Slide 1: ASX cover letter for investor presentation
Rio Tinto Limited 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 ASX Market Announcements Australian Securities Exchange SYDNEY NSW 2000 20 June 2012 Dear Sir, The attached presentati
Slide 2: Unparalleled sector leadership – Iron Ore
For personal use only Unparalleled sector leadership Iron Ore Sam Walsh Chief executive – Iron Ore & Australia June 2012
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: Chinese steel growth still has a long way to run
Chinese steel growth still has a long way to run For personal use only Despite the last decade’s growth, China’s steel China’s unique drivers means it will chart its stock is currently well behind other economies own steel development path Total steel demand over respective 20-year period Steel inte
Slide 5: We continue to forecast Chinese steel production will grow to around 1 billion tonnes
We continue to forecast Chinese steel production will grow to around 1 billion tonnes per year towards 2030 For personal use only Chinese crude steel production Chinese steel demand by sector (million tonnes) (million tonnes) 1000 1 -1 1200 900 -1 1000 800 4 700 800 600 500 600 400 300 400 18 200 20
Slide 6: China's urbanisation will continue apace
China’s urbanisation will continue apace For personal use only China urban/rural population Chinese household steel intensity (million persons) (kilograms) 1600 3,000 A Chinese urban household has 10-15 times more steel intensity \\ 1400 than a rural household 2,500 1200 2,000 1000 800 1,500 600 1,0
Slide 7: Challenges of bringing on new iron ore supply
Challenges of bringing on new iron ore supply For personal use only Announced and completed iron ore production • Announcements from others do not capacity (global) (Million tonnes) necessarily translate to supply capacity 1000 − Competition for labour with oil/ gas 800 − Reduced sources of project
Slide 8: World class Pilbara project underpinned by Cape Lambert port expansion
World class Pilbara project underpinned by Cape Lambert port expansion For personal use only Expected Pilbara production (100 per cent) (Million tonnes) Car dumpers (x2) 400 CD1 car dumper replacement (20 Mt/a) 353 Mt/a 350 first ore in H1 2015 1.8 km Existing Cape 2.5 km Lambert Port 300 283 Mt/a f
Slide 9: Port: current progress for expansion
Port: current progress for 283 Mt/a expansion For personal use only Car Dumper tunnel progress Wharf progress Camp A with Camp B in background Dolphin modules delivered and lifted in position June 2012 © 2012, Rio Tinto, All Rights Reserved 8
Slide 10: Rail: current progress for expansion
Rail: current progress for 283 Mt/a expansion For personal use only Electronically Controlled Pneumatic 7 & 8 Mile yards (ECP) ore car fit-out ECP locomotive fit-out Flash-butt welder June 2012 © 2012, Rio Tinto, All Rights Reserved 9
Slide 11: Mines: current progress for expansion
Mines: current progress for 283 Mt/a expansion For personal use only Overland conveyor module construction Primary crusher construction Brockman 4 phase 2 Brockman 4 phase 2 June 2012 © 2012, Rio Tinto, All Rights Reserved 10
Slide 12: We have demonstrated superior performance in delivering projects and managing costs
We have demonstrated superior performance in delivering projects and managing costs For personal use only WA construction projects performance Iron Ore EBITDA margin Cost (% of budget) 2011 calendar year 80% 250% Over budget RTIO projects Non RTIO projects 40 behind schedule 75% Rio Tinto 200% 30 Mo
Slide 13: Phased development and ramp up of Simandou
Phased development and ramp up of Simandou For personal use only • Further progressive commitment of US$0.5 billion (100% basis $1.0 billion) – Rail line works and marine structures to enable 2015 ore exports – Complete definitive engineering – 4 logistic supply centres and 22 camps along the railwa
Slide 14: Project funding risks being managed
Project funding risks being managed For personal use only Progressive delivery of the Simandou project • Development of railway, mine and port for first shipment of ore by mid-2015 • Investment approved and project Ile Coastal Plain Mamou Range Eastern Plateau Region Mine advanced progressively agai
Slide 15: On-ground works at Simandou
On-ground works at Simandou For personal use only • Phased approach to project delivery to meet schedule commitments in mid 2015 • Mobilisation of contractors for initial Convoys arriving to site service support wharf • Resettlement within port area • Construction works for access roads and camps we
Slide 16: Our products: achieving value for steel mill customers and for us
Our products: achieving value for steel mill customers and for us For personal use only • Iron ore products are not homogenous, value is dependant on a range of factors including: specific iron ore product factors, mill factors, external factors • We work closely with customers through technical all
Slide 17: Mine of the Future – advanced leadership in next generation technologies
Mine of the FutureTM – advanced leadership in next generation technologies for mining operations For personal use only “Smart” Explosives Truck Autonomous Drilling • Electronic Controlled Pneumatic (ECP) brakes to new consists*, increasing productivity by 20% in 230 Mt/a to 353 Mt/a expansion • On-l
Slide 18: Unparalleled sector leadership
Unparalleled sector leadership For personal use only • Pilbara expansion is on track to deliver first ore in 2013 • Cape Lambert port is an outstanding asset and central to the expandability of our Pilbara operations • Demonstrating superior performance in delivering projects, productivity gains and
Slide 19: Unparalleled sector leadership – Iron Ore
For personal use only Unparalleled sector leadership Iron Ore Sam Walsh Chief executive – Iron Ore & Australia June 2012