Rio Tinto investor seminar

Rio Tinto investor seminar

Rio Tinto investor seminar

Rio Tinto is holding its annual investor seminar in London today at 2.00pm and repeating it in Sydney on Monday 29 November at 9.00am.

At the seminar Rio Tinto will provide an update on capital expenditure and growth projections and will reaffirm how it will continue to focus on identifying, developing and growing tier one assets to optimise shareholder value. It will contain the following updates:

. Capital expenditure for the 18 months to December 2011 remains forecast at around US$13 billion. Due to some re-phasing the current years spend is now anticipated to be close to US$4 billion with an increase to around US$11 billion in 2011. Annual spend is set to remain at a comparable level over the medium term.

. Planned expansion of the Iron Ore business will increase production by more than 50 per cent over the next five years. Infrastructure expansion is underway in the Pilbara to take capacity up to 283 mtpa by 2013 with final feasibility studies underway to increase to 333 mtpa.

Rio Tinto’s Pilbara port, rail and mine operations have unrivalled potential to grow significantly beyond this level, if required by the market. The ‘all-in1’ cost per tonne for the full scope of expansions in the Pilbara will be around US$130 per tonne on a 100 per cent basis and around US$105 per tonne for Rio Tinto’s equity share.

. As a result of variable grades across the mine lifecycle, 2010 mined copper production is expected to be 661,000 tonnes. The effect of lower grades will continue in 2011 but rebound in 2012. Beyond 2012, the outlook reflects an increase in annual copper production for 2013 and 2014 as a result of increasing grades and the start of production at Oyu Tolgoi.

. More than US$2 billion is to be invested over the next three years to grow existing copper operating assets.

. Development of the Oyu Tolgoi project remains on track with first ore expected in 2012 with a five year ramp-up to full production. Rio Tinto’s stake in Ivanhoe now stands at 34.9 per cent.

. Integration and transformation of the Aluminium business continues, with a further US$1 billion of sustainable cash improvement targeted by 2014.

Tom Albanese, chief executive, Rio Tinto said: “‘We believe the first and best use of our strong cashflows and robust balance sheet is to invest in the excellent range of value-adding growth projects across Rio Tinto’s product portfolio.

“The Pilbara iron ore expansion is a prime example of the quality of our growth options. It is the largest mine project ever undertaken in Australia. With our track record of being able to deliver projects on time and on budget we are confident that it will also be the lowest risk, highest return project in Australia for the foreseeable future.

“The long-term industrialisation and urbanisation story in developing countries continues apace. Over the next 15 to 20 years, this will lead to a doubling in iron ore, aluminium, and copper demand which will require a significant supply response. With our large suite of low cost, large scale, expandable assets along with our core skills in operating excellence, exploration, technology and innovation, we are very well positioned, and are investing to take full advantage of these opportunities.”
Notes to editors

1. ‘All in’ costs of iron ore expansion includes all capital expenditure on owner-operated mines, rail and port infrastructure.

2. Both the London and Sydney seminars will be webcast and can be accessed on www.riotinto.com. Replays will be available after the close of each seminar.

3. Presentations will be made by Tom Albanese, chief executive, Guy Elliott, chief financial officer, Sam Walsh, chief executive, Rio Tinto Iron Ore, and Andrew Harding, chief executive, Copper.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

Contacts:

Media Relations, EMEA / Americas
Tony Shaffer
Office: +44 (0) 20 7781 1138
Mobile: +44 (0) 7920 041 003

Christina Mills
Office: +44 (0) 20 7781 1154
Mobile: +44 (0) 7825 275 605

Media Relations, Australia / Asia
David Luff
Office: +61 (0) 3 9283 3620
Mobile: +61 (0) 419 850 205

Karen Halbert
Office: +61 (0) 3 9283 3627
Mobile: +61 (0) 412 119 389

Bruce Tobin
Office: +61 (0) 3 9283 3612
Mobile: +61 (0) 419 103 454

Media Relations, Canada
Bryan Tucker
Office: +1 (0) 514 848 8151
Mobile: +1 (0) 514 825 8319

Investor Relations, London
Mark Shannon
Office: +44 (0) 20 7781 1178
Mobile: +44 (0) 7917 576 597

David Ovington
Office: +44 (0) 20 7781 2051
Mobile: +44 (0) 7920 010 978

Investor Relations, North America
Jason Combes
Office: +1 (0) 801 204 2919
Mobile: +1 (0) 801 558 2645

Investor Relations, Australia
Dave Skinner
Office: +61 (0) 3 9283 3628
Mobile: +61 (0) 408 335 309

Simon Ellinor
Office +61 (0) 7 3361 4365
Mobile +61 (0) 439 102 811

Further information:

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Website: www.riotinto.com