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Great Past, Better Future

Leigh CliffordChief executive Rio Tinto

Brisbane Mining Club – 8 May 2006

2 Brisbane Mining Club – 8 May 2006

87% of Rio Tinto’s assets are in Australia and North America

2005 gross assets = $27bn

United States 19%

Australia 56%

2%Indonesia

3%Europe

4%S America4%Africa

Canada

12 %

Data under IFRS


Economic contribution of Rio Tinto within Australia/NZ in 2005

Other

Australia/NZ

64%

Queensland

36%

Source: Rio Tinto


0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Black coal

Copper Concentrates

Zinc Concentrates

Oil and gas

Lead Concentrates

Gold

Bauxite

Titanium minerals

Others

A$ millions

Value of mineral production in Queensland in 2003/04

Source: Qld. Department of Natural Resources and Mines, Queensland Mineral and Petroleum Review 2003-04


Contribution of the mining sector to GDP/GSP 2004/05

Mining -

direct

Mining -

indirect

Other

Mining -

directMining -

indirect

Other

Note: Assumes a multiplier effect of 2 to calculate the indirect contribution to GDP

All Australia Queensland


Queensland royalty receipts from the mineral sector

0

200

400

600

800

1,000

1,200

1,400

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06

.

A$ millions

Projected

Source: Department of Natural Resources and Mines, Queensland Mineral and Petroleum Review and Annual Report 2004-05


Capital expenditure in mining in Queensland

Source: Queensland Resources Council and ABS

0

500

1,000

1,500

2,000

2,500

1989/90

1991/92

1993/94

1995/96

1997/98

1999/00

2001/02

2003/04

A$ millions

private fixed capital investment


Exploration expenditure in Queensland

Source: Queensland Department of Natural Resources and Mines, Annual Report 2004-05

0

40

80

120

160

200

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

A$ millions


Queensland operations

Weipa (100%)

Blair Athol (71%)Clermont (project) (50%)Hail Creek (82%)Kestrel (80%)

Boyne Island (59%)CAR (100%)QAL (39%)Gladstone power station (42%)

Tarong (100%)

Brisbane offices


China is now the largest consumer of a number of commodities

1st

1st

1st

1st

1st

1st

2nd

0

10

20

30

40

50

Oil Al Iron ore

(traded)

Ni Cu Steel Coal*

Chinese % of global consumption (2005)

Sources: WBMS, Barlow Jonker, IEA *Coal data relates to 2004

Global ranking in 2005


Comalco Alumina Refinery – Stage 1 performance

• Project delivered on budget, ahead of time

• Ramp up to nameplate capacity continues

• Focus is on improving reliability of pumps feeding digestion circuit

0

50

100

150

200

250

300

350

Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Ratedcapacity

CAR quarterly production (kt)


Hail Creek


Economist index of non-ferrous metals prices

f

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 200650

70

90

110

130

150

170

190

Monthly, January 1996=100

US Dollars

Euros


Sustainable development

• Safe work practices

• Environmental stewardship

• Good indigenous and community relationships

• Economic and social sustainability

• Local and regional economic development

• Energy efficiency / climate change


Rio Tinto’s safety performance

0

0.5

1

1.5

2

1999 2000 2001 2002 2003 2004 2005

LTIFR per 200,000 Hours Worked

LTIFR = Lost Time Injury Frequency Rate


Future Reef partnership

• To preserve the reef’s economic and environmental value through research based solutions

• Rio Tinto Aluminium, Great Barrier Reef Research Foundation and University of Qld

• The programmes:

– Ocean acidification research programme

– Reef searchers employee programme

• A$1 million over four years and inland support


World primary energy demand

Source: World Energy Outlook 2005 - Middle East and North Africa Insights, International Energy Agency, 2005

0

1 000

2 000

3 000

4 000

5 000

6 000

1970 1980 1990 2000 2010 2020 2030

Mtoe

Oil

Natural gas

Coal

Nuclear power

Hydro power

Other renewables

0

1 000

2 000

3 000

4 000

5 000

6 000

1970 1980 1990 2000 2010 2020 2030

Mtoe

Oil

Natural gas

Coal

Nuclear power

Hydro power

Other renewables



Weipa (100%) – bauxite

Blair Athol (71%) – thermal coalClermont (project) (50%) – thermal coalHail Creek (82%) – coking coalKestrel (80%) – coking / thermal coal

Boyne Island (59%) – aluminium smelterCAR (100%) – alumina refineryQAL (39%) – alumina refineryGladstone power station (42%)

Tarong (100%) – thermal coalBrisbane offices

great past, better future - brisbane mining club · great past, better future leigh clifford chief...

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