Rio Tinto Plc · LSE:RIO
Rio Tinto — Mining and Energy Services Council of Australia (July 2015)
16 slides from Rio Tinto's conference presentation, Jul 16, 2015
Slide 1: Transforming our business
Transforming our business Michael Gollschewski Managing director – Pilbara Mines Mining and Energy Services Council of Australia 16 July 2015
Slide 2: Cautionary statement
Cautionary statement General 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. In this presentation all figures are US dollars unless stated oth
Slide 3: Safety is fundamental to our business
Safety is fundamental to our business Iron Ore injury frequency rate (Injuries per 200,000 hours worked) 2.0 All Injuries 1.8 Lost Time Injuries 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1 2003 04 05 06 07 08 09 10 11 12 13 14 2015 Notes: 1 – Year to date (January to May) © 2015, Rio Tinto, All Rights Res
Slide 4: Our vision and strategy
Our vision and strategy • Production at the right cost 1. Production 2. Value-driven at the Right Cost growth • Value-driven growth Our vision • Maximising portfolio value To remain the best iron ore producer in the • Laser-sharp focus: world o safety 3. Maximising portfolio value o operational perf
Slide 5: About Rio Tinto Iron Ore
About Rio Tinto Iron Ore Pilbara operations Cape Lambert (A+B) City Parker Point Port Hedland Town East Intercourse Dampier Wickham Road Pilbara Operations Karratha Roebourne Mine Australia Port Pannawonica Rail Perth Onslow Mesa A Mesa J Nammuldi • 15 mines Brockman 2 Brockman 4 Marandoo • 360 haul
Slide 6: More about Rio Tinto Iron Ore
More about Rio Tinto Iron Ore 1 Drill & Blast 2 Load & Haul 3 Process 4 Rail 5 Ship > 12,000 kilometres > 1 billion tonnes 5 gigawatt hours > 20,000 kilometres > 300 million tonnes drilled each year rock moved per year electricity per day rail travel per day ore shipped annually RUSSIA Equivalent to
Slide 7: Productivity drives value in current market conditions
Productivity drives value in current market conditions Iron Ore price composite (2015$/dmt excl. freight) 200 Historical China Expansion Transition “New Normal” 150 100 50 0 1988 1992 1996 2000 2004 2008 2012 2016 2020 Cost curve (Mtpa; $/dmt CFR China 62% Equivalent; 2014 Q4) 150 100 50 Rio Tinto P
Slide 8: Positioning our business to succeed
Positioning our business to succeed • Moving from growth to state of constant improvement: o Focus attention on operations o Optimise system o Improve productivity o Drive down costs • Accountability across business • ‘Sweating’ assets delivering value © 2015, Rio Tinto, All Rights Reserved
Slide 9: We are looking at every opportunity...
We are looking at every opportunity... • Systems and procedures Simplify • Work rosters • Maintenance Streamline • Structure • Process • Capital expenditure Reduce • Operating costs • Inventory and warehousing costs • Duplication of roles and work Remove • Non-value add work • Non-essential costs (e
Slide 10: Transformation through focus on productivity
Transformation through focus on productivity Production at the right cost Continuous Improvement Technology and Innovation Improvement Culture System wide Mine of the FutureTM Make a difference • High value initiatives • Autonomous technology • Improving the workplace Site specific • Remote operatio
Slide 11: System-wide improvement
Bilinnium System-wide improvement Rock star High value initiatives System-wide projects with dedicated cross-functional teams that deliver significant improvements Rehandle Reduction Conveyor Frenzy Bilinium Rockstar • Reduction of 16 Mt in 2014 • Belt life increased by 30% • Departure conformance u
Slide 12: Site-specific improvement
Site-specific improvement Value chain improvements Assisted improvement projects targeting value chain bottlenecks at specific sites Stacker capacity (kt per hour) Wait for trucks (t lost per day) Truck productivity (t per truck hrs) 9.0 300 600 TMM 8.5 225 500 Ex-pit 8.0 7.5 150 400 2012 2013 2014
Slide 13: Embedding an improvement culture
Embedding an improvement culture Health & safety Productivity & cost Make it count Small changes make a big difference • Identifying and rectifying hazards • Improving efficiency and eliminating waste • 1800 nominations in 2014 • Costs reduced by tens of millions in 2014 © 2015, Rio Tinto, All Right
Slide 14: Working with our suppliers - top 50 supplier programme
Working with our suppliers - top 50 supplier programme • Recognised we must also work differently with our suppliers • Top 50 supplier opportunities: o Work better, smarter and cooperatively Nammuldi reclaimer o No compromising safety o Seek suppliers’ ideas and experience o Innovative suppliers hel
Slide 15: Conclusion
Conclusion • Our strategy has remained constant and clear • Iron ore market fundamentals remain robust • Safety and wellbeing of our people is paramount • We are working differently © 2015, Rio Tinto, All Rights Reserved
Slide 16: Questions
O}UILONY Questions
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