Rio Tinto Harry Kenyon-Slaney 2 Feb 10


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Sustainable growth in Africa, presentation by Harry Kenyon-Slaney, Mining Indaba 2010, Cape Town, South Africa, 2 February 2010

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  • Rio Tinto Harry Kenyon-Slaney 2 Feb 10

    1. 1. Sustainable growth in Africa Harry Kenyon-Slaney Chief executive - Diamonds and Minerals Mining Indaba 2010 2nd February Cape Town, South Africa
    2. 2. Cautionary statement <ul><li>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. </li></ul><ul><li>Forward-Looking Statements </li></ul><ul><li>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. </li></ul><ul><li>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 &quot;SEC&quot;) 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. </li></ul><ul><li>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. </li></ul>Slide
    3. 3. Introduction <ul><li>Introduction to Rio Tinto </li></ul><ul><li>Rio Tinto in Africa </li></ul><ul><ul><li>Minerals and metals are vital to Africa’s future </li></ul></ul><ul><ul><li>Rio Tinto is committed to Africa and we are Africa’s ideal development partner </li></ul></ul><ul><li>Sustainable development </li></ul><ul><li>Challenges </li></ul>Slide
    4. 4. Iron ore Energy Aluminium Copper Diamonds & Minerals Slide Diversified portfolio based on quality of opportunity Diamonds TiO 2 Borates Talc Lithium Zircon
    5. 5. Partner of choice on six continents Mines and mining projects Separate processing plants Aluminium Copper Diamonds Energy Iron ore Minerals Africa Europe South America North America Australasia Asia Slide
    6. 6. Strategy focuses on differentiation and growth <ul><li>Health, Safety & Environment </li></ul><ul><li>Eliminate all injuries through a focus on safe behaviours </li></ul><ul><li>Maximise how our products and operations contribute to sustainable development </li></ul><ul><li>Operational & Financial Performance </li></ul><ul><li>Maximise value to shareholders and stakeholders </li></ul><ul><li>Growth & Innovation </li></ul><ul><li>Discover and develop mineral assets based on quality of opportunity </li></ul><ul><li>People </li></ul><ul><li>Attract and retain talent; develop leaders and capacity wherever we operate </li></ul><ul><li>Communities & Government </li></ul><ul><li>Partner of choice around the world </li></ul><ul><li>Customers & Markets </li></ul><ul><li>Supplier of choice in all sectors; mature and emerging economies </li></ul>Slide
    7. 7. Lost Time Injury Frequency Rate Injuries per 200 000 hours worked Source: Rio Tinto . Safety remains our most important value All Injury Frequency Rate Decline in injury frequency rates 2000 – September 2009 Slide
    8. 8. Market capitalisation of major listed mining companies (US$b) At 31 December 2009 Source: Thomson Datastream Slide
    9. 9. Diverse portfolio developed over the decades ALUMINIUM Namibia Slide Mines and mining projects Separate processing plants CBG Sangaredi (23%) Awaso (80%) Alucam (Ed é a) 47% COPPER Palabora (58%) IRON ORE Simandou (95%) ENERGY R ö ssing (95%) DIAMONDS & MINERALS Murowa (78%) Richards Bay Minerals (50%) QIT Madagascar Minerals (80%) Ghana Guinea Cameroon Madagascar Zimbabwe Namibia South Africa
    10. 10. Strong record, bright future for exploration Active programme 2010 Opportunities under review <ul><li>Rio Tinto Exploration (RTX) </li></ul><ul><li>Long history of success in Africa </li></ul><ul><li>Unrivalled track record of discovery </li></ul><ul><li>Positioned for future growth </li></ul>2010 Rio Tinto Exploration base Slide
    11. 11. Long-term interest in Democratic Republic of Congo <ul><li>Rio Tinto Exploration has completed country entry </li></ul><ul><li>Active grassroots exploration programmes underway in iron ore and diamonds </li></ul><ul><li>Experience with local empowerment, environmental stewardship, community relations in Africa creates advantages </li></ul>Slide
    12. 12. Opportunities and challenges in Mozambique Slide <ul><li>Mineral sands exploration project transferred from RTX to RTIT in 2009 </li></ul><ul><li>Significant opportunities and challenges </li></ul>
    13. 13. Positive developments for Rössing Uranium in Namibia Slide <ul><li>Operational development includes extending life of mine and output </li></ul><ul><li>Rossing foundation formed to support community development including health, education and business development </li></ul>
    14. 14. Staying the course in Murowa - Zimbabwe Slide <ul><li>Recognition for safety and social responsibility programs </li></ul><ul><li>Consulting with government to ensure success of indigenisation programs </li></ul>
    15. 15. Palabora beneficiation partnership holds promise Slide <ul><li>Partnership with Iron Mineral Beneficiation Services (IMBS) and the Industrial Development Corporation (IDC) to advance beneficiation technology </li></ul><ul><li>Establishing iron-making facility to beneficiate 240 million tonnes of high quality magnetite – by-product of copper recovery operations </li></ul>
    16. 16. US$1 billion invested at QMM Madagascar Slide <ul><li>First shipment of ilmenite in 2009 after 23-year development effort </li></ul><ul><li>Investment leaves infrastructure legacy worth more than $350 million </li></ul><ul><li>Recognized for excellent environmental stewardship through 2009 Nedbank Award </li></ul>
    17. 17. High standards underpin Simandou development Slide <ul><li>$500 million invested to develop world-class iron ore deposits </li></ul><ul><li>Partnership with IFC (5% stake) based on social and environmental standards </li></ul><ul><li>More than $40 million for public infrastructure and education programs planned </li></ul>
    18. 18. Sustainable development key to partner of choice status Last 10 years 1998-2007 14.2 <ul><ul><li>Energy and climate change </li></ul></ul><ul><ul><li>Land management </li></ul></ul><ul><ul><li>Biodiversity </li></ul></ul><ul><ul><li>Water management </li></ul></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>Health </li></ul></ul><ul><ul><li>Community partnership </li></ul></ul>Environmental stewardship Social well-being <ul><ul><li>Business integrity </li></ul></ul><ul><ul><li>Human rights </li></ul></ul><ul><ul><li>Stakeholder engagement </li></ul></ul><ul><ul><li>Sovereign risk </li></ul></ul><ul><ul><li>Closure and legacy </li></ul></ul>Strong governance Economic prosperity <ul><ul><li>Financial performance </li></ul></ul><ul><ul><li>Socioeconomic development </li></ul></ul><ul><ul><li>Supply chain management </li></ul></ul>Slide
    19. 19. Commitment to local employment and training Slide
    20. 20. Leading practices in black economic empowerment Slide
    21. 21. Total economic contribution of $2 billion in 2008 Slide
    22. 22. Environmental stewardship at QMM recognized globally Winner of the Nedbank Mining Award; Environmental 2009 Slide
    23. 23. Great opportunities offset by great challenges <ul><li>Global competitiveness     </li></ul><ul><li>Infrastructure </li></ul><ul><ul><li>Power </li></ul></ul><ul><ul><li>Rail </li></ul></ul><ul><ul><li>Water </li></ul></ul><ul><li>Changing legislation </li></ul><ul><li>Transparency and security of tenure </li></ul><ul><li>Skills development to fast track local empowerment </li></ul>Slide
    24. 24. Thank you