Slide 1: Kennecott Utah Copper
1 Kennecott Utah Copper Andrew Harding Chief executive, Copper June 2012 ©2012, Rio Tinto, All rights reserved
Slide 2: Cautionary statement
21 June 2012 | 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-loo
Slide 3: Near-term volatility is likely to persist
21 June 2012 | 3 Near-term volatility is likely to persist Commodity price & mining equity indices Greek and Spanish Govt. borrowing costs Daily price index (1 January 2010=100) 10-year bond yield (%) 140 8 45 Spain [LHS] 130 7 40 Greece [RHS] 120 35 6 110 30 100 5 25 90 4 20 80 3 15 70 Credit Suiss
Slide 4: Tier one assets deliver reliable cash flows and superior performance despite macro volatility
21 June 2012 | 4 Tier one assets deliver reliable cash flows and superior performance despite macro volatility Cash flows from operations EBITDA margin by product US$ billions 2011 calendar year 80% Rio Tinto 25 70% Peer group range 60% 20 Dividends from EAUs Cash flows from 50% consolidated operati
Slide 5: Long-term copper outlook remains positive
21 June 2012 | 5 Long-term copper outlook remains positive Demand has plenty of growth potential Copper supply-demand (Mt) Per capita refined copper consumption (kg) Likely growth scenarios Cu kg/pp Germany USA China Japan India 30 Demand scenarios 5% 18 Supply scenarios 16 Probable Brook Hunt (3.7%
Slide 6: Oyu Tolgoi: 85% complete, first commercial production by 2013
21 June 2012 | 6 Oyu Tolgoi: 85% complete, first commercial production by 2013 June 2009 August 2011 June 2012 ©2012, Rio Tinto, All rights reserved
Slide 7: Oyu Tolgoi: a world class asset
21 June 2012 | 7 Oyu Tolgoi: a world class asset • First tier one copper mine developed in the last 10 years • A top five copper producer and major Large gold producer • Average annual production of 425kt of copper and460koz of gold • 3.1bt resource and 1.4bt reserve • Potential for a > 50 year mine
Slide 8: Phased development for a world class asset
21 June 2012 | 8 Phased development for a world class asset Phase 1 • Open pit development • 100,000 tonne per day concentrator • Preliminary development of UG mine Phase 2 • Complete underground development • Mill expansion • Power station ©2012, Rio Tinto, All rights reserved
Slide 9: Ivanhoe Mines: majority, 51% ownership of Ivanhoe secured
21 June 2012 | 9 Ivanhoe Mines: majority, 51% ownership of Ivanhoe secured Equity financing • Subscription price of US$7.00, CAD$7.17 per share US$1.8 Billion • Rio Tinto standby commitment for the rights offering Bridge loan • Ensures Oyu Tolgoi development remains on track • In addition to US $1.8
Slide 10: Kennecott: studies to increase Bingham Canyon life of mine are advancing
21 June 2012 | 10 Kennecott: studies to increase Bingham Canyon life of mine are advancing • Push back south wall by 7%, deepen pit 8% • Underground exploration decline underway • Tunnel boring system trial • Upgrades to flotation circuit • Copper NuWave™ technology trial • 275 MW gas fired power ge
Slide 11: Kennecott North Rim Skarn, pathway to underground
21 June 2012 | 11 Kennecott North Rim Skarn, pathway to underground First step is near term development North Rim Skarn of North Rim Skarn* − 20 million tonnes mineral resource at 3.6% Cu − 1.0 million ounces of contained gold − $165 million approved for pre-feasibility studies to 2014 − Production
Slide 12: La Granja potential for 500ktpa Cu for 40+ years
21 June 2012 12 | La Granja potential for 500ktpa Cu for 40+ years – 100% RT owned – Substantial additional mineral inventory identified – Part of broader porphyry district – Significant potential – Multiple investment decision points enables effective risk management – Starter mine conceptually pla
Slide 13: Resolution first production +2021, potential 600ktpa
21 June 2012 | 13 Resolution first production +2021,potential 600ktpa – High quality resource – 1.47% copper with significant molybdenum Shaft 9 – Top of resource about 1.5km deep, with Shaft 10 production level 2km deep – Land exchange bill approved in US House of Representatives – Sinking shaft No
Slide 14: Grasberg and Escondida: continued investment in our assets
21 June 2012 | 14 Grasberg and Escondida: continued investment in our assets Escondida Grasberg – Organic Growth 1 Project – Grasberg Block Cave – Oxide Leach Area Project – Deep Mill Level Zone (DMLZ) – Ore access, bioleach and de-bottlenecking – 40% of total production 2021 ©2012, Rio Tinto, All r
Slide 15: Leveraging our competitive advantage
21 June 2012 | 15 Leveraging our competitive advantage Tunnel boring system – Commissioning at NPM in progress – Trials to commence in H2 2012 – Potential to significantly reduce UG Construction time Copper NuWave™ recovery innovation – Pilot plant in construction at Kennecott – Commissioning Q2 201