Slide 1: Building on success - growing the Pilbara
Building on success - growing the Pilbara Greg Lilleyman – President, Pilbara Operations
Slide 2: Guideline
©2013, Rio Tinto, All Rights Reserved 2 Guideline • Rio Tinto, in context • The Pilbara integrated operations • Rio Tinto’s major customers: some historical perspective • Strong demand, uncertain industry supply • Rio Tinto’s expansion: seeing is believing • Rio Tinto’s Mine of the Future TM • Summa
Slide 3: Rio Tinto – a global business
©2013, Rio Tinto, All Rights Reserved 3 Rio Tinto – a global business Aluminium Copper Diamonds Energy Iron ore Minerals Europe North America Asia Africa Key Mines and mining projects Smelters, refineries, power facilities and processing plants remote from mine South America Australasia
Slide 4: Rio Tinto Iron Ore – Pilbara Operations
©2013, Rio Tinto, All Rights Reserved 4 Rio Tinto Iron Ore – Pilbara Operations
Slide 5: Old friends – dealing with regional partners in a broad based market
©2013, Rio Tinto, All Rights Reserved 5 Old friends – dealing with regional partners in a broad based market
Slide 6: Business history: strong growth of Rio Tinto Iron Ore China business for 40 years
©2013, Rio Tinto, All Rights Reserved 6 Business history: strong growth of Rio Tinto Iron Ore China business for 40 years “No other company has exported anywhere near this amount of iron ore to China and it took 38 years for us to do so.” Sam Walsh - On the shipment of the 1 billionth tonne
Slide 7: Despite near-term volatility, the fundamental drivers of Chinese steel demand growth remain strong
©2013, Rio Tinto, All Rights Reserved Despite near-term volatility, the fundamental drivers of Chinese steel demand growth remain strong The fundamental drivers of Chinese steel Chinese steel demand will grow strongly demand will remain strong Bt/a Construction Industrial - Export 1 Economic growth
Slide 8: There continues to be significant constraint to the development of new iron ore supply
©2013, Rio Tinto, All Rights Reserved 8 There continues to be significant constraint to the development of new iron ore supply Announced and completed iron ore production • Announcements do not necessarily capacity (global) (million tonnes) translate to supply capacity − Competition for labour with
Slide 9: We focus on delivering value through productivity and system optimisation
©2013, Rio Tinto, All Rights Reserved 9 We focus on delivering value through productivity and system optimisation … Pilbara production (Mt/qtr) • New nameplate capacity at 70 237Mt/a − Operations Centre assists deep 60 system visibility, significantly 50 advancing performance − Q3 2012 a record prod
Slide 10: … challenging expansion optionality …
©2013, Rio Tinto, All Rights Reserved 10 … challenging expansion optionality … BS4 (III) Growth BS4 (II) $1bn Koodaideri (I) WTS (I) Nammuldi Silvergrass 2012 2013 2014 2015 Warramboo HD4 Yandicoogina WTS (II) Legend WA -Dep E Marandoo WA- Dep B • Not yet approved • Underway • Deleted Sustaining Not
Slide 11: … and maintaining major project time-lines
©2013, Rio Tinto, All Rights Reserved 11 … and maintaining major project time-lines Rio Tinto Pilbara iron ore shipping capacity (100% basis) (Mt/a) 380 360 First Ore 360 340 340 First Ore 320 Average Annualised 300 Mtpa 290 First Ore 1H 280 4Q 260 240 3Q 220 200 2010 2011 2012 2013 2014 2015 2016 2
Slide 12: We have demonstrated superior performance in delivering projects
©2013, Rio Tinto, All Rights Reserved 12 We have demonstrated superior performance in delivering projects Western Australian construction projects performance (Cost (% of budget)) Over budget 250% RTIO projects Non RTIO behind projects 40 schedule 200% 30 Months over budget 20 150% 10 100% 10 50% 20
Slide 13: Delivering reality …
©2013, Rio Tinto, All Rights Reserved 13 Delivering reality … Car ShipDumper Loader Cape CapeLambert LambertExpansion Expansion Cape Lambert Expansion
Slide 14: RTIO Reserves and Resources
©2013, Rio Tinto, All Rights Reserved 14 RTIO Reserves and Resources RTIO PILBARA Mineral Reserve History 2001 - 2012 3,500 Tonnes (Mt) 3,000 2,500 2,000 1,500 1,000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Probable Proven RTIO PILBARA Mineral Resource History (exclusiv
Slide 15: Our Mine of the Future is turning competitive advantage into real business value
©2013, Rio Tinto, All Rights Reserved 15 Our Mine of the FutureTM is turning competitive advantage into real business value • Technology and automation will continue to drive business success • Improving sophistication of real time data and progressive cultural change are keys to success • Substanti
Slide 16: Autonomous Haul Trucks
©2013, Rio Tinto, All Rights Reserved 16 Autonomous Haul Trucks • 10 trucks at Yandi in a fully autonomous pit • 26 trucks are planned at Nammuldi, with 5 trucks currently operational and 5 more to be delivered over the coming weeks • 19 trucks are planned for Hope Downs 4, with 3 currently being as
Slide 17: AutoHaul investment in autonomous train operations
©2013, Rio Tinto, All Rights Reserved 17 • AutoHaul™ is an investment of US$518 million to introduce autonomous train operations across our integrated Pilbara rail network • It is the first long-distance heavy-haul system of its kind in the world and will place us at the forefront of technological a
Slide 18: In summary …
©2013, Rio Tinto, All Rights Reserved 18 In summary … • Our Pilbara Operations are part of a truly global mining business • Running it efficiently, while expanding within time and cost constraints, is how Rio Tinto creates value • We have a long, strong history with China and Japan • These mutually