Slide 1: ASX cover letter: IOC presentation
120 Collins Street Melbourne 3000 Australia Postal Address: GPO Box 384D Melbourne 3001 Australia T +61 (0) 3 9283 3333 F +61 (0) 3 9283 3707 For personal use only ASX Market Announcements Australian Securities Exchange SYDNEY NSW 2000 17 September 2012 Dear Sir, Attached is a presentation given by
Slide 2: Iron Ore Company of Canada
©2012, Rio Tinto, All Rights Reserved 1 For personal use only Iron Ore Company of Canada Zoe Yujnovich President & CEO – Iron Ore Company of Canada 14 September 2012
Slide 3: Cautionary statement
©2012, Rio Tinto, All Rights Reserved 2 Cautionary statement For personal use only This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be b
Slide 4: IOC is on a journey to Zero Harm
3 IOC is on a journey to Zero Harm For personal use only Injury frequency rates 2003 – End August 2012 Per 200,000 hours worked 4 All injury frequency rate 3.5 Lost time injury frequency rate 3 2.5 2 1.5 1 0.5 0 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 2012 YTD
Slide 5: IOC Shareholders
4 IOC Shareholders For personal use only World leader in mining, and processing Rio Tinto of mineral resources (58.72%) Managing Shareholder Mitsubishi Major global trader of iron ore and other Corporation minerals (26.18%) Canadian corporation traded on the Toronto LIORC stock exchange (15.
Slide 6: IOC has a long history in Newfoundland & Labrador and Quebec
5 IOC has a long history in Newfoundland & Labrador and Quebec For personal use only 1954 - Completion of QNS&L line & first Schefferville ore 1962 - Commissioning of Labrador IOC External City Operations Relations Office 1967 - Labrador City pellet plant expanded 1981 - Sept-Iles pellet plant close
Slide 7: Providing significant and sustainable benefits to the communities in which we operate
6 Providing significant and sustainable benefits to the communities in which we operate For personal use only • Mining and Processing operations in Labrador City (NFLD). • Port & Rail in Sept Iles (QC). • Corporate presence in Montreal and St. Johns. • Approximately 2500 employees. • Sustainable Dev
Slide 8: IOC is a strong contributor to the Rio Tinto portfolio
77 IOC is a strong contributor to the Rio Tinto portfolio For personal use only IOC underlying results (100% basis) US$ millions • Despite current weakening global market conditions, IOC continues to generate strong earnings and EBITDA, and is supported by a relatively low level of debt. • Unit cost
Slide 9: IOC integrated mine to port production system
8 IOC integrated mine to port production system For personal use only • Expandable high quality resource base with Mine significant exploration potential • Ore upgraded often in excess of 65% Fe concentrate Plant • Majority of concentrate converted to pellets • Product transported to port via ~400 k
Slide 10: Mining Operations
9 Mining Operations For personal use only • Three active pits: Luce, Humphrey West and Sherwood • Annual material movement • 2011 = 65Mt, Sherwood H. South (Active) • 2012 forecast = 77Mt. H.West (Active) • Mining Equipment Loraine H.Main • 9 electric drills Luce • 6 P&H electric shovels (Active) 3P
Slide 11: Ore Delivery System from Mine to Processing plants
10 Ore Delivery System from Mine to Processing plants For personal use only Automated Train Operation (ATO) Parallel Ore Delivery System (PODS) • Hauls ore 8 - 13 km from mine to concentrator. • Dedicated crusher • 7 automated electric trains - 20 cars carrying • 6 km overland conveyor direct to pro
Slide 12: Concentrator and Pellet Plant
11 Concentrator and Pellet Plant For personal use only • Annual concentrator capacity Crusher of 22Mt post Concentrate Expansion Project Phase 1 (CEP1). • Annual pellet plant capacity of 12.5Mt. • Flexibility to adjust product mix in response to market conditions. • Value adding process attracts sig
Slide 13: 418km railway (QNS&L) connects Labrador City operations to the Quebec coast
12 418km railway (QNS&L) connects Labrador City operations to the Quebec coast For personal use only • 100% IOC owned and operated, federally regulated. • System hauls 24Mt of product from Labrador to Sept-Iles annually1. • Current fleet capacity of approximately 35Mt • Fleet is sized for purpose. •
Slide 14: IOC's deepwater port at Sept-Iles is accessible year-round
13 IOC’s deepwater port at Sept-Iles is accessible year-round For personal use only • 100% IOC owned and operated. • Port facilities accommodate large ships all year round – ship draft of up to 17.7m • Smaller vessels service the St. Lawrence seaway during the summer. • Port capacity approximately 2
Slide 15: Our Markets
14 Our Markets For personal use only IOC Customers by Shipment - 2010 • High quality supplier with stable customer base. 29% • Recent investments in the operations have improved reliability of supply. 49% • Steady increase in concentrate fines for sale. • Long-term contracts secured. 22% • Well posi
Slide 16: IOC Products
15 IOC Products For personal use only IOC Concentrate • Recognised for its low alumina, very low phosphorus IOC Pellet grades • Acid: Standard and Low Silica • High grade Direct Reduction • Fluxed Value is Supported IOC Pellets IOC Concentrate • Trend toward higher quality manufacturing and cons
Slide 17: Delivery improvement initiatives and executing expansions will drive IOC performance in 2012
16 Delivery improvement initiatives and executing expansions will drive IOC performance in 2012 For personal use only IOC concentrate capacity • Integrated planning approach to (Mtpa,100% basis) delivery will optimise performance in 50 2012 Potential * 45 Under Study * • CEP 1 currently being commis
Slide 18: Phase 2 Concentrate Expansion Project
17 Phase 1 Concentrate Expansion Project 4Mt additional concentrate capacity For personal use only • Revised Capex of US$628M • Dedicated crusher. • Parallel Ore Delivery System (PODS) • 6km overland conveyor - 35Mtpa capacity • Debottlenecks ore delivery system • Reduces haul truck cycle time • Add
Slide 19: Phase 1 Concentrate Expansion Project
18 Phase 2 Concentrate Expansion Project 1.3Mt additional concentrate capacity For personal use only • Capex of US$277M • Additional spiral lines and expanded magnetite plant delivering increased recoveries. • Includes additional mining equipment and rolling stock. CEP1 - Ore Storage Barn CEP1 – 4th
Slide 20: IOC has sufficient mineral inventory to support future expansion options
19 IOC has sufficient mineral inventory to support future expansion options For personal use only Legend • Vast mineral inventory. IOC Mining Leases IOC Exploration Licences • All reserves, resources RTX Exploration Licences yield saleable product with Third party Exploration Licenses Reserves & res
Slide 21: Conclusion
20 Conclusion For personal use only • IOC is an extremely valuable business and a strong contributor to the Rio Tinto portfolio. • IOC offers enormous upside potential for future growth in value. • Quality of our product positions us strategically for the future. • Expansions are currently underway