Rio Tinto Alcan – Building momentum · Alfredo Barrios – Chief executive, Rio Tinto Alcan . 26 June 2014 . ... • Global primary aluminium demand reached nearly 50 ... Credit

Rio Tinto Alcan – Building momentum Alfredo Barrios – Chief executive, Rio Tinto Alcan

26 June 2014 Market overview Financial update Bauxite & Alumina Primary Metal

©2014, Rio Tinto, All Rights Reserved

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 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 1934. 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 that are beyond the Rio Tinto Group’s control.

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.

2


3

New leadership with strong executive team

Bruce Cox

Phillip Strachan

Arnaud Soirat

Gervais Jacques

Nigel Steward

Rhodri Harries

Daniel Hertsberg

Pierre Chenard

Alexandre Brassard

President and chief executive officer Pacific Aluminium

President and chief executive officer Bauxite and Alumina

President and chief executive officer Primary Metal

Chief commercial officer

Senior vice president Technology & Supply Chain

Chief financial officer

Senior vice president Human Resources & Health Safety and Environment

Senior vice president Business Development and General Counsel

Mining Executive

Members of executive team presenting at the Saguenay site tour

Alfredo Barrios Chief executive Rio Tinto Alcan


1.20

0.99

0.70

0.60

0.70 0.67 0.58

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2008 2009 2010 2011 2012 2013 2014YTD MAY

4

Safety remains top priority – strong improvement trend but journey continues

All-Injury Frequency Rate Rio Tinto Alcan — 2008 to 2014


1,223

1,762

1,852

2,110

2,178

2,511

3,431

3,520

3,555

3,857

BHP Billiton

Norsk Hydro

Emirates

Shandong XinfaGroup

CPI

Hongqiao Group

Alcoa Inc.

Chalco

Rio Tinto

UC Rusal

Source:2013 data from CRU & Rio Tinto Note: Alumina includes Gove refinery (2.6 mt)

5

Significant industry player across all segments following portfolio changes

Bauxite (kt)

Primary Aluminium (kt)

Alumina (kt)

5,398

6,517

7,560

10,722

13,287

13,867

15,190

15,273

43,204

49,151

Shandong XinfaGroup

Vale

Guinean State

UC Rusal

Cita

Hydro

BHP Billiton

Chalco

Rio Tinto

AWAC

2,420

2,600

4,893

5,076

6,156

6,219

8,403

9,307

14,472

15,773

East Hope Group

CPI

Hydro Aluminium

BHP Billiton

Weiqiao

UC Rusal

Chiping Xinfa

Rio Tinto

Chalco

AWAC


Transforming our business

6

Delivering greater value for shareholders

Cost reductions and transformation

Growth projects delivered

• Shipshaw • ISAL • AP60 • Yarwun 2

Portfolio changes

1 million tonnes of aluminium and

3 million tonnes of alumina curtailed or sold since 2009

2013 Operating cash costs $574m

Delivered

$1.5bn EBITDA

improvement since 2011


Percentage of smelting assets in first half of the industry cost curve

7

Industry’s strongest asset portfolio – most modern and cost-competitive

Q1 Q2

2011 39% 45%

2014 79% 1%

Source:CRU Note: 2014 numbers assume Kitimat completion

Arvida Aluminium Smelter AP60 Technology Centre – Saguenay, Canada


Note: Rio Tinto Alcan internal benchmarking which includes competitor adjustments to externally reported EBITDA margins and internal Rio Tinto Alcan Finance adjustment to trading, procurement and marine Revenues/EBITDA to report performance on a comparable basis. Analysis excludes the Gove refinery. Competitors included in analysis are Alcoa, Hydro, Rusal, BHP and Chalco.

8

Transformation performance contributes to significant EBITDA margin gap with competitors

EBITDA margin

(5)

0

5

10

15

20

25

2010-Q1

2010-Q2

2010-Q3

2010-Q4

2011-Q1

2011-Q2

2011-Q3

2011-Q4

2012-Q1

2012-Q2

2012-Q3

2012-Q4

2013-Q1

2013-Q2

2013-Q3

2013-Q4

RTA Competitor 1 Competitor 2 Competitor 3 Competitor 4

Transformation: Cost reduction/Productivity improvements – Portfolio management – Growth delivery


Bauxite

• Access to the largest and highest quality reserves − Interests in three of the four largest bauxite

mines in the world − Potential expansion opportunities in

Australia, Guinea, and Brazil − Well positioned to benefit from increased

bauxite demand from China and Middle East

Power

• Rio Tinto Alcan generates 51% of its own power requirements (industry average of 38%)

• 44% of our secured energy sources are long-term power contracts and only 5% from short/ medium term contracts

• Around 80% of our total energy usage comes from clean sources

9

Best bauxite reserves in the industry and an unrivalled position in renewable power

Smelter power mix by source Percentage

19%

72%

6%

3%

CoalHydroNuclearNatural Gas


• Strong brownfield and modernisation projects leveraging low cost hydro and bauxite positions

• South of Embley expansion option can provide long-term bauxite growth − Reducing costs at Weipa moving

the mine to Q1 of cost curve − Increases exports to China − Contributing to moving Gladstone

refineries to low Q2 cost position

• Kitimat modernisation on track for start up by first half of 2015 and will move production to the first decile

Kitimat smelter, Canada

10

Future growth builds on key competitive advantages – energy and bauxite

South of Embley, Australia


11

Aluminium contributes to a better life

Lower GHG emissions through lighter vehicles and buildings and through its recyclability

Bringing energy efficiency for cities and buildings in an energy constrained world

Preserving food and medicines through its unique barrier properties


Saturation Level: point at which consumption per capita does not increase with income level. Source: Rio Tinto

12

The world will continue to need more aluminium

Demand (percent of saturation level)

Copper

Aluminium

Crude steel

0

10

20

30

40

50

60

70

80

90

100

2,000 10,000 18,000 26,000 34,000 42,000 50,000 58,000 66,000

2010 2050 2040 2030 2020 Timeframe World GDP / capita 2000 US$ PPP


13

Building momentum

Best energy and bauxite positions in the industry

Repositioning portfolio

Strong long-term fundamentals

Poised to deliver greater value to shareholders

Transformation delivering strong results

Market Overview Gervais Jacques – Chief commercial officer, Rio Tinto Alcan

26 June 2014 Market overview Financial update Bauxite and Alumina Primary Metal


25.9 24.8 20.4 24.2 25.6 26.0 26.0 34.1

12.1 12.6 14.0 16.9 19.5 21.7 23.9

36.1 38.0 37.5 34.4

41.1 45.1 47.6 49.9

70.2

0

20

40

60

80

2007 2008 2009 2010 2011 2012 2013 2020

RoW China

Strong global primary aluminium demand growth

• Demand for aluminium remains strong • Global primary aluminium demand reached nearly 50 million tonnes in 2013 • Global demand growth for 2014 is expected to be around 7% • CAGR of 5% anticipated through 2020

15

Primary demand (million tonnes)

Source: CRU and Rio Tinto Alcan


-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

4

2007 2008 2009 2010 2011 2012 2013 2014 2015

0.1

2.7

3.3

0.9 0.6

0.3 0.3

-0.1 -0.2

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

• Expected 2 million tonnes of curtailment outside of China from 2013 through 2014

• Base case assumes China remains self sufficient for primary aluminium

• Key issues that will impact China’s industry structure include: − tackling overcapacity − environment emphasis − energy policy evolution

Market balance (million tonnes)

Source: CRU, Wood Mac, Morgan Stanley, Northcoast, JP Morgan, Credit Suisse, Barclays, Harbour & EAA

16

Aluminium – Global balance in deficit from 2014

Global Global – Consensus

RoW – Consensus China – Consensus


(422) (986) 2,026 (320) (1,527)

(977) (1,794) (349)

4,110 4,582 3,502

5,369 7,999 7,085

12,663

2,312

2,598 2,335 2,621 2,194

949 2,560

1,949

757

(5,000) (3,000) (1,000) 1,000 3,000 5,000 7,000 9,000

11,000 13,000 15,000

2007 2008 2009 2010 2011 2012 2013 Q1 2014

Total Aluminium (net) Bauxite Imports - Aluminium EquivalentsAlumina Imports - Aluminium Equivalents

6,286 5,931 8,149 7,242

7,421 8,668 12,818

(5,000) (3,000) (1,000) 1,000 3,000 5,000 7,000 9,000

11,000 13,000 15,000

2007 2008 2009 2010 2011 2012 2013 Q1 2014

2,720

China remains a net importer

• China not flooding the market as some feared • China expected to remain self sufficient in primary metal over the medium term • While China has been curtailing high-cost production in some regions – capacity

expansion continues in Northwest

17

China net position thousand tonnes

Source: Global Trade Atlas, China Customs Note: Total Aluminium (net) includes semis, scrap and primary

Total Aluminium Equivalents (net)


6 6.2

14.9

13.2 10.5 9.7

02468

101214161820

2007 2008 2009 2010 2011 2012 2013 2014 2015

2.3

5.1

8.1

4.8 2.9

4.1 4.8

8.5

11.5

18.5 16.3

17.7 17.4 17.0

6.5

9.4

14.3

11.6 11.3 11.3 11.2

02468

101214161820

2007 2008 2009 2010 2011 2012 2013 2014 2015

Aluminium – Decline in inventory is expected

• Ex-China market should be undersupplied in coming years amid strong demand • Inventory levels should come down to pre global financial crisis levels • Should provide support for LME

18

Inventory (weeks of demand)

Source: CRU

China – CRU

RoW – CRU Global – CRU


• Strong demand in Chinese traded market

• Strong margins at current prices

• Indonesia bauxite exports peaked in 2013 at 49 million tonnes

• Significant Chinese stockpiling

• No bauxite is leaving Indonesia (decree effective January 2014)

Chinese imports (million tonnes)

Source: China Customs 2014 data is YTD April

19

Strong bauxite demand expected in China – Indonesia ban remains firm

0

10

20

30

40

50

60

70

80

90

100

2007 2008 2009 2010 2011 2012 2013 2014

Indonesia Australia Other

January 2014 – Sampit region, Indonesia


0

50

100

150

200

250

300

350

400

450

500

Europe (3M DPP) Japan Midwest

• We sell nearly all our metal to physical markets, capturing both regional and product premiums

• Premiums reflecting market tightness – may stay higher for longer

• Regulation (queue length) could have an impact on premiums

Physical premiums ($/tonne)

Source: Platts & Metal Bulletin

20

Market premiums continue sharp increases due to tightness in physical market


21

Value Added Product: we realise a superior price from 63% of our primary metal

3.5 mtpa Primary Al Production in 2014

Other VAP includes high purity and Dubuc specialty products

Billet 20%

Foundry 10%

High Purity 4%

Rod 3%

Slab 25%

Other VAP* 1%

Remelt & Hot Metal

37%


22

Building momentum

Supply / demand fundamentals improving, particularly outside China

Market premiums increasing and realised price improving

Bauxite fundamentals attractive

Value added products contributing to overall results

Demand strong for long term

Financial update Rhodri Harries – Chief financial officer, Rio Tinto Alcan

26 June 2014 Market overview Financial update Bauxite & Alumina Primary Metal


24

Transforming RTA through reducing cost, improving productivity and strengthening the portfolio

Improve

Strengthen

Deliver

• Delivered $1.5 billion transformation improvement since 2011 • Delivered $574 million of cost savings in 2013 • Targeting further cost savings

• Closed, curtailed and divested 1mt of aluminium since 2009 and with suspension of Gove will have removed 3mt of alumina capacity

• Reshaping portfolio to focus on highest margin assets

• Completed Yarwun 2, AP60, Shipshaw and Isal projects • Driving towards all assets in lower half of cost curve • Focused on completing Kitimat expansion project in H1 2015 • Progress bauxite growth opportunities


46%

19%

18%

12%

5%

Operations Product Premium and MixRaw Materials Functional Support CostVolume Growth

Source: Rio Tinto Alcan

25

Transformation: delivered 50% more than target – one year early

Transformation - Cumulative Impact on EBITDA US$b

Transformation – Leverage area 2011-13 period

0.2

0.6

1.5

2011 2012 2013

2011: $1 Billion by 2014


54

503

557

2012 YoY Change 2013

1,370

524

1,894


293


Source: Rio Tinto 2013 Annual Report

26

Transformation delivering strong EBITDA and earnings growth

Revenue US$m

Net Earnings US$m

Underlying EBITDA US$m

+931%

26

+38% +2%

12,463 12,170


2013 versus 2012 actual excluding the impact of exchange movements Source: Rio Tinto Alcan

27

Delivered $574 million operating cash cost reduction in 2013 – contributing to EBITDA improvement

Operating Cash Cost Reduction – Distribution US$m

46%

26%

28%

Production costs improvements

Initiatives for raw materials

Reduction in functional support costs


Source: Rio Tinto Alcan

28

Strong production cost performance momentum across products

Bauxite Production Cash Cost (Nominal, 2011 Index)

Aluminium Hot Metal Cash Cost (Nominal, 2011 Index)

Alumina Production Cash Cost (Nominal, 2011 Index)

-12% -9% -17%

100 97 91

2011 2012 2013

100 92

83

2011 2012 2013

100 88 88

2011 2012 2013


38 66

132

2011 2012 2013

100 96

84

2011 2012 2013

29

Strong focus on reducing raw material and input costs

Coke Price Delivered % of 2011 cost

Goods and Services Savings - Cumulative US$m

Raw material prices

• Revised specifications

• Implemented low cost country sourcing

• Optimized price negotiations and logistics costs

Goods and Services Savings

• Leveraged Rio Tinto volume

• Rationalized suppliers

• Optimized price negotiations

-16%


0

5

10

15

20

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

30

Substantially lower functional support cost and reduced global employee headcount

Functional support costs US$ million

Rio Tinto Alcan total headcount Number of full time employees (thousands)

• 28% decrease in costs from support functions since 2011

• 26% reduction in the global aluminium workforce since 2009

• Over 5,000 people exited the business in the last four years − 3,800 as a result of asset

divestments − 2,700 as a result of active

headcount reduction measures − 1,500 employees were added

over this period during ramp up of projects

491 460 355

657 637 471

2011 2012 2013

-28%

-26%

Source: Rio Tinto 2013 Annual Report


• Growth capital – primarily Kitimat in 2013

• Sustaining capital: − Progressive reduction − Preserving health, safety,

environment and community (HSEC), license to operate (LTO) and asset integrity

− Economic projects ranked by return

Sustaining and Growth Capital Expenditure (US$m)

Sources: Rio Tinto 2013 Financial Statements, Rio Tinto Alcan Finance analysis

31

Disciplined capital allocation

955 847

1,800

1,379

2012 2013

Growth

Sustaining

2,226

2,755

-19%


571

793

1,364


(384)

517


Sources: Rio Tinto 2013 Annual Report, Rio Tinto Alcan

32

Transformation and disciplined capital allocation generating strong cash flow growth

Operating Cash Flow US$m

Operating Cash Flow Net of Sustaining Capex US$m

+139%

901


Sources: Rio Tinto 2013 Annual Report, Rio Tinto Alcan

33

Key sensitivities and revenue breakdown

Sensitivities (+/- 10% change)* (Impact on earnings, US$m)

Aluminium realised price US$/t

Revenue breakdown US$m

(553)

(177) (141)

553

177 141

(600)

(400)

(200)

0

200

400

600

$CAD 0.971

$AUD 0.868

Aluminium $1845/t

2013 Average

* Effect on underlying and net earnings of +/-10% change in full year average

Trading Revenues Operating Revenues

Product Premium Market Premium LME Cash

12,463

9,597

2,866

2013 2013

2,268

146

277

1,845


34

Building momentum

2011-13 Transformation 2014 + Productivity

Improve • Cost Savings • EBITDA

• Continue Cost Savings • Optimise Working Capital

Strengthen • Reshape Portfolio • Optimise Portfolio • Drive Full Potential

Deliver • Yarwun2, AP60, Shipshaw and ISAL projects • Kitimat and Bauxite growth

Bauxite and Alumina Phillip Strachan – President and chief executive officer, Bauxite and Alumina, Rio Tinto Alcan

26 June 2014 Market update Financial update Bauxite & Alumina Primary Metal


36

Unrivalled position offering strong growth options

Mine Undeveloped Deposit

Cape Bougainville Western Australia

Rio Tinto 67.5%

Sangaredi (CBG) Guinea 15Mtpa mine 303Mt reserves (100%) and 5,771Mt resources (100%) Rio Tinto 22.95% Offtake 45%

Trombetas (MRN) Brazil

17Mtpa mine 104Mt reserves (100%) and

440Mt resources (100%) Rio Tinto 12%

Offtake19%

Amargosa Brazil Rio Tinto 100%

Sanxai Laos Rio Tinto 70%

Gove Northern Territory 8Mtpa mine 150Mt reserves and 48Mt resources Rio Tinto 100%

Weipa (Cape York) Queensland 27Mtpa mine 1,511Mt reserves and 1,965Mt resources Rio Tinto 100%

Active bauxite development projects in Atlantic and Pacific markets

2013 JORC Reserves and Resources, 2013 Rio Tinto Annual Report


37

We have the strongest bauxite position in the industry

2013 Global Bauxite Resources billion tonnes

2013 Global Bauxite Production million tonnes

0

1

2

3

4

5

6

Rio Tinto Alcan

Rusal

Alcoa

BH

P Billiton

Em

irates Global A

luminium

Hydro

Harita

Chalco

Atlantic Pacific

0

5

10

15

20

25

30

35

40

45

50

Alcoa

Rio Tinto Alcan

Chalco

BH

P Billiton

Harita

Rusal

Hydro

Atlantic Pacific

Source: Public disclosures from the respective companies


Unrivalled Competitive Advantage • Large scale: − 1,511 million tonne reserves and − 1,965 million tonne resources

• 100% Rio Tinto • Indigenous agreements in place with

strong stakeholder relationships • Large resource offers many development

options • Low cost – First Quartile operating costs

and freight advantaged into China • High EBITDA margins at today’s bauxite

prices with upside • Business supported by Special Agreement

Acts • South of Embley – environmental

approvals for over 50mtpa production Cape York, Australia

38

Cape York differentiates us from all our competitors

South of Embley

North of Wenlock

Andoom East Weipa


Extent of Cape York Bauxite Resource – Australia • Weipa Cape York − 1,511 million tonne reserves and − 1,965 million tonne resources

• 100% Rio Tinto

39

Trukpayn


Production: 22.5mtpa

Ownership: 100% Rio Tinto

Scope: Mine, Port, Infrastructure

Approvals: EIS complete, Traditional Owner Agreement in place

Mining costs: First Quartile

Expansion: Options for over 50mtpa

40

South of Embley Project is a Tier 1 investment opportunity

Weipa

South of Embley Project


Gove • Decision to fully curtail refinery

was announced November 2013 • Curtailment completed end

of May 2014 • Transitioning to care and maintenance • Workforce reduction from over

1,300 to about 400 • Transformation to bauxite export –

obtained temporary export permit • Bauxite reserves of 150 million tonnes

and 48 million tonnes resource • Plan to progressively ramp up bauxite

exports to about 8mtpa • Bauxite business to sustain important

economic base for region and indigenous population

41

Gove transformation to a bauxite export business on track

Bauxite Export


• Transformation of Gladstone alumina refineries in full swing − Yarwun expansion from 1.4mtpa

to 3.4mtpa − Refining portfolio strongly

positioned in Q2 of the cost curve

• Bauxite production increased to meet the market − Weipa creep by 27% in last

three years with no infrastructure investment

− CBG production records − Gove transformation to bauxite

Bauxite Exports

42

Bauxite and Alumina business transformation

Alumina Refining


58

63 65

2011 2012 2013

100.0

91.1 87.9

2011 2012 2013

20.7 23.3 26.3

2011 2012 2013

100

113 120

2011 2012 2013

43

Cost reduction and volume growth demonstrated in both bauxite and alumina businesses

Weipa Bauxite Volumes mtpa

Refinery Fixed Costs* % of 2011 cost

Weipa Truck Utilisation %

Refinery Productivity* % of 2011 base

-12%

+12%

+27%

*Excluding Gove refinery Source: Rio Tinto Alcan

+20%


44

Building momentum

China fundamentals driving attractive seaborne market

Currently delivering bauxite to China and will grow position through South of Embley

Improving cost position of refineries

Gove refinery curtailed and focusing on bauxite exports

Best bauxite resources in the industry

Primary Metal Arnaud Soirat – President and chief executive officer, Primary Metal, Rio Tinto Alcan

26 June 2014 Market update Financial update Bauxite & Alumina Primary Metal


46

One of the largest, most modern and low-cost smelter portfolios (18 smelters and 9 power stations)

Region1

Primary Metal (MMT)

Power (GW)

NA 1.7 4.0

EMEA 0.7 0.1

APAC 1.1 0.7

Total: 3.5 4.9

RTA Power Stations

Kitimat 187 ktpa Kemano power

ABI (Bécancour) 110 ktpa Alma 448 ktpa Alouette 238 ktpa Arvida / AP60 236 ktpa Grande-Baie 225 ktpa Laterrière 245 ktpa Quebec Power Stations (6)

Canada

Alucam 47 ktpa Cameroon

Sohar 74 ktpa

Isal 200 ktpa Iceland

Søral 93 ktpa

Norway

Bell Bay 187 ktpa Boyne 334 ktpa Gladstone power Tomago 282 ktpa

Australia

NZAS 278 ktpa New Zealand

Lochaber 47 ktpa Highlands power

United Kingdom

Note: (1) Capacity at RTA share as of 31 December 2013

Dunkerque 264 ktpa France

Oman


Source: 2013 CRU Cost Model for Industry average hot metal costs

47

Well positioned in terms of primary metal cost drivers

Smelter Operating Cost Distribution (CRU)

Alumina (36%)

Other Materials

(17%)

Energy (35%)

Labour (6%)

Other (6%)

Low cost, long-term energy supply

Integrated, secure alumina supply

• Technology Leadership • Accumulated operating knowledge & know-how • Global reputation for performance & sustainability


72% 78%

42% 35%

2010 2014

RTA Industry

• Lowest cost quartile globally for energy production

• 78% (72% in 2010) of our smelters electricity supply is non fossil fuel-based compared to an industry total of 35% (42% in 2010)

• In China, share of coal in domestic smelters total energy supply is reaching 85% in 2014 (50% coal-based metal volume increase since 2010)

• 80% of RTA’s internally generated power is hydro-based while 80% of Industry’s internally generated power is fuel based

RTA and Industry Low Carbon Power Energy Mix

Source: RTA analysis

48

Energy position is a competitive advantage

-7%

+6%


0

2

4

6

8

10

12

RTA (Quebec Only) RTA Industry average

Source: RTA internal, International Aluminium Institute Note: (1) 2013 Direct and Indirect emissions (Scope 1 and 2).

49

Smelter emissions intensity is half the industry average, benefiting from its large hydropower position

Smelter GHG Emission Intensity (t CO2 equivalent per tonne of aluminium1)


1 Chute-des-Passes 2 Chute-du-Diable 3 Chute-à-la-Savane 4 Isle-Maligne 5 Chute-à-Caron 6 Shipshaw

• Modern, reliable and efficient assets

• 6 power stations, 3 reservoirs, 28 dams and control works

• Low-carbon hydro power

• Saguenay river water rights owned by RTA for perpetuity and Peribonka river leased until 2058

• Strong integration with Hydro-Québec provides flexibility

50

Quebec hydroelectric system has an installed capacity of 3,035 MW and generates clean, low cost, reliable power for the Saguenay–Lac-Saint-Jean smelters

Lac Saint-Jean

3 2

1

4

6 5


Lac-Saint-Jean

watershed 73,848 Km2

51

Reliable inflows driven by large watershed, which is 30% the area of the United Kingdom

Total area = 73,848km2


Kitimat Smelter and Kemano Power

• Electricity generated by Kemano provides the full power requirement for the current and future Kitimat smelter

• Low-carbon hydro power

• Water rights belonging to RTA in perpetuity

• Interconnected to the North American grid (Canada and USA)

• Surplus power sold to grid

52

British Columbia hydroelectric system has an installed capacity of 1,000 MW and generates clean, low cost reliable power for the Kitimat smelter

Kemano Station

Kenney Dam

Kitimat Smelter

Nechako Reservoir


1.00 1.06

1.19

2011 2012 2013

1.00 0.91 0.81

2011 2012 2013

1.00 0.87 0.72

2011 2012 2013

1.00 1.01

1.02

2011 2012 2013

53

Operational excellence driving performance improvement and position on the cost curve

Volume (t/pot/year, 2011 index)

Hot Metal Raw Materials (Nominal, 2011 index)

Labour Productivity (t/operating FTE, 2011 Index)

Hot Metal Maintenance & Other Costs (Nominal, 2011 index)

Notes: Includes managed sites and excludes portfolio impact from divestments, curtailments and closures. Alma 2012 normalized. AP60 excluded

+2% +19%

-19% -28%


54

Major projects support transformation and leverage technology leadership and self-generated hydro energy position

AP60, Quebec

Kitimat, British Columbia

Shipshaw, Quebec

ISAL, Iceland

• Industrial-scale AP60 platform (60ktpa)

• 40% higher metal output per pot

• 15% higher labour productivity at full capacity

• AP 40 1st decile production (420ktpa)

• Fully leverages Kemano hydropower

• Reduces smelter emissions intensity by more than 50%

• Revenue from shared land usage

• Added 13th generator group at Shipshaw (+225MW)

• Expanded cast house for value added billet

• Creep project increased capacity by 15ktpa to 205ktpa

• Hydro power source


55

Building momentum

Leveraging industry-leading technology and operational capability

Superior quality of assets

Strong delivery of transformation

Unparalleled energy position

Conclusion Alfredo Barrios – Chief executive, Rio Tinto Alcan

26 June 2014 Market update Financial update Bauxite and Alumina Primary Metal


57

Building momentum

Transformation well underway

Portfolio moving further down the cost curve

Market outlook improving

Poised to deliver greater value to shareholders

Best energy and bauxite positions in sector

Questions

26 June 2014 Market update Financial update Bauxite and Alumina Primary Metal

Documents

Rio Tinto Alcan – Building momentum · Alfredo Barrios – Chief executive, Rio Tinto Alcan . 26 June 2014 . ... • Global primary aluminium demand reached nearly 50 ... Credit