02 September 2016

Rio Tinto completes sale of Zululand

Anthracite Colliery
Rio Tinto has completed the sale of its 74 per cent of Zululand Anthracite Colliery (ZAC)
to Menar Holding, for an undisclosed sum.
ZAC, an underground mine in Zululand, South Africa, produces premium quality anthracite
for international and domestic customers and has more than 1,300 employees and
contractors. The remaining 26 per cent of ZAC will continue to be held by its Broad-Based
Black Economic Empowerment partner, Maweni Mining Consortium Pty Ltd.
Menar has a proven track record of operating and investing in South Africa through its
controlling interest in Canyon Coal, which owns three coal mines in Mpumalanga and other
coal projects in Mpumalanga and Gauteng.
Rio Tinto has a long-standing relationship with South Africa and continues to invest in
Richards Bay Minerals and exploration for other minerals in the country.

05 August 2016

Rio Tinto completes sale of Mount

Pleasant thermal coal assets
Rio Tinto has completed the sale of its Mount Pleasant thermal coal assets to MACH
Energy Australia Pty Ltd for US$220.7 million plus royalties.1
Rio Tinto has now completed US$4.7 billion of divestments since January 2013.2
1

The sale agreement has been amended to bring forward two payments originally
scheduled eight and 16 months after completion. The agreement now includes a single
payment on completion of US$195.7 million, a conditional payment of US$25 million, and
royalties, payable quarterly at two per cent of Gross FOB Revenue for coal sold from
existing reserve estimates at prices exceeding US$72.50/tonne. This new agreement sees
the total unconditional payments decrease by approximately $3.3 million. The proceeds of
the sale will be used for general corporate purposes. As of 30 June 2016, the project had
gross assets valued at US$137 million and year to date profits of US$243,000.

Amount is before finalisation of net debt and working capital adjustments.

2 August 2016

Rio Tinto approves development of

Silvergrass mine to maintain Pilbara blend
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Rio Tinto will invest an incremental $338 million to complete the development of the
Silvergrass mine in its world-class Pilbara iron ore operations in Western Australia.
The brownfield expansion of the high-grade Silvergrass mine offers attractive returns, with
an expected internal rate of return for this investment well in excess of 100 per cent and a
pay back of less than three years. It is a key element in maintaining Rio Tintos premium
Pilbara blend, and also delivers incremental tonnage and lower unit costs.
As anticipated in previous guidance, this Silvergrass investment adds 10 million tonnes of
capacity.
The investment will lower mine operating costs by replacing road haulage with a more
efficient conveyor system that links the Silvergrass operations to our existing processing
plant at Nammuldi.
Rio Tinto chief executive J-S Jacques said We are committed to disciplined capital
allocation and the approval of the final phase of the Silvergrass development, which is one

of the most value-accretive projects across the mining industry, delivers high-quality, lowcost growth that will underpin future returns to shareholders.
The additional low-phosphorus tonnes that Silvergrass delivers will sustain the long-term
viability of our Pilbara blend, ensuring continued premium pricing, whilst also lowering
our operating costs through infrastructure improvements.
This final stage of the Silvergrass development is subject to obtaining necessary approvals
from the West Australian Government.
Note to editors

Silvergrass is a satellite deposit located adjacent to Rio Tintos Nammuldi mine and
is part of the Greater Nammuldi precinct, located approximately 70 kilometres
north-west of Tom Price.

The final phase of the Silvergrass development will replace the road haulage used in
the NIT projects with a primary crusher and a nine kilometre conveyor to connect
the Silvergrass mining area to the existing processing facilities at our nearby
Nammuldi operations.

Ore from the Silvergrass mining operations is high-quality, low-phosphorus Marra

Mamba ore that is treated at the Greater Nammuldi processing plant and blended
into Rio Tintos premium Pilbara blend product.

Silvergrass is a wholly-owned operation conducted under the Iron Ore (Hamersley

Range) Agreement Act 1963.

Total Silvergrass complex

Project

Approval Commissioning

Additional capacity (mt/a)

Nammuldi Incremental
Tonnes
Stage One

2014

Q4 2015

Nammuldi Incremental Tonnes 2015

Q4 2016

Stage Two

Silvergrass

2016

Q4 2017

10

IRR calculated using consensus iron ore prices.

This production target was disclosed in a presentation to the market on 10 May 2016. All
material assumptions underpinning that target continue to apply and have not materially
changed.
2

21 June 2016

Rio Tinto unveils new organisational

structure and executive team to drive
performance
Rio Tinto will strengthen its organisational structure to continue to drive performance under
its new chief executive Jean-Sbastien Jacques.
From 2 July 2016, Rio Tintos product group structure will be adjusted to better align the
Groups assets with the business strategy to help drive further efficiencies and optimise
performance. The Groups world-class assets will be firmly at the centre of the business and
will be supported by efficient and agile global functions.
Jean-Sbastien Jacques said In the face of testing times for the industry, Rio Tinto is
performing remarkably well. Our ambition is to deliver superior performance day-in and
day-out so that we create value for our shareholders and communities now and over the
long term.
Our strategy, commitment to balance sheet strength and focus on shareholder returns will
not change; but we are strengthening our structure and delivery by placing our assets at the
heart of the business to drive improved performance.

I am pleased to unveil our new executive team which represents seven nationalities and is
as diverse as it is experienced. Each new team member has more than 20 years experience
in the resources sector, which complements the deep expertise of the existing executive
team.
We will work together with all of our employees around the world to build an even
stronger company, well positioned for delivering returns and building growth.
Rio Tintos organisational structure will include four product groups Aluminium,
Copper & Diamonds, Energy & Minerals and Iron Ore. These groups will be
complemented by a newly shaped Growth & Innovation group, which will focus on future
assets and technical support.
Under the new structure:

Aluminium will retain its focus on safety, cash and value creation from its highquality bauxite, alumina and aluminium businesses. Alfredo Barrios will remain as
chief executive, based in Montreal.

Iron Ore will be exclusively focused on our world-class iron ore operations in
Western Australia. Chris Salisbury, currently acting Copper & Coal chief executive,
will become Iron Ore chief executive based in Perth.

Copper & Diamonds will combine our two marketing-led businesses into a single
product group, which helps us maximise our technical underground mining
expertise. Arnaud Soirat will join the Executive Committee as Copper & Diamonds
chief executive. Arnaud, currently Aluminium Primary Metal president and chief
executive officer, with more than 24 years of industry experience across three
continents, will be based in London.

Energy & Minerals re-shapes Alan Davies current portfolio, bringing together Rio
Tintos coal, uranium, salt, borates and titanium dioxide businesses, as well as the
Iron Ore Company of Canada. Alan, currently Diamonds & Minerals chief
executive, remains based in London.

Growth & Innovation will provide strategic leadership and technical expertise for
the end-to-end delivery and management of growth from exploration to projects.
Stephen McIntosh, currently acting Technology & Innovation Group executive, will
take up the role of Growth & Innovation Group executive, based in Brisbane.

In addition, reflecting the Groups increased focus on health and safety, accountability for
safety as a discrete unit will sit with an Executive Committee member for the first time.
Joanne Farrell, currently the global head of Health, Safety, Environment and Communities
will take on the role of Group executive, Health, Safety & Environment based in Perth.

Joanne, who has more than 35 years experience in the mining sector, will also become
managing director of Australia.
Andrew Harding, currently Iron Ore chief executive, will leave the business with effect
from 1 July 2016.
Jean-Sbastien Jacques said I want to thank Andrew for his dedication and commitment to
Rio Tinto after almost 25 years with the business, including six years on the Executive
Committee. Andrew has held important roles in Australia, the United Kingdom and the
United States. During his long career with the company he has led our global Iron Ore and
Copper businesses, delivering marked performance improvements. We wish him the best
for the future.
The new Rio Tinto Executive Committee will be:
Jean-Sbastien Jacques, chief executive
Christopher Lynch, chief financial officer
Hugo Bague, Organisational Resources Group executive
Alfredo Barrios, Aluminium chief executive
Alan Davies, Energy & Minerals chief executive
Joanne Farrell, Health, Safety & Environment Group executive
Stephen McIntosh, Growth & Innovation Group executive
Chris Salisbury, Iron Ore chief executive
Arnaud Soirat, Copper & Diamonds chief executive
Debra Valentine, Legal & Regulatory Affairs Group executive
Note to Editors
Leaving arrangements for Andrew Harding are consistent with the remuneration policy and
will be disclosed in the 2016 Annual report. Remuneration arrangements for all new
Executive Committee members are also consistent with the remuneration policy. They will
include international and domestic relocation support where applicable, and will be
disclosed in the 2016 Annual report.

24 May 2016
Senior management changes
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Rio Tinto has appointed Stephen McIntosh as the acting Group executive, Technology &
Innovation to succeed Greg Lilleyman, who will leave the company after 25 years of
service.
Stephen has been with Rio Tinto for almost 30 years working on projects in more than 45
countries spanning the A-Z of minerals and metals. Most recently, he was head of
Exploration, leading a 450-strong global team of employees operating in 20 countries.
Prior to this, Stephen led Rio Tintos Project Generation Group for six years and
transformed its activities to build a world-leading team of commodity, technical and ore
body knowledge experts.
Rio Tinto chief executive Sam Walsh said Stephen is a highly respected member of Rio
Tintos senior leadership ranks and brings to his new role a breadth of experience across
multiple commodities and geographies. For a long time now, our T&I function has
provided a point of strategic differentiation for Rio Tinto and Stephen will spearhead the
Groups drive for further productivity improvement across the business.
Greg has made a significant contribution to the development of our world-class Pilbara
operations, where he has spent the majority of his time with the business. He also held
senior operational roles in the Hunter Valley of NSW and Canada.
Sam Walsh said Greg has had a long career with Rio Tinto and played an important role in
the development of our industry leading Mine of the Future programme in our Pilbara
iron ore operations and has led our productivity drive. We wish him well for the future.
Stephens biography is available at www.riotinto.com/ExecutiveCommittee.
Stephen will join the Rio Tinto Executive Committee with immediate effect and retain the
Exploration portfolio.

06 May 2016
Rio Tinto approves development of Oyu Tolgoi underground mine

Rio Tinto and its partners, the Government of Mongolia and Turquoise Hill Resources,
have approved the next stage in the development of the world-class Oyu Tolgoi copper and
gold mine in Mongolia. The development of the underground mine will start in mid-2016

following the approval of a $5.3 billion investment by the partners and the recent granting
of all necessary permits.
First production from the underground, which has an average copper grade of 1.66 per cent,
more than three times higher than the open pit, is expected in 2020. When the underground
is fully ramped up in 2027, Oyu Tolgoi is expected to produce more than 500,000 tonnes of
copper a year,1 compared with current annual production of 175,000-200,000 tonnes. The
mine also benefits from significant gold by-products, with an average gold grade of 0.35
grams per tonne.
This expansion provides an attractive investment for all shareholders with an expected
internal rate of return of more than 20 per cent.2 The material from this brownfield
expansion will utilise the existing concentrator and infrastructure. The size and quality of
this tier one resource provides additional expansion options, which could see production
sustained for many decades.
Rio Tinto deputy chief executive Jean-Sbastien Jacques said Rio Tintos partnership with
Mongolia began over a decade ago and we are proud of what we have already achieved in
building a world-class and safety-focused operation which has already been selling copper
for nearly three years. Todays investment takes it to another level and will transform Oyu
Tolgoi into one of the most significant copper mines globally, unlocking 80 per cent of its
value.
Long-term copper fundamentals remain strong and production from the Oyu Tolgoi
underground will commence at a time when copper markets are expected to face a
structural deficit. In line with Rio Tintos other tier one assets, Oyu Tolgoi offers
opportunities for further expansions, leveraging existing infrastructure and supply chains
and will provide attractive returns for all shareholders and Mongolia more broadly for
decades to come. This is a long-term partnership, built to create mutual benefit.
The open-pit mine at Oyu Tolgoi was completed on schedule in less than 24 months and
production started in 2013. Since then, more than 440,000 tonnes of copper have been sold.
Oyu Tolgoi has a workforce of approximately 3000, of which 95 per cent is Mongolian, and
to date has paid more than $1.4 billion in taxes, fees and other payments to the Government
of Mongolia.
Prime Minister of Mongolia MP Chimediin Saikhanbileg said This significant investment
demonstrates the confidence of all the partners in both the Oyu Tolgoi mine and in
Mongolia. It also demonstrates the attractiveness of Mongolia as a place to do business and
invest, which will be a catalyst for further investments that will strengthen Mongolia's
economy.
The development of the underground will create further jobs, support Mongolian suppliers
and unlock substantial value for all stakeholders, delivering benefits for all Mongolians for

generations to come. This is a proud day for Mongolia and is a clear demonstration that the
country is back to business.
Todays investment decision follows the December 2015 signing of a $4.4 billion project
financing agreement with international financial institutions and export credit agencies
representing the Governments of the United States, Canada and Australia, along with 15
commercial banks, for the development of the underground mine. The parties have agreed a
senior debt cap of $6 billion, providing the option for $1.6 billion of supplemental senior
debt.
Note to editors
Oyu Tolgoi is jointly owned by the Government of Mongolia (34 per cent) and Turquoise
Hill Resources (66 per cent, of which Rio Tinto owns 51 per cent). Rio Tinto has been the
manager of the Oyu Tolgoi project since 2010.
Some $6.4 billion has been invested to develop the open-pit mine, concentrator and
associated infrastructure at Oyu Tolgoi, with an additional $500 million of capital costs for
initial development of the underground mine.
Oyu Tolgoi raised limited recourse project finance to refinance existing shareholder funding
and support development of the underground. The initial project finance tranche of $4.4
billion was secured in December 2015 and is expected to be drawn during the second
quarter of 2016. The Oyu Tolgoi underground development will be funded by project
finance debt and cash flows from Oyu Tolgois open-pit operations plus cash held by
Turquoise Hill Resources.
Oyu Tolgoi is fully consolidated in Rio Tintos accounts. On drawdown, the project finance
will be recognised on Rio Tintos balance sheet as cash and debt.
Underground production will come from the Hugo Dummett North deposit (including the
North Extension) which contains probable ore reserves of 499 million tonnes with an
average grade of 1.66 per cent copper and 0.35 grams per tonne of gold.3
Oyu Tolgoi is expected to produce 560,000 tonnes of copper a year, on average, between
2025 and 2030,1 when it is expected to operate in the first quartile of the copper cost curve.
1

This production target (stated as payable metal) for the Oyu Tolgoi underground and open
pit is underpinned three per cent by proven ore reserves and 97 per cent by probable ore
reserves for the years 2025-2030, which have been scheduled from current mine designs by
Competent Persons in accordance with the requirements of the Australasian Code for
Reporting of Exploration Results, Minerals Resources and Ore Reserves, 2012 Edition.
2

IRR based on Wood Mackenzie price forecasts as at Q1 2016.

Oyu Tolgoi resources and reserves are taken from Rio Tintos 2015 Annual Report dated 2
March 2016 and released to the market on 3 March 2016. Oyu Tolgoi underground
reserves include Hugo Dummett North and Hugo Dummett North Extension. The
Competent Person responsible for that previous reporting was J Dudley (AusIMM
Reserves), R Singh (AusIMM Reserves) and O Togtokhbayar (AusIMM Resources). Rio
Tinto is not aware of any new information or data that materially affects these resource
estimates, and confirms that all material assumptions and technical parameters
underpinning the estimates continue to apply and have not materially changed. The form
and context in which the competent persons findings are presented have not been
materially modified.
FEATURE: Ten things to know about the Oyu Tolgoi Underground Project

17 March 2016
Jean-Sbastien Jacques to succeed Sam Walsh as Rio Tinto chief executive

Rio Tinto chief executive Sam Walsh will retire from the business on 1 July 2016 and will
be succeeded by Copper & Coal chief executive Jean-Sbastien Jacques. To ensure a
smooth transition, Jean-Sbastien will join the board and become deputy chief executive
with immediate effect.
During more than three years on Rio Tintos executive committee, Jean-Sbastien has
brought greater focus to the copper and the coal businesses. He has delivered a step-change
in both safety and cash performance while significantly reducing costs. Prior to joining Rio
Tinto, Jean-Sbastien worked for more than 15 years across Europe, Southeast Asia, India
and the United States in a wide range of operational and functional positions in the
aluminium, bauxite and steel industries. He served as group strategy director for Tata Steel
Group from 2007 to 2011.
Rio Tinto chairman Jan du Plessis said Jean-Sbastien is a very experienced executive
with a demonstrated track record and brings a unique blend of strategic and operational
expertise. He has run complex operations and projects across five commodities and five
continents. J-S is a highly-regarded leader who shares Rio Tintos strong values and has
embraced its culture.
Todays announcement is the culmination of a comprehensive and deliberate executive
succession process. The board has decided that J-S is the right person to lead Rio Tinto in
an increasingly complex world filled with both challenges and opportunities for our
industry.

Jean-Sbastien Jacques said Rio Tinto is a world-class company with some of the best tier
one assets and people in the industry. It is an honour and a great privilege to be given the
opportunity to lead the company as we continue to develop the business and pursue the
delivery of value for shareholders.
The safety of all of our people across the world will remain a key focus and, together with
Sam, I will take every opportunity over the next few months, to meet and listen to our
shareholders, customers, employees and stakeholders, all of whom play an integral role in
making this great company so successful.
On 1 July 2016, Sam will also retire as a director after almost seven years on the Rio Tinto
board.
Jan du Plessis said The board appointed Sam as chief executive at a challenging time for
our company and I am very grateful for his tremendous leadership during the past three
years. Against the backdrop of a volatile economic environment, Sam and his team have
transformed the business, removing more than $6 billion of costs, strengthening the balance
sheet and returning more than $13 billion to shareholders. Sam leaves Rio Tinto as a much
stronger company, with a bright future.
Sam Walsh said I have been seriously fortunate to lead one of the worlds best companies.
After 25 great and enjoyable years with Rio Tinto, now is the right time to pass the reins on
to Jean-Sbastien. In his time at Rio Tinto, J-S has proven to be a standout performer as a
leader in our business.
I am very proud to have played my part, together with all of our employees around the
world, in returning Rio Tinto to a position of industry leadership and strength. I have
always wanted to make a difference and I believe we have achieved that. I look forward to
working with J-S, the board and executive team during the transition.
Chris Salisbury is appointed acting chief executive of the Copper & Coal product group and
will attend the Rio Tinto Executive Committee in this capacity. The rest of the executive
team remains unchanged.
Note to editors
Jean-Sbastien Jacques
Jean-Sbastien Jacques will be on a standard Rio Tinto executive contract, which includes a
12-month notice period. He will receive a remuneration package that is in line with our
remuneration policy and benchmarked against FTSE30 and other international mining
companies.

In his capacity as deputy chief executive, Jean-Sbastien will receive a remuneration

package including:

A base salary of 800,000

Target annual bonus opportunity at 120 per cent of base salary

Other benefits including pension and medical insurance will remain

unchanged.

With effect from 2 July, as chief executive, his remuneration package will include:

A base salary of 1,080,000

Target annual bonus opportunity at 120 per cent of base salary

An additional long-term incentive plan (LTIP) award, which will be made

in September 2016 under the Performance Share Plan. Including the
award made earlier this year, the aggregate expected value of the
awards made during 2016 will be 200 per cent of his base salary as chief
executive. The awards will vest, subject to the achievement of
performance conditions, in 2021

Other benefits will include a company pension contribution of 25 per

cent of base salary.

Jean-Sbastien previously held roles as a director on the boards of Turquoise Hill

Resources Limited, Palabora Mining Company Limited and Bougainville Copper Limited.
There is no further information required to be disclosed under paragraph 9.6.13 R of the
United Kingdom listing rules.
Sam Walsh
Leaving arrangements for Sam Walsh are governed by the remuneration policy and will be
finalised at the date of his retirement as chief executive.
Sam Walsh will remain as chief executive and a member of the Rio Tinto board until he
retires on 1 July 2016. He will continue to be paid in accordance with his existing
contractual remuneration arrangements until his retirement date.
Payments after his termination date will include:

Payment of A$1.4 million, being his base salary for the remainder of his
contractual notice period which will be just less than nine months

A 2016 short-term incentive plan (STIP) award, subject to the

achievement of financial, safety and individual targets. Any approved
award would be paid fully in cash at the normal payment date in March
2017, pro-rated for the period of employment up to 1 July 2016

Payment for long service leave and the outstanding balance of his
unused and accrued annual leave, in accordance with Australian
legislation and applicable practice applying to all employees in Australia.
These are currently estimated to be A$1.8 million and A$1.0 million
respectively and are more fully described on page 83 of the Annual
report

Repatriation benefits in line with contractual entitlements.

Sam will retain his vested and unvested LTIP awards. Performance testing and standard
pro-rating will be applied where appropriate. There will be no accelerated vesting of
awards.
Rio Tintos remuneration policy is published in the Annual report at www.riotinto.com. The
2016 Remuneration Implementation report will contain full details of all remuneration
payments described above.

01 March 2016

Rio Tinto completes sale of interest in

Bengalla Joint Venture for US$616.7
million
Rio Tinto has completed the sale of its 40 per cent interest in the Bengalla coal Joint
Venture in Australia to New Hope Corporation Limited for US$616.7 million1.
Rio Tinto has now announced or completed US$4.7 billion2 of divestments since January
2013.
A change to the ownership structure of Coal & Allied completed on 3 February 2016 helped
enable this transaction. Rio Tinto as a 100 per cent owner of Coal & Allied:

receives all consideration associated with the sale of Rio Tintos interest in the
Bengalla Joint Venture;

holds a 67.6 per cent interest with management rights in the Hunter Valley
Operations mine;

holds interests of 80 per cent and 55.6 per cent respectively, with management
rights, in the integrated Mount Thorley and Warkworth operations; and

currently holds 100 per cent interest in the Mount Pleasant project. On 27 January
Rio Tinto announced it had reached a binding agreement for the sale of Mount
Pleasant to MACH Energy Australia for US$224 million plus royalties. The sale is
expected to close in the second half of 2016.

Mitsubishi Development has moved from holding a 20 per cent stake in Coal & Allied to
holding a direct 32.4 per cent stake in the Hunter Valley Operations mine.
1

Sale consideration is AU$865 million converted into US$616.7 million at the spot rate of
0.713.
2
Amount is before finalisation of net debt and working capital adjustments.

01 March 2016

Rio Tinto board changes

Richard Goodmanson, non-executive director of Rio Tinto, who joined the board in
December 2004, will be retiring from the board this year.
Richard will not seek re-election as a non-executive director of Rio Tinto plc and Rio Tinto
Limited and will retire from the board at the conclusion of the Rio Tinto Limited annual
general meeting in Brisbane on 5 May 2016.
Megan Clark will be appointed as chairman of the Sustainability Committee upon Richard
Goodmansons retirement on 5 May 2016, and will also become a member of the
Remuneration Committee with effect from 1 May 2016.
Rio Tinto chairman Jan du Plessis said I am very grateful to Richard for his considerable
contribution to Rio Tinto over many years. He provided tremendous support during his
tenure, notably as chairman of the Sustainability Committee. I wish him well for the
future.
Note to editors
For the purposes of section 430(2B) of the Companies Act 2006, Richard Goodmanson will
receive his pro-rata entitlement to non-executive director fees for the month of May 2016.
No payments for loss of office will be made to him.

11 February 2016

Rio Tinto delivers underlying earnings of

$4.5 billion and maintains 2015 full year
dividend at 215 US cents per share
Rio Tinto chief executive Sam Walsh said Against a highly challenging environment, Rio
Tinto delivered a strong performance in 2015 with underlying earnings of $4.5 billion. We
continued to take decisive action to preserve cash through further cost reductions, lower
capital expenditure and the release of working capital. This focus on cash resulted in
operating cash flows of $9.4 billion.
At the same time, we have significantly strengthened our balance sheet and finished 2015
with net debt of $13.8 billion, which is $700 million better than the $14.5 billion pro-forma
position at the end of 2014.
The continued deterioration in the macro environment has generated widespread market
uncertainty. We are embarking on a new round of proactive measures to cut our operating
costs by a further $1 billion in 2016 followed by an additional goal of $1 billion in 2017.
We are also reducing our capital expenditure to $4 billion in 2016 and $5 billion in 2017, an
overall reduction of $3 billion compared with our previous guidance.
These significant actions provide us with the confidence that we remain robustly
positioned to maintain both balance sheet strength and deliver shareholder returns through
the cycle.
Rio Tinto chairman Jan du Plessis said The board has announced today a final dividend of
107.5 US cents per share, bringing the 2015 full year dividend to 215 US cents per share, in
line with 2014.
Over the past five years we have returned more than $25 billion to our shareholders,
underlining our commitment to shareholder returns. However, with the continuing
uncertain market outlook, the board believes that maintaining the current progressive
dividend policy would constrain the business and act against shareholders long-term
interests. We are therefore replacing the progressive dividend policy with a more flexible
approach that will allow the distribution of returns to reflect better the companys position

and outlook. For 2016, we intend that the full year dividend will not be less than 110 US
cents per share.

Year to 31 December

2015

2014

Change

Underlying earnings1 (US$ millions)

4,540

9,305

-51%

Net (loss) / earnings1 (US$ millions)

(866)

6,527

n/a

Net cash generated from operating activities (US$ millions)

9,383

14,286

-34%

Capital expenditure2 (US$ millions)

4,685

8,162

-43%

Underlying earnings per share (US cents)

248.8

503.4

-51%

Basic (loss) / earnings per share (US cents)

(47.5)

353.1

n/a

Ordinary dividends per share (US cents)

215.0

215.0

At 31 December

2015

2014

Change

13,783

12,495

+10%

24%

19%

+5%

Net debt3 (US$ millions)

Gearing ratio4

The financial results are prepared in accordance with IFRS and are unaudited. To allow
production numbers to be compared on a like-for-like basis, production from asset
divestments completed in 2014 have been excluded from Rio Tinto share of production data
but assets sold in 2015 remain in the comparative.
1
Underlying earnings is a key financial performance indicator which management uses
internally to assess performance. It is presented here to provide greater understanding of

the underlying business performance of the Groups operations. Net and underlying (loss) /
earnings relate to (loss) / profit attributable to the owners of Rio Tinto. Underlying
earnings is defined and reconciled to net (loss) / earnings on page 44.
2
Capital expenditure is presented gross, before taking into account any disposals of
property, plant and equipment.
3
Net debt is defined and reconciled to the balance sheet on page 38.
4
Gearing ratio is defined as net debt divided by the sum of net debt and total equity at each
period end.

27 January 2016

Rio Tinto agrees sale of Mount Pleasant

for US$224 million plus royalties
Rio Tinto has reached a binding agreement for the sale of its Mount Pleasant thermal coal
assets to MACH Energy Australia Pty Ltd for US$224 million plus royalties 1.
With the recently announced binding agreement for the sale of Rio Tintos interest in the
neighbouring Bengalla coal Joint Venture, this amounts to US$830 million of agreed sales.
Rio Tinto Copper & Coal chief executive Jean-Sbastien Jacques said These agreements
for over US$800 million in asset sales deliver significant value for our shareholders, with
the potential for future royalties from Mount Pleasant.
We believe Mount Pleasant can have a very positive future under its new owners with
different priorities for development and capital allocation.
Rio Tinto has now announced or completed US$4.7 billion2 of divestments since January
2013.
Mount Pleasant is a large-scale, thermal coal asset in the Hunter Valley of New South
Wales with total marketable reserves of 474 million tonnes3.
The sale is subject to certain conditions precedent being met, including completion of the
restructure of Coal & Allied and regulatory approvals, and is expected to close in the
second quarter of 2016.
Note to editors
Rio Tinto manages Coal & Allied's coal operations, which are located in the Hunter Valley
region of New South Wales, Australia. The operations include Mount Thorley Warkworth,
Hunter Valley Operations and Bengalla.

Rio Tinto recently reached a binding agreement for the sale of Coal & Allieds 40 per cent
interest in the Bengalla coal Joint Venture in Australia to New Hope Corporation Limited
for US$606 million.
Hunter Valley Operations and Mount Thorley Warkworth are multi-seam, multi-pit, opencut mining operations that produced 5.2 million tonnes of semi-soft coking coal and 19.5
million tonnes of thermal coal in 2015.

The agreement includes a payment on completion of US$83 million, two unconditional

deferred payments of US$58 million each payable 8 and 16 months from completion, a
conditional payment of US$25 million, and royalties, payable quarterly at two per cent of
Gross FOB Revenue for coal sold from the first 625 million tonnes of Run of Mine coal
(equivalent to 474 million tonnes of marketable reserves) when prices exceed
US$72.50/tonne. The proceeds of the sale will be used for general corporate purposes. As
of 30 June 2015, the project had gross assets valued at US$144 million and no profits.
2
Amount is before finalisation of net debt and working capital adjustments.
3
This estimate of total marketable reserves was reported on page 199 of the Rio Tinto 2014
Annual Report dated 4 March 2015 which was released to the market on 6 March 2015 and
is available at www.riotinto.com/ar2014. The Competent Person responsible for this reserve
estimate was Mr Andrew Prentice, AusIMM. Rio Tinto confirms that it is not aware of any
new information or data that materially affects this reserve estimate, that all material
assumptions and technical parameters underpinning the estimate continue to apply and have
not materially changed, and that the form and context of the reserve estimate has not been
materially modified.

27 November 2015
Rio Tinto approves US$1.9 billion Amrun (South of Embley) bauxite project

Rio Tinto will expand output from one of the worlds premier bauxite deposits following
approval of the $1.9 billion Amrun project.
Amrun involves the construction of a bauxite mine and associated processing and port
facilities on the Cape York Peninsula in north Queensland.
The planned initial output is 22.8 million tonnes a year1, replacing production from the
depleting East Weipa mine and increasing annual bauxite exports from Cape York by
around 10 million tonnes.
Production and shipping are expected to commence in the first half of 2019, ramping up to
full production by the end of the year. The projects design provides options for future

expansion to 50 million tonnes a year. The majority of capital expenditure for the Amrun
project is scheduled for 2017 and 2018.
Rio Tinto chief executive Sam Walsh said Amrun is one of the highest quality bauxite
projects in the world. It is a tier one asset that will deliver significant benefits to all our
stakeholders.
In addition to generating attractive returns, with mining costs in the first quartile of the
industry cost curve, it will provide jobs and strengthen the economy for the people of Cape
York and Queensland for many decades.
This long-life, low-cost, expandable asset offers a wide variety of development options
and pathways over the coming decades. We are establishing Cape York bauxite as the
product of choice for the Chinese seaborne market with consistent quality, security of
supply and strong technical marketing support. Amrun will be significant in helping to meet
growing bauxite demand from China.
Note to editors
Rio Tinto has agreed with the Traditional Owners to change the name of the South of
Embley project to Amrun, which is the Wik-Waya name for the area where the processing
and port facilities will be developed.
The Amrun project is about 40 kilometres south of Rio Tintos existing East Weipa and
Andoom mines on the Cape York Peninsula in far north Queensland.
Rio Tinto holds 1.49 billion tonnes of bauxite reserves and 1.91 billion tonnes of resources
in the Cape York region2.
At its peak, construction of the project is expected to provide work for around 1100 people.
Once operational, Amrun will help to support ongoing employment for the existing
workforce of around 1400 employees and contractors at Rio Tintos Cape York bauxite
operations.
Rio Tinto has a long history of partnering with Traditional Owners on Cape York.
Aboriginal and Torres Strait Islander people make up around 24 per cent of employees and
the Amrun project will continue creating opportunities for indigenous people from Cape
York and the surrounding region.
Find out more about the Amrun project
1

This production target is underpinned as to 80 per cent by proved ore reserves, and as to
20 per cent by probable ore reserves covering the first ten years of production, which have
been scheduled from current pit designs by Competent Persons in accordance with the

requirements of the Australasian Code for Reporting of Exploration Results, Minerals

Resources and Ore Reserves, 2012 Edition.
2

These estimates of reserves and resources were reported on page 199 and 204 of the Rio
Tinto 2014 Annual report dated 4 March 2015 which can be located at
www.riotinto.com/ar2014. The Competent Persons responsible for that previous reporting
were L McAndrew AusIMM (Reserves) and J Bower AusIMM (Resources). Rio Tinto
confirms that it is not aware of any new information or data that materially affects these
estimates, that all material assumptions and technical parameters underpinning the
estimates continue to apply and have not materially changed, and that the form and context
of the estimates have not been materially modified.

30 September 2015

Rio Tinto agrees sale of interest in

Bengalla Joint Venture for US$606 million
Rio Tinto has reached a binding agreement for the sale of its 40 per cent interest in the
Bengalla coal Joint Venture in Australia to New Hope Corporation Limited for US$606
million1.
Bengalla is the smallest of three coal mines in the Hunter Valley of New South Wales in
which Rio Tinto holds an interest, producing 8.6 million tonnes (3.4 million tonnes based
on a 40 per cent Rio Tinto share) in 2014.
Rio Tinto has now announced or completed US$4.5 billion2 of divestments since January
2013, with the agreed sale of its interest in the Bengalla Joint Venture.
Rio Tinto Copper & Coal chief executive Jean-Sbastien Jacques said This sale will
deliver value for our shareholders as we remain focused on continuing to develop the
strongest core portfolio of assets in the mining industry.
It demonstrates our commitment to further strengthening our balance sheet, maintaining a
disciplined approach to allocating capital across the Group and delivering strong returns for
shareholders through the cycle.
Bengalla mine is a robust, well-managed business with a productive workforce and we
believe it will have a positive future under the new owner with different capital allocation
priorities. We expect the business to make a significant and ongoing contribution to the
New South Wales economy. Rio Tinto will ensure high safety and environmental standards
are maintained through the transition to the new owners.

Rio Tinto and Mitsubishi Development have recently agreed a simplification to the
ownership structure of Coal & Allied which helps enable this transaction. Under the
agreement, Rio Tinto will assume 100 per cent ownership of Coal & Allied. Mitsubishi
Development will move from holding a 20 per cent stake in Coal & Allied to holding a
direct 32.4 per cent stake in the Hunter Valley Operations mine.
Subsequent to the completion of this transaction, Rio Tinto as a 100 per cent owner of Coal
& Allied will:

receive all consideration set out above associated with the sale of Rio Tintos
interest in the Bengalla Joint Venture;

hold a 67.6 per cent interest with management rights in the Hunter Valley
Operations mine;

hold interests of 80 per cent and 55.6 per cent respectively, with management rights,
in the integrated Mount Thorley and Warkworth operations; and

hold a 100 per cent interest in the Mount Pleasant project.

The transactions are subject to certain conditions precedent being met, including the preemption rights of the Bengalla Joint Venture partners.
The sale of the interest in the Bengalla Joint Venture is expected to close in the first quarter
of 2016.
Note to editors
Rio Tinto manages Coal & Allied's coal operations, which are located in the Hunter Valley
region of New South Wales, Australia. The operations include Mount Thorley Warkworth,
Hunter Valley Operations and Bengalla. The Mount Pleasant project is also owned by Coal
& Allied.
Hunter Valley Operations and Mount Thorley Warkworth are multi-seam, multi-pit, opencut mining operations that produced 4.8 million tonnes of semi-soft coking coal and 21
million tonnes of thermal coal in 2014.
Mount Pleasant is a large-scale, thermal coal greenfield project with total marketable
reserves of 474 million tonnes3.
Following the restructure of Coal & Allied, Hunter Valley Operations will be owned by
Coal & Allied (67.6 per cent) and Mitsubishi Development (32.4 per cent).
Mount Thorley is owned by Coal & Allied (80 per cent) and POSCO Australia (20 per
cent). Warkworth is owned by Coal & Allied (55.57 per cent), Mitsubishi Development
(28.9 per cent), Nippon Steel & Sumitomo Metal Australia (9.53 per cent) and Mitsubishi

Materials Australia (6 per cent).

The Mount Pleasant project is owned by Coal & Allied (100 per cent). Coal & Allied holds
a 30 per cent direct and 6.45 per cent indirect interest in Port Waratah Coal Services, the
owner and manager of the Kooragang and Carrington Coal Terminals in the Port of
Newcastle.
1

Sale consideration is AU$865 million converted into US$606 million at the current spot
rate of 0.70.
2
Amount is before finalisation of net debt and working capital adjustments.
3
This estimate of total marketable reserves was reported on page 199 of the Rio Tinto 2014
Annual Report dated 4 March 2015 and released to the ASX on 6 March 2015. The
Competent Person responsible for this reserve estimate was Mr Andrew Prentice, AusIMM.
Rio Tinto confirms that it is not aware of any new information or data that materially
affects this reserve estimate, that all material assumptions and technical parameters
underpinning the estimate continue to apply and have not materially changed, and that the
form and context of the reserve estimate has not been materially modified.