1

Leigh CliffordRio Tinto

Melbourne Mining Club – 1 May 2007

Changes I have seen

2

1 May , 2007 Slide 3

Key themes

Global economic change

Industry structure and composition

The IR revolution

Technology

Engaging the community

1 May , 2007 Slide 4

Ten largest companies by market capitalisation 30 June 1979

1. Broken Hill Proprietary2. Conzinc Riotinto of Australia3. MIM Holdings4. Hamersley Holdings5. Comalco6. Bank of New South Wales7. CSR8. Bougainville Copper9. ANZ Banking Group10. Western Mining Corporation

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1 May , 2007 Slide 5

China growth rates have been stunning…

Source: WBMS / IISI

0

5

10

15

20

25

30

Aluminium Copper Steel

ChinaRoWWorld

Ann

ual D

eman

d G

row

th R

ate

2000

–20

06 (%

)

1 May , 2007 Slide 6

Japan and China - share of world crude steel production

6

8

10

12

14

16

18

20

Y+0

Y+1

Y+2

Y+3

Y+4

Y+5

Y+6

Y+7

Y+8

Y+9

Y+10

Y+11

Y+12

Perc

ent

Japan: 1961-1973China: 1990-2002

4

1 May , 2007 Slide 7

Chinese iron ore imports

0

100

200

300

400

500

600

00 01 02 03 04 05 06 07 08 09 10 11

Mill

ion

tonn

es

Source: Australian Mineral EconomicsActual AME Forecast 2006

And the trend is likely to continue – case study: Iron Ore

2005 Forecast

1 May , 2007 Slide 8

China: opportunities and threats

RAW MATERIALS

PROCESSED MATERIALS

Importer

Importer

Exporter

Exporter

BoratesCopper concIron oreHard coking coalPotash

Thermal coalLead concTi02 feedstockZinc concBauxite

Molybdenum

Copper NickelGold

SteelFabricated Copper & Aluminium products

PlatinumTitanium Pigments

Magnesium

TalcTin

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1 May , 2007 Slide 9

Armada of 60+ ships off Newcastle

Source: James Croucher/The Australian - 10 April 2007

1 May , 2007 Slide 10

3.8

2.8

2.7

2.3

9.68.6

8.35.04.94.9

4.54.34.3

4.2

3.43.0

3.0

2.72.7

2.5

0 4 8 12MIM

PechineyInco

MinorcoNoranda

GFSABarrick Gold

WMCReynolds

Placer DomeAmplats

CRAAlcan

NewmontAlcoa

GencorDe Beers

Anglo AmericanRTZBHP

Market capitalisation of major listed mining companies

1990 At 13 April 2007

(US$ bn)

13.315.816.6

18.618.818.919.320.0

23.123.825.3

30.538.939.9

44.853.4

80.781.8

94.8136.9

0 20 40 60 80 100 120 140Grupo MexicoTeck Cominco

CamecoGoldcorp

ImpalaNewmont

Potash CorpAlcan

Southern Copper CoFreeport

Barrick GoldAlcoa

NorilskAnglo Platinum

ShenhuaXstrata

Anglo AmericanRio Tinto

CVRDBHP Billiton

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1 May , 2007 Slide 11

25.3

30.5

38.9

39.9

44.8

53.4

80.7

81.8

94.8

136.9

280.2

363.8

440.7

0 50 100 150 200 250 300 350 400 450

Barrick Gold

Alcoa

Norilsk

Anglo Platinum

Shenhua

Xstrata

Anglo American

Rio Tinto

CVRD

BHP Billiton

Microsoft

GE

Exxon

Market capitalisation of major listed mining companies compared to large US corporations

13 April 2007

(US$ bn)

10 largest mining cos = $627bn

1 May , 2007 Slide 12

Global exploration expenditure

0

1

2

3

4

5

6

7

8

93 94 95 96 97 98 99 00 01 02 03 04 05 06

US$bnWorldwide $ bn

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1 May , 2007 Slide 13

‘The corner’ - Broken Hill Trades Hall

1 May , 2007 Slide 14

Hamersley Iron adopts all staff workforce 1993

0

2

4

6

8

10

12

14

16

18

74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06

Lost time (%)

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1 May , 2007 Slide 15

Coal

1 May , 2007 Slide 16

Pickets at Kestrel

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1 May , 2007 Slide 17

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Certified Agreement

050

100

150

200

250

300

350

400

450

ktto

tal m

ater

ial m

oved

/ em

ploy

eeCertified Agreement boosts Mt Thorleyproductivity in 2000

1 May , 2007 Slide 18

Safety performance trend

0

1

2

3

4

5

6

98 99 00 01 02 03 04 05 06

Australia

USA

Rio Tinto

LTI p

er 2

00 0

00 h

ours

wor

ked

Note: Data for Australia and the USA has been normalised to include restricted workdays and contractors in the LTIFR calculation.

Source: Rio Tinto

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1 May , 2007 Slide 19

Our people

1 May , 2007 Slide 20

Mine automationNorthparkes

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1 May , 2007 Slide 21

300 ton haul trucks at Bingham Canyon

1 May , 2007 Slide 22

HIsmelt – direct smelting of iron ore

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1 May , 2007 Slide 23

Madagascar – community engagement, sustainable operation

1 May , 2007 Slide 24

Rio Colorado Potash

Ilmenite

Indian diamonds

Coking & thermal coal

Coking & thermal coal

DiamondsNickelNickel

Projects in various stages of feasibility Advanced exploration projectsAdvanced exploration projects

Diamonds

Simandou iron

Resolution copper

Turkey copper

Eagle nickel

Alaska copper / gold

Pilbara exploration

RioNor exploration j.v.

Bauxite

La Granja copper Pilbara development

Thermal coal

Coking coalJarandol borate

Gold

Diamonds

Mongolian coal

Coking coal

Projects across the globe

ERA

DiamondsDiamonds

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