Rio Tinto Plc · LSE:RIO
Rio Tinto — Financial community site visit (15-20 June 2008)
23 slides from Rio Tinto's conference presentation, Jun 18, 2008
Slide 1: Expansion Projects
Expansion Projects Warwick Smith Managing director, Expansion Projects 18 June 2008
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and comprises 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: This
Slide 3: Overview
Overview • Rapid progress being made on expansion projects – update on current expansion to 220mtpa in the Pilbara – update on planned expansion to 320mtpa in the Pilbara • Established relationships with key suppliers and contractors • Well understood approvals process • Continuing to deliver on tim
Slide 4: Major milestones to 220mtpa and beyond
Major milestones to 220mtpa and beyond 320+ Long Lead Items Major capital commitments for each year Automated Train Operations 100% commitment basis Mesa A and Brockman 4 8000 mine developments Hope Downs expansion Cape Lambert upgrade Cumulative 6000 Hope Downs commitment over $8bn Cumulative, $US
Slide 5: 220mtpa capacity in the Pilbara brought forward to the end of 2008
220mtpa capacity in the Pilbara brought forward to the end of 2008 • 220mtpa capacity targeted H1 2009 - ahead of schedule (now by end of 2008) • Work on Cape Lambert expansion to 80mtpa continues – piling now on track, all milestones expected to be met • Hope Downs 1 North construction complete • H
Slide 6: Pilbara planning for 320mtpa capacity
Pilbara planning for 320mtpa capacity • Additional port capacity of 100mtpa • 6 new mine developments / expansions • Supporting infrastructure – Rail – Water – Power – Accommodation • Some of the long lead items have already been approved and ordered – Port – Rail – Yandi 6 Financial community site
Slide 7: Mine developments to support 320mtpa in the next 5 years
Mine developments to support 320mtpa in the next 5 years Dampier incorporating: • Parker Point • East Intercourse Island Source: Rio Tinto 7 Financial community site visit (15 - 20 June 2008)
Slide 8: The initial mine development pipeline is based in west Pilbara, close to existing infrastructure
The initial mine development pipeline is based in west Pilbara, close to existing infrastructure Yandi+8 Increase Yandi production to 60mtpa 8mtpa Paraburdoo Increase Paraburdoo production to 28mtpa 6mtpa 14mtpa (Phase II) Expand current capacity from 22mtpa to 36mtpa Brockman 4 (Phase II). Introduc
Slide 9: Rail works planned for 320mtpa
Rail works planned for 320mtpa Dampier incorporating: • Parker Point • East Intercourse Island Source: Rio Tinto 9 Financial community site visit (15 - 20 June 2008)
Slide 10: Port expansion to enable 320mtpa
Port expansion to enable 320mtpa • Pre-feasibility study New approach jetty and wharf into the expansion HOF of the Pilbara to 100mtpa stockyard 320mtpa is progressing well • Expect investment decision in 2009 New car dumper facility • Targeting 320mtpa operating rate by end 2012 Cape Lambert, Weste
Slide 11: Port expansion to enable 320mtpa, with optionality to 420mtpa
Port expansion to enable 320mtpa, with optionality to 420mtpa • Significant Wharf extension opportunity to HOF expand Cape Lambert by a +100mtpa stockyard further 100mtpa, taking Pilbara capacity to 420mtpa 2 new car dumpers • Extension of wharf • Additional stockyards • 2 new car dumpers Cape Lambe
Slide 12: $667 million recently committed to 320mtpa infrastructure and mine studies
$667 million recently committed to 320mtpa infrastructure and mine studies Possible Cape Lambert construction camp layout • Port – Early works – Equipment & materials – Engineering services – Construction camps • Rail – Construction camps – Early works – Rail plant Possible layout of HOF / tug harbo
Slide 13: Excellent supplier relationships and supply chain management
Excellent supplier relationships and supply chain management • Collaborative approach to planning involving major suppliers and contractors upfront • Long term relationships with EPCM’s, suppliers, and contractors providing seamless transition between projects – sequence engineering and construction
Slide 14: Holistic approach to approvals coordination
Holistic approach to approvals coordination • Substantial engagement with State and Local government on a holistic 320mtpa expansion programme basis versus individual projects • Ongoing consultation with government bodies at each stage of project development • Streamlining internal processes to ensu
Slide 15: Delivering on time and on budget
Delivering on time and on budget Iron ore expansion projects (>A$300m) 120% Over budget Behind schedule 100% 80% Under budget Ahead of schedule 60% 40% 20% Budget 0% Dam pier Port to Yandi to 52m tpa Dam pier Port to Hope Dow ns Cape Lam bert Hope Dow ns Time 116m tpa 140m tpa to 80m tpa South (fore
Slide 16: Extensive drilling programme continues
Extensive drilling programme continues Rio Tinto Pilbara iron ore reserves* • Approved resources are being (million tonnes) 3,000 converted into recoverable and CAGR 7.0% 2,500 viable reserves 2,000 1,500 • Resource replenishment increasing 1,000 the optionality of our Tier 1 assets 500 • Over 2.26
Slide 17: Additional potential to expand resources at existing operations and undeveloped deposits
Additional potential to expand resources at existing operations and undeveloped deposits Brockman ores grade/tonnage curve 12 Rev ised criteria Current Criteria 10 Target upside: Potential uplift (from 0 to Up to 8 4.1bt) through additional marketing and 4.1bt metallurgical - processing studies 6 Bt
Slide 18: Remote Operations Centre (ROC) - a key foundation of our Mine of the future
Remote Operations Centre (ROC)- a key foundation of our Mine of the future • A central facility where systems of assets and processes are Power Plant remotely operated and optimised Processing Operations Rail Plant Operations • The ROC will Operations Remote – provide a link between operations Minin
Slide 19: High-tech tools to facilitate mine planning
High-tech tools to facilitate mine planning • Evaluation, Planning and Innovation Centre (EPICentre) completed in December 2006 • Designed to foster and promote an innovative immersive approach within and across-discipline collaboration • Provides a working environment to improve the quality of tech
Slide 20: Summary
Summary • 220mtpa capacity now scheduled for completion end of 2008 • Cape Lambert and Hope Downs South expansions progressing • Rapid progress is being made on 320mtpa expansion project • Additional investment approved with production slots for long lead items progressing • Projects are on time and
Slide 21: Expansion Projects
Expansion Projects Warwick Smith Managing director, Expansion Projects 18 June 2008
Slide 22: Exploration targets are supported by significant work
Exploration targets are supported by significant work • Our exploration targets build on a huge body of knowledge and vast experience, gained over Rio Tinto’s 40 years of exploration and mining in the Pilbara region • The stratigraphy and lithologies that host these targets are well understood. Ther
Slide 23: Reporting of Exploration Targets
Reporting of Exploration Targets John Phillips, Pilbara Resources Competent Person: the Exploration Targets (being reported under Section 18 of the JORC Code) are based on assessments of prospects within Rio Tinto’s Pilbara Tenure which are supported by surface mapping, geophysics, grid drilling, me
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