coal & allied presentation - upper hunter
TRANSCRIPT
Coal & Allied: Business update
Chris Salisbury
Managing Director Rio Tinto Coal Australia
Wednesday 25 March, 2015
Mount Thorley Warkworth Mount Thorley Warkworth
Mount Thorley Warkworth Mount Thorley Warkworth
Safety – we can achieve zero harm
AIFR ratio: Number of injuries and illnesses per 200,000 hours
1.77
1.08
0.67 0.81
0.58 0.58 0.57
0.76
0.59 0.65 0.70
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Pre-work safety check – Bengalla mine
Strong long term outlook
* Current Policies scenario assumes no new climate change related policies beyond those currently in place are implemented Source: International Energy Agency WEO 2013
0
2
4
6
8
10
12
14
16
18
20
2010 2020 2030
China
R.O.W
Total primary energy demand* by region
0
2
4
6
8
10
12
14
16
18
20
2010 2020 2030
Total primary energy demand* by fuel mix
Biomass, Hydro & other renewables Biomass, Hydro & other renewables
Coal
Primary energy demand* Billion tonnes oil equivalent
Current challenges
Source: globalCOAL
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
60
70
80
90
100
110
120
130
140Newcastle IndexAUD:USD Exchange rate
Source: globalCOAL (Newcastle Index) Thermal coal, RBA
(Exchange rate)
- Thermal Coal
USD AUD/USD
Committed to the Hunter Valley
• Despite tough times, over half
of Coal & Allied’s supplier spend remains within the state.
• More than $960 million with NSW suppliers in 2014.
Coal & Allied’s three Hunter Valley sites supplier spend – 2014
Local (5 LGAs) 28%
Rest of NSW 33%
Rest of Australia
38%
International 1%
Transforming our business Transforming our business through − Aggressive cost
reductions − Productivity
improvements − Effective use of goods &
services − Streamlining product
groups
Unit cost decline at Rio Tinto Coal Australia (US$)
Coal & Allied has large, high quality Hunter Valley resources
69 65
60
70
80
90
100
2012 2013 2014
Thermal coal Coking coal
Indexed against 2012
Bengalla Continuation
• Approval to continue mining until 2039
• Workforce of 500 employees and contractors
• Long term member of Muswellbrook community
Mount Pleasant Project
• Options under review
Mount Thorley Warkworth
• PAC review recommends approval
• Department to assessment PAC review
Future plans
Mount Thorley Warkworth employee
