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 Registered in Australia Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia ABN 96 004 458 404 ASX Market Announcements Australian Securities Exchange SYDNEY NSW 2000 10 October 2012 Attached is a presentation given by Tom Albanese, chief executive, Guy Elliott, chief financial officer, Andrew Harding, chief executive, Copper, and Preston Chiaro, group executive, Technology & Innovation, at the Rio Tinto investor seminar held in London and New York on 9 October 2012. Yours faithfully Stephen Consedine Company Secretary For personal use only
Transcript
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
Registered in Australia Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia ABN 96 004 458 404
ASX Market Announcements Australian Securities Exchange SYDNEY NSW 2000
10 October 2012
Attached is a presentation given by Tom Albanese, chief executive, Guy Elliott, chief financial officer, Andrew Harding, chief executive, Copper, and Preston Chiaro, group executive, Technology & Innovation, at the Rio Tinto investor seminar held in London and New York on 9 October 2012. Yours faithfully Stephen Consedine Company Secretary
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 This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Rio Tinto’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Rio Tinto’s present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Except as required by applicable regulations or by law, Rio Tinto does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.
Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share.
• Capex programme managed within limits of target single A credit rating
• Rio Tinto’s proportionate share of 2012 capex is $13.7 billion
• Three significant projects in three commodities to come on line within the next 18 months − Yarwun 2 currently ramping up − Oyu Tolgoi phase 1 − Pilbara 283 expansion
• Level of sustaining capex under review with material reductions likely
• Flexibility around further major project approvals
Approved1 capital expenditure US$ billions
20
Capital expenditure is being prioritised on the highest quality projects
1 Approved capital expenditure includes probable capital likely to be approved for Pilbara sustaining mines, Pilbara 283 and Pilbara 353 expansion
• Capturing value from assets that no longer fit our strategy − >20 divestments worth a total of $12bn completed since 2008 − Various strategic review and divestment processes underway
21
Significant acquisitions and divestments since 2011
Acquisitions
Control of Turquoise Hill Resources Oyu Tolgoi: tier one copper resource with average production of 425ktpa copper and 460kozpa gold
Doubling stake in Richards Bay Minerals
High quality, low cost resource with production capacity of c. 1Mtpa TiO2 feedstock and >20 year mine life
Acquisition of Riversdale Highly prospective, tier one coking coal resource with first production mid-2012 and objective of 25Mtpa high quality coking coal by 2020
Acquisition of Hathor Exploration Proven high grade uranium deposit in highly prospective, low risk geography
Divestments in 2012 and assets announced as under review
Alcan Cable, Specialty Aluminas, ZAC Non-core aluminium and coal assets; not “large” or “long life”
Diamonds business Insufficient market size in context of broader Rio Tinto portfolio
Strong operational performance; further significant cost reductions planned
23
Rio Tinto
Peer group range
Source: IPA
90
100
110
120
130
140
150
160
170
180
190
Australian CPI
Typical Mine + Mineral Processing Facility -
Australia (IPA)
Australian capital cost inflation (2000 = 100)
EBITDA margin by product 2012 first six calendar months
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Copper Aluminium Iron Ore Coal
Aluminium based on Rio Tinto Alcan operations only, including trading activities. Peer group comprises BHP Billiton, Vale, Anglo American, Xstrata, Freeport, Alcoa
Understanding and managing technical risk in major capital allocation decisions
T&I partners with, supports, and challenges Rio Tinto Product Groups and functions to deliver industry leading performance in strategically critical areas, including:
• Mean Time Between Failures (MTBF) is an indicator of reliability...how often does an asset breakdown
• Across the group Mean Time Between Failures has increased by 50%
• Rio Tinto average payload as a percentage of maximum payload increased from 99.3% in 2008 to 100% in 2011, from levels below 97% prior to implementing global measurement
• Increased payload has resulted in at least 6 trucks not being required
Improved performance of critical assets reduces operating costs
30
Mean time between failures Haul Truck MTBF (Utilised Hours)
Centralised major projects capabilities shares best practice Achieve repeatable success on major projects: Central capability supports Product Groups • Consistent methodologies lowers project costs • Regional and commodity based delivery hubs delivers
expertise where it is needed • Talent pipeline centrally managed
Challenges • Rising capital intensity across the globe • Difficult to attract and retain skilled people • Loss of experience when demobilising a group • once a project finishes
Understanding and managing technical risk in major capital allocation decisions
T&I partners with, supports, and challenges Rio Tinto Product Groups and functions to deliver industry leading performance in strategically critical areas, including:
• Unit costs reduced by gold, silver and molybdenum by-products
• US$660m approved for additional HME and facilities to extend mine life to 2029 − 515mt of ore at 0.79% CuEq − Unit cost per tonne of material moved in
line with 2011 − Production 180kt of copper, 185koz of
gold and 13.8kt molybdenum from 2019
• Moly Autoclave commissioning H1 2013
• Kennecott operations consistently a leading industry benchmark
• Well positioned to test new technologies and innovations – TBS trial and Copper NuWaveTM ore sorting technology
Investment for organic growth in our operations 49
Escondida Grasberg
• Improved recovery through advancing leaching technology, productivity improvements and debottlenecking − Organic Growth 1 Project − Oxide Leach Area Project − Escondida Ore access
• Investment in the transition to a major underground operation with planned tonnage at 240ktpd mill throughput − Grasberg Block Cave − Deep Mill Level Zone (DMLZ)
![Computer Science E-75cdn.cs75.net/2010/fall/lectures/6/lecture6.pdf12 Objects var obj = new Object(); var obj = {}; obj.key = value; obj["key"] = value; var obj = { key: value };](https://static.documents.pub/doc/80x56/5f06921e7e708231d418a5b8/computer-science-e-75cdncs75net2010falllectures6-12-objects-var-obj-new.jpg)
