Building Partnerships in Africa African Mining Indaba, 4-7 February 2013, Cape Town Alan Davies, Chief executive Diamonds and Minerals, Rio Tinto
4-7 February 2013 African Mining Indaba 2 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited ( Rio Tinto ) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-looking statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Rio Tinto s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Rio Tinto s present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") or Form 6- Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share.
4-7 February 2013 African Mining Indaba 3 Rio Tinto is investing in Africa Simandou (Guinea) Rio Tinto Coal Mozambique CBG Sangaredi Mine & Kabata project (Guinea) Murowa Diamonds (Zimbabwe) Rio Tinto Alcan Alucam (Cameroon) Rössing Uranium Mine (Namibia) Key Mines and mining projects Smelters, refineries, power facilities and processing plants remote from mine Aluminium Diamonds Energy Iron ore Minerals Mutamba Project (Mozambique) QIT Madagascar Minerals (QMM) Richards Bay Minerals (South Africa)
...and we are growing in Africa through exploration Discovery Date Project Mineral Country 1968 Rössing Uranium Namibia 1985 QMM Ilmenite Madagascar 1999 Murowa Diamonds Zimbabwe 2005 Simandou Iron Ore Guinea 2007 Chapudi Coal South Africa 2008 Mutamba Ilmenite Mozambique Active Programmes Under Review Exploration establishes the foundation of future partnerships
4-7 February 2013 African Mining Indaba 5 Africa has great potential for the long term Africa will surpass China s current population in 2023 (Africa population, billions) CAGR 2010-25 (Percent) CAGR 2025-40 (Percent) 0.8 0.9 1.0 1.1 1.3 1.4 1.6 1.7 1.9 2.0 2.2 2.3 3.1 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 By 2040, Africa s GDP will be the size of the US today (African GDP per capita, 2005 PPP US$) CAGR 2010-25 (Percent) CAGR 2025-40 (Percent) 2.3 2.6 3.0 3.3 3.8 4.3 4.9 5.6 6.3 7.1 7.8 2.4 4.1 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: UN predictions, Rio Tinto analysis. CAGR = compound annual growth rate, PPP = purchasing power parity
4-7 February 2013 African Mining Indaba 6 Keeping our people safe is our highest priority Safety will continue to be a key challenge as we invest further into Africa Multiple nationalities, cultures, languages and skill levels Rapid influx of contractors as capital projects ramp up Requires hands on leadership Drilling along the rail corridor at Simandou in Guinea
4-7 February 2013 African Mining Indaba 7 Mutually beneficial partnerships are central to our development model Development of an ownership structure which includes private and public sector players All parties have a stake in project success Leverage equity & fiscal regimes with state and local communities Strategic partnerships to manage project risk Signing documents towards finalising RBM's Broad Based Black Economic Empowerment shareholding
Infrastructure will be a catalyst for growth: A Guinean example Simandou s infrastructure investments...can underpin a corridor of growth and development in southern Guinea Telecoms Multi-user port Freight and passenger rail Electricity Housing Health Education Local services
4-7 February 2013 African Mining Indaba 9 Our operations have the ability to promote regional investment Supporting the development of robust institutions and governance will ensure the benefits of our operations are felt by the country We can act as a coalition convener, building upon our reputation and expertise to attract new investment into the country Advocacy that sees our partners mutually supporting each other to promote activities and strengthen reputations Port d Ehoala, Madagascar
4-7 February 2013 African Mining Indaba 10 A sustainable local footprint protects future skills, procurement & service needs $160 million was spent on local procurement in Guinea in 2012 Almost 6000 jobs created by QMM activities 98% of employees at Rössing are Namibians $3 million has been spent on education facilities at RBM
4-7 February 2013 African Mining Indaba 11 A distinctive communities approach drives business advantage Distinctive approach to the development of communities requires alignment between business and social objectives. If done right can reduce tenure risk, and provide greater certainty over future cashflows Should be an opportunity for development and improved wellbeing Growing of local vegetables to be used at the Murowa mine, Zimbabwe
4-7 February 2013 African Mining Indaba 12 Protecting the environment now will give us a licence to operate into the future Mine rehabilitation project at Richards Bay
4-7 February 2013 African Mining Indaba 13 In summary Rio Tinto has a strategic, long term commitment to Africa Our development model is focussed on delivery of shared value through mutual beneficial partnerships maximising the socioeconomic footprint creating a long term partnership for growth
Building Partnerships in Africa African Mining Indaba, 4-7 February 2013, Cape Town Alan Davies, Chief executive Diamonds and Minerals, Rio Tinto