rio tinto chartbook · march 2019 1 cautionary statements 2 mineral resources, reserves and...

ChartbookMarch 2019

Contact details Investor Relations, EMEA/ North America John Smelt Office: +44 (0) 20 7781 1654 Mobile: +44 (0) 787 964 2675 [email protected] David Ovington Office: +44 (0) 20 7781 2051 Mobile: +44 (0) 7920 010 978 [email protected] Nick Parkinson Office: +44 (0) 20 7781 1552 Mobile: +61 (0) 436 637 571 [email protected] Investor Relations, Australia/ Asia Natalie Worley Office: +61 (0) 3 9283 3063 Mobile: +61 (0) 409 210 462 [email protected] Rachel Storrs Office: +61 (0) 3 9283 3628 Mobile: +61 (0) 417 401 018 [email protected]

March 2019

1 Cautionary statements 2 Mineral resources, reserves and

production targets 3 Overview 4 Focus on people and sustainability5 Rio Tinto – a world leader in

mining 6 Where we operate 7 More than 85% of assets in OECD8 Strength in diversity 9 Strategy will deliver value through

the cycle 10 Disciplined capital allocation 11 2018 highlights 12 A strong 2018

Delivering $13.5 billion of cash returns

13 Increased portfolio value and performance

14 Consistent, disciplined capital allocation Investment and shareholder returns delivered from operating cash flow

15 Commodity specific price drivers in 2018

16 Strong and consistent EBITDA 17 Productivity accelerating in 2019 18 Our strong balance sheet gives us

resilience and flexibility 19 Disciplined ramp-up of

investments 20 Superior cash returns declared of

$13.5 billion in 2018 21 Investing through the cycle 22 Tailings storage facilities 23 Three levels of assurance for

managing tailings and water storage

24 Strong base for future growth and profitability

25 2019 production guidance 26 Other guidance 27 Net earnings reconciliation 28 Market outlook 29 2019 outlook 30 China supply-side reform and

tightening environmental policy have driven structural change

31 China’s supply-side reform and environmental policies have created a more efficient industry…

32 … causing a structural shift towards productivity

33 China’s supply-side reforms are here to stay and will continue to be driven by tightening environmental policy

34 Impact of China policy changes on aluminium capacity

35 Strong global aluminium demand with Chinese production at a turning point

36 Increasing production in bauxite and alumina

37 Rio Tinto well placed to benefit from copper’s attractive long-term fundamentals

38 Iron Ore 39 Iron ore

Continued delivery from a world-class asset

40 Iron ore Maintaining our competitive advantage

41 Iron ore Lower prices partly offset by higher volumes

42 Our value over volume strategy maximises free cash flow

43 World-class assets, fully integrated and agile network

44 Highly valued product suite, sustained by significant resources

45 Best in class quality delivered through system blending

46 Pilbara blend is the world’s most recognised brand of iron ore

47 Yandicoogina, Robe Valley products are placed with customers who value them most

48 Multiple low-cost, value-accretive capital options

49 Productivity options to continue to deliver cash benefits

50 Priority remains to optimise infrastructure capacity and build flexibility

51 Further opportunity exists to optimise mines

52 Optimising rail capacity and improving flexibility

53 AutoHaul® completed in 2018 54 Aluminium 55 Aluminium

stable operations squeezed by raw material costs

56 Aluminium

March 2019

higher prices and volumes & mix partly offset by raw material cost headwinds

57 Strategy for outperformance through the cycle

58 We will maintain our low-cost position

59 Unrivalled assets in the Saguenay, Quebec

60 Productivity options to continue to deliver cash benefits

61 Bauxite : asset performance drives productivity

62 Smelters creeping at 1% per annum, double industry average

63 Enhancing margins through VAP 64 Amrun ramping up in 2019 65 Section 232 impact 66 Relevance of Alunorte

curtailment, Rusal sanctions and alumina legacy contracts

67 Modelling Aluminium EBITDA 68 Modelling Aluminium costs 69 Copper & Diamonds 70 Copper & Diamonds – strong

operational performance 71 Copper & Diamonds – strong

operational performance 72 Sector-leading attributes 73 Strategy to deliver further value 74 Productivity options to continue to

deliver cash benefits 75 Kennecott – a stronger contributor

to cash 76 Oyu Tolgoi – the leading Tier 1

copper project 77 Non-managed interest in

Escondida 78 Future optionality for the Copper

business 79 Delivering medium-term growth

and progressing long-term options80 Developing our people and our

partnerships 81 Energy & Minerals 82 Energy & Minerals* a challenging

year 83 Energy & Minerals

Higher prices offset by coal disposal and one-off disruptions

84 Maximising value from the Energy and Minerals portfolio

85 A lean, scalable operating model running cash-focused businesses

86 Borates

87 Iron Ore Company of Canada 88 Iron & Titanium 89 Maximising ore value through

product portfolio 90 Growth & Innovation 91 Growth & Innovation enabling

value generation across asset lifecycle

92 Our focus builds on leadership in data, technology and automation

93 Driving Rio Tinto mine to market productivity

94 Delivering $1.5bn additional free cash flow each year from 2021

95 Number of discoveries by quality 96 Discovery of copper-gold

mineralisation in Western Australia

97 Extensive and successful exploration programme

98 Corporate Information 99 Dividend policy and capital

commitment 100 Credit rating* 101 Near-term maturities further

reduced in 2018 102 Modelling EBITDA 103 Accounting treatment of principal

operations 104 Accounting treatment of principal

operations 105 Principal corporate activity 2010 -

2012 106 Principal corporate activity 2013

to 2017 107 Principal corporate activity 2018

to 2019 108 Ongoing major capital projects 109 Ongoing major capital projects 110 Geographical analysis of Rio

Tinto shareholders 111 Rio Tinto Executive Committee 112 Rio Tinto board – diverse,

operational experience 113 Rio Tinto board – diverse,

operational experience

©2019, Rio Tinto, All Rights Reserved1

Cautionary statementsThis presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement.

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.

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. In this presentation all figures are US dollars unless stated otherwise.

Disclaimer

Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto. By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies.

This presentation contains a number of non-IFRS financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto’s annual results press release and/or Annual report.


Mineral resources, reserves and production targetsMineral Resources and Ore Reserves

The Mineral Resource estimate for Resolution which appears on slide 78 was reported in Rio Tinto’s 2018 Annual Report released to the market on 27 February 2019. This resource estimate is reported on a 100% basis. The Competent Person responsible for that previous reporting was C Hehnke (AusIMM).

The Reserve grade for Oyu Tolgoi Underground – Hugo Dummett North and Hugo Dummett North Extension, which appears on slide 76 was reported in the 2018 Rio Tinto Annual Report on 27 February 2019. The Competent Person responsible for that previous reporting was J Dudley (AusIMM).

The Mineral Resource and Ore Reserve estimates which appear on slide 44 are reported on a 100% basis. Mineral Resources are reported as additional to Ore Reserves. These Mineral Resource and Ore Reserve estimates, together with the ownership percentages for each joint venture were set out in the Mineral Resource and Ore Reserve statements in the 2013 to 2018 Rio Tinto annual reports to shareholders released to the market on 14 March 2014, 6 March 2015, 3 March 2016, 2 March 2017, 2 March 2018, and 27 February 2019 respectively. The Competent Persons responsible for reporting of those Mineral Resources and Ore Reserves were B Sommerville (Resources 2013-2018), P Savory (Resources 2013-2018) and A Bertram (2017-2018), L Fouche (Reserves 2013-2014), A Do (Reserves 2015), C Tabb (Reserve 2013 - 2017) and R Verma (Reserves 2017-2018)

Rio Tinto is not aware of any new information or data that materially affects the above Mineral Resource and Ore Reserve estimates as reported in the 2018 Annual Report. All material assumptions on which the estimates in the 2018 Annual Report were based continue to apply and have not materially changed. The form and context in which those findings are presented have not been materially modified. Mineral Resources are reported exclusive of Ore Reserves. Ore Reserves are reported as product tonnes. Mineral Resources are reported on an in situ basis.

Overview


Focus on people and sustainability

0.97

0.820.69 0.67 0.67 0.65

0.59

0.44 0.44 0.42 0.44

2.78

1.56

1.171.24

1.010.90 0.90 0.94

0.850.79

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

All

inju

ry f

requ

ency

rat

e pe

r 20

0,00

0 ho

urs

Rio Tinto AIFR

ICMM (23 companies) AIFR

Health and Safety

3 fatalities in 2018; 2 workplace related, 1 security incident

CRM* a strong focus with 1.4 million verifications in 2018

White Ribbon accreditation in Australia

Environment

Successful divestment of Grasberg and sale of coal

First TCFD* report released – includes 2ºC scenario analysis

GHG* emissions intensity reduced by 2.5% YoY, and 29% below 2008 baseline

* Critical Risk Management, Taskforce on Climate Related Financial Disclosures, Green House Gas

Safety Performance


Rio Tinto – a world leader in mining

Aluminium Copper & Diamonds

• Industry-leading bauxite position• Alumina refineries provide competitive security of

supply for our smelters• Sector-leading primary aluminium metal EBITDA

margins, driven by low-carbon, low-cost power

• Significant producer of copper from our assets in the USA, Mongolia and Chile

• Diverse diamonds business• Maximises our technical underground mining

expertise

Energy & Minerals Iron Ore

• Leading supplier of titanium dioxide feedstocks, zircon and borates

• Supplier of salt and uranium• Iron Ore Company of Canada produces concentrates

and pellets

• World-class Pilbara operations in Western Australia• Supplies our premium Pilbara Blend lump and fines

products• Industry-leading margins supported by automation,

innovation and technology


Where we operate

Europe

SouthAmerica

Australasia

Africa

Asia

NorthAmerica

AluminiumCopper & DiamondsEnergy & MineralsIron Ore

KeyMines and mining projects

Smelters, refineries, power facilities and processing plants remote from mine


More than 85% of non-current assets in OECD

US 8%

Australia/NZ 50%

Canada23%

Mongolia

2%

Other

AfricaSouthAmerica

2018 non current assets (other than excluded items* and non controlling interest) by region

2018 total assets = $56 billion

* Non current assets excluded from the analysis were: Deferred tax assets, Other financial assets (including loans to equity accounted units), Quasi equity loans to equity accounted units, tax recoverable and trade and other receivables.

6% 5%

6%


Strength in diversity

45%

10%

11%

19%

10%

5%

Japan

China

Other Asia

North America

Revenue – by destination

Percentage

Iron ore 49%

Copper & Gold 8%

Aluminium 30%

Coal 2%

Diamonds 2%

Revenue – by commodity

Percentage

Consolidated sales revenue in 2018 was US$40.5 billion


Strategy will deliver value through the cycle

Disciplined capital allocation

World-class assetsPortfolio

Operating and Commercial excellence Performance

CapabilitiesPeople & Partners

Balance sheet strength Superior shareholder returns Compelling growth

Superior cash generation


Disciplined capital allocation

Essential sustaining capex1

Ordinary dividends2

Iterative cycle of3

Further cash returns to

shareholders

Compelling growth

Debtmanagement

2018 highlights

A strong 2018

12 ©2019, Rio Tinto, All Rights Reserved

Balancesheet

Valuecreation

$11.8bnOperating cash flows

$8.6bnDisposal proceeds***

– Divested coking coal, Grasberg and Dunkerque

$0.3bnNet cash at Dec-2018

– Adjusted net debt of $8.0 billion**

– No bond maturities until 2020

Financialperformance

$18.1bnEBITDA* on margin of 42%

* Underlying EBITDA | ** Adjusted net debt of $8.0 billion includes return of Grasberg/Dunkerque proceeds, previously announced buy-backs, Australian tax lag, and leasing accounting standard change | *** Pre-tax proceeds

**** Return on Capital Employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed (operating assets before net debt)

$13.5bnTotal shareholder cash returns

19%Return on capital employed****

$2.9bnDevelopment capital investment

Approval of Koodaideri and Robe River replacement iron ore mines

Delivering $13.5 billion of cash returns


Increased portfolio value and performance

Completed ~$12bn disposals since 2015

Grasberg

Kitimat wharf & land

Qld coking coal

Aluminium Dunkerque

Coal & Allied

Other

And strengthened the portfolio:

Increase in CuEq CAGR of 1.4%*– Driven by a 3.4% increase in CuEq CAGR

across our remaining portfolio

Increased ROCE by 10pp from 2015-2018

Reduced net debt by $14 billion since Dec-2015

* 2015 – 2018

$5bn Buy-backs

from disposals


Consistent, disciplined capital allocationInvestment and shareholder returns delivered from operating cash flow

$7bnGrowth capex

$12bnDividends paid

$3bnBuy-backs

$6bnSustainingcapex

$46bn(2016-18)

$14bnReduction in net debt

$12bn Cash fromdisposals

$34bnCash flow from operations

$46bn(2016-18)

* Comprises $4 billion of special dividends and $1.7 billion of on-market Plc buy-backs by 28 February 2020.Numbers have been rounded to the nearest $bn

$3bn2018 final dividend to be paid in Apr-19

$6bn*2019 special dividend and buy-backs

+

+


Commodity specific price drivers in 2018

Aluminium (+7%)

Copper (+6%)

Iron Ore (-4%)

Jan 18 Mar 18 May 18 Jul 18 Sep 18 Nov 18



2,700

1,700

340

240

80

50

Iron ore

Solid growth in global steel production, including Chinese crude steel production of ~930Mt

China’s structural policy-driven demand for higher grade products

Disrupted seaborne supply (~40Mt)

Aluminium

Robust global demand growth of ~4%

Volatility in supply surrounding potential Rusal sanctions

Trade tariffs and uncertainty

Copper

Macro headwinds affected demand in H2

Limited supply disruption of ~3%

2018 avg*: $61.2/t vs $64.1/t in 2017

2018 avg**: $2,110/t vs $1,969/t in 2017

2018 avg: 297c/lb vs 281c/lb in 2017

* Dry metric tonne, FOB basis | ** Average LME price


Strong and consistent EBITDA

* Other cash costs include movements in Central costs and Exploration & Evaluation costs. All variances exclude coal

Underlying EBITDA $ billion

17.4 17.2 17.2

0.20.3 0.9

(0.4)(0.3)

(0.4)(0.3)

(0.2)

1.20.9

2017underlyingEBITDA

Price Exchangerates

Energy CPI Flexed 2017 underlying

EBITDA

Volumes &mix

Rawmaterial costheadwinds

Other cashcosts*

One-offsand other


18.118.6

Coal EBITDA

EBITDA excl. Coal


Productivity accelerating in 2019

Post-tax mine-to-market (M2M) productivity programme$ billion (free cash flow)

2018 M2M additional free cash flow fully offset by raw material cost headwinds, primarily related to Aluminium

2018 invested in capabilities and technology for future productivity

2018 run rate of $0.4 billion with additional $0.6 billion M2M free cash flow expected in 2019

Maintain M2M free cash flow target of $1.5 billion run-rate from 20210.4 0.4

1.0

0.3 0.3

0.6

2017 run rate 2018 additional 2018 costheadwinds

2018 run rate 2019 additional* 2019 target runrate

* Based on consensus prices and exchange rates

9.6

3.8

2016 2017 2018 2018 adjusted

7.0*

8.0

IFRS 16

9.6

(0.3)


Our strong balance sheet gives us resilience and flexibility

* Adjusted Dec-2017 net debt of $7 billion included announced buy-backs relating to the Coal & Allied proceeds and the Australian tax lag** Numbers are rounded to the closest $0.1bn | *** As at February-2019 | **** Gearing ratio = net debt / (net debt + equity)

Net cash of $0.3 billion

Committed cash outflows for 2019 will result in adjusted net debt of $8.0 billion**:

– $4.0 billion return of Grasberg and Dunkerque proceeds via special dividend

– $1.7 billion in buy-backs previously announced in 2018

– $0.4 billion for lag in Australian tax payments

– $0.9 billion coal disposal tax payment

– New leasing accounting standard to come into effect from January 2019, increases net debt by $1.2 billion (non-cash)

Net debt$ billion

Adjusted net debt / EBITDA 0.7x 0.4x (0.0x) 0.4x

Gearing ratio**** 17% 12% (1%) 14%

Credit ratingS&P A- A- A A

Moody’s Baa1 A3 A2*** A2***

19

Disciplined ramp-up of investments

Capital expenditure profile$ billion

3.0

4.5

5.4

~6.0

~6.5 ~6.5

2016A 2017A 2018A 2019F 2020F 2021F

Sustaining Pilbara replacement Other replacement Development

Maintained sustaining capital guidance of $2.0 to $2.5 billion per year, including:– Iron Ore sustaining capex of

~$1 billion per year

Pilbara replacement capital includes Koodaideri and Robe River mine developments from 2019

All capital decisions go through rigorous evaluation and challenge

Development capital delivers 2% CAGR (2019 – 2023)

©2019, Rio Tinto, All Rights Reserved

Depreciation


Superior cash returns declared of $13.5 billion in 2018

6.3

13.5

2.2

1.0

3.1

2.1

1.1

4.0

2018 interim dividend On-market plc SBB byFeb-2019

2018 final dividend Total returns fromOperations

Off-market Ltd SBB On-market Plc SBB 2019 special dividend Total returns declared

Grasberg and Dunkerque proceeds

Coking coal

2018 cash returns declared to shareholders$ billion

Note: Franking credit balance at Dec-2018 was $4.7 billion | Numbers have been rounded to the nearest $0.1bn


Investing through the cycle2% CAGR** from an extensive pipeline of growth options

Arvida, AP60

Kennecott: SPB Slice 2*Selective U/G Project*

Western Range, WTS 2*

Zulti South*

Resolution

Koodaideri Stage 2

Jadar

6 Brownfield exploration programmes

Pilbara Iron Ore

Oyu Tolgoi Copper

Cape York Bauxite

Bingham Canyon Copper

Other minerals

OT Underground

Koodaideri*

Mesas B, C, H, West AngelasC&D*

Kennecott SouthwallPushback*

Pre-Feasibility& Feasibility

World Class Resource Base andEstablished Exploration Programme

Execution

* Denotes mainly replacement tonnes | ** CuEq CAGR from 2019 – 2023

Copper

Diamonds

Iron Ore

Bauxite

Other

$231mspent on

explorationin 2018

64 Greenfield exploration programmes

Pilbara Iron Ore

Copper (inc. Winu)

Diamonds

Bauxite

Other minerals


Tailings storage facilities

22

With active or inactive tailings storage facilities, including 3 non-managed operational sites and 4 legacy sites

100facilities

Active or inactive, with an additional 36 facilities closed or under rehabilitation

32operations

Upstream Centreline Other*Downstream

14facilities

24facilities

41facilities

21facilities

10 active

4 inactive

3 closed

16 active

8 inactive

5 closed

36 active

5 inactive

11 closed

19 active

2 inactive

17 closed

www.riotinto.com/tailings

Construction type:

*Other includes Single embankment, No embankment – excavated storage facility, No embankment – dry stack, Lake discharge.Active includes tailings storage facilities under construction.

Rio Tinto Kennecott, Utah, US

Hope Downs 4, Pilbara, Western Australia

Boron, California, US

Three levels of assurance for managing tailings and water storage

23

Audit

Surface Mining Centre of Excellence

Technical risk reviews

Site processes

Effective design, inspection and monitoring

Group Standard and Procedure (D5 – Tailings & Water Storage)

rdlevel3

ndlevel2

stlevel1

Group review

Assurance to the Rio Tinto Standard

Business conformance audits and HSEC reviews

Review by subject matter experts external to the asset

Operations management

Effective facility design (Engineer of Record / Design Engineer)

Comprehensive operational controls

Independent external review undertaken at least every two years

Audit of control effectiveness

Group Internal Audit working with external auditors

Assures systems for risk management, internal control and governance are effective



World-class portfolio

19% ROCEThrough a simplified portfolio of long life, low cost assets

Attractive growth opportunities

2% CuEqAnnual growth rate to2023 from broad pipelineof growth opportunities

Consistent financial discipline

$29bn*Returned to shareholders in 3 years, cash generative assets and strong balance sheet

21st century mining company

ZeroCoal or oil productionplus a leading position in technology and automation

Operatingefficiency

$1.5bnFree cash flow per year from 2021 delivered through our productivity programme

Strong base for future growth and profitability

24 * Including 2016-2018 cash returns, 2018 final dividend, 2019 buy-backs and special dividend

Safety is our priority #1


2019 production guidance

- Iron Ore: Pilbara shipments guidance between 338-350Mt (100% basis)

- Aluminium: 56-59Mt bauxite, 8.1-8.4Mt alumina, 3.2-3.4Mt aluminium

- Copper & Diamonds: 550-600kt mined copper, 220-250kt refined copper, 15-17Mcts diamonds

- Energy & Minerals: 11.3-12.3Mt iron ore pellets and concentrate, 1.2-1.4Mt TiO2 slag, 0.5Mt boric acid equivalent


Other guidance

- Mine-to-market productivity programme to deliver an additional free cash flow run-rate of $1.5 billion from 2021, as originally anticipated. In 2019 we expect the run-rate to be around $1.0 billion.

- Capital expenditure to stay at around $6.0 billion in 2019 and around $6.5 billion in 2020. In 2021, we expect to invest $6.5 billion in our business. Each year includes approximately $2-2.5 billion of sustaining capex.

- Effective tax rate on underlying earnings of approximately 30% in 2019.

- Pilbara unit cash costs of $13-14 per wet metric tonne (excluding freight) in 2019.

- C1 unit costs at Rio Tinto Kennecott, Oyu Tolgoi and Escondida to average 110-120 US cents per pound in 2019.

Net earnings reconciliation


($bn) Reported Underlying Exclusions

EBITDA 23.3 18.1 5.1*

Depreciation & Amortisation (4.6) (4.6) 0.0

Impairment charges (0.1) 0.0 (0.1)

Finance items (0.1) (0.7) 0.6

Tax (4.5) (3.7) (0.8)

Non-controlling interests (0.3) (0.3) (0.0)

Net Earnings 13.6 8.8 4.8

Exclusions from underlying EBITDA:

– gains on disposal of businesses and land (Kitimat), and gain on formation of Elysis JV

– gains on embedded commodity derivatives

– offset by increases to closure provisions at Argyle and ERA

Impairment charges relate mainly to ISAL and excluded from underlying earnings

Finance items are reported net of exchange gains on net debt and intragroup which are excluded from underlying earnings. Underlying finance costs are lower than 2017 on lower net debt

Tax rate on underlying earnings of 29%. The tax rate on net earnings is 23% due to non-taxable gains on disposal

Tax rate 23% 29%

ROCE 30% 19%

* Numbers have been rounded to the nearest $0.1bn

Market outlook


2019 outlook

Global economic growth– Momentum slowing

– Volatility and risk of trade war is ongoing

China’s GDP growth – Decelerating as expected

– Introducing stimulus measures to encourage infrastructure investment and support the private sector

Global trade

Global GDP

China tipped to continue stimulus as growth slows

China’s new trade offer is better than a tariff war

US-China trade war: who has the upper hand?

White House: Trump weighing possibilities on China Trade Deadline

As the clock ticks, there's a path to a 'win-win' outcome in US - China trade talks

Source: Rio Tinto, Oxford Economics

‐2%

0%

2%

4%

6%

8%

Jan‐16 Jul‐16 Jan‐17 Jul‐17 Jan‐18 Jul‐18 Jan‐19 Jul‐19 Jan‐20 Jul‐20 Jan‐21 Jul‐21

USA

Japan

Eurozone

World

China

‐2%

0%

2%

4%

6%

8%

10%

12%

Jan‐16 Jul‐16 Jan‐17 Jul‐17 Jan‐18 Jul‐18

Global trade (3mma y/y growth)

Exportvolumes

Containertraffic


China supply-side reform and tightening environmental policy have driven structural change

Supply side reform

Policies focused on restoring profitability and reducing debt

Unprecedented steel and aluminium capacity reductions

Limiting future capacity growth

Environmental policies

Environmental protection marked as a top three domestic

policy priority

Additional ultra-low emissions standards to apply to industry by

2025

Driving structural change

Improved productivity and profitability of Chinese steel

industry

Strong demand for high quality, driving structural iron ore

premiums

Improved fundamentals for global aluminium industry


China’s supply-side reform and environmental policies have created a more efficient industry…

1,270

1,010 980

65

55

140

30

800850900950

1,0001,0501,1001,1501,2001,2501,300

2015capacity

2016reductions

2017reductions

IF capacity 2017capacity

2018reductions

2018capacity

Steel mill rationalisation programme has removed significant capacity...

...driving record steel mill utilisation rates...

Source: China Metallurgical Industry Planning and Research Institute (MPI), OECD, WSA, Rio Tinto, Mysteel, CISA, China National Bureau of Statistics

...and higher steel prices

…while steel production has remained robust...

Mill

ion

tonn

es p

er d

ay

Ste

el C

apac

ity m

illio

n to

nnes

$ pe

r to

nne

50%

55%

60%

65%

70%

75%

80%

85%

0

200

400

600

800

1,000

1,200

1,400

2015 2016 2017 2018

Ste

el C

apac

ity m

illio

n to

nnes

Capacity U

tilisation %

1.5

1.6

1.7

1.8

1.9

2.0

2.1

2015 2016 2017 2018

CISA member mill daily crude steel output

200

300

400

500

600

700

800

Jan 15 Jan 16 Jan 17 Jan 18 Jan 19

Hot rolled coil Rebar


...causing a structural shift towards productivity

Improvement in Chinese steel industry profitability... ... and the focus on productivity caused structural widening in iron ore premiums

Platts 62% Metal Bulletin 58%

Mill

mar

gin

$ pe

r to

nne

% relativity to 62% index

-50

0

50

100

150

200

250

300

2015 2016 2017 2018 201950%

60%

70%

80%

90%

100%

Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19


China’s supply-side reforms are here to stay and will continue to be driven by tightening environmental policy

Provincial BF capacity > 30Mt

Share of small BF capacity (<1200M3) >50%

15Mt < Provincial BF capacity < 30Mt

Provincial BF capacity < 15Mt

Southern and Coastal regions destination for replacement steel capacity – well located for seaborne iron ore …

Environmentally sensitive areas (ESA), where steel capacity required to decline

Capacity new and replacement area

Source: China Metallurgical Industry Planning and Research Institute (MPI), Rio Tinto

50%

28%

11%

21%

35%

44%

16%18%

22%

13% 19% 23%

400-1200m3

1200-2000m3

2020E2017

>3000m3

2025E

2000-3000m3

... and replacement capacity will be larger and cleaner blast furnaces

BF

siz

e di

strib

utio

n


Impact of China policy changes on aluminium capacity

3.8 Mtpa of illegal capacity removed in 2017 and 2018

‒ ~9% of total Chinese aluminium capacity

‒ Potential for some restarts

0.8 Mtpa of capacity cuts from environmental winter policy in 2017 and 2018 and 0.5 Mtpa in 2018 and 2019

ROW smelters expected to ramp up activities and restart idled capacity as a result of the two policies

‒ Rio Tinto well placed with low carbon brownfield expansion potential

Shandong

Inner Mongolia

Xinjiang

Supply-side reform aluminium capacity cuts by province

2.5 Mtpa

0.8 Mtpa

0.4 Mtpa

Others

0.1 Mtpa

Source: Baiinfo, Aladdiny, Rio Tinto Market Analysis


Strong global aluminium demand with Chinese production at a turning point

0

2

4

6

8

10

12

14

16

18

0

10

20

30

40

50

60

70

80

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Ex-China production China production Stocks (right axis)

Primary aluminium production and stocks

Weeks of consumption

Million tonnes

Source: Rio Tinto, CRU Group

Aluminium demand growth ~3-4% p.a. next 5 years

Strict enforcement of Chinese capacity control and winter cut regulations in smelting and alumina:

‒ Illegal capacity cuts: aluminium ~3.8Mt, bauxite ~10Mt

‒ Winter cuts capacity: aluminium ~0.5Mt, alumina ~4.4Mt in 2018 and 2019

China expected to be broadly balanced in aluminium in medium to long-term

Seaborne bauxite demand driven mainly by China import requirements:

‒ Aluminium/alumina demand

‒ Domestic bauxite quality deteriorating


Increasing production in bauxite and alumina

Bauxite production Million tonnes

Bauxite: Maximising value from existing operations

‒ Production track record: Weipa 5% p.a. / Gove 11% p.a .

‒ Optimising grade allocation to maximise customer ViU

Alumina: maximising use of installed capacity

‒ Production track record: ~3% p.a. since 2012

‒ E.g. : 5% yield increase at Yarwun driven by low-capital intensity process improvements

39.442.5 41.9 43.7

47.750.8

201620132012 20182014 20172015

50.4+5%

0

5

10

15

20

25

30

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Base Supply Primary Demand


Rio Tinto well placed to benefit from copper’s attractive long-term fundamentals

Copper supply/demand (million tonnes)

Deficits expected in 2019 and 2020 as annual copper mine supply growth over this period is less than half the volume of the previous four years

Rio Tinto copper growth to be delivered into a supply deficient market

Further demand growth expected in China and other emerging markets

Consumer goods and new uses to provide upside

– electric vehicles

– renewable energy

Source: Wood Mackenzie Long Term Q4 2018 and Short Term Outlook February 2019.

DeficitSurplus

Iron Ore

39

Iron Orecontinued delivery from a world-class asset

Operating metrics2018 2017

comparison2019

guidance

Average realised price* $62.8 / t - 3%

Shipments (100% basis) 338mt + 2% 338-350Mt

Operating cost / t** $13.3 / t - 0% $13-14 / t

Financial metrics ($bn)

Revenue 18.5 + 1%

EBITDA 11.3 - 2%

Margin (FOB) 68% + 0pp

Operating cash flow 8.3 - 2%

Sustaining capex 0.9 + 67% ~1.0

Replacement and growth capex 0.4 - 43%

ROCE 42% + 1pp

* Dry metric tonne, FOB basis | ** Unit costs are based on operating costs included in EBITDA and exclude royalties (state and third party), sustaining capital, tax and interest ©2019, Rio Tinto, All Rights Reserved

Shipments increased 2%

Maintained EBITDA margin

Strong demand for our 62% Pilbara Blend product

Full deployment of AutoHaulTM

in December 2018

Koodaideri Phase 1 approved for $2.6 billion

Iron Ore


2018 cash unit cost of $13.3/t ($0.1/t lower than 2017)

Focus on maintaining strong EBITDA margins (68% in 2018, in line with 2017)

Productivity initiatives and weakening Australian dollar in 2018 offset:

– Steeper hauls

– Higher diesel, labour and maintenance costs

Average realised FOB price of $57.8 per wet metric tonne ($62.8 per dry metric tonne)

2019 guidance for shipments from the Pilbara remains unchanged at 338-350Mt, subject to market conditions and any weather constraints

Pilbara cash unit cost $ per tonne

20.4

18.7

16.2

13.8 14.313.1

13.813.0 13.4 13.2

H12014

H22014

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

maintaining our competitive advantage

Iron Ore


11,520

11,008 11,325

142 321 27

(479) (105) (70)(31)

8,000

10,000

12,000

2017 underlyingEBITDA

Price Exchange rates Energy Inflation Flexed2017 underlying

EBITDA

Volumes Cash costreductions

Other 2018 underlyingEBITDA

– Our Pilbara mines produced 338 million tonnes in 2018 (282 million tonnes as Rio Tinto’s share) – 2% higher than 2017. This increase came from expanded mines and minimal weather interruptions compared to 2017

– Pilbara FOB EBITDA margins of 68% achieved in 2018 (68% in 2017)

– Pilbara cash unit costs were $13.3 per tonne in 2018, compared to $13.4 per tonne in 2017

– Pilbara iron ore revenues includes $1.7 billion of freight in 2018 compared to $1.5 billion in 2017

– Approximately 68% of sales in 2018 were priced with reference to the current month average, 17% with reference to the prior quarter’s average index lagged by one month, 5% with reference to the current quarter average and 10% were sold on the spot market

– Approximately 32% of our sales were made on an FOB basis with the remainder sold including freight

Underlying EBITDA 2017 vs 2018$ million

lower prices partly offset by higher volumes


Our value over volume strategy maximises free cash flow

Unit cost

Productivity

Innovation and Technology

Sustaining

Replacement

Growth

Maximises free cash flow through the cycle

Value over Volume Strategy Foundations

Exclusive fully integrated system

Highly valued product suite and significant resources

Quality people and partners driving innovation

Capex

Price impact of incremental tonnes

Protecting quality

Delivering right tonnes to customers

who value them

Revenue

Operating cost


World-class assets, fully integrated and agile network

16 Mines

1,700 Rail (km)

4 Port terminals

4 Power stations

>370 Haul trucks

95 Autonomous haul trucks

55 Production drills

11 Autonomous drills

>200 Locomotives

> 100 Global customers

Point SamsonWickham

Roebourne

Tom Price

Paraburdoo

Newman

Karratha

Dampier

MESA A

MESA J

CAPE LAMBERT A & B

WEST ANGELAS

YANDICOOGINA

MARANDOOWESTERN TURNER SYNCLINE

TOM PRICE

BROCKMAN 4

BROCKMAN 2

NAMMULDI

SILVERGRASS

EAST INTERCOURSE ISLAND

PARKER POINT

CHANNAR

PARABURDOO

EASTERN RANGE

HOPE DOWNS 1

HOPE DOWNS 4

KOODAIDERI

CHANNAR MINING JV (60%)

BAO-HI RANGES JV (54%)

ROBE RIVER MINING JV (53%)

HOPE DOWNS JV (50%)

HAMERSLEY IRON (100%)

UNDEVELOPED PROJECT (100%)

Pannawonica

0

50

100

150

200

250

300

350

400

0

5,000

10,000

15,000

20,000

25,000

2013 2014 2015 2016 2017 2018

Mill

ion

tonn

es (

dry)

Measured Indicated Inferred Proved Probable


Highly valued product suite, sustained by significant resources

Large mineral resources support system optionality

Ore reserves maintained in line with depletion

Maintaining evaluation drilling and resource development programmes

Pilbara resources, reserves1 and production

1 Refer to the statements supporting these resource and reserve estimates set out on Slide 2

Million tonnes (w

et)

Mineral resources (LHS) Ore Reserves (LHS), Production (RHS)


Best in class quality delivered through system blending

West Angelas

Hope Downs 1

Nammuldi

Marandoo

Brockman 4

Mt Tom Price

Paraburdoo

Hope Downs 4

Brockman 2

Yandicoogina

Mesa J

Mesa AFuture system capacity

Products

HIY

PBL

PBF

PBL

PBF

PBL

PBF

Pisolite Marra Mamba Brockman

Port Terminals

Parker Point

EII

CapeLambert

B

RVL

RVF

HIY

CapeLambert

ASilvergrass

Alumina

PhosphorusSilica

Fe


Pilbara Blend is the world’s most recognised brand of iron ore

We remove variability for our customers through our blending process

Ship Mine/Rail

Alumina

PhosphorusSilica

Fe

Pilbara Blend Fines is main reference product for the 62% indices

70%77%

81%

2015 2016 2017

Pilbara Blend Fines

Pricing

Reference product for the 62% indices

Most traded physical iron ore product

Strengths

Valued for its liquidity, reliability

Market position

Base load sinter blend in China

Pricing

Aligned to 62% fines index plus lump premium

Strengths

Avoids the costs of sintering which will increase with emissions legislation

Market position

Most widely available lump product

In demand across most markets and emerging South East Asia

Pilbara Blend Lump

Product quality variance from mean

Source: Rio Tinto, Platts

Sha

re o

f PB

F v

olum

e in

rep

orte

d 62

% F

e tr

ansa

ctio

ns


Yandicoogina, Robe Valley products are placed with customers who value them most

2%

Contract

Other markets

Japan

China Spot

Long Term Contracts

Total tonnes of Yandicoogina Fines, Robe Valley Fines and Robe Valley lump

Yandicoogina FinesPricing

Priced very closelyto the 62% index

Strengths

58% Fe but calcines to high Fe Sinter

Low in phosphorusand alumina

Market position

Base load in blendsin East Asia and Southern China

Pricing

Priced against 62% index based on negotiated relativities

Strengths

Coarse sizing aids sinter granulationLow phosphorus

Market position

Coastal China mills and producers of niche steel in North China

Suitable for steel mills whose basic oxygen furnace (BOF) is the bottleneck

Robe Valley FinesPricing

Priced against 62% index based on negotiated relativities

Strengths

Low phosphorus

Market position

Producers of niche steel in Japan and Coastal China

Suitable for steel mills whose BOF is the bottleneck

Robe Valley Lump

Market

Source: Rio Tinto

20%

98%41%

2%

39%


Multiple low-cost, value-accretive capital options

Koodaideri

-30

-

30

60

90

120

2017

Approved replacement

Bubble size indicates capacity

Sustaining capex of ~$1 billion per year for the next three years

Pilbara replacement mines capital includes West Angelas, Robe Valley and Koodaideri development from 2019

Koodaideri underpins Pilbara Blend, low cost operations and capacity optionality

Post-Koodaideri replacement options are expected to be lower capital intensity and will leverage off existing infrastructure

Unapproved replacement

Pilbara development options$ per tonne installed capital intensity


Productivity options to continue to deliver cash benefits

Best PracticePartnering

with SuppliersData & Technology Automation

Yard improvements and scheduling

Dumping improvements

Track maintenance

Consist reliability

Asset health monitoring Ore sensitive dumper settings

Debottlenecking opportunities

Effective equipment utilisation and maintenance

optimisation

Mine planning optimisation

Autonomous trucks (including retro-fit)

Autonomous drills

AutoHaul®

Roll by rail detection

Operations Centre optimisation

Payload optimisation

Explosives charging improvements

Track maintenance strategy

Next generation train control

Brake car elimination

Inter-machine control loops

Productivity monitoring apps

Automated inspections

Iron Ore to deliver

additional free cash flow of

~$0.5 billion per year from 2021


Priority remains to optimise infrastructure capacity and build flexibility

Future system capacityCurrent system capacity

Mt/a

Mt/aMt/a

~360*

~330-340

~360

Building rail capacity to provide dynamic flexibility

Mine capacity of ~360Mtpa, with Silvergrass fully ramped up and productivity gains

2019 shipments guidance is 338 – 350Mt

Note (*) once Silvergrass fully ramped up

Rail and mine capacity expected to match nameplate port capacity by the end of 2019

Market driven to meet customer demand

Optimise and test port capacity


Further opportunity exists to optimise mines

Mines Train Load Out

Mine & Haul Process Stockpile & Load out

Plant

Asset Productivity(Effective utilisation, rates, yield)

Technology and automation(Process control loops)

Asset Reliability(Scheduled loss, unscheduled loss)

Equipment Reliability(Mean time between failure, availability)

Tonnes per car(Dynamic tuning for mass and volume)

Train load time(Reclaimer efficiency, stockpile management,

control system improvements)

Equipment Productivity(Effective utilisation, payload, truck speed)

Technology and automation(AHS, ADS, MAS)

Technology and automation(Automated train loading, expert control systems)


Optimising rail capacity and improving flexibility

Mainline Yard and Port (Dumper)Train Load Out

Stockpile & Load out

Ore car-dumping

Mainline network operating strategy (Network operation, common tactics,

reduced delays and stoppages)

Reduced dump cycle times (Control system machine learning and

analytics, interface management)

Yard operations (Optimised scheduling, mobility solution,

RFID for rolling stock management)

Train maintenance (Automated condition monitoring, further

automation in workshops)

Rail track maintenance (Optimum speed, productivity and reliability)

Autohaul®(Optimised speed, advanced signalling, reducing

variability)

Tonnes per car(Dynamic tuning for mass and volume)

Train load time(Reclaimer efficiency, stockpile management,

control system improvements)

Technology and automation(Automated train loading, expert control systems)

Rail


AutoHaul® completed in 2018

>3millionkilometrescompleted in autonomous mode since deployment

~6%Speed improvementin autonomous mode

World’s first fully-autonomous, heavy-haul rail network completed and deployed in December 2018

Regulator approval received in May 2018

Full implementation of autonomous programme in December 2018

Aluminium

55

Aluminiumstable operations squeezed by raw material costs


comparison2019

guidance

Average aluminium price* $2,470 / t + 11%

Average alumina price*** $474 / t + 34%

Production – bauxite 50.4mt - 1% 56-59Mt

Production – alumina 8.0Mt - 2% 8.1-8.4Mt

Production – aluminium 3.5Mt - 3% 3.2-3.4Mt

Canadian smelters –hot metal cash costs*****

$1,533 / t + 15% Refer to p41 of results presentation


Revenue 12.2 + 11%

EBITDA 3.1 - 10%

Margin (integrated operations) 32% - 3pp


Sustaining capex 0.8 + 33%

Replacement and growth capex 0.9 + 32%

ROCE 8% - 2pp


1% primary metal productivity creep****

Raw material and energy inflation impacted EBITDA by $0.5 billion

Volatility in markets from tariffs and sanctions: – increase in mid-west premium

effectively offset tariff increase– Alumina market upside capped

by legacy contracts - $0.5 billion

Amrun completed ahead of schedule and below budget

Completed disposals:– Dunkerque Aluminium divestment

completed for $0.4 billion, net of completion adjustments

– Surplus land at Kitimat for $0.6 billion * Realised price, including VAP and mid-west premium | ** Realised price, dry metric tonne, FOB basis

*** Platts Alumina PAX FOB Australia | **** Excluding Becancour and Dunkerque smelters***** Operating costs defined as hot metal cash costs for the Canadian smelters (alumina at market price)

Aluminium


– Aluminium underlying EBITDA of $3.1 billion declined by 10% compared with 2017. Stronger prices in H1 2018 were more than outweighed by the impact of legacy alumina sales contracts, raw material cost inflation and lower aluminium volumes

– The average realised price per tonne averaged $2,470 in 2018 (2017: $2,231)

– The 2018 cash LME aluminium price averaged $2,110 per tonne, an increase of 7% on 2017

– The mid-West premium rose 111% to $419/tonne (2017: $199/tonne), driven by the 10% US tariff implemented on 1 June which is included in our operating costs

– VAP represented 57% of the primary metal we sold (2017: 57%) and generated attractive product premiums averaging $224/tonne of VAP sold (2017: $221/tonne)

– EBITDA margins were 32% in 2018, compared to 35% in 2017

– Bauxite revenues includes $371 million of freight in 2018 ($266 million in 2017)

– In 2018, we sold the Dunkerque aluminium smelter in France to Liberty House for $0.4 billion, net of completion adjustments, and a wharf and land in Kitimat, British Columbia to LNG Canada for $0.6 billion

higher prices and volumes offset by raw material cost headwinds


3,423 3,616

3,095 283

136 185

(132) (94)(491)

(215)

0

1,000

2,000

3,000

4,000

2017 underlyingEBITDA

Price Exchange rates Energy Inflation Flexed2017 underlying

EBITDA

Volumes& Mix

Cash costreductions

Other 2018 underlyingEBITDA


Strategy for outperformance through the cycle

Bauxite Aluminium

Competitive advantage Industry-leading bauxite positionSize, quality, proximity to markets

Low first quartile costLow-carbon, low-cost power

Strategic focus Market-paced growth Strong cash flow generation

Key enablers

Competitive alumina supply to our smelters

Commercial excellence from mine to market

Strategic goal Leading performance through the cycle


We will maintain our low-cost position

Raw materials & energy lifting weighted average production costs by 12% in real terms vs. 2013

Costs pressures expected to ease in 2019

Rio Tinto well placed

‒ Balanced alumina

‒ Self-generated hydro power

‒ 90% own anode production

‒ 55% own calcination capacity for Canadian assets

‒ Advantaged bauxite position: proximity to China, supply reliability, high alumina, expandable resource

Source: CRU and internal analysis. Aluminium costs include hot metal and cold metal costs net of market and product premiums. Commodity price increases calculated between 1 January 2017 and December 2018

2017 2018

Commodity Index (base 2016 Jan)

Aluminium LME +31%

CPC (US Gulf) +76%

Caustic (NE Asia) +44%

CTP (N. America) +94%

Aluminium cost curve (2019 $/t)

1,000

2,000

3,000

0% 25% 50% 75% 100%

2013 2018 Rio Tinto weighted-average

201650

100

150

200

250

300

05/01/2016 04/01/2017 04/01/2018


Unrivalled assets in the Saguenay, Quebec

* Capacity per pages 286 and 287 of 2018 Annual Report





Aluminium to deliver additional free cash flow of ~$0.5 billion per year from 2021

Automated anode change

Autonomous metal / anode transport

Bauxite

Alumina

Aluminium

Creep

Casthouse utilisation

Fixed cost compression Advanced process control

Sweetening

Bauxite mix optimisation

Fixed cost compression

Creep & asset utilisation Energy optimisation

Flocculation & additives technology

Predictive analytics & optimisation in real time

Advanced process control

Creep Rail debottlenecking & payload optimisation

Bauxite integrated operations centre

Equipment utilisation

Mine planning optimisation Shipping optimisation

Predictive analytics & optimisation in real-time

Bauxite grade optimisation

Aluminium Operations Centre - predictive analytics & optimisation in real-time


Bauxite: asset performance drives productivity

Gove

Weipa

Debottlenecking the value chain through data analytics (constraint identification / elimination)

‒ Processing system rates increases for minimal capital expenditure at Gove and Weipa

‒ Increased HME productivity with increases in fleet payload and utilisation

Mine to Market optimisation across the value chain: volume and product quality

‒ Integrated Operations Centre allowing real time decision making on ore grade, shipping

Performance improvements: 2018 YTD vs 2016

+7% +8%

+43%+23%

Plant rateHaul truck utilization


Smelters creeping at 1% per annum, double industry average

Long history of cutting-edge smelter productivity

‒ Industry-leading technology, expertise and innovation

‒ Creep innovation the engine of technology productivity

Low capital intensity, high-return investments

‒ Productivity growth on installed asset base

Canadian Brownfield growth options

‒ Alma, AP60… value over volume

Amperage creeping history

20182008

+12%

Alma

20182008

+11%

20182008

+11%

Grande Baie Laterriere

FFF


Enhancing margins through VAP

Value added product (VAP) enhances margins

‒ VAP 51% of portfolio, targeting >63%

‒ Additional revenue $223 per tonne

‒ VAP margin over remelt improvement of $0.4bn by 2022

Further scope to grow margins through commercial excellence

‒ Customer partnerships: North American automotive light-weighting

‒ Market differentiation

‒ RenewAlTM low CO2 aluminium

‒ Proximity and reliability

‒ Technology and product development

Rio Tinto VAP product mix1

Slab37%

Billet27%

Foundry22%

High Purity7%

Rod & Other7%

201 265 186 191

334

Slab Billet Foundry High Purity Rod & Others

Rio Tinto VAP product premiums$ per tonne


Amrun ramping up in 2019

Tier 1 investment with low market risks

• 23 Mt total capacity: replaces East Weipa (13 Mt), captures China market growth (10 Mt)

• First quartile cost curve position, low technical risks

First shipment in Q4 2018 with full ramp-up in 2019

Range of expansion options that can be developed in line with market demand


Section 232 impact

0.7

2.3

0.8

0.7

1.1

2017

5.6

Other imports

Middle East

US production

Canada

Russia

US total primary metal consumption (Mt)

Tariff providing some support to restarts: 0.6 Mt of capacity restarts announced1

• Of which ~0.5 Mt restarted or in progress• Additional 0.26 Mt idle, could potentially restart2

• New capacity unlikely

US primary metal demand expected to grow by 0.3 Mtpa from 2017 to 2020

Metal being priced from Canada at Midwest Premium duty-paid, which reflects 10% tariff3 from 1 June 2018

1. Hawesville (+150kt), New Madrid (190kt), Warrick (270kt)2. Mount Holly (+120kt), Wenatchee (140kt)3. Segmented financial results: Primary Metal revenue will reflect higher realised price incorporating higher LME, higher mid-west premium and increased VAP

premium, with EBITDA reflecting operating costs that include an additional cost from the 10% tariff on sales to the US from 1 June 2018.


Relevance of Alunorte curtailment, Rusal sanctions and alumina legacy contracts

Total 2017 Alumina market 133 Mt, of which 60 Mt outside China

• China: net importer 2.9Mt in 2017, net exporter estimate 0.2Mt in 2018

Alunorte: 2017 production: 6.38 Mt (~11% of ex-China volumes)

- ~60% used for Hydro’s own needs (Norway, Albras, Qatalum, Alouette, etc.)

- 50% curtailed March 1, 2018 (RT covered with volume from Pacific)

Rusal:

• Aluminium: supplies 15% of world’s demand ex-China

- 2017: supplied 0. 7 Mt to US (13% of demand), 1.6 Mt to Europe ex-Russia (19% of demand)

• Alumina: accounts for 6.7 Mtpa, i.e. 13% of ex-China market

- 3.4 Mtpa outside Russia: Aughinish (1.9 Mtpa), Ewarton (0.65 Mtpa), QAL (0.8 Mtpa1)

Legacy alumina contracts

• Supply of ~2.2Mtpa, LME-linked, with bulk of volume with ending dates between 2023 and 2030 (~30% rolled off post-2023).

• $460m negative impact in 2018, based on average prices of $2,110/t for LME and $474/t for Alumina over the year.

• ~$100m negative EBITDA impact for every 10% increase in Alumina index price, ~$60M negative impact for 10% decrease in Aluminium LMEindex. The opposite impact applies if index pricing moves in the other direction.

1. 20% ownership


Modelling Aluminium EBITDA

H1 raw material prices are purchase prices. Due to contractual and inventory time lags, a change in the value of a raw material index will not lead to an EBITDA impact before 3 to 6 months, depending on the raw material and on the specific contractual arrangements.

Note: The sensitivities give the estimated effect on underlying EBITDA assuming that each individual price or exchange rate moved in isolation. The relationship between currencies and commodity prices is a complex one and movements in exchange rates can affect movements in commodity prices and vice versa. The exchange rate sensitivities include the effect on operating costs but exclude the effect of revaluation of foreign currency working capital.

EBITDA sensitivityH1 2018

average price/rate

Impact on FY 2018 underlying EBITDA of 10% price/rate change

$m

Estimated impact forfull year 2018 vs 2017

$m

Aluminium $2,209/t 887

Caustic soda (FOB) $587/t 31

Petroleum coke (FOB) $440/t 32 ~$400m ($229m at H1 18)

Green coke (FOB) $152/t 15

Pitch (FOB) $801/t 16

Coal $104/t 19 ~$100m ($50m at H1 18)

A$ 77USc 236

C$ 78USc 119

Modelling aluminium costs


($/t) Impact a $100/t change in each of the input costs below will

have on our 2018 Canadian smelting unit cash cost of $1,533/t

Alumina (FOB) 191

Green petroleum coke (FOB) 34

Calcined petroleum coke (FOB) 30

Coal tar pitch (FOB) 7

Canadian* smelting unit cash** cost sensitivity

* Canadian smelters include all fully-owned smelters in Canada (Alma, AP60, Arvida, Grande-Baie, Kitimat, and Laterrière), as well as Rio Tinto’s share of the Becancour and Alouettesmelters | ** The smelting unit cash costs refer to all costs which have been incurred before casting, excluding depreciation but including corporate allocations and with alumina at market price, to produce one metric tonne of primary aluminium.

Copper & Diamonds

70

Copper & Diamonds strong operational performance


comparison2019

guidance

Copper price 297 c/lb + 6%

Production – mined copper 634kt + 33% 550-600kt

Production – refined copper 275kt + 39% 220-250kt

Production – diamonds 18.4Mct - 15% 15-17Mct

Unit cost* 109 c/lb - 21% 110-120 c/lb


Revenue 6.5 + 34%

EBITDA 2.8 + 46%

Margin 43% + 4pp

Operating cash flow 2.1 + 25%

Sustaining capex 0.3 + 32%


ROCE 9% + 7pp


Improved performance at Escondida– Resulting in $786 million

of dividends received

Significant productivity improvements delivered at Kennecott

OT underground project – Progressed well in 2018

– Signed the Power Agreement with the Government of Mongolia

– Reviewing the existing schedule

Successful divestment of Grasberg for $3.5 billion

Completion of the A21 pipe at Diavik

* Unit costs for Kennecott, OT and Escondida utilises the C1 unit cost calculation where Rio Tinto has chosen Adjusted Operating Costs as the appropriate cost definition. C1 costs are direct costs incurred in mining and processing, plus site G&A, freight and realisation and selling costs. Any by-product revenue is credited against costs at this stage

Copper & Diamonds


1,904 1,780

2,776

1 356

26 316

260 65

(25) (52) (48)(27)

0

1,000

2,000

3,000


Price Exchangerates

Energy Inflation Flexed2017

underlyingEBITDA


Exploration &evaluation

Escondidastrike

Grasbergproduction

Other 2018underlyingEBITDA

– Underlying EBITDA of $2.8 billion was 46% higher than 2017. Our strong performance was primarily driven by increased volumes of copper and gold, lower costs linked to productivity improvements at our managed operations, and Escondida running at full capacity after the 2017 strike

– Copper & Diamonds generated $2.1 billion in cash from operating activities, a 25% increase on 2017. This included $786 million of dividends from Escondida. Working capital, productivity and cost management initiatives also contributed to favourable cash flows

– Average copper prices increased 6% to 297 US cents per pound, and the average gold price rose 1% to $1,269 per ounce compared with 2017. Price changes, including the effects of provisional pricing movements, resulted in a $25 million decrease in underlying EBITDA compared with 2017

– At 31 December 2018, the Group had an estimated 240 million pounds of copper sales that were provisionally priced at 277 cents per pound. The final price of these sales will be determined during the first half of 2019. This compares with 250 million pounds of open shipments at 31 December 2017, provisionally priced at 304 cents per pound

strong operational performance



Sector-leading attributes

Robust long-term demand

Constrained supply

Deficit expected towards end of decade

Long-life, low-cost, expandable assets

Interests in Tier 1 copper mines

Productivity & processing optimisation at Kennecott

OT process control innovations and blasting optimisation

Broad customer base for underground volumes at Oyu Tolgoi

Medium-term growth potential from Oyu Tolgoi

Longer-dated optionality at Resolution

Exploration pipeline, including Winu

Attractive industry fundamentals

Multiple, stronggrowth options

Leading mine to market productivity

Large, high-qualityresources


Strategy to deliver further value

Develop our people & partnerships

Deliver medium-term growth and progress long-term options

Maximise value from existing operations

Unlock additional value through productivity initiatives





Effective equipment utilisation and maintenance optimisation

(MTBF)

Ore grade distribution

Payload optimisation

Mining

Resources

Copper & Diamonds to deliver additional free cash flow of ~$0.15 billion per year from 2021

Increase concentrator throughput

Improved feed characterisation

Mine planning optimisation

Light- weighting of truck beds

Planning and schedule

Shorter haul times

Integrated operations

Tolling of concentrate for value

Maintenance tactics and centralisation of maintenance

Increase mining rates in South wall pushback

Increase metal recovery from East Wall

Processing


Kennecott – a stronger contributor to cash

Asset optimisation

– Maximise smelter and refinery productivity by blending third-party concentrate

South wall push back underpins over a decade of high-quality cash flow

Returns to higher grades from 2021

Operational excellence to maximise value

– Overall improvement of ~5% in truck productivity equates to ~12 mt additional material moved in 2017


Oyu Tolgoi - the leading Tier 1 copper project

Highest quality, major copper development globally

Average underground copper grade of 1.66% Cu and 0.35g/t Au1

> 20% IRR

$5.3 billion approved capex, first quartile opex

Productivity improvement in both project development & operations

1 Refer to the statements supporting these reserve grades and production targets set out on slide 2 of this presentation


Non-managed interest in Escondida

Escondida

Strong cash flows underpin dividends of $786 million in 2018

No additional significant capex required for near future

Los Colorados extension delivers incremental mill capacity of 100ktpd1

Desalination plant fully commissioned and operating well

1 Per BHP 2017 Annual Report | 2 Metal strip may be adjusted for various events over time


Future optionality for the Copper business

ExplorationResolution

Continued focus on copper exploration, primarily the Americas

~60% Rio Tinto exploration spend is focused on copper

16 copper exploration projects ongoing

La Granja regional exploration

Indicated and inferred mineral resource of 1,787Mt @ 1.53% Cu1

Continuing to advance permitting process. Predictable timetable and pathway for positive Record of Decision

Strengthening our licence to operate

Complete permitting by 2020, pre-feasibility study by 2021

1 Refer to the statements supporting these resource grades set out on slide 2 of this presentation


Delivering medium-term growth and progressing long-term options

Supply surplus Supply deficit

2017 2030

Kennecott South push back underpins margin & volume increase

Oyu Tolgoi HNL1 development to first production Ramp-up copper production

Escondida LCE & EWS1 ~1.2 Mtpa average production capacity2

Resolution Project permitting & continued studiesPotential project execution

Exploration Sustained & committed programme with an emphasis on Australia and the Americas

2018

1 Los Colorados Concentrator Extension and Escondida Water Supply. 2 BHP Copper Briefing and Chilean site tour - http://www.bhpbilliton.com/investors/reports/copper-briefing-and-chilean-site-tour,released by BHP on 1 December 2015.


Developing our people and our partnerships

Working with our partners to improve safety

Strengthening indigenous relationships

Consulting with communities

Building long-term sustainable relationships at Oyu Tolgoi

– 94% local employment

– Best in class for water efficiency – 86% of water recycled

– 69% of total procurement spend is national suppliers and 75% of total spend is in-country

Energy & Minerals

82

Energy & Minerals*a challenging year


comparison2019

guidance

IOC pellets $114 / t + 5%

TiO2** $647 / t + 18%

Production – IOC 9.0mt - 20% 11.3-12.3Mt

Production – TiO2 1.1Mt - 15% 1.2-1.4Mt

Production – Borates 0.5Mt - 1% 0.5Mt


Revenue 4.7 - 5%

EBITDA 1.3 - 18%

Margin 28% - 4pp


Sustaining capex 0.3 - 6%


ROCE 8% -2pp

* All numbers exclude coal operations which were disposed | ** Excluding Upgraded Slag (UGS)

Production instability at RTIT an opportunity to improve in 2019

– 2 furnaces currently being rebuilt at Rio Tinto Fer et Titane

Portfolio simplification through divestments of coking coal and Rössing Uranium

Full recovery from strike at IOC


Energy & Minerals


2,803 3,062

2,193

384 445

(2)(31) (92) (5)

(201)(718)

(339) (51)

0

1,000

2,000

3,000

4,000


Price Exchangerates

Energy Inflation Flexed2017

underlyingEBITDA


Coal gains ondisposal and

royalty

Coal disposal One-offs Other 2018underlyingEBITDA

higher prices offset by coal disposal and one-off disruptions

– Underlying EBITDA of $2.2 billion was 22% lower than 2017. Excluding the entire contribution from coal in both years, 2018 EBITDA of $1.3 billion was 18% lower than the 2017 comparative of $1.6 billion

– Coal EBITDA included a $278 million gain from the sales of the Winchester South and Valeria coal development projects and a $167 million pre-tax gain from the revaluation of a royalty receivable arising from the disposal of the Mount Pleasant coal project in 2016

– Net operating cash flows of $1.3 billion were 35% lower than 2017

– We completed the sale of the Kestrel and Hail Creek coking coal mines and the Valeria coal and Winchester South development projects by 1 August 2018 for headline proceeds of $4.15 billion, and expect to pay ~$0.9 billion in tax on these disposals to the Australian Taxation Office in H1 2019

– Excluding the entire contribution from coal in both years, 2018 net operating cash flows of $0.9 billion was 19% lower than the 2017 comparative of $1.1 billion.



Maximising value from the Energy & Minerals portfolio

- Safety is our first priority

- A lean, scalable operating model, running cash-focused businesses

- Value over volume operating philosophy supported by a global customer and market-oriented approach

- Ongoing cost and productivity improvements continuing to deliver cash flow

- Energy & Minerals is the incubator for new commodities


A lean, scalable operating model running cash-focused businesses

Borates

Commercial excellence driven by market insight

Creating new demand through technical

expertise

Competitiveadvantages

Integrated mine-to-market business model

Strategicfocus

32%

EBITDA

margin

2018margins

IOC

Large ore reserve

Installed capital base

Premium quality pellets

Cost and productivity improvements

37%

EBITDA

margin

TiO2

Wide range of TiO2

feedstock options

Significant co-product contributions

Value over volume operating philosophy

29%

EBITDA

margin

The Energy & Minerals Product Group also includes Dampier Salt Limited and Rio Tinto Uranium.

Multiple end products including construction, agriculture & consumer

products

Key customer segmentsPremium quality pellets and

concentrates to steel producers

Pigment producers, ceramics and titanium

industry


Borates

Market estimates for borates

Global borates production

'000 tonnes B2O3

0

500

1000

1500

2000

2500

2012 2013 2014 2015 2016 2017 2018F

~4% CAGR

32%

38%

Speciality chemical business with a Tier 1 orebody (Boron) and refining facilities in the US and Europe.

Global marketer with integrated mine-to-market capabilities and a broad suite of refined borate products aligned with addressing customer needs under three commercial pillars:

• Agriculture and the use of refined boron as an essential micronutrient;

• Energy efficiency;

• Urbanisation

Regional and end-use segmentation and contracting positions support commercial performance and production decisions

On-going cost and productivity improvements:• Increasing processing plant productivity,

• Improving supply chain efficiency,

• Ensuring mining pit shell & sequence optimised

RTB’s share of sales in 5-mol

RTB’s share of sales in boric acid

3% Anticipated annual demand growth over the next five years, led by insulation manufacturing and agricultural, biocidal, fire retardancy and glass applications

2.09 Million tonnes B2O3 of borates sold in 2018


Iron Ore Company of CanadaIron ore pellets/ concentrate productionMillion tonnes, Rio Tinto share

0

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016 2017 2018*

* Full year guidance (9.0 to 10.1mt)

Operations Centre Pilot

Cost and productivity improvements facilitating business transformation:

• Increasing haul truck utilisation by improving shift changes;

• Increasing average payload for haul trucks.

Integrated Operations Centre successfully piloted during 2016.

Full mining and processing operations oversight now in place:

• 24/7 “Monitor & Advise” production and product quality oversight;

• Additional cost and productivity potential with move to “Monitor & Command”.

Development of new Wabush 3 open pit


Iron & Titanium

TiO2 production1

Million tonnes, Rio Tinto share

TiO2 feedstock demand and supply‘000 TiO2 units

34%

RT share of 2018 sales

40%

High-grade chloride

High-grade sulphate

~3% CAGR~3% CAGR

Source: TZMI

0.00

0.50

1.00

1.50

2.00

2011 2012 2013 2014 2015 2016 2017 2018 2019*

* 2019 guidance 1.2 to 1.4mt1 Excluding rutile and external ilmenite sales

~3% CAGR

Strong market fundamentals in TiO2 remain with positive sentiment in the pigment market and limited signs of inventory build up throughout the supply chain.

Early signs of chloride growth in China remain positive with new chloride pigment plants under construction.

Re-start of latent capacity will be considered as demand grows - value over volume central to RTIT’s strategy.

Continuing to progress the Zulti South feasibility study.

Demand CAGR 2.3%

*


Maximising ore value through product portfolio

Iron & Titanium revenue breakdown2018, percentage of revenue

Iron & Titanium production breakdown2018, percentage of product tonnes

Data presented on 100% ownership basis, FOB

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TiO2 feedstocks Metallics Zircon Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TiO2 feedstocks Metallics Zircon Other

Multiple co-product streams deliver maximum value from ore-bodies.

Wide range of TiO2 feedstock options for:

• Multiple chloride and sulphate slags;

• Upgraded slag (UGS);

• Rutile;

• Chloride ilmenite.

Zircon and metallics make significant contributions, as well as leading positions in:

• High purity ductile iron;

• Iron and steel powders;

• Specialist steel billets.

We are well-placed to supply demand growth.

Growth & Innovation


Growth & Innovation enabling value generation across asset lifecycle

Technical Excellence geosciences, mining, processing, infrastructure, asset management, integrated operations

Information Systems & Technologyenterprise services, platforms, digital workplace

Find Study Develop Optimise Close


Our focus builds on leadership in data, technology & automation

AutoHaulTMIn-field Mine Information

Predictive Insights

Autonomous Haulage System

Deployment

Perth Operating Centre Opens

Predictive Asset Health tool

Data Science Unit Established

Primary SulfideCopper Heap

Leaching

Autonomous Drill Piloted

2015 20162014 2017 2017+2008 2009 2010

First Autonomous Haul Truck Loaded

MAS* / RTVisTM

Fusion Modelling and Deployment

* Mine Automation System


Driving Rio Tinto mine to market productivity

Performance culture

Operating assets &projects

Customers

Additional $5bnmine to market in 5 years

Deliveroperations of the future

Technical excellenceCommercial excellence

Data & technology

Automation

Partnering with our suppliers

Best practice

Redesign our future

Leverage workforce capability

Refocus on the basics


Delivering $1.5bn additional free cash flow each year from 2021

* includes step up in Pilbara rail throughput

Iron OreAluminiumEnergy & MineralsCopper & Diamonds

Partnering with our suppliers

Best practice

Automation

Data & technology

Our focus across the value chain

$1.5bn productivity opportunity in 2021 ($5bn cumulative, 2017-2021)Productivity levers

Optimised mine

planning and scheduling

Processing recovery

Speed*

Payload*

Hours operating *

Optimised capacity

Optimised infrastructure

Mining efficiency

Commercial excellence and customer focus


Number of discoveries by qualityMineral discoveries in the world: all commodities 1975-2016

$0

$5

$10

$15

$20

$25

$30

0

50

100

150

200

1975 1980 1985 1990 1995 2000 2005 2010 2015

Tier 3

Tier 2

Tier 1

Expenditure (2016 US$ b)

Nu

mb

er o

f D

isco

veri

es

Note: Tier 1 deposits are “Company making" mines. They are large, long life and low cost. ie >20 Years ,>200 ktpa Cu or >250koz pa Au, and Bottom Quartile costs. Have an NPV of >$1000m, and Expected Value of ~$2000m in 2013 $Tier 2 deposits are “Significant” deposits - but are not quite as large or long life or as profitable as Tier 1 deposits. They have an NPV of $200-1000m and EV of ~$500m in 2013 $Tier 3 deposits are small / marginal deposits While they can be profitable they often only get developed at the top of the business cycle. At best they don’t meet more than one of the Tier 1 or 2 criteria. NPV of $0 to $200m, EV of ~$100m in 2013 $Unclassified deposits are small deposits that are less than “Major “in size and/or of minimal value. EV of (say) ~$10m

Caution: Incomplete data in recent years

Source: MinEx Consulting © March 2017

Exp

lora

tio

n (

BU

$)

Significant* mineral discoveries (excluding bulk commodities)Western World: 1975 - 2015 (excluding FSU + Eastern Europe + China 1995 - 2015)


Discovery of copper-gold mineralisation in Western Australia

Early success in copper at Winu*:

– Copper-gold mineralisation intersected

– Mineralisation close to surface 50-100m

– 1.4 km of strike length open to North, South and East

– Located in Western Australia and 100% owned

– Extensive drilling to continue in 2019

– High quality exploration targets emerging

*For full details, see the Notice to ASX dated 27 February 2019 (“Rio Tinto Exploration Update – copper-gold mineralisation discovered in the Paterson Province in the far east Pilbara region of Western Australia”) and accompanying information provided in accordance with the Table 1 checklist in The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition). These materials are also available on riotinto.com.


Extensive and successful exploration programme

38%

60%68%

78% 78% 74%

62%

40%32%

22% 22% 26%

0%

20%

40%

60%

80%

100%

2013 2014 2015 2016 2017 2018

OECD+Peru Non-OECD

Exploring across 16 different countriesExpenditure by region, 2013 to 2018

$231 million spent on exploration in 2018Expenditure by commodity

Copper

Diamonds

Iron Ore

Bauxite

Other

Corporate Information


Dividend policy and capital commitment

Balanced capital allocation

Maintain an appropriate balance between:

– Investment in compelling growth projects with IRR >15%; and

– Total shareholder cash returns of 40-60% of underlying earnings through the cycle

Supplement ordinary dividends with additional returns in periods of strong earnings and cash generation

Balance between interim and final to be weighted towards the final dividend

Board to determine appropriate ordinary dividend per share, taking into account:

– Results for the financial year

– Outlook for our major commodities

– View on the long-term growth prospects

– Objective of maintaining a strong balance sheet


Credit rating*

Standard & Poor’s Moody’s

Long-term A A2

Short-term A-1 P-1

Outlook Stable Stable

* A rating is not a recommendation to buy, sell or hold securities, and may be subject to revision, suspension or withdrawal at any time by the assigning rating agencies


Near-term maturities further reduced in 2018

*Numbers based on year-end accounting value The debt maturity profile does not show the result of capitalised operating leases that was adopted by the group effective 1 January 2019

Gross debt reduced by $2.3 billion in 2018 to ~$13 billion

$1.9 billion nominal value of bonds purchased in 2018

Average outstanding debt maturity of corporate bonds at ~13 years (~ 11 years for all Group debt)

No bond maturities until 2020

0

500

1,000

1,500

2,000

2,500

3,000

3,500

201

9

202

0

202

1

202

2

202

3

202

4

202

5

202

6

202

7

202

8

202

9

203

0

203

1

203

2

203

3

203

4-20

39

204

0

204

2+Gross Debt 2018 debt reductions

31 December 2018 debt maturity profile* $ million


Modelling EBITDA

Note: The sensitivities give the estimated effect on underlying EBITDA assuming that each individual price or exchange rate moved in isolation. The relationship between currencies and commodity prices is a complex one and movements in exchange rates can affect movements in commodity prices and vice versa. The exchange rate sensitivities include the effect on operating costs but exclude the effect of revaluation of foreign currency working capital.

2018average price/ rate

($m) impact on FY 2018 underlying EBITDA of 10% price/rate change

Copper 297c/lb 388

Aluminium $2,110/t 612

Gold $1,269/oz 46

Iron ore (62% Fe FOB) $61.2/dmt 1,566

A$ 75USc 721

C$ 77USc 354

Oil $71/bbl 78

Underlying EBITDA sensitivity


Accounting treatment of principal operationsAlumina % Location Accounting treatment Aluminium (cont’d)

Jonquiere 100.0 Canada Full consolidationTiwai Point (NZAS) 79.4 New Zealand Proportional consol

Queensland Alumina 80.0 Australia Proportional consol

Sao Luis (Alumar) 10.0 Brazil Proportional consol Tomago 51.6 Australia Proportional consol

Yarwun 100.0 Australia Full consolidation Bauxite % Location Accounting treatment

Aluminium Gove 100.0 Australia Full consolidation

Alma 100.0 Canada Full consolidation Porto Trombetas (MRN) 12.0 Brazil Equity accounted unit

Alouette JV 40.0 Canada Proportional consol Sangaredi (note 1) 23.0 Guinea Equity accounted unit

Arvida 100.0 Canada Full consolidation Weipa 100.0 Australia Full consolidation

Arvida AP60 100.0 Canada Full consolidation Borates

Bécancour 25.1 Canada Proportional consol Boron 100.0 US Full consolidation

Bell Bay 100.0 Australia Full consolidation Copper

Boyne 59.4 Australia Equity accounted unit Escondida 30.0 Chile Equity accounted unit

Grande Baie 100.0 Canada Full consolidation Kennecott 100.0 US Full consolidation

ISAL 100.0 IcelandFull consolidation – asset

held for saleOyu Tolgoi 33.5 Mongolia Full consolidation

Kitimat 100.0 Canada Full consolidationTurquoise Hill Resources (TRQ) 50.8 Canada Full consolidation

Laterrière 100.0 Canada Full consolidation

Sohar 20.0 Oman Equity accounted unit


Accounting treatment of principal operationsDiamonds % Location Accounting treatment Iron ore (cont’d) % Location Accounting treatment

Argyle Diamonds 100.0 Australia Full consolidation West Angelas 53.0 Australia Proportional consol (note 4)

Diavik Diamonds 60.0 Canada Proportional consol Western Turner Syncline 100.0 Australia Full consolidation

Iron ore Yandicoogina 100.0 Australia Full consolidation

Brockman (2 and 4) 100.0 Australia Full consolidation Salt

Channar JV 60.0 Australia Proportional consol Dampier Salt 68.4 Australia Full consolidation

Eastern Range JV (note 3) 54.0 Australia Proportional consol TiO2 feedstocks

Hope Downs JV (1 and 4) 50.0 Australia Proportional consol RTFT mine and smelter 100.0 Canada Full consolidation

Iron Ore Company of Canada (IOC)

58.7 Canada Full consolidation QMM mine 80.0 Madagascar Full consolidation

Marandoo 100.0 Australia Full consolidation Richards Bay Minerals 74.0 South Africa Full consolidation

Mt Tom Price 100.0 Australia Full consolidation Uranium

Nammuldi 100.0 Australia Full consolidationEnergy Resources of Australia (ERA)

68.4 Australia Full consolidation

Pannawonica (Mesas J and A)

53.0 Australia Proportional consol (note 4) Rössing 68.6 Namibia Full consolidation

Paraburdoo 100.0 Australia Full consolidation

Note 1: Rio Tinto has a 22.95% interest in Sangaredi but benefits from 45% of production, through Halco, which is equity accounted.Note 2: Through a joint venture agreement with Freeport-McMoRan Inc., Rio Tinto is entitled to 40% of material mined from Grasberg above an agreed threshold as a consequence of expansions and developments of the Grasberg facilities since 1998 (see slide 80). Note 3: Under the terms of the Eastern Range Joint Venture Agreement, Hamersley Iron manages the operation and is obliged to purchase all production from the JV.Note 4: Rio Tinto recognises 65% of the assets, liabilities, revenues and expenses of Robe River, with a 12% non-controlling interest. The Group therefore has a 53% beneficial interest in the Robe River mines (Mesas J and A and West Angelas).


Principal corporate activity 2010 to 2012

2010• Sale of majority of Alcan Packaging to Amcor $1,948m• Sale of Coal & Allied undeveloped properties (Maules Creek and Vickery) – Rio Tinto share $306m• Sale of Alcan Packaging Food Americas to Bemis Inc $1,200m• Increase in stake in Ivanhoe Mines to 40.1% $1,591m• Sale of remaining 48% stake in Cloud Peak Energy $573m

2011• Increase in stake in Ivanhoe Mines to 42.1% and participation in rights offering $751m• Increase in stake in Ivanhoe Mines to 46.5% $502m• Acquisition of Riversdale Mining Ltd (net of cash acquired) $3,690m• Sale of talc business to Imerys – enterprise value $340m• Increase in stake in Ivanhoe Mines from 46.5% to 49% $607m• Increase in holding in Coal and Allied from 75.7% to 80% $266m• Acquisition of Hathor $536m• Buy-back of Rio Tinto plc shares (up to 31 December 2011) $5,500m

2012• Purchase of remaining shares in Hathor $76m• Increase in stake in Ivanhoe Mines from 49% to 51% $308m• Buy-back of Rio Tinto plc shares (up to 26 March 2012) $1,500m• Rio Tinto completes formation of Simandou JV with Chalco $1,350m

• Increase in stake in Richards Bay Minerals from 37% to 74% $1,700m

Note: only selected transactions are shown.



2013• Sale of Eagle $315m• Sale of Palabora Mining Corporation $373m

• Sale of Northparkes $820m

• Sale of Altynalmas Gold (held by Turquoise Hill subsidiary) $235m

• Sell-down of interest in Constellium $670m

2014

• Sale of Clermont thermal coal mine $1,015m

2015

• Buy-back of Rio Tinto Limited shares (off-market) $425m• Buy-back of Rio Tinto Plc shares (ongoing throughout 2015) $1,575m

2016• Sale of Bengalla thermal coal Joint Venture $617m

• Sale of Mt Pleasant thermal coal project $221m

• Sale of Lochaber aluminium smelter $410m

2017• Sale of Coal & Allied $2,690m

• Buy-back of Rio Tinto Limited shares (off-market) ~$575m

• Buy-back of Rio Tinto plc shares ~$1,500m

Note: only selected transactions are shown. Based on amounts announced in Rio Tinto media releases: may vary from Cash Flow Statement due to timing, completion adjustments and exchange rates.



• Sale of 82% interest in Hail Creek coking coal mine and 71.2% interest in Valeria coal development project to Glencore $1,700mn

• Sale of 75% interest in Winchester South coal development project to Whitehaven Coal Limited $200m

• Sale of 80% interest in Kestrel coking coal mine to consortium comprising EMR Capital and PT Adaro Energy Tbk $2,250m

• Sale of 100% interest in wharf and land in Kitimat to LNG Canada $576m

• Sale of 100% interest in Dunkerque aluminium smelter in France to Liberty House $500m

• Sale of interest in Grasberg mine to Inalum $3,500m

• Buy-back of Rio Tinto plc shares ~$3,300m

• Buy-back of Rio Tinto Limited shares (off-market) ~$2,100m

2019

• Ongoing buy-back of Rio Tinto plc shares (by 27 Feb 2019 - $1.1bn remaining, to be completed no later than 28 Feb 2020) ~$600m

Note: only selected transactions are shown. Based on amounts announced in Rio Tinto media releases: may vary from Cash Flow Statement due to timing, completion adjustments and exchange rates.


Ongoing major capital projects

All numbers on 100% basis (US$)Approved

capital cost Status

Copper - Investment to extend mine life at Rio Tinto Kennecott, US beyond 2019

$0.9bn Funding for the continuation of open pit mining via the push back of the south wall: the project largely consists of simple mine stripping activities. Further funding for increased levels of waste removal was approved in 2018 in response to further geotechnical information.

Copper – development of the Oyu Tolgoi underground mine in Mongolia (Rio Tinto share 34%), where average copper grades of 1.66% are more than three times higher than the open pit.

$5.3bn The project was approved in May 2016. The detailed engineering design work and overall construction is mostly on track, but more detailed geo-technical information and difficult ground conditions have required a review of the mine design. This, combined with fit-out and commissioning challenges with the main production shaft, is ultimately expected to result in a further revised ramp-up schedule to sustainable first production (beyond the nine month delay indicated in October 2018). Detailed design work is underway to estimate the impact these issues will have on cost and schedule.

Aluminium – Investment in the Compagnie des Bauxites de Guinée (CBG) bauxite mine to expand from 14.5 to 18.5 million tonnes a year. Rio Tinto’s share of capex is $0.3bn.

$0.7bn Approved in 2016. First ore produced in Q4 2018

Aluminium – Investment in a second tunnel at the 1000MW Kemano hydropower facility at Kitimat, British Columbia, Canada

$0.5bn Approved in 2017. We expect to complete the project by late 2020. It will ensure the long-term reliability of the power supply to the modernised Kitimat smelter.


Ongoing major capital projects

All numbers on 100% basis (US$)Approved

capital cost Status

Iron ore – Investment in West Angelas and the Robe Valley in the Pilbara region of Western Australia to sustain production capacity. Rio Tinto’s share of capex is $0.8bn

$1.55bn Approved in October 2018, the investments will enable us to sustain production of our Pilbara Blend™ and Robe Valley products. Construction is planned to begin in 2019 and first ore is expected in 2021

Iron ore – Investment in Koodaideri, a new production hub in the Pilbara region of Western Australia, to sustain existing production in our iron ore system

$2.6bn Approved in November 2018, the investment incorporates a processing plant and infrastructure including a 166-kilometre rail line connecting the mine to our existing network. We will start construction in 2019 and expect first production in late 2021. Once complete, the mine will have an annual capacity of 43 million tonnes.


Geographical analysis of Rio Tinto shareholders

At 18 January 2019

36.8%

7.8%26.0%

14.7%

14.7%

0.5%

UK

Europe

North America

Asia

Australia

Rest of World


Rio Tinto Executive Committee

CEOJS Jacques

Aluminium(Montreal)

Alfredo Barrios

Copper& Diamonds

(London)

ArnaudSoirat

Energy& Minerals(London)

Bold Baatar

Iron Ore(Perth)

ChrisSalisbury

Legal &Regulatory

Affairs(London)

Philip Richards

HumanResources(London)

VeraKirikova

Growth& Innovation(Brisbane)

Steve McIntosh

CFOJakob Stausholm

Health, Safety &

Environment(Perth)

JoanneFarrell

Corporate Relations(London)

Simone Niven

Commercial(Singapore)

SimonTrott


Rio Tinto Board – diverse, operational experience

Role Name Sector experience

Chairman Simon Thompson Mining – former executive director at Anglo American and investment banking with NM Rothschild and SG Warburg.

Executive Director J-S Jacques CEO since July 2016, appointed CEO Copper & Coal in February 2015 and CEO Copper in January 2013. Joined Rio Tinto in 2011 as president International Operations in the Copper group. Prior to joining Rio Tinto, J-S worked for more than 15 years across Europe, Southeast Asia, India and the United States in a wide range of operational and functional positions in the aluminium, bauxite and steel industries, including group strategy director for Tata Steel Group from 2007 to 2011.

Executive Director Jakob Stausholm CFO from 3 September 2018 as an executive director. He has over 20 years’ experience working in senior finance roles in Europe, Latin America and Asia. He was Group CFO and an executive director of A.P. Moeller – Maersk A/S and Chief Financial, Strategy & Transformation Officer for the Transport & Logistics division from December 2016 until March 2018, having joined the Maersk Group in 2012. From 2008 to 2011 he was Group CFO of the global facility services provider ISS A/S and he was a non-executive director of Statoil ASA from 2009 to 2016 and of Woodside Petroleum from 2006 to 2008. Before that, he spent over 19 years with Royal Dutch Shell in numerous finance positions globally and as Chief Internal Auditor for the group.


Rio Tinto Board – diverse, operational experience

Role Name Sector experience

Non-executive Directors Megan Clark Metals & mining, science, research & technology - chief executive of Australia’s national research agency. Chair of the Sustainability committee.

David Constable Construction and Engineering – predominantly with Fluor Corporation. Former chief executive officer of Sasol, He is also a non-executive director of Anadarko Petroleum Corporation and ABB Ltd. Joined Board on 10 February 2017.

Ann Godbehere Finance – former CFO of Swiss Re. Chair of the Audit committee. Senior independent director.

Moya Greene Former CEO of Royal Mail and previously president and CEO of Canada Post Corp. Also held senior roles at Bombardier and The Toronto-Dominion Bank.

Simon Henry Oil and Gas – former chief financial officer of Royal Dutch Shell. Also a non-executive director of Lloyds Banking Group.

Sam Laidlaw Energy industry background, former CEO of Centrica plc. Non-executive director of HSBC Holdings plc and chairman of Neptune Oil & Gas. Chair of remuneration committee.

Michael L’Estrange International relations – former Secretary to Australian Cabinet and former Secretary of the Department of Foreign Affairs and Trade.

Simon McKeon Former executive chairman of Macquarie Group. Served as chairman of AMP Limited and of the Australian government’s research and development body, CSIRO. Joined the Board in January 2019.

rio tinto chartbook · march 2019 1 cautionary statements 2 mineral resources, reserves and...

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