Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (May 2004)
21 slides from Rio Tinto's corporate update, May 4, 2004
Slide 1: ASX cover letter for Rio Tinto Iron Ore update
RIO TINTO External Affairs Telephone: +61 3 9283 3360 Faesimile: +6] 3 9283 3216 4 May 2004 Company Announcements Office Australian Stock Exchange Limited SYDNEY NSW 2000 Dear Sir, The attached will be presented on 4 May 2004 at 5:30pm (AEST) by Mr Chris Renwick, chief executive of Rio Tinto Iron Or
Slide 2: Rio Tinto Iron Ore update: Positioning the business for the long term
RLO TINTO Rio Tinto Iron Ore update Positioning the business for the long term A May 2004 Page 1
Slide 3: Welcome and introduction agenda
RLO TINEO Chris Renwick Chief Executive Rio Tinto lron Ore A May 2004 Welcome Introduction Market update Strengthening ties with Nippon Steel and Baosteel First quarter production results Hamersley and Robe cooperation Progress on the expansion Mine development opportunities Hismelt 1OC Page 2
Slide 4: RTIO — an excellent growth business
RTIO — an excellent growth business RHO iron ore production* 1999 2000 2001 2002 2003 Post expansion i Hamersiey mi Robe. BiOC ‘cluding jornt vertueds Leveraging our key strengths creates value Largest iron ore producer in the Pilbara Full range of products Strong customer relationships Joint ventur
Slide 5: Rio Tinto Iron Ore is forging ahead in 2004
Rio Tinto Iron Ore Is forging ahead in 2004 Jaking steps to entrench REIO's strengths January 2004 : Hamersley and Robe progress Pilbara cooperation lron:ore price increases — second highest ever February 2004 eS Yandi mine expansion to 24Mipa completed Mareh 2004 zy Historic naive litle agreement s
Slide 6: China's steel demand has recently seen unprecedented growth
RLO TIN TEO lan Bauert Managing Director Sales, Marketing and New Business Rio Tinto lron Ore 4 May 2004 China’s steel demand has recently seen unprecedented growth GDP. and steel consumption growth driven by macroeconomic change a0. @ GDP: growth Ws Stecl-consuription. growth 23. + Accelerated indu
Slide 7: Steel demand growth is likely to continue at more sustainable levels
Steel demand growth is likely to continue at more sustainable levels Sources of steel demand in 2003 Strong growth in demand is continuing However; 2000-3 rates appear unsustainable = recent government intervention Future steel demand growth at 2- 3% above GDP more likely Lowerrates would mean unsat
Slide 8: Chinese demand continues to drive record growth in iron ore
Chinese demand continues to drive record growth in iron ore Seaborne traded tron ore Mt China now the largest iron ore importer China's domestic ore production growth constrained Shift towards long term supply arrangements 4985: 1987:°1989:' 4994". 1994: 4985: 1997:-1999: 2004: 2003 seo J apa: W Eur
Slide 9: RTIO sales underpinned by close proximity to Asian growth markets
RTO. sales underpinned by close proximity to Asian growth markets RHO sales growth by market 2003 versus 2002 (year-on-year % change) Others fatal lssor Ht Robe a6 ies ELcape, N Amonca: Taiwan and Others: Rio Tinto is strengthening links with Asian industry leaders » Nippon Steel = Long term contrac
Slide 10: RTIO is locking in expansion volumes under long term arrangements
RTIO is locking In expansion volumes under long term arrangements Expanding links with other key Asian mills More than thirty years experience in China Mills keen to secure reliable long term supply Long term contracts reduce volaiility if conditions change Mill-by-mill tailoring of raw materials an
Slide 11: Tropical cyclone Monty
RLO TINTEO Chris Renwick Chief Executive Rio Tinto Iron Ore A May 2004 Tropical cyclone Monty Highest rainfall since: 1945 Heavy rain: up to 450mm. over 2" days: State emergency procedures implemented: at. Pannawonica Force majeure declared West Angelas and Yandi least affected Continuing impact on
Slide 12: Brockman spur line section washed away
Brockman spur line section washed away Brockman spur line section repaired Page 11
Slide 13: Tom Price main pits flooded in March
Tom Price main pits flooded in March Tom Price main pits with pumping equipment installed Page 12
Slide 14: Strong Q1 sales despite supply interruptions
strong Q1 sales despite supply interruptions All assets operating at record fevels 2004 jarget: was:on track atend of. February Hamersley Q4 Significantly impacted by tropical cyclone Monty Robe growth continued strongly {OC on track Operational improvements Hamersley labour productivity Hamersley s
Slide 15: Pilbara Iron — vehicle for capturing value from closer cooperation
Pilbara lron ~ vehicle for capturing value from closer cooperation Pilbara iron established to: = operate and maintain Hamersiey and Robe rail, port and power assets =) provide corporate and sile- services Approach has been successful in delivering maximum efficiencies in rail «= Pilbara Rail delive
Slide 16: Yandi and West Angelas mine expansions
Yandi and West Angelas mine expansions Yandicoogina mine Demand for pisolite ore into the Chinese and Japanese markets increasing Future growth of Hl Yandicoogina ore underpinned by long term contracts Capacity expansion to 24Mtpa has been completed Further expansion lo 36Mipa will be available in Q
Slide 17: Potential new mine developments in the Pilbara
Potential new mine developments in the Pilbara *. Brownfield expansions of existing operations being studied Excellent opportunities exist to leverage off existing infrastructure for new mine development This will reduce the cost and development time Hammersley - existing operations @: = Robe = exis
Slide 18: Expanded power infrastructure
Expanded power infrastructure interconnection of Hamersiey 220kV: and Robe 132k power. systems installation of gas-fired: turbine at Paraburdoo Capital cost ~ US$45m increase supply capacity and reliability for inland operations Port upgrades in progress Dampier. Capacity increase from 74Mipa to: 11
Slide 19: Hismelt's first commercial plant
Port expansion animation Hismelt’s first commercial plant Under construction in Kwinana, Western Australia Scheduled to start up 800kt plant in Q4 2004 Cold commissioning ~ June 2004 Hot commissioning ~ October 2004 Excellent safety record with zero lost time injuries Operations * Recruiting complet
Slide 20: Hismelt technology marketing
Hismelt technology marketing Technology marketing efforts are primarily. focussed in China, where there is keen interest - two licences issued In 2003 Also undertaking feasibility studies in Europe and North Amenca Steel producers are attracted by Hismelt’s lower capital and operating costs and envi
Slide 21: Rio Tinto Iron Ore is forging ahead
Rio Tinto [ron Ore is forging ahead Largest iron ore producer in: the Pitbara: Full range of products Long-term customer relationships Joint ventures with teading Chinese and Japanese steel mills Close proximity to: growth markets Unrivalied operational flexibility across 3 ports and:9 mines industr