Transforming our business

Transcription

1 Transfrming ur business Michael Gllschewski Managing directr Pilbara Mines Mining and Energy Services Cuncil f Australia 16 July 2015

2 Cautinary statement General This presentatin has been prepared by Ri Tint plc and Ri Tint Limited ( Ri Tint ). By accessing/attending this presentatin yu acknwledge that yu have read and understd the fllwing statement. In this presentatin all figures are US dllars unless stated therwise. Frward-lking statements This dcument cntains certain frward-lking statements with respect t the financial cnditin, results f peratins and business f the Ri Tint Grup. These statements are frward-lking statements within the meaning f Sectin 27A f the US Securities Act f 1933, and Sectin 21E f the US Securities Exchange Act f The wrds intend, aim, prject, anticipate, estimate, plan, believes, expects, may, shuld, will, target, set t r similar expressins, cmmnly identify such frward-lking statements. Examples f frward-lking statements include thse regarding estimated re reserves, anticipated prductin r cnstructin dates, csts, utputs and prductive lives f assets r similar factrs. Frward-lking statements invlve knwn and unknwn risks, uncertainties, assumptins and ther factrs set frth in this presentatin. Fr example, future re reserves will be based in part n market prices that may vary significantly frm current levels. These may materially affect the timing and feasibility f particular develpments. Other factrs include the ability t prduce and transprt prducts prfitably, demand fr ur prducts, changes t the assumptins regarding the recverable value f ur tangible and intangible assets, the effect f freign currency exchange rates n market prices and perating csts, and activities by gvernmental authrities, such as changes in taxatin r regulatin, and plitical uncertainty. In light f these risks, uncertainties and assumptins, actual results culd be materially different frm prjected future results expressed r implied by these frwardlking statements which speak nly as t the date f this presentatin. Except as required by applicable regulatins r by law, the Ri Tint Grup des nt undertake any bligatin t publicly update r revise any frward-lking statements, whether as a result f new infrmatin r future events. The Grup cannt guarantee that its frward-lking statements will nt differ materially frm actual results. Disclaimer Neither this presentatin, nr the questin and answer sessin, nr any part theref, may be recrded, transcribed, distributed, published r reprduced in any frm, except as permitted by Ri Tint. By accessing/ attending this presentatin, yu agree with the freging and, upn request, yu will prmptly return any recrds r transcripts at the presentatin withut retaining any cpies. This presentatin cntains a number f nn-ifrs financial measures. Ri Tint management cnsiders these t be key financial perfrmance indicatrs f the business and they are defined and/r recnciled in Ri Tint s annual results press release and/r Annual reprt.

3 Safety is fundamental t ur business Irn Ore injury frequency rate (Injuries per 200,000 hurs wrked) Ntes: 1 Year t date (January t May) All Injuries Lst Time Injuries

4 Our visin and strategy 1. Prductin at the Right Cst 2. Value-driven grwth Prductin at the right cst Value-driven grwth Our visin T remain the best irn re prducer in the wrld Maximising prtfli value Laser-sharp fcus: safety 3. Maximising prtfli value peratinal perfrmance cst cmpetitiveness

5 Abut Ri Tint Irn Ore Pilbara peratins City Twn Rad Mine Prt Rail Perth Pilbara Operatins Australia Onslw Parker Pint East Intercurse Dampier Karratha Pannawnica Cape Lambert (A+B) Wickham Reburne Prt Hedland Mesa A Mesa J 15 mines 360 haul trucks 4 prts 1700 km f rail 190 lcmtives 100 km Nammuldi Brckman 2 Brckman 4 Western Turner Tm Price Paraburd Paraburd Eastern Range Channar Tm Price Marand Hpe Dwns 1 Hpe Dwns 4 Yandi West Angeles Newman

6 Mre abut Ri Tint Irn Ore 1 Drill & Blast 2 Lad & Haul 3 Prcess 4 Rail 5 Ship > 12,000 kilmetres drilled each year > 1 billin tnnes rck mved per year 5 gigawatt hurs electricity per day > 20,000 kilmetres rail travel per day > 300 millin tnnes re shipped annually RUSSIA Equivalent t the diameter f the earth Enugh t fill the MCG every day Able t pwer city f Newcastle Return trip n the Trans-Siberian railway Carg shipped thrugh the Panama Canal

7 Prductivity drives value in current market cnditins Irn Ore price cmpsite (2015$/dmt excl. freight) 200 Histrical China Expansin Transitin New Nrmal Cst curve (Mtpa; $/dmt CFR China 62% Equivalent; 2014 Q4) Ri Tint Pilbara Surce: Wd Mackenzie, Ri Tint

8 Psitining ur business t succeed Mving frm grwth t state f cnstant imprvement: Fcus attentin n peratins Optimise system Imprve prductivity Drive dwn csts Accuntability acrss business Sweating assets delivering value

9 We are lking at every pprtunity... Simplify Systems and prcedures Wrk rsters Streamline Reduce Remve Maintenance Structure Prcess Capital expenditure Operating csts Inventry and warehusing csts Duplicatin f rles and wrk Nn-value add wrk Nn-essential csts (e.g. catering and travel)

10 Transfrmatin thrugh fcus n prductivity Prductin at the right cst Cntinuus Imprvement Technlgy and Innvatin Imprvement Culture System wide High value initiatives Site specific Value chain imprvements Mine f the Future TM Autnmus technlgy Remte peratins centre Real time infrmatin Make a difference Imprving the wrkplace Make it cunt Eliminating waste

11 System-wide imprvement High value initiatives Bilinnium Rck star System-wide prjects with dedicated crss-functinal teams that deliver significant imprvements Rehandle Reductin Cnveyr Frenzy Bilinium Rckstar Reductin f 16 Mt in 2014 Further 25 Mt planned fr 2015 Belt life increased by 30% Belt up-time imprved by 30% Departure cnfrmance up by 40% Cycle time reduced by 18%

12 Site-specific imprvement Value chain imprvements Assisted imprvement prjects targeting value chain bttlenecks at specific sites Stacker capacity (kt per hur) 9.0 Wait fr trucks (t lst per day) 300 Truck prductivity (t per truck hrs) 600 TMM Ex-pit

13 Embedding an imprvement culture Health & safety Identifying and rectifying hazards 1800 nminatins in 2014 Prductivity & cst Make it cunt Small changes make a big difference Imprving efficiency and eliminating waste Csts reduced by tens f millins in 2014

14 Wrking with ur suppliers - tp 50 supplier prgramme Recgnised we must als wrk differently with ur suppliers Tp 50 supplier pprtunities: Nammuldi reclaimer Wrk better, smarter and cperatively N cmprmising safety Seek suppliers ideas and experience Innvative suppliers helping us d things differently Fur stage gate prcess Well advanced t $100 millin target savings Cape Lambert

15 Cnclusin Our strategy has remained cnstant and clear Irn re market fundamentals remain rbust Safety and wellbeing f ur peple is paramunt We are wrking differently

16 Questins