Chartbook. March 2018

Transcription

1 Chartbook March 2018

2 Contact details Investor Relations, EMEA/ North America John Smelt Office: +44 (0) Mobile: +44 (0) David Ovington Office: +44 (0) Mobile: +44 (0) Nick Parkinson Office: +44 (0) Mobile: +44 (0) Investor Relations, Australia/ Asia Natalie Worley Office: +61 (0) Mobile: +61 (0) natalie.worley@riotinto.com Rachel Storrs Office: +61 (0) Mobile: +61 (0) rachel.storrs@riotinto.com

3 1 Cautionary statements 2 Mineral resources, reserves and production targets 3 Overview 4 Safety and health come first 5 Cash focus with capital discipline delivers strong shareholder returns 6 Rio Tinto a world leader in mining 7 Where we operate 8 More than 85% of assets in OECD 9 Strength in diversity 10 Superior returns from world-class assets 11 Productivity will further enhance our ROCE and TSR 12 Strategy will deliver value through the cycle 13 Disciplined capital allocation full year highlights 15 Our strategy is delivering 16 Disciplined allocation of strong cash flow in Robust demand drove stronger prices in Outperforming in key commodities 19 Higher prices driving increased earnings 20 Net earnings 21 $2 billion cost-cut programme completed 22 Focus now on delivering mine to market productivity 23 Productivity programme delivering $5 billion of additional free cash flow by Sustaining capital and compelling growth 25 Strong balance sheet 26 High return growth 27 Application of the returns policy 28 Delivering superior returns for shareholders 29 Delivering superior returns for shareholders 30 Delivering $5 billion of additional free cash flow from productivity production guidance guidance 33 Market outlook 34 Global macro indicators remain supportive 35 Impact of China policy changes on steel capacity 36 Demand for quality iron ore remains strong, with the high/low spread continuing 37 Attractive margins and pollution controls supporting a sustained focus on productivity 38 Impact of China policy changes on aluminium capacity 39 Strong global aluminium demand with Chinese production at a turning point 40 Increasing returns on bauxite and alumina 41 Rio Tinto well placed to benefit from copper s attractive long-term fundamentals 42 Iron Ore 43 Iron ore 2017 highlights 44 Iron ore: increased price, cost reductions and volumes 45 Strong business foundations and clear strategy 46 Our Pilbara blend remains the product of choice 47 A fully integrated asset network 48 Capital for high-quality asset options to maintain Pilbara blend and the broader portfolio 49 Iron ore: our low-cost advantage has been sustained over many years 50 Productivity options to continue to deliver cash benefits 51 Priority is to optimise infrastructure capacity and flexibility 52 Significant improvements achieved across our mines 53 Along with AutoHaul TM, there are many levers to optimise rail circuit capacity and improve flexibility 54 AutoHaul TM making strong progress 55 Aluminium 56 Aluminium 2017 highlights 57 Aluminium higher prices driving increased earnings 58 Strategy for outperformance through the cycle 59 We will maintain our low-cost position 60 Unrivalled assets in the Saguenay 61 Productivity options to continue to deliver cash benefits March 2018

4 62 Asset performance drives next phase of productivity 63 Smelters creeping at 1% per annum, double industry average 64 Enhancing margins through VAP 65 Copper & Diamonds 66 Copper & Diamonds 2017 highlights 67 Copper & Diamonds: higher prices and cost savings partly offset by one-offs, lower volumes and inflation 68 Sector-leading attributes 69 Strategy to deliver further value 70 Productivity options to continue to deliver cash benefits 71 Kennecott a stronger contributor to cash 72 OT underground is a Tier 1 asset 73 Approved OT underground capital expenditure 74 OT production profile to end of lateral development phase in Oyu Tolgoi the leading Tier 1 copper project 76 Non-managed interest in two of the world s best copper mines 77 Grasberg metal strip 78 Future optionality for the Copper business 79 Delivering medium-term growth and progressing long-term options 80 Developing our people and our partnerships 81 Energy & Minerals 82 Energy & Minerals 2017 highlights 83 Energy & Minerals : higher prices and further cost improvements driving earnings 84 Maximising value from the Energy and Minerals portfolio 85 A lean, scalable operating model running cash-focused businesses 86 Borates 87 Coal 88 Iron Ore Company of Canada 89 Iron & Titanium 90 Maximising ore value through product portfolio 91 Energy & Minerals is the Incubator for new commodities 92 Growth & Innovation 93 Growth & Innovation enabling value generation across asset life cycle 94 Our focus builds on leadership in data, technology and automation 95 Driving Rio Tinto mine to market productivity 96 Delivering $1.5 bn additional free cash flow each year from Declining industry exploration investment and success 98 Extensive and successful exploration programme 99 Corporate Information 100 Dividend policy and capital commitment 101 Credit rating 102 Modelling earnings 103 Accounting treatment of principal operations 104 Accounting treatment of principal operations 105 Principal corporate activity Principal corporate activity Ongoing major capital projects 108 Ongoing major capital projects 109 Geographical analysis of Rio Tinto shareholders 110 Rio Tinto Executive Committee 111 Rio Tinto board diverse, operational experience 112 Rio Tinto board diverse, operational experience March 2018

5 Cautionary statements 1 This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited ( Rio Tinto ). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of The words intend, aim, project, anticipate, estimate, plan, believes, expects, may, should, will, target, set to or similar expressions, commonly identify such forward-looking statements. Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation. For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty. In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation. Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward-looking statements will not differ materially from actual results. In this presentation all figures are US dollars unless stated otherwise. Disclaimer Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto. By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies. This presentation contains a number of non-ifrs financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto s annual results press release and/or Annual report. Mineral resources, reserves and production targets 2 Ore Reserves (slide 26) Reserve grade for Oyu Tolgoi Underground Hugo Dummett North and Hugo Dummett North Extension. Probable Ore Reserves for Hugo Dummett North and Hugo Dummett North Extension (499 Mt at 1.66% Cu, 0.35g/t Au) were released to the market in the 2017 Rio Tinto Annual Report on 1 March 2018 and can be found on p229 of that report. The Competent Person responsible for reporting of those Ore Reserves was J Dudley. Reserve grade for Amrun (formerly South of Embley). Proved and Probable Ore Reserves (1,258Mt at 53.0% Al 2 O 3 ) for Amrun (South of Embley) were released to the market in the 2017 Rio Tinto Annual Report on 1 March 2018 and can be found on p228 of that report. The Competent Person responsible for reporting of those Ore Reserves was L McAndrew. Rio Tinto is not aware of any new information or data that materially affects the above reserve grade estimates as reported in the 2017 Annual Report, and confirms that all material assumptions and technical parameters underpinning these estimates continue to apply and have not materially changed. The form and context in which each Competent Person s findings are presented have not been materially modified. Mineral Resources and Ore Reserves The Mineral Resource estimate for Resolution which appears on slide 78 was reported in Rio Tinto s 2017 Annual Report released to the market on 1 March This resource estimate is reported on a 100% basis. The Competent Person responsible for that previous reporting was C Hehnke (AusIMM). Rio Tinto is not aware of any new information or data that materially affects the above Mineral Resource and Ore Reserve estimates as reported in the 2017 Annual Report. All material assumptions on which the estimates in the 2017 Annual Report were based continue to apply and have not materially changed. The form and context in which those findings are presented have not been materially modified. Mineral Resources are reported exclusive of Ore Reserves. Ore Reserves are reported as product tonnes. Mineral Resources are reported on an in situ basis. Production Targets The production target for Oyu Tolgoi shown on slides 26, 72, 74 and 79 is the average production , including open pit production. This production target was disclosed in a release to the market on 6 May 2016 ( Rio Tinto approves development of Oyu Tolgoi underground mine ). All material assumptions underpinning these production targets continue to apply and have not materially changed.

6 Overview Safety and health come first 4 Continuing history of improvement Safety fatality at Kennecott Operations and Health fatality in Pilbara Exploration in October 2.78 Rio Tinto ICMM (23 companies) Focusing on fatality elimination 1.5 million CRM verifications in 2017 All injury frequency rate per 200, Reducing injuries Targeted hazard elimination campaigns Catastrophic event prevention through control of major hazards Mental health, wellbeing and fatigue management Connection with engagement, leadership and productivity initiatives Critical Health Risk Management

7 Cash focus with capital discipline delivers strong shareholder returns 5 Long-term strategy Cash focus Capital discipline and shareholder returns Team and performance culture World-class assets Value over volume Strong balance sheet Safety first Delivering >2% CAGR 1 CuEq growth $5 billion free cash flow from mine to market productivity by 2021 $8.2 billion of cash returns announced in 2017 Assets at the heart of our business Licence to Operate Free cash flow yield Portfolio shaping Commercial and operational excellence 1 Copper equivalent CAGR, Rio Tinto a world leader in mining 6 Aluminium Industry-leading bauxite position Alumina refineries provide competitive security of supply for our smelters Sector-leading primary aluminium metal EBITDA margins, driven by low-carbon, low-cost power Copper & Diamonds Significant producer of copper from our assets in the USA, Mongolia, Chile and Indonesia Diverse diamonds business Maximises our technical underground mining expertise Energy & Minerals Australian producer of hard coking coal Leading supplier of titanium dioxide feedstocks, zircon and borates Supplier of salt and uranium Iron Ore Company of Canada produces concentrates and pellets Iron Ore World-class Pilbara operations in Western Australia Supplies our premium Pilbara Blend lump and fines products Industry-leading margins supported by automation, innovation and technology

8 7 Where we operate North America Europe Asia Key Mines and mining projects Africa Smelters, refineries, power facilities and processing plants remote from mine Aluminium Copper & Diamonds Energy & Minerals Iron Ore South America Australasia 8 More than 85% of assets in OECD 2017 total assets (excluding non-controlling interests) by region Canada 21% Europe 4% Mongolia 3% US 8% Other Asia1 2% Other Asia mainly relates to assets in Singapore and Oman. 1 Total assets as at 31 December 2017 adjusted for non-controlling interests, cash, current and deferred tax receivables and derivatives. Excludes assets held for sale, cash and bank balances, current and deferred tax receivables, derivative assets. 5% South America 2% Indonesia Africa 6% Australia/NZ 49% 2017 total assets = $72 billion

9 Strength in diversity 9 Revenue by destination Percentage 5% 9% Revenue by commodity Percentage Diamonds 2% 17% China 44% Coal 7% North America Aluminium 27% Iron ore 50% Other Asia 13% 12% Japan Copper & Gold 5% Consolidated sales revenue in 2017 was US$40.0 billion Superior returns from world-class assets 10 Iron Ore Aluminium Copper & Diamonds Energy & Minerals Margins 68% Pilbara operations FOB EBITDA margin 35% Integrated operations EBITDA margin 39% EBITDA margin 36% EBITDA margin Cash flow Cash flows from operations of $8,466m Development capex of $653m Cash flows from operations of $2,648m Development capex of $654m Cash flows from operations of $1,695m Development capex of $1,159m Cash flows from operations of $1,939m Development capex of $32m Free cash flow of $7,265m Free cash flow of $1,380m Free cash flow of $319m Free cash flow of $1,467m

10 Productivity will further enhance our ROCE and TSR 11 Rio Tinto has achieved the highest ROCE every year since 2013 Average ROCE since providing superior shareholder returns TSR since 2013 Additional $1.5 billion free cash flow in 2021 from productivity will drive the next phase of outperformance 12% 7% +3% 15% 8% (24%) Rio Tinto Average diversified peers Rio Tinto Average diversified peers 12m to June 17 ROCE 12m to June 17 ROCE + increased productivity (1) 2 Source: FactSet as of 1 November 2017 and company financials for Rio Tinto and diversified peers Note: Diversified peers: Anglo American, BHP, Glencore, Vale 1 Based on average of each company s ROCE between 2013 and 1H2017, with 1H17 given 50% weighting compared to full year results 2 Additional $1.5bn of increased free cash flow from productivity in Strategy will deliver value through the cycle 12 Superior cash generation World-class assets Portfolio Operating excellence Performance Capabilities People & Partners Disciplined capital allocation Balance sheet strength Superior shareholder returns Compelling growth

11 Disciplined capital allocation 13 1 Essential sustaining capex 2 Ordinary dividends Further cash returns to shareholders Compelling growth 3 Iterative cycle of Debt management 2017 full year highlights

12 Our strategy is delivering 15 Cash returns to shareholders of $9.7 billion declared for Highest ever full year dividend of $5.2 billion (290 US cents per share) - Additional share buy-back of $1.0 billion to be completed in 2018 EBITDA of $18.6 billion, margin of 44% Reshaping the portfolio with divestment proceeds of $2.7 billion Invested $2.5 billion in high-return growth - Silvergrass commissioned, Oyu Tolgoi underground and Amrun on track Delivered $0.4 billion free cash flow from productivity Disciplined allocation of strong cash flow in Cash flow 2017 ($ billion) $8.2 billion (49)% of cash generated in 2017 allocated to shareholder returns ($ billion) Total cash from asset disposals of $2.8bn $1.2 billion allocated to Australian tax payment 5.9* $1.9 billion allocated to share buy-back in Net cash generated from operating activities Sales of PP&E Disposals Total cash generated Sustaining capital Shareholder returns Growth capital Balance sheet strength * Balance sheet net debt reduction of $5.8bn comprises $5.9bn of net cash movement and $(0.1)bn of non-cash, exchange and other movements

13 Robust demand drove stronger prices in Iron Ore Aluminium Iron ore (FOB) 2015 avg 2016 avg 2017 avg Copper Aluminium (LME + MW Premium) 2015 avg 2016 avg 2017 avg 3 Hard Coking Coal Copper 2015 avg 2016 avg 2017 avg HCC 2015 avg 2016 avg 2017 avg Outperforming in key commodities Rio Tinto Iron Ore EBITDA performance EBITDA margin (%) 70% 60% 50% 40% 30% 20% 50% 40% 30% 20% 10% 10% 20% 30% 40% -44% 50% H115 H215 H116 H216 H117 H217 RTIO (LHS) Source: Bloomberg, Metal Bulletin, Platts. Upstream aluminium EBITDA margins 58% price relativity (RHS) Rio Tinto Competitors 58% relativity to Platts 62% index 0% Iron Ore EBITDA FOB margin increases to 68% Significant spread between high and low quality iron ores Steelmakers targeting high-grade / low-impurity iron ore products Margin gap: portfolio quality and performance delivery Aluminium EBITDA margin increases to 35% in 2017 VAP 57% of primary metal sold, premium of $221/t in addition to the market premium 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Rio Tinto internal analysis which includes adjustments to externally reported EBITDA margins, trading, procurement and marine revenues to report performance on a comparable basis. Competitors included in the analysis are Rusal, Hydro and Alcoa. 18

14 Higher prices driving increased earnings 19 Underlying earnings 2016 vs 2017 $ billion (post tax) (0.3) (0.4) (0.2) (0.1) (0.1) Total cost reductions 1 of $0.4bn post-tax or $0.6bn pre-tax 0 FY2016 underlying earnings Price Exchange rates Energy & inflation Flexed FY16 underlying earnings Volumes Cash cost reductions Escondida strike No C&A vols from Sept Tax & Other FY2017 underlying earnings 1 Cash cost reductions include reductions in Exploration & Evaluation costs Net earnings 20 US$m 2017 underlying earnings 8,627 Impairments (481) Net gains on disposals 2,022 Exchange gains/losses on debt and derivatives Changes in corporate tax rates in the US and France Adjustment to deferred tax assets relating to planned divestments Other net earnings 8,762 (810) (439) (202)

15 $2 billion cost-out programme completed 21 Pre-tax operating cash cost improvements Reduction vs ($ billion) $8.3 billion cost savings achieved since 1 Jan 2013 $2.2 billion cost savings across 2016/ Achieved target six months ahead of schedule 1.5 Offsetting raw material cost headwinds of $0.2 billion in ,208 Total savings Focus now on delivering mine to market productivity 22 Post-tax mine to market (M2M) productivity programme ($ billion) 0.7 Volumes 0.2 (0.2) Cost (0.1) Cost and volumes Tax (notional 30%) Cost and volumes (post-tax) Adjustments* Iron ore volumes adjustment 2017 M2M free cash flow * M2M productivity programme excludes non-managed assets and assets scheduled for closure within (refer to slide 43)

16 Productivity programme delivering $5 billion of additional free cash flow by Post-tax mine to market (M2M) productivity programme ($ billion) Headwinds from raw material inputs (0.3) $0.4 billion mine to market free cash flow delivered in 2017 Cumulative 2017 and 2018 mine to market forecast of $1.1 billion $0.3 billion mine to market forecast in 2018 despite raw material cost headwinds Delivering $1.5 billion mine to market each year from M2M 2017 M2M sustained in expected cost headwinds 2018 M2M forecast* 2017 & 2018 M2M cumulative total* * Based on consensus prices and exchange rates Sustaining capital and compelling growth 24 Capital expenditure profile $ billion 4.5 ~5.5 ~6.0 ~6.0 Maintained sustaining capital guidance of $2.0 to $2.5 billion per year, including: Iron Ore sustaining capex of ~$1 billion per year Pilbara replacement capital includes Koodaideri development from F 2019F 2020F Sustaining Pilbara replacement Other replacement Development Other replacement capital includes: South wall pushback at Kennecott Amrun replacement tonnes Zulti South Development capital includes: Oyu Tolgoi, including development of power station Amrun AutoHaul TM

17 Strong balance sheet 25 Net debt ($ billion) Adjusted net debt of $7 billion reflecting: $1.9 billion outstanding from Sept-2017 buy-back 9.6 $1.2 billion tax payment in 2018 based on 2017 profits Strong balance sheet: Provides stable foundation against any market volatility Supports superior shareholder returns through the cycle Enables investment in compelling growth New leasing accounting standard to come into effect from January 2019 Dec-16 Dec-17 SBB announced in Sept-17 Australian tax payment Adjusted Dec-17 * Figures are prepared in $ millions, and are therefore more precise than the rounded numbers shown High-return growth 26 Amrun Creating seaborne bauxite market, high-grade, expandable Oyu Tolgoi Underground Largest and highest quality copper development in the world Significant portfolio opportunities Pilbara iron ore, Queensland bauxite, Canadian aluminium, TiO 2 Longer-term growth opportunities Extensive exploration and evaluation programme and early stage projects >20% IRR >20% IRR >15% IRR hurdle rate requirement 2017 E&E spend of $445 million in 16 countries across 8 commodities $1.9 billion capex, first quartile opex $5.3 billion capex, first quartile opex 22.8 Mt/a, project ~60% complete, commissioning H First drawbell production: 2020 Full production ~560 kt/a 1 ( ) 53.0% alumina content % Cu, 0.35g/t Au 1 Pilbara: progressing Koodaideri FS, significant resource optionality, latent capacity and productivity opportunity Brownfield aluminium options: Alma, AP60, subject to market conditions Bauxite expansion options TiO 2 latent capacity Project options under assessment include: - Resolution copper - Zulti South mineral sands - Jadar lithium/borates 1 Refer to the statements supporting these reserve grades and production targets set out on slide 2 of this presentation

18 Application of the returns policy 27 Capital return considerations Results for 2017 Long term growth prospects Balance sheet strength Strong earnings/ cash generation supplement with additional returns per cent of underlying earnings through the cycle Balanced between growth and shareholder returns Outlook Comments Underlying earnings up 69% to $8.6 billion Operating cash flow of $13.9 billion Commissioned Silvergrass, focused on Amrun and Oyu Tolgoi Ongoing exploration and evaluation programme. Rio Tinto Ventures established Strong balance sheet with adjusted net debt of $7 billion Payout >60% threshold possible because of strong performance One-off asset disposal proceeds of $2.7 billion Payout >60% threshold possible based on (i) strong 2017 prices (ii) disposals (iii) strong balance sheet Defined growth pipeline provides capacity to allocate more to shareholder cash return and debt reduction Strong global growth, strong demand for premium products Potential for continued price volatility Delivering superior returns for shareholders 28 Cash returns paid to shareholders in 2017 ($ billion)* Paid Paid Paid Paid Final 2016 dividend paid of 125 US cents per share, and record 2017 interim dividend of 110 US cents per share, $4.2 billion in total paid to shareholders Share buy-back of $1.5 billion in Rio Tinto plc shares completed in 2017 Paid Paid Supplementary share buy-back of $0.6 billion from Coal & Allied sale proceeds completed in 2017 via off-market share buy-back in Rio Tinto Limited final dividend SBB announced in Feb interim dividend SBB Ltd off-market announced in SBB in Nov-17 Aug paid returns

19 Delivering superior returns for shareholders returns declared to shareholders ($ billion) Record full year 2017 dividend declared of $5.2 billion or 290 US cents per share, including final 2017 dividend declared of 180 US cents per share Paid interim dividend Paid 1.0 SBB announced in Aug-17 $2.5bn from Coal & Allied sale proceeds Paid 0.6 Ltd offmarket SBB in Nov Plc onmarket SBB in final dividend 1.0 SBB announced in Feb announced returns Additional share buy-back of $1.0 billion in Rio Tinto plc shares to be completed in 2018 Share buy-back of $1.0 billion in Rio Tinto plc shares announced in August 2017 and completed by end-2017 Supplementary share buy-back of $2.5 billion from Coal & Allied sale proceeds including: $0.6 billion returned in 2017 via off-market share buy-back in Rio Tinto Limited $1.9 billion balance being returned in 2018 via on-market buy-back in Rio Tinto plc Delivering $5 billion of additional free cash flow from productivity 30 Mine to market productivity Marketing with a focus on four levers delivering $5 billion of additional free cash flow Mining Infrastructure Best practice Asset management Processing Partnering with our suppliers Productivity Opportunity (5 years) Major Projects Automation Exploration Data and technology Iron Ore Aluminium Energy & Minerals Copper & Diamonds

20 2018 production guidance 31 Iron Ore: Pilbara shipments Mt (100% basis) Aluminium: Mt bauxite, Mt alumina, Mt aluminium Copper & Diamonds: kt mined copper, kt refined copper, Mcts diamonds Coal: Mt hard coking, Mt thermal IOC: Mt iron ore pellets and concentrate TiO 2, borates, uranium: Mt TiO 2 slag, 0.5 Mt boric acid equivalent, Mlbs uranium Guidance 32 Additional cumulative free cash flow of $5bn from 2017 to 2021 from mine to market productivity improvements, including $0.3bn in 2018, net of $0.3bn of cost headwinds Targeting an annual exit rate from mine to market productivity improvements of $1.5bn per year from 2021 Capex of ~$5.5bn in 2018, ~$6.0bn in 2019 and ~$6.0bn in 2020 Effective tax rate on underlying earnings of ~30% in 2018

21 Market outlook Global macro indicators remain supportive 34 YoY YTD PMIs remain elevated Index China housing sales and starts slowing modestly US Eurozone China Japan Jan 2015 Jul 2016 Jan 2016 Jul 2017 Jan 2017 Jul 0-2 Area under construction Starts (RHS) Sales (RHS) 2015 Jan 2015 Jul 2016 Jan 2016 Jul 2017 Jan 2017 Jul Source: CEIC, Rio Tinto YoY YTD Global growth momentum remains healthy US growth supported by record high consumer confidence and healthy manufacturing and investment EU performing better than expectations on stronger manufacturing and consumer confidence China may slow modestly over the next six months but outlook remains positive in the medium to long-term Chinese environmental policy measures are increasing demand for higher grade iron ore and reducing new aluminium capacity Positive GDP momentum YoY growth (%) Q Q Q Q Q Q Q Q4 United States (LHS) Eurozone (LHS) China (RHS) YoY growth (%)

22 Impact of China policy changes on steel capacity 35 Supply-side reform steel capacity cuts by province (excluding IFs) Cuts of 58 Mtpa of steel capacity in 2017 and 2018 ~5% of total Chinese steel capacity Others 8 Mtpa Jiangsu 6 Mtpa Anhui 5 Mtpa Hebei 34 Mtpa Shandong 5 Mtpa In addition to induction furnace (IF) capacity closures of >100 Mtpa in 2017 Idled capacity is unlikely to restart Further 52 Mtpa of cuts from environmental winter policy in 2017 and 2018 Offset from possible increases outside the 2+26 region or increased use of scrap Consolidation in the steel industry expected to drive demand for high-value products Source: MIIT, Wood Mackenzie, Rio Tinto Market Analysis Demand for quality iron ore remains strong, with the high / low spread continuing 36 Iron ore prices $ per tonne Nov 16 Feb 17 May 17 Aug 17 Nov 17 Feb 18 May 18 Iron ore low grade relativity % % relativity to Platts 62% index Platts 62% SGX forward Iron ore futures market no longer characterised by the structural backwardation of recent years The wide spread between high and low quality ores sustained Steelmakers targeting high-grade / low-impurity iron ore products 90% 70% MBIO 58%:Platts 62% -44% 50% Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Source: Bloomberg, Metal Bulletin, Platts.

23 Attractive margins and pollution controls supporting a sustained focus on productivity 37 China mill cash margins $ per tonne Private Billet Private Rebar SOE HRC Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Steel stocks at traders and mills Mt Steel demand and prices in China supported by growth across key end-use sectors Low steel stocks, attractive mill margins and winter controls underpin demand for higher quality iron ore Lower quality iron ore accounts for around 70% of port inventories in China Traders' stocks updated to 03-Nov-17, while latest available CISA mills' stocks data reflects mid-oct W1 W11 W21 W31 W41 W51 Source: Mysteel, CEIC, NBS. Impact of China policy changes on aluminium capacity 38 Supply-side reform aluminium capacity cuts by province Xinjiang 0.9 Mtpa Inner Mongolia 0.4 Mtpa 3.8 Mtpa of illegal capacity removed in 2017 and 2018 ~9% of total Chinese aluminium capacity Potential for some restarts 0.7 Mtpa of capacity cuts from environmental winter policy in 2017 and 2018 Others 0.1 Mtpa Shandong 2.5 Mtpa ROW smelters expected to ramp up activities and restart idled capacity as a result of the two policies Rio Tinto well placed with low carbon brownfield expansion potential Source: Baiinfo, Aladdiny, Rio Tinto Market Analysis

24 Strong global aluminium demand with Chinese production at a turning point 39 Primary aluminium production and stocks Million tonnes Ex-China production China production Stocks (right axis) Weeks of consumption Aluminium demand growth ~4% p.a. next 5 years Strict enforcement of Chinese capacity control and winter cut regulations in smelting and alumina: Illegal capacity cuts: aluminium ~ Mt, bauxite ~10Mt Winter cuts: aluminium ~ Mt, alumina ~ Mt China expected to be broadly balanced in aluminium in medium to long-term Seaborne bauxite demand driven mainly by China import requirements: Aluminium/alumina demand Domestic bauxite quality deteriorating Source: Rio Tinto, CRU Group Increasing returns on bauxite and alumina 40 Managed bauxite production Million tonnes Maximising value from our existing bauxite operations % year production track record: Weipa 6% p.a. / Gove 8% p.a. Maximising value-in-use by customer Value over volume, optionality post-amrun Alumina productivity: maximising use of installed capacity Production track record: 10% p.a. since 2011 Labour reduction > 20% Advanced process control Weipa production Gove production 2018 production guidance 49 to 51Mt bauxite as East Weipa transitions to Amrun 8.0 to 8.2Mt alumina

25 Rio Tinto well placed to benefit from copper s attractive long-term fundamentals 41 Copper supply/demand (million tonnes) Surplus Deficit Market has rebalanced after a number of years of oversupply Small deficit expected this year and next, as mine supply fell year-on year, whilst demand continues to grow. Rio Tinto copper growth to be delivered into a supply deficient market Further demand growth expected in China and other emerging markets Base Supply Demand Source: Wood Mackenzie Q Rio Tinto. Includes Wood Mackenzie estimates of production from Oyu Tolgoi underground. Consumer goods and new uses to provide upside renewable energy electric vehicles Iron Ore

26 Iron Ore 2017 highlights Change Pilbara shipments (100%) Mt % Pilbara production (100%) Mt Underlying EBITDA US$m Underlying FOB EBITDA margin* Underlying earnings US$m Net cash generated from ops US$m Capex US$m Free cash flow US$m 11,520 8, % 68% 63% 6,692 4, % 8,466 5, % (1,201) (868) +38% 7,265 5, % $341m of pre-tax cash cost improvements in 2017: cumulative savings of $1.7 billion since 2012 Average realised 2017 FOB price of $64.8 per dry metric tonne (2016: $53.6/dmt). Compares with average FOB Platts price of $64.1/dmt for 62% Fe Pilbara fines 2018 Pilbara shipments guidance of Mt (100% basis), subject to weather conditions Iron Ore Company of Canada and Simandou are reported within Energy & Minerals, reflecting management responsibility. * The Pilbara underlying FOB EBITDA margin is defined as Pilbara underlying EBITDA divided by Pilbara revenues, excluding freight revenue. Iron Ore: increased price, cost reductions and volumes 44 Underlying earnings 2016 vs 2017 $ million (post tax) 8,000 6,000 4,611 1,784 6, (106) (50) (49) ,692 4,000 2, underlying earnings Price Exchange rates Energy Inflation Flexed 2016 earnings Volumes Cash cost reductions Tax & other 2017 underlying earnings Pilbara shipments of million tonnes was 1% higher than in 2016, reflecting ongoing productivity improvements being made to the rail network, along with increased flexibility across the infrastructure system. Pilbara FOB EBITDA margins of 68% achieved in 2017 (63% in 2016). Pilbara cash unit costs to $13.4 per tonne in 2017, compared with $13.7 per tonne in Total cost reductions delivered in 2017 of $341 million pre-tax. Total pre-tax Iron Ore cost savings delivered since 2012 now total $1.7 billion. Pilbara iron ore revenues includes $1,464 million of freight in 2017 compared to $886 million in 2016, following increases in freight rates period-on-period. Approximately 67 per cent of sales in 2017 were priced with reference to the current month average, 17 per cent with reference to the prior quarter s average index lagged by one month, five per cent with reference to the current quarter average and 11 per cent were sold on fixed terms on the spot market. Approximately 67 per cent of 2017 sales were made on a cost and freight (CFR) basis, with the remainder sold free on board (FOB).

27 Strong business foundations and clear strategy 45 Foundations Exclusive fully integrated system Highly valued product suite and significant resources Value over Volume Strategy Capex Revenue Price impact of incremental tonnes Protecting quality Delivering right tonnes to customers who value them Operating cost Quality people and partners driving innovation Sustaining Replacement Growth Maximises free cash flow through the cycle Unit cost Impact on cost base Innovation and Technology Our Pilbara Blend remains the product of choice 46 Blending reduces product variability Product quality variance from mean Fe Alumina Silica Phosphorus Consistency of our Pilbara Blend (PB) products gives our customers predictability in managing their blast furnace burden Ship Mine/Rail PB lump is a good source of iron units as mills seek productivity in the face of sinter capacity restrictions Shipments by product (Rio Tinto share) Percentage Customers seek our stable, blended PB fines as the base load for their sintering operations % 26% 21% 4% 2% Yandicoogina fines has low impurities and is highly valued PB Fines PB Lump Yandicoogina Fines Robe Valley Fines Robe Valley Lump

28 We have a fully integrated asset network 47 10,000 Workforce 16 Mines 1,700km Rail 4 Port terminals 3 Power stations ~400 Haul trucks 51 Production drills 190 Locomotives Capital for high-quality asset options to maintain Pilbara Blend and the broader portfolio 48 Pilbara development options $ per tonne installed capital intensity Bubble size indicates capacity Koodaideri Multiple low-cost, value-accretive options leveraging existing infrastructure Koodaideri replacement (~$2.2bn) underpins Pilbara Blend and low-cost operations includes innovation in design Replacement post-koodaideri expected to continue the trend of highly value-accretive, lower capital intensity production Approved replacement Unapproved replacement 2017

29 Iron Ore: our low-cost advantage has been sustained over many years 49 Pilbara cash unit cost $ per tonne 2017 cash unit cost of $13.4/t (2% lower than $13.7/t in 2016) Focus remains on maintaining consistently attractive FOB EBITDA margins (68% in 2017) ~10% increase in haul distance for 2018; strip ratio flat Cyclic maintenance costs being partly offset by new tactics >3,500 productivity improvement initiatives Average realised FOB price of $59.6 per wet metric tonne ($64.8/dry metric tonne) 2018 guidance for shipments from the Pilbara remains unchanged at Mt, subject to market conditions and any weather constraints H H H H H H H H Productivity options to continue to deliver cash benefits 50 Best Practice Partnering with Suppliers Data & Technology Automation Effective equipment utilisation and maintenance optimisation Payload optimisation Mine planning optimisation Autonomous trucks (including retro-fit) Mine Rail Yard improvements and scheduling Dumping improvements Track maintenance Consist reliability Autonomous drills Smart explosives charging Track maintenance strategy Next generation train control Brake car elimination AutoHaul TM Roll by rail detection Automated inspections Iron Ore to deliver additional free cash flow of ~$0.5 billion per year from 2021 Asset health monitoring Operations centre optimisation Inter-machine control loops Productivity monitoring apps Ore sensitive dumper settings Port / other Debottlenecking opportunities

30 Priority is to optimise infrastructure capacity and flexibility Current system capacity Future system capacity 51 ~360* ~360 ~330 Mt/a Mt/a Mt/a Mine capacity of ~360Mt/a, with full Silvergrass rampup and productivity creep Building excess rail capacity to provide for flexibility and sprint options Optimise and test overall port capacity 2018 guidance is in a range of Mt *Once Silvergrass fully ramped up Significant improvements achieved across our mines 52 Truck effective utilisation and payload improvements have delivered cost savings and capital deferrals 20 extra tonnes per load for 240t trucks provides 35 million annual tonnes of additional mining capacity Better maintenance strategies driving longer component lives and cost savings Haul Truck Effective Utilisation Time %, indexed, Sep YTD 7% 1.07 Truck Payload Time %, indexed, Sep YTD 8% 1.08 Yield, feed rate and cost improvements Less rehandle while maintaining production rates Yandi plant performance +3% +20% -4% -21% YTD Yield Feed rate Cost Rehandle

31 Along with AutoHaul TM, there are many levers to optimise rail circuit capacity and improve flexibility 53 AutoHaul TM Current project Future opportunities Closer train spacing Rail track maintenance Yard scheduling and productivity Eliminating brake cars Mine Yard Dumper Mainline Further Technology Scheduling optimisation Auto inspection of trains / ore cars In-field data LTE network Train maintenance optimisation Train productivity at dumpers AutoHaul TM making strong progress 54 World s first fully autonomous heavy haul mainline run completed in Sept 2017 ~60% production kilometres currently completed in autonomous mode 1 >1million kilometres completed in autonomous mode 1 this year ~6% Speed improvement in autonomous mode 1 AutoHaul TM usage continues to be expanded and preparing for final Regulator approval. Anticipate full implementation of driverless trains by end of Autonomous mode(s) currently in operation with drivers on-board

32 Aluminium Aluminium 2017 highlights 56 Bauxite production (Rio share) - kt Alumina production (Rio share) - kt Aluminium prod n (Rio share) - kt Underlying EBITDA US$m Underlying EBITDA margin (integrated operations) Underlying earnings US$m Net cash generated from ops US$m Capex US$m Free cash flow US$m Change 50,796 47,703 +6% 8,131 8,192-1% 3,551 3,600-1% 3,423 2, % 35% 28% 1, % 2,648 2, % (1,269) (795) +60% 1,380 1,471-6% Binding offer received for sale of Dunkerque and ISAL smelters. Both sales expected to conclude in Q Capex increased as construction at Amrun bauxite project gathers pace Third party bauxite shipments increased by ten per cent to 32.3 Mt in share of production guidance: Mt of bauxite, Mt of alumina, Mt of aluminium (guidance to be adjusted following completion of sales of Dunkerque and ISAL smelters) To allow production numbers to be compared on a like-for-like basis, production from asset divestments completed in 2016 have been excluded from the Rio Tinto share of production data but assets sold in 2017 remain in the comparative. The Gove alumina refinery is closed and reported separately from Aluminium within Other Operations.

33 Aluminium: higher prices driving increased earnings 57 Underlying earnings 2016 vs 2017 $ million (post tax) 2,500 2,000 1,500 1, (106) (48) 1,684 (98) (17) 55 (139) 1, underlying earnings Price Exchange rates Energy Inflation Flexed 2016 earnings Volumes & Mix Cash cost reductions Tax & other 2017 underlying earnings The 2017 cash LME aluminium price averaged $1,969 per tonne, an increase of 23 per cent on The average realised price per tonne averaged $2,231 in 2017 (2016: $1,849) due to higher market and product premia. This includes premia for value-added products (VAP), which represented 57% of primary metal sold in 2017 (2016: 54%) and generated attractive product premia averaging $221 per tonne of VAP sold (2016: $223 per tonne) on top of the physical market premia. Cost improvements delivered in 2017 have largely offset the negative impact of raw material costs, which were $104m higher than 2016 after tax. The Aluminium group has now delivered $1.6 billion of cumulative savings compared with the 2012 base. EBITDA margins were 35% in 2017, compared to 28% in Bauxite revenues includes $266 million of freight in 2017 ($202 million in 2016). Strategy for outperformance through the cycle 58 Competitive advantage Bauxite Industry-leading bauxite position Size, quality, proximity to markets Aluminium Low first quartile cost Low-carbon, low-cost power Strategic focus Market-paced high-margin growth Strong cash flow generation Key enablers Competitive alumina supply to our smelters Commercial excellence from mine to market Strategic goal Leading performance through the cycle

34 We will maintain our low-cost position 59 Commodity Index (base 2016) Aluminium LME +22% Caustic +44% Coke +73% Pitch +98% Raw materials & energy lifting cost curve by 10% vs 2016 Costs are expected to stay elevated in Aluminium cost curve ($/t) 2,500 2, ,500 RT position F 1,000 0% 25% 50% 75% 100% Rio Tinto well placed Balanced alumina Self-generated hydro power 90% own anode production 55% own calcination capacity for Canadian assets Advantaged bauxite position: proximity to China, supply reliability, high alumina, expandable resource Source: CRU and internal analysis. Aluminium costs include hot metal and cold metal costs net of market and product premiums. Commodity price increases calculated between 1 January 2016 and November 2017 Unrivalled assets in the Saguenay, Quebec Sept-Iles - Alouette Al capacity* 606kt (100%) RT share 40% Saint-Laurent River Montreal Quebec Bécancour - ABI Al capacity* 446kt (100%) RT share 25% 60 Lake Saint-Jean A 4 Alma 5 6 B, C, D Saguenay E F SAGUENAY LAC-SAINT-JEAN SMELTERS (all 100% owned) Aluminium capacity*(kt) A B C D E F Alma Arvida AP60 Small Ingots Saguenay Dubuc Laterrière Grande-Baie JONQUIERE COMPLEX (100% owned) Arvida Smelter Vaudreuil Refinery Spent Potlining Treatment Plant Railroad Facilities Port Facilities Capacity*(kt) 171 aluminium 1,570 alumina POWER DIVISION Hydroelectric Power Station 1 Chute-des-Passes 2 Chute-du-Diable 3 Chute-a-la-Savane 4 Isle-Maligne 5 Chute-a-Caron 6 Shipshaw Installed capacity (MW) 3,147 Rio Tinto Canada Headquarters Offices/Others Technology Non-managed sites * Capacity per pages 246 and 248 of 2017 Annual Report

35 Productivity options to continue to deliver cash benefits 61 Best Practice Partnering with Suppliers Data & Technology Automation Creep Rail debottlenecking & payload optimisation Mine planning optimisation Shipping optimisation Equipment utilisation Predictive analytics & optimisation in real-time Bauxite Bauxite grade optimisation Bauxite integrated operations centre Alumina Creep & asset utilisation Bauxite mix optimisation Sweetening Fixed cost compression Energy optimisation Flocculation & additives technology Predictive analytics & optimisation in real time Advanced process control Creep Aluminium to deliver additional free cash flow of ~$0.5 billion per year from 2021 Automated anode change Fixed cost compression Advanced process control Casthouse utilisation Autonomous metal / anode transport Aluminium Aluminium Operations Centre - predictive analytics & optimisation in real-time Asset performance drives next phase of productivity 62 Leveraging Rio Tinto Weipa: rail expertise to unlock system capacity (higher speeds and wagon loads) Gove: asset management expertise to unlock throughput (plant reliability) Integrated Operations Centre: systems and expertise to give overall bauxite system view to unlock full potential Weipa performance +13% +2% YTD Applying advanced analytics through systems enhancements Improved data coverage, software and connectivity enabling real-time decision making Dynamic asset health assessment focused on debottlenecking entire supply chain Plant rate Long Haul truck utilisation Gove performance +8% +2% YTD Plant Rate Haul truck utilisation

36 Smelters creeping at 1% per annum, double industry average 63 Amperage creeping history +14% +10% +7% Long history of cutting-edge smelter productivity Industry-leading technology, expertise and innovation Creep innovation the engine of technology productivity Low capital intensity, high-return investments Productivity growth on installed asset base Deep pipeline of next wave improvement levers Canadian brownfield growth options Alma, AP60 value over volume Alma Grand Baie Laterriere 2018 production guidance 3.5 to 3.7Mt aluminium 64 Enhancing margins through VAP Rio Tinto VAP product premiums 1 $ per tonne Value added product (VAP) enhances margins VAP 57% of portfolio, targeting >70% Additional revenue $221 per tonne sold in 2017 Cumulative free cash flow improvement of $0.3bn by 2021 Rio Tinto VAP product mix 1 Slab 35% Slab Billet Foundry High Purity Rod & Others Billet 32% Foundry 19% Further scope to grow margins through commercial excellence Customer partnerships: North American automotive light-weighting Market differentiation RenewAl TM low CO 2 aluminium Proximity and reliability Technology and product development High Purity 9% Rod 5% 1 H1 2017

37 Copper & Diamonds Copper & Diamonds 2017 highlights Change Mined copper prod n (Rio share) - kt % Refined copper prod n (Rio share) - kt % Diamonds production (Rio share) k 21,627 17, % carats Underlying EBITDA 1,904 1, % US$m Underlying EBITDA margin 39% 31% Free cash flow positive in 2017 despite 49% increase in capex: all managed operations were FCF positive with the exception of Oyu Tolgoi due to the increased investment in the Underground Project 2018 share of production guidance: Underlying earnings / (loss) US$m Net cash generated from ops* US$m Capex excluding equity accounted units - US$m Free cash flow US$m 263 (18) n/a 1, % (1,374) (924) +49% % kt for mined copper kt for refined copper M carats of diamonds * Net cash generated from operating activities excludes the operating cash flows of equity accounted units (Escondida) but includes dividends from the equity accounted units.

38 Copper & Diamonds: higher prices and cost savings partly offset by one-offs, lower volumes and inflation 67 Underlying earnings 2016 vs 2017 $ million (post tax) (18) 2016 underlying earnings (16) (13) (31) (27) Price Exchange rates Energy Inflation Flexed 2016 underlying earnings Volumes Cash cost reductions (11) Exploration & evaluation (176) Escondida strike (37) 263 Tax & other 2017 underlying earnings Copper & Diamonds underlying earnings of $263 million benefitted from higher prices and cash cost reductions, offset by lower sales volumes of copper, molybdenum and gold and the impact of the strike at Escondida. Pre-tax cash cost savings delivered in 2017 were $160 million bringing total pre-tax cash cost improvements delivered by Copper & Diamonds since 2012 to $1.4 billion. Copper & Diamonds generated net cash from operating activities of $1.7 billion and $0.3 billion of free cash flow, despite investing around $1.3 billion in development capital and exploration and evaluation. All managed operations made a positive free cash flow contribution. To maximise use of available smelter capacity, Kennecott tolled thousand tonnes of third party concentrate in At 31 December 2017, the Group had an estimated 250 million pounds of copper sales that were provisionally priced at 304 cents per pound. The final price of these sales will be determined during the first half of This compares with 235 million pounds of open shipments at 31 December 2016, provisionally priced at 250 cents per pound. Sector-leading attributes 68 Attractive industry fundamentals Large, high-quality resources Robust long-term demand Constrained supply Deficit expected towards end of decade Long-life, low-cost, expandable assets Interest in three of the world s Tier 1 copper mines Leading mine to market productivity Multiple, strong growth options Productivity & processing optimisation at Kennecott OT process control innovations and blasting optimisation Broad customer base for underground volumes at Oyu Tolgoi Medium-term growth potential from Oyu Tolgoi and Grasberg Longer-dated optionality at Resolution Exploration pipeline

39 Strategy to deliver further value 69 Maximise value from existing operations Deliver medium-term growth and progress long-term options Develop our people & partnerships Unlock additional value through productivity initiatives Productivity options to continue to deliver cash benefits 70 Best Practice Effective equipment utilisation and maintenance optimisation (MTBF) Partnering with Suppliers Light- weighting of truck beds Data & Technology Payload optimisation Automation Shorter haul times Increase mining rates in South wall pushback Mining Processing Improved feed characterisation Integrated operations Increase concentrator throughput Maintenance tactics and centralisation of maintenance Increase metal recovery from East Wall Tolling of concentrate for value Copper & Diamonds to deliver additional free cash flow of ~$0.15 billion per year from 2021 Ore grade distribution Planning and schedule Resources Mine planning optimisation

40 Kennecott a stronger contributor to cash 71 Asset optimisation Maximise smelter and refinery productivity by blending third-party concentrate South wall push back underpins over a decade of high-quality cash flow Returns to higher grades from 2021 Operational excellence to maximise value Overall improvement of ~5% in truck productivity equates to ~12 mt additional material moved in 2017 OT underground is a Tier 1 asset 2025 Copper Equivalent Cost Curve Copper equivalent unit cost including sustaining capex, deferred strip and royalties (c/lb) Q1 Q2 Q3 Q Oyu Tolgoi with underground ,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 kt Copper production, kt Cu contained Source: Wood Mackenzie Q Oyu Tolgoi 2016 Technical Report. Rio Tinto. Note: Oyu Tolgoi costs and production average. Oyu Tolgoi copper equivalent calculation uses Wood Mackenzie metal prices ($3.30/lb for copper and $1,300/ounce for gold, $18.75/ounce for silver) 1 Refer to the statements supporting these production targets set out on slide 2 of this presentation.

41 Approved Oyu Tolgoi underground capital expenditure 73 Approved underground capital spend profile, US$bn Development capital $5.3bn $5.3bn underground development capital by cost type Sustaining capital to full production $2.8bn 10% 6% 7% 48% 18% 57% 43% 8% 3% Underground Components Concentrator Supporting infrastructure Construction indirect EPCM Owners Cost GoM Fees and Charges Oyu Tolgoi production profile to end of lateral development phase in Ore processed - ktpd Copper and gold production (annual average) 1 Significant uplift in copper production 50, , , , , Open Pit Ore ktonnes Underground Ore ktonnes Copper (ktpa) Gold (kozpa) 1 This production target includes a combination of open pit and underground sources. The production target is based on reserves. The reserves are 100% probable category for underground production and 100% proven and probable category for open pit production. These figures have been scheduled from current mine designs and have been prepared by Competent Persons in accordance with the requirements of the Australasian code for reporting of exploration results, mineral resources and ore reserves, 2012 edition.

42 Oyu Tolgoi - the leading Tier 1 copper project 75 Highest quality, major copper development globally Average underground copper grade of 1.66% Cu and 0.35g/t Au 1 > 20% IRR $5.3 billion capex, first quartile opex First drawbell production in 2020 Full production ~560kt/a Productivity improvement in both project development & operations In-flight review of capital profile of underground complete on budget and schedule 1 Refer to the statements supporting these reserve grades and production 2018, targets Rio set Tinto, out on All slide Rights 2 of this Reserved presentation Non-managed interest in two of the world s best copper mines 76 Escondida Grasberg Strong cash flows underpin dividends No additional significant capex required for near future Los Colorados extension delivers incremental mill capacity of 100ktpd 1 Desalination plant fully commissioned and operating well Contract of Work renegotiation is a priority for the business Rio Tinto s full participation beyond 2021 is likely to be delayed 2 Transition to underground in progress Supporting our partners to improve safety and protect licence to operate 1 Per BHP 2017 Annual Report 2 Metal strip may be adjusted for various events over time

43 Grasberg metal strip 77 Grasberg metal strip thresholds 1 Cu (m lbs) Au (000 oz) Ag (000 oz) ,001 1,602 3, ,008 1,861 3,825 Rio Tinto is entitled to 40% of all production in excess of the metal strip Entitled to 40% of all production from ~2022 First full year of 40% share expected in ,024 1,589 3, ,027 1,593 3, ,071 1,510 3, ,114 1 Reference numbers may be adjusted for various events over time Future optionality for the Copper business 78 Resolution Exploration Indicated and inferred mineral resource of 1.54% Cu 1 Continued focus on copper exploration, primarily the Americas Continuing to advance permitting process. Predictable timetable and pathway for positive Record of Decision Strengthening our licence to operate Complete permitting by 2020, pre-feasibility study by 2021 ~60% Rio Tinto exploration spend is focussed on copper 16 copper exploration projects ongoing La Granja regional exploration 1 Refer to the statements supporting these resource grades set out on slide 2 of this presentation

44 Delivering medium-term growth and progressing long-term options 79 Supply surplus Supply deficit Kennecott South push back underpins margin & volume increase Oyu Tolgoi HNL1 development to first production Ramp-up to ave. 560 ktpa copper production 1 Escondida LCE & EWS 2 ~1.2 Mtpa average production capacity 3 Grasberg Transition underground Long-term optionality Resolution Exploration Project permitting & continued studies Sustained & committed programme with an emphasis on the Americas Potential project execution 1 Refer to the statements supporting this production target set out on slide 2 of this presentation. 2 Los Colorados Concentrator Extension and Escondida Water Supply. 3 BHP Copper Briefing and Chilean site tour - released by BHP on 1 December Developing our people and our partnerships 80 Working with our partners to improve safety Strengthening indigenous relationships Consulting with communities Building long-term sustainable relationships at Oyu Tolgoi 94% local employment Best in class for water efficiency 86% of water recycled 69% of total procurement spend is national suppliers and 75% of total spend is in-country

45 Energy & Minerals Energy & Minerals 2017 highlights 82 All production on a Rio Tinto share basis Change Hard coking coal prod n - kt 7,704 8,141-5% Semi-soft coking coal production - kt 2,020 4,102-51% Thermal coal prod n - kt 13,933 16,727-17% Iron ore pellets / conc kt 11,166 10,661 +5% Titanium dioxide prod n - kt 1,315 1, % Borates production - kt % Salt production kt 5,090 5,180-2% Uranium production k lbs 6,650 6,342 +5% U/l EBITDA - US$m 2,803 1, % U/l EBITDA margin 36% 27% U/l earnings - US$m 1, % Net cash generated from ops US$m 1,939 1, % Capex - US$m (467) (141) +231% Free cash flow US$m 1,467 1, % Sale of Coal & Allied to Yancoal for $2.69bn completed on 1 September 2017: 2016 comparative includes an additional four months of C&A earnings, equivalent to $109m share of production guidance: Mt of hard coking coal Mt of thermal coal Mt of iron ore pellets/concentrate Mt for TiO 2 feedstocks 0.5 Mt for borates Mlbs of uranium To allow production numbers to be compared on a like-for-like basis, production from asset divestments completed in 2016 have been excluded from the Rio Tinto share of production data but assets sold in 2017 remain in the comparative. Iron Ore Company of Canada and Simandou are reported within Energy & Minerals, reflecting management responsibility.

46 Energy & Minerals: higher prices and further cost improvements driving earnings 83 Underlying earnings 2016 vs 2017 $ million (post tax) 1,500 1,250 1, (63) ,239 1,242 (26) (62) (16) (98) underlying earnings Price Exchange rates Energy Inflation Flexed 2016 earnings Volumes Cash cost reductions Exploration & evaluation Tax & other 2017 underlying earnings Underlying earnings of $1,242 million were significantly higher than 2016, primarily driven by higher prices and further cash cost improvements. Pre-tax cost reductions delivered in 2017 were $116 million bringing total pre-tax cost savings delivered by Energy & Minerals since 2012 to $1.5 billion. Strong operating cash flows of $1.9 billion resulted in a free cash flow contribution to the Group of $1.5 billion. Rio Tinto completed the sale of Coal & Allied on 1 September 2017, which included Coal & Allied's interests in the Hunter Valley Operations, Mount Thorley and Warkworth mines. Maximising value from the Energy & Minerals portfolio 84 Safety is our first priority A lean, scalable operating model, running cash-focused businesses Value over volume operating philosophy supported by a global customer and market-oriented approach Ongoing cost and productivity improvements continuing to deliver cash flow Energy & Minerals is the incubator for new commodities

47 A lean, scalable operating model running cash-focused businesses 85 Borates Coal IOC TiO 2 Strategic focus Integrated mine-to-market business model Maximising value from existing assets Cost and productivity improvements Value over volume operating philosophy Key customer segments Multiple end products including construction, agriculture & consumer products Steel mills Premium quality pellets and concentrates to steel producers Pigment producers, ceramics and titanium industry Competitive advantages Commercial excellence driven by market insight Creating new demand through technical expertise Premium hard coking coal Large ore reserve Installed capital base Premium quality pellets Wide range of TiO 2 feedstock options Significant co-product contributions 2017 margins 39% EBITDA margins 43% EBITDA margins 41% EBITDA margins 31% EBITDA margins The Energy & Minerals Product Group also includes Dampier Salt Limited and Rio Tinto Uranium. Borates Refined borates demand and supply 000 tonnes B 2 O ~3% CAGR ~4% CAGR Borates production '000 tonnes B 2 O Supply Note: Supply refers to only proven capacity in 2016 Demand RT share of 2016 sales 38% 26% F 5-mol Boric Acid Tier 1 orebody at Boron, California. Global marketer with integrated mine-to-market capabilities. Regional and end-use segmentation and contracting positions supporting commercial performance. Demand creation through developing new applications through deep technical insight e.g. borates in wood preservation. On-going cost and productivity improvements: Increasing haul truck utilisation; Improving high-payload capacities; Increasing fixed plant productivity. Progressing Jadar lithium-borate project 86

48 Coal 87 Achieved marketing premia vs. benchmarks The market benchmark is a basket of indices including globalcoal, Platts and McCloskey relevant to quality with energy and quality adjustors. Coal production Million tonnes, Rio Tinto share % 5% 10% 15% 20% Coking coal Thermal coal F HCC SSCC TC 13.9 Commercial portfolio structured to participate in current spot prices. Focus on beat the market premiums. Integrated resource to ship approach. Continued focus on cost discipline, contractor management and working capital excellence. Targeted approach to productivity improvement: Increasing longwall effective utilisation; Improving haul truck utilisation; Best Shift Every Shift operating mentality decline in thermal and semi-soft coal production reflects completion of sale of Coal & Allied on 1 September Iron Ore Company of Canada Iron ore pellets/ concentrate production Million tonnes, Rio Tinto share * * Full year guidance (11.5 to 12.5mt) Operations Centre Pilot Cost and productivity improvements facilitating business transformation: Increasing haul truck utilisation by improving shift changes; Increasing average payload for haul trucks. Integrated Operations Centre successfully piloted during Full mining and processing operations oversight now in place: 24/7 Monitor & Advise production and product quality oversight; Additional cost and productivity potential with move to Monitor & Command. Development of new Wabush 3 open pit expected to be in production in H