Rio Tinto Plc · LSE:RIO
Rio Tinto — Corporate Update (September 2024)
130 slides from Rio Tinto's corporate update, Sep 25, 2024
Slide 1: Notice to ASX: Presentation for site visit
Notice to ASX Presentation for site visit to North American operations 24 September 2024 Attached are the presentations made to the f inancial community attending the site visit this week at Rio Tinto’s Aluminium and Iron & Titanium operations in Quebec, Canada. The presentations can also be found o
Slide 2: Notice to ASX/LSE Contacts
Notice to ASX/LSE Contacts Please direct all enquiries to media.enquiries@riotinto.com Media Relations, Media Relations, Media Relations, United Kingdom Australia Canada Matthew Klar Matt Chambers Simon Letendre M +44 7796 630 637 M +61 433 525 739 M +1 514 796 4973 David Outhwaite Alyesha Anderson
Slide 3: Financial community visit to North American operations
For personal use only Financial community visit to North American operations September 2024
Slide 4: Cautionary and supporting statements
Cautionary and supporting statements For personal use only This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (together with their subsidiaries, forward-looking statements. These forward-looking statements speak only as of the date of this report. Rio Tinto “Rio Tinto”). By a
Slide 5: Cautionary and supporting statements (cont.) - Aluminium
Cautionary and supporting statements (cont.) For personal use only Aluminium - Mineral Resources and Ore Reserves Sangaredi Mineral Resources and Ore Reserves referenced on slide 45 are based on the Mineral Resources and Amrun Mineral Resources and Ore Reserves referenced on slide 45 are based on th
Slide 6: Cautionary and supporting statements (cont.) - Minerals
Cautionary and supporting statements (cont.) Minerals - Mineral Resources and Ore Reserves Iron Ore - Mineral Resources and Ore Reserves For personal use only Rio Tinto Iron and Titanium (RTIT) Mineral Resources and Ore Reserves referenced on slides 88 and 124 are Iron Ore Company of Canada (IOC) Mi
Slide 7: This week's programme
This week’s programme For personal use only Montréal Hub Headquarters of our Provides key expertise industry-leading to our global operations aluminium business Saguenay – Lac-Saint-Jean North America’s Investing in sustainable low-carbon aluminium growth and hub decarbonisation Sorel-Tracy The worl
Slide 8: Overview of presentations
Overview of presentations Topic Presenters For personal use only Safety share Mike McCann, President and Chief Executive Officer, Iron Ore Company of Canada Our North American footprint Jérôme Pécresse, Chief Executive, Aluminium Market update Will Millsteed, Head of Market Analysis, Rio Tinto J
Slide 9: Presenters
Presenters For personal use only Jérôme Pécresse Will Millsteed Amy Abraham Sébastien Ross Jonathon McCarthy Chief Executive, Head of Market Analysis, Vice President, Sales Managing Director, Atlantic Chief Decarbonisation Aluminium Rio Tinto Aluminium Operations Aluminium Officer, Rio Tinto Ulric A
Slide 10: Land acknowledgement
Land acknowledgement For personal use only 8
Slide 11: Safety share: Labrador West fire, July 2024
Safety share: Labrador West fire, July 2024 8 July 12 July 22 July IOC Lightning Evacuation Evacuation strike order order lifted For personal use only Champion Iron Ore ArcelorMittal ©2024, Rio Tinto, All Rights Reserved 9
Slide 12: Our North American footprint
Our North American footprint For personal use only Jérôme Pécresse Chief Executive, Aluminium Shipshaw, Canada 10
Slide 13: Largest metals and mining company in North America
Largest metals and mining company in North America We produce the aluminium, For personal use only borates, copper, diamonds, iron ore, scandium and titanium Diavik dioxide North America needs Alouette (40%)2 Nearly 18,000 employees Kitimat Aluminium – Quebec Operations Iron Ore Company ELYSIS of Ca
Slide 14: Market update
Market update For personal use only Will Millsteed Head of Market Analysis, Rio Tinto Alma, Canada 12
Slide 15: Economic growth, industrialisation and urbanisation underpin long term commodity demand
Economic growth, industrialisation and urbanisation underpin long term commodity demand For personal use only Tailwinds from commodity-intensive capital deployment Urban population growth sustained in next decade to decarbonise and secure some supply chains 2020 2040 f Industrial output (market exch
Slide 16: Automotive sector growth driven by income effect and energy transition
Automotive sector growth driven by income effect and energy transition For personal use only Vehicle ownership increases with wealth Global auto sales rising with EV taking up increasing market share Personal vehicles per 1,000 people in 2023 Global auto sales1, million units 700 130 90 United State
Slide 17: Global power renewables and grid investment gain momentum
Global power renewables and grid investment gain momentum For personal use only Renewables growth driven by incremental solar capacity Power grid and energy storage investment driven by US, China and Europe Global power capacity additions, GW Global power grid and energy storage investment1, $ bn (r
Slide 18: Aluminium demand growth driven by energy transition
Aluminium demand growth driven by energy transition For personal use only Global aluminium semis demand growth is driven by electrification of vehicles and grid 1 Global regional demand2 2028 Mt Shares of end-use sectors 2018 2023 2028 North America 11% 10% 10% 12 Other transport 22% 1% 22% 22% 7% E
Slide 19: Global recycled aluminium to grow at higher rate than primary
Global recycled aluminium to grow at higher rate than primary For personal use only Global aluminium primary and recycled share of demand1, % Recycled demand to grow at higher rate on increased demand for recycled content of aluminium 100% 100% 100% 6% 6% 6% Post-consumer scrap (CS) share of demand
Slide 20: China's aluminium capacity cap has been in place for years
China’s aluminium capacity cap has been in place for 7 years For personal use only Capacity, Mtpa Inner Mongolia In 2017, aluminium capacity cap of 45Mt was 6 7 implemented under China supply-side policy Other provinces 5 24 25 25 Capacity additions of ~5Mt, after ~4Mt of illegal capacity removal, m
Slide 21: Attractiveness of aluminium increasing with a mature China
The attractiveness of aluminium is increasing with a mature China, with new capacity mainly driven by non-renewables For personal use only Ex. China 2023-2028 production change1,2, Mt 0.5 0.3 Ex. China’s aluminium supply growth will be Total: 0.2 limited even with China’s cap in place +1.2Mt Renewab
Slide 22: Steeper aluminium cost curve expected by 2040 due to carbon costs
Steeper aluminium industry cost curve expected by 2040 due to carbon costs For personal use only Global aluminium operating costs (real $2023 per tonne) Higher carbon penalties to lift the industry 2023 2040f operating cost curve by 2040 Scope 1 emissions are difficult to abate and account for appro
Slide 23: Demand for TiO2 feedstock continues to grow in line with GDP
Demand for TiO2 feedstock continues to grow in line with GDP For personal use only Global TiO2 feedstock demand by process route, Mt Global TiO2 feedstock supply by region, Mt +3%1 +2%1 +1%1 9.5 +2%1 9.3 9.2 9.3 9.3 9.2 9.1 8.9 8.9 8.9 8.6 8.5 8.5 8.4 8.2 8.1 7.8 7.7 7.7 7.6 7.7 7.7 2018 2019 2020 2
Slide 24: Global feedstock demand has shifted towards China
Global feedstock demand has shifted towards China which has taken the majority of market share For personal use only Global TiO2 feedstock demand by region (China v Rest of World), Mt China has continued to develop its pigment capacity and is now a larger consumer of TiO2 8.1 7.8 feedstock than the
Slide 25: High-grade iron ore to attract premiums with decarbonisation the catalyst
High-grade iron ore to attract premiums with decarbonisation the catalyst For personal use only High-grade fines seaborne supply outlook │Significant growth expected in the Pellet Supply outlook │Growth backed by lower CO2 emission efforts high-grade segment. Iron makers looking to abate carbon will
Slide 26: North America pellet market
North America pellet market – domestic production focused on blast furnace pellets For personal use only BF pellet market │Pellet capacity in North America enough to supply domestic DR pellet market │With fewer DR pellet producers in North America, ~45% of the market. Production switch from BF to DR
Slide 27: Commodity demand growth shaped by three key factors to 2040
Commodity demand growth shaped by three key factors to 2040 For personal use only More people with more wealth = more homes, shops, cities, schools, hospitals, cars and energy Considerable tailwinds from decarbonisation and securing supply chains More balanced industrial growth – all regions growing
Slide 28: Aluminium
For personal use only Aluminium Jérôme Pécresse Chief Executive, Aluminium Grand-Baie, Canada 26
Slide 29: Aluminium is a key differentiator for Rio Tinto
Aluminium is a key differentiator for Rio Tinto For personal use only We have a global footprint of world-class primarily low-carbon, aluminium assets We have stabilised our assets and have a clear pathway to deliver greater returns • Repowering of Pacific Operations • Operational excellence • Acces
Slide 30: Global reach, local presence
Global reach, local presence 15,000 employees For personal use only Women in our workforce 19% Quebec Operations: Alma 4 bauxite mines Arvida-AP60 Arvida Grande-Baie Laterrière ISAL 4 alumina refineries1 Kitimat Vaudreuil 7 hydropower plants Alouette Voreppe Matalco ABI Saint-Jean-de-Maurienne suppl
Slide 31: Continuously improving AIFR underpinned by Safety Maturity Model
Continuously improving AIFR underpinned by our Safety Maturity Model as a blueprint for performance uplift For personal use only Rio Tinto Aluminium AIFR1 Leadership engagement Operational stability 10 Employee We focus on leadership time in the We are leveraging the Safe 9 field, strong employee &
Slide 32: ESG vision anchored around dimensions
Our impeccable ESG vision is anchored around 4 dimensions For personal use only Zero Harm Empowered People Preferred Partner Responsible Aluminium Operate in a way that does not Empower and develop people Be a reliable and attractive Be recognised as the leading harm people and minimises the through
Slide 33: Smelters competitively positioned on the cost curve
Our smelters are competitively positioned on the cost curve with repowering providing an opportunity to further improve For personal use only Atlantic - sustaining our advantage in renewable energy 2024 aluminium cost curve1 We own our hydro power assets in Canada, sustained by long standing water r
Slide 34: Back on track, operating at capacity
Back on track, operating at capacity For personal use only Bauxite production, Mt Guidance 56.1 range1 56Mt 55.1 54.6 54.6 54.3 53Mt 2019 2020 2021 2022 2023 2024F Aluminium production, Mt Guidance range 3.4Mt 3.3 3.2 3.2 3.2 3.0 3.2Mt 2019 2020 2021 2022 2023 2024F 1 Around the top end ©2024, Rio T
Slide 35: Strong track record in a volatile aluminium market
Strong track record in a volatile aluminium market All figures show 2019 – 2023 average1 For personal use only Peers2 25% Peers 14% 7.1% EBITDA margin2 ROCE +43% $3.0 bn $1.3 bn EBITDA Capital expenditure -16% $2.6 bn $1.3 bn 2019 RTA Peers 2023 Cash from operations Free cash flow FCF contribution t
Slide 36: Aluminium demand driven by electrification and low-carbon supply
Aluminium demand driven by electrification and requirement for low-carbon supply For personal use only Global aluminium demand1, Mt Global aluminium primary production, Mt • Strong outlook for aluminium demand driven by global energy transition +3%2 +1%2 +1%2 +2%2 112 71 76 • World aluminium demand
Slide 37: Well positioned for sustainable growth
Well positioned for sustainable growth For personal use only Product offering Technology Low CO2 primary aluminium, Robust technology, R&D recycled aluminium, value-added and innovation foundation products and traceability Bauxite and alumina Partner of choice integrated value chain Partnering with
Slide 38: Product offering
Product offering For personal use only Amy Abraham Vice President, Sales, Aluminium Matalco 36
Slide 39: North America most attractive region for aluminium demand
North America is the most attractive region, with expected aluminium demand growth at 4% CAGR and structurally short supply Primary consumption Recycled consumption For personal use only Positive demand (primary and recycled) profile1 CAGR North America2 Europe excluding Russia Pacific4 4% 2% 3% 12
Slide 40: Well positioned for growth in North America with diversified products
We are well positioned for growth in North America with a diversified set of products For personal use only North American1 demand by product and CAGR, Mt and % Primary Slab Billet2 Foundry Rod3 Remelt 5% 4% 3% 2% 7% 0.9 1.5 0.5 0.9 2.7 0.8 1.3 0.5 2.5 2.6 0.7 1.2 0.4 0.8 0.7 2023 2025 2028 2023 202
Slide 41: Acquired 50% stake in Matalco
We acquired a 50% stake in Combined RTA / Matalco scrap supply chain Matalco, one of North America’s largest recycled producers For personal use only RTA / Matalco Scrap processing End customers are increasing their use of (Giampaolo Group2) Internal scrap Clean industrial recycled aluminium scrap C
Slide 42: Matalco JV strengthens value proposition
Matalco JV further strengthens Rio Tinto’s value proposition Enhanced with Matalco For personal use only Commercial levers Value drivers Technical value-in-use Tailored alloys Specialty products Technical development ESG offerings Impeccable ESG credentials Low CO2 and recycled material Traceability
Slide 43: Rio Tinto as market shaper working with OEMs
Rio Tinto is a market shaper, working closely with OEMs on product development and supporting their ESG goals For personal use only Carbon reduction commitments by 2030 Major global players are launching significant End user relationships with signed MOUs % of Scope 1&2 initiatives to reduce emissio
Slide 44: Well positioned for profitable growth in North America
In conclusion, we are well positioned for profitable growth in the attractive North American market For personal use only Largest and most diversified supplier – primary and recycled products Unique value proposition – technical, supply chain security, scrap take-back – targeting growing market sect
Slide 45: Bauxite and alumina integrated value chain
Bauxite and alumina For personal use only integrated value chain Amy Abraham Vice President, Sales, Aluminium Weipa, Australia 43
Slide 46: Net long in alumina globally
We are net long in alumina globally, long in the Pacific, short in the Atlantic For personal use only Our alumina balance, 2023, Mt Pacific1 Atlantic 5.9 5.9 0.2 2.7 3.5 3.5 5.7 0.5 1.5 2.7 2.0 Supply Demand Supply Demand Third-party JV Partners RTA smelters RTA refineries2 1 Data for smelters and J
Slide 47: Sufficient bauxite to supply our internal needs
We have sufficient bauxite to supply our internal needs Our global bauxite position1 RTA bauxite mine Refinery Third party refinery For personal use only 2023 Ore Mineral Production Reserves Resources (Mtpa) (Mt) (Mt) Vaudreuil 1.6mtpa2 Sangaredi3 14.3 350 7,021 Amrun can supply both Yarwun and Rio
Slide 48: Largest seller of bauxite to China outside Guinea
We are the largest seller of bauxite to China, outside Guinea 320 95 For personal use only China’s bauxite imports 90 300 Volumes (Mt) Prices ($/t) 85 280 Guinea RT average CIF realised price 80 260 Australia – others 75 Growing bauxite demand from China as domestic 240 Australia – Rio Tinto 70 rese
Slide 49: We operate a reliable integrated supply chain
In conclusion, we operate a reliable integrated supply chain For personal use only We have a globally balanced alumina portfolio We continue to work towards more global optionality for our internal supply chain We have sufficient bauxite reserves to supply the growing high margin Chinese import mark
Slide 50: Best operator
Best operator For personal use only Sébastien Ross Managing Director, Atlantic Operations Aluminium Grande-Baie, Canada 48
Slide 51: SPS deployment roadmap
Decades of business improvement knowledge and discipline fuel SPS deployment and best operator ambition For personal use only Significant injection of SPS training Our SPS deployment roadmap • ~700 green and black belts across Atlantic operations 2021 2022 2023 2024 2025 2026 2027 2028 • Lean and SP
Slide 52: Safe Production System is delivering results
Our Safe Production System is delivering results For personal use only SPS deployment bringing operational stability Kaizen – Alma alumina silos Laterrière electrolysis sector: stability improvement compared to daily work plan • Cost reduced from $27m to $2.5m (% vs 2022) Summer months¹ • Interventi
Slide 53: SPS improving stability at Amrun
SPS is delivering improved operational stability at Amrun processing plant SPS case study: Amrun mine3 For personal use only Successful materials handling Kaizen has improved feed stability • Materials handling procedure was developed to address feed instabilities Asset Management Uplift Program • A
Slide 54: Accelerating SPS with digital and AI initiatives
We are accelerating SPS and improving through targeted digital and artificial intelligence initiatives For personal use only Targeted improvement levers Operational stability Remove bottlenecks Reduce cost Support SPS deployment Steady increase in digital initiatives and EBITDA benefit ($m) Grande-B
Slide 55: Best operator vision will continue to deliver
In conclusion, our best operator vision will continue to deliver tangible results For personal use only We have a long This is now firmly We are accelerating history of continuous rooted in SPS deployment at all of improvement our sites Our digital and AI Continuous benchmarking We are empowering ca
Slide 56: Applying our technology
Applying our technology For personal use only Sébastien Ross Managing Director, Atlantic Operations Aluminium Grande-Baie, Canada 54
Slide 57: Leveraging technology to creep production
We continue to leverage technology to creep production For personal use only Average shell productivity across our smelters Alumina feeding (t Al/t.m2 of shell) Longer anodes Productivity gains from technology improvements Innovative across our system collector bar equivalent to the designs addition
Slide 58: Expanding AP60 technology
We are expanding our AP60 technology, delivering some of the most efficient and lowest carbon aluminium For personal use only $1.1bn investment $113m AP60 state of the art Quebec Government smelter technology financial support 96 new pots 160kt1 new capacity (Total 134 AP60 pots) (220kt total AP60 c
Slide 59: Repurposing Arvida site towards zero carbon technologies
We are repurposing our Arvida site towards zero carbon technologies Aluminium recycling centre For personal use only 2025 commissioning • Preparing the site to commence work in September Operational equipment • Furnace under construction • Environmental permit application for operation upcoming Gas
Slide 60: In conclusion: technology
In conclusion… For personal use only Our technology is one of our We have continuously core strengths and equips leveraged our technology approximately 30% of smelter leadership to improve capacity outside China productivity across our assets The repurposing of our Arvida We are progressing options
Slide 61: Partner of choice
Partner of choice For personal use only Sébastien Ross Managing Director, Atlantic Operations Aluminium Kitimat, Canada 59
Slide 62: Partner of choice in the community
We are a partner of choice in the community For personal use only We have long-standing relationships with indigenous communities, local communities and other stakeholders Cultural heritage field survey in Amrun with Traditional • Entered into formal agreements with four indigenous groups in Quebec
Slide 63: Partner of choice with governments in Canada
We are also a partner of choice with governments in Canada Strong, transparent and collaborative relations with Canada’s For personal use only federal and provincial governments Aluminium is on the lists of critical minerals of the Governments of British Columbia, Quebec and Canada AP60 announcement
Slide 64: Energy and decarbonisation
Energy and decarbonisation For personal use only Jonathon McCarthy Chief Decarbonisation Officer, Rio Tinto Alma, Canada 62
Slide 65: Aluminium at the core of a net zero Rio Tinto
Our aluminium business is at the core of a net zero Rio Tinto For personal use only Rio Tinto Scope 1&2 emissions in 2023 Taking action to transform the full value chain toward net zero Equity basis Bauxite Advancing renewable power and low-carbon mining fleets Alumina Bauxite Rest of Rio Tinto Alum
Slide 66: Taking action to 2030 and for 2050
We are taking action to 2030 and for 2050 Today Execution for 2030 Piloting for net zero 2050 For personal use only 5.6MW solar 22.9MW Leveraging at Weipa renewable global battery energy projects electric haul Bauxite across Gove truck pilots and Amrun World’s lowest QAL double World first carbon re
Slide 67: Repowering strengthens competitiveness
Repowering is an opportunity to strengthen our competitiveness For personal use only Improving our position on the cost curve Reducing our carbon intensity across the global fleet 2024 aluminium cost curve ($/t) 2024 aluminium carbon intensity curve (t CO2e/t) 1st quartile 2nd quartile 3rd quartile
Slide 68: Decarbonisation plans that benefit communities and regions
Pursuing decarbonisation plans that benefit our communities and regions For personal use only New Zealand Gladstone, QLD, Australia Quebec, Canada Supporting its energy transition Demonstrating industrial decarbonisation at scale Strengthening a world-class low-carbon ecosystem Repowering includes 1
Slide 69: In conclusion: decarbonisation
In conclusion… For personal use only Decarbonisation of our We are taking real actions aluminium business is core to across our aluminium Rio Tinto and we have clear value chain plans to pursue net zero The transition can make our We are pursuing business stronger and more decarbonisation plans comp
Slide 70: Financials
Financials For personal use only Ulric Adom Chief Financial Officer, Aluminium Alma, Canada 68
Slide 71: Strong cash generation and healthy margins through the cycle
Strong cash generation and healthy margins through the cycle For personal use only Bauxite Alumina Aluminium Operating cash flow generated EBITDA Margin ($bn) (%) 3 42% 45 41% 40 36% 34% 35 28% 28% 28% 2 30 26% 25 21% 21% 21% 20 16% 12% 18% 15 1 9% 12% 10% 10 5% 5 0 0 2019 2020 2021 2022 2023 20241
Slide 72: Responding to the commodity cycle
How we and the aluminium industry respond to the commodity cycle is critical to future performance For personal use only LME aluminium price versus smelter operating margins ($/t) 2020-21 Cycle observations • COVID-19 recovery • Prolonged supply disruption • Sanction sentiment driving supply uncerta
Slide 73: Industry-leading, sustainable and predictable returns
Our aim is to deliver industry-leading, sustainable and predictable returns across the cycle For personal use only Best operator Product offering Cost leadership Portfolio of products Operational stability ROCE Uplift Competitiveness Capital allocation Disciplined working Capex Focused growth capita
Slide 74: Best operator mindset toward 5 percentage point EBITDA margin uplift
We are nurturing a best operator mindset towards a structural 5 percentage point uplift to EBITDA margin For personal use only Gross margin1 | fixed costs2 (% | $m) Production stabilised, close to full capacity, improving margins 58% 56% Focused on enhancing EBITDA by: 52% 50% 49% 49% Expanding our
Slide 75: Product offering exceeded LME by ~20%
Our product offering - exceeded LME by ~20% over the last 5 years, with Matalco to provide further upside For personal use only Portfolio production Mt 3.5 3.4 3.3 3.2 3.3 Full Potential Our share of value added products is increasing 1.8 1.4 1.5 1.7 1.6 Secondary VAP Our geographic proximity to mar
Slide 76: Matalco: growth in North America
Matalco: growth in North America with primary and recycled value-added products For personal use only Scrap spreads have been reducing LME + US MWT manufacturing scrap prices2 US MWT price ($/t) $0.7bn 6063 Press Scrap 50% 5,000 Mill Grade MLCC 6063 Press Scrap spread to MWT Investment in high-quali
Slide 77: Structurally improving trade working capital
We are structurally improving trade working capital, targeting a 10% reduction For personal use only Trade working capital ($bn) +$1.1bn Continuing to remove excess inventories from COVID supply chain disruptions Excess Opportunistic Maintaining opportunistic trade working capital to -10% Investment
Slide 78: Disciplined capital investment through the cycle
Disciplined capital investment through the cycle For personal use only Capital expenditure ($bn) 5-year average (2019 – 2023) Sustaining ~$1bn Investing in the health of our assets, Replacement replacement and decarbonisation ~$0.3bn ESG3 2019 2020 2021 2022 2023 20241 2030F2 Replacement Addressing
Slide 79: Targeting structural uplift in ROCE
Targeting a 5 percentage point structural uplift in ROCE For personal use only ROCE (%) Upside 16 Planned 10 +5pp 7 4 3 3 2019 2020 2021 2022 2023 20241 Price and Product Best operator Disciplined Working capital ESG 2030f3 inflation offering capital management management2 1 Based on annualised H1 2
Slide 80: Conclusion
Conclusion For personal use only Jérôme Pécresse Chief Executive, Aluminium Alma, Canada 78
Slide 81: Value-creating diversification pillar for Rio Tinto
Value-creating diversification pillar for Rio Tinto Anchored in our 4 A clear vision Focused strategic priorities Backed by objectives For personal use only Competitive advantages Leader in fully sustainable and Become truly global low-carbon low-carbon western aluminium aluminium producer productio
Slide 82: Iron & Titanium
Iron & Titanium For personal use only Sophie Bergeron Managing Director, Rio Tinto Iron & Titanium and Diamonds BluesmeltingTM 80
Slide 83: Driving improved returns from strong industry position
Driving improved returns from our strong industry position For personal use only Global leader in TiO2 with 14% market share1, latent capacity to expand production and unrivalled technical capability High quality assets underpinned by long life ore bodies and development options Deep commitment to o
Slide 84: We produce TiO2, iron and steel, and co-products
We produce TiO2, iron and steel, and co-products For personal use only TiO2 Global market of 7.4 Mt Mining Titanium dioxide Key segments: pigments and titanium metal Ilmenite High-purity iron and steel Iron and steel Various metal powders (sintering & powder metallurgy, additive manufacturing) Rock
Slide 85: Titanium occurs naturally in two forms
Titanium occurs naturally in two forms: once processed, it is used in paint, plastics and titanium metal For personal use only Our operations Our customers Our customers’ customers Upstream supply Mid-stream processing End users - pigment TiO2 feedstock - ilmenite TiO2 pigment, sponge & welding Pain
Slide 86: Largest TiO2 feedstock merchant producer
Rio Tinto is the largest TiO2 feedstock merchant producer Quebec TiO2 sales by destination2 Global TiO2 production by key suppliers2 For personal use only Employees & contractors: 10,000 17% Others Women in our workforce3: 15% 36% Europe 19% Americas Eramet China AIFR1: 0.12 Asia 4% 45% 47% Iluka 4%
Slide 87: Iron & Titanium strategy
Our Iron & Titanium strategy: enhancing our leadership position For personal use only Finding better ways to provide the materials the world needs Maintaining leadership in TiO2 and value-added products via commercial excellence, being best operator and mining world-class deposits Commercial Best op
Slide 88: Range of TiO2 products with growing sales into China
We sell a range of TiO2 products with growing sales into China For personal use only Products we sell Growing sales in China Global market share1 and market growth opportunities RTIT TiO2 products regional share of sales 90% 84% 97% 10% 16% 3% Rutile / UGS / Chloride Chloride Sulfate slag 2022 2023
Slide 89: Optimising operational capacity with flexibility
Optimising operational capacity with flexibility to capture growth For personal use only TiO2 production (kt) RTIT’s production fluctuates with market 1400 requirements, and furnace rebuilds and 1200 availability 1000 • Market demand has historically been cyclical 800 600 • 2022 was the highest dema
Slide 90: Long life ore bodies with development options
Long life ore bodies with development options For personal use only Quebec (Havre Saint-Pierre) (100% equity) Havre Saint-Pierre mine in Canada has an Ore Reserve providing for 75+ years of life at current operating rates1 African Ore Reserves support supply for 15 years1 Legend • Ongoing exploratio
Slide 91: Progress on decarbonisation applying renewables and technology
Significant progress on decarbonisation applying renewables and technology Iron & Titanium For personal use only Other Scope 1 Scope 1&2 emissions 5% (2023) Decarbonisation through renewable energy and pyrogenic Minerals options up to 2030, and technology breakthrough afterward Reductants 37% 49% El
Slide 92: Secured social licence and more stable operating environment
We have worked hard to secure our social licence and are seeing a more stable operating environment For personal use only Rio Tinto and the Canadian QMM fiscal and operating RBM agreement with Havre Saint-Pierre - historic government partner to arrangement renewal Khangela Emoyeni Wind partnership a
Slide 93: Focus on stabilising the business
Focus has been on stabilising the business and positioning for improved returns All figures show 2019 – 2023 average For personal use only 1.1 mt 29% TiO2 slag production EBITDA margin $587 m $207 m EBITDA Capex $239 m 7.3% ROCE Free cash flow ©2024, Rio Tinto, All Rights Reserved 91
Slide 94: Targeting a percentage point uplift in ROCE by 2030
We are targeting a 9 percentage point uplift in our ROCE by 2030 For personal use only ROCE (%) 11 +9pp 7 7 6 6 5 2019 2020 2021 2022 2023 20241 External factors Production Extracting Cost 2030f2 full potential management of deposits 1 Based on annualised H1 2024 actuals. 2 2030f is an aspirational
Slide 95: Iron Ore Company of Canada
Iron Ore Company of Canada For personal use only Mike McCann President and Chief Executive Officer, Iron Ore Company of Canada IOC, Canada 93
Slide 96: Significant value to be unlocked from best operator focus
Significant value to be unlocked from our focus on best operator For personal use only Key component of our global iron ore portfolio, with high-grade (>65% Fe) and low-impurity iron ore, which is on Canada’s critical minerals list1 Long-life resource with installed infrastructure in a Tier 1 jurisd
Slide 97: IOC complements global iron ore portfolio
IOC complements our global iron ore portfolio with a high-grade, low-impurity, long-life resource For personal use only Rio Tinto’s global iron ore portfolio IOC products Concentrate for sale (CFS) Top tier • High iron content quality • Very low phosphorus & low alumina • Low levels of all other und
Slide 98: Diversified customer base for high-grade products
Diversified customer base for our range of high-grade products For personal use only Product mix Sales regions 2023 sales volumes % of 2023 sales volumes Europe China Including pellets Supplying concentrate and concentrate; Europe for our portside blending Pellets 42% Saleable Concentrate transferri
Slide 99: IOC operational overview: Labrador Iron Ore
IOC operational overview: Labrador Iron Ore installed infrastructure in a Tier 1 jurisdiction Royalty Corporation 15% Rio Tinto 59% Key statistics For personal use only Mitsubishi Corporation 5 Operational pits 26% 13 Production drills Labrador City 37 Haul trucks Automated train ore delivery system
Slide 100: Strategy aligns to Rio Tinto's four objectives
Our strategy aligns to Rio Tinto’s four objectives For personal use only Rio Tinto Best operator Social licence Excel in development Impeccable ESG Minerals Employer and partner of choice Growth contributor Green economy leader Product Group IOC Stabilise to meet our Use our assets Disciplined growt
Slide 101: Focus on improving operational stability
Responding to challenges: focus on improving operational stability Impact from For personal use only Mine - total material moved1 Concentrate and pellet production forest fires (Mt) (Mt) 18.7 19.1 17.9 17.7 86 83 0.9 1.5 76 77 1.3 1.3 8.1 6.6 8.0 43 44 8.2 41 8.6 43 39 0.4 3.5 23 9.6 10.0 9.6 43 39
Slide 102: Clear pathway to best operator
A clear pathway has been identified to best operator For personal use only Setting the strategy: Initial scoping: Entire value chain: Stabilising operations to achieve safe, cost-effective, consistent production Concentrator 23Mtpa capacity Achieving concentrator capacity will Executing integrated r
Slide 103: Working closely with key stakeholders
Working closely with our key stakeholders For personal use only Governments • High-grade iron ore on federal and provincial critical minerals lists • QNS&L (railway) federally regulated Naskapi Nation of common carrier Matimekush–Lac John Kawawachikamach Communities Signing of fourth partnership agr
Slide 104: IOC ores: unique opportunity for Scope 3 reductions
IOC ores present a unique opportunity for Scope 3 reductions For personal use only Targeting a 50% reduction in Scope 3 emissions from IOC by 2035 Currently ~1.9t CO2/t steel Driving an increase in margins • Increased share of CFS transitioning from BF customers in Asia to integrated DRI/EAF produce
Slide 105: IOC well positioned as a low-carbon mine
IOC is well positioned as a low-carbon mine For personal use only A high-quality, resilient, low-carbon mine with optionality Taking action to decarbonise toward net zero, including for energy transition low-carbon pelletisation • 40MW electric boiler • Hydro-powered plasma burner trials • R&D coke
Slide 106: Improving operational stability at this high-margin asset
Focused on improving operational stability at this high-margin asset All figures show 2019 – 2023 average For personal use only 18 Mt 48% Concentrate production EBITDA margin $1.3 bn 15% EBITDA ROCE1 $390 m $320 m Free cash flow Capital expenditure All figures provided on a 100% basis. | 1 Calculate
Slide 107: Technology and R&D overview
Technology and R&D overview For personal use only Dr Nigel Steward Chief Scientist, Rio Tinto 105
Slide 108: Highlights
Highlights For personal use only Strong proven history of innovation delivery 600+ team members, 120+ projects and $400m annual budget Innovations under development BlueSmeltingTM decarbonisation ELYSISTM zero carbon aluminium smelting NutonTM copper leaching Strong network across academia and indus
Slide 109: Strong proven history of innovation delivery
Strong proven history of innovation delivery - the journey continues For personal use only New routes to extraction Commercial innovation Heavy mining equipment High productivity Titanium from ilmenite Pilbara blend automation alumina refinery & Copper extraction Pink diamonds AutoHaul aluminium sme
Slide 110: Our global R&D footprint
Our global R&D footprint Kennecott Copper Laboratory US Borax ELYSIS Industrial Research and Development Centre For personal use only Aluminium Technology Solutions Iron & Titanium Technology Centre Aluminium Technology Solutions Richards Bay Minerals Iron Ore Laboratories Queensland Research and De
Slide 111: Our disciplined stage gate process
Our disciplined stage gate process For personal use only North American projects Idea SG11 Proof of Concept SG2 Pilot SG3 Demonstration SG4 Implementation Implementation BlueSmelting AP60 Tellurium HVO2 diesel ELYSIS 1 (100kA) ELYSIS 2 (450kA) Scandium Underground Battery Electric Vehicle Nuton 1 SG
Slide 112: BlueSmelting could significantly reduce emissions at Sorel-Tracy
BlueSmeltingTM could significantly reduce emissions at Sorel-Tracy For personal use only Current BlueSmeltingTM Stage 1 BlueSmeltingTM Stage 2 20% reduction in 95% reduction in CO² CO² emissions emissions Today’s high-quality metallurgical CO pre-reduction and coal to be Hydrogen pre-reduction and b
Slide 113: ELYSIS: first major smelting breakthrough
ELYSISTM: first major smelting breakthrough in over 100 years For personal use only International efforts to find an inert US DoE sibling materials anode material (EU, US, Japan, tested in industrial cells, but USSR). Chloride process is piloted metal purity, energy and ELYSIS partnership with Alcoa
Slide 114: ELYSIS potential to deliver zero CO2 and SO2 emissions
ELYSISTM has the potential to deliver zero CO2 and SO2 emissions with higher productivity For personal use only Proprietary anode Conventional smelting technology ELYSIS smelting technology ©2024, Rio Tinto, All Rights Reserved 112
Slide 115: Nuton copper leaching: a three-decade journey
NutonTM copper leaching: a three-decade journey For personal use only First leaching tests at Crush & agglomerated Pilot plant at Waste processing Strategy launch First industrial scale Bundoora (Las Cruces) flow-sheet introduced Kennecott (70,000t) flowsheet market testing demo agreement 1996 2011
Slide 116: Nuton processing flowsheet
NutonTM processing flowsheet For personal use only Preparation Heap leach pad Nuton copper cathode Catalytic Ore mineralogy Bacteria Water & acid Raffinate pond additives Irrigation Modelling & predictability capabilities Solvent extraction Crushing Electrowinning Sulphuric Bacteria Agglomeration Up
Slide 117: Strong network across academia and industry
Strong network across academia and industry For personal use only ©2024, Rio Tinto, All Rights Reserved 115
Slide 118: Committed $150m for Rio Tinto Centre for Future Materials
Committed $150m for the Rio Tinto Centre for Future Materials For personal use only • Committing $150m to research over 10 years • Driving fundamental, innovative and transformative advances in science and engineering • Engaging with industry, policymakers, communities and society to drive a step-ch
Slide 119: Q&A
Q&A For personal use only Kitimat, Canada 117
Slide 120: Appendix
Appendix For personal use only Arvida, Canada 118
Slide 121: Our hydro power plants in Canada
Our hydro power plants in Canada BC Works Kemano Québec Power Operations For personal use only Isle-Maligne 1926 450 MW Chute-des-Passes 1960 833 MW Chute-à-Caron 1931 222 MW Chute-du-Diable 1952 224 MW Kemano 1954 1,000 MW Chute-à-la-Savane 1953 246 MW Shipshaw 1943 1,172 MW ©2024, Rio Tinto, All R
Slide 122: Contributing to the regions where we operate
Contributing to the regions where we operate British Columbia Quebec Iceland Pacific Economic $1.3bn $1.5bn use only $517m $247m Contribution to the Contribution to the Australian and Contribution to the BC economy Contribution to the Iceland economy Quebec economy New Zealand economies $33m $119m $
Slide 123: Our value-added aluminium products
Our value-added For personal use only aluminium products Slab Foundry Rod Billet ©2024, Rio Tinto, All Rights Reserved 121
Slide 124: Matalco JV positioned to capture extrusion growth
Matalco JV is well positioned to capture growth in extrusions with low-carbon and recycled metal For personal use only Total North America1 extrusions billet requirement, Mt Matalco production 4.0 Current • Building and construction slowdown – 80% Billet +5%2 lower extrusion and billet demand 20% Sl
Slide 125: TiO2 industry overview and product flows
TiO2 industry overview and product flows For personal use only Rio Tinto is largest Rio Tinto and competitors Our customers Our customers’ customers merchant feedstock producer with ~14% Upstream supply Mid-stream processing End users global share TiO2 feedstock (direct feed and slag) Pigment(s) & T
Slide 126: Iron & Titanium Resources and Reserves
Iron & Titanium Resources and Reserves Resources and Reserves (as of 31 December 2023)1 For personal use only RT share of Total Ore Reserve2 marketable products % RT Mt %Ti %Zr Share Mt TiO2 Mt Zr RTIT Quebec 151 80.0 - 100.0 47.8 - RBM South Africa 1,187 2.5 0.3 74.0 9.8 2.3 QMM Madagascar 299 3.3
Slide 127: Iron & Titanium financials
Iron & Titanium financials For personal use only Financial metrics (LHS) and ROCE (RHS) Operating costs breakdown (2023 actual) 2,500 12% 4%4% Employment costs 2,000 10% 21% External services 8% 1,500 Energy & fuel $m 6% 1,000 33% Raw materials & consumables 4% 500 21% Selling related costs 2% 0 0%
Slide 128: IOC: initiatives to offset general cost inflation
IOC: implementing initiatives to offset general cost inflation For personal use only IOC concentrate unit costs ($/wmt) 2024 H1 operating costs Increasing production volumes, 60 our biggest cost lever 8% 50 • Significant portion of cost base is fixed 15% Employee pay & benefits • Asset management an
Slide 129: Common acronyms and definitions
Common acronyms Definitions $ United States dollar FCF Free cash flow ICE Internal combustion engine T Tonne Calculated The levelised marginal cost of abatement abatement at a zero carbon price AIFR All Injury Frequency Rate GDP Gross Domestic Product PV Photovoltaic tCO2 e Tonne of carbon dioxide e
Slide 130: Rio Tinto
RioTinto Ajuo asn seuossad J04