Iron Ore Company of Canada

Kari Plaster Vice President, Human Resources NOIA Conference June 19, 2012

2

Check-In

Turn to your buddy.

Have a VERY brief discussion…

Is there anything which is keeping you from being fully present right now in

this moment?

3

Overview

Safety

Tools

Rio Tinto and IOC

IOC’s HR Challenges

4

AIFR 2003-2011

1.391.25

2.60

1.06 0.88 0.91

1.86

2.85

3.70

2003 2004 2005 2006 2007 2008 2009 2010 2011

Personal Safety

Workplace Safety

2003-2011

1 1

35

23 22

16

8

17

96

16

44

26

42

31

25

2016

2123

2003 2004 2005 2006 2007 2008 2009 2010 2011

Fatality LTI MTC

Our Journey to Zero Harm

5

Overview

Safety

Tools

Rio Tinto and IOC

IOC’s HR Challenges

6

Five principal product groups:

• Aluminum, Copper, Diamonds & Minerals, Energy and Iron Ore

Two support groups:

• Technology & Innovation, and Exploration

Large, Long-life, Low Cost Assets

Rio Tinto Worldwide

7

Rio Tinto Alcan

Kitimat, BC

Rio Tinto IOC

Labrador City, NL

Rio Tinto Diavik

Yellowknife, NWT

In 2010

• US$8.39 billion in revenue

• 13,400 employees

• 35 operational and administrative sites

• US$1.3 billion on salaries and benefits

• US$2.1 billion contribution to national economy

Rio Tinto in Canada

8

Rio Tinto

(58.7%)

Mitsubishi

Corporation

(26.2%)

LIORC

(15.10%)

World leader in mining, and processing

of mineral resources

Managing Shareholder

Major global trader of iron ore and other

minerals

Canadian corporation traded on the Toronto

stock exchange

IOC Shareholders

9

What Makes IOC Unique (Kari’s View)

The Asset and its Location

-Non-Australia based, Quality and Quantity, Climate

End to End Value Chain

CEO and the Team (the diversity)

Our People

10

IOC’s integrated production system stretches across 400km

Mine

Plants

Railway

Port

11

Most IOC employees in Labrador City are from this province

Mayo family arrived in Labrador City in 1963

By joining IOC in 2008, Alex Mayo became the 4th generation of this family to work at IOC – A first

in IOC history!

IOC’s challenge: create a sustainable business so that Alex Mayo’s family will stay and build their

career at IOC

IOC has deep roots in Newfoundland and Labrador

12

Strong contributor to the provincial and local economy

13

Overview

Safety

Tools

Rio Tinto and IOC

IOC’s HR Challenges

14

HR’s Role in Business

• Think Operations, Act Operations… manage HR

• Help Business Achieve Strategic Objectives

• Solutions Focus

• Help Leaders Lead

• Ensure Business has Enough People

15

Add new

labour work

hours

Improve

existing

utilisation /

productivity

Key objectives Initiatives

• Focus recruitment efforts on open functions / roles

with critical impact on tonnage filled

• Address key accommodation issues that pertain to

retention and recruitment

• Raise number of certified employees for critical

roles

• Plan coverage for upcoming vacation period

• Pilot and implement new or revised policies and

incentivisation strategies to optimise performance

• Improved onboarding, training, and coaching

• Implementation and sustained use of organisational

tools throughout transformation (e.g., scheduling

process)

• Review data gathering and reporting process to

raise transparency in the organization

IOC’s HR Challenges

HR starting point January 2011

• Despite maturity of the business,

a number of foundational HR elements

and processes are not in place

− Missing HR policies/ procedures

are being identified and written

• Transitioning HR organizational

structure to support business

objectives

− Restructuring and creation/ filling

of key positions is a priority and in

progress

• HR performance not well documented

and tracked

− HR performance metrics/

dashboard to be instituted as part

of Business performance

transparency module in

Turnaround

16

HR Actions Support Debottlenecking Operations

Initiatives

Policy Blitz /

Policy Tightening 1

Contracting out 2

Fill Critical

Vacancies 3

FIFO 4

Accommodation 5

Data Diagnostic 6

Supervisor Perf.

Management 7

• In addition to these specific

initiatives, the HR department has

put in place a series of structural

changes to make it better suited to

serve the business priorities

• The team is also introducing a set

of key tools and frameworks aimed

at rising management ability to drive

high performing teams (change

acceleration, solution focus

facilitation)

Onboarding and

Training 8

17

Rio Tinto & Iron Ore Company

Tools

Our Vision & Culture

Our HR Challenges

18

Labour Negotiations Success in 2012

I. Team Selection

− Operations and HR Leaders

− Back-office Team and Front Office Team

II. Training and Mock Sessions for Practice

• Effective Negotiations Skills Critical for Alignment

• Mock Sessions: Before, During and After

• Scenario Planning

III. Governance

• Local Tables and Common

• Steering Committee

IV. Review System and Process to Learn from Experience

19

IOC – Remuneration Data 19

HR Remuneration Strategy has 4 Parts

20

CAP Model (Change Acceleration Process)

21

Iceberg

TOOLKIT

1111

The Iceberg – What lies beneath?

What we see and

usually attempt

to address.

What we don’t see and

often don’t attempt (or forget)

to address.”

behaviour

values / beliefs

motives

needs

personality

environment

instincts

background / upbringing

22

Trust Grid

23

Check-in / Check-out

24

Questions?