Slide 1: Diavik Diamond Mine
25 June 2014 Diavik Diamond Mine Jean-Marc Lieberherr, Managing director, Rio Tinto Diamonds Marc Cameron, President, Diavik Diamond Mines
Slide 2: Cautionary statement
2 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
Slide 3: The Diavik Joint Venture
3 The Diavik Joint Venture 60% 40% owner and operator owner Rio Tinto Dominion Diamond Corp ©2014, Rio Tinto, All Rights Reserved
Slide 4: Health and safety
4 Health and safety • Our most important value • Strong safety performance • Certified to ISO international standards • Mine rescue team comprised of employees ©2014, Rio Tinto, All Rights Reserved
Slide 5: Island-based Diavik Diamond Mine
5 Island-based Diavik Diamond Mine Processed kimberlite containment Diavik plant site Wind farm Waste rock pile A418 dike & pit Airstrip A154 dike & pit Future fish habitat Lac de Gras ©2014, Rio Tinto, All Rights Reserved
Slide 6: Diavik at a glance
6 Diavik at a glance • Located on an island in the tundra − 210 km south of Arctic Circle − 300 km northeast of Yellowknife • Temperature range +20°C to -45°C • 4 kimberlite pipes – 3 in operation • Strong free-cash flow generation • The current mine plan has production ending in 2023 • 2000-02 cons
Slide 7: Operations – underground mining
7 Operations – underground mining • 2013 – first full year as all underground mine • 2013 – 2.1mt ore producing 7.2m carats • 2014 on target to exceed plan of 1.9mt and 6.9m carats • Forecast to produce 5.5m to 6m carats annually 2015-2017 ©2014, Rio Tinto, All Rights Reserved
Slide 8: Operations – underground mining
8 Operations – underground mining • Technologically advanced mine using the best equipment − Remote scoop operations − Computerized drill patterns • Mining methods: − Sublevel retreat A154 South and A418 − Blasthole stoping A154 North ©2014, Rio Tinto, All Rights Reserved
Slide 9: Operations – processing
9 Operations – processing • Record processing performance in Q1 2014 • Capable of recovering all economic diamonds • Product sorting facility in Yellowknife cleans and sorts goods ©2014, Rio Tinto, All Rights Reserved
Slide 10: Community relations
10 Community relations • Modern formal agreements with 5 Aboriginal communities • Formal agreement with local government • 2013 – Aboriginal & Northern employment increased 2% • 2013 – Northern business spend increased 5% ©2014, Rio Tinto, All Rights Reserved
Slide 11: Award winning wind farm – proven technology
11 Award winning wind farm – proven technology • Benchmark for cold climate • Rio Tinto’s first wind farm • Four 2.3 megawatt turbines • 2013 – 8.4% power and 3.8m litres diesel offset • 2014 Q1 – 11.1% power and 1.4m litres diesel offset • $31m capex, eight year payback ©2014, Rio Tinto, All Rights
Slide 12: Diavik kimberlite pipes
12 Diavik kimberlite pipes ©2014, Rio Tinto, All Rights Reserved
Slide 13: Diavik reserves and resources (31 December 2013)
13 Diavik reserves and resources (31 December 2013) • A154 South pipe − 2.2 mt reserves/grade 3.6cpt • A154 North pipe − 7.5 mt reserves/grade 2.1 cpt • A418 pipe − 6.5 mt reserves/grade of 3.4 cpt • A21 (resource only) − 3.6 mt measured resources/ grade 2.8cpt − 0.4 mt indicated resources/ grade 2.
Slide 14: Diavik current mine plan
14 Diavik current mine plan Reserves (Tonnes Millions) 2.5 2.0 1.5 1.0 0.5 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 A154S A154N A418 ©2014, Rio Tinto, All Rights Reserved
Slide 15: Diavik current mine plan
15 Diavik current mine plan Reserves (Carats Millions) 7 6 5 4 3 2 1 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 A154S A154N A418 ©2014, Rio Tinto, All Rights Reserved
Slide 16: Current mine plan
16 Current mine plan Capital and operating costs C$M (2014 real terms) 500 450 400 350 300 250 200 150 100 50 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Operating Cost Capital Cost ©2014, Rio Tinto, All Rights Reserved
Slide 17: A21 kimberlite update
17 A21 kimberlite update • Design and approach to dike construction completed with initial technical review of cutter soil mixing technique for construction being approved • Key scope of work packages completed • Costing estimates being finalized • Project roles defined and potential candidates iden
Slide 18: Tibbitt to Contwoyto Winter Road Joint Venture
18 Tibbitt to Contwoyto Winter Road Joint Venture • Joint Venture between Rio Tinto, Dominion Diamond Corp & DeBeers • 353 km to Diavik • ~$20m annual cost to build/operate • Operates for two months • 87% of road built on frozen lakes ©2014, Rio Tinto, All Rights Reserved
Slide 19: Diavik – a world class diamond mine
19 Diavik – a world class diamond mine • Safety will always be our first priority • A proven underground mine • Sustainable cost base • Growth opportunities – A-21 • Strong community partnerships in place for life of mine ©2014, Rio Tinto, All Rights Reserved
Slide 20: Thank you
20 Thank you ©2014, Rio Tinto, All Rights Reserved