Rio Tinto Iron and Titanium At TZMI Congress

TiO 2 feedstocks: A view into the future Presentation to TZMI Congress, Singapore, 22 October 2009 Harry Kenyon-Slaney Managing Director Rio Tinto Iron & Titanium

Cautionary statement ,[object Object],[object Object],[object Object],[object Object],[object Object]

Presentation outline ,[object Object],[object Object],[object Object]

Richards Bay Minerals ,[object Object],[object Object],[object Object],[object Object],[object Object]

Rio Tinto Fer et Titane (RTF&T) ,[object Object],[object Object],[object Object]

QMM is now a reality ,[object Object],[object Object],[object Object]

Commitment to sustainable development makes us a partner of choice around the world Last 10 years 1998-2007 14.2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Environmental stewardship Social well-being ,[object Object],[object Object],[object Object],[object Object],[object Object],Strong governance Economic prosperity ,[object Object],[object Object],[object Object]

QMM’s experience: Environmental stewardship

QMM’s experience: Social well-being

QMM’s experience: Economic prosperity

QMM’s experience: Strong governance

Demand for TiO 2 is still set to increase strongly as the developing world moves from infrastructure to urbanisation GDP per capita 2000 US$ PPP Percentage of saturation level* Diamonds*** Aluminium Crude Steel Copper Salt Titanium Dioxide Zinc Nickel * Saturation level – point at which consumption per capita does not increase with income levels ** Population income distribution is in market exchange rate terms *** Diamonds is classed as a luxury good and hence saturation levels are not reached within the specified time period Source: Rio Tinto

The long term story remains intact: Urbanisation in developing economies will not be derailed by the current downturn Source: Global Insight, CIA Factbook Urbanisation rates across Asia, the United States and European Union in 2008 Urbanisation rates, income and population Note: Size of bubble reflects total population United States Japan India EU15 China China by Province

Lessons from other commodities: Costs and prices have risen in iron ore… Iron ore mining cost curves and prices Source: CRU, Rio Tinto. Cost curves shown up to the marginal tonne. * Annual benchmark for iron ore fines

…and alumina… Alumina cost curves and prices Source: CRU, Rio Tinto. Cost curves shown up to the marginal tonne. * Average FOB spot price Australia, (2008 price 1H)

And in copper the price increased in excess of the costs …. Source: Data is indexed, 2002 = 100 Brook Hunt, * Annual average LME cash price Cost Price

… so what is wrong with the TiO2 feedstock industry? Source: TZMI, Rio Tinto Data is indexed, 2002 = 100. ! Cost Price

The end producer has realised price rises but this has not flowed down the value chain Source: US Bureau of Labour Statistics, Rio Tinto Index - Real $2009

How will the TiO 2 feedstock industry remain viable ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Concluding remarks ,[object Object],[object Object],[object Object],[object Object]

Rio Tinto Iron and Titanium At TZMI Congress

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Rio Tinto Iron and Titanium At TZMI Congress