Rio Tinto Copper: Global opportunities in the mining sector

Peter Nicholls

General Manager Commercial

Rio Tinto, Copper

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.

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.

Global footprint in copper operations and projects

Rio Tinto Copper

operations and projects

Note: Shaded areas denote countries where Rio Tinto has a presence through operations, offices or exploration.

Source: Rio Tinto 3

Other Rio Tinto assets

Pebble

Kennecott

Resolution Eagle

La Granja

Escondida Palabora Northparkes

Grasberg

Sulawesi

OyuTolgoi

3

4

Escondida (30%)

World’s largest copper

mine

Second quartile net

unit cash costs2

1

Rio Tinto’s wholly owned and joint venture world class operating assets provide an industry-leading cost base

Grasberg (40%)

World’s third largest

copper mine*

First quartile net unit

cash costs1

3

Notes: *Grasberg is the world’s largest gold producer; ** Brook Hunt’s quoted C1 cash costs (C1 costs = cash costs net of by products)

Source: Company reports - Rio Tinto, Minera Escondida Limited, BHP Billiton, Freeport Indonesia, Brook Hunt – A Wood Mackenzie Company

Bingham Canyon (100%)

World’s eleventh

largest copper mine

First quartile net unit

cash costs1

11

Codelco Freeport BHP Billiton Xstrata Rio Tinto

9566

10037

30C1 costs 2010 (c/lb)**

5

Attractive longer term growth profile

Resolution (55%)

• High grade copper deposit

containing molybdenum

• Potential production of 600kt

per annum

• Prefeasibility and negotiations

for land exchange are ongoing

World’s third largest

undeveloped copper

resource

3

La Granja (100%)

• Drilling continues to determine

the full extent of the deposit

• Prefeasibility ongoing

• Targeting/discovery of a high

grade zone

World’s seventh

largest undeveloped

copper resource

7

Source: Rio Tinto

Rio Tinto has a 19.8% equity holding in Northern Dynasty, which owns 50% share in the Pebble joint venture

Pebble (10%)

• World’s largest gold resource in

a porphyry deposit

• Also contains

molybdenum, silver, palladium

and rhenium

World’s largest

undeveloped copper

resource

1

Oyu Tolgoi - significant additional low cost production and further growth potential

Notes: 1. Ranked using 2013 Brook Hunt mine production data and Oyu Tolgoi’s full capacity production.

Source: Brook Hunt a Wood Mackenzie Company, Rio Tinto, Oyu Tolgoi LLC6

• Oyu Tolgoi will be a top five copper

producer and major gold producer

• Average annual production of 450 kt of

copper and 330 koz of gold.

Large

Long life

Low cost

• 2,546mt resource & 1,392mt reserve.

• Potential for a > 50 year mine life.

• Highly prospective region with further

exploration potential.

• Significant by-product credits from gold.

• Expected to have first quartile net unit

cash costs.

6

Oyu Tolgoi is a Tier one asset

77

Note: 1. Copper assets include those in Pre-Production or Feasibility and the ten largest assets with Active Reserves Development as defined by MEG.

2. Deposit data for La Granja, Resolution and Oyu Tolgoi is from the JORC compliant ore reserves and resources statement outlined in the 2009 Annual

Report, pp. 68-77. Pebble deposit data is 43-101 compliant, derived from the “Updates Mineral Resource Estimate…” news release dated 01/02/2010.

Source: Metals Economics Group, Rio Tinto, Northern Dynasty

Bubble size denotes size of asset

(contained Cu)

Resolution

La Granja

Oyu Tolgoi

Pebble

Comparison of undeveloped copper assets 1

Grade

(%Cu)

Reserves & resources (Mt)

Rio Tinto interests

7

Oyu Tolgoi Project Current Status: Investment & Ownership

Rio Tinto has invested over US$2 billion in the Oyu Tolgoi project over the

past 4 years

Rio Tinto

46.5%

Other

Shareholders

Ivanhoe Mines

66%

Government of

Mongolia 34%

Oyu Tolgoi LLC

• In December 2010, Rio Tinto and Ivanhoe

Mines announced a number of key agreements.

• These agreements:

• Provide Rio Tinto with a clear pathway to

49% ownership in Ivanhoe Mines

• Secure additional funding for the project;

and

• Enabled Rio Tinto to assume management

control

• By owning 46.5% of Ivanhoe, Rio Tinto has a

31% indirect ownership of OT

8

Transition to Rio Tinto Management

Intellectual Property

Global Experience

Oyu Tolgoi project has access to the full

functional and technical expertise of Rio

Tinto

Oyu Tolgoi project utilizes the suite of Rio

Tinto’s intellectual property relevant to the

project

Oyu Tolgoi project benefits from the

combined practical experience acquired

from operating in over 40 countries

worldwide

Functional and Technical Expertise

9

• Long term investment

• Sustainable development

Terms of Investment

• Stable tax environment

• Tax and royalty revenue

Taxation

• Flexible energy options

• Provision for roads

Infrastructure

• 90% Mongolian employees

• 5 year training & strategy plan

• Scholarships for local students

Employment & Training

• Mongolia First Initiative

• Transparent community plans

Regional development

• Detailed environmental impact

assessments and protection

plan

Environment

Oyu Tolgoi Investment Agreement

10Source: Oyu Tolgoi LLC

Capital expenditure

Education & Training

Employment

• US$2b invested over the past 4 years

• Estimated investment of over US$5b for the completion of the first

phase of the project through 2013

• Infrastructure plans include an airport, paved road to Gashuun

Sukhait, and 220kv power line

• 12 major construction projects, 100% managed by Mongolian

contractors

• US$10m annual budget for local community relations programs/projects

• Work towards ISO 14001 certification – environmental standard

• US$85m committed to education and training

• 150 scholarships to be awarded

• US$1m micro loan scheme to support South Gobi micro businesses

• Engaged around 3,000 suppliers

• Over 100 local suppliers from Khanbogd and DZ, valued at US$1.5m

A catalyst for Economic and Social development

A partner of choice: The Oyu Tolgoi Investment Agreement

11Source: Oyu Tolgoi LLC

Oyu Tolgoi will increase the Mongolian economy by over 35% by 2020

Mongolian real gross domestic product

MNT trillions and annual growth

• By 2020 Oyu Tolgoi project’s

impact will increase GDP by

around a third.

• Oyu Tolgoi will lift GDP per

person by MNT1.7 million

(over $1000) in 2020 – an

increase equivalent to over

60% of today's GDP per

person.

• GDP growth peaks at 22% in

2016.

• The average growth rate

from 2013-2020 is projected

to be 12.7% compared to

7.7% without Oyu Tolgoi.

0

5

10

15

20

25

30

0%

4%

8%

12%

16%

20%

24%

2010 2015 2020 2025

Real GDP in OT

scenario

% annual

growth

MNT

trillions

(2010)

Real GDP in reference

case

Annual growth in OT

scenario

Annual growth in

reference case

12Source: OT Economic Impact Assessment, School of Economic

Studies NUM and BAEconomics Pty Ltd

Influx of Investment into MongoliaJan 2011 compared to Jan 2010

13

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2010 I 2011 I

Production of wooden building doors &

windows (thous. m3)

0

50

100

150

200

2010 I 2011 I

Production of vacuum windows and doors (m2)

0

200

400

600

800

1000

1200

1400

1600

2010 I 2011 I

Production of sawn wood (m3)

0

0.05

0.1

0.15

0.2

0.25

2010 I 2011 I

Production of cement (thous. t)

- Production of wooden doors

and windows are up - 258%

- Production of sawn wood is

up -300%

- Production of cement has

doubled

- Net income of restaurants

was up - 800%

- Production of vacuum

windows and doors were up -

475%

Source: Statistics Office of Mongolia, 2011

0

1000

2000

3000

4000

5000

6000

7000

8000

2008 2009 2010

Net income of restaurants (mln tugrug)

Thank you

Questions?