Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (June 2010)
22 slides from Rio Tinto's corporate update, Jun 23, 2010
Slide 1: ASX cover letter for investor visit presentations
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 23 June 2010 Dear Sir, Attached are presentations given o
Slide 2: Bauxite & Alumina Gladstone investor visit
For personal use only Bauxite & Alumina Gladstone investor visit 23 June 2010 23 June 2010 Rio Tinto Alcan Bauxite & Alumina Investor Visit 1 Rio Tinto Alcan respectfully acknowledges the Traditional Owners, past and present, of the land on which we meet today – the Bailai, the Gooreng Gooreng and t
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: Bauxite & Alumina - where we operate
Bauxite & Alumina - where we operate For personal use only Vaudreuil Montreal CBG (23%) Porto Trombetas (MRN) (12%) Alumar (10%) Singapore Gove Weipa Bauxite Mine Alumina Yarwun Refinery QAL (80%) Sales Office 23 June 2010 Rio Tinto Alcan Bauxite & Alumina Investor Visit 5 Bauxite & Alumina’s priori
Slide 5: Bauxite & Alumina - Health, Safety and Environment
Bauxite & Alumina - Health, Safety and Environment For personal use only Significant focus on improving the HSE performance of our operations B&A Managed Operations (including QAL) Environmental Incidents 30 25 HSE focus areas 20 • HSE leadership 15 10 • HSE risk management 5 • Address high risk are
Slide 6: Employees and our communities
Bauxite & Alumina - employees and our communities For personal use only RTA regional economic contribution • Direct and indirect financial and in-kind contribution to regions – Contributed A$3.3 billion to Gladstone in 2008 alone. • Bauxite & Alumina has over 3,900 employees at our regional sites Co
Slide 7: Cost reduction and cash management
Cost reduction and cash management For personal use only Significant reductions achieved in fixed and Two-step 2009 Caustic strategy: SG&A costs, such as: • Immediately lower consumption efficiency • Contractors, maintenance, overhead through Weipa bauxite mine plan • Discretionary costs • Supplier
Slide 8: Bauxite & Alumina growth options
Bauxite & Alumina growth options For personal use only Guinea (45%) Arnhem land – Gove orbit • ~1.6 – 3.2 Mt • Exploration targets Curua • Exploration target Yarwun Gove • Yarwun 2 - 2 Mtpa • > 3.0 Mtpa Expansion • Expansion options options • Energy options • Gove reserves -186 Mt Amargosa • Explora
Slide 9: Vaudreuil and Alumar overview
For personal use only Operations 23 June 2010 Rio Tinto Alcan Bauxite & Alumina Investor Visit 15 Vaudreuil and Alumar overview Vaudreuil • Production reduced by 75% in 2009 in response to market conditions • Production is now back to 100% capacity • Implementing a new collective agreement that allo
Slide 10: Weipa and QAL overview
Weipa and QAL overview For personal use only 25 Weipa • Production reduced in 2009 in response to 20 market conditions • 7% improvement in unit cash cost in 2009 over 15 2008 despite reduction in tonnage • Poised to take advantage of market recovery Mt 10 – Flexible production capacity – Multiple ex
Slide 11: Gove expansion progress
Gove expansion progress For personal use only • A complex and difficult project – concurrent increase in capacity and improvement in efficiency – scope included upgrades, additional equipment and process interconnectivity – novel construction methods introduced execution risk – high staff turnover •
Slide 12: Gove refinery expansion areas
For personal use only Grinding Precipitation 3rd Digestion Calcination Classification Seed Filtration Boilers/Turbines Evaporation Greenfield Expansion Areas Brownfield Expansion Areas 23 June 2010 Rio Tinto Alcan Bauxite & Alumina Investor Visit 21 Grinding Clarification Precipitation HT Digestion
Slide 13: Gove HSE Performance and production
Gove HSE Performance For personal use only Continuous improvement in safety outcomes • AIFR on continuous performance trend despite difficult operational conditions • Fully integrated Rio Tinto standards • Significant improvements in leadership and employee engagement • Environmental performance imp
Slide 14: Gove fuel conversion
Gove fuel conversion For personal use only Options to address Gove’s fuel oil exposure continue to be developed Coal conversion studies are well advanced • Technology understood • Backhaul of coal on bauxite ships travelling from Gladstone to Weipa • Would replace two-thirds of fuel oil needs • Allo
Slide 15: Yarwun safety and environment
Yarwun safety For personal use only All Injury Frequency Rate per 200,000 hours worked (12 month rolling average) 3.5 3.0 2.5 2010 YTD (May) – 1.43 2.0 1.5 1.0 0.5 05 06 07 08 09 10 05 06 07 08 09 ay ay ay ay ay ay ov ov ov ov ov M M M M M M N N N N N Focus Areas: • Pre-shift meetings • Safety inter
Slide 16: Yarwun 2009 highlights
Yarwun 2009 highlights For personal use only • Exceeded previous production record by 55,000 t • 98% of product on specification • Achieved lowest unit cost of production to date • Achieved 19% productivity improvement Total Tonnes 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 70
Slide 17: Yarwun outlook
Yarwun outlook For personal use only 1st Quartile producer by 2013 • Yarwun 1 – Further incremental output from efficiencies in work management and process improvement • Cogeneration plant operational from September 2010 – 120MW of power sales – Estimated 25% reduction in GHG • Shipping cost reducti
Slide 18: Yarwun plant layout and Yarwun 2 safety
Yarwun 2 plant layout For personal use only Note; Yarwun expansion shown in yellow 23 June 2010 Rio Tinto Alcan Bauxite & Alumina Investor Visit 33 Yarwun 2 safety performance A strong focus on continuous improvement in safety • Pre-Op and Commissioning • Behaviour Based Safety – requires detailed p
Slide 19: Yarwun key features and project status
Yarwun 2 key features For personal use only • Yarwun alumina refinery expansion will add 2.0 Mtpa of capacity to the existing refinery • Total capacity will increase to 3.4 Mtpa • Gas-fired cogeneration facility guarantees low cost “green” energy • Technology used is a replication of Yarwun 1 with a
Slide 20: Yarwun current project status
Yarwun 2 current project status For personal use only Budget: Forecast costs: US$1.9 billion Commitments to date: 86% Total expenditure to date: 66% Project tracking well to budget Procurement: All major equipment now on site All bulk materials committed, with releases to meet schedule All major con
Slide 21: Yarwun achievements to date
Yarwun 2 achievements to date For personal use only • Completion of wharf extension and major tank build projects • Robust employee relationships - zero lost time due to industrial disputes • Managed the project slow down without incident or loss of productivity • Close alignment between the project
Slide 22: Bauxite & Alumina - summary
For personal use only Summary 23 June 2010 Rio Tinto Alcan Bauxite & Alumina Investor Visit 41 Bauxite & Alumina - summary • 2009 was a year in which we began to transform the business • Reduced total cash spent by US$420 million • Significant reduction in fixed and SG & A costs • Completed integrat