Rio Tinto Plc · LSE:RIO
Rio Tinto — Macquarie Australian Conference (May 2008)
23 slides from Rio Tinto's conference presentation, May 7, 2008
Slide 1: Uranium: A clear future
Uranium: A clear future Macquarie Australian Conference Graeme Hunt – President Uranium and Olympic Dam Development
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, any securities, nor does it c
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) Information for US Holders of Rio Tinto Limited Shares BHP Billiton Limited is not required to, and does not plan to, prepare and file with the SEC a registration statement in respect of the Rio Tinto Limited Offer. Accordingly, Rio Tinto Limited shareholders should carefully
Slide 4: Agenda
Agenda • Olympic Dam is a world class and superior resource • Strong nuclear demand growth prospects • Nuclear key to address climate change • Carbon price rewrites nuclear economics • China impact in the uranium industry
Slide 5: bhpbilliton
a i =i ed bhpbilliton (uarldap) 1601 nfo juowmeny - uIIED IHN Bot 1oung PHIEEN, (iarldap) wea ard io (add) araned (uaddog) Bueqse15, neyununy aldo puessierennm uaresnouy alo anon ayer sefip eaniger eu, Bussoy eae ny sio9 ASO 8 weg IsenyeIo9 ug epppunasa wed adutio | pup | geueanbnug | puaueL
Slide 6: Olympic Dam: A world class resource
Olympic Dam: A world class resource Notes: a) 100% of production shown. Split of bubble 55% Rio Tinto, 45% BHP Billiton. b) Bubble size reflects Rio Tinto’s current 19.9% exposure to Oyu Tolgoi. Rio Tinto has options to increase its ownership interest to 46.6%. Olympic Dam relative to Rio Tinto’s un
Slide 7: Agenda
Agenda • Olympic Dam is a world class and superior resource • Strong nuclear demand growth prospects • Nuclear key to address climate change • Carbon price rewrites nuclear economics • China impact in the uranium industry
Slide 8: The world is well on its way to consuming as much energy in the next 25 years as in modern history
The world is well on its way to consuming as much energy in the next 25 years as it has consumed throughout modern history OECD FSU Emerging Markets 2,500 5,000 7,500 10,000 12,500 15,000 World Primary Energy Use (million tonnes of oil equivalent) * At a hypothetical world average growth rate of 1%
Slide 9: Primary energy consumption is strongly correlated to economic development
Primary energy consumption is strongly correlated to economic development Source: World Bank, Government Statistics for Taiwan, BP Statistical Review of World Energy (2007) Primary energy use (tonnes of oil equiv/capita) 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 GDP/Capita
Slide 10: China's annual power output is growing at a rate equivalent to a major European country
China’s annual power output is growing at a rate equivalent to a major European country Power output added from previous year UK’s total power output today China’s Growing Power Output (in billion kWh)
Slide 11: Energy Issues?
Energy Issues? • Power generation and distribution • Energy efficiency and intensity • Urban environment and transport • Emissions
Slide 12: Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East
Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East Notes: a) Source: International Nucelar Safety Centre at ANL, Aug-2005 (www.insc.anl.gov/pwrmaps/world_map.pdf). b) Source: World Nuclear Association (www.world-nuclear.org/info.reactors.html), 17-Oct-2007. Under
Slide 13: Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East
Olympic Dam: Exposure to strong forecast nuclear demand growth – especially in the East Notes: a) Location of reactors that are planned, under construction, and proposed is by country, but does not necessarily show their exact geographical location in a country. b) Source: International Nucelar Safe
Slide 14: Slide 14
Slide 15: Slide 15
Slide 16: Agenda
Agenda • Olympic Dam is a world class and superior resource • Strong nuclear demand growth prospects • Nuclear key to address climate change • Carbon price rewrites nuclear economics • China impact in the uranium industry
Slide 17: Carbon price rewrites nuclear economics
Carbon price rewrites nuclear economics Relative economics at no carbon cost Nuclear Coal Gas Relative economics @ $30/t CO2 Nuclear Coal Gas Relative economics @ $50/ t CO2 Nuclear Coal Gas Sources: WNA, UIC/AUA, CERA, OECD/IEA, US DOE, UK govt, CRU group • Nuclear power is competitive with other g
Slide 18: What if China goes nuclear?
What if China goes nuclear? *Including wind, biomass, oil, etc ** Include power sector and non-power sector thermal coal use (excluding coking coal) Source:NDRC power plant project database; Interviews; expert interviews; BHP Billiton; team analysis Uranium 1,532 2,054 1,532 2,054 12% 4% 26% 33% GW
Slide 19: Impact of carbon emissions
Impact of carbon emissions 13 4 41 Global green house gas emissions growth and abatement requirements (GT CO 2 e*) 4.8 6.7 38.5 China 2.8 US 0.9 EU 8.6 RoW 45.3 59.3 23** Abatement requirement 2030 including abatement RoW EU US China +155% 21.5 * Total emissions, including green house gas emissions
Slide 20: China has been predictable in re-writing capital intensity and delivery
China has been predictable in re-writing capital intensity and delivery 60-66 Months US$3000- US$5000/t installed capacity 40 Months, Greenfields US$1000- 1300/t installed capacity Detailed engineering through commissioning Copper smelters 40 Months + 400kt/yr alumina refinery – construction time 10
Slide 21: Olympic Dam well positioned to meet energy demand
Olympic Dam well positioned to meet energy demand Greenfields Expand open pit add Greenfield concentrator and hydrometallurgy circuits and expand smelter capacity Further expansion of open pit, build new concentrator and hydrometallurgy circuit Sell excess concentrate Stages CONCEPTUAL Output Cu (kt
Slide 22: Nominal copper price ($/lb)
Nominal copper price ($/lb) Escondida Production tpa Cu bhpbilliton
Slide 23: ioe aente ad oo
ioe aente ad oo tap mpg psampasmnanneain
RIO Tinto — Macquarie Australian Conference (May 2008) on 6ix