chris welton director – rio tinto kazakhstan amm – astana july 2012 exploration technology and...
TRANSCRIPT
• Chris Welton• Director – Rio Tinto Kazakhstan
AMM – Astana July 2012
Exploration technology and partnerships in Central Asia
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©2012 Rio Tinto, All Rights Reserved
Market capitalisation of major listed mining companies
At 29 February 2012(US$bn)
Anglo PlatinumFresnillo
Teck ResourcesMosaic
Grupo MexicoSouthern Copper
NewcrestNewmont
NorilskGoldcorp
Potash CorpFreeportGlencore
BarrickAnglo American
XstrataShenhuaRio Tinto
ValeBHP Billiton
0 50 100 150
21
22
23
25
25
27
28
29
38
39
40
40
48
48
56
57
88
112
135
193
Chart Title
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Rio Tinto – a world leader in mining
Aluminium
#1 in bauxite#2 in aluminium#3 in alumina
Diamonds & Minerals
#1 in titanium dioxide and seaborne salt
#2 in borates#5 in diamonds
Copper
#5 in copper#7 in molybdenum
Energy
#4 in uranium#6 in export coking coal #9 in export thermal coal
Iron Ore
#2 in seaborne iron ore
2010 data
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Implementation of innovative technologiesis a key differentiatorOur Mine of the FutureTM is shaped by four significant value levers
Find Develop Mine Recover
• Find future tier oneore bodies
• VK1 in initial flight trials• Complex testing
programme in 2012
• Develop future blockcave mines safer,faster, better
• Tunnel boring system trials to commence at Northparkes in 2012
• Optimise resource productivity
• Expansion of driverless truck fleet
• Operations Centre• Smart drilling and
blasting• Autonomous trains
(AutoHaul™)
• Recover more from mineral deposits
• IronX™ iron ore recovery pilot plant to be scaled up in 2012
• NuWave™ copper sorting pilot plant being commissioned at KUC
Innovation networks created through long term strategic alliancesProtection of Intellectual Property is key to sustaining competitive advantage
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The target – A Tier 1 deposit
Tier 1 deposits – the largest and highest quality in the world – are geologically rare
They are profitable at all parts of the natural price cycle and confer sustainable competitive advantage
They grow with exploration and commonly have other Tier 1 deposits nearby
Their capacity to support production expansions delivers optionality and value growth
Output from these deposits dominates global minerals production
They have mine lives in excess of 50 years and often in excess of 100 years
View of the open pit
Production by year 1906 - 2010
Bingham Canyon, USA
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Copper discoveries showing depth of deposits with >4Mt contained copper
-200
0
200
400
600
800
1000
1200
1400
1850 1870 1890 1910 1930 1950 1970 1990 2010
Approximate year of discovery
Ap
pro
xim
ate
de
pth
to
to
p o
f d
ep
os
it
Resolution
Hugo Dummett
Pebble East
Heruga
Kalamazoo
Escondida
Grasberg
Chuquicamata
El Teniente Andina
Olympic Dam
Los Sulfatos
Source: MEG
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Technology: Driving our competitive advantage in exploration
Rapid laser guided analysis of mineral grains allows the development of vectors to mineralisation from distal rocks or transported grains in regional exploration. This can reduce the time to discovery and make exploration more efficient.
RIMS
Step-change airborne gravity gradiometer technology multi-commodity application provides highly sensitive gravity readings from an airborne instrument that can be flown over large prospective blocks as a first pass prospecting tool.
VK1 • Our exploration R&D focus is
on step-change technologies
with multi-commodity
applications
• RIMS geochemistry is being
developed for copper and
uranium exploration to assist
in developing vectors to
mineralisation based on distal
samples
• Rio Tinto is at an advanced
stage of development of a
high sensitivity gravity
gradiometer system (VK1™)
for multi-commodity mineral
exploration
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Technology: Driving our competitive advantage in exploration
Deep penetrating geophysical method to model covered and deep mineralised targets. This can reduce drill costs and identify high grade deep targets for future block cave exploitation.
3D MT modelling
30 Eö/√Hz noise 1 Eö/√Hz noise
Deep drilling • Deep covered targets are
expensive and difficult to drill
test.
• Deep penetrating geophysics
can effectively model geology
and mineralisation and not
only provide targets but also
increase confidence on future
resource models.
• Drilling technology has
advanced significantly in
recent years and maximum
data can now be obtained
from a single drill pad.
Deep targets are expensive to drill and require specialist equipment and technology. Rio Tinto is partnering with drill contractors to maximise the speed and efficiency of deep drilling through the drilling of multiple tails from a single drill pad.
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Rio Tinto’s approach to partnership
• Partnerships are a central part of Rio Tinto’s approach in the countries in which we operate, these vary from simple joint ventures, to strategic alliances with the countries government, but also include technology partnerships with suppliers and contractors.
• ICMM members seek to be partners of choice for host countries and communities in developing mineral resources. Helping to ensure that the companies’ investments in these resources enhance social and economic development locally and nationally is an important part of accomplishing this goal.
• A partnership plays on the strengths of both parties and to be a success needs to have clearly defined common goals
“Every time Rio Tinto enters a new region we recognise that we are doing so at that country’s invitation”
Doug Richie, Rio Tinto Executive Committee
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Partnerships in eductaion
Proposal Benefit for Kazakhstan
Benefit for Rio Tinto
Partnerships with local universities to provide internships for students and employment opportunities for graduates
Skills development for future workforce
Future skilled workforceAccess to research skills
Partnership with the Bolashak scholarship programme to identify opportunities for Kazakh post graduate students to pursue technical research projects
Increase in technical skills in Kazakhstan
Access to research skills
Partnerships with Kazakh universities such as the Nazarbayev university to identify opportunities for Kazakh post graduate students to pursue technical research projects
Increase in technical skills in Kazakhstan
Future skilled workforce
• Rio Tinto proposes to establish a proactive support network for education institutes to create
future work force in Kazakhstan
• Rio Tinto to aid in skills development of employed staff to better enable to the local work force
to manage and operate mines in Kazakhstan
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Conclusions• Future copper discoveries will be deep and with complex geology often with either
no surface expression of occurring beneath low grade or barren systems
• Exploration technology is required to discover and evaluate these opportunities
• When Rio Tinto enters a new region we recognise that we are doing so at that country’s invitation
• Rio Tinto is committed to creating partnerships to not only utilise but also effectively transfer technology and experience.
• The foundation being set in Kazakhstan through our proposed partnerships with Tau-Ken Samruk and MINT provide a platform for effective communication and bring benefits to both Rio Tinto and Kazakhstan.
• This model will be mirrored in neighbouring countries.
• Rio Tinto’s goal is to be the partner of choice in central Asia.
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