopolitical challenges Mining is important for the economy Deepening our partnership Rio Tinto beyond Oyu Tolgoi: exploration and IT delivery centre
Slide 18: Mongolia key facts and locations
Oyu Tolgoi Erdenet Approximately 550km from UlaanbaatarUmnugovi province Population: 72,329 Area: 165,380.47 sq.km Population: 97,814 Area: 208 sq.km Distance: Approximately 380km from Ulaanbaatar Darkhan city Population: 83,883 Area: 103 sq.km Ulaanbaatar – Capital city Population: 1.69 million Are
Slide 19: Young democracy with highly educated population
@2023, Rio Tinto, All Rights Reserved 17 Young democracy with highly educated population 3.5 million population 0-19 20-39 40+ 684k 645k 366k 653k 457k 650k 1.3 million 1.3 million 0.8 million Male Female Over 75% of the population is young 5% 43%52% Uneducated Secondary Tertiary 52% of the populati
Slide 20: The only multi-party democracy in the region
@2023, Rio Tinto, All Rights Reserved 18 The only multi-party democracy in the region • The only multi-party parliamentary democracy in the Eurasia region • Prime Minister is appointed by the parliament and is head of the executive branch • Mongolian People’s Party (MPP) and Democratic Party (DP) ar
Slide 21: Mining sector drives GDP growth
Mining 28% Services 19% Agriculture 12% Manufacturing 9% Trade 12% Others 21% 0.8 1 5.7 5.2 3.2 2.0 1.4 1.5 2.1 2.7 3.1 2.6 1.3 3.4 -3 0 3 6 -10% 0% 10% 20% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FDI in billion USD (right axis) OT onshore spending in billion USD (right
Slide 22: Copper is a significant contributor to exports
- 2,000 4,000 6,000 8,000 10,000 12,000 Coal Copper Iron Ore Gold Other mining Non-Mining 2022 2021 2020 Mongolian export revenue by product • The mining sector accounts for 93% of exports • Coal is the largest export product amounting to 52% of Mongolia’s exports • Copper is the second largest acco
Slide 23: Oyu Tolgoi's impact in Mongolia
Oyu Tolgoi’s impact in Mongolia @2023, Rio Tinto, All Rights Reserved 21 The impact of taxes, fees and payments made by Oyu Tolgoi to the Mongolian GDP ↑2.5% Impact of taxes, fees and payments made by Oyu Tolgoi to Mongolian GDP Source: Mongolian National Statistics Office, Oyu Tolgoi LLC, National
Slide 24: Mongolia is adept at balancing major powers
Mongolia-China-Russia trilateral meeting in September 2022 President Biden visit to Mongolia as a Vice President on 22 August 2011 Prime Minister Oyun-Erdene’s visit to China on 6 February 2022 @2023, Rio Tinto, All Rights Reserved 22 Mongolia is adept at balancing major powers Mongolia guarantees i
Slide 25: Strong partnership with Government of Mongolia
March 2023 commencement underground production after the ‘relationship reset’ in 2022 Government Working Group and Rio Tinto in discussion on 27 October 2021 @2023, Rio Tinto, All Rights Reserved 23 Strong partnership with Government of Mongolia Oyu Tolgoi foundational agreements: Partnership with t
Slide 26: Rio Tinto's presence in Mongolia beyond Oyu Tolgoi
@2023, Rio Tinto, All Rights Reserved 24 Rio Tinto's presence in Mongolia beyond Oyu Tolgoi Mongolia Business Service Centre Information, technology and business services provided to Rio Tinto's worldwide operations Data analytics Data quality services Data productivity metrics Payroll Project servi
Slide 27: Unlocking opportunities through exploration
@2023, Rio Tinto, All Rights Reserved 25 Unlocking opportunities through exploration Opportunity • Mongolia’s vast mineral wealth predominantly untouched by modern exploration and extraction methods • 2,623 mining and exploration licenses held by 1,683 companies with 80% owned by national companies
Slide 28: Impactful social investments
@2023, Rio Tinto, All Rights Reserved 26 Impactful social investments Support locally driven economic development and strengthen business resilience Ulaanbaatar public spaces programme Environment Education Cultural heritageJobs, growth & innovation Key pillar of the Mongolia country strategy to bui
Slide 29: Oyu Tolgoi Overview
Oyu Tolgoi Overview Deirdré Lingenfelder – Chief Executive Officer, Oyu Tolgoi @2023, Rio Tinto, All Rights Reserved 27
Slide 30: Oyu Tolgoi highlights
@2023, Rio Tinto, All Rights Reserved Oyu Tolgoi highlights World-leading, safe, sustainable and profitable copper business Entering an exciting phase as the underground ramps up A pipeline of options People, ore bodies and partnerships are our key competitive advantages Managing key risks and oppor
Slide 31: Copper production growing to average 500ktpa from 2028 to 2036
@2023, Rio Tinto, All Rights Reserved 29 Entering an exciting phase with copper production growing to average 500ktpa from 2028 to 2036 Copper in Concentrates (LHS)/ Head Grade (RHS)1 1See supporting references for the 2023-2027 and 2028-2036 production profiles on slide 3 2Source: Wood Mackenzie Lt
Slide 32: Strategic production planning underpins the pipeline
Strategic production planning underpins the pipeline: Resource optimisation Assess product strategy Inform study options Sequence optimisation Memorandum of Understanding Completed Development / Ramp Up Concept & Order of Magnitude Pre-feasibility & Feasibility Tailings Cell 2 Oyut Phase 7 Undergrou
Slide 33: Our people and culture
@2023, Rio Tinto, All Rights Reserved 31 Our people and culture Technical expertise Block caving Geotechnical knowledge Mega-project development and execution 23% female employees CARE COURAGE CURIOSITY AIFR = 0.203 One of the safest operations in Rio Tinto and the mining industry Targeting 50% fema
Slide 34: Long-life, high-grade ore bodies
@2023, Rio Tinto, All Rights Reserved 32 Long-life, high-grade ore bodies1 Heruga Inferred Resources: 1,609 Mt @ 0.41% Copper, 0.39g/t Gold Oyut Open Pit Proved & Probable Ore Reserves: 702Mt @ 0.44% Copper, 0.29 g/t Gold Measured & Indicated Resources: 109Mt @ 0.34% Copper, 0.31 g/t Gold Inferred R
Slide 35: Partnering for prosperity
@2023, Rio Tinto, All Rights Reserved 33 Partnering for prosperity • 500+ national suppliers and ~$15 billion spent in-country since 2010 • Made in Mongolia campaign for local suppliers • Investment in long term Mongolian development – South Gobi province development fund – $50 million Oyu Tolgoi Kh
Slide 36: Risks that we are actively managing
Securing a reliable power source and achieving net-zero carbon emissions by 2050 Technical risks associated with management of mega block-caves @2023, Rio Tinto, All Rights Reserved 34 Risks that we are actively managing… Technical skills shortage Power & decarbonisation Supply chainDelivering under
Slide 37: Opportunities we are seizing
@2023, Rio Tinto, All Rights Reserved 35 … and opportunities we are seizing Positive and impactful changes with our stakeholders Minimising our environmental impact Mongolia has a young, well-educated population Partnering with our communities to catalyze development of Khanbogd Sustainable developm
Slide 38: Oyu Tolgoi video
@2023, Rio Tinto, All Rights Reserved 36 Oyu Tolgoi video
Slide 39: Q&A session
Q&A session @2023, Rio Tinto, All Rights Reserved 37
Slide 40: Rio Tinto
RioTinto
Slide 41: Financial Community Visit to Oyu Tolgoi Session 2
Financial Community Visit to Oyu Tolgoi Session 2
Slide 42: ESG
ESG Sugar Gonchigjantsan – GM, Communities Philip Abraham – GM, Health, Safety, Environment and Security @2023, Rio Tinto, All Rights Reserved 40
Slide 43: ESG highlights
@2023, Rio Tinto, All Rights Reserved 41 ESG highlights Building lasting partnerships with communities Industry leading water efficiency Strong assurance and verification in place for our tailings facilities Supporting return of native species Targets to reduce Scope 1 and 2 emissions by 50% by 2030
Slide 44: Partnering with our local communities
@2023, Rio Tinto, All Rights Reserved 42 Partnering with our local communities for long term sustainable development Social risk and impact mitigation Strong social knowledge base established Focus on cultural heritage, resettlement, herder livelihood, water, biodiversity, human rights and community
Slide 45: Best in class water efficiency
@2023, Rio Tinto, All Rights Reserved 43 Best in class water efficiency in a global context • Oyu Tolgoi water efficiency is in the first quartile of copper concentrate producers (Skarn benchmarking study) • Long term goal to become the most efficient water user in Rio Tinto • Water usage is less th
Slide 46: Strong assurance for our tailings facilities
• Downstream Tailings Dam currently consists of one active Tailings Cell (Cell 1) with construction of Cell 2 underway (with first discharge mid this year) • Cells are 2 km x 2 km, with Cell 1 capacity of 360 Mt, and Cell 2 capacity of 420 Mt • Dam is isolated from the surrounding environment by a p
Slide 47: Biodiversity and rehabilitation
@2023, Rio Tinto, All Rights Reserved 45 Biodiversity and rehabilitation Operating in a region with various species of rare, endangered and iconic plant species and last stronghold in the world of the Khulan home range Committed to net gain on priority biodiversity species within mine life through p
Slide 48: Supporting President's million tree programme
Supporting President’s initiative with 100 million tree programme Phase 1 2022-2025 Phase 2 2025-2029 Phase 3 2028-2030 • Reforestation • Windbreaks • Rehabilitation • R&D • Establish tree nurseries • Capability development • Improvement • Monitoring • Verification 61% Reforestation - Restoration -
Slide 49: Science & risk-based approach to our million tree programme
Science & risk-based approach to our 100 million tree programme @2023, Rio Tinto, All Rights Reserved 47 Before After Abandoned third party mine site rehabilitation project in the Selenge province
Slide 50: Targeting 50% carbon emissions reduction by 2030 and net zero by 2050
• Create optionality for power by diversifying to a range of low emission solutions • Introducing new technologies to reduce fossil fuel consumption • Enable the use of carbon credits and support the development of Mongolian carbon markets Renewable Energy Certificates Electrification 0 400 800 1200
Slide 51: Integrated operations
Integrated operations Andrew Wilson – Operations Director Otgonbayar Togtokhbayar – GM Technical & Integrated Planning @2023, Rio Tinto, All Rights Reserved 49
Slide 52: Integrated operations highlights
@2023, Rio Tinto, All Rights Reserved 50 Integrated operations highlights World class operations with diverse infrastructure A strong safety culture Growing to average of 500ktpa from 2028 to 20361 Operational efficiency comparable to autonomous operations Continued focus on operational improvement
Slide 53: Oyu Tolgoi site layout
Oyu Tolgoi site layout Site features active open pit and underground operations, with further underground development options Active mining areas • Oyut open pit • Hugo North Lift 1 (underground) @2023, Rio Tinto, All Rights Reserved 51
Slide 54: Active open pit and underground operations
@2023, Rio Tinto, All Rights Reserved 52 Oyu Tolgoi features active open pit and underground operations 2 Mining feed sources 13.1 Kms of conveyors 4 Maintenance workshops 21k Workforce 1 Heating plant 30 Ultra class trucks 4 Electric and hydraulic shovels 780 Mt of tailings capacity 3 Crushers 2 Ta
Slide 55: Underground ramp up and surface mining to deliver average 500ktpa
@2023, Rio Tinto, All Rights Reserved 53 Underground ramp up and surface mining excellence to deliver average 500ktpa1 of copper 0 100 200 300 400 500 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 P la n 20 24 P la n 20 25 P la n 20 26 P la n 20 27 P la n Av . 2 02 8- 20 36 0 100
Slide 56: Increase in mill concentrate capacity supports higher grade ore
@2023, Rio Tinto, All Rights Reserved 54 Increase in mill concentrate capacity from 2024 to 2025 supports increased volume of high grade underground ore 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 P la n 20 24 P la n 20 25 P la n 20 26 P la n 20 27 P la n 20 28 P la n Open Pit
Slide 57: Considerable improvements in processing already delivered
@2023, Rio Tinto, All Rights Reserved 55 Considerable improvements in processing already delivered SAG1 discharge grate improvement 2013 ~20Mt 2022 ~40Mt2015 2017 2019 20212014 2016 2018 2020 Trommel and screen deck optimisation Improved magnet for metal removal Grinding media quality improvement Cy
Slide 58: Significant benefits achieved despite ore hardness
@2023, Rio Tinto, All Rights Reserved 56 Significant benefits achieved despite ore hardness Mill performance (tonnes per operating hour) 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 20 26 20 27 20 28 Ore hardness measure (SAG1 power index) (%, Index: 2021 = 1.00) 202
Slide 59: Accessing ore from deepest open pit
20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 P la n 20 24 P la n 20 25 P la n 20 26 P la n 20 27 P la n 20 28 P la n @2023, Rio Tinto, All Rights Reserved 57 Accessing ore from deepest open pit in the operation’s history West - WRD South - WRD Clay Clay SOM N or th - W R D LG SP
Slide 60: Among the most productive operations
@2023, Rio Tinto, All Rights Reserved 58 Ranks among the most productive operations, including those using autonomous equipment Haul truck effective utilisation (%, Index: 2021 = 1.00) 1.00 1.10 1.11 2021 2022 2023 11% Haul truck effective utilisation benchmarking1 Lowest Average autonomous Oyu Tolg
Slide 61: Further opportunity exists to optimise our operations
Surface Mining @2023, Rio Tinto, All Rights Reserved 59 Further opportunity exists to optimise our operations Mine & Haul Pit design & optimisation (Pit phase design, geotechnical management) Equipment reliability (Unscheduled loss, mean time between failure, availability) Equipment productivity (Mi
Slide 62: Continue to invest for a long-term copper business
@2023, Rio Tinto, All Rights Reserved 60 Continue to invest for a long-term, world-leading copper business Increasing use of technology and digital frameworks to drive value across the system Leveraging technology and continuously learning A fully integrated system, managed to optimise value Complet
Slide 63: Underground infrastructure – project update
Underground infrastructure – project update Damian Rogers – Project Director @2023, Rio Tinto, All Rights Reserved 61
Slide 64: Underground project highlights
@2023, Rio Tinto, All Rights Reserved Underground project highlights Infrastructure delivery for ramp up on target Capital cost unchanged from $7.06 billion estimate Shaft 3 & 4 commissioning expected in H2 2024 Conveyor to surface expected in H2 2024 Concentrator conversion expected in H1 2025 62
Slide 65: Underground project overview
@2023, Rio Tinto, All Rights Reserved 63 Underground project overview Status • Delivered all major infrastructure to support the commencement of sustainable production in early 2023 • On track to safely deliver the remaining infrastructure inline with ramp up requirements Key remaining infrastructur
Slide 66: Infrastructure delivery for sustainable production and ramp up
@2023, Rio Tinto, All Rights Reserved 64 Infrastructure delivery for sustainable production and ramp up Project commencement 2016 2017 2018 2019 2020 2021 2022 2023 2025 Shaft 3 and 4 sinking (52% & 60% compete) Shaft 5 (ventilation) completed Commencement of sustainable production 2024 Infrastructu
Slide 67: Shafts 3 and 4
@2023, Rio Tinto, All Rights Reserved 65 Shaft 3 and 4 – expect to commission in H2 2024 Largest mine vent shafts under construction in the world (1.1km deep, 11m and 10m diameter). Shaft 4 expels 1,800m3/s of air from the mine - enough to fill a hot air balloon in less than 2 seconds Shaft 4 – 11m
Slide 68: Shaft sinking rates
@2023, Rio Tinto, All Rights Reserved 66 Sinking rates are showing safe and sustainable improvement and meeting the requirements for completion 1.23 1.17 1.39 1.49 1.41 1.49 Jan Feb March April May June (est) 1.25 1.41 1.39 1.44 1.56 1.61 Jan Feb March April May June (est) Shaft 3 (Monthly average d
Slide 69: Conveyor to Surface
@2023, Rio Tinto, All Rights Reserved 67 Conveyor to Surface (C2S) – expect to complete in H2 2024 7.8km long C2S and five transfer stations provide the additional material handling capacity to support ramp up. Works are continuing to plan, utilising the experienced management team and contractors f
Slide 70: Concentrator conversion
@2023, Rio Tinto, All Rights Reserved 68 Concentrator conversion – expect to complete in H1 2025 Conversion will allow processing of higher grade and harder underground material Major upgrade includes an additional ball mill and cyclone, rougher and column flotation banks and concentrate thickener a
Slide 71: Underground operations and block caving
Underground operations and block caving Steffan Herselman – Chief Mining Engineer Underground Mining Otgonbayar Togtokhbayar – GM Technical & Integrated Planning @2023, Rio Tinto, All Rights Reserved 69
Slide 72: Underground operations highlights
@2023, Rio Tinto, All Rights Reserved Underground operations highlights Optimised mine plan provides a resilient pathway to ramp up, reflecting COVID-19 impacts and associated delays to supporting infrastructure Building excellence in drawbell opening and cave establishment Exceeding plans across al
Slide 73: Hugo North Lift 1 block caving operation
Undergroun d Block Cave Mine Hugo Dummett Deposit Oyut Open Pit Hugo North Hugo South @2023, Rio Tinto, All Rights Reserved 71 Majority of Oyu Tolgoi’s value in Hugo North Lift 1 block caving operation 5 Shafts 1,300 m depth below surface 772 Drawbells 1488 Drawpoints 59 Extraction drives 38 Truck c
Slide 74: Underground mine video
@2023, Rio Tinto, All Rights Reserved 72 Underground mine video
Slide 75: Section view of Hugo North Lift 1 mine design
@2023, Rio Tinto, All Rights Reserved 73 Designed to maximise production while managing risk Section view of Hugo North Lift 1 mine design
Slide 76: Optimisation and improvement since 2019 in Hugo North Lift 1
@2023, Rio Tinto, All Rights Reserved 74 Significant optimisation and improvement since 2019 in Hugo North Lift 1 Orepasses MADs Faults Challenges • Many options under consideration would have eroded significant value without sufficient de-risking Responses • Changed from single large panel to multi
Slide 77: Technical studies for mine design completed
@2023, Rio Tinto, All Rights Reserved 75 Technical studies for mine design and schedule optimisation have been completed1 Key updates: • Finalised mine design for Panel 0 (“P0”) • Optimised Panels 1 and 2 (“P1”, “P2”) and corresponding development schedule based on updated mine plans and COVID-19 im
Slide 78: P1 & P2 optimised plans to mitigate COVID impacts
0 500 1,000 1,500 2,000 2,500 0 10 20 30 40 50 60 70 80 90 100 M ay -1 6 Ju n- 17 Ju n- 18 Ju n- 19 Ju n- 20 Ju n- 21 Ju n- 22 Ju n- 23 Ju n- 24 Ju n- 25 Ju n- 26 Ju n- 27 Ju n- 28 Ju n- 29 Ju n- 30 Ju n- 31 Ju n- 32 Ju n- 33 Ju n- 34 Ju n- 35 Development ore P0 ore P2N ore P2S ore P1 ore Capital de
Slide 79: Studies to extend the underground post Hugo North Lift 1
0 50,000 100,000 20 16 20 19 20 22 20 25 20 28 20 31 20 34 20 37 20 40 20 43 20 46 20 49 20 52 20 55 20 58 20 61 20 64 Dev P0 P2N P2S P1 @2023, Rio Tinto, All Rights Reserved 77 Further orebody characterisation and studies to extend the underground post Hugo North Lift 1 Hugo North Lift 2 and Hugo S
Slide 80: Underground continues to perform strongly
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 - 10 20 30 40 50 60 0 1 2 3 4 5 6 Ja n- 22 Fe b- 22 M ar -2 2 Ap r-2 2 M ay -2 2 Ju n- 22 Ju l-2 2 Au g- 22 Se p- 22 O ct -2 2 N ov -2 2 D ec -2 2 Ja n- 23 Fe b- 23 M ar -2 3 Ap r-2 3 M ay -2 3 Ju n- 23 Drawbell blasting (#) Monthly Drawbell Firings (LHS) Cumulati
Slide 81: Exceeding plans across productivity and production metrics
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 - 200 400 600 800 1,000 1,200 1,400 1,600 Ja n- 22 Fe b- 22 M ar -2 2 Ap r-2 2 M ay -2 2 Ju n- 22 Ju l-2 2 Au g- 22 Se p- 22 O ct -2 2 N ov -2 2 D ec -2 2 Ja n- 23 Fe b- 23 M ar -2 3 Ap r-2 3 M ay -2 3 Ju n- 23 Monthly development (eqm1) @2023, Rio Tinto, All Righ
Slide 82: Progress in panel construction, development and production
@2023, Rio Tinto, All Rights Reserved 80 Progress in Panel 0 construction, development and production Undercut level Extraction level 69% Of 1047 undercut rings completed 100% Of 9 slots completed 100% 3.4km of the development completed 45% Of 120 drawbells blasted 50% Of 222 drawpoints constructed
Slide 83: Extensive technology installed to manage risk
@2023, Rio Tinto, All Rights Reserved 81 Extensive technology installed to manage risk Leveraging technology 2 x Mobile Scanners 7 x Static Scanners 498 x Network Extensometers 155x Seismic Sensors Cave Tracking Systems - 5800 x markers and 432 x Beacons and Trackers 2 x InSar Lidar Stations 150 x P
Slide 84: Leveraging technology to manage risks in the underground
@2023, Rio Tinto, All Rights Reserved 82 Leveraging technology to manage risks in the underground Cave Shape May 2023 June 2023 Seismicity May 2023 June 2023 Smart Markers RSSI Activity Beacons Movement recorded Open Holes End of hole Red lines TDR Upholes Blue Lines Geology LF VA
Slide 85: Technology driving underground productivity
@2023, Rio Tinto, All Rights Reserved 83 Technology is also driving underground productivity Creating partnerships with technology and automation providers to leverage industry leading applications and platforms Data-driven cave monitoring approach, allowing large volumes of data to be assessed in n
Slide 86: Finance
Finance Dulamsuren Begzjav Chief Financial Officer, Oyu Tolgoi @2023, Rio Tinto, All Rights Reserved 84
Slide 87: Finance highlights
@2023, Rio Tinto, All Rights Reserved Finance highlights Moving to positive free cash flow Set to triple copper production Premium product on doorstep of world’s largest market Limited development capital remaining, with ~80% already invested Expect to move into the first quartile of the cost curve
Slide 88: Set to triple copper production
@2023, Rio Tinto, All Rights Reserved 86 Set to triple copper production Construction of infrastructure to support ramp up to full production on track Gold remains a valuable by-product Producing high quality concentrate attractive to Chinese smelters Metrics1,2 Unit 2022 Act 2023 - 2027 2028 - 2036
Slide 89: Limited development capital remaining
@2023, Rio Tinto, All Rights Reserved 87 Limited development capital remaining, with ~80% already invested Total capital expenditure ($m) $1.4 billion remaining out of $7.06 billion development capital as at June 2023 over 2023-2025 Average annual sustaining capital ~$0.3-0.4 billion over 2023-2033
Slide 90: Cash operating cost base
@2023, Rio Tinto, All Rights Reserved 88 Cash operating cost base Cash Operating Costs (LHS) and C1 unit costs (RHS) General Consumables 16% Employee related costs 15% External services 15% Power 14% Operating supplies 14% Royalty 10% Fuel 9% Other 7%Cash Operating Costs by Account Type (2022) Maxim
Slide 91: Power supply secured to 2030
Power supply secured to 2030 with initiatives to convert to renewables Future initiative: • Long-term Mongolian power with significant renewable energy mix • Working to develop large- scale renewable generation for Oyu Tolgoi 2022 2025+ • Electricity Purchase and Sales Agreement (EPSA) extension wit
Slide 92: Expect to move into the first quartile of the cost curve by 2030
-100 0 100 200 300 400 500 600 0 10,000 20,000 30,000 40,000 Cumulative Production (Mlb Cu) @2023, Rio Tinto, All Rights Reserved 90 Expect to move into the first quartile of the cost curve by 2030 Oyu Tolgoi (2023)1 2030 Copper Equivalent Cost Curve Copper equivalent unit cost including sustaining
Slide 93: Creating commercial value with our customer base
@2023, Rio Tinto, All Rights Reserved 91 Creating commercial value with our customer base • Significant smelting capacity expansions planned in China • Increasingly attractive concentrate quality to facilitate blending • Pricing: International market prices x international metals payables (Cu, Au, A
Slide 94: Funding profile
92 Funding profile EquityShareholder funds2 $4.2b$7.7b Project finance1 $3.9b Participants Facility A-loan A-loan Export Credit Agency Export Credit Agency Export Credit Agency Commercial banks B-loan (70%) MIGA-insured (30%) Total Commercial Loans (100%) Total Funding Requirement $1.6-1.7b (Jun 202
Slide 95: Expect to turn free cash flow positive
@2023, Rio Tinto, All Rights Reserved 93 Expect to turn free cash flow positive after significant investment Annualised basis forecast1, real terms, US$billion 2023 – 2025 (3 years) 2026 – 2029 (4 years) 2030 – 2033 (4 years) 0.5 – 0.7 - - 0.5 – 0.6 0.3 – 0.4 0.2 – 0.3 1.5 – 2.9 3.8 – 4.6 4.2 – 5.1
Slide 96: Q&A session
Q&A session @2023, Rio Tinto, All Rights Reserved 94
Slide 97: Common acronyms
©2022, Rio Tinto, All Rights Reserved 95 Common acronyms AIFR All Injury Frequency Rate GHG Greenhouse gas Opex Operating costs tCO2 e Tonne of carbon dioxide equivalent Ag Silver GM General Manager OT Oyu Tolgoi TMM Total Material Movement Au Gold GSK Gashuun Sukhait OTFS20 Oyu Tolgoi Feasibility S
Slide 98: Rio Tinto
RioTinto