Rio Tinto Plc · LSE:RIO
Rio Tinto — UBS Iron Ore and Coal Seminar 2010
24 slides from Rio Tinto's conference presentation, Nov 18, 2010
Slide 1: Cover letter to ASX Company Announcements Office
120 Collins Street Melbourne 3000 Australia Postal Address: GPO Box 384D Melbourne 3001 Australia T +61 (0) 3 9283 3333 F +61 (0) 3 9283 3707 For personal use only Company Announcements Office Australian Stock Exchange Limited SYDNEY NSW 2000 18 November 2010 Dear Sir, Attached is a presentation giv
Slide 2: Rio Tinto Coal Australia - UBS Iron Ore and Coal Seminar
For personal use only Rio Tinto Coal Australia UBS Iron Ore and Coal Seminar
Slide 3: Cautionary statement
Cautionary statement For personal use only 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. Forwar
Slide 4: Presentation overview
Rio Tinto Coal Australia For personal use only Presentation overview • Business Update • Industry Outlook • Development Pipeline 3
Slide 5: RTCA Safety
RTCA Safety For personal use only All Injuries Frequency Rate AIFR ratio; number of injuries and medical cases per 200,000 hours worked 3.54 1.35 1.06 0.95 0.76 0.68 0.63 2004 2005 2006 2007 2008 2009 2010 YTD 4
Slide 6: Production is forecast to increase by 7% or 3Mt in 2010
Production is forecast to increase by 7% or 3Mt in For personal use only 2010 and further gains are expected in 2011 RTCA Production Million tonnes; 100% basis Growth per 70 annum 60 ~7% Hard coking • Waste movement at HVO and coal MTW in 2010/11 releases a 50 large amount of coal in 2011/12 Semi so
Slide 7: RTCA has secured infrastructure capacity for future production
RTCA has secured infrastructure capacity for future production but issues within the coal infrastructure system remain For personal use only NSW and Queensland Infrastructure system update NSW Infrastructure Queensland Infrastructure • NSW infrastructure moving forward under long • Goonyella to DBCT
Slide 8: Presentation overview
Rio Tinto Coal Australia For personal use only Presentation overview • Business Update • Industry Outlook • Development Pipeline 7
Slide 9: China and India are expected to sustain strong growth
China and India are expected to sustain For personal use only strong growth Real GDP growth* Percent USA India China World** 12% 9.8% 10% 9.0% 8.5% 8.5% 8.6% 8.6% 8.8% 7.5% 7.6% 7.8% 7.5% 8% 7.4% 6.1% 5.8% 6% 3.7% 4% 2.9% 2.9% 2.6% 2.2% 2% 0.4% 0% 2008 2009 2010 2011 2012 2013 2014 -2% -2.5% -4% * A
Slide 10: Coal imports will be required to meet demand in China and India
Coal imports will be required to meet demand in For personal use only both China and India China and India primary coal demand and production* Million tonnes coal equivalent Demand Production China primary coal demand and production India primary coal demand and production Production Production shor
Slide 11: Analyst consensus suggests a continued high price environment
Analyst consensus suggests a continued high price For personal use only environment Broker price forecasts* Nominal US$/t 250 200 Hard coking 150 coal Semi soft 100 coking coal Thermal 50 0 2009 2010 2011 2012 2013 2014 2015 * Only includes Broker forecasts issued within the last 90 days Source: UBS
Slide 12: Presentation overview
Rio Tinto Coal Australia For personal use only Presentation overview • Business Update • Industry Outlook • Development Pipeline 11
Slide 13: RTQC assets have large resource bases and are expandable
Rio Tinto Queensland Coal (RTQC) assets have For personal use only large resource bases and are expandable Rio Tinto Queensland Coal marketable reserves and resources* Million tonnes; 100% Basis Resource type Blair Athol 187 25 Thermal Kestrel Mine 128 9 137 Hard coking / thermal Clermont 189 15 204
Slide 14: The RTQC pipeline contains Brownfield and Greenfield expansion options
The RTQC pipeline contains a mixture of For personal use only Brownfield and Greenfield expansion options Rio Tinto Queensland Coal expansion options • Clermont – Clermont ramping up to ~12Mt rate, as Blair Athol winds down to ~3Mt – Potential to expand production from 12Mtpa to 15Mtpa • Hail Creek
Slide 15: Winchester South
Winchester South For personal use only Winchester South • Potential for coking products: semi- hard/soft, PCI in addition to thermal • Strengths – Benign location proximate to infrastructure – Extensive historical drilling – Arrangements in place to secure further exploration • 2011 Work plan Operat
Slide 16: Valeria
Valeria For personal use only Valeria • Large thermal resource • Some indications of semi-soft potential • Strengths – Large resource Valeria – Favourable strip ratio – Most areas relatively simple geology Kestrel – Potential for dragline mining • 2011 Work plan – Initiate environmental scoping and
Slide 17: Coal & Allied assets have large resource bases
For personal use only Coal & Allied assets have large resource bases that present expansion options Coal & Allied marketable reserves and resources* Million tonnes; 100% Basis Resource type Bengalla 126 170 296 Thermal MTW 294 659 953 Thermal / SSCC Hunter Valley 278 1,413 1,691 Thermal / SSCC Opera
Slide 18: Coal & Allied development options
For personal use only Coal & Allied has a number of development options beyond achieving the latent capacity available at MTW and HVO Coal & Allied development options • Bengalla expansion – Feasibility study complete – final stages of JV approvals – 1st stage ~7.5mt pa saleable production – 2nd sta
Slide 19: Mount Pleasant
For personal use only Mount Pleasant • Mount Pleasant project is currently proceeding based on the existing development consent – maximum 10.5mtpa ROM • Application for a modification to the existing development consent is being processed – increases flexibility in design • Moved into full feasibili
Slide 20: HVO expansion options
For personal use only HVO expansion options HVO Southern • Part of the Southern tenement under exploration licence • New development consent required • Work plan – OoM to consolidate previously studied options – Initiate prefeasibility in mid 2011 HVO Auckland • Exploration licence currently in rene
Slide 21: MTW underground options
For personal use only MTW underground options • Order of magnitude study has been completed, consolidating all previous work – Seams will be amendable to longwall mining – Assumes South Pit highwall access (low cost) – Accelerated timeline indicates for 5-6mtpa (ROM) long wall operation – Increased
Slide 22: Australian coal industry must navigate a range of other issues
The Australian coal industry must navigate a range For personal use only of other issues to continue to prosper Industry Risks • Approvals timeframes – could delay delivery of Approvals growth projects Community • Conflicting land uses - agriculture, horse studs Relations • Cumulative impacts of min
Slide 23: Australian coal industry must navigate a range of other issues
The Australian coal industry must navigate a range For personal use only of other issues to continue to prosper Industry Risks • MRRT – Principles agreed in July – Sound basis on which to continue to invest in growth – Ensures Australia remains an attractive place to invest – Engaging in the consult
Slide 24: Presentation summary
Rio Tinto Coal Australia For personal use only Presentation summary • RTCA is a large, long life, coal business ideally positioned to take advantage of strong industry prospects • RTCA’s significant growth trajectory is comprised of a range of expansion options at existing sites and new project deve