Sample IBISworld Company Report

IBISWorld Company Premium Report Balance Date: 31 December 2008 Rio Tinto Plc - Rio Tinto Limited DISCLAIMER This product has been supplied by IBISWorld Pty Ltd ('IBISWorld') solely for use by its authorised licences strictly in accordance with their licence agreements with IBISWorld. IBISWorld makes no representation to any other person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Pty Ltd. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication - in papers, reports, or opinions prepared for any other person - it is agreed that it will be sourced to: IBISWorld Pty Ltd

CONTENTS Rio Tinto Plc - Rio Tinto Limited

© Copyright 2009, IBISWorld Pty Ltd 2

Contents Details ............................................................................................................................................................3

SYNOPSIS................................................................................................................................................................................... 3 Introduction................................................................................................................................................................................... 3 History/Background...................................................................................................................................................................... 3 Brands/Businesses/Products ....................................................................................................................................................... 4 Company Snapshot...................................................................................................................................................................... 7

Personnel .......................................................................................................................................................8 OTHER DIRECTORSHIPS .......................................................................................................................................................... 8

Financials .......................................................................................................................................................9 Industry Financial Averages ......................................................................................................................... 12 Segments ..................................................................................................................................................... 13

OPERATING DIVISIONS........................................................................................................................................................... 13 GEOGRAPHIC LOCATIONS ..................................................................................................................................................... 15

Competitive Environment.............................................................................................................................. 17 B1101 BLACK COAL MINING IN AUSTRALIA.......................................................................................................................... 17 B1311 IRON ORE MINING IN AUSTRALIA............................................................................................................................... 18 B1312 BAUXITE MINING IN AUSTRALIA ................................................................................................................................. 20 B1313 COPPER ORE MINING IN AUSTRALIA ........................................................................................................................ 22 B1421 DIAMOND AND GEMSTONE MINING IN AUSTRALIA ................................................................................................. 23 B1429 SALT AND OTHER MINERAL MINING IN AUSTRALIA ................................................................................................ 24 B1513 MINERAL EXPLORATION IN AUSTRALIA.................................................................................................................... 26 C2721 ALUMINA PRODUCTION IN AUSTRALIA ..................................................................................................................... 27 C2722 ALUMINIUM SMELTING IN AUSTRALIA....................................................................................................................... 28 B1315 MINERAL SAND MINING IN AUSTRALIA ..................................................................................................................... 30 B1319 MANGANESE AND OTHER MINERAL MINING IN AUSTRALIA .................................................................................. 31

Shareholders ................................................................................................................................................ 32 Subsidiaries .................................................................................................................................................. 33 Service Providers ......................................................................................................................................... 35 News ............................................................................................................................................................ 36

DETAILS Rio Tinto Plc - Rio Tinto Limited


Details Company Details Company Registered Name Rio Tinto Plc - Rio Tinto Limited Commonly Used Name Rio Tinto Major Business Line B131 - Metal Ore Mining in Australia ACN Number 004 458 404 ABN Number 96 004 458 404 ASX Code RIO Incorporated In Victoria Incorporation Date 17/12/1959 Company Type Public Company Ownership Type Local Sector Non Government Listed on Stock Exchange? Yes IBISWorld Top 2000 Rank 1 Company Contact Details STREET ADDRESS Floor Level 33 Street 120 Collins Street City MELBOURNE State Victoria Post Code 3000 Country Australia POSTAL ADDRESS PO Box GPO BOX 384D Post Office City MELBOURNE State Victoria Post Code 3001 Telephone Number 03 9283 3333 Facsimilie Number 03 9283 3707 Internet Web Address www.riotinto.com

SYNOPSIS Introduction Rio Tinto is a leading international mining group, combining Rio Tinto plc, a London listed public company headquartered in the UK, and Rio Tinto Limited, which is listed on the Australian Stock Exchange under the code RIO, and the Stock Exchange of New Zealand, code RIO. The two companies are joined in a dual listed company (DLC) structure, which was formed in 1995, as a single economic entity called the Rio Tinto Group. Rio Tinto explores, mines, and processes mineral and metal resources worldwide. Rio Tinto's main products are iron ore, coal, uranium, industrial minerals, aluminium, copper, gold and diamonds. Rio Tinto's Australian headquarters are based in Melbourne, Victoria.

History/Background 2008 - February: BHP Billiton formalised its offer to acquire the whole of the issued share capital of Rio Tinto plc at an exchange ratio of 3.4 BHP Billiton shares per Rio Tinto plc share, consisting of 80% BHP Billiton plc shares and 20%



BHP Billiton Limited shares, and the whole of the issued share capital of Rio Tinto Limited at an exchange ratio of 3.4 BHP Billiton Limited shares per Rio Tinto Limited share. The Rio Board rejected BHP Billiton's pre-conditional offer as not being in the best interests of shareholders. July: Rio Tinto agrees to sell the Kintyre uranium project located in Western Australia. November: BHP Billiton formally withdraws its bid for Rio Tinto. 2007 - October: Rio Tinto acquired Alcan Inc. for US$38.1 billion. Rio Tinto Alcan emerged out of Alcan Inc. and Rio Tinto's existing aluminium businesses. December: Rio Tinto invested US$300 million in the development of Eagle, a high-grade nickel and copper mine in Michigan, USA. 2006 - Norilsk Nickel and Rio Tinto created RioNor Exploration, a joint exploration and development company in Russia. 2005 - July: Rio Tinto reached agreement with Hancock Prospecting Pty Ltd to purchase a 50% interest in the Hope Downs iron ore assets. The development and ongoing operation of the assets will be managed by Rio Tinto. November: Rio Tinto sold its 14.46% shareholding in Lihir Gold. 2003 - October: Rio Tinto has announced the completion of the sale of its 50 per cent interest in Kaltim Prima Coal, Indonesia to PT Bumi Resources. 1997 - June: The RTZ Corporation became Rio Tinto plc and CRA Limited became Rio Tinto Limited, together known as the Rio Tinto Group. 1995 - December: RTZ and CRA were unified. 1993 - The Nerco and Cordero coal mining businesses in the US was acquired. 1989 - British Petroleum's international minerals businesses were acquired. CRA Limited acquired a 70.7% interest in Coal & Allied Industries' New South Wales operations. 1987 - Major strategic review undertaken, resulted in a decision to re-focus the company on mining activities. 1968 - The RTZ Corporation acquired the Borax group. 1962 - The RTZ Corporation, originally The Rio Tinto-Zinc Corporation, was formed by the merger of The Rio Tinto Company and The Consolidated Zinc Corporation. CRA Limited, originally Conzinc Riotinto of Australia Limited, was formed by a merger of the Australian interests of The Consolidated Zinc Corporation and The Rio Tinto Company. 1905 - The Consolidated Zinc Corporation was incorporated to treat zinc bearing mine waste at Broken Hill, New South Wales, Australia. 1873 - The British-based Rio Tinto Company was formed to mine ancient copper workings at Rio Tinto near Huelva in southern Spain.

Brands/Businesses/Products Rio Tinto explores mines and processes mineral and metal resources worldwide through a number of wholly or partly-owned subsidiaries, joint ventures, associated companies and other joint arrangements. Rio Tinto's operations are divided into eight major areas: Iron Ore



Rio Tinto Iron Ore (RTIO) operations are the group's largest operating segment with operations located in Australia, Brazil and Canada and development projects in Guinea and India. In Western Australia, Hamersley Iron operates eight mines, six wholly owned mines and it also operates two other joint venture mines; a 60% share in the Channar mine and a 54% share in the Eastern Range mine. RTIO also has a 53% share in Robe River Iron Associates, which operates two open pit mining operations, West Angelas and Pannawonica, in Western Australia. RTIO is the operator of the Iron Ore Company of Canada (IOC); RTIO has a 58.7% share in the joint venture. IOC operates an open pit mine, concentrator and pellet plant at Labrador City, Newfoundland. RTIO has a 100% interest in Mineracao Corumbaense Reuinda, known as Corumba, in Brazil. The iron ore is exported to South America and Europe. RTIO has a 60% share in the Hlsmelt iron making project at Kwinana, Western Australia. The Hlsmelt process is a direct iron smelting technology that converts iron ore fines into high quality pig iron. Energy - Coal & Uranium The Energy group comprises thermal and coking coal, and uranium operations. Rio's coal operations are represented by Rio Tinto Coal Australia and Coal & Allied in Australia and by Rio Tinto Energy America operations in the US. Rio's uranium operations consist of Energy Resources of Australia and the Rssing Uranium mine in Namibia. Rio Tinto Energy America (RTEA), formerly Kennecott Energy, is a wholly owned subsidiary. It has four open cut coal mines in the Powder River Basin of Montana and Wyoming. RTEA has a 50% non-operational interest in the Decker mine in Montana and a 20% interest in Colowyo Coal in Colorado. RTEA sales are made under contracts to electricity generators predominantly in the mid-western and southern states of the US. Rio Tinto Coal Australia (RTCA), formerly Pacific Coal, is wholly owned by the company and manages the group's Australian coal interests. This consists of Blair Athol (71% interest), Kestrel (80% interest), Tarong (100% interest), Hail Creek (82% interest) and the Clermont deposit (50% interest). RTCA also provides management services to Coal & Allied Industries, (75.7% interest), for the operation of four mines in the Hunter Valley, New South Wales. Rio has a 68.6% interest in Rossing Uranium, which produces and exports uranium oxide from Namibia to electricity producers in Europe, US and the Asia Pacific. Rio has a 68.4% interest in Energy Resources, which produces uranium oxide at the Ranger open pit mine in Northern Territory. Industrial Minerals Rio Tinto's Industrial Minerals business comprises Rio Tinto Minerals and Rio Tinto Iron & Titanium. Rio Tinto Minerals is made up of Rio Tinto Borax and Luzenac Talc operations in the US, South America, Europe and Australia, and Dampier Salt in Australia, which produce borates, industrial salt and talc. Rio Tinto Iron & Titanium has operations in North America, South Africa and Madagascar, which produce titanium dioxide feedstock. Rio Tinto Borax operations are at the Boron mine in California's Mojave Desert. Borates are used for vitreous applications such as fibreglass, bleach or in ceramics, fertilisers, flame retardants, wood preservatives and corrosion inhibitors. Luzenac Talc operations are primarily in France. There are also processing facilities in Australia, Austria, Belgium, Canada, France, Italy, Japan, Mexico, Spain, the UK and the US. Talc is used in paper, paints, cosmetics, ceramics, agricultural and plastics industries. Rio has a 64.9% interest in Dampier Salt and Rio manages Dampier's three salt operations, Dampier, Port Hedland and Lake MacLeod, in Western Australia. Dampier's salt is sold principally to the chemical industry in Asia.



Rio Tinto Iron & Titanium comprise the wholly owned QIT-Fer et Titane in Quebec, Canada and the 50% interest in Richards Bay Minerals (50%) in KwaZulu-Natal, South Africa. Both operations produce titanium dioxide feedstock via an ilmenite smelter. Titanium dioxide is used in pigment manufacture. Aluminium Rio Tinto's Aluminium product group is the wholly owned, integrated aluminium subsidiary, Rio Tinto Aluminium, (formerly Comalco) which owns and manages operations located in Australia, New Zealand and the UK. The Aluminium group has two operating business units - Mining & Refining, and Smelting. Rio Tinto Aluminium owns a bauxite mine at Weipa on the Cape York Peninsula, Queensland. The Bauxite mined from Weipa is shipped to refineries in Gladstone, Queensland. Rio Tinto Aluminium also holds ownership interests in smelters that primarily produce aluminium which include Bell Bay (100% interest) in Tasmania, Boyne Island Smelters (59% interest) in Queensland, Queensland Alumina (39%), Anglesey Aluminium (51% interest) in Wales, and Tiwai Point (79% interest), in New Zealand. The group also holds a 42% interest in a thermal power station as part of Gladstone Power Station in Australia. Diamonds The Diamond group comprises Rio's 60% interest in the Diavik Diamonds mine in Canada, the wholly owned Argyle mine in Western Australia, and a 78% interest in the Murowa mine in Zimbabwe. Rio has diamond sales offices in Antwerp, Belgium, and Mumbai, India. Copper The Copper group also produces gold and molybdenum as significant co-products. The Copper group comprises the wholly owned Kennecott Utah Copper, which operates the Bingham Canyon mine, Copperton concentrator and Garfield smelter complex in the US. The Copper group also has interests in the copper mines of Escondida (30% interest) in Chile, Grasberg (40% of joint venture) in Indonesia, Northparkes (80% interest) in Australia, and Palabora (58% interest) in South Africa. The Copper group manages Kennecott Minerals Company in the US, which has interests in the Greens Creek mine (70% interest) in Alaska, the Rawhide mine (51% interest) in Nevada, and the Cortez joint venture (40% interest). These operations produce the gold, silver, zinc and silver co-products. The Copper group has the following copper projects, Resolution (55% interest) in Arizona, Oyu Tolgoi (9.9% interest) Mongolia, La Granja (100% interest) in Peru, and Pebble (20% interest) in Alaska. Exploration Rio Tinto Exploration seeks mineral resources that will contribute to the growth of the Rio Tinto Group and replace depleting deposits. The Exploration group is organised into five geographically based teams in North America, South America, Australasia, Asia and Africa/Europe and a sixth project generation team that searches the world for new opportunities and provides specialised geological, geophysical and commercial expertise to the regional teams. Operational & Technical Excellence Operational and Technical Excellence, previously the Technology group, has bases in the UK, US and Australia, and is made up of four subdivisions: • Centres of Excellence • Evaluation



• Shared Expertise • Support There are Centres of Excellence for Mining, Processing, Assets Integrity, Health, Safety and Environment, Projects, Strategic Planning and Innovation.

Company Snapshot Rio Tinto Plc - Rio Tinto Limited is a Public Company that is ranked number 1 out of the top 2000 companies in Australia. The company generates the majority of its income from the Metal Ore Mining in Australia industry. In 2008 the company generated total revenue of $78,907,790,000 including sales and other revenue. In 2008 Rio Tinto Plc - Rio Tinto Limited had 39326 employees in Australia including employees from all subsidiaries under the company's control. The Chief Executive of Rio Tinto Plc - Rio Tinto Limited is Mr Tom Albanese whose official title is Chief Executive. The Chairman of Rio Tinto Plc - Rio Tinto Limited is Mr Paul Skinner whose official title is Non-Executive Chairman.

PERSONNEL Rio Tinto Plc - Rio Tinto Limited


Personnel Salutation Initials Full Name Title Position Type Mr P D Paul Skinner Non-Executive Chairman* Chairman Mr T Tom Albanese Chief Executive* Chief Executive Mr G R Guy Elliott Finance Director* Financial Controller Mr J P Jan du Plessis Non-Executive Director* Non-Executive Director Mr M Michael Fitzpatrick Non-Executive Director* Non-Executive Director Mr D L David Mayhew Non-Executive Director* Non-Executive Director Mr A F Andrew Gould Non-Executive Director* Non-Executive Director Sir D C David Clementi Non-Executive Director* Non-Executive Director Lord J John Kerr Non-Executive Director* Non-Executive Director Ms V Vivienne Cox Non-Executive Director* Non-Executive Director Mr R R Richard Goodmanson Non-Executive Director* Non-Executive Director Sir R I Roderick Eddington Non-Executive Director* Non-Executive Director Mr P M Paul Tellier Non-Executive Director* Non-Executive Director Mr L Y Yves Fortier Non-Executive Director* Non-Executive Director Mr R B Dick Evans Chief Executive Rio Tinto Alcan* Executive Director Mr S J Stephen Consedine Joint Company Secretary Company Secretary Mr B Ben Mathews Joint Company Secretary Company Secretary Ms D Debra Valentine Global Head of Legal Legal Officer Mr D Doug Ritchie Managing Director Strategy Sales Manager Mr A Andrew Vickerman Head of Communication & External Relations Marketing Manager Mr H Hugo Bague Head of Human Resources Personnel Manager Mr J John Becker Head of IT Computing/IT Manager Mr S E Stephen Creese Managing Director Rio Tinto Australia Other * Appointed to the Board of Directors Date Information Verified: 19 September, 2008

OTHER DIRECTORSHIPS Name Company Position Title Sir Roderick Eddington Allco Finance Group Limited Non-Executive Director Mr Richard Goodmanson Qantas Airways Limited Non-Executive Director

FINANCIALS Rio Tinto Plc - Rio Tinto Limited


Financials Balance Date 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005 31-Dec-2004 Accounting Period Date 12 Months 12 Months 12 Months 12 Months 12 Months Currency Units AUD000 AUD000 AUD000 AUD000 AUD000

PROFIT AND LOSS ACCOUNT Revenue Items Sales Revenue 78,612,257 43,026,390 25,652,800 24,143,000 19,910,000 Other Revenue 295,535 194,126 N/A N/A N/A Total Revenue 78,907,792 43,220,516 25,652,800 24,143,000 19,910,000 Depreciation 5,034,233 3,064,001 1,914,000 1,697,000 1,605,000 R&D Expenditure N/A 99,960 15,000 25,000 22,000 Interest Interest Received 295,535 194,126 121,000 104,000 38,000 Interest Expense 2,343,997 779,401 182,700 219,000 203,000 Audit Audit Fees 89,300 55,800 17,700 15,300 15,900 Audit Other 143,600 27,900 16,300 26,500 15,000 Total 232,900 83,700 34,000 41,800 30,900 Profit and Loss Profit Before Tax 13,296,169 14,249,413 11,693,000 9,275,000 5,293,000 Income Tax Expense 5,421,035 3,027,783 2,709,700 2,301,000 848,000 Outside Equity Interest 1,351,637 628,736 489,900 359,000 -73,000 NPAT 5,325,422 10,592,894 8,493,400 6,615,000 4,518,000 Extraordinary Items N/A N/A N/A 0 0 Significant Items 0 0 0 N/A N/A Dividends 2,800,337 2,183,191 2,938,100 1,447,000 4,518,000

BALANCE SHEET Current Assets Cash At Bank 1,710,915 2,383,112 840,500 3,018,000 537,000 Trade Debtors 7,824,429 9,416,550 2,426,000 2,195,000 1,820,000 Inventory 8,122,861 7,818,634 2,900,400 2,598,000 2,675,000 Other Current Assets 9,048,580 12,153,144 1,683,700 1,679,000 1,151,000 Total Current Assets 26,706,785 31,771,440 7,850,600 9,490,000 6,183,000 Non Current Assets Receivables 1,609,506 2,584,481 1,122,500 892,000 0 Investments 7,320,281 8,321,333 2,552,100 2,895,000 2,976,000 Property & Plant Equipment 60,487,571 60,799,042 25,358,200 22,351,000 22,912,000 Intangible Assets 29,815,695 40,431,768 1,398,800 1,573,000 1,732,000 Other Non Current Assets 3,886,862 2,542,468 1,106,500 604,000 2,246,000 Total Non Current Assets 103,119,915 114,679,092 31,538,100 28,315,000 29,866,000 Total Assets 129,826,700 146,450,532 39,388,700 37,805,000 36,049,000 Current Liabilities Trade Creditors 10,426,294 9,462,908 3,075,200 1,338,000 1,204,000 Interest Bearing Debt 14,323,297 11,747,508 1,701,400 1,525,000 1,172,000 Provisions 1,196,626 1,109,704 417,900 407,000 264,000



Other Current Liabilities 6,070,053 6,003,414 1,405,700 2,801,000 1,393,000 Total Current Liabilities 32,016,270 28,323,534 6,600,200 6,071,000 4,033,000 Non-Current Liabilities Interest Bearing Debt 43,061,159 56,000,947 2,291,800 3,530,000 5,321,000 Provisions 5,216,769 4,683,647 4,912,500 4,903,000 5,151,000 Other Non Current Liabilities 16,993,251 19,351,735 3,448,500 3,336,000 4,291,000 Total Non Current Liabilities 65,271,179 80,036,329 10,652,800 11,769,000 14,763,000 Total Liabilities 97,287,449 108,359,863 17,253,000 17,840,000 18,796,000 Shareholders' Equity Share Capital 1,623,993 2,015,142 1,254,900 1,293,000 1,552,000 Reserves -3,363,881 3,500,059 2,923,300 -30,000 484,000 Retained Earnings 24,822,025 27,573,107 16,444,500 15,086,000 11,506,000 Other 2,640,980 2,203,473 1,316,600 3,398,000 3,475,000 Total Equity 32,539,251 38,090,669 22,135,700 19,965,000 17,253,000 Other Number of Employees 39,326 39,000 35,245 31,854 32,426 Number of Shares on Issue 456,815,943 456,815,943 456,815,943 456,815,943 456,815,943 Qualified Audit Report No No No No No * IBISWorld estimate



Total Revenue

Total Revenue Growth Rate

Net Profit After Tax

Net Profit After Tax Growth Rate

INDUSTRY FINANCIAL AVERAGES Rio Tinto Plc - Rio Tinto Limited


Industry Financial Averages

Financial Ratios Industry Average

Rio Tinto 31-Dec-2008 Unit

Return On Shareholders Funds 20.96 16.37 Percent Return On Total Assets 7.31 4.10 Percent Gearing 61.23 74.94 Percent Interest Cover 9.96 6.67 Times Current Ratio 1.06 0.83 Times NPAT/Employee 222 135 A$ 000 Pre-Tax Margin 22.77 16.85 Percent EBITDA 1,483,356 20,674,400 A$ 000 Effective Tax Rate 36.50 40.77 Percent Days Stock Held 36.50 37.57 Days Debtors T/O 43.12 36.19 Days Creditors T/O 43.01 48.23 Days Revenue/Employee 1,674 2,007 A$ 000 Net Assets Per Share 3.65 71.23 A$ Dividend Per Share 0.27 6.13 A$ Earnings Per Share 0.69 11.66 A$ Dividend Payout Ratio 39.27 52.58 Percent Asset Turnover Ratio 0.62 0.61 Times Growth Ratios Industry

Average Rio Tinto

31-Dec-2008 Unit

Revenue Growth 43.13 82.57 Percent NPAT Growth -33.02 -49.73 Percent Asset Growth 4.35 -11.35 Percent Employees Growth 4.25 0.84 Percent Dividend Growth Rate -6.90 28.30 Percent Companies included in Industry Averages Calculations operate in the Metal Ore Mining in Australia industry.

SEGMENTS Rio Tinto Plc - Rio Tinto Limited


Segments Balance Date: 31 December, 2008 Profit Definition: Earnings Before Interest & Tax

OPERATING DIVISIONS Segment Name Revenue

AUD000 Profits

AUD000 Assets

AUD000 Iron Ore 23,942,665 13,184,619 19,392,298 Energy & Minerals 15,267,849 6,338,063 14,281,285 Aluminium 33,231,729 -9,009,465 62,977,886 Copper & Diamonds 6,123,655 4,696,685 10,000,376 Exploration & Evaluation N/A -228,895 N/A Other 46,359 -212,959 2,290,395 Equity Accounted Associates N/A N/A 8,066,362 Unallocated 295,535 N/A 12,818,098 Operating Divisions - Revenue

Segment Name % of Total Revenue

Iron Ore 30.3%

Energy & Minerals 19.3%

Aluminium 42.1%

Copper & Diamonds 7.8%

Other 0.1%

Unallocated 0.4% Operating Divisions - Assets

Segment Name % of Total Assets

Iron Ore 14.9%

Energy & Minerals 11.0%

Aluminium 48.5%

Copper & Diamonds 7.7%

Other 1.8%

Equity Accounted Associates 6.2%

Unallocated 9.9%



Operating Divisions - Key Ratios Segment Name Profit as

% of Revenue Profit as

% of Assets Iron Ore 55.1% 68.0% Energy & Minerals 41.5% 44.4% Aluminium -27.1% -14.3% Copper & Diamonds 76.7% 47.0% Exploration & Evaluation N/A N/A Other -459.4% -9.3% Equity Accounted Associates N/A N/A Unallocated N/A N/A Company 18.7% 11.4% Operating Divisions - Industries by Operating Segment

Historical

Growth Rates 2004/05-2008/09

Forecast Growth Rates

2009/10-2013/14 Iron Ore B1311 - Iron Ore Mining in Australia 41.1% -6.3% Energy & Minerals B1101 - Black Coal Mining in Australia 36.3% -8.0% B1315 - Mineral Sand Mining in Australia 2.8% 2.2% B1319 - Manganese and Other Mineral Mining in Australia 36.0% 3.9% B1429 - Salt and Other Mineral Mining in Australia 0.4% 0.2% Aluminium B1312 - Bauxite Mining in Australia 2.4% 4.9% C2721 - Alumina Production in Australia 8.2% 0.2% C2722 - Aluminium Smelting in Australia -0.3% -9.3% Copper & Diamonds B1313 - Copper Ore Mining in Australia 10.6% 0.2% B1421 - Diamond and Gemstone Mining in Australia 9.6% 1.7% Exploration & Evaluation B1513 - Mineral Exploration in Australia 17.7% -3.0% Other No Industries Equity Accounted Associates No Industries Unallocated No Industries GDP Growth Rate 2.6% 2.7%



GEOGRAPHIC LOCATIONS Segment Name Revenue

AUD000 Profits

AUD000 Assets

AUD000 Australia & New Zealand 35,713,352 N/A 37,751,673 North America 24,004,959 N/A 50,565,425 Europe & Other Countries 17,042,507 N/A 15,256,260 South America 3,956,400 N/A 1,264,715 Africa 3,324,767 N/A 3,479,777 Indonesia 76,781 N/A 856,182 Unallocated -5,210,974 14,768,048 20,652,668 Total 78,907,790 14,768,050 129,826,700 Geographic Locations - Revenue

Segment Name % of Total Revenue

Australia & New Zealand 42.5%

North America 28.5%

Europe & Other Countries 20.3%

South America 4.7%

Africa 4.0%

Indonesia 0.1% Geographic Locations - Assets

Segment Name % of Total Assets

Australia & New Zealand 29.1%

North America 38.9%

Europe & Other Countries 11.8%

South America 1.0%

Africa 2.7%

Indonesia 0.7%

Unallocated 15.9% Geographic Locations - Ratios Profit as

% of Revenue Profit as

% of Assets Australia & New Zealand N/C N/C North America N/C N/C Europe & Other Countries N/C N/C South America N/C N/C Africa N/C N/C Indonesia N/C N/C Unallocated -283.4 71.5



Company 18.7 11.4

COMPETITIVE ENVIRONMENT Rio Tinto Plc - Rio Tinto Limited


Competitive Environment B1101 BLACK COAL MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 78,484 Industry Turnover Growth Rate 2007/2008 116.13 Industry Concentration Level Low Estimated Rio Tinto Market Share (%) 7.80 Number of Enterprises in Industry 100 Rio Tinto is one of the world's leading mining and exploration companies. It combines Rio Tinto plc, a London listed public company headquartered in the UK, and Rio Tinto Limited, which is listed on the Australian Stock Exchange. The two companies are joined in a 'dual listed companies' (DLC) structure as a single economic entity, called the Rio Tinto Group. In addition to coal, Rio Tinto's major products worldwide include iron ore, aluminium, copper, diamonds, uranium, gold and industrial minerals (borates, titanium dioxide, salt and talc). Rio Tinto has substantial coal operations in Australia, located in both New South Wales and Queensland. In Queensland, Rio Tinto Coal Australia operates the Blair Athol, Hail Creek and Kestrel Mines and the Clermont Mine Project. In New South Wales, Rio Tinto Coal Australia manages Coal & Allied's operations at Mount Thorley Warkworth, Hunter Valley Operations and Bengalla. Rio Tinto Coal Australia mines hard coking coal the Hail Creek (82% Rio Tinto) and Kestrel (80% Rio Tinto) mines, both of which are located in Queensland. The Kestrel mine also produces steaming coal. The company mines steaming coal at the Blair Athol mine (57.2% Rio Tinto) and is developing the nearby Clermont steaming coal mine, which is due to reach full capacity in 2013. Blair Athol is due to close in 2015, when its reserves will be depleted, but the Clermont mine will utilise Blair Athol's stockpiling and rail facilities. Until the end of January 2008, Rio Tinto Coal Australia also owned and operated the Tarong steaming coal mine in Queensland. The mine, which is the sole supplier of coal to the adjacent Tarong Power Station, was purchased by the Queensland State Government. Rio Tinto holds 75.7% of Coal & Allied, which is managed by Rio Tinto Coal Australia. Coal & Allied, has three mining operations in the Hunter Valley of New South Wales: the Hunter Valley Operations (100% ownership); Mount Thorley Warkworth (80% Coal & Allied); and Bengalla (40% Coal & Allied). The operations produce mainly thermal coal and some semi-soft coking coal. Coal & Allied is also developing the nearby Mount Pleasant Project and the Lower Hunter Lands Project. Rio Tinto's Australian coal mine production amounted to 29.5 million tonnes in 2008 (26.1 million tonnes in 2007), consisting of 7.4 million tonnes of hard coking coal (6.2 million tonnes in 2007) and 22.1 million tonnes of semi-soft coking and steaming coal (19.9 million tonnes in 2007). Production increased in 2008, despite the sale of the Tarong steaming coal mine, effective end-January 2008. The company produced 37.1 million tonnes of coal in 2006, consisting of 5.9 million tonnes of hard coking coal and 31.2 million tonnes of semi-soft coking coal and steaming coal. The decline was largely due to heavy rain that disrupted coal mining activity. Rio Tinto's coal production from its Australian operations amounted to 38.1 million tonnes in 2005, 39.7 million tonnes in 2004 and 34 million tonnes in 2003. In early November 2007, BHP Billiton made merger overtures to Rio Tinto Ltd, offering three BHP shares for each Rio Tinto share. Rio Tinto rejected the proposed offer, stating that it undervalued the company. The Chinese Government owned Chinalco, which has substantial operations in the aluminium sector, purchased a 9% stake in Rio Tinto in early February. It is unclear whether Chinalco's aim is to secure a bargaining position regarding a possible future sale of the combined entity's aluminium assets (assuming the merger proceeds), or whether it will seek to block the merger. Chinese buyers of iron ore and, to a lesser extent, coal, have expressed their concern over the increase in concentration represented by a possible merger between BHP Billiton and Rio Tinto. In the wake of the Chinalco purchase, BHP Billiton lifted its offer for Rio Tinto to 3.4 of its own shares for each Rio Tinto share. The Rio Tinto



board rejected that offer, arguing that it significantly undervalued the company. The global financial crisis, together with concern over Rio Tinto's debt levels, saw BHP Billiton withdraw its merger bid in December 2008. In February 2009, Rio Tinto and Chinalco unveiled plans for Chinalco to increase its holding in Rio Tinto 18% and to take direct ownership positions in some of Rio Tinto's metallic mineral assets. The planned acquisition must gain approval from the Foreign Investment Review Board (FIRB) to proceed. The Australian Treasurer may also over-rule the deal if it is deemed not to be in the national interest. The accompanying table shows the financial performance of Rio Tinto's Australian coal mining operations. Revenue soared on the back of higher output and, more particularly soaring coal prices. Revenue fell in 2007, due to lower production levels, a much stronger Australian dollar and lower US dollar prices. That decline follows gains over the previous three years. A small increase in revenue was made in 2006, as lower US dollar coal prices fell offset most of the boost to revenue provided by higher output and a marginally weaker Australian dollar. Larger increases in revenue occurred in 2005 and 2004 as production rose, although the appreciation of the Australian dollar reduced the benefits flowing from higher US dollar prices. Shifts in earnings before interest and tax (EBIT) were more marked than those in revenue. Most of the increase in revenue in 2008 flowed directly into profit. In 2007 Rio Tinto reported that EBIT was reduced by increases in the cost of basic materials, fuel, explosives and labour. EBIT fell in 2006 due mainly to higher energy and demurrage costs, but large gains made in 2004 and 2005 on the back of rising revenue. Financial Performance - Rio Tinto Australian Coal Mining Operations

Years Billion Dollars

Revenue Percent Growth Billion Dollars

EBIT Percent Growth Units

Employees Percent Growth 2004 2.09 N/C 0.51 N/C 1999 N/C 2005 3.02 44.5% 1.18 131.4% 2228 11.5% 2006 3.11 3.0% 1.00 -15.3% 2462 10.5% 2007 2.71 -12.9% 0.41 -59.0% 2832 15.0% 2008 6.03 122.5% 3.17 673.2% N/A N/C Source: Annual Report Note: Data converted from US dollars. Major Competitors Market Share BHP Billiton Limited 15.50 Xstrata Coal Investments Australia Pty Limited 9.50 Rio Tinto Plc - Rio Tinto Limited 7.80 Anglo Coal Holdings Australia Ltd 5.00

B1311 IRON ORE MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Billion Dollars 39 Industry Turnover Growth Rate 2007/2008 71.73 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 53.00 Number of Enterprises in Industry 19 Rio Tinto Ltd participates in this industry via Hammersley Iron Pty Ltd (a wholly-owned subsidiary) and the Robe River joint venture (53% Rio Tinto). Hammersley Iron is Australia's largest producer of iron ore. Ore is mined at several sites in Western Australia before being transported to the company's port at Dampier for export. Most operations other than the Channar mine (60%



Hammersley and 40% China Metallurgical Import and Export Corporation) are wholly owned by Rio Tinto. Total output from these mines amounted to 110 million tonnes in 2008, compared with 107.9 million tonnes in 2007, 93.3 million tonnes in 2006, 86.1 million tonnes in 2005 and 78.1 million tonnes in 2004. In August 2000, Rio Tinto acquired North Ltd, one of Australia's other major iron ore miners and the major participant in the Robe River joint venture. The other joint venture partners are Mitsui Iron Ore Development Pty Ltd (33%), Nippon Steel Australia Pty Ltd (10.5%) and Sumitomo Metal Australia Pty Ltd (3.5%). The acquisition by Rio Tinto was prompted by the desire to extract synergies from mine development and production and reduce costs. The Robe River operations mine ore at the East Deepdale deposits at Pannawonica, and rail it to Cape Lambert, where it is crushed and screened prior to being exported as fines - material less than 6mm in diameter. After acquiring Robe River, Rio Tinto pursued cost savings and operational benefits from integrating aspects of that operation and Hammersley. In 2002, the Hammersley power grid was extended to include Robe River's new West Angelas mine and the Pilbara Rail Company was formed to integrate the rail networks of the two operations. The West Angelas mine at Robe River began supplying high grade Marra Mumba ore during 2002, with shipments being made under contract to steel mills in Japan and Korea and trial cargoes being sent to mills in China and Europe. The Robe River operation contributed 26.6 million tonnes of iron ore to Rio Tinto's total production in 2008, compared with 27.3 million tonnes in 2007, 28.1 million tonnes in 2006, 27.7 million tonnes in 2005 and 25.7 million tonnes in 2004. Rio Tinto holds a 50% stake in the Hope Downs mine, located just 50 kilometres from its Yandi and West Angelas operations. Work on the 22 million tonnes per year project commenced in April 2006 at a cost of US$1 billion and production commenced in late 2007. In August 2007 Rio Tinto announced that it was embarking on a fast-tracked expansion of the project. At the completion of the expansion, expected by early 2009, the mine will have a capacity of 30 million tonnes per annum. Rio Tinto's share of output from Hope Downs in 2008 was 5.5 million tonnes. Overall, Rio Tinto's output from its iron ore mines in Australia amounted to 142.1 million tonnes in 2008, compared with 135.2 million tonnes in 2007. Nonetheless, production for 2008 is lower than originally envisaged by Rio Tinto. The global financial crisis caused the miner to slash its planned iron ore output in the final quarter of 2008. Rio Tinto lifted the nameplate capacity of the Cape Lambert port from 55 to 80 million tonnes of iron ore per year in 2008. As a result, the company's mine, rail and port capacity in the Pilbara is matched, and capable of exporting 220 million tonnes per year. A decision on further expansion of the port was delayed in the wake of the softening iron ore market and Rio Tinto's own need to refinance debt. Rio Tinto had previously outlined plans to boost its capacity in the Pilbara, including the port, to 320 million tonnes by 2012 at a cost of about US$10 billion. The accompanying table shows Rio Tinto's revenue and earnings before interest and tax from its Australia iron ore operations, converted from US dollars at the average exchange rate for each year. Revenue surged in 2008, reflecting higher tonnages and much the much higher iron ore prices applying from April 1, 2008. Rio Tinto and BHP Billiton secured price rises of about 85% at that time. A large part of the increase in revenue flowed through to earnings before interest and tax. Revenue expanded strongly in 2007 and 2006, reflecting both a substantial increase in output and much higher prices. Earnings before interest and tax followed a similar path to revenue. Revenue surged in 2005 on the back of booming iron ore prices and a 14% increase in output, having already expanded in 2004 due to higher production and higher prices. In November 2007, BHP Billiton made merger overtures to Rio Tinto Ltd, offering three of its own shares for each Rio Tinto share. Rio Tinto rejected the proposed offer and subsequent higher offers, stating that they undervalued the company. The Chinese Government-owned firm, Chinalco, which has substantial operations in the aluminium sector, purchased a 9% stake in Rio Tinto in February 2008 (currently 9.9%). Chinese buyers of iron ore and, to a lesser extent, coal, expressed their concern over the increase in concentration represented by a possible merger between BHP Billiton and Rio Tinto. The global financial crisis, together with concern over Rio Tinto's debt levels, saw BHP Billiton withdraw its merger bid in December 2008. In February 2009, Rio Tinto and Chinalco unveiled plans for Chinalco to increase its holding in Rio Tinto 18% and to take direct ownership positions of 15% to 50% Rio Tinto's iron ore, bauxite, alumina and aluminium projects. The plan also involves Chinalco entering into a strategic alliance with Rio Tinto in its iron ore, copper and aluminium



businesses and becoming an equal partner in an iron ore marketing company that will sell 30% of the output from the Hamersley iron ore operations. If the deal proceeds, Chinalco plans to appoint two directors to the Rio Tinto boards in Australia and Britain. The planned acquisition must gain approval from the Foreign Investment Review Board (FIRB) to proceed. The Australian Treasurer may also over-rule the deal if it is deemed not to be in the national interest. Financial Performance - Rio Tinto Plc - Rio Tinto Limited Australian Iron Ore Operations


Revenue Percent Growth

Growth Billion Dollars

EBIT Percent Growth

Growth Units

Employees Percent Growth

Growth 2004 3.36 N/C 1.15 N/C 3108 N/C 2005 5.90 75.6% 3.13 172.2% 3479 11.9% 2006 7.70 30.5% 4.22 34.8% 4839 39.1% 2007 9.29 20.6% 4.72 11.8% 5679 17.4% 2008 16.11 73.4% 9.91 110.0% N/A N/C Source: Annual Report Major Competitors Market Share Rio Tinto Plc - Rio Tinto Limited 53.00 BHP Billiton Limited 42.00

B1312 BAUXITE MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 1,726 Industry Turnover Growth Rate 2007/2008 0.84 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 34.00 Number of Enterprises in Industry 3 Rio Tinto is one of the world's leading mining and exploration companies. It combines Rio Tinto plc, a London listed public company headquartered in the UK, and Rio Tinto Limited, which is listed on the Australian Stock Exchange. The two companies are joined in a 'dual listed companies' (DLC) structure as a single economic entity, called the Rio Tinto Group. Rio Tinto's major products include iron ore, aluminium, copper, diamonds, energy products, gold and industrial minerals (borates, titanium dioxide, salt and talc. Rio Tinto owns and operates the Weipa and Andoom mines on the Cape York Peninsula in Queensland and, since late October 2007, the Gove mine on the Gove Peninsula of the Northern Territory. The Gove mine was formerly owned by Alcan Inc, which was acquired by Rio Tinto in a US$38 billion takeover. The takeover made Rio Tinto the world's largest producer of aluminium and bauxite, but also burdened it with a substantial amount of debt. Rio Tinto's aluminium business, including its bauxite operations, is run from Brisbane. Production from the mines at Weipa has been lifted progressively from about 11.9 million tonnes in 2003 to 20 million tonnes in 2008. Rio Tinto's decision to construct the Yarwun Alumina Refinery (which commenced operations in Gladstone in the last quarter of 2004) was accompanied by a decision to expand the operation at Weipa to provide the necessary bauxite input. Rio Tinto approved an expansion at the Yarwun refinery in mid 2007 that will lift its capacity from 1.4 million tonnes of alumina per year to about 3.4 million tonnes. The US$1.8 billion expansion is expected to come on stream by 2011. In mid 2008, the company approved a feasibility study into the development of a new bauxite operation south of the existing Weipa bauxite mine and port. If approved, the new operation would lift Weipa's total bauxite production to 35 million tonnes. Until the completion of the Yarwun Alumina Refinery in 2004, most of the bauxite produced at Weipa was refined domestically at Queensland Alumina Ltd's refinery in Gladstone. Queensland Alumina Ltd is owned by Rio Tinto (80%) and the Russian-based firm Rusal (20%). Rio Tinto's holding increased from 38.6% in late 2007 when it



acquired Alcan and its 41.4% holding in the refinery. Rio Tinto sells bauxite mined at Weipa to the other participant in the smelter and any additional output is exported. Gove has bauxite reserves of about 190 million tonnes and produced about 5.2 million tonnes of bauxite in 2008, up from 4.4 million tonnes in 2006-07. The increase in output was due to mine expansion. About 5.4 million tonnes of bauxite was mined in 2005-06, 5.8 million tonnes in 2004-05 and 6 million tonnes in both 2003-04 and 2002-03. In addition to the bauxite mine, the complex also includes an alumina refinery, which is being expanded from an output level of 2 million tonnes per year to three million tons per year. Bauxite not refined on-site is exported. The performance of Rio Tinto's aluminium, alumina and bauxite businesses reflect the interaction of production volumes and prices. The large increase in revenue in 2008 and to a lesser extent, 2007, reflects both higher prices and the acquisition of Alcan in late 2007. The large jump in revenue in 2008 also led to a substantial increase in earnings before interest and tax (EBIT), but in the previous year EBIT fell, due mainly to cost pressures and much higher depreciation charges. Revenue and profit rose strongly over 2004 to 2006 on the back of stronger US dollar aluminium prices (although the benefit of the higher price was partly offset by a firmer Australian dollar, especially in 2004) and higher output. The increase follows falls in the sector's performance in 2003 and 2002 that were due to the firmer Australian currency and, in 2002, lower US dollar prices. In November 2007, BHP Billiton made merger overtures to Rio Tinto Ltd, offering three of its own shares for each Rio Tinto share. Rio Tinto rejected the proposed offer and subsequent higher offers, stating that they undervalued the company. The Chinese Government-owned firm, Chinalco, which has substantial operations in the aluminium sector, purchased a 9% stake in Rio Tinto in February 2008 (currently 9.9%). Chinese buyers of iron ore and, to a lesser extent, coal, expressed their concern over the increase in concentration represented by a possible merger between BHP Billiton and Rio Tinto. The global financial crisis, together with concern over Rio Tinto's debt levels, saw BHP Billiton withdraw its merger bid in December 2008. In February 2009, Rio Tinto and Chinalco unveiled plans for Chinalco to increase its holding in Rio Tinto 18% and to take direct ownership positions of 15% to 50% Rio Tinto's iron ore, bauxite, alumina and aluminium projects. The plan also involves Chinalco entering into a strategic alliance with Rio Tinto in its iron ore, copper and aluminium businesses and becoming an equal partner in an iron ore marketing company that will sell 30% of the output from the Hamersley iron ore operations. If the deal proceeds, Chinalco plans to appoint two directors to the Rio Tinto boards in Australia and Britain. The planned acquisition must gain approval from the Foreign Investment Review Board (FIRB) to proceed. The Australian Treasurer may also over-rule the deal if it is deemed not to be in the national interest. Financial Performance - Rio Tinto Plc - Rio Tinto Limited Bauxite, Alumina and Aluminium Segment

Years Million Dollars

Revenue Percent Growth Million Dollars


Employees Percent Growth 2004 3221 N/C 680 N/C 4077 N/C 2005 3600 11.8% 762 12.1% 4293 5.3% 2006 4635 28.8% 1458 91.3% 4347 1.3% 2007 8713 88.0% 1291 -11.5% 11428 162.9% 2008 27720 218.1% 2751 113.1% N/A N/C Source: Annual Report Note: Employment is the total for Rio Tinto's aluminium sector. Major Competitors Market Share Alcoa of Australia Limited 45.00 Rio Tinto Plc - Rio Tinto Limited 34.00 BHP Billiton Limited 18.00



B1313 COPPER ORE MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 4,745 Industry Turnover Growth Rate 2007/2008 -20.50 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 3.00 Number of Enterprises in Industry 16 Rio Tinto Ltd produces copper at its Northparkes mine (of which it owns 80%) in New South Wales. The other 20% of Northparkes is owned by the Sumitomo Group of Japan. Copper concentrates produced at Northparkes are transported by rail to Port Kembla for export and shipped under long term contracts to smelters in Japan (74%), China (13%) and India (13%). Copper concentrate production from the Northparkes mine commenced during the second half of 1996 (prior to that time, the mine had been producing gold only from an open cut pit). Underground operations were developed in two stages, known as Lift 1 and Lift 2. The Lift 1 operation commenced production in December 1996 and by 2001, the mine was producing 55,100 tonnes of copper in concentrate form Copper production at Northparkes fell to 24,800 tonnes in 2008, down from 43,100 tonnes in 2007, 83,300 tonnes in 2006 and lower than the 54,000 tonnes mined in 2005. Output was 30,000 tonnes in 2004. Lower output in 2008 was due the continued processing of lower grade material which commenced in 2007. Rio Tinto reported that lower production at Northparkes in 2007 and a consequently weaker performance occurred due to the premature shutdown of the Lift 2 underground area during the first half of the year, resulting in the processing of low grade open pit stockpiles and increased costs. Rising production in 2005 and 2006 was due to an increase in the volume of ore mined and milled, as well as higher ore grades associated with the commencement of mining at Lift 2. That orebody constitutes an ore reserve of 25 million tonnes grading 1.2% copper and 0.48 grams of gold per tonne gold. In late 2008, Rio Tinto announced a number of measures designed to reduce its debt by US$10 billion in 2009. These measures include the suspension of the $229 million E48 block cave project at Northparkes. Current plans involve work on E48 recommencing when conditions improve. The E48 development was approved in 2006 and is designed to extend the life of the mine to 2016. The accompanying table shows financial information for Rio Tinto business segments including Northparkes. Northparkes was grouped under 'other' within Rio Tinto's copper operations until 2006, when it was listed separately (with separate results also stated for 2005). For years prior to 2005, the associated table quotes revenue and earnings before interest and tax figures for Rio Tinto's 'other' copper category, which includes ventures other than Northparkes in Australia and overseas, namely Rio Tinto's interests Somincor and Zinkgruvan (prior to their sale in the first half of 2004) and the Peak gold mine in Australia and the Alumbrera operation (prior to their sale in the first half of 2003). In addition, Rio Tinto quotes revenue and earnings before interest and tax in US dollars, and these have been converted into Australian dollars at the average exchange rate for the year. Revenue and earnings before interest and tax fell in 2008, reflecting the lower production levels described above, the slump in US dollar copper prices in the second half of the year and a firming of the Australian dollar. Performance had already weakened in 2007 as a result of lower output and a stronger Australian dollar, which combined more than offset the favourable effect of higher US dollar copper prices. The large performance gain in 2006 was due to both much higher levels of production at Northparkes, as well as substantially higher copper prices. Declines in revenue for 2004 reflect the sale of operations. Financial Performance - Rio Tinto Pld - Rio Tinto Limited Other Operations, Including Copper Mining

Years Million Dollars



Employees Percent Growth 2004 230 N/C 92 N/C N/A N/C 2005 229 -0.4% 100 8.7% 203 N/C 2006 580 153.3% 396 296.0% 220 8.4%



2007 442 -23.8% 226 -42.9% 220 0.0% 2008 146 -67.0% -19 -108.4% N/A N/C Source: Annual Report Note: Employment is total at Northparkes only, excluding contractors Major Competitors Market Share Xstrata Queensland Limited 28.00 BHP Billiton Limited 22.00 Aditya Birla Minerals Limited 10.00 Newcrest Mining Limited 10.00 Rio Tinto Plc - Rio Tinto Limited 3.00

B1421 DIAMOND AND GEMSTONE MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 1,052 Industry Turnover Growth Rate 2007/2008 30.66 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 82.00 Number of Enterprises in Industry 2 Rio Tinto owns the Argyle diamond mine (the largest diamond mine in the world), making it by far the most substantial player in this industry. The mine is operated by Argyle Diamond Mines Pty Ltd and output is marketed by Argyle Diamond Sales Ltd. Both of these operations are wholly owned by Rio Tinto. Until 2000, the Argyle mine was owned and operated by a joint venture between Rio Tinto (59.7%) and Aston Mining Ltd (40.3%). However, Rio Tinto acquired Ashton Mining in late 2000, in the wake of a failed takeover bid for the company by the South African De Beers group. Although Argyle is the largest diamond mine in the world, it has a relatively low proportion of high quality stones. Only 5% of output is of gem quality and a further 70% is of near gem quality. The remaining 25% of output consists of industrial diamonds. Worldwide, diamond output averages 17% gem, 40% cheap gem and 43% industrial quality diamonds. The presence of rare dark pink gems at Argyle partly compensates for the low percentage of gem quality stones. As a result of their relative scarcity, good quality pink diamonds can fetch more than twice as much as blue-white stones of comparable grade and purity. All gem and near gem diamonds produced at Argyle are sold as polished stones and account for more than 95% of the value of Argyle's rough diamond sales. The open pit mine at Argyle is based around the AK1 pipe, a vertical geological formation consisting of diamond-bearing lamproite (although geologists initially believed the diamond-bearing rock to be kimberlite). The AK1 open pit is two kilometres long, one kilometre wide and covers an area of almost 300 hectares. Diamond-bearing ore is transported 2.5 kilometres to a primary crusher to commence the diamond extraction process in the main recovery plant. In the past, Argyle also conducted alluvial mining of ancient creek beds where diamonds had been washed down from the AK1 pipe over millions of years. This source of diamonds is now largely depleted. Production at Argyle has typically fluctuated in the range 20 million to 30 million carats, depending on the grade of ore mined and also on weather conditions (extremely heavy rain can slow production rates). At the end of 2005, Rio Tinto announced that it would spend US$760 million on an underground mine at Argyle, as well as an additional US$150 million on a related open pit cut-back. The Western Australian State Government had introduced a lower royalty rate for diamonds mined underground (5%, compared with 7.5%) and softened downstream processing obligations earlier in the year in order to facilitate the transformation of Argyle to an underground operation. Under the new arrangements, Argyle's fancy pink stones are still cut and polished in Perth.



The underground and cut-back developments will extend the mine's life from 2008 to 2018. The open-pit cutback will also help to maintain production levels during the transition period (and beyond) as the open pit operation is wound down and the underground mine is ramped up. However, Rio Tinto has indicated that variability in production levels is anticipated as the open pit reaches the end of its life and the transition to underground operations are made. The underground mine, which is expected to commence production in 2010, will make use of block caving techniques, which involve undercutting the orebody to leading to fracture and then collapse of the ore. Once the underground mine is in full production, output from Argyle is expected to amount to about 20 million carats per year. As a result of its acquisition of Ashton, Rio Tinto gained the Merlin diamond mine in the Northern Territory. This mine was commissioned in early 1999 and on average, produced stones of much higher quality than Argyle. Merlin production grades 35% gemstone and 65% near gem quality. Production from Merlin amounted to 55,000 carats in 2001 and rose to 117,000 carats in 2002. However, output fell back to 62,000 carats in 2003 due to resource depletion. Merlin, including the associated mining lease, was sold to North Australian Diamonds Limited in 2004. The accompanying table shows the financial performance of Rio Tinto's Australian diamond operations, with figures converted from US dollars to Australian dollars at the average exchange rate for the year. Revenue and profit have fluctuated markedly over the past five years, reflecting variations in production levels and diamond prices. Although profit generated by the Argyle operation increased in 2007, this was due in part to a one-off tax benefit, as well as a higher margin product mix. The fall in revenue in 2006 reflected Rio Tinto's decision to build up its stocks of rough diamonds rather than sell into a softening market. By the end of the year, Argyle held in excess of US$100 million of surplus rough diamonds in inventory. The impact of lower sales volumes and revenues on profit was partly offset by higher prices for rough diamonds and lower depreciation due to the inclusion of underground reserves. Both revenue and profit rebounded strongly in 2005 as production levels expanded. Lower revenue in 2004 was due to reduced diamond output. Profit after tax was also reduced in 2004, as the processing of lower grade ore still resulted in substantial costs. Financial Performance - Argyle Diamond Mine

Million Dollars


NPAT Percent Growth Units

Employment Percent Growth 2003 668 N/C 111 N/C 520 N/C 2004 441 -34.0% 55 -50.5% 520 0.0% 2005 752 70.5% 154 180.0% 520 0.0% 2006 460 -38.8% 85 -44.8% 520 0.0% 2007 N/A N/C 104 22.4% 520 0.0% Source: A.T. Kearney Inc. Major Competitors Market Share Rio Tinto Plc - Rio Tinto Limited 82.00 Kimberley Diamond Company NL 15.52

B1429 SALT AND OTHER MINERAL MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 593 Industry Turnover Growth Rate 2007/2008 -4.35 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 36.00 Number of Enterprises in Industry 75 Rio Tinto is by far the most substantial player in this industry, with large interests in salt, talc and gypsum.



Australia's largest salt producer, Dampier Salt Ltd, is owned by Rio Tinto Ltd (68.4%), Marubeni Corp (21.5%) and Sojitz Corporation (10.1%). Rio Tinto's share increased from 64.9% in July 2007, when it and Marubeni acquired the 4.5% of Dampier Salt formerly held by the Japanese firm, C. Itoh. The company harvests salt at Dampier, Lake MacLeod and Port Hedland, which have approximate output capacities of 4.0 million tonnes, 1.5 million tonnes and 3 million tonnes, respectively. Seawater is evaporated to produce salt at Dampier and Port Hedland, while at Lake MacLeod, brine from an underground lake provides the salt. The operation at Port Hedland was acquired when Dampier Salt purchased another producer, Cargill Salt Australia Ltd in July 2001. The purchase price was US$95 million, plus contingent performance-based payments of up to US$15 million, payable over a number of years. The acquisition made Dampier Salt the world's largest salt exporter. Dampier Salt's production is exported, primarily to the Japanese chemical industry. Other export markets include Korea, Taiwan, China, Nigeria and the US. A small proportion of output is also used locally to produce caustic soda for the alumina industry. Dampier Salt's output amounted to 7.87 million tonnes in 2007 (Rio Tinto share 5.24 million tonnes), down from 8.32 million tonnes in 2006 and 8.48 million tonnes in 2005. Commissioning of a new process plant at Dampier commenced in December 2004 and underpinned higher production in 2005. Production in 2004 was 7.38 tonnes, up from 7.14 million tonnes in 2003. The fall in salt production in 2007 was due to the residual effects of cyclones that disrupted operations. Rio Tinto does not expect Dampier Salt to return to full capacity output until 2010. Most of Australia's talc production (over 95%) comes from Western Australia, where it is mined by Three Springs Talc Pty Ltd. The operation was a subsidiary of WMC Ltd until it was sold to the Luzenac Australia Pty Ltd (a wholly-owned subsidiary of Rio Tinto) in September 2001. The talc mine and processing plant are capable of producing up to 200,000 tonnes of talc product per year, although production varies substantially from year to year, depending on customer demand. The operation consists of an open cut mine and a talc mill. The mill, which began operating in 2001, can process up to 40,000 tonnes per year of talc. It processes transform lump and fine grain talc into more than 20 high value products for the paper, paint, technical ceramics and plastics industries. Varying particle shapes, sizes, chemistry and surface characteristics differentiate these products. Rio Tinto entered the gypsum market in mid 1997 with the commissioning of its gypsum operations at Lake MacLeod near Carnarvon in Western Australia. The gypsum produced (about 1.5 million tonnes per year) is exported to customers in Japan, Korea, Taiwan and Indonesia. The accompanying table shows the financial performance of Rio Tinto Minerals (which includes salt, gypsum and talc produced in Australia) for 2007 and 2006 and Industrial Minerals for prior years. The segments are not directly comparable as Industrial Minerals includes a broader range of activities. Financial information has been converted from US dollars into Australian dollars using the average exchange rate for each year. The main factor behind the fall in division revenue in 2007 was the firming of the Australian dollar. Financial Performance - Rio Tinto Minerals Segment

Billion Dollars



Employment Percent Growth 2003 2.77 N/C 237 N/C N/A N/C 2004 2.91 5.1% 333 40.5% N/A N/C 2005 3.27 12.4% 246 -26.1% N/A N/C 2006 1.56 -52.3% 158 -35.8% N/A N/C 2007 1.46 -6.4% 173 9.5% N/A N/C Source: Annual Report



Major Competitors Market Share Rio Tinto Plc - Rio Tinto Limited 36.00 Incitec Pivot Limited 24.00 Ridley Corporation Limited 15.71

B1513 MINERAL EXPLORATION IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 1,944 Industry Turnover Growth Rate 2007/2008 -23.77 Industry Concentration Level Low Estimated Rio Tinto Market Share (%) 5.00 Number of Enterprises in Industry 220 Rio Tinto Limited was formed at the end of 1995, when the RTZ Corporation Plc and CRA Ltd merged. Rio Tinto has a dual listed structure, with Rio Tinto Plc (formerly RTZ) listed on the London Stock Exchange and Rio Tinto Limited (formerly CRA) listed on the ASX. Rio Tinto Group is one of the world's leading mining companies, with operations in about 40 countries and about 32,000 employees. Rio Tinto is a major producer of iron ore, coal, aluminium, gold and diamonds, with operations in Australia, New Zealand, Indonesia, the United States, Canada, Chile and South Africa. The company also engages in significant mineral exploration. The accompanying table shows Rio Tinto's spending on exploration worldwide over recent years (converted from US dollars into Australian dollars at the average exchange rate for each year). The company's key exploration focus has been on advancing the most promising targets and spending in Australia has accounted for only a small part of the overall figure. At the end of 2007, Rio Tinto was actively exploring in 30 countries and assessing opportunities in a further 20 for a broad range of commodities including bauxite, copper, coking coal, iron ore, industrial minerals, diamonds, nickel and uranium. Activity in Australia focussed on uranium and zircon. Further iron ore resources in the Pilbara region of Australia were handed over to the iron ore group in early 2007. Exploration in Australia in 2005 and 2006 was largely limited to spending on iron ore and uranium. Rio Tinto's exploration objective is to discover mineral resources that are world class in size and which can sustain internationally cost competitive mining operations over a lengthy mine life. Basically, the company focuses its exploration resources on projects most likely to deliver a world class deposit. Financial Performance - Rio Tinto Limited Mineral Exploration Spending

Year Million Dollars



Employees Percent Growth 2003 200 N/C N/A N/C 670 N/C 2004 258 29.0% N/A N/C 880 31.3% 2005 346 34.1% N/A N/C 800 -9.1% 2006 458 32.4% N/A N/C 900 12.5% 2007 688 50.2% N/A N/C 950 5.6% Source: Annual Report Note: Spending and employment are company total worldwide



Major Competitors Market Share BHP Billiton Limited 7.00 Rio Tinto Plc - Rio Tinto Limited 5.00 Newmont Australia Holdings Pty Ltd 1.20 Xstrata Queensland Limited 1.02

C2721 ALUMINA PRODUCTION IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 7,277 Industry Turnover Growth Rate 2007/2008 11.49 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 28.50 Number of Enterprises in Industry 7 Rio Tinto is one of the world's leading mining and exploration companies. It combines Rio Tinto plc, a London listed public company headquartered in the UK, and Rio Tinto Limited, which is listed on the Australian Stock Exchange. The two companies are joined in a 'dual listed companies' (DLC) structure as a single economic entity, called the Rio Tinto Group. Rio Tinto's major products include iron ore, aluminum, copper, diamonds, energy products, gold and industrial minerals (borates, titanium dioxide, salt and talc. Rio Tinto's alumina operations in Australia consist of the Yarwun refinery, near Gladstone in Queensland, the Gove refinery in the Northern Territory and an 80% holding in Queensland Alumina Ltd (QAL). Operations at Yarwun, which has nameplate capacity of 1.4 million tonnes of alumina per year, commenced in late 2004. The refinery processes ore mined by Rio Tinto at Weipa and has been designed to accommodate expansions capable of lifting alumina production to 4 million tonnes per year. In July 2007, Rio Tinto approved a US$1.8 billion expansion of the Yarwun Alumina Refinery. The expansion, known as Yarwun 2, will more than double annual production, increasing alumina output by two million tonnes to 3.4 million tonnes by 2011. A concurrent expansion at Rio Tinto's bauxite mine at Weipa in northern Queensland will provide the additional 4.5 million tonnes of feedstock required by Yarwun 2. Yarwun's output amounted to 1.26 million tonnes of alumina in 2007, compared with 1.24 million tonnes in 2006 and 835,000 tonnes in 2005. The Gove alumina refinery and associated bauxite mine was formerly owned by Alcan Inc, which was acquired by Rio Tinto in a US$38 billion takeover in November 2007. The Gove refinery an extremely low-cost producer of alumina (in the bottom quartile), due mainly to the high aluminium content of the bauxite mined at Gove. The alumina produced at Gove is sold to local aluminium producers, and is also exported to countries in eastern and northern Europe, North America, the Middle East and Asia. In September 2004, Alcan committed to a $1.86 billion expansion of the Gove alumina refinery and bauxite mining operation to expand refinery output from 2 million tonnes per year to 3.8 million tonnes per year. The refinery expansion also entails an increase in mine output to about 8 million tonnes per year of bauxite. Commissioning of the project expansion commenced in 2006 and the ramp-up to full production is continuing. Rio Tinto expects output to be about 2.6 million tonnes in 2008, rising to between 3.4 million tonnes and 3.8 million tonnes in 2009. QAL operates the world's largest alumina refinery in Gladstone, Queensland. Rio Tinto owns 80% of QAL, with the remaining 20% owned by the Russian aluminium firm, Rusal. Rusal acquired its stake in the refinery in early 2005, purchasing it from the US firm Kaiser Aluminum. Rio Tinto's holding increased from 38.6% when it acquired Alcan Inc (and its 41.4% holding in QAL) in late 2007. The QAL refinery has a nameplate output capacity of about 3.65 million tonnes of alumina per year (although actual output routinely exceeds nameplate capacity) and processes bauxite extracted from the Weipa mine on Cape York Peninsula in far north Queensland. It requires about 2.4 tonnes of bauxite for each tonne of alumina produced.



Alumina production at QAL amounted to 3.82 million tonnes in 2007, compared with 3.9 million tonnes in both 2006 and 2005, 3.78 million tonnes in 2004 and 3.73 million tonnes in 2003. QAL operates as a tolling operation, supplying alumina to the owners in proportion to their equity in the consortium for a charge per tonne to cover the cost of processing. The performance of Rio Tinto's aluminium, alumina and bauxite businesses reflect the interaction of production volumes and prices. The large increase in revenue in 2007 reflects both higher prices and the acquisition of Alcan. Despite the gain, earnings before interest and tax fell, due mainly to cost pressures and much higher depreciation charges. Revenue and profit rose strongly over 2004 to 2006 on the back of stronger US dollar aluminium prices (although the benefit of the higher price was partly offset by a firmer Australian dollar, especially in 2004) and higher output. The increase follows falls in the sector's performance in 2003 and 2002 that were due to the firmer Australian currency and, in 2002, lower US dollar prices. The performance of Rio Tinto's aluminium, alumina and bauxite businesses reflect the interaction of production volumes and prices. The large increase in revenue in 2007 reflects both higher prices and the acquisition of Alcan. Despite the gain, earnings before interest and tax fell, due mainly to cost pressures and much higher depreciation charges. Revenue and profit rose strongly over 2004 to 2006 on the back of stronger US dollar aluminium prices (although the benefit of the higher price was partly offset by a firmer Australian dollar, especially in 2004) and higher output. The increase follows falls in the sector's performance in 2003 and 2002 that were due to the firmer Australian currency and, in 2002, lower US dollar prices. Financial Results - Rio Tinto Alumina and Aluminium Operations

Billion Dollars



Employees Percent Growth 2003 2.85 N/C 443 N/C 4389 N/C 2004 3.22 13.0% 680 53.5% 4077 -7.1% 2005 3.60 11.8% 762 12.1% 4293 5.3% 2006 4.64 28.9% 1458 91.3% 4347 1.3% 2007 8.71 87.7% 1291 -11.5% 11428 162.9% Source: Annual Report Note: Employment is company total in Australia and New Zealand Major Competitors Market Share Alcoa of Australia Limited 38.00 Rio Tinto Plc - Rio Tinto Limited 28.50 BHP Billiton Limited 20.00

C2722 ALUMINIUM SMELTING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 6,773 Industry Turnover Growth Rate 2007/2008 -15.15 Industry Concentration Level High Estimated Rio Tinto Market Share (%) 39.00 Number of Enterprises in Industry 6 Rio Tinto is one of the world's leading mining and exploration companies. It combines Rio Tinto plc, a London listed public company headquartered in the UK, and Rio Tinto Limited, which is listed on the Australian Stock Exchange. The two companies are joined in a 'dual listed companies' (DLC) structure as a single economic entity, called the Rio Tinto Group. Rio Tinto's major products include iron ore, aluminium, copper, diamonds, energy products, gold and industrial minerals (borates, titanium dioxide, salt and talc.



The company owns one aluminium smelter in Australia and has substantial interests in another two. Its wholly owned Bell Bay smelter in northern Tasmania processes alumina from the Queensland Alumina Limited refinery (80% owned by Rio Tinto). The nameplate capacity of the smelter is about 167,000 tonnes of aluminium per year, but it can produce well in excess of that level. Output amounted to 178,000 tonnes in 2008, compared with 177,000 tonnes in 2007, 179,000 tonnes in 2006, 173,800 tonnes in 2005 and 162,000 tonnes in 2004. In 1995, Comalco committed to a take-or-pay contract for electricity that will keep the smelter operational through to 2014. Rio Tinto has a 59.2% holding in the Boyne Island aluminium smelter, located near Gladstone in Queensland. The other owners are: Sumitomo Light Metal Industries (17%), Ryowa Development Pty Ltd (11.65%), Yoshida Kogyo KK (9.5%) and Sumitomo Chemical Co Ltd (2.46%). The Boyne Island smelter initially had two 870 metre long potlines with 240 pots in each. The rated capacity of the smelter was 260,000 tonnes of aluminium per year, but there was provision for smelter capacity to be substantially increased with the construction of additional potlines. An expansion was undertaken in 1998, raising the capacity of the smelter to 490,000 tonnes. Output has consistently exceeded nameplate capacity, amounting to 559,000 tonnes in 2008, 550,300 tonnes in 2007, 547,140 tonnes in 2006, 549,000 tonnes in 2005 and 540,500 tonnes in 2004. Alumina for the smelter is obtained from the QAL refinery and the aluminium produced is allocated to the participants in accordance with their project shares. About 80% of output is cast as 22 kilogram ingots for export, with the remainder being cast as billet or block for further processing in Australia. The smelter consumes about 20% of all electricity generated in Queensland. Japan is the smelter's major customer, accounting for virtually all export sales, either through equity off-take or long-term contracts. Rio Tinto has reviewed the possibility of lifting the capacity of the Boyne Island smelter by a further 218,000 tonnes (at a cost of about $800 million), but this expansion is unlikely to be undertaken in the foreseeable future. The importance of energy (in particular, electricity) to the Aluminium Smelting industry is highlighted by the purchase of the Gladstone power station by the Boyne Island participants in the early 1990s. Any electricity not required by the Boyne Island smelter is sold back into the Queensland power grid. Rio Tinto gained a 51.6% interest in the Tomogo smelter in New South Wales when it acquired the former owner of that holding, Alcan Inc, in November 2007. Other participants are Gove Aluminium Finance Ltd (36.05%) and Hydro Aluminium (12.4%). Gove Aluminium Finance is owned 70% by CSR Ltd and 30% by AMP Ltd. Alcan acquired the holding in the smelter when it took over Pechiney Ugine Kuhlmann of France in late 2003. The Tomogo smelter processes alumina from the Gove alumina refinery (100% Rio Tinto) and QAL. About 80% of Tomago's output is exported to the Asian region, mostly to Japan. Domestic manufacturers process only a relatively small quantity of aluminium and the remainder is exported to Europe. In November 2003, participants in the Tomago smelter announced that they would proceed with a $210 million plan to expand output to 525,000 tonnes per year by increasing the amperage of the electric current used in the smelter from 180 kiloamps to 225 kiloamps. The project was completed on time and by 2007, output was about 520,000 tonnes. Rio Tinto became the subject of a takeover bid in late 2007, when BHP Billiton made merger overtures, offering three of its own shares for each Rio Tinto share. Rio Tinto rejected the proposed offer and subsequent higher offers, stating that they undervalued the company. Rio Tinto's share price fell sharply after BHP Billiton withdrew its bid and the company announced major cost cutting initiatives in order to conserve its capital. The Chinese Government-owned firm, Chinalco, which has substantial operations in the aluminium sector, purchased a 9% stake in Rio Tinto in February 2008 (currently 9.9%). Chinese buyers of iron ore and, to a lesser extent, coal, expressed their concern over the increase in concentration represented by a possible merger between BHP Billiton and Rio Tinto. The global financial crisis, together with concern over Rio Tinto's debt levels, saw BHP Billiton withdraw its merger bid in December 2008.



In February 2009, Rio Tinto and Chinalco unveiled plans for Chinalco to increase its holding in Rio Tinto 18% and to take direct ownership positions of 15% to 50% Rio Tinto's iron ore, bauxite, alumina and aluminium projects. The plan also involves Chinalco entering into strategic alliances with Rio Tinto in its iron ore, copper and aluminium businesses and becoming an equal partner in an iron ore marketing company that will sell 30% of the output from the Hamersley iron ore operations. If the deal proceeds, Chinalco plans to appoint two directors to the Rio Tinto boards in Australia and Britain. The planned acquisition must gain approval from the Foreign Investment Review Board (FIRB) to proceed. The Australian Treasurer may also over-rule the deal if it is deemed not to be in the national interest. The performance of Rio Tinto's aluminium, alumina and bauxite businesses reflect the interaction of production volumes and prices. Rio Tinto quotes data in US dollars and these figures have been converted into Australian dollars using the average exchange rate for the year. The tripling of revenue in 2008 is due to the full year effect of the Alcan acquisition, partly offset by a much stronger Australian dollar. Although costs also rose sharply due to the acquisition, profit expanded. The large increase in revenue in 2007 reflects both higher prices and the acquisition of Alcan. Despite the gain, earnings before interest and tax fell, due mainly to cost pressures and much higher depreciation charges. Revenue and profit rose strongly over 2004 to 2006 on the back of stronger US dollar aluminium prices (although the benefit of the higher price was partly offset by a firmer Australian dollar, especially in 2004) and higher output. Financial Performance - Rio Tinto Plc - Rio Tinto Limited Alumina and Aluminium Operations




Employees Percent Growth 2004 3.22 N/C 424 N/C 4077 N/C 2005 3.60 11.8% 516 21.7% 4293 5.3% 2006 4.64 28.9% 995 92.8% 4347 1.3% 2007 8.71 87.7% 1307 31.4% 11428 162.9% 2008 27.91 220.4% 1389 6.3% N/A N/C Source: Annual Report Note: Employment is company total in Australia and New Zealand Major Competitors Market Share Rio Tinto Plc - Rio Tinto Limited 39.00 Alcoa of Australia Limited 27.00 Hydro Aluminium Australia Pty Ltd 7.70

B1315 MINERAL SAND MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 1,283 Industry Turnover Growth Rate 2007/2008 15.25 Industry Concentration Level High Number of Enterprises in Industry 11 Rio Tinto is not a major player in this industry.

Major Competitors Market Share Iluka Resources Limited 68.00 Exxaro Australia Sands Pty Ltd 17.50 Bemax Resources Limited 14.00



B1319 MANGANESE AND OTHER MINERAL MINING IN AUSTRALIA Industry Statistics Industry Size 2007/2008 Million Dollars 2,660 Industry Turnover Growth Rate 2007/2008 41.32 Industry Concentration Level High Number of Enterprises in Industry 9 Rio Tinto is not a major player in this industry.

Major Competitors Market Share BHP Billiton Limited 60.00 Consolidated Minerals Limited 33.00

SHAREHOLDERS Rio Tinto Plc - Rio Tinto Limited


Shareholders Shareholder Name Percentage Held Country of Incorporation State Substantial Shareholders Shining Prospect Pte Ltd 12.00 % Singapore Singapore AXA SA 4.86 % France France Legal & General Group Plc 4.59 % United Kingdom United Kingdom Barclays Plc 4.02 % United Kingdom United Kingdom Capital Group Companies Inc 3.90 % United States of America United States of America

Largest Shareholders Tinto Holdings Australia Pty Ltd 37.45 % Australia Victoria HSBC Custody Nominees (Australia) Limited 10.98 % Australia New South Wales J P Morgan Nominees Australia Limited 8.18 % Australia New South Wales National Nominees Limited 7.92 % Australia Victoria Citicorp Nominees Pty Ltd 3.08 % Australia New South Wales ANZ Nominees Limited 2.29 % Australia Victoria Cogent Nominees Pty Limited 0.94 % Australia New South Wales AMP Life Limited 0.81 % Australia New South Wales UBS Wealth Management Australia Nominees Pty Ltd 0.56 % Australia Victoria Australian Foundation Investment Co Ltd 0.53 % Australia Victoria UBS Nominees Pty Ltd 0.37 % Australia New South Wales Argo Investments Limited 0.34 % Australia South Australia Queensland Investment Corporation 0.33 % Australia Queensland Neweconomy.com.au Nominees Pty Limited 0.29 % Australia Victoria Perpetual Trustee Company Limited 0.27 % Australia New South Wales Tasman Asset Management Ltd 0.23 % Australia New South Wales RBC Dexia Investor Services Australia Nominees Pty Ltd 0.22 % Australia New South Wales

As At: 19 February, 2009

SUBSIDIARIES Rio Tinto Plc - Rio Tinto Limited


Subsidiaries Subsidiary Name Percentage Held Country of Incorporation State Associated companies Consorcio de AlumÃnio Maranhao 10 % Brazil Ivanhoe Mines Ltd 10 % Canada Mineracao Rio do Norte SA 12 % Brazil Tisand (Pty) Limited 50 % South Africa

Holding company Rio Tinto Plc - Rio Tinto Limited 100 % Australia Victoria

Joint ventures Alcan Ningxia Aluminium Company Limited 50 % China Anglesey Aluminium Metal Limited 51 % United Kingdom Bengalla JV 30 % Australia New South Wales Blair Athol Coal JV 71 % Australia Queensland Boyne Smelters Limited 59 % Australia Queensland Compagnie Camerounaise de l’Aluminum JV 47 % Cameroon Decker Coal Company 50 % United States of America Diavik JV 60 % Canada Gladstone Power Station JV 42 % Australia Queensland Grasberg Expansion JV 40 % Indonesia Hail Creek JV 82 % Australia Queensland Halco (Mining) Inc 45 % United States of America HIsmelt JV 60 % Australia Western Australia Hope Downs JV 50 % Australia Western Australia Hydrogen Energy JV 50 % United Kingdom Kestrel JV 80 % Australia Queensland Leichhardt Coal Pty Limited 45 % Australia Queensland Minera Escondida Limitada 30 % Chile Mount Thorley JV 61 % Australia New South Wales New Zealand Aluminium Smelters Limited 79 % New Zealand Northparkes Mine JV 80 % Australia New South Wales Pechiney Reynolds Quebec Inc 50 % United States of America Queensland Alumina Limited 80 % Australia Queensland Robe River Iron Associates JV 53 % Australia Western Australia Sohar Aluminium Company LLC 20 % Oman Sor-Norge Aluminium AS 50 % Norway Tomago Aluminium JV 52 % Australia New South Wales Warkworth JV 42 % Australia New South Wales

Subsidiaries Argyle Diamond Mines 100 % Australia Australia Bougainville Copper Limited 54 % Papua New Guinea Coal & Allied Industries Limited 76 % Australia Australian Capital Territory Dampier Salt Limited 68 % Australia Western Australia Energy Resources of Australia Ltd 68 % Australia Australian Capital Territory Hamersley Iron Pty Limited 100 % Australia Victoria

SUBSIDIARIES Rio Tinto Plc - Rio Tinto Limited


Iron Ore Company of Canada Inc 59 % Canada Kennecott Exploration Corporation 100 % United States of America Kennecott Holdings Corporation 100 % United States of America Kennecott Land Corporation 100 % United States of America Kennecott Minerals Corporation 100 % United States of America Kennecott Utah Copper Corporation 100 % United States of America Palabora Mining Company Limited 58 % South Africa PT Kelian Equatorial Mining 90 % Indonesia QIT-Fer et Titane Inc 100 % Canada Queensland Coal Pty Limited 100 % Australia New South Wales Richards Bay Iron & Titanium (Pty) Limited 50 % South Africa Rio Tinto Alcan Inc 100 % Canada Rio Tinto Aluminium (Holdings) Limited 100 % Australia Victoria Rio Tinto Energy America Inc 100 % United States of America Rossing Uranium Limited 69 % Namibia Talc de Luzenac France SA 100 % France US Borax Inc 100 % United States of America Balance Date: 31 December, 2008

SERVICE PROVIDERS Rio Tinto Plc - Rio Tinto Limited


Service Providers Service Provider Service Provider Type ANZ Bank Banker Commonwealth Bank Banker National Australia Bank Ltd Banker Westpac Banking Corp Banker PricewaterhouseCoopers External Auditor Not available Insurance Broker Not available Internal Auditor Allens Arthur Robinson Solicitor Not available Telecommunication Balance Date: 31 December, 2008

NEWS Rio Tinto Plc - Rio Tinto Limited


News Rousing Rio raising to cut debt by $19bn : 03-Jul-2009 Rio Tinto's rights issue was well supported by shareholders in London and Australia. It expects to gain almost $US15 billion ($A18.6 billion), which will be used to reduce its $US38 billion debt from its acquisition of Canadian aluminium company, Alcan. Chinalco has maintained its nine per cent stake by taking up its full rights. The Australian Financial Review, (17) : 03-Jul-2009 Rio plays hardball at ore talks : 01-Jul-2009 Australian-listed iron ore producer Rio Tinto is not prepared to give in to demands for major price cuts in talks with Chinese buyers. The China Iron & Steel Association wants a reduction by more than the 33% agreed on with other Asian clients, but Rio says it may sell more ore on the spot market instead. The benchmark price negotiations may need to be extended past 30 June 2009, a historic first. The Australian, (20) : 01-Jul-2009 Chinalco tipped to take up Rio issue : 30-Jun-2009 Chinese company, Chinalco, is expected to take its full entitlement in Rio Tinto's $US15 billion ($A18.6 billion) rights issue. This will allow it to keep its shareholding at 9.3 per cent. There had been speculation that it could sell its rights and invest elsewhere. The Australian Financial Review, (16) : 30-Jun-2009 Battle lines drawn on price talks : 25-Jun-2009 The 2009 benchmark iron ore price is still to be finalised. Rio Tinto, BHP Billiton and the China Iron & Steel Association (CISA) remain in talks in June 2009. Some suppliers are working around CISA's position by negotiating directly with mills. Chinese demand for iron ore continues to increase. The Australian Financial Review, (20) : 25-Jun-2009 Anglo cool on Xstrata bid, BHP and Rio on watch : 23-Jun-2009 Experts forecast that Australian resources groups BHP Billiton and Rio Tinto will be keen to acquire any business divisions that may be offloaded following a proposed "merger of equals" between Anglo American and Xstrata. The deal still faces considerable hurdles however, such as gaining approval from Anglo stockholders and the Government in South Africa. Among the assets that could be on the market are diamond, coal and platinum mines. The Age, (B1-B2) : 23-Jun-2009 Aurukun project threatened by deal's demise : 18-Jun-2009 The collapse of Rio Tinto's deal with Chinalco has threatened the development of the Aurukun bauxite deposit in Queensland. Chinalco subsidiary, Chalco, would have been able to process ore from Aurukun more cheaply when Rio Tinto's alumina refinery was expanded, but Chinalco will no longer be investing in the expansion. The Australian Financial Review, (19) : 18-Jun-2009 Rio chairman holds out olive branch to Chinalco : 17-Jun-2009 Jan du Plessis, chair of Rio Tinto, has in the documentation for its rights issue worth $US15.2bn ($A18.96bn) made comments designed to keep former equity investment partner Chinalco onside after that deal has collapsed. Rio will pay a break fee of $A245.49m to the Chinese business. The Rio closing price on 16 June 2009 of $A73.23, down $A2.27 for the day, compares with an issue price for the new capital raising of $A28.29. The West Australian, (48) : 17-Jun-2009 BHP, Rio face ore asset sale : 17-Jun-2009 The proposed merging of their Western Australian iron ore mining operations by resources groups BHP Billiton and Rio Tinto faces some regulatory hurdles, with Chinese laws designed to crack down on monopolies possibly coming into play as that nation is a major customer. There is also uncertainty over how the range of partner companies for the Pilbara iron ore divisions will react to the fusion. The Australian, (21) : 17-Jun-2009



EC to query miner's pricing influence : 11-Jun-2009 BHP Billiton's joint venture with Rio Tinto is expected to raise European Commission (EC) concerns about influence on the pricing of iron ore. The EC is likely to feel that BHP's pressure on buyers to move from a benchmark system to index or quarterly pricing demonstrates its power to influence pricing. The Australian Financial Review, (17) : 11-Jun-2009 Charges of 'perfidy' and 'prejudice' : 11-Jun-2009 Rio Tinto's iron ore joint venture with BHP Billiton has aroused anger in China. The China Iron & Steel Association is opposed to the deal. In China, the decision to abandon the deal with Chinalco has been criticised, with speculation about political prejudice, but there is little that China can do to stop the iron ore deal. The Australian Financial Review, (17) : 11-Jun-2009 BHP axe hits contractors : 10-Jun-2009 BHP Billiton and Rio Tinto will operate their iron ore joint venture on an owner-operator basis. This will affect two mining contractors, Macmahon and Leighton Contractors. Meanwhile, BHP CEO Marius Kloppers will seek to allay the concerns of Western Australian Premier Colin Barnett regarding the joint venture. The two are scheduled to discuss the deal later in 2009. The West Australian, (53) : 10-Jun-2009 Aluminium option for Rio, Chinalco : 09-Jun-2009 It is possible that Rio Tinto and Chinalco may negotiate a deal for aluminium in Queensland. Rio has rejected Chinalco's refinancing deal in favour of a joint venture with BHP Billiton for iron ore operations in the Pilbara in Western Australia. However, Chinalco still has a nine per cent stake in Rio and is mainly an aluminium group. The West Australian, (37) : 09-Jun-2009 Barnett threatens heat on BHP, Rio : 09-Jun-2009 The Western Australian Government believes the proposed iron ore joint venture between Rio Tinto and BHP Billiton may be designed to avoid stamp duty. The Premier, Colin Barnett, has also expressed concern that the $US115bn ($A145bn) joint venture could lead to large-scale job losses, while he says the Government may seek higher royalty payments from the resources giants. The Age, (B1/B4) : 09-Jun-2009 Synergy proves the big driver : 06-Jun-2009 Rio Tinto has agreed to a joint venture with BHP Billiton in Western Australia's Pilbara region after a decade of considering such an arrangement. The management of the two resources groups anticipates that the venture will give rise to synergies worth over $US10 billion ($A12.5 billion). It is anticipated that the deal will be finalised by mid-2010. The Australian Financial Review, (12) : 06-Jun-2009 Keeping the clock running at all costs : 04-Jun-2009 Experts believe the proposal of Chinalco to provide $US19.5 billion ($A24 billion) to Rio Tinto will soon be ready. The board of Rio Tinto is believed to have met in London on 3 June 2009 to discuss the necessary changes to the deal to make it more acceptable to regulators and shareholders. The Australian Financial Review, (16) : 04-Jun-2009 Rio price negotiations on their last leg : 30-May-2009 Management has warned that Rio Tinto's price negotiations with Chinese steel mills could last for a while. The mills are being offered a 37 per cent price cut for iron ore, which has been accepted by Rio's customers South Korea and Japan. The mills want a 40-to-45 per cent cut. The Australian Financial Review, (12) : 30-May-2009 Rio boss says Chinalco deal still on track : 28-May-2009 Stockholders in Rio Tinto have begun to meet with new chair Jan du Plessis during his visit to Australia, and have heard the company still strongly supports its proposed equity and assets deal with major investor Chinalco, worth $US19.5bn ($A25bn). Criticism of the stance has been voiced by Goldman Sachs JBWere, and it has a "sell" recommendation on the Rio stock that closed $A1.11 lower at $A64.35 on 27 May 2009.



The Sydney Morning Herald, (24) : 28-May-2009 Agreement sets stage for stoush : 27-May-2009 Rio Tinto's and Nippon Steel's 2009-10 iron ore contract price agreement could lead to the demise of the iron ore benchmark pricing system. Mysteel spokesperson, Xu Xiangchun, said the agreement did not meet China's expectations, with the Chinese Government having lobbied for a discount of between 40 and 45 per cent. The Australian Financial Review, (45) : 27-May-2009 China next after Rio's iron deal : 27-May-2009 Sam Walsh, CEO of the iron ore division at Rio Tinto, has announced talks on benchmark prices with Japanese steel producers have resulted in a new charge per tonne of $US62 for fines and $US71 for lump ore, an average decline of 33%. Australia's iron ore mining companies will now need to strike a similar agreement with Chinese buyers, but are facing a much harder task. The Australian, (29) : 27-May-2009 Ambassador tries to allay concerns : 27-May-2009 The Foreign Investment Review Board will rule on Rio Tinto's proposed investment deal with Chinalco in June 2009. The Chinese ambassador to Australia, Junsai Zhang, has given assurances that China is not seeking to gain control over Australia's energy and mineral resources, and notes that China currently accounts for just one per cent of overseas investments in Australia. The Age, (B5) : 27-May-2009 Rio axes 121 workers at Argyle mine : 26-May-2009 The depressed diamond market is forcing Rio Tinto to reduce its Argyle mine workforce by 121 from July 2009. Staff have been offered jobs in Rio's iron ore operations. Rio has sacked over 3,000 workers in Western Australia recently due to economic pressures. The Australian Financial Review, (10) : 26-May-2009 Chair en route for Rio's Chinese reckoning : 26-May-2009 New Rio Tinto chair Jan du Plessis is visiting Australia for a series of meetings with institutional stockholders in the resources company, and will face questions about the planned investment deal with Chinalco that would give the Chinese group stakes in the business as well as individual assets. Du Plessis's exact itinerary is not known, but he is highly likely to also discuss the Chinalco issue with staff at the Foreign Investment Review Board. The Australian, (17) : 26-May-2009 Chinalco trims Rio bond deal : 22-May-2009 Due to pressure by investors in Rio Tinto, Chinalco has signalled it is content to see the size of the convertible bond issue to it in return for the major investment in the resources group be reduced to about two thirds, giving it a stake of 15% of Rio. However, it will insist on acquiring the full $US12.3bn worth of holdings in various Rio assets. Apart from the shareholders, the move would also satisfy the Australian Government, Chinalco hopes. On 21 May Rio stock closed $A1.85 higher at $A66.64. The Australian, (18) : 22-May-2009 Miners join share scheme revolt : 21-May-2009 The Australian Mines & Minerals Association (AMMA) has called on Prime Minister, Kevin Rudd, to meet with executives from mining corporations including BHP Billiton and Rio Tinto. The AMMA said the mining sector would struggle to attract workers under the Government's proposed changes to the taxation of employee share schemes. The Australian Financial Review, (1/8) : 21-May-2009 Chinalco to placate Canberra with revised Rio deal : 21-May-2009 Responding to Australian Government concerns, Chinalco has signalled it may be prepared to make some concessions on its planned investment deal with Rio Tinto, but these would not include stepping back from asset stakes. The measures mentioned were more of an Australian base for dual-listed Rio, issuance of notes on the same basis as to Chinalco to UK investors, and a cap of 15% for the Chinese entity's holding. The Age, (B1) : 21-May-2009



Steely resolve: miners and mills in talks : 20-May-2009 BHP Billiton, Rio Tinto and Brazil's Vale are thought to be negotiating with Nippon Steel and Posco regarding iron ore prices. Steel makers are reportedly pressing for a cut of up to 40% to prices for the year starting 1 April 2009. There is speculation that if an agreement is reached with Japanese and South Korean steel makers, Chinese producers may be forced to either risk losing their supply or to also agree to the price. If China opts to continue purchasing at spot prices there could be a split in the benchmark system for iron ore prices. The Australian Financial Review, (48) : 20-May-2009 Rio could rewrite its China deal : 20-May-2009 Following intense pressure by stockholders, Rio Tinto is apparently letting Chinalco know that the planned deal with the Chinese group must be restructured. It may now take the shape of a share placement rather than incorporate stakes in assets. Chinalco had previously signalled such a change would not be its preference. Australian Treasurer Wayne Swan is yet to approve the Chinese investment. On 19 May 2009 Rio stock closed $A2.62 higher at $A63.77. The Australian, (19) : 20-May-2009 Rio plunges as Chinalco deal teeters : 15-May-2009 As speculation mounts that Rio Tinto could soon abandon its planned equity and assets deal with major investor Chinalco in favour of conducting a share issue to source fresh capital instead, the resources group's share price has been affected negatively. There are reports Rio CEO Tom Albanese and chair Jan du Plessis have signalled to stockholders that they are no longer opposed to the alternative path. On 14 May 2009 the stock closed $A7.65 lower at $A57.60. The Australian, (17) : 15-May-2009 Rio dives on fears of China backflip : 14-May-2009 As Jan du Plessis, chair of Rio Tinto, prepares to face unhappy stockholders in the UK there are rumours the resources group may walk away from its planned major equity and assets deal with Chinese investor Chinalco. The main reason would be the recovery of the global financial markets, with a range of companies recently staging successful share issues. Such an option would make the Chinalco move superfluous. On 12 May 2009 in Australia, Rio closed $A3.23 lower at $A65.25. The Australian, (21) : 14-May-2009 High risk, high reward : 13-May-2009 Rio Tinto shares may represent good value over the long term, according to Deutsche Bank analyst, Peter O'Connor. He said Rio shares traded at around double the price of BHP Billiton shares in May 2009, against a long-term average of three times BHP's price. The Australian Financial Review, (31) : 13-May-2009 Everyone wants a cut of the yellowcake : 13-May-2009 Rio Tinto acquired a blocking stake in Extract Resources and Kalahari Minerals, its 38 per cent stockholder, in 2008 in order to gain access to a strategic uranium deposit in Namibia. However, leading uranium producers now aim to acquire Extract. Canadian mining entrepreneur Stephen Dattels is agitating for the sale of Extract and Kalahari. The Australian Financial Review, (53) : 13-May-2009 Double bind greets Rio's du Plessis : 06-May-2009 Management is trying to orchestrate an orderly change to Rio Tinto's board of directors under its new chair, Jan de Plessis. It is also promoting the desirability of its proposed $US19.5 billion ($A26.5 billion) deal with Chinalco to stockholders amid uncertainty about prospects for commodity prices. The Australian Financial Review, (51) : 06-May-2009 Rio seeks Chinese uranium clients : 04-May-2009 Both major Australian resources groups, BHP Billiton and Rio Tinto, have plans for further shipments of uranium to China, as that nation seeks the raw materials for nuclear energy generation. Rio off-shoot Energy Resources of Australia wants to build on its first delivery made in 2008, while BHP would like to sell uranium-infused copper concentrate from its new Olympic Dam operation to China.



The Australian, (19) : 04-May-2009 Rio Tinto gaining more leeway : 01-May-2009 Shares in Rio Tinto have risen above the conversion price of the first tranche of Chinalco's convertible bonds that form part of the investment agreement between the two. On 30 April 2009, shares in the Australian-listed mining company rose to $A64.43, which is 2.45 per cent above the $US45 bond conversion price. The Australian Financial Review, (42) : 01-May-2009 Rising Rio Tinto shares to hit bonds : 29-Apr-2009 The attractiveness of a recently launched bond issue by Rio Tinto is evaporating as its shares have staged a recovery and are now trading at levels not seen since a takeover by BHP Billiton was rejected. The bonds were meant to source fresh capital in addition to the $US19.5bn ($A27.8bn) deal proposed with Chinalco, and the issue is worth $US7.2bn. On 28 April 2009 the shares closed at $A61.60 after rising $A1.67 for the day. The Australian, (21) : 29-Apr-2009 ATO puts mining contractors under microscope : 23-Apr-2009 A number of Australia's largest companies, including Rio Tinto and BHP Billiton, have agreed to provide the Australian Taxation Office (ATO) with details of payments made to contractors. The ATO is investigating suspected tax avoidance in the engineering, mining and IT services sectors. The Australian Financial Review, (5) : 23-Apr-2009 Rio's China deal will save jobs : 23-Apr-2009 Chinalco is promoting the virtues of its planned equity and assets deal with Rio Tinto worth $US19.5bn ($A27.5bn), saying it will enable the resources group to improve job security in Australia and give it a source of cheaper debt funding through Chinese banks. There is growing stockholder unrest over Rio's supposedly too-low price in the transaction. The Australian, (17) : 23-Apr-2009 Tough tour for Rio chairman : 22-Apr-2009 Rio Tinto chairman, Jan du Plessis, has indicated that he will focus his attention on the proposed $A27.4bn deal with Chinalco. He is preparing to embark on a "listening tour" to hear shareholders' opinions on the deal. However, de Plessis may also be forced to implement a board reshuffle, with two directors indicating that they plan to retire. There is speculation that du Plessis may encounter difficulty in finding "high quality" replacements. The Australian Financial Review, (49) : 22-Apr-2009 Mining giants to combine power : 22-Apr-2009 The CEOs of BHP Billiton, Rio Tinto, Xstrata and eight other resources companies have urged for an amalgamation of 11 industry lobby groups under the banner of the Minerals Council of Australia, in order to boost its influence. However, the move is not universally popular, with some smaller bodies as well as junior mining firms fearing a loss of identity. The Age, (B1) : 22-Apr-2009 Rio shareholders revolt : 21-Apr-2009 The Australian AGM of Rio Tinto has witnessed the airing of grievances by investors over the Alcan purchase and its related debt, the rejection of a merger offer by rival BHP Billiton, and the latest deal to trade equity and assets to Chinalco. The latter proposal may well be voted against by a majority of stockholders. The meeting also saw the handing over of the reins by chair Paul Skinner to successor Jan du Plessis. The Age, (B1) : 21-Apr-2009 Rio backed into corner on Chinalco : 21-Apr-2009 The Australian AGM of Rio Tinto has witnessed the airing of grievances by investors over the Alcan purchase and its related debt, the rejection of a merger offer by rival BHP Billiton, and the latest deal to trade equity and assets to Chinalco. The latter proposal may well be voted against by a majority of stockholders. The meeting also saw the handing over of the reins by chair Paul Skinner to successor Jan du Plessis. The Sydney Morning Herald, (19) : 21-Apr-2009



Sticking to deal, says chairman : 16-Apr-2009 Rio Tinto is still committed to its $US19.5 billion deal with Chinalco. The affirmation was made by chairman Paul Skinner at Rio's annual meeting in London. Jan du Plessis will take over as chairman after the annual meeting of the Australian arm in Sydney on 20 April 2009. Meanwhile, Rio's iron ore production fell by 15 per cent in the first quarter of 2009. The Sydney Morning Herald, (21) : 16-Apr-2009 Rio shareholders urged to reject Eddington's re-election : 16-Apr-2009 Sir Rod Eddington will seek to be reappointed to the board of Rio Tinto when the resources giant holds its annual meeting in April 2009. However, Riskmetrics is advising Rio shareholders to vote against Sir Rod's re-election, as he had been a director of the failed Allco Finance Group. The Age, (B2) : 16-Apr-2009 No carnival for Rio board at annual meetings : 15-Apr-2009 The AGM of Rio Tinto in London is expected to be lively as shareholders ask tough questions on the company's performance. Investors are angry at a "golden parachute" of $US9.6 million for director Dick Evans. There are concerns of a conflict of interests for board member Sir Rod Eddington, a sliding market share for aluminium and declining iron ore production. The Australian Financial Review, (14) : 15-Apr-2009 Rio directors to face the Chinalco music : 14-Apr-2009 Resources group Rio Tinto will issue its output data for the first three months of 2009 during the week starting 13 April, and will also hold stockholders' meetings in the UK and Australia. A major topic on the agenda is the proposed investment and assets transfer deal with Chinalco, with many investors unhappy at the terms offered to the Chinese group. Conflicts of interests claims and supposedly excessive remuneration may also complicate directors' reappointments. The Sydney Morning Herald, (18) : 14-Apr-2009 Jobs canned in aluminium slump : 14-Apr-2009 The ongoing downturn in the aluminium sector both globally and in Australia is expected to create further job losses. Prices for the commodity have weakened by more than half due to reduced demand, forcing major producer Alcoa to announce a loss and triggering downsizing moves at the Alcan business of Rio Tinto. Output has been reduced by 16% across the industry. The Australian, (18) : 14-Apr-2009 Rio axes 500 despite claiming to save 2000 : 08-Apr-2009 Rio Tinto has cut over 700 jobs and postponed the expansion of its Queensland alumina refinery. The miner has promoted its deal with Chinalco with the promise of preserving at least 2,000 jobs at expansion projects. However, 500 of the axed jobs were related to the refinery expansion. The West Australian, (62) : 08-Apr-2009 Iron ore spot price back to 2005 levels : 07-Apr-2009 Adding around $US7 ($A9.80) per tonne in shipping costs, the spot price of iron ore in early April 2009 is down to about $US63.50, a low last witnessed in mid-2005. The decline will make it even harder for Australian exports of the commodity to gain a good price in their benchmark negotiations with Asian buyers. Exports of iron ore are down, as are those of both coking and thermal coal. The Sydney Morning Herald, (18) : 07-Apr-2009 Cameco eager to start Kintyre drilling plan : 06-Apr-2009 Analysts have forecast a boom in Western Australia's uranium sector, after Cameco announced plans to conduct a new drilling program. it will also construct a 40-person camp to service the Kintyre mine, which the Canadian company bought from Rio Tinto in 2008. The West Australian, (35) : 06-Apr-2009



Rio rising on hope of a second glance : 06-Apr-2009 Rio Tinto continues to be a popular stock among derivatives traders, amid continued speculation that BHP Billiton could make a fresh takeover play. Meanwhile, Anthony Anderson of MF Global notes that cyclical stocks have attracted interest from derivatives traders during the sharemarket rally of recent weeks. The Australian Financial Review, (19) : 06-Apr-2009 Chinalco secures cut-price loans : 01-Apr-2009 As Rio Tinto awaits approval by Australian Treasurer Wayne Swan for the planned major investment in it by Chinalco, the Chinese state-owned entity has gained new financing for the deal at very favourable rates. Due to the fact it can tap banks that are also government businesses, it will pay just 0.9% above the London Inter-Bank Offered Rate. Experts say that during the current global credit tightening this is a spectacular outcome. The Australian, (19) : 01-Apr-2009 China's Rio Tinto bid should be blocked: senator : 31-Mar-2009 Opposition backbencher Julian McGauran has urged the Australian Government to block Rio Tinto's proposed investment deal with Chinalco. The aluminium group is owned by the Chinese Government, which Senator McGauran says raises concerns regarding security and the national interest. Several other Opposition MPs have criticised the proposed deal. The Sydney Morning Herald, (7) : 31-Mar-2009 No discount prices for Chinese: ACCC : 27-Mar-2009 The Australian Competition & Consumer Commission (ACCC) has not objected to Chinalco's investment in Rio Tinto. The assessment was based solely on the impact on competition and commodity prices. ACCC chair Graeme Samuel said that Rio would not sell iron ore at discount prices to Chinese customers, artificially lowering prices, but that more rapid expansion could lower prices. The Australian Financial Review, (44) : 27-Mar-2009 Rio has Plan B if China bid falls : 27-Mar-2009 Guy Elliott, CFO of Rio Tinto, says the resources group is working on contingency plans in case the proposed equity and assets deal with Chinalco cannot proceed. Among the alternatives are a share placement, bond issue, asset divestments or negotiations on extended deadlines for debt service. Rio's main aim is to reduce liabilities of $US38bn stemming from its purchase of Alcan. The Australian, (17) : 27-Mar-2009 Banks lead fourth day of gains : 27-Mar-2009 The Australian sharemarket posted solid gains on 26 March 2009, with the S&P/ASX 200 rising 37.3 points to close at 3,646.6. The All Ordinaries Index was up 40.1 points at 3,586.3. Rio Tinto advanced $A0.77 to finish at $A54.70, but the Commonwealth Bank eased $A0.63 to end the session at $A34.75. The Australian Financial Review, (21/23) : 27-Mar-2009 Rio Tinto gets green light from ACCC : 26-Mar-2009 The proposed investment of Chinalco in Rio Tinto, including asset transfers as well, has cleared the first regulatory hurdle after the Australian Competition & Consumer Commission found it would not lessen competition in the global iron ore and bauxite markets. The bid must now also be approved by the Foreign Investment Review Board. The Australian Financial Review, (15) : 26-Mar-2009 China caution as Rio cleared : 26-Mar-2009 The Australian Competition & Consumer Commission has ruled there are no regulatory concerns in the iron ore and bauxite industries flowing from the proposed investment deal between Chinalco and Rio Tinto. Approval by the Foreign Investment Review Board on the other hand is still pending, and could now be harder to gain as Chinese Government-owned businesses are being treated as effectively subsidiaries of one parent entity. The Australian, (17) : 26-Mar-2009 Need to know : 26-Mar-2009 Rio Tinto was fined $A100,000 in 2008 by the securities watchdog for not notifying the market soon enough about its



bid for Alcan. The Australian Securities & Investments Commission has only imposed the $A100,000 penalty twice. Paul Nicols, of Allens Arthur Robinson, says recent fines ordered by the regulator highlight the need for businesses to have strong disclosure systems. BRW, (79) : 26-Mar-2009 Lower iron ore contract prices: Rio : 25-Mar-2009 Rio Tinto expects iron ore prices to fall in 2009. The CEO of Rio's iron ore division, Sam Walsh, said that its price negotiations with Chinese steel mills will not be affected by Chinalco's proposed investment in the company. He said that Rio will continue its annual contract negotiations, but he expects an increase in hybrid contracts. The Australian Financial Review, (50) : 25-Mar-2009 Rio's reassurance on ore negotiations : 25-Mar-2009 Sam Walsh, CEO of the iron ore operations of Rio Tinto, has commented on fears a proposed equity and assets deal with Chinalco would allow the Chinese investor to influence price negotiations for the commodity. He noted that the buyer will only own a stake of 15% in the resources company overall and in its Hamersley iron tenements in Western Australia, and that similar arrangements with Japanese groups have been in place for several years. The Australian, (19) : 25-Mar-2009 BHP fears China's price power : 24-Mar-2009 Sources claim that BHP Billiton's management is resigned to the proposed equity investment and assets deal between rival Rio Tinto and Chinalco being consummated. However, BHP still has grave reservations about the impact on iron ore price negotiations. Among the assets to be part-owned by Chinalco is a 15% stake in the major Hamersley ore deposit in the Pilbara region of Western Australia. The Australian, (18) : 24-Mar-2009 Competitors steel for row on Rio : 20-Mar-2009 Rio Tinto's proposed $US19.5bn ($A29.5bn) deal with Chinalco will be closely scrutinised by Australia's Foreign Investment Review Board. However, steel makers in Europe and Japan have expressed concern about the potential impact of the deal on competition in the global steel market, as a result of Chinalco's links to other companies that are owned by the Chinese Government. The Australian Financial Review, (51) : 20-Mar-2009 Rio down 9pc with clouds gathering : 19-Mar-2009 Investors on 18 March 2009 appeared unimpressed with the choice of British American Tobacco chair Jan du Plessis for the same position at Rio Tinto. The resources company's proposed equity and assets deal with Chinalco will also be scrutinised by a new parliamentary inquiry in Australia, and the group's stock has been downgraded to a "sell" recommendation by Goldman Sachs JBWere. It closed $A4.51 lower at $A47.50 for the day. The Australian, (18) : 19-Mar-2009 New chairman chosen to woo investors : 18-Mar-2009 Jan du Plessis, a non-executive director of Rio Tinto since September 2008, has been appointed as chairman. It thought the Rio board hopes du Plessis can convince investors of the merits of a proposed $A29.7bn deal with Chinese group, Chinalco. Du Plessis also chairs British American Tobacco. Meanwhile, in Rio's annual report, outgoing chairman Paul Skinner suggested that the merger with Alcan will produce long-term value. The Australian Financial Review, (50) : 18-Mar-2009 Rio digs up the dirt for its outlook : 18-Mar-2009 Rio Tinto's annual report document for 2008 shows the resources group sees a vastly increased risk potential for the period ahead, as the global mining sector enters a downturn. The gloomy forecast gives added urgency to the proposed equity investment and asset sales deal with Chinalco, valued at $US19.5bn ($A29.6bn). Due to falling demand for its iron ore, Rio will make some 4,400 workers in that division redundant, with some two thirds of this in Western Australia. The Australian, (19) : 18-Mar-2009 ERA to heap-leach Kakadu ore : 17-Mar-2009



Energy Resources of Australia has announced plans to increase annual uranium production by more than 33 per cent. The Rio Tinto subsidiary said it would use the heap-leach process to boost low-grade ore production in the Northern Territory. The Australian, (18) : 17-Mar-2009 Rio Tinto executives cop a pay freeze : 17-Mar-2009 Sources claim that cash bonuses for the leading management levels at resources group Rio Tinto have been abolished for 2008, and base salaries were frozen. The details will be forthcoming in the annual results, while investors continue to have misgivings over a proposed deal with Chinalco. Rio's performance in 2008 declined in line with the general mining sector slump. The Sydney Morning Herald, (17) : 17-Mar-2009 Further scrutiny for Chinalco deal : 16-Mar-2009 Chinalco's proposed investment in Rio Tinto will be further examined by the Australian Foreign Investment Review Board. The agency told Chinalco that it would need a further 90-day period to assess the deal, giving its decision in July 2009. Chinalco has said that it would provide funds for joint projects but concerns remain about its influence over Rio. The Australian Financial Review, (13) : 16-Mar-2009 Contract concerns unsettle coalminers : 13-Mar-2009 Metallurgical coal prices tripled to a record $US303 per tonne in 2008. However, a source at a top Chinese steel mill claims that over the three or so months to 13 March 2009, BHP Billiton has sold two million tonnes of hard coking coal into China for between $US130 and $US160 a tonne. In the week commencing 9 March, thermal-coal producers Xstrata and Rio Tinto were forced to accept price cuts from Japan. The Australian Financial Review, (44) : 13-Mar-2009 Coal price cut hits export earnings : 12-Mar-2009 The benchmark thermal coal price negotiated by Japanese electricity generators with Australian exporters Rio Tinto and Xstrata has been reduced 44% in March 2009. Should this trend flow through to all coal and iron ore sales, the national economy would lose export earnings worth $A35bn. The Budget deficit may also blow out further. The Australian Financial Review, (1/17) : 12-Mar-2009 Swan faces broader mix of outcomes in assessing Chinalco deal : 12-Mar-2009 Chinalco's proposed investment in Rio Tinto will be closely scrutinised by the Australian Government. Barry Irwin, of law firm Clayton Utz, said that the deal will be carefully examined by the Foreign Investment Review Board. The deal involves issues of national interest and foreign policy, as well as commercial concerns. It is thought that conditions will be imposed if the deal is approved. The Sydney Morning Herald, (27) : 12-Mar-2009 Japan pulverises coal prices : 12-Mar-2009 Chubu Electric in Japan is the first client to settle on a price for thermal coal with Australian producers in the benchmark negotiations for 2009. It has gained a reduction by some 44%, as Rio Tinto and Xstrata Coal agreed to a price of no more than $US72 per tonne. The spot price in early March 2009 has fallen to a low of $US61.70 last witnessed in 2007. The likely loss of $A5bn in annual export revenue comes as demand for commodities in China is also likely to decline as that nation's export markets erode. The Australian, (17) : 12-Mar-2009 Rio sees delays in Mongolia joint venture : 09-Mar-2009 Rio Tinto CEO Tom Albanese has signalled that despite the imminent agreement with the Mongolian Government on the company's Oyu Tolgoi project, it may be postponed due to the global financial crisis. The copper and gold mine joint venture with Ivanhoe Mines is worth some $US3bn ($A4.7bn). The Sydney Morning Herald, (21) : 09-Mar-2009 Chinalco deal hits first hurdle with ACCC scrutiny : 06-Mar-2009 Australia's competition regulator will assess Rio Tinto's proposed equity deal with Chinalco. The Australian



Competition & Consumer Commission (ACCC) will examine the implications of the deal in terms of the provisions of the Trade Practices Act concerning a reduction in competition. The deadline for submissions regarding the $US19.5bn ($A30.3bn) deal was 5 March 2009, and the ACCC is expected to release the outcome of its review later in the month. The Age, (B3) : 06-Mar-2009 Metals markets still waiting for Wen : 06-Mar-2009 Chinese Premier Wen Jiabao has disappointed global markets by failing to unveil a new economic stimulus package, meaning that commodity prices will remain subdued. Prior to Wen's address on March 5, 2009 both resources stocks such as BHP Billiton and Rio Tinto and metal prices had performed strongly, in anticipation of good news. The Sydney Morning Herald, (22) : 06-Mar-2009 Rio may be forced to reveal options : 06-Mar-2009 Perilya CEO Paul Arndt has revealed inside knowledge of the approvals process for Chinese investments by the Foreign Investment Review Board in Australia. His comments indicate that Rio Tinto may be requested to outline alternatives to its proposed $US19.5bn ($A30bn) equity and assets deal with Chinalco. The regulator will also want details on how much influence the Chinese business will have. The Sydney Morning Herald, (21) : 06-Mar-2009 Rio board to visit key Pilbara iron ore assets : 05-Mar-2009 For the first time since about 2006, the entire board of directors at Rio Tinto will inspect the resources group's iron ore operations in the Pilbara region of Western Australia. While this is timed to coincide with the AGM in late April 2009, CEO Tom Albanese is already in Australia to lobby stockholders and government officials on the proposed deal with Chinalco. The West Australian, (43) : 05-Mar-2009 Rio still open to iron ore merger : 05-Mar-2009 Tom Albanese, the CEO of Rio Tinto, has signalled to Australian analysts that the planned equity stake transfer to Chinalco does not mean a possible merger of Rio's Western Australian iron ore operations with those of rival BHP Billiton is off the table. The latter had staged a failed takeover move on Rio, partly due to the target's valuable port assets in the Pilbara region. The Australian, (17) : 05-Mar-2009 Albanese on tour with Chinalco pitch : 04-Mar-2009 Rio Tinto is working to gain Australian support for its $US19.5 billion ($A30.77 billion) deal with Chinalco. Rio CEO Tom Albanese is visiting the main capital cities in early March 2009 to speak to investors and analysts. He will also promote the deal to the Federal Government, especially Treasurer Wayne Swan. The Australian Financial Review, (48) : 04-Mar-2009 China capital touted in push for Rio : 03-Mar-2009 Chinalco has tried to convince investors of the benefits of its $US19.5 billion deal with Rio Tinto. President Xiong Weiping emphasised that the deal will give Rio access to funding from Chinese banks. He said that it will create employment in Australia. Xiong is expected to meet with the Foreign Investment Review Board and hopes to talk with Federal Treasurer Wayne Swan. The Australian Financial Review, (15) : 03-Mar-2009 Chinalco boss firm on Rio bid : 03-Mar-2009 Xiong Weiping, newly installed president of Chinalco, is visiting Australia to convince Federal Government officials of the merits in the Chinese entity' proposed capital injection of $US19.5bn ($A30.7bn) and equity stake investment in Rio Tinto. He has signalled the company would be unwilling to compromise on the deal even if asked to do so by the Foreign Investment Review Board. The Australian, (19) : 03-Mar-2009 Chinalco cool on bond share : 02-Mar-2009 Rio Tinto gas faced some dissent from existing stockholders especially in the UK on its plan to gain $US19.5bn



($A30.4bn) in new capital from Chinalco. Apart from $US12.3bn through partial asset sales, convertible bonds are to bring in $US7.2bn. However, Chinalco is unhappy at recent calls by investors for them to gain access to the bond issue as well, according to comments by new Chinalco chair Xiong Weiping. The Age, (B3) : 02-Mar-2009 ACCC expected to clear Chinalco-Rio deal : 25-Feb-2009 Chinalco's investment in Rio Tinto is expected to gain clearance from the Australian Competition & Consumer Commission. The regulator has called for submissions by 5 March 2009, and will hand down its findings by 25 March. The Australian Financial Review, (48) : 25-Feb-2009 Rio considers bond ambition : 24-Feb-2009 It is thought that Rio Tinto is assessing whether to extend a planned offer of convertible bonds to some of its leading institutional shareholders. These investors have objected to the embattled miner's plans to offer a $US7.2 billion ($A11.2 billion) deal solely to Chinalco. The Australian Financial Review, (17) : 24-Feb-2009 Rio feels heat as investors refuse to budge : 24-Feb-2009 British Rio Tinto shareholders are continuing to insist that the company uphold the principle of pre-emption rights. Rio CEO, Tom Albanese, had been expected to address Australian investors in late February 2009, although he was forced to extend his stay in London in response to shareholder anger over the planned Chinalco deal. The Australian, (21) : 24-Feb-2009 Unions demand export licences : 20-Feb-2009 Australia stopped the use of export licences requiring individual government approval for the iron ore sector in the 1980s and coal in the 1990s. However, as a growing number of Chinese entities seek to acquire assets or stakes in mining groups in 2009, the Australian Workers Union and Construction, Forestry, Mining & Energy Union are calling on the Federal Government to reintroduce the system. They are concerned the new owners could artificially retard price growth for the export commodities. The Australian, (1) : 20-Feb-2009 AWU claims Rio 'blackmailing' Rudd on Chinalco : 19-Feb-2009 The Australian Workers Union (AWU) has accused Rio Tinto of blackmailing the Federal Government in a bid to gain approval for its deal with Chinalco. The AWU said the mining giant had placed itself above "civil society" by claiming that it would scrap nearly 3,000 Australian jobs if the foreign investment is blocked. The Australian, (1) : 19-Feb-2009 Chinalco deal vital for Queensland: Bligh : 19-Feb-2009 Opinion is divided among Australian politicians on whether the proposed sale of a significant equity stake and assets by resources group Rio Tinto to Chinese partner Chinalco is in the national interest and should be approved by Federal Treasurer Wayne Swan. Those supportive of the move include Queensland Premier Anna Bligh, while Swan's predecessor, Peter Costello, is more cautious. The Age, (B3) : 19-Feb-2009 Recession fear as iron, coal prices set to dive : 19-Feb-2009 Australian iron ore exporters Rio Tinto and BHP Billiton have started benchmark price talks with Chinese steel manufacturers, and may be forced to accept reductions of up to half as demand weakens. They will also no longer be able to levy a freight premium on their prices, and coal will become cheaper for Asian buyers as well. Export earnings for Australia may decline by as much as 3.8% of GDP as a result, experts warn. The Age, (B3) : 19-Feb-2009 Investors seek Rio rethink on China : 18-Feb-2009 Major institutional as well as small retail investors both in Australia and the UK are voicing opposition to Rio Tinto's plan to sell assets and equity to Chinalco in return for $US19.5bn ($A30bn). The resources company is arguing that the main alternative, a share issue, would need to be conducted at a significant discount, and the Chinalco deal is the better option. One issue causing concern is that the scrip to be given to the Chinese entity is in the form of convertible



bonds. The Sydney Morning Herald, (21) : 18-Feb-2009 BHP urged to bid for Rio : 16-Feb-2009 Major institutional shareholders of Rio Tinto are opposed to the company's plan to sell a substantial equity stake and assets to Aluminium Corporation of China (Chinalco). In order to thwart the proposal, they have signalled to former Rio takeover suitor BHP Billiton they would financially back a second attempt by it. Among the UK-based investors in Rio, with a combined holding of 7.5%, are Legal & General Investment Management and BlackRock Investment Management. The Age, (B1) : 16-Feb-2009 Counting the cost of paying too much : 14-Feb-2009 Australian companies are being forced to write down the value of investments which were made in times of high asset prices. So far, the biggest write-downs this reporting season have been made by Rio Tinto, News Corporation, BHP Billiton, and Westfield. The Australian Financial Review, (23) : 14-Feb-2009 Albanese has huge task accounting to shareholders : 14-Feb-2009 Tom Albanese, chairman of Rio Tinto, will promote Chinalco's $US19.5 billion investment in the firm in an impending visit to Canberra. Albanese will also need to strive to persuade the miner's increasingly disenchanted shareholders to accept the deal. Many fund managers would prefer a steeply discounted rights issue. The Australian Financial Review, (12-13) : 14-Feb-2009 Board must find its own executioner : 13-Feb-2009 Chinalco's investment in Rio Tinto is unlikely to prevent changes in the composition of Rio Tinto's board. CEO Tom Albanese and chief financial officer Guy Elliott will be under pressure following the resignations of chairman-designate, Jim Leng, and board member, Dick Evans. The Australian Financial Review, (44) : 13-Feb-2009 Most expensive deal exacts its price : 13-Feb-2009 Rio Tinto is feeling the impact of its acquisition of Alcan. It paid $US38.7 billion for the Canadian aluminium producer in 2007, making it the most expensive deal in the mining industry. Alcan was responsible for $US7.9 billion in write-downs in Rio's 2008 full-year results, while the outlook for the aluminium price is bleak. The Australian Financial Review, (46) : 13-Feb-2009 Aurukun left on the outer : 13-Feb-2009 Rio Tinto's deal with Chinalco may affect the development of the Aurukun bauxite resource in Queensland. The deal will give Chinalco interests in Rio's bauxite and alumina operations in Queensland. Chinalco's subsidiary, Chalco, gained the tender for the quick development of Aurukun. The resources could now be combined, with expansion of existing plants more likely. The Age, (B2) : 13-Feb-2009 Test of Canberra's resolve : 13-Feb-2009 Chinalco's deal to invest $US19.5bn in Rio Tinto could be blocked by the Australian Government. As part of the deal, Rio will issue $US7.2bn worth of convertible bonds to the Chinese Government-owned aluminium group. The Australian Government has signalled that it will introduce legislation to treat such bonds as equity for the purposes of foreign investment regulations. The Age, (B1-B2) : 13-Feb-2009 BHP bids to block China buying mines : 12-Feb-2009 BHP Billiton has called on authorities to reject Rio Tinto's plan to sell key interests to Chinese state-owned aluminium producer, Chinalco. Rio executives met to sign off on the sale of around $US13 billion worth of assets on 11 February 2009, although the deal will require regulatory and shareholder approval. The Australian Financial Review, (1/19) : 12-Feb-2009



The dragon set to devour Rio : 12-Feb-2009 China will enter the world of capitalism with Chinalco's deal with Rio Tinto. The deal will be funded by the China Development Bank, which is also fully owned by the Chinese Government. The complex deal will require market prices for resource supply agreements so the concerns of the Australian Government should be reduced. However, Chinalco is expected to want one or two directors on Rio's board. The Sydney Morning Herald, (27) : 12-Feb-2009 Chinalco to open doors for miner : 11-Feb-2009 Australian-listed miner, Rio Tinto, should benefit from its deal with Chinese Government-owned Chinalco. Rio will gain an advantage in marketing to Chinese customers. It may also receive favoured access to mining projects in China. Chinalco may be given a seat on Rio's board. The Australian Financial Review, (18) : 11-Feb-2009 BHP in chase for Rio assets : 11-Feb-2009 BHP Billiton and Mitsui are believed to have expressed interest in Rio Tinto's coking coal and iron ore assets, while Chinalco is considering the purchase of up to $US15 billion of non-controlling shares in the mining giant's key projects. Rio hopes to raise up to $US20 billion through asset sales or equity issues in a bid to reduce its debt. The Australian, (31) : 11-Feb-2009 Deal still on table despite uncertainty : 10-Feb-2009 Rio Tinto will hand down its 2008 full-year results on 12 February 2009. China's Chinalco has indicated that its plan to acquire mining assets from the Australian miner may not be finalised before that date. Chinalco's vice-president, Lu Youqing, says the companies remain in discussions. However, Lu has declined to comment on speculation that Chinalco chairman, Xiao Yaqing, will shortly depart the state-owned metals company. The Australian Financial Review, (12) : 10-Feb-2009 Amcor eyes packaging assets : 07-Feb-2009 Amcor wants to buy some of the $A6 billion in packaging assets obtained by Rio Tinto as part of its acquisition of Alcan. The packaging group is said to be interested in tobacco packaging and flexible packaging assets outside Australasia. Trade buyers and private equity groups are also interested in the packaging assets. The Australian Financial Review, (15) : 07-Feb-2009 Labor link to Chinalco lobbyists : 06-Feb-2009 Aluminium Corporation of China's (Chinalco) renewed push to acquire scrip in Australian-listed mining group Rio Tinto will once more be accompanied by lobbying on its behalf to the Australian Government by Hawker Britton. The firm has close ties to the ruling Australian Labor Party, and may pave the way for Treasurer Wayne Swan and the Foreign Investment Review Board giving the green light to Chinalco boosting its stake to as much as 19.9%. The Australian, (17) : 06-Feb-2009 Talks a signal it's time to rise and shine : 05-Feb-2009 Some analysts believe that Chinalco's possible investment in Rio Tinto could prompt further offshore investment in Australian resources stocks. However, BHP Billiton CEO Marius Kloppers says that overseas investment activity should not allowed to influence prices in the commodity market. The Australian Financial Review, (23/25) : 05-Feb-2009 Investors welcome Rio asset sale plan : 04-Feb-2009 News that Rio Tinto is preparing to allow Aluminium Corporation of China (Chinalco) to take a greater stake in the mining group via a share placement as well as partial asset sales has been received well on the stock market. On 3 February 2009 the share price of Rio rose $A1.08 to close at $A45.60. Rio aims to gain up to $US20bn ($A31bn) from the deal, so it can reduce its debt burden of $US38.9bn. Chinalco could end up with a fifth of Rio. The Australian, (32) : 04-Feb-2009 Chinalco confirms move for strategic bond holding in Rio : 03-Feb-2009 In order to reduce its debt burden, Rio Tinto is negotiating an increased investment by Aluminium Corporation of China (Chinalco), with the latter notifying Australia's Foreign Investment Review Board of its intention to spend as



much as $A24bn on asset purchases as well as a convertible bond placement. On 2 February 2009 Rio stock closed $A2.30 higher at $A44.45. Chinalco is said to have the strong backing of the Chinese Government, keen to secure the supply of raw materials. The West Australian, (35) : 03-Feb-2009 Albanese for best of worst outcome : 03-Feb-2009 Rio Tinto CEO Tom Albanese is pursuing partial asset sales and a convertible bonds placement to Aluminium Corporation of China (Chinalco) in order to significantly reduce the resources group's debt burden. The deal could be worth $US20bn ($A31.7bn), but it must be noted that it is still only a fallback solution forced on Rio as it has been unable to find buyers for those assets it had initially planned to divest. Meanwhile the Australian Government should not block the investment by Chinalco. The Australian, (19) : 03-Feb-2009 Bailout may give China too big a bite : 03-Feb-2009 Australian Treasurer Wayne Swan will soon need to rule on partial asset sales and a convertible bonds placement by Rio Tinto, designed to have Aluminium Corporation of China (Chinalco) invest enough in Rio so it can significantly reduce its debt burden. Swan will not be opposed as such to significant investment in the resources group, as the sector and the wider economy decline, but he must also safeguard the national interest and tread carefully on large-scale Chinese takeovers. The Australian, (20) : 03-Feb-2009 This mining life : 01-Feb-2009 In 2008, Rio Tinto experienced a hostile takeover attempt by BHP Billiton, softening commodity prices and high debt levels. The stock's risk profile has increased markedly, and its net debt-to-equity ratio has reached 100 per cent. In the next two years, Rio must refinance or repay $A19 billion in debt stemming from its acquisition of Alcan. However, the situation is serious rather than dire, and the stock is trading cheaply. AFR Smart Investor, (16) : 01-Feb-2009 Steel production takes a beating : 23-Jan-2009 Worldwide steel production fell sharply in December 2008 as a result of lower demand. A drop of 28% was recorded in Japan, while China experienced a decline of 5.5%. Contract prices for iron ore and coal exported by BHP Billiton, Rio Tinto and Xstrata are likely to fall as much as 50% for iron ore and 60% for hard coking coal. The Australian Financial Review, (63) : 23-Jan-2009 Rhodes Ridge to go ahead: Fortescue : 22-Jan-2009 Fortescue Metals Group has reconfirmed its commitment to assisting smaller iron ore miner Cazaly Resources in developing the Rhodes Ridge tenements in Western Australia. Cazaly has brought court action to force current owner Rio Tinto into relinquishing the deposit, arguing it has not been exploited for several decades. Rio and its partners claim they are covered by the Rhodes Ridge Agreement Authorisation Act, rather than the Mining Act 1978. The West Australian, (53) : 22-Jan-2009 Skinner to step down early after bid failure : 16-Jan-2009 Resources group Rio Tinto will lose the services of chair Paul Skinner earlier than expected, as he will now depart at the 2009 AGM in late April. Successor Jim Leng is less of a British establishment figure than Skinner, and currently holds the position of deputy chair at Indian company Tata Steel. He has made a name for himself with the restructuring of Tata's European division, Corus. Skinner had been criticised for Rio's tactics in the drawn-out takeover battle with rival BHP Billiton. The Australian, (15) : 16-Jan-2009 Metal meltdown rocks Rio : 16-Jan-2009 Rio Tinto CEO Tom Albanese says the global financial crisis' effect on commodity prices and demand is making itself felt, and iron ore output for the final quarter of calendar 2008 has already fallen 31%. The impact on the full-year profit may be around $US500m ($A758m), in provisioning and costs associated with asset shutdowns. More specific information on the planned 14,000 job cuts will accompany the annual results on 12 February 2009. On 15 January the stock closed 8% lower at $A37.30.



The Australian, (15) : 16-Jan-2009 Diamond mine gets rough cut : 15-Jan-2009 Rio Tinto will scale back operations at its Argyle diamond mine in Western Australia due to reduced demand. The mine will close for three months and a new underground development will be slowed. Contractor, Macmahon, will cut its workforce at the mine by about 200 workers. The Australian Financial Review, (12) : 15-Jan-2009 Rio restructuring claims ex-Alcan boss : 14-Jan-2009 The restructuring of Rio Tinto continues in January 2009. Senior executive, Dick Evans, is retiring early, capital expenditure is being reduced and job losses are expected to reach 14,000. The review of Alcan's assets is expected to be severe. Asset sales are being mooted. The Australian Financial Review, (12) : 14-Jan-2009 Miners cut 570 jobs as prices dive : 14-Jan-2009 Rio Tinto, OZ Minerals and Xstrata have announced plans to slash 570 Australian jobs in response to the financial crisis. Rio said it will not proceed with a $US229 million copper mine expansion in New South Wales and shelve a $US371 million driverless train plan, while OZ Minerals and Xstrata will close zinc mines in Western Australia and Queensland. The Australian, (7) : 14-Jan-2009 Fresh round of cuts and closures on way : 14-Jan-2009 Rio Tinto's move to postpone an underground extension of its Northparkes mine in New South Wales will reduce its copper output by less than 10 per cent. However, the resources giant will retrench 346 employees at the mine. Meanwhile, OZ Minerals will close its Scuddles zinc mine in Western Australia, with the loss of about 70 jobs, and Xstrata will close the Handlebar zinc mine in Queensland. The Sydney Morning Herald, (24) : 14-Jan-2009 Rio deepens cutbacks as OZ puts its Scuddles mine on ice : 14-Jan-2009 Rio Tinto will retrench 346 employees at a New South Wales copper and gold mine that it is hoping to sell as part of its debt-reduction strategy. The underground extension of the Northparkes mine will be put on hold, as will plans to introduce driverless trains at Rio's iron ore mines in Western Australia (WA). Meanwhile, debt-laden OZ Minerals will close its Scuddles zinc mine. The Age, (A24) : 14-Jan-2009 Rio pulls the pin on $3b expansion of Brazil iron ore mine : 13-Jan-2009 Rio Tinto has announced the planned upgrade of its Brazilian iron ore asset, costed at $US2.15bn ($A3.09bn), will be deferred due to the weaker commodities market. Meanwhile debt-laden OZ Minerals says it has new confidence it will be able to reach an agreement with lenders, as its cost reductions bear fruit and its metals output fetches higher prices. The West Australian, (37) : 13-Jan-2009 Rio calls halt to Brazil expansion : 13-Jan-2009 Rio Tinto has postponed the expansion of its Corumba iron ore mine in Brazil. The $US2.15 billion ($A3.1 billion) investment would have increased capacity from two million tonnes a year to 12.8 million tonnes a year. The operation is fairly expensive as the iron ore is transported on river barges. The Australian Financial Review, (12) : 13-Jan-2009 Hunter coalminer on Rio's sales list : 13-Jan-2009 Australian-listed Rio Tinto has indicated that it may seek a buyer for its 75.7 per cent stake in Coal & Allied Industries. Merrill Lynch recently suggested that this stake could be worth between $A6bn and $A8bn. Rio announced plans to raise $US15bn via asset sales in the wake of its 2007 acquisition of Alcan. The Sydney Morning Herald, (25) : 13-Jan-2009 Steel mills chase 40% price cut : 12-Jan-2009



Rio Tinto and BHP Billiton are about to start negotiations for the latest benchmark pricing of their iron ore exports from Australia to China. The Asian steel producers are set to seek a price drop of 40%, after the increase of 85% due to high demand in the previous year. Insiders expect the eventual outcome to be a reduction of 30%, as the Chinese steel market contracts. The Sydney Morning Herald, (11) : 12-Jan-2009 BHP, Rio under pressure from Chinese steel mills : 10-Jan-2009 Chinese steel mills are trying to convince BHP Billiton, Rio Tinto and Vale to reduce 2009 iron ore prices to levels set in 2007. The reductions would cut prices for Australian exporters by over 40 per cent and erode the profits of BHP and Rio. The 2008-09 contract price is $US90 per tonne, against $US52 in 2007-08. The Australian Financial Review, (5) : 10-Jan-2009 More coal job cuts on the way : 09-Jan-2009 A fall in demand has caused production of coking coal to be cut at Queensland mines. Rio Tinto will reduce output by 15 per cent from January 2009, causing 50 contractors to lose their jobs. Peabody Energy intends to cut production by up to two million tonnes over 2009. Xstrata Coal and Macarthur Coal are also cutting production and workers. The Australian Financial Review, (38) : 09-Jan-2009 Peabody, Rio to cut coking coal : 09-Jan-2009 Rio Tinto and Peabody Energy have announced plans to reduce coking coal production levels. The two companies said their decisions were taken in response to falling international demand for steel. The Australian, (17) : 09-Jan-2009 Rio, Peabody cut coal production : 09-Jan-2009 The Queensland coal mining production by Rio Tinto and US-based competitor Peabody will be reduced as the market for coking coal used in Asian steel mills contracts. Throughput at the port in Gladstone has also fallen. While Xstrata and Macarthur Coal have already outlined their output reductions, no such announcement has yet been made by BHP Billiton. The Sydney Morning Herald, (21) : 09-Jan-2009 Rio halts smelter operations : 22-Dec-2008 Rio Tinto's smelter at Kwinana in Western Australia has suspended operations because of the weak market for pig iron. The joint venture has never reached capacity and only produced about 100,000 tonnes of pig iron for export in 2007. Operations will be suspended for at least three months while the project is evaluated. The Australian Financial Review, (11) : 22-Dec-2008 Dangerous days down Rio way : 20-Dec-2008 Shareholders are querying Tom Albanese, head of Rio Tinto, for resisting BHP Billiton's $A150 billion acquisition offer and for the $US38 billion acquisition of Alcan. Albanese says he showed early awareness of the need to cut costs, and notes that no one anticipated the slump in the Chinese economy. He recently revealed that 14,000 staff will be shed as part of debt-cutting initiatives. The Australian Financial Review, (19-21) : 20-Dec-2008 Tough laws delay Rio project : 19-Dec-2008 The future of Rio Tinto's $US2 billion ($A2.9 billion) nickel project on the island of Sulawesi, Indonesia, is uncertain. Omar Anwar, the president director of Rio Tinto Indonesia, said the project was being reviewed. On 16 December 2009, Indonesia's parliament passed new mining laws, which do not augur well for the project. The Australian Financial Review, (45) : 19-Dec-2008 Rio axes $15bn alumina plant : 19-Dec-2008 Rio Tinto will be relinquishing its Alcan division's stake of 49% in a Saudi Arabian bauxite mining, alumina refining and aluminium smelting project worth $US10.5bn ($A15bn). The global financial crisis and its impact on commodities demand have also caused a downward rerating of $US5bn worth of Rio's debt from "A3" to "Baa1" by Moody's. The Australian, (18) : 19-Dec-2008



BHP targets Rio's Chile copper asset : 16-Dec-2008 BHP Billiton has announced that it is "very interested" in purchasing Rio Tinto's Escondida copper mine holding. The 30 per cent stake is believed to be valued at around $US4 billion ($A6 billion). The Australian, (17) : 16-Dec-2008 Rio loses half of lease in Simandou : 13-Dec-2008 The Guinean Government notified Rio Tinto that its lease over part of the Simandou concession has been revoked. The mining company will attempt to rectify the issue with the Government of the country. BSG Resources is thought that been granted the lease, which covers the northern half of the iron ore deposit. The private mining company has been exploring the southern region of the Simandou ranges. The Australian Financial Review, (12) : 13-Dec-2008 Blue-chip operations up for grabs : 11-Dec-2008 Rio Tinto intends to accelerate and expand its asset selling plan in order to reduce its substantial debt. The company is likely to include in the plan some of its most valuable assets, including Australian iron ore and coal mines. Rio Tinto wants to cut its capital expenditure for 2009 from $US9 billion to $US4 billion. The Australian Financial Review, (17) : 11-Dec-2008 Mining giant cuts 14,000 jobs : 11-Dec-2008 Mining group Rio Tinto will reduce its 110,000-strong workforce by 14,000 due to the weaker commodities demand. No detail is available yet on how many of the 17,000 staff in Australia will be made redundant. Rio must also deal with debt of $US38.9bn ($A59bn) that mostly relates to the acquisition of Alcan. Rio's UK-listed scrip closed 9.5% higher at Stg13.77 ($A30.92) on 10 December 2008. The Sydney Morning Herald, (1) : 11-Dec-2008 Guinea project faces razor : 09-Dec-2008 Rio Tinto is reviewing its development and expansion projects. The review of iron ore, coking coal, copper and aluminium assets is expected to result in the deferral of the $US6 billion Simandou iron ore project in Guinea and the Corumba iron ore expansion in Brazil. The Australian Financial Review, (41) : 09-Dec-2008 How to survive until commodity prices recover : 01-Dec-2008 Australian miner, Rio Tinto, will reduce capital requirements to improve its position until the upturn of the commodity cycle. The results of its capital review will be revealed early. It will cut spending to strengthen confidence about its debt position and to lift its share price after BHP Billiton dropped its takeover bid. The Australian Financial Review, (15) : 01-Dec-2008 Push resumes for indexed prices : 28-Nov-2008 BHP Billiton and Rio Tinto want an indexed pricing system for seaborne iron ore to replace annual negotiations. BHP Billiton CEO Marius Kloppers said on 27 November 2008 that the market should be made more flexible. Prices should reflect changing demand. The Australian Financial Review, (56) : 28-Nov-2008 $102b Rio bid off, BHP set for next tilt : 28-Nov-2008 The 2008 AGM of BHP Billiton has heard that regulators in Europe have allowed it to let lapse its abandoned bid for Rio Tinto immediately. Among the other possible uses for BHP's cash are now acquisitions elsewhere, a stock repurchasing program or capital return via dividends. The Sydney Morning Herald, (23) : 28-Nov-2008 Rio plays down fears it may be vulnerable : 27-Nov-2008 Following the withdrawal of the takeover offer by BHP Billiton, rival Rio Tinto is set to accelerate the release of a debt reduction strategy to the market. It wants to avoid a further erosion of its share price, after closing $A21.89 lower at $A42.01 on 26 November 2008. Rio also noted that despite a large debt burden of $US42bn ($A65bn), it pays only 4% interest. The West Australian, (51) : 27-Nov-2008



A change of heart wins praise : 26-Nov-2008 BHP Billiton dropped its takeover bid for Rio Tinto when it was no longer in the best interests of shareholders. The volatile financial situation and the rapid decline in commodity prices affected BHP's cash flows. It would have been difficult to sell assets and to service the large debt that it would inherit. The Australian Financial Review, (58) : 26-Nov-2008 Credit crisis sinks Rio port plan : 25-Nov-2008 Rio Tinto has announced plans to delay the expansion of its Cape Lambert iron ore port facility, in response to falling base metal prices. The expansion had been considered crucial to the Australian mining corporation's takeover defence against BHP Billiton. The Australian Financial Review, (1/19) : 25-Nov-2008 Uranium deal gets nuked : 21-Nov-2008 Rio Tinto has holdings of over 14.9% in Kalahari Minerals and 15.2% in Extract Resources. It also has a uranium operation neighbouring that of Extract in Namibia, which had planned to merge with Kalahari. The latter's stockholders however have chosen not to approve the deal, as Rio would emerge with a major stake in the combined entity at a bargain price. Extract stock closed $A0.10 lower at $A0.86 on 20 November 2008. The Australian, (18) : 21-Nov-2008 Coal, ore exports to drop by $30bn : 19-Nov-2008 As the Chinese economy grows less quickly, experts estimate that falling coal and iron ore prices may reduce Australia's export income by as much as $A30bn during 2009-10. Analysts have reduced their expectations for BHP Billiton and Rio Tinto, with Macquarie Group for example now saying BHP's profit will be halved during 2009-10 to $US13.39bn ($A20.2bn). The Australian, (32) : 19-Nov-2008 Questions of fact and fiction remain : 17-Nov-2008 BHP Billiton has revealed that it does not have a culture of open disclosure. It had denied any impact from falling Chinese demand for iron ore. Shareholders learnt through a newspaper interview that falling demand could cut revenue. This lack of disclosure could influence regulators scrutinising its takeover bid for Rio Tinto. The Australian Financial Review, (16) : 17-Nov-2008 Uranium's still hot despite Rio's slowdown plans : 10-Nov-2008 Australian-listed resources group Rio Tinto has announced it will scale back capital investment in new projects and expansion. However, the move triggered by the global economic slump will not apply to its uranium production, as demand for that commodity is expected to continue at high levels. Rio has signalled it could lift production at its Namibian uranium mine by close to two thirds, or even more than the 5,500 tonnes per annum by 2012 that had been named as the target in mid-2008. This would make the Rossing mine the second-largest globally. The present output has already been forward sold to 2021. The Australian, (19) : 10-Nov-2008 BHP Billiton camp to ponder next Rio Tinto move : 06-Nov-2008 BHP Billiton will consider the objections of the European Commission to its proposed takeover of Rio Tinto. The Australian-listed mining company received the "statement of objections" on 4 November 2008. It will have to reply to the detailed statement within a few weeks. BHP could offer remedies such as asset sales to gain approval. The Age, (B3) : 06-Nov-2008 More woe on the horizon for the major iron ore producers : 05-Nov-2008 Australian-listed resources groups BHP Billiton and Rio Tinto appear to have miscalculated on their iron ore exports. Both had set aside a small percentage of output to sell on the more lucrative spot market rather than through fixed contracts with Asian buyers at the negotiated benchmark price. However, due to the beginning economic slowdown, the spot price for the commodity has declined significantly in early November 2008. There are also claims by Brazilian rival Vale that Rio has started to assume some of the freight costs in its sales to Chinese buyers, with a negative effect on its margin.



The Sydney Morning Herald, (21) : 05-Nov-2008 Strikers claim $14m blow to Rio Tinto : 03-Nov-2008 Strike action has been initiated at Rio Tinto's operations in the Western Australian Pilbara region for the first time in 16 years. Train drivers implemented stop-work action on 31 October 2008 and intend to cease work again on 3 November, as part of their campaign for a union-negotiated collective agreement. The striking workers claim Rio lost approximately $A14 million as a result of the 31 October action. However, Rio has rejected the union claims and has stated that the number of trains unloaded at Damper Port between 7:00am on 31 October and 7:00am on 1 November was still in the upper end of the expected range for a 24-hour period. The Australian, (6) : 03-Nov-2008 Iron still has awe: mid-term outlook good for Rio Tinto : 03-Nov-2008 Lyall Howard, in charge of government relations at Australian-listed mining group Rio Tinto, has left to work instead at rival BHP Billiton. Combined with the announcement that Rio chair Paul Skinner plans to depart in late 2009 to head BP, the impression has been created that Rio is now resigned to the takeover bid for it by BHP going ahead. The investor perception that a slowing in Chinese demand will hurt the Australian resources sector is also contributing to the feeling defeat is inevitable, but this is based on a misreading of the Chinese economy. While demand is weakening, supply will be affected at an even faster rate, as smaller Chinese producers become unprofitable, leaving the field to the likes of Rio. This applies to the iron ore and aluminium segments in particular. The Age, (B1) : 03-Nov-2008

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