Rio Tinto Plc · LSE:RIO
Rio Tinto — Non-Deal Roadshow (June 2012)
18 slides from Rio Tinto's roadshow presentation, Jun 19, 2012
Slide 1: Unparalleled sector leadership – Iron Ore
Unparalleled sector leadership Iron Ore Sam Walsh Chief executive – Iron Ore & Australia June 2012
Slide 2: Cautionary statement
Cautionary statement 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. Forward-Looking Statements T
Slide 3: Chinese steel growth still has a long way to run
Chinese steel growth still has a long way to run 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 intensity and GDP 1900 – 2
Slide 4: 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 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 18 200 200 100 0 2000 2010 2020
Slide 5: China's urbanisation will continue apace
China’s urbanisation will continue apace 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 1,000 400 500 200 0 0 Hou
Slide 6: Challenges of bringing on new iron ore supply
Challenges of bringing on new iron ore supply 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 600 400 financing 200
Slide 7: World class Pilbara project underpinned by Cape Lambert port expansion
World class Pilbara project underpinned by Cape Lambert port expansion 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 first ore in 250 Q4 201
Slide 8: Port: current progress for 283 Mt/a expansion
Port: current progress for 283 Mt/a expansion 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 9: Rail: current progress for 283 Mt/a expansion
Rail: current progress for 283 Mt/a expansion 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 10: Mines: current progress for 283 Mt/a expansion
Mines: current progress for 283 Mt/a expansion 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 11: We have demonstrated superior performance in delivering projects and managing costs
We have demonstrated superior performance in delivering projects and managing costs 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 Months over 70% Peer bud
Slide 12: Phased development and ramp up of Simandou
Phased development and ramp up of Simandou • 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 railway line Summary of Sima
Slide 13: Project funding risks being managed
Project funding risks being managed 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 against clear Kabak Mamou
Slide 14: On-ground works at Simandou
On-ground works at Simandou • 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 well underway • ~3,000 e
Slide 15: Our products: achieving value for steel mill customers and for us
Our products: achieving value for steel mill customers and for us • Iron ore products are not homogenous, value is dependent on a range of factors including: specific iron ore product factors, mill factors, external factors • We work closely with customers through technical alliances to understand c
Slide 16: Mine of the Future – advanced leadership in next generation technologies
Mine of the FutureTM – advanced leadership in next generation technologies for mining operations “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-line condition monitori
Slide 17: Unparalleled sector leadership
Unparalleled sector leadership • 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 managing costs • Phas
Slide 18: Unparalleled sector leadership – Iron Ore
Unparalleled sector leadership Iron Ore Sam Walsh Chief executive – Iron Ore & Australia June 2012