Slide 1: Copper supply and demand outlook
Oyu Tolgoi, Mongolia Copper supply and demand outlook Andrew Harding Chief executive, Copper ©2012, Rio Tinto, All rights reserved
Slide 2: Cautionary statement
Cautionary statement 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 bound by the following conditions. Forward-looking statements T
Slide 3: Market outlook: Mixed developments for the global economy
Market outlook: Mixed developments for the global economy GDP Growth Forecast for 2012 (Y-o-Y % chg) Price performance, indexed to Jan 1st 2010 Forecast in Oct 2011 Latest view 180 LME-Copper, Grade A Cash RBA Index of Base Metals Brent 160 S&P 500 0.3 Eurozone -0.4 140 120 1.4 USA 100 2.1 80 8.1 Ch
Slide 4: Demand: China will continue to drive demand
Demand: China will continue to drive demand China has plenty of growth potential China’s GDP growth is slowing Per capita refined copper consumption (kg) China’s GDP levels and growth forecast US$bn 2005 kg pc Y-o-Y% 12000 GDP Level (RHS) GDP (Y/Y%) (LHS) 16 18 Germany 14 16 10000 USA 12 14 China 80
Slide 5: Supply: Growth will continue to be challenged
Supply: Growth will continue to be challenged Supply is evolving from traditional sources Copper mine production (kt Cu) • An increasing proportion of potential new supply 100% Mongolia is located in riskier countries. Peru 75% • More challenging environments subject to a lack Chile 50% China of inf
Slide 6: Rio Tinto: Continued investment in our assets
Rio Tinto: Continued investment in our assets KUCC Escondida Grasberg • Bingham Canyon mine • Organic Growth 1 Project • Grasberg Block Cave extension • Oxide Leach Area Project • Deep Mill Level Zone (DMLZ) • Molybdenum Autoclave • Ore access, bioleach and de- • 40% of total production 2021 Process
Slide 7: Oyu Tolgoi: A world class asset
Oyu Tolgoi: A world class asset • A top five copper producer and major gold producer1 Large • Average annual production of 450 kt of copper and 330 koz of gold • 3.1bt resource and 1.4bt reserve Long • Potential for a > 50 year mine life Life • Highly prospective region with further exploration pote
Slide 8: Oyu Tolgoi: On track for first commercial production by 2013
Oyu Tolgoi: On track for first commercial production by 2013 Phase 1: 1 Open Pit mine 2 100,000 tonne per day concentrator 3 Preliminary development of UG mine Phase 2: 1 Complete development of UG mine 2 Mill expansion 3 Power station ©2012, Rio Tinto, All rights reserved 8
Slide 9: La Granja: Potential 500ktpa Cu for 40+ years
La Granja: Potential 500ktpa Cu for 40+ years • Substantial additional mineral inventory identified Major new porphyry system has been discovered adjacent to the existing deposit • 41,500m of drilling completed , next phase of drilling (52,000m) commenced for completion by H1 2013 • Approval to co
Slide 10: Resolution: First production ~2021, potential 600ktpa
Resolution: First production ~2021, potential 600ktpa • High quality resource – 1.47% copper with significant molybdenum Shaft 9 • Top of resource about 1.5 km deep, with production Shaft 10 level 2 km deep • Land exchange bill approved in US House of Representatives • Sinking shaft No. 10 to begin
Slide 11: Underground: Leveraging our block caving expertise
Underground: Leveraging our block caving expertise • North Rim Skarn pathway for underground development at KUCC Projects • Step-change project with potential to increase Northparkes to 150ktpa • Block Caving Knowledge Centre • Partnership UNSW Capability • Virtual training in underground • April fi
Slide 12: Technology: Driving our competitive advantage
Technology: Driving our competitive advantage “Rio de Cobre” Technology Alliance Copper NuWave™ recovery innovation • Partnership entered into in 2009 • Pilot plant in construction at Kennecott • Joint technology opportunities across • Commissioning Q2 2012 surface and underground mining as well • U