Riversdale a new supply of hard coking and thermal coal Andrew Woodley, Executive Director Riversdale Mozambique Limitada
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Presentation Outline Introducing Rio Tinto Countdown to first exports in Q4 20011 The Moatize Coal Basin Benga Construction Progress Riversdale s Projects Infrastructure Overview Community Involvement 3
Introducing Rio Tinto Alumina, aluminium & bauxite Borates Coal Copper Diamonds Gold and silver Iron ore Molybdenum Salt Talc Titanium dioxide Uranium 4
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
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
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
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
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
Supply & Demand Seaborne Coking Coal Australia Dominates Seaborne Coking Coal Supply (Mtpa) Emerging Economies Are Driving Demand Growth (Mtpa) Source: Wood Mackenzie
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
Benga Project CHPP Construction is advanced Mine infrastructure progressing well Overland conveyor construction First coal exports planned for Q4 2011 12
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
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
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
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 Q4 2011 Refurbishment of Berth 8 at Beira Port completion to coincide with Q4 2011 shipments Berth 8 at the Beira Coal Terminal
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
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
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 An Alternative Supplier of Coking Coal