Rio Tinto Plc · LSE:RIO
Rio Tinto — Investor Day (2018)
94 slides from Rio Tinto's investor day presentation, 2018
Slide 1: Iron Ore – Delivering value from flexibility and optionality
Iron Ore – Delivering value from flexibility and optionality Chris Salisbury Iron Ore chief executive
Slide 2: Cautionary statements
2 Cautionary 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. Forward-looking statements This document, including but not limited to
Slide 3: Supporting statements
3 Supporting statements Mineral Resources and Ore Reserves The Mineral Resource and Ore Reserve estimates which appear on slide 36 are reported on a 100% basis. Mineral Resources are reported as additional to Ore Reserves. These Mineral Resource and Ore Reserve estimates, together with the ownership
Slide 4: Our value over volume strategy maximises free cash flow
4 Our value over volume strategy maximises free cash flow Foundations Value over Volume Strategy Revenue Exclusive fully Price impact of integrated system incremental tonnes Protecting quality Delivering right tonnes to customers who value them Highly valued product suite and significant resources C
Slide 5: Health and safety come first
5 Health and safety come first Strong safety performance Focusing on fatality elimination – 265,000 CRM 1.40 verifications completed in Iron Ore in 2017 All injury frequency rate per 200,000 hours 1.20 Reducing injuries – targeted hazard elimination 1.00 Catastrophic event prevention through control
Slide 6: World class assets, fully integrated and agile network
6 World class assets, fully integrated and agile network HAMERSLEY IRON (100%) 16 Mines CAPE LAMBERT A & B UNDEVELOPED PROJECT (100%) PARKER POINT Point Samson Dampier Wickham ROBE RIVER MINING JV (53%) 1,700 Rail (km) EAST INTERCOURSE ISLAND Karratha Roebourne HOPE DOWNS JV (50%) CHANNAR MINING JV
Slide 7: Priority remains to optimise infrastructure capacity and build flexibility
Priority remains to optimise infrastructure capacity and 7 build flexibility Current system capacity Future system capacity ~360* ~360 ~330-340 Mt/a Mt/a Mt/a Building rail capacity to provide Rail and mine capacity expected to match nameplate port dynamic flexibility capacity by the end of 2019 Min
Slide 8: Global macro indicators remain supportive
8 Global macro indicators remain supportive Global PMIs have eased but remain in expansion Chinese growth slowing very gradually 65 10 60 8 PMI Index YoY ytd Real 55 6 50 4 45 2 40 0 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 US Eurozone China J
Slide 9: Seaborne supply response remains muted…
Seaborne supply response remains muted… 9 2018 seaborne supply additions offset by disruptions Rise in inventories driven by lower quality iron ore and exits 42 175 39* 150 125 Million tonnes Million tonnes 100 -17 75 -20 50 25 2 0 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-1
Slide 10: …and Chinese domestic production remains steady
10 …and Chinese domestic production remains steady Most Chinese domestic capacity is geographically …Chinese domestic production has remained steady… removed from the steel mills… 500 400 300 Million tonnes Heilongjiang 200 100 Jiling 0 Xinjiang Liaoning Hebei 2013 2014 2015 2016 2017 2018 YTD 1 Inn
Slide 11: Our Iron Ore business consistently generates superior margins
Our Iron Ore business consistently generates superior 11 margins Rio Tinto Iron Ore EBITDA performance EBITDA Margin v Peers 80% 80% 180 70% Price $ per tonne 2 60% EBITDA margin1 60% 120 50% 40% 40% 60 20% 30% 20% 0% 0 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 12: Multiple low cost, value accretive capital options
12 Multiple low cost, value accretive capital options Pilbara development options $ per tonne installed capital intensity 120 Sustaining capex of ~$1 billion per year for the next Bubble size indicates capacity three years 90 Pilbara replacement mines capital 2018 – 2020 of ~$2.2 billion includes We
Slide 13: Sustainable long term, low cost position underpinned by our world class assets
Sustainable long term, low cost position underpinned 13 by our world class assets Pilbara cash unit cost 21 19 20.2 19.5 Headwinds in 2018: 17 Cyclical maintenance $ per tonne 15 14.9 Haul distance costs, partly offset by 13 13.7 13.4 11 Bulk materials new tactics 9 7 Labour costs 5 2013 2014 2015 2
Slide 14: Productivity options to continue to deliver cash benefits
14 Productivity options to continue to deliver cash benefits Partnering Best Practice Data & Technology Automation with Suppliers Effective equipment Mine planning optimisation Payload optimisation utilisation and maintenance optimisation Explosives charging improvements Autonomous trucks (including
Slide 15: Supported by our people and partners
15 Supported by our people and partners Valued customer relationships 11,500 employees driving built on technical knowledge sustainable productivity and and product quality cost improvements Local procurement Over 1,000 WA suppliers provided with business Rio Tinto paid $1.3 billion Strong community
Slide 16: Iron Ore is consistently generating superior shareholder returns
Iron Ore is consistently generating superior 16 shareholder returns Clear strategy of value over volume - focused on Market led strategy delivering value for decades to come Disciplined embedded process for delivery of Productivity and value focused improvement in volume and productivity Attractive
Slide 17: Sales and Marketing
Sales and Marketing Simon Farry Vice President, Sales and Marketing
Slide 18: Controlled deceleration in Chinese growth
18 Controlled deceleration in Chinese growth Infrastructure investment slowing but remains robust Housing inventories are very low… 30 50 25 40 Months of Supply 20 YoY ytd % 30 15 20 10 5 10 0 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Real Estate Investment Manufacturing Investment Infrastr
Slide 19: Supply-side reform and tightening environmental policy have driven structural changes
Supply-side reform and tightening environmental policy 19 have driven structural changes Supply-side reforms Environmental policy Higher steel capacity Policies focused on restoring industry Environmental restrictions are utilisation rates profitability and reducing debt the new normal Steel capacit
Slide 20: China’s supply-side reform and environmental policies have created a more efficient industry…
China’s supply-side reform and environmental policies 20 have created a more efficient industry… Steel mill rationalisation programme has removed …while steel production has remained robust... significant capacity... 2.1 1,300 Steel Capacity million tonnes Million tonnes per day 1,250 65 2.0 1,200 5
Slide 21: ...causing a structural shift towards productivity
21 ...causing a structural shift towards productivity Improvement in Chinese steel industry profitability... ... and the focus on productivity has caused structural widening in iron ore premiums % relativity to 62% index 250 100% Mill margin $ per tonne 200 90% 150 80% 100 70% 50 60% 0 50% -50 2015
Slide 22: Northern China is driving structural change to iron ore pricing
Northern China is driving structural change to iron ore 22 pricing Typical North China Typical South China Northern Chinese mills are most sensitive to changes in Fe grade Blast furnace productivity increase for a 1% increase in iron burden 2.5% Productivity increase 2.0% 20-25% Direct 1.5% 25-30% D
Slide 23: China’s supply-side reforms are here to stay and will continue to be driven by tightening environmental policy
China’s supply-side reforms are here to stay and will continue 23 to be driven by tightening environmental policy Southern and Coastal regions destination for replacement ... and replacement capacity will be larger and steel capacity – well located for seaborne iron ore … cleaner blast furnaces >300
Slide 24: Scrap usage in China gradually increasing from a low base, but will face headwinds
Scrap usage in China gradually increasing from a low 24 base, but will face headwinds China’s scrap supply growing slowly from a Headwinds limiting scrap consumption: low base Scrap to iron ore price ratio has risen to historic highs Million tonnes Scrap quality is low 2013 2014 2015 2016 Pig Iron P
Slide 25: Rio Tinto Commercial bridges our customers and our assets
Rio Tinto Commercial bridges our customers and our 25 assets Rio Tinto’s commercial hub now established in Singapore, combining sales and marketing, procurement, and marine and logistics Iron Ore Sales & Marketing team strategically Europe located to provide deep customer and market insights: Seoul
Slide 26: We have a Tier 1 customer base
26 We have a Tier 1 customer base 2017 shipments by country/region 76% 16% 4% 3% China Japan Korea Taiwan South East Asia Europe 30 largest steel mills in Asia Well positioned to supply emerging iron ore demand in South East Asia Upcoming Blast Furnace capacity in ASEAN (Million tonnes) 13% 33.9 15.
Slide 27: We understand every customer is different
27 We understand every customer is different Technical Geographical Regulatory Strategic Operations and Logistics and Environmental exposure Steel technical constraints and supply chain and restrictions market sector process efficiency Proximity to deep Energy caps Production Stockyard and water por
Slide 28: And we sell our product on different contracts …
28 And we sell our product on different contracts … 2017 sales by pricing type 2017 sales by contract type 2017 sales by delivery type 11% 7% 17% 16% 5% 33% 77% 67% 67% Fixed price (spot) Long term contract Delivered Month actual Short term contract FOB Quarter lag Spot Quarter actual Source: Rio Ti
Slide 29: … we produce five products in the Pilbara to meet their needs
… we produce five products in the Pilbara to meet their 29 needs Pilbara Pilbara Yandicoogina Robe Robe Blend Fines Blend Lump Fines Valley Fines Valley Lump 2017 shipments by product 47% 26% 17% 7% 3% Pilbara Blend Fines Pilbara Blend Lump Yandicoogina Fines Robe Valley Fines Robe Valley Lump Sourc
Slide 30: Pilbara Blend is the world’s most recognised brand of iron ore
Pilbara Blend is the world’s most recognised brand of 30 iron ore We remove variability for Pilbara Blend Fines is main reference our customers through our product for the 62% indices blending process Share of PBF volume in reported 62% Fe transactions Pilbara Blend Fines Pilbara Blend Lump Fe Alumi
Slide 31: Yandicoogina, Robe Valley products are placed with customers who value them most
Yandicoogina, Robe Valley products are placed with 31 customers who value them most Total tonnes of Yandicoogina Fines, Robe Valley Fines and Robe Valley lump 2% 2% 39% Yandicoogina Fines Robe Valley Fines Robe Valley Lump Pricing Pricing Pricing Priced very closely Priced against 62% Priced against
Slide 32: Creating a flexible supply chain allows agility to respond to customer needs and market conditions
Creating a flexible supply chain allows agility to respond 32 to customer needs and market conditions Future system capacity Flexing Pilbara Blend Lump shipments in line with market demand and premium cycle Aligning Yandicoogina fines shipments in line with customer demand Flexing volume and product
Slide 33: Technology will improve the customer experience and generate market insights
Technology will improve the customer experience and 33 generate market insights Live visual interface between Sales & Marketing in Singapore and the Operations Centre enabling a customer-led supply chain Robotic technologies Artificial intelligence to eliminate manual tasks and predictive analytics
Slide 34: Our commercial approach maximises the value of our products
Our commercial approach maximises the value of our 34 products Focused on growing value for all through deep Customer centric organisation understanding of our customers and the industry Product portfolio A suite of highly valued, consistent products Supply chain optimisation Right customer, right p
Slide 35: Planning, integration and assets
Planning, integration and assets Kellie Parker Managing Director, Planning, Integration and Assets
Slide 36: Highly valued product suite, sustained by significant resources
Highly valued product suite, sustained by significant 36 resources Pilbara resources, reserves1 and production 25,000 375 20,000 300 Large mineral resources support system Million tonnes (wet) Million tonnes (dry) optionality 15,000 225 Ore reserves maintained in line with 10,000 150 depletion 5,000
Slide 37: Continuing to grow the pipeline of future resources and exploration options
Continuing to grow the pipeline of future resources and 37 exploration options 2018 drilling plan by hub regions 800 Extensive existing resource base 700 600 Drilling focused on evaluating mineralised inventory or conversion to 500 resource Kilometres 400 300 Extensive tenures beyond existing mines
Slide 38: Extensive pipeline of options
38 Extensive pipeline of options Exploration & Concept & Order Evaluation Pre-feasibility of Magnitude & Feasibility Development / >700km of drilling across Ramp Up Pilbara projects planned in Western Turner Completed 2018 to support operations, Koodaideri stage 2 Syncline stage 2 studies and strate
Slide 39: Best in class quality delivered through system blending
39 Best in class quality delivered through system blending Mesa J Port Terminals Products Future system capacity Mesa A RVL Cape RVF Yandicoogina Lambert HIY Silvergrass A West Angelas HIY Hope Downs 1 Cape PBL Lambert PBF Fe Alumina Nammuldi B Marandoo Brockman 4 PBL Parker PBF Mt Tom Price Point P
Slide 40: Dynamic market driven integrated planning system…
40 Dynamic market driven integrated planning system… The system optimises reserves and fixed Customers Planning mobile assets for right quality and value Right quality, at the right time, delivered through system Drill & blast Load & haul Pit / plant interface Plant operations Plant / rail interface
Slide 41: …supported by three improvement streams
41 …supported by three improvement streams People Process Technology Connected teams Ore body to customer – Integrated automation an integrated decision system Skills requirement for job of the future Augmented asset health Big data infrastructure ©2018, Rio Tinto, All Rights Reserved
Slide 42: Industry leading technology driving productivity…
42 Industry leading technology driving productivity… Machine / Asset Automation Networked Customer to ore body machines knowledge Improved safety and productivity Control systems connected at all interfaces End-to-end value optimisation Autonomous drills (ADS) Mine Automation System (MAS) Artificial
Slide 43: … with Koodaideri being our first intelligent mine
43 … with Koodaideri being our first intelligent mine Sustaining Pilbara Blend - 40Mtpa throughput coarse ore capacity plant >170 kilometres of new AutoHaul® rail World class project delivery - utilising data centric and advanced digital engineering to produce a digital twin of the asset Over 100 in
Slide 44: Optimised system maximising value
44 Optimised system maximising value Highly valued product suite, significant resources, Resource optionality development optionality Dynamic scheduling system putting customers at the Scheduling agility core Increasing use of technology to drive value across the Automation system An exclusive fully
Slide 45: Pilbara Mine Operations
Pilbara Mine Operations Matthew Holcz Acting Managing Director, Pilbara Mines
Slide 46: World class assets, fully integrated and agile network
46 World class assets, fully integrated and agile network HAMERSLEY IRON (100%) 2014 Nammuldi BWT CAPE LAMBERT A & B 16 Mines UNDEVELOPED PROJECT (100%) PARKER POINT ROBE RIVER MINING JV (53%) EAST INTERCOURSE ISLAND 15 Train load outs HOPE DOWNS JV (50%) 2013 Hope Downs 4 CHANNAR MINING JV (60%) Pl
Slide 47: Further opportunity exists to optimise mines
47 Further opportunity exists to optimise mines Mines Plant Train Load Out Mine & Haul Process Stockpile & Load out Equipment Reliability Asset Reliability Tonnes per car (Mean time between failure, availability) (Scheduled loss, unscheduled loss) (Dynamic tuning for mass and volume) Equipment Produ
Slide 48: More productive and engaged workforce
48 More productive and engaged workforce Increasing gains in workforce productivity SOP1 per employee2 (kt / person, Index: 2014 = 1.00) 37% Productivity improvements in fixed and mobile equipment Mutually beneficial partnerships with key local suppliers 1.36 1.37 1.19 1.00 Sustained focus on contin
Slide 49: Significant improvement achieved across our mines…
49 Significant improvement achieved across our mines… Productivity increases are supporting our volume growth . . . Haul truck effective utilisation Haul truck payload (%, Index: 2015 = 1.00) (kt, Index: 2015 = 1.00) 8% 1.08 8% 1.08 1.03 1.02 1.00 1.00 2015 2016 2017 2015 2016 2017 . . . while impro
Slide 50: …with automation delivering significant advantages
50 …with automation delivering significant advantages Haul truck automation is delivering clear benefits with further upside to be realised as the technology matures 2017 haul truck effective utilisation Yandicoogina AHS effective utilisation1 (%, Index: Manned = 1.00) (%, Index: 2016 = 1.00) 11% 1.
Slide 51: Fixed plant reliability and productivity
51 Fixed plant reliability and productivity Focus on maintenance efficiency and asset reliability is driving up availability Scheduled loss Unscheduled loss (%, Index: 2016 = 1.00) (%, Index: 2016 = 1.00) 8% 10% 1.00 1.00 0.92 0.90 2016 2017 2016 2017 Plant performance supporting growth at Greater B
Slide 52: Creating a flexible value driven mine production system
52 Creating a flexible value driven mine production system Plant performance improvements at Yandicoogina 2 x dry processing routes 2 x wet processing routes PRIMARY CRUSHER PC1 PC4 PC2 PC3 PROCESSING PLANT Plant 1 Plant 2 Plant 3 2017 Outcome STOCKYARD Total production maintained at ~ 58 Mt Stockya
Slide 53: Mines supporting rail to unlock capacity
53 Mines supporting rail to unlock capacity Incremental improvements at significant scale can deliver substantial benefits Tonnes per car Train load time (kt, Index: 2016 = 1.00) (min, Index: 2016 = 1.00) 1% 2% 1.02 1.00 0.99 1.00 2016 2017 2016 2017 580 tonnes per train × 2 minutes load time = 6Mtp
Slide 54: Silvergrass delivered on time and on budget
54 Silvergrass delivered on time and on budget Silvergrass ramp up commenced in Q2 2017 Silvergrass and Nammuldi incremental production tonnes (Annualised million tonnes) 15.3 Increased production capacity up to 21Mtpa High grade Marra Mamba ore supporting 10.5 Pilbara Blend All construction contrac
Slide 55: Pilbara mines continuing to deliver productivity improvements
Pilbara mines continuing to deliver productivity 55 improvements Flexing the integrated system Agile network of mines gives superior product options Project delivery and Demonstrated project delivery and commissioning commissioning capability providing growth and replacement tonnes Adapting and leve
Slide 56: Rail & Port Operations
Rail & Port Operations Ivan Vella Managing Director Rail, Port & Core Services
Slide 57: World class assets, fully integrated and agile network
57 World class assets, fully integrated and agile network Legend Mesa J Port Terminals Products CAPE LAMBERT A & B Town Railway PARKER POINT Railway Duplication Mesa A Robe Fleet RVL EAST INTERCOURSE ISLAND Pooled Fleet Cape RVF Central Corridor Yandicoogina Lambert HIY Indicative rail network for K
Slide 58: Our integrated system allows us to achieve unparalleled levels of utilisation
Our integrated system allows us to achieve unparalleled 58 levels of utilisation 1400 Increasing demand on formation and ballast Rio Tinto Iron Ore 1200 Number of loaded axles per hour* 1000 BHP Powder River Basin** 800 Hunter Valley VALE Carajas 600 Aurizon Coal*** FMG 400 CN/CP directional run zon
Slide 59: Increased flexibility in our supply chain creates additional competitive advantage
Increased flexibility in our supply chain creates 59 additional competitive advantage Future system capacity Delivering rail capacity provides dynamic flexibility to respond to customer demands System designed to ensure rail does not limit the full potential of the port and mine assets Continue to o
Slide 60: Optimising rail capacity and improving flexibility
60 Optimising rail capacity and improving flexibility Train Load Out Mainline Yard and Port (Dumper) Stockpile & Rail Ore car- Load out dumping Mainline network operating strategy Yard operations Tonnes per car (Network operation, common tactics, (Optimised scheduling, mobility solution, (Dynamic tu
Slide 61: Building future system flexibility with AutoHaul®
61 Building future system flexibility with AutoHaul® Improved productivity, efficiency and safety Greater flexibility in scheduling Removal of driver changeover times ~3x stoppages for each round trip Improved cycle time performance Removing the need to transport drivers 1.5 million kilometres each
Slide 62: AutoHaul® to complete in 2018
62 AutoHaul® to complete in 2018 World’s first fully autonomous heavy haul mainline run completed in September 2017 AutoHaul® usage continues to be expanded ~65% >1million ~6% Regulator approval received in May production kilometres kilometres Speed improvement currently completed in completed in au
Slide 63: Advancements in technology are crucial to the network operating strategy
Advancements in technology are crucial to the network 63 operating strategy Technology-enabled best practice tactics covering the yard interface, mainline and mine interface Real time visibility and Analytics, decision support and optimisation of our network with automation tools for train predictiv
Slide 64: Yard improvements and digital transformation
64 Yard improvements and digital transformation Automated roll-by (ARB) RFID tracking of assets Yard optimisation engine Dynamically optimised yard All locos and wagons tracked using Optical solution providing insight into movement plan RFID technology the health of our fleet Closed loop feedback to
Slide 65: Rail maintenance productivity can unlock new potential
65 Rail maintenance productivity can unlock new potential Maintenance strategy and RTIO cumulative tonnes railed productivity critical Million tonnes Rail capacity 6,000 3 Years to increase rail 1,000Mt 5,000 4,000 Rail 3,000 Increased maintenance 25 Years to maintenance productivity rail 1,000Mt de
Slide 66: Our plan for rail productivity is strong and balanced
66 Our plan for rail productivity is strong and balanced Number of trains Payload per train Network capacity (Mtpa) Yard improvement Network operating Cycle time strategy Rail maintenance productivity (network speed and reduced delays) Chart size indicates relative capacity contribution In progress
Slide 67: Productivity is key to unlocking further value
67 Productivity is key to unlocking further value Yard and Dumping productivity benefits continue… Yard-in improvements Dumping – placing train improvements Minutes (%, Index: 2015 = 1.00) Minutes (%, Index: 2015 = 1.00) 17% 1.00 26% 1.00 0.90 0.91 0.83 0.74 2015 2016 2017 2015 2016 2017 …with demon
Slide 68: Unencumbered port facilities with built in optionality
68 Unencumbered port facilities with built in optionality Continued improvement in productivity and safety, with considerable potential for capacity uplift Unparalleled flexibility for blending and customer centric operation Four independent terminals that provide optionality and full utilisation of
Slide 69: Improving the capability of our port assets
69 Improving the capability of our port assets Port reliability continues…. Unscheduled downtime hours per million tonnes Dumper capacity - time between queuing trains Pooled fleet dumping circuits (%, Index: 2015 = 1.00) Cape Lambert yard / dumper interface (%, Index: 2015 = 1.00) 1.00 54% 1.00 11%
Slide 70: Exclusive, fully integrated infrastructure delivers value for shareholders
Exclusive, fully integrated infrastructure delivers value 70 for shareholders Leveraging the fully integrated and flexible system - Reshaping the supply chain extracting capacity to realise more value from market AutoHaul® benefits flowing AutoHaul® platform enables additional productivity Opportuni
Slide 71: Summary
Summary Chris Salisbury Iron Ore chief executive
Slide 72: Iron Ore continues to deliver optimal value
72 Iron Ore continues to deliver optimal value Strong foundations Further opportunities for value creation Exclusive fully integrated system Value over volume strategy Maximising Highly valued product suite cash flow and significant resources through the Mine to market productivity improvements cycl
Slide 73: Q&A
Q&A
Slide 74: Appendix
Appendix
Slide 75: Iron and steelmaking process flow
75 Iron and steelmaking process flow Step 1: Sinter and Coke Making Step 2 : Iron Making Step 3 : Steel Making, Refining and Casting Ore Fines and Concentrate Coking Coal Coke, Sinter Alloys Inputs Inputs Inputs Inputs Pilbara Blend Fines Lump, Pellets Scrap metal Pilbara Blend Lump Fluxes Robe Vall
Slide 76: Greater Brockman
Greater Brockman Matthew Holcz Operations (GBO) Scott Wilkinson; General Manager GBO General Manager
Slide 77: Safety Share: Automation introduces additional safety controls
Safety Share 2 Automation introduces additional safety controls Autonomous haulage system (AHS) setup Benefits; GPS antenna Mode lights Reduces number of people exposed to hazards Reduces number of critical risk scenarios Improves level of control effectiveness (engineering controls) Communica
Slide 78: Mines and Infrastructure of GBO
3 Mines and Infrastructure of GBO Greater Brockman Summary SILVERGRASS MINE PLANT Traditional owners of the land are the Puutu Kunti Kurrama and Pinikura and the Eastern Guruma people. NAMMULDI MINE Open Pit ore commencement; Brockman 2/Nammuldi – 1992 BROCKMAN 2 MINE Brockman 4 – 2010 PLANT
Slide 79: Four world class mines connected to an integrated system
Four world class mines connected to an integrated 4 system CAPE LAMBERT A & B Hamersley Iron (100%) PARKER POINT Undeveloped Project EAST INTERCOURSE ISLAND Robe River Mining JV (53%) Hope Downs JV (50%) Channar Mining JV (60%) BAO-HI Ranges JV (54%) MESA A MESA J See next slide SILVERGRASS NAMMULDI
Slide 80: An extensive mining fleet of autonomous and manned equipment
An extensive mining fleet of autonomous and manned 5 equipment 20 10 x Pit Viper production rigs (ADS retrofit in progress) 18 6 x Atlas D65 contour rigs 4 x SKSS production rigs 80 37x 930E Autonomous Haul Trucks Shovel configuration: 3 x Hitachi EX8000, 1 x Hitachi EX5600, 3 x Hitachi EX5500. Back
Slide 81: GBO is instrumental in delivering our Pilbara Blend through our integrated production system
GBO is instrumental in delivering our Pilbara Blend 6 through our integrated production system Nammuldi Silvergrass Nammuldi Brockman 4 Brockman 2 Below Water Table Above Water Table PRIMARY CRUSHER PC1 PC2 NBWT PC NSC1 & 2 SGE PC B2 PC CSI PC PROCESSING PLANT Dry Plant (45mtpa) Wet Plant (46mtpa) D
Slide 82: Silvergrass our newest mine
7 Silvergrass our newest mine Opening Ceremony First low-phosphorus ore 5 Nov 2017. Primary crusher with 9km conveyor SILVERGRASS MINE connecting existing infrastructure at NBWT Plant. Extension of Nammuldi workshop (4 bays, tyre change and storage facility and light vehicle workshop, fuel fac
Slide 83: GBO are demonstrating cost and productivity wins….
8 GBO are demonstrating cost and productivity wins…. Brockman 2 Plant Operating Time Focused on; Indexed, Hrs 28% 1.28 Delivering the tonnes and grade of ore to meet system requirements. 1.09 1.00 Increasing plant performance and asset reliability. Continuous improvement of manned and 2015 201
Slide 84: And today you will see our progress
9 And today you will see our progress AHS in operation - Silvergrass Production drill during ADS technology installation at NBWT MEM Workshop Train Loadout Operations B4 ©2018, Rio Tinto, All Rights Reserved
Slide 85: The Operations Centre (OC)
The Operations Centre (OC) The nerve centre of the integrated network Kellie Parker Managing Director, Planning, Integration and Assets
Slide 86: Seamless integrated operations…..
3 Seamless integrated operations….. Exploration Assessment Planning Drill & Blast Load & Haul Processing Customers Shipping Stockpile Ore Car Rail Stockpile & Dumping Load out ©2018, Rio Tinto, All Rights Reserved
Slide 87: …optimising schedule and performance of the system
4 …optimising schedule and performance of the system Mine Process Stockpile & Rail Car- Stockpile Shipping Customers & Haul Load out dumping Operations Centre Whole of System Visibility System wide integrated planning and scheduling Improved access to information Operational Excellence Collaboration
Slide 88: Managing an integrated system of …..
5 Managing an integrated system of ….. Operations Centre Control, Monitor and Optimise the integrated system Mine Plant Rail Ports Asset health 16 Mines 10 sites with 12 Fixed Plants 1700 Km of rail network Operation 4 Ports: Real-time monitoring of (Wet & Dry) CLA, CLB, PPT, EII fixed and mobile as
Slide 89: The OC of today is very different to the OC of 2007
6 The OC of today is very different to the OC of 2007 Rail Asset Health, Ports & Dynamic Scheduling Mining & Plants Increased AHS presence Newest– Autonomous Drills ©2018, Rio Tinto, All Rights Reserved
Slide 90: We have been busy building our integrated system; underpinned by pioneering advancements in technology…
We have been busy building our integrated system; 7 underpinned by pioneering advancements in technology… 2007 2009/10 2010/11 2014 2016 2017/18 Operations Centre Automated trucks Autonomous Drilling Deployment of ADS Mobile-device First Autonomous and automated truck Pilbara ‘A Pit’ trial System (A
Slide 91: … and we are the pioneers of autonomous technology
8 … and we are the pioneers of autonomous technology Autonomous haul trucks - AHS Autonomous drills - ADS AutoHaul® Improved safety, productivity & operating costs 11 autonomous drills across two sites – Full implementation – West Angelas & Yandicoogina end 2018, regulator approval completed 95 auto
Slide 92: Supporting the journey……
9 Supporting the journey…… Pioneering technology Innovative projects Skills of the future Advanced Decision Support AutoHaul® Connected Teams Integrated Automation Machine to machine control loops Skills for jobs of the future Big Data Infrastructure Productivity monitoring apps Enhanced Data Capabi
Slide 93: Industry leading technology driving productivity…
10 Industry leading technology driving productivity… Machine / Asset Networked Customer to ore Automation machines body knowledge Improved safety and productivity Control systems connected End-to-end value optimisation at all interfaces Autonomous drills (ADS) Artificial Intelligence across Mine Aut
Slide 94: The operations centre will continue to extend our competitive advantage by…..
The operations centre will continue to extend 11 our competitive advantage by….. Integrating and managing the fully integrated system. Maximising value from our operations, with value underpinning decision making. Right quality at the right time delivered through the dynamic system. Leading in techn