Riversdale a new supply of hard coking and thermal coal. Andrew Woodley, Executive Director Riversdale Mozambique Limitada

Transcription

1 Riversdale a new supply of hard coking and thermal coal Andrew Woodley, Executive Director Riversdale Mozambique Limitada

2 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 this 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. Except as required by applicable regulations or by law, Rio Tinto does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. 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. 2

3 Presentation Outline Introducing Rio Tinto Countdown to first exports in Q The Moatize Coal Basin Benga Construction Progress Riversdale s Projects Infrastructure Overview Community Involvement 3

4 Introducing Rio Tinto Alumina, aluminium & bauxite Borates Coal Copper Diamonds Gold and silver Iron ore Molybdenum Salt Talc Titanium dioxide Uranium 4

5 Rio Tinto Has a Presence in Over 40 Countries 18 Key Minesand mining projects Smelters, ref i neri es and processi ngpl antsre mot efro mmi n Aluminium Copper Diamonds & Minerals Energy Iron Ore 5

6 Our Approach For Rio Tinto, safety is a core value World class safety performance (0.66 injuries per 200,000 hrs worked by Rio Tinto employees in 2010) Our commitment to sustainable development underpins the way our business operates Strong track record in: Health, Safety, Environmental management and Community development Running mines in populated and sensitive natural environments Rehabilitation Relationships with Indigenous communities / stakeholders

7 Our Global Coal Market Experience Kestrel underground mine, Queensland Rehabilitated area at Blair Athol, Queensland Hail Creek open cut mine, Queensland Mount Thorley Warkworth, New South Wales 7

8 Rio Tinto s Acquisition of Riversdale Riversdale provides Rio Tinto with one of the world's most prospective tier one coking coal development portfolios Rio Tinto announced a takeover offer in December 2010; as of June 17 Rio Tinto entered into compulsory acquisition and by end of August will have 100% Our strategy is to invest in and operate long-life, cost-competitive mines and businesses with significant growth potential We look forward to bringing our expertise to help develop Riversdale's assets as quickly as possible

9 Mozambique s Moatize Basin The world s next major coal basin TANZANIA Premium hard coking coal and high energy thermal coal Benga (65% RIV) & Zambeze (100%) have significant coal resources ZAMBIA CAHORRA BASA DAM MALAWI RIV Tete Projects Tete Lichinga Quamba Nampula MOZAMBIQUE Nacala Ilha de Moçambique Sena First exports expected end 2011 ZIMBABWE Machipanda Marromeu Chinde Low cost, long life operations Beira INDIAN OCEAN Chicualacuala Vilanculos SOUTH AFRICA AFRICA MAPUTO 0 km 200 km 0 miles 100 miles

10 Supply & Demand Seaborne Coking Coal Australia Dominates Seaborne Coking Coal Supply (Mtpa) Emerging Economies Are Driving Demand Growth (Mtpa) Source: Wood Mackenzie

11 Riversdale s Assets Mozambique Moatize Basin Projects TANZANIA Two Tier 1 hard coking coal and thermal mines under development Benga and Zambeze ZAMBIA MALAWI RIV Projects Benga mine in construction, first exports end 2011 ZIMBABWE Tete Zambeze project exploration licence granted, studies well underway, infill drilling progress has started Beira Potential for future mine developments within Riversdale s existing portfolio SOUTH AFRICA MAPUTO Mozambique South Africa Zululand Anthracite Colliery (ZAC) Operating mine producing at a rate of approximately 700ktpa of saleable product NAMIBIA BOTSWANA Johannesburg PRETORIA SWAZ. MOZ High quality product sold into domestic and export markets Bloemfontein LES. ZAC RBCT Durban Cape Town South Africa

12 Benga Project CHPP Construction is advanced Mine infrastructure progressing well Overland conveyor construction First coal exports planned for Q

13 Benga Project Benga Project (65% Riversdale) Project Location Major construction works are advanced Zambeze 40% LOM agreement with Tata Steel Products to comprise of hard coking coal and export thermal coal Benga Mining lease granted for 25 years All major approvals received Tenement holders RIV (100%) RIV (65%) TATA (35%) JV (inc Benga) Vale 13

14 Zambeze Project Zambeze Project (100% Riversdale) Project Location Tier one hard coking coal project Adjacent to the Benga Project Products to comprise of hard coking coal and export thermal coal Zambeze Potential for a large scale operation Potential for first exports in late 2014 Tenement holders RIV (100%) Benga RIV (65%) TATA (35%) JV (inc Benga) Vale 14

15 Other Opportunities Tete East Project Tete East Project (100% Riversdale) Project Location Tete East Project Licences Riversdale s third Tier 1 HCC project Ability to leverage off Benga and Zambeze logistics systems Benga coal seams extend into surrounding Tenements 945L is immediately adjacent to Riversdale s Benga and Vale s Moatize projects Tenement holders RIV (100%) RIV (65%) TATA (35%) JV (inc Benga) Vale 15

16 Export Logistics Progress Benga Stage 1 Sena Railway Line Coal producers awaiting final approval from Government authorities Rolling Stock Riversdale s rolling stock operations due to coincide with first coal export (Q4 2011) The completed Sena Railway Line Port and Rail Riversdale s railway siding infrastructure on track for receipt and railing to meet Q Refurbishment of Berth 8 at Beira Port completion to coincide with Q shipments Berth 8 at the Beira Coal Terminal

17 Zambezi River barging Barging Prefeasibility Study Dec 2010 Environment and Social Impact Assessment: April 2011 lodged May 2011 public meetings Sept/Oct 2011 target date for approval Target commencement dates: The Tafica (18m) Riversdale s primary work barge Feb 2012 river facilities construction June 2012 channel construction 2014 coal barging Technical river studies underway The Benga (10m) multi-purpose vessel for river and coastal studies

18 Studies Underway into Export Logistics Options for Expansion Solutions sought for long term logistics for export of coal from Moatize Basin Solution needs to: Supplement existing/upgraded Beira & Nacala export corridors Cater for future growth Zambezi River studies Provide a catalyst for further socioeconomic development in region Steering group formed Coal Industry Export Initiative Study underway, supported by Mozambique Coal Development Association Nacala is a natural deepwater port

19 Community Capacity Building Rio Tinto is committed to supporting the excellent work underway at the Riversdale Training Centre in Tete 28,300 people have registered 1172 candidates have been trained & assessed in building/civil trades 275 local candidates will be trained on the centre s simulators as mobile equipment operators Rio Tinto wants to ensure genuine, long term benefits are provided to Mozambicans

20 20 An Alternative Supplier of Coking Coal