North American investment community tour - Salt Lake City

Kennecott Utah Copper Finance Community Update 24 September 2009

Overview Mine and Plant Assets Future Growth Options Summary

Rio Tinto Copper has an attractive portfolio of existing assets and projects, of which KUC is a corner stone Source: Rio Tinto Freeport JV Oyu Tolgoi Sulawesi (nickel) Northparkes Palabora Escondida La Granja Eagle (nickel) Resolution Pebble Bingham Exploration Tamarack (nickel) Codelco JV Projects Operations

KUC has produced more copper than any mine in history ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Overview 247 Integrated Mine to Refinery Complex BINGHAM CANYON MINE Ore Crusher Conveyor Oquirrh Mountains Barney’s Canyon Inactive Tailings Active Tailings Pipeline Bingham Canyon Smelter Refinery Power Plant Concentrator Storage Reservoir

KUC is three times safer than the industry average Source: Industry Rates from latest edition of the Bureau of Labor Statistics Report – Table 1. Incidence rates of nonfatal occupational injuries and illnesses 2007. KUC’s all injury frequency rate compares favorably across industries

Our focus on value creation is supported by a commitment to sustainable development ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

KUC has experienced continued strong financial performance Financial Performance 247 Comments ,[object Object],Underlying earnings ($M) EBITDA ($M)

Measures have been taken to address market downturn 247 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Nominal metal prices index 1 Jan 2007 = 100

Significant focus on reducing cash expenditure 247 ,[object Object],[object Object],[object Object],[object Object],Unit cost index 2004 = 100 Capital Expenditure ($ millions)

KUC labor agreement expires September 2009 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Bingham Canyon Mine Production 2004 – 2009 Total Tonnes Mined ( Millions) Source: Rio Tinto ,[object Object],[object Object],[object Object]

Copperton Concentrator Source: Rio Tinto ,[object Object],[object Object],[object Object],[object Object],Production 2004 – 2009 Tonnes copper produced ( thousands) Ore milled per day (thousands)

Smelter & Refinery Cathode Production 2004 – 2009 ,[object Object],[object Object],[object Object],[object Object],Tonnes Cathode ( Thousands) Source: Rio Tinto

Precious metals and molybdenum remain attractive by-products... Source: Rio Tinto Molybdenum 2004 – 2009 Pounds produced ( Millions) Price per pound ,[object Object],[object Object],[object Object],Gold 2004 – 2009 Ounces produced (Thousands) Price per ounce

... leaving KUC favorably positioned on the cost curve over the long term Unit cash costs before by-product credits Sulfuric acid Gold and silver Molybdenum 2009 H1 Source: Rio Tinto. Assumes 2009 H1 production and prices

Sources: 1900-1928 McGraw Hill (1931), 1929-2008 CRU Global copper consumption ,[object Object],[object Object],[object Object],0 5 10 15 20 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Consumption in millions of tonnes per annum

Global copper reserves and grades are decreasing Global copper reserves are falling . . . . . . and grades are decreasing Global copper reserves (years of annual production) Average reserve grade (% copper) . . . providing a significant challenge for exploration teams *2008 estimated based on 2007 data Source: Brook Hunt ,[object Object],[object Object]

KUC remains a long life operation with significant reserves and resources Contained Metal in Reserves and Resources 247 Copper (kt) Molybdenum (kt) Gold (koz) ,[object Object],[object Object],[object Object],[object Object]

Bingham Canyon – potential tip of the iceberg Bingham Canyon ,[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Summary – Kennecott Utah Copper is a top tier asset

The Oquirrh Mountains viewed from the Kennecott Inland Sea Shorebird Reserve at the Great Salt Lake. Questions?

North American investment community tour - Salt Lake City

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Editor's Notes