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UBS Australian Resources, Energy & Utilities Conference

Rio Tinto Coal Australia


Bill Champion, Managing Director, Rio Tinto Coal Australia June 2012

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 This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Rio Tintos financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tintos 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 Tintos 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 Tintos 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 6Ks 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. 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.

2012, Rio Tinto, All rights reserved

Presentation overview

Strong long term outlook

Current challenges

Honing our competitive edge

2012, Rio Tinto, All rights reserved

Safety
All Injury Frequency Rate (AIFR) Total number of injuries plus medical treatment cases per 200,000 hours worked
4.0 3.54

3.5

3.0

2.5

2.0

1.5

1.35 1.06 0.95 0.76 0.68 0.64

1.0

0.85

0.68

0.5

0.0

2004

2005

2006

2007

2008

2009

2010

2011

2012 YTD

2012, Rio Tinto, All rights reserved

China and India will continue to drive energy demand growth, with coal remaining an important energy source
Primary energy demand* Billion tonnes oil equivalent Total primary energy demand* by region
20 18 16 14 12 10 8 6 4 2 0 2009 2015 2020 2030

Total primary energy demand* by fuel mix


20 18

China India

16 14 12 10 8

Biomass, Hydro & other renewables Nuclear

Gas & Oil

R.O.W.

6 4 2 0 2009 2015 2020 2030

Coal

* Current Policies scenario assumes no new climate change related policies beyond those currently in place are implemented Source: International Energy Agency WEO 2011
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Chinese thermal coal imports very responsive to increasing internal costs, haulage distances and domestic/import arbitrage
Projected contribution to ex-China import growth
155 Southern China Delivered Price US$/t CV 6000 NAR 150 145 140 135 130 125 120 115 110 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Arbitrage Window Newcastle China Imports [RHS] Richards Bay Chinese Domestic 18 16 Chinese Imports - Mt/mth 14 12 10 8 6 4 2 0

Average Chinese Internal Coal Haulage Distance (km)


650 600 550 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source:Rio Tinto, SX Coal, Global Coal, McCloskey, Global Trade Atlas, RTE&M Analysis
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Metallurgical coal market remains tightly balanced


New supply regions supporting increased production driven by emerging markets demand Projected seaborne supply growth
300

Projected contribution to ex-China seaborne demand growth


6%

Other

Canada

US

Australia

Other India Europe and North Asia

250

5%

200

4%

150

3%

100

2%

50

1%

2011

2012
Source: Wood Mackenzie

2013

0%

2012
Source: Wood Mackenzie

2013

2012, Rio Tinto, All rights reserved

Presentation overview

Strong long Strong long term outlook term outlook

Current challenges

Honing our competitive edge

2012, Rio Tinto, All rights reserved

Combined impacts are squeezing the mining industrys productivity and growth
Market volatility Daily commodity prices (Jan 2009 = 100)
400 350 300 250 200 150 100 50 $3.70/lb $97/bbl $140/t $/1600/oz $110/t $2000/t Prices at 9 May 2012

Combined impacts

Capital intensity Thermal Coal Capital Cost US$ per tonne


180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 -

Increasing taxes Extra regulation delaying approvals Growing difficulty in accessing skilled labour Rising cost of infrastructure access Strong exchange rate Input cost escalation

Jan-09

Jan-10

Jan-11

Jan-12

Spot iron ore (62% Fe, fob) Aluminium Copper Gold Oil Thermal coal

2001

2004

2007

2010

Source: Bank of America Merrill Lynch

In isolation these factors may not seem to have significant impact. But cumulatively they can transform a good value proposition and render it marginal.
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Increasing strip ratios, common across Australian mines, are contributing to increased waste movement across RTCA
Total material moved and production

Total material moved (excluding Kestrel Mine) Million tonnes; 100% basis
1,400 1,200 1,000 800 600 400 200 0
2008A 2009A 2010A 2011A 2012 * forecast

Production (excluding Kestrel Mine) Million tonnes; 100% basis

1.7x

70 60 50 40 30 20 10 0
2008A 2009A 2010A 2011A 2012 forecast*

1.2x

2012 forecast consists of January to April actuals and forecast figures for May to December Source: RTCA

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Longer timelines on environmental approvals

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Presentation overview

Strong long term outlook

Current challenges

Honing our competitive edge

2012, Rio Tinto, All rights reserved

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RTCA is focused on maximising operational performance to drive value


RTCA Business Improvement Asset Management Programme

Focusing on: Capacity Know-how Planning

Deployment through: Deep Dive improvement projects Broad Based capabilitybuilding activities Centralised support and services available to our sites

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Starting to see strong results from Deep Dive projects


Mount Thorley Warkworth - increased average truck loads per shift Kestrel Mine Extension increased underground roadway development rates Hunter Valley Operations increased blasted inventory Hail Creek projects focused on: Shovel productivity Coal recovery Haul truck standardisation cost savings and flexibility, dozers are next
Improving blasted inventory Hunter Valley Operations, NSW.

Standardised specifications in place for 830E Komatsu trucks.

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Focus on improving wet weather management


10 per cent calendar time impacted by wet weather

Initiatives on all sites: Wet weather planning and preparedness Road and ramp design and construction Truck driver training Site-specific examples: Hunter Valley Operations 240 tonne haul truck trial Clermont Mine All weather roads project.
All weather roads project - Clermont Mine, Qld.

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We are completing our project ramp-up at Clermont and progressing KME


Clermont Mine ramp-up Clermont Mine ramping up to ~12Mt rate, as Blair Athol Mine winds down to ~3Mt Ramp up slowed to fine tune IPCC Hopper relocation underway to allow ongoing ramp up Potential to expand production from 12Mtpa to 15Mtpa Kestrel Mine Extension (KME) KME offers long life (2032), low cost, coking coal Production to start 2013, incremental production (~1Mt), lower operating costs Kestrel West resource could provide top-up production to maintain output

In-pit crusher - Clermont Mine, Qld. 2012, Rio Tinto, All rights reserved

CHPP Upgrade project - Kestrel Mine, Qld.

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We have an attractive long term growth pipeline that will be sequenced as we firm up value potential
Queensland Hail Creek Expanded to 8Mtpa nameplate rate Resource optimisation focused on underground potential Options to supplement by regional open cuts at Elphinstone and Mount Robert Valeria Large resource (semi-soft / thermal) Focused on establishing metallurgical coal potential Winchester South Potential for coking products (semi-hard/soft and PCI) and thermal Focused on building metallurgical coal quality knowledge New South Wales Mount Pleasant Full feasibility study - focus on value engineering to lower capital cost HVO Southern / Auckland Focused on building ore body knowledge Provide future options to expand or extend HVO life depending on market conditions MTW underground options Focused on building ore body knowledge and understanding interaction with open cut Community challenges make this a priority

Exploration drilling underway - Valeria, Qld. 2012, Rio Tinto, All rights reserved

Mount Pleasant Project, NSW.

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Given our product mix, RTCA generates strong return on assets relative to peers
Proportion of metallurgical coal sales and return on assets Proportion of metallurgical coal production Met coal production/Total coal production
70% 60% 50% 40% 30% 20% 10% 0%

Return on assets NPAT/NOA*


70% 60% 50% 40% 30% 20% 10% 0%

XTA

RTCA

AAL

BHP

XTA

RTCA

AAL

BHP

Assets are calculated as average over the year. Note: AAL, BHP and XTA NPAT all derived from EBIT at an assumed 30% tax rate. Source: Annual Reports

2012, Rio Tinto, All rights reserved

Questions?