Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (June 2006)
9 slides from Rio Tinto's corporate update, June 2006
Slide 1: Hunter Valley Operations
Hunter Valley Operations Rick Fairhurst General Manager – Operations Financial community site visit – June 2006 Safety performance HVO Lost Time Injury Frequency Rate HVO Total 5.0 4.0 3.0 2.0 1.0 0.0 01 02 03 04 05 D YT 20 20 20 20 20 06 20 2 Financial community site visit – June 2006 1
Slide 2: Map of RTCA's Hunter Valley mines; Development history of HVO
Map of RTCA’s Hunter Valley mines N HVO HVO SOUTH WARKWORTH NORTH MT PLEASANT MT THORLEY BENGALLA 3 Financial community site visit – June 2006 Development history of Hunter Valley Operations • Hunter Valley Operations (HVO) is located 24km north west of Singleton. • HVO combines Hunter Valley No1 &
Slide 3: Key facts; Environment and community
Key facts • Ownership structure: – A wholly owned subsidiary of Coal & Allied (Rio Tinto 75.71%) • 680 employees • Mobile equipment: – 2 draglines – 5 shovels and 1 excavator – 51 haultrucks – 9 frontend loaders – 7 drills • 3 coal beneficiation plants • 2 coal loading points 5 Financial community s
Slide 4: HVO production; HVO has substantial reserves and resources
HVO production 2001 2002 2003 2004 2005 Prime Waste (Mpbcm) 68.6 84.1 71.4 78.3 77.9 ROM Coal Production (MROMt) 17.3 17.0 15.8 16.8 15.9 Strip Ratio 3.97 4.93 4.53 4.67 4.90 Saleable Production (Mt) 12.2 12.6 12.0 13.3 12.4 Domestic 15% Export coking (semi-soft) 16% Export thermal 69% 7 Financial c
Slide 5: Profile of the coal deposit; Typical mining section
Profile of the coal deposit West Pit Leases North Pit Leases Cheshunt Leases North/Alluvial Lands Wambo Whynot Glen Munro Blakefield Hunter River W oodl ands Hill Broonies Arrowfield Bayswa Up ter Wa Bowfield rkw p Lo er w ort Pikes Gu Lemingt Pie er M h M lly on rce t t. B, C an dD field . Arth Ar
Slide 6: Process flow; Operating cash cost breakdown
Process flow Loop Coal in pit Bin Bin Reject Plant Clean Coal Product Loading Point PWCS Newcastle 11 Financial community site visit – June 2006 Operating cash cost breakdown Business Services 6% Mechanical Parts & Repair Items 12% Employee Related 31% External Services 23% Explosives & Explosive Ac
Slide 7: Significant increases in inputs; Sustaining capital expenditure
Significant increases in inputs HVO Fuel Cost per bcm total material moved - indexed 2.50 2.00 1.50 1.00 0.50 - 2002 2003 2004 2005 13 Financial community site visit – June 2006 Sustaining capital expenditure • Sustaining capital estimated to average $31 million per annum over life of mine • Peaks a
Slide 8: HVO exports by destination - 2005; Current business opportunities / challenges
HVO exports by destination - 2005 Europe 10% Other 21% Japan 56% Taiwan 7% Total exports = 10.9mt Korea 6% 15 Financial community site visit – June 2006 Current business opportunities / challenges • Business value improvement - Continued emphasis on performance improvement initiatives - Participatio
Slide 9: Summary
Summary • Safety remains a key priority • Environmental management is a hallmark of HVO • Production solid – aligned to infrastructure capacity • Planned improvements in: – Equipment productivity – Processing performance 17 Financial community site visit – June 2006 9