Building on success - growing the Pilbara Greg Lilleyman – President, Pilbara Operations

Guideline

•  Rio Tinto, in context

•  The Pilbara integrated operations

•  Rio Tinto’s major customers: some historical perspective

•  Strong demand, uncertain industry supply

•  Rio Tinto’s expansion: seeing is believing

•  Rio Tinto’s Mine of the Future TM

•  Summary

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Key

Mines and mining projects

Smelters, refineries, power facilities and processing plants remote from mine

Africa

Europe

South America

North America

Australasia

Asia

Aluminium Copper Diamonds Energy Iron ore Minerals

Rio Tinto – a global business

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Rio Tinto Iron Ore – Pilbara Operations

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5

Old friends – dealing with regional partners in a broad based market

Business history: strong growth of Rio Tinto Iron Ore China business for 40 years

“No other company has exported anywhere near this amount of iron ore to China and it took 38 years for us to do so.”

Sam Walsh - On the shipment of the 1 billionth tonne

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The fundamental drivers of Chinese steel demand will remain strong

0.2

0.1 0

2040 2030 2020 2010

1.1 1.0

0.9 0.8 0.7 0.6

0.5 0.4 0.3

433 613 677 671

Bt/a

Chinese steel demand will grow strongly

SOURCE: RTIO Industry Analysis

3% 1%

XX% CAGR

Economic growth

Political focus will remain on GDP and income growth as the newly elected government looks to consolidate power and to maintain social stability by delivering economic development and ongoing increases in living standards Urbanisation Urbanisation growth will continue to be strong through to 2030

Infrastructure/construction

There is still significant infrastructure investment planned and required as well as increasing rebuild investment

Transition to consumption demand

The government will continue to transition the economy to consumption based growth, with considerable flow-on demand effects for steel (as construction and infrastructure growth declines)

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2

3

4

7

Industrial - Export

Industrial - Domestic

Construction

xx Kg/capita steel intensity

Despite near-term volatility, the fundamental drivers of Chinese steel demand growth remain strong

There continues to be significant constraint to the development of new iron ore supply

0 200 400 600 800

1000

Announced for 2008-10 Completed by Q4 2010

Certain Probable Possible Rio Tinto Other

Announced and completed iron ore production capacity (global) (million tonnes)

• Announcements do not necessarily translate to supply capacity − Competition for labour with oil/ gas − Reduced sources of project financing − Protracted approvals processes − Shortage of specialist mining skills − Difficulty working in remote locations

• High cost Chinese domestic supply required to meet demand in the short to medium term

Source: UNCTAD, Rio Tinto analysis

0

200

400

600

800

1000

Announced for 2012-14 Completed by Q3 2012

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We focus on delivering value through productivity and system optimisation …

Pilbara production (Mt/qtr) • New nameplate capacity at 237Mt/

a − Operations Centre assists deep

system visibility, significantly advancing performance

− Q3 2012 a record production quarter – 62.9Mt, a 5.2% increase on Q3 2011

− Shipping remains strong − Closing in on the rail bottleneck

• Continue to progress improvement initiatives to provide further capacity creep

0

10

20

30

40

50

60

70

Q1 Q2 Q3 Q4

2010 2011 2012 Installed Capacity

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… challenging expansion optionality …

Note: Timing refers to first production

Yandicoogina

2012 2013 2014 2015

BS4 (II)

Sustaining

Growth

Warramboo

WA -Dep E Legend • Not yet approved • Underway • Deleted

HD4

Marandoo

WTS (II)

WA- Dep B

WTS (I) Nammuldi

BS4 (III)

Silvergrass

Koodaideri (I) $1bn

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… and maintaining major project time-lines

Rio Tinto Pilbara iron ore shipping capacity (100% basis) (Mt/a)

200

220

240

260

280

300

320

340

360

380

2010 2011 2012 2013 2014 2015 2016 2017

Aver

age

Ann

ualis

ed

Mtp

a 290 First Ore

3Q

4Q

1H

340 First Ore

360 First Ore

We have demonstrated superior performance in delivering projects

30

20

10

10

20

30

40

0%

50%

100%

150%

200%

250%

Budget Additional months

Western Australian construction projects performance (Cost (% of budget))

Source: Pit Crew Management Consulting Services

RTIO projects Non RTIO projects

Over budget behind schedule

Under budget ahead of schedule

Mon

ths

over

bu

dget

New Cape Lambert stockpile yards

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Cape Lambert Expansion

Delivering reality …

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Cape Lambert Expansion Cape Lambert Expansion

Ship Loader Car Dumper

Our Mine of the FutureTM is turning competitive advantage into real business value

• Technology and automation will continue to drive business success

•  Improving sophistication of real time data and progressive cultural change are keys to success

• Substantial benefits will accrue − Cost savings – eg recruiting 900

fewer people − Managing increasing business

complexity − Anticipating problem areas

• Phase II of our Operations Centre will unlock further value across our network

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Autonomous Haul Trucks

• 10 trucks at Yandi in a fully autonomous pit

• 26 trucks are planned at Nammuldi, with 5 trucks currently operational and 5 more to be delivered over the coming weeks

• 19 trucks are planned for Hope Downs 4, with 3 currently being assembled

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•  AutoHaul™ is an investment of US$518 million to introduce autonomous train operations across our integrated Pilbara rail network

•  It is the first long-distance heavy-haul system of its kind in the world and will place us at the forefront of technological advances

•  Is a key component of our expansion to 360Mtpa in the Pilbara

•  First phase, Driver Assist, is nearing completion and significant engineering works are complete

•  Full implementation is planned for 2015

• Our Pilbara Operations are part of a truly global mining business

• Running it efficiently, while expanding within time and cost constraints, is how Rio Tinto creates value

• We have a long, strong history with China and Japan

• These mutually beneficial relationship will continue into the future

• As we deliver expansions to meet future needs of our customers

In summary …

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