Fact sheet

Energy

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Rio Tinto fact sheet

Energy

Our energy business

Rio Tinto is a leading international business involved in each stage of metal and mineral production. The Group combines Rio Tinto plc, which is listed on the London Stock Exchange, and Rio Tinto Limited, which is listed on the AustralianSecurities Exchange.
As part of its portfolio Rio Tinto produces coal and uranium; two important sources of energy from mining. We produce coal in Australia and the US and uranium in Namibia and Australia, which we sell to worldwide markets. Rio Tinto is one of the worlds major producers of export thermal coal, used for electricity generation in power stations. Electrification is a key aspect of development, and developing countries in particular rely on the affordable electricity that coal provides. We also produce coking coal for steel making. Rio Tinto is one of the worlds largest producers of uranium. This uranium is used exclusively for the generation of nuclear electricity. We follow strict security measures to ensure our uranium products are used only for peaceful purposes.
Left Rio Tinto produces coal (pictured) in Australia and the US, and uranium in Namibia and Australia.

We want to ensure the sustainable future use of coal and uranium as energy sources, and so we are investing in various technologies andareas of research that are furthering this cause. Burning coal is a major contributor to man made greenhouse gases. RioTinto has accepted the challenge, with other producers and governments, to implement low emission technologies to reduce emissions of greenhouse gases to the atmosphere from the combustion of coal.

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Rio Tinto fact sheet

Energy

Coal

To ensure that coal remains a valuable long term energy source for the world, coal producers and users need to minimise the effects of burning coal, and reduce the amount of carbon dioxide emissions from power plants.

Producing coal
Coal is formed from plants that grew on Earth millions of years ago. As the plants died, and became buried beneath the Earths surface, they were exposed to heat, pressure and chemical reactions that turned them into coal. The worlds currently identified coal reserves can meet present levels of demand for about 200 years. Coal is mined either from open pit mines at the Earths surface, or in underground mines. Once extracted, it is sized and blended according to our customers needs, thenloaded into trains to be delivered or exported.

Using coal
Rio Tinto Energy produces two types of coal thermal coal and coking coal: Thermal coal: this is also known as steam coal. It is primarily used to generate electricity in power stations. The energy released when the coal is burned is used to turn water into steam, which drives turbines that generate electricity. We produce low sulphur coal, which helps our customers meet their requirements for low sulphur dioxide emissions. Coking coal: this is also known as metallurgical coal and is mainly used in making steel. It is a higher value product than thermal coal. Coking coal supplies both heat and carbon to the process that converts iron ore intosteel. To ensure that coal remains a valuable long term energy source for the world, coal producers and users need to minimise the effects of burning coal, and reduce the amount of carbon dioxide emissions from power plants. Rio Tintos Energy group is involved in various initiatives to help secure coals future as an energy source. These include support for numerous research and demonstration projects including the COAL21 programme in Australia.

Right Coal is mined either from open pit mines at the Earths surface, or in underground mines.

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Rio Tinto fact sheet

Energy

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Rio Tinto fact sheet

Energy

We have a number of brownfield andgreenfield opportunities that will help meet rising demand forcoalandenergy.

Our coal operations

Rio Tintos coal operations are in eastern Australia and the western US. Australian operations Rio Tinto Coal Australia (RTCA) is a wholly owned subsidiary of RioTinto. RTCA manages Rio Tinto Energys coal mines in Queensland: Blair Athol (Rio Tinto: 71 per cent), Clermont (50.1 per cent), with coal production commencing early 2010, Kestrel (80 per cent), and Hail Creek (82percent). Upon reaching full capacity, scheduled for 2013, Clermont will become Australias largest coal producer. Production from Clermont will replace that from Blair Athol. RTCA also provides management services to, and owns 75.7 per cent of, Coal & Allied, which mines coal in New South Wales. Coal & Allied wholly owns the Hunter Valley Operations mines and has partial ownership of other mines in the region: Bengalla (Rio Tinto: 30.3 percent), Mount Thorley (60.6percent) and Warkworth (42.1per cent). Rio Tinto Coal Australias deposits contain a mixtureof thermal and coking coal.

US operations In 2007, Rio Tinto announced its decision to explore divestment of RioTinto Energy America (RTEA). At that time, RTEA owned and operated four coal mines in the USs Powder River Basin of Montana and Wyoming (Jacobs Ranch, Antelope, Spring Creek and Cordero Rojo), and held a 50percent interest in the Decker coalmine. RTEA also owned the Colowyo mine in Colorado. Colowyo Coal, a Rio Tinto managed operation, was separated from RTEA in 2008 because it was not part of theasset divestmentprogramme. In 2009, Rio Tinto sold Jacobs Ranch. In the same year, Rio Tinto formed Cloud Peak Energy Inc. and launched an initial public offering (IPO) as a way of divesting Antelope, Spring Creek and Cordero Rojo, as well as the stake in the Decker mine. Rio Tinto has retained an interest of 48 per cent in Cloud Peak.

Our coal projects

We have a number of brownfield andgreenfield opportunities that will help meet rising demand for coalandenergy. Rio Tinto Coal Australia Kestrel: a mine extension plan, forecast to be in production in late 2012/early 2013, will help meet Asian demand for metallurgical coal. Coal & Allied Mount Pleasant: the company is currently reviewing the 2008 engineering feasibility study to update the economic assumptions and technical design considerations for this coal mine project next to the Bengalla mine. Coal & Allied is in the process of identifying modifications that may be required to the existing regulatory consents and approvals, and proceeding to apply for those remaining regulatory consents and approvals needed to progress the proposed development of MountPleasant. Project work is continuing to examine opportunities to expand production at the Bengalla Mine and to extend the mining life of Mount Thorley and Warkworth.

Top Colowyo coal mine supplies electricity generators in the south west US. Right Kestrel mine in Australia, where an expansion project will help meet Asiancoal demand.

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Rio Tinto fact sheet

Energy

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Energy

Rio Tinto fact sheet

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Rio Tinto fact sheet

Energy

Uranium

Uraniums chemical properties can be harnessed to produce electricity without the generation of carbondioxide.
Producing uranium
Uranium, a metallic element, is one of the most powerful natural sources of energy. Its chemical properties can be harnessed to produce electricity without the generation of carbondioxide. At Rio Tintos uranium mines, ore is blasted and transported to a processing facility where it is crushed to the size of fine sand. Uranium is dissolved from the rock using sulphuric acid, manganese and iron oxide. It is then recovered from the solution in a number of stages. The uranium is extracted using an organic liquor; the organic liquor is then stripped using ammonium sulphate to concentrate the uranium for precipitation. Gaseous ammonia is added to form a solid called yellow cake, which is centrifuged and roasted to produce uranium oxide powder. This powder is the product that RioTinto supplies to its customers.

Using uranium
Uranium oxide is transformed into nuclear fuel through processes called conversion and enrichment. The resultant nuclear fuel rods are then inserted into a nuclear reactor to produce energy. Nuclear energy is generated by the splitting of uranium atoms, a process that releases a large amount of heat. This heat is then used to convert water into high temperature steam, which in turn drives the turbines in a generator to produce electricity. Nuclear energy is an important form of low carbon emitting electricity generation. The lifecycle carbon emissions arising from nuclear power are comparable with solar and wind power. The world is currently seeing significant growth in nuclear power as governments grapple with the challenge of reducing greenhouse gasemissions.

Left Uranium, produced at Rssing and ERA (pictured) is used for the generation of nuclear energy.

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Rio Tinto fact sheet

Energy

Were able to help meet rising demandfor nuclear power by increasing production from our existing uranium operations.

Our uranium operations

Rio Tinto is one of the worlds largest uranium producers, operating the second and third largest uranium mines in the world and representing about 16 per cent of global supply. RioTinto Energy has interests in Energy Resources of Australia Ltd (ERA) (Rio Tinto: 68 per cent) and Rssing Uranium Ltd in Namibia (69per cent). Energy Resources of Australia ERA owns and operates the Ranger mine, 260km east of Darwin, Northern Territory. Ranger is the second largest uranium mine in the world and has been operating since 1980. ERA sells its products to power utilities in Japan, South Korea, China, Europe and North America, for the generation of nuclear electricity. In 2009, ERA sold its one hundred thousandth tonne of uranium oxide since the start of production. Rssing is the only other uranium mine to have reached this benchmark. ERA also owns the Jabiluka deposit, the second largest undeveloped uranium deposit in the world. Rssing Uranium Rssing Uranium produces uranium oxide from its open pit mine in the Namib Desert, and exports it from Namibia to power utilities globally. Exploration has given confidence that the mine could operate until 2020.

Our uranium projects

Were able to help meet rising demandfor nuclear power by increasing production from our existing uraniumoperations. Energy Resources of Australia: currently seeking approval for the establishment of a heap leach facility at the Ranger mine. The project targets the production of 15,000 to 20,000 tonnes of uranium oxide from low grade ore between 2013 and the end of 2020. ERA is also conducting a feasibility study into the construction of an exploration decline that will enableclose spaced drilling of the Ranger 3 Deeps deposit. Rssing Uranium: a pilot project for a heap leach facility is in progress which together with proposed improvements to the plant will significantly increase capacity. There are also a number of resources surrounding the Rssing deposit which may provide expansion opportunities in the future.

Top A haul truck driver trains in a simulator at Rssing, one of the largest uranium mines inthe world. Right A maths and science learning centre established by the Rssing Foundation, which undertakes community developmentactivities in Namibia.

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Rio Tinto fact sheet

Energy

Energy group operations and projects

Coal Operations 1 Hail Creek (82%) 2 Clermont (50.1% operational from 2010)/Kestrel (80%) and Blair Athol (71%) 3 Bengalla (30%) 4 Hunter Valley Operations (76%)/ Mount Thorley Warkworth (61%) 5 Colowyo 6 Antelope (48.3%)/ Cordero Rojo (48.3%) 7 Spring Creek (48.3%)/ Decker (24.1%)

Coal Projects 3 Mount Pleasant (75.7%) Uranium Operations 8 ERA (68%) 9 Rssing (69%)

Locations on the map are indicative Operations and projects are wholly owned unless otherwise shown.

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