Rio Tinto Plc · LSE:RIO

Rio Tinto — Rio Tinto Minerals — Corporate Update (September 2006)

13 slides from Rio Tinto's corporate update, Sep 14, 2006

  1. Slide 1: Rio Tinto Minerals Business Briefing

    Rio Tinto Minerals Business Briefing Gary Goldberg President & Chief Executive Officer September 14, 2006 Page 1 For the purposes of the Forward-Looking Statements Safe Harbor provisions of the US securities laws This presentation contains statements which constitute forward-looking statements withi

  2. Slide 2: Rio Tinto Minerals: Part of the Industrial Minerals group

    Rio Tinto Minerals ƒ Newly formed organization comprising three of the world’s foremost industrial minerals producers ƒ 3,000 people ƒ 50 facilities on five continents ƒ 2,500 direct customers worldwide ƒ Leaders in product quality and technical support ƒ Contributes just over 1% of Rio Tinto’s unde

  3. Slide 3: Global operations; Leadership team

    Global operations Borates Talc Talc Borates Talc Salt Borates Talc Page 4 Leadership team Gary Goldberg President & CEO (Denver) Bob Graham Chris Robison Manfred Hoscher Denise Goldsworthy Jeff Olsen David Tucker Steve Saperstein Chief Commercial VP Operations VP Operations VP Operations Chief Finan

  4. Slide 4: Borate and salt operations and products

    Borate operations and products ƒ Supply 43% of refined borate market; lead industry in developing borates’ potential ƒ Reserves for 40+ years ƒ Essential nutrients, key ingredients in fiberglass, glass, Page 6 ceramics, detergents, fertilizers and wood preservatives Salt operations and products ƒ Wo

  5. Slide 5: Talc operations and products; Common characteristics

    Talc operations and products ƒ World’s largest talc business, supplies 25% of world demand ƒ Reserves for 35+ years ƒ Talcs enhance performance in paper, paints, plastics, ceramics, personal care products, agriculture and pharmaceuticals Page 8 Common characteristics ƒ Large and long-life resource b

  6. Slide 6: Underlying earnings trends and common challenges

    Common challenges ƒ Declining earnings, rising costs ƒ Rising competitive pressure in mature markets ƒ Regulatory restrictions for borates, talc 6,000 Rio Tinto Industrial Minerals Earnings Trend Underlying Earnings $USm 5,000 4,000 3,000 2,000 Industrial Minerals 1,000 Contribution 0 Page 10 1996 1

  7. Slide 7: Differentiation and Mission

    Differentiation Resources ƒ People (knowledge, stakeholder relationships) ƒ Scale (access to ore bodies, markets & acquisitions) Brand ƒ Reliability ƒ Quality ƒ Market leadership ƒ Sustainability (license to operate) Technology ƒ Grow use of products ƒ Solve customers’ problems Page 12 Mission Rio T

  8. Slide 8: Delivering the value proposition; Setting strategy and targets

    Delivering the value proposition Integration ƒ Streamlining staffing levels and systems ƒ Closing 5 headquarters offices and 3 laboratories Optimization ƒ Rationalizing product portfolio to improve profitability ƒ Segmenting customers and transferring smaller ones to distributors ƒ Optimizing operat

  9. Slide 9: Improving safety; Strength in geographic diversity

    Improving safety Dampier Rio Tinto Businesses (2005) Rio Tinto Minerals 2 4.00 12 Month Rolling LTIFR & AIFR per 200,000 Hours Worked 3.50 1.4 Num ber of Fatalities 3.00 1.2 Luzenac 1 2.50 Borax 0.8 1 2.00 0.6 1.50 0.4 1.00 0.2 0 0.50 LTIFR AIFR 0 0.00 2008 Plan 2006 Plan 2006 YTD 2005 2004 LTIFR AI

  10. Slide 10: First half 2006 performance; Optimizing the asset portfolio

    (,000 Tons) First half 2006 performance equivalent H1 2006 H1 2005 CHANGE FY 2005 BORATE PRODUCTION* 272kt 268kt + 1% 1,312kt SALT PRODUCTION 2,650kt 2,776kt - 5% 5,507kt TALC PRODUCTION 727kt 690kt + 5% 1,364kt EARNINGS $US54m $US52m + 4% $US59m ƒ Earnings US$2m above H1 2005 ƒ Cost savings from ne

  11. Slide 11: Focusing on scale; Reconfiguring the supply chain

    Focusing on scale Niche focus Scale focus Assets ƒ Flexible, small assets ƒ Primary focus on scale assets Operating ƒ Minimum overhead and low ƒ Operational excellence drives philosophy exit costs unit costs down Customer ƒ Entrepreneurial response to ƒ Focus on providing customer service customer d

  12. Slide 12: Promoting products and brands; Creating a platform for growth

    Promoting products and brands Product stewardship programs in place Sustainability leadership ongoing ƒ Recognized as first CA mining company to voluntarily register GHG and set emission reduction targets ƒ SD integrated into business decision-making systems ƒ Sarbanes-Oxley compliance achieved to s

  13. Slide 13: Creating value through collaboration; On track to meet targets

    Creating value through collaboration Collaboration with Rio Tinto Iron & Titanium ƒ One safety program ƒ One operational excellence program ƒ Co-located marketing teams ƒ One logistics program Collaboration with Comalco ƒ Chlor-Alkali Unit Collaboration with Rio Tinto ƒ Infrastructure: ABS ƒ Operati

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