Rio Tinto Plc · LSE:RIO
Rio Tinto — Port Waratah Coal Services — Non-Deal Roadshow (June 2006)
10 slides from Rio Tinto's roadshow presentation, June 2006
Slide 1: Port Waratah Coal Services Financial Community Tour
Port Waratah Coal Services Financial Community Tour June 2006 Port Waratah Coal Services Carrington Terminal Kooragang Terminal 2
Slide 2: Coal in New South Wales / Hunter Valley Coal Chain
Coal in New South Wales • In NSW there are 55 mines Coalfield Reserve Mt - 28 underground Hunter 4 050 - 27 open cut Newcastle 1 600 Coalfield areas Gunnedah 1 290 serviced by PWCS • Total NSW exports (2005) 89.5 Mt Western 1 560 • PWCS (2005) 80.3 Mt Gloucester 20 Southern 810 Domestic consumption
Slide 3: Export rail infrastructure; Hunter Valley mine ownership
Export rail infrastructure 5 Hunter Valley mine ownership FOUR LARGEST EXPORTERS 2005 throughput Xstrata 33% Coal & Allied 27% Anglo Coal 6% BHP Billiton 6% Other 28% 100% Xstrata Coal & Allied Anglo 6 BHP Billiton
Slide 4: PWCS at a glance
PWCS at a glance • PWCS owns and operates the two export coal terminals in Newcastle - at Carrington and Kooragang. • The company is owned by the Hunter Valley coal export industry - coal producers and some of their Japanese customers, and is an unlisted public company. Shareholders Ownership Newcas
Slide 5: Health and safety; Environment and community
Health and safety PWCS is committed to improving safety. All Injury Frequency Rate Lost Time Injury and Medical Treatment Injury 20 18 16 14 12 History 10 2006 Target 8 6 4 2 0 01 02 03 04 05 D YT 20 20 20 20 20 06 20 PWCS is implementing the StepSafe Safety Management System, Interactive Safety Obs
Slide 6: People, Operations and Growth in Volume
People • 382 people are employed at PWCS supported by approximately 136 full time employee contractors • Operators and maintainers work a ‘4-on 4-off’ shift roster to provide 24 hour / 7 day coverage to provide continuous operation of both port facilities • People are our most important asset and we
Slide 7: Capacity balancing system; Historical throughput and capacity
Capacity balancing system • In place since 2004 • Limits the tonnage each producer can export through the port on a pro rata basis • Allocations are on an even quarter by quarter basis • Quarterly loading allocation • Clearly successful in queue management in 2004/05 but vessel presentation in 2006
Slide 8: Export tonnes - 2005; PWCS - the next five years
Export tonnes - 2005 Europe 1% China 3% Korea 12% Japan 58% Taiwan 16% Malaysia 2% Other Countries – 8% Jan – Dec 2005 Steaming Coal 88% Coking Coal 12% Newcastle 15 PWCS - the next five years Expansion – Kooragang • The PWCS Board has approved expansion at Kooragang Terminal consisting of: - A new
Slide 9: PWCS - the next five years: Infrastructure
PWCS - the next five years Infrastructure • Australian Rail Track Corporation commenced work in late 2005 on A$152 million rail investment programme to increase rail capacity from 85mtpa to over 100mtpa over the next five years. • Load point upgrades - Hunter Valley load point, Warkworth load point,
Slide 10: Dissection of shipment size; Summary
Dissection of shipment size (split by vessel size) Year to date 2006 HANDY SIZE PANAMAX SIZE CAPE SIZE 25% Percentage by Vessels 20% 15% 10% 5% 0% 11 9 12 9 13 9 14 9 15 9 16 9 9 9 9 9 9 9 9 9 9 10 9 9 10 11 12 13 14 15 16 -1 -2 -3 -4 -5 -6 -7 -8 -9 0- 10 20 30 40 50 60 70 80 90 0- 0- 0- 0- 0- 0- 0-
Port Waratah Coal Services — Non-Deal Roadshow (June 2006) on 6ix