Tom Albanese - 10 May 11

8/6/2019 Tom Albanese - 10 May 11

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Tom Albanese10 May 2011Bank of America Merrill Lynch 2011

global metals and mining conference

Cape Lambert port


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2011 year to date highlights

Australian coal, iron ore, uranium and alumina operations impacted by

extreme weather in the first quarter

Production recovering

Major project approvals continue

Marandoo extension $933 million

IOCC phase 2 expansion - $277 million

KUC extension feasibility funding $238 million

New agreement on Simandou

Assumed control of Riversdale

Regained single A credit rating Completed $1.4 billion of $5 billion buyback programme

$13 billion capex in 2011 comparable levels in medium term

310 May 2011 Bank of America Merrill Lynch global metals and mining conference


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Increased risk of volatility in commodity prices


Commodity prices remain volatilePrudent actions have been taken byChina, but risks remain

60

100

140

180

220

260

300

340

380

Jan-09 Jul-09 Jan-10 Jul-10 Jan-11

Spot iron ore (62% Fe WA FOB)

Aluminium

Copper

Gold

Oil -WTI

Thermal coal (NEWC FOB)

Silver

$1432/oz

$2,600/t

USc425/lb

$164/t

Prices at31 March2011

$106/bbl

$122/t

$37.87/oz


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Many large Chinese provinces are just beginning

to climb the steel intensity curve


Source: Global Insight China Regional Service

Chinese regional steel intensitySteel use per capita 2009 (kg)

Bubble size reflects population of each of the 31 Chinese provinces

Shanghai19m

Beijing18m

Shandong95m

Guangdong96m

Sichuan

89m

Henan100m

Guizhou41m


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2,000 10,000 18,000 26,000 34,000 42,000 50,000

Diamonds

Crude steel

Titanium Dioxide

Borates

Copper

58,000

Nickel

Titanium dioxide

Aluminium

Our portfolio is across a range of products

at different stages of demand growth


The inflection point is yet to be reached for many of our productsPercentage of saturation level*

*Saturation level point at which consumption per capita does not increase with income levels

Source: Rio Tinto

2020Timeframe 2010 2035 2045 2050


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Our strategy is consistent and unchanged Our core objective is to maximise

total shareholder return bysustainably finding, developing,

mining and processing naturalresources

Invest in and operate large, longterm, cost competitive mines andassets

Focused on developing highquality organic growth options

2011 capex expected to be~$13 billion

Capex 2012-15 expected to

remain at comparable levels Riversdale, Ivanhoe

Driven not by choice of commoditybut by the quality of each opportunity



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Investing in long life, low cost

projects across a range of products


Project timeline(1) % Complete $ Capex(2) Production

$91m +5mtpa

$230m +5mtpa

$678m +5.3mtpa

$1.6bn 15mtpa(4)

$7.6bn +53mtpa

$933m 15mtpa(4)

$166m(5) Access high grade ore

$6bn +100ktpd ore

$340m 30mlb Ph1, 60mlb Ph2 (capacity)$469m +17kt Ni, 13kt Cu per annum

$1.9bn +2mtpa

$1.1bn +60ktpa

$487m +41ktpa

NA $270m(3) +5.3mtpa ROM(3)

$184m +2.1mtpa

$260m +6mtpa

$1.1bn +1.3mtpa

$1.6bn 28mcpa capacity

(1) Represents timing of project completion and initial production (2) 100% unless otherwise stated (3) Source: Riversdale

(4) Sustaining production at Pilbara total capacity (5) RT share of capex

2011 2012 2013 2014


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High quality tier one projects

currently in advanced study

Project ProductIndicativecapex(1)

Indicativefirstproduction

Indicativeproduction(1)

Pilbara 333 Iron ore $$$ 2015 +50mtpa

IOCC Phase 3 Iron ore $ 2013 +2.7mtpa

Simandou Iron ore $$$$ 2015 +95mtpa

Oyu Tolgoi Phase 2 Copper, Gold $$$ 2015 +60ktpd ore

KUC extension Copper, gold, moly $$ 2015 Extend LOM to 2028

Kitimat Aluminium $$ 2014 430ktpa capacity

Weipa South of Embley Bauxite $ 2015 +22.5mtpa

Mt. Pleasant Thermal Coal $ 2014 +8.5mtpa


$ $10 billion

(1) 100% basis unless otherwise stated


10/14

A deep portfolio of strong earlier stage projects

provide options for further quality growth


Pilbara 433mtpa Orissa

IOCC expansions

Resolution La Granja Escondida options

Copper

AP60 Phase 2 Sarawak Cameroon brownfield and greenfield

Aluminium

Benga phase 2 and Zambeze Hail Creek

Hunter Valley options Valeria

Energy

Bunder (diamonds) Diavik A21 (diamonds) Jadar (borates, lithium)

Diamonds &Minerals

Iron Ore

KUC North Rim Skarn Northparkes expansion

Armargosa (bauxite) Paraguay smelter

Winchester South Rossing heap leach

TiO2 mine expansions TiO2 smelter expansions


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Our investment in technology and exploration

gives us competitive edge


Iron Ore operations centre, Perth

New tunnelling partnership with Aker Wirth Surface mine automation

Exploration in Africa


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Balancing growth with capital returns

Record cashflows have reducednet debt to $4 billion at end of 2010

Investing in high quality growthopportunities organic and M&A

Regained single A credit ratingfrom all major international creditagencies

Ordinary dividend increasedby 20%

$5 billion capital managementprogramme $1.4 billion

completed 2011 interim dividend expected

to be 54 US cents per share


Prudentbalancesheet

management

SingleA creditrating

Capitalmanagement

Dividend +20%$5 billion

share buyback $1.4 billion

completed

Investmentin valueaddinggrowth

$13 billionof capital

expendituresin 2011

Cash from operations


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Conclusion

Production recovering from weather impacted first quarter

Delivering on growth

A deep portfolio of projects across all product groups and at various stagesfrom execution to early evaluation

Assumed control of Riversdale, currently hold more than 73%

Fully leveraging tier one assets providing further options to grow

Regained single A credit rating Returning cash to shareholders

Ordinary dividend increased by 20%

$5 billion buyback programme $1.4 billion completed to date

Well placed to enhance shareholder value



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Tom Albanese10 May 2011Bank of America Merrill Lynch 2011

global metals and mining conference

Cape Lambert port

Tom Albanese - 10 May 11

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