Mine of the Future™ – Rio Tinto’s Innovation Pathway John McGagh – Head of Innovation 25 September 2012 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-looking statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in thi s presentation, including, without limitation, those regarding Rio Tinto’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Rio Tinto’s present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto’s most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) or Form 6- Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share. Why innovate? Improve productivity, to .. • Improve safety • Improve capital productivity • Improve labour productivity • Improve recovery rates • Remove process waste • Reduce energy use • Find new ore bodies • Recover from difficult ore bodies • Extend resource life 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 3 Demand outlook Shenzhen 1982 Shenzhen 2007 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 4 Supply picture 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 5 Productivity – the Australian example 85.0 95.0 105.0 115.0 125.0 135.0 145.0 155.0 Multifactor productivity (MFP) index – mining MFP Index Source: Australian Bureau of Statistics (ABS) (2011), 5260.0.55.002 – Experimental estimates of industry multifactor productivity, 2010-11 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 6 Implementation of technologies is key Our Mine of the Future™ is shaped by four significant value levers Find Develop Mine Recover • Find future tier one ore bodies • VK1 in initial flight trials • Complex testing programme in 2012 • Develop future block cave mines safer, faster, better • Tunnel boring system trials to commence at Northparkes in 2012 • Optimise resource productivity • Expansion of driverless truck fleet • Operations Centre • Smart drilling and blasting • Autonomous trains (AutoHaul™) • Recover more from mineral deposits • IronX™ iron ore recovery pilot plant to be scaled up in 2012 • NuWave™ copper sorting pilot plant being commissioned at KUC 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 7 Rio Tinto centres Formal long term (around 5 years) alliances with world class institutions provide Rio Tinto access to stable research resources to pursue targeted Rio Tinto programmes. Technology partnerships Strategic partnerships and MoUs with leading global suppliers to help develop technology to commercial outcomes. Centre for Underground Mine Construction Centre for Advanced Mineral Recovery Centre for Materials and Sensing Centre for Advanced Mineral Sorting Centre for Mine Automation 11 5 6& 4 1 14 15 Komatsu Aker Wirth Atlas Copco e2v Tomra University of Nottingham University of Western Australia Herrenknecht Rio Tinto innovation network model 6 1 2 3 4 5 6 Rio Tinto Innovation Centre 1 2 3 4 5 6 1 2 3 4 5 6 7 8 7 1 2&8 3 5 6&4 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 8 • Structured control & governance • Data management & security • Rigorous investment proposals • Freedom-to-operate • Patent families and walls • Trade secrets, copyright & trademarks, individual contracts Idea Proof of Concept Pilot Demo Deploy Support Innovation without intellectual property protection is philanthropy Protecting our intellectual property 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 9 2007 Trials starts on the Operations Centre Automated truck project starts in Western Australia 2008 Automated train trial 2009/10 Automated trucks Pilbara ‘A Pit’ trial 2010 Drillers Aid trial 2012 Cab-less Drill 2011 Komatsu MOU for 150 autonomous trucks deployment 2010/11 Automated drills trial 2010 Operations Centre commissioned 2012 Automated Train Deployment 2008 Atlas Copco Alliance 2012 Advanced Survey Surface – innovation timeline 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 10 Surface mines of the past, present and future Circa 1970 Circa 2012 Circa 2005 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 11 Holistic operational view • Holistic view of the operations • Integrated, near real-time information • Improve decision making • High levels of predictability • Improved productivity and profitability 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 12 Our future: mine automation system 25 September 2012 © 2012, Rio Tinto, All Rights Reserved 13 Operations Centre: aligning systems “Mission Control” for entire Pilbara network: • 14 mines (some 31 pits) • 1,500km of rail network • 3 port terminals • Power & other infrastructure End-to-end visibility for: • 200 cont
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