Mike Jolley President Director PT Rio Tinto

Indonesia

China Nickel 2008 28th May 2008,

Shanghai

This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (Rio Tinto) and comprises the slides for a
presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following
conditions.
Forward looking statements
This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Security Exchange Act, as amended. All statements other than statements of historical
facts included in this presentation, including, without limitation, those regarding Rio Tintos financial position, business
strategy, plans and objectives of management for future operations (including development plans and objectives relating
to Rio Tintos products, production forecasts and reserve and resource positions), are forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Rio Tintos present and future business
strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause
Rio Tintos actual results, performance or achievements to differ materially from those in the forward-looking statements
include, among others, levels of actual production during any period, levels of demand and market prices, the ability to
produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating
costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors
identified in Rio Tinto'
s most recent Annual Report on Form 20-F filed with the United States Securities and Exchange
Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed
in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking
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(except as required by applicable law, the City Code on Takeovers and Mergers (the Takeover Code), the UK Listing
Rules, the Disclosure and Transparency Rules of the Financial Services Authority and the Listing Rules of the Australian
Securities Exchange) to release publicly any updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tintos expectations with regard thereto or any change in events, conditions or circumstances on
which any such statement is based.
Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto
Limited will necessarily match or exceed its historical published earnings per share.

Aluminium

Copper

Diamonds

Energy

Iron Ore

Industrial Minerals

Underlying earnings*

Earnings by commodity
(2007)
7.34

7.44

US$bn

Diamonds &
Industrial
Minerals 6%

Energy 6%

6
5.0

Aluminium
13%

Copper 43%

2.3
2
1.1

1.3

1.5

1.7

1.5

1.4

Iron Ore
32%

0
98

99

'00

'01

'02

'03

'04

'05

'06

'07

* 1998 to 2003 data are adjusted earnings under UKGAAP. From 2004, data are underlying earnings under
IFRS.
Source: Rio Tinto

!
Ability to strike deals
Rio Tinto has an extensive history of creative deal-making
Alcan - aluminium
Oyu Tolgoi, Mongolia copper
Simandou, Guinea, West Africa iron ore

Project expertise

Pilbara, Western Australia iron ore

Yarwun, Queensland alumina refinery
Hail Creek, Queensland coal mine

Operational synergies

Nickel mining has synergies with Rio Tintos existing

operations and expertise

Source:Rio Tinto

" # "$%

&

World GDP
2000 terms, PPP basis, USD Trillions
Developing
Developed
CAGR

4.3%

140

2005-25
forecast

Rest of world
India

100

3.5%

80

South America
Asia Pacific developed
Europe

40
20

1975

5.0

6.5

China
54

60

1975-05
actual

125

120

20

CAGR
%

2.6

2.7

North America
2005

2025

Source: World Bank for 1975 and 2005 data; Global Insight for growth estimates to 2025; Rio Tinto Economics

'

(
2007 Population
Distribution

2007

Expenditure per capita

US$ (2007 terms)

2022

30%

25%

20%

15%

10%

5%

0%

Nickel

5,000

10,000

15,000

20,000

25,000

30,000

Average income per capita

35,000

40,000

0
45,000

GDP per capita

(in 2000 US$)

Note: Expenditure profile is based on Rio Tinto estimates of global income and consumption relationships and average real terms
prices between 1990-2006.
Source: Global Insight for population distribution: Rio Tinto estimates for nickel expenditure profiles.

'

)*
+
,

&
Nickel demand under various scenarios
Ktpa

2007-15 2015-25

4,500
4,000
3,500
3,000

CAGR, Percent

Upside

6.2

6.1

5.1

4.3

Rio Tinto
Rio Tinto

Base
case

Brook Hunt

2,500
2,000
1,500
1,000
500
0
2005

2010

Source: Global Insight: Rio Tinto; Brook Hunt

2015

2020

2025
7

&
Demand

Nickel supply and demand balance, Ktpa

3000

2500

2000

1500

1000

500

Nickel pig iron

Projects in
base case
Base case
refined output

Delays in bringing new supply online

are likely, due to:
Increased project costs and
equipment shortages
Increased labour and local
resident disputes.
Laterite nickel is particularly affected
because production is very large
scale, with a large environmental
footprint, and high capital
requirements including co-located
processing facilities
Nickel pig iron is small-scale, very
high cost marginal production. Ni pig
iron production will likely decline as
supply increases from conventional
sources to meet excess demand

0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Source: Brook Hunt, Rio Tinto analysis

&
.

&

*
*
Current assets

Eagle Project high grade ore

body with exceptional value per
ton of ore and exiting upside
prospects

Source: Rio Tinto

Sulawesi Project large

scale, high grade laterite
opportunity one of the
largest undeveloped nickel
deposits

(
Active exploration
Under review
No present interest

Mid Continent
Lakeview

Project stage

Order of Magnitude

Exploration Results

42 drill holes outline an

initial mineralised zone

Brazil
Namibia

Programme

B13 Nickel

Bushveld

Advanced Project

Target Testing

Project of Merit

Source: Rio Tinto

Project stage

Exploration Results

55 historical drill holes outline an

initial mineralisation zone,
drilling about to commence

10

& &
*
*

&
Overview

Ore grade

Very high grade ore deposit

Major optionality
Strategic location

Worlds undeveloped nickel resources

Ni equiv. grade (%)

Key statistics (attributable basis)

Competitors 2

Eagle1

Rio Tinto share (%)

100
2010

First production expected

Base case annual production (ktpa)

16

Initial capex for base case ($billion)

0.3

Production profile

Note: bubble size reflects total potential annual capacity

0
1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

25
20
15
10
5
0

ktpa

Contained Ni equiv
MTonnes

2010

11

12

13

14

Nickel equivalent calculated using long term analyst consensus metal prices 14 May 2008 US$6.32/lb Ni, US$1.55/lb Cu, US$9.4/lb Co,
Source: 1. Rio Tinto Annual Report 2007, Eagle has Probable Ore Reserves of 3.2Mtonnes @ 3.89% Ni 2. Competitor projects Brook
Hunt.

15

16

11

'

12

&

'

% !

In 1999 Approval in Principle given to negotiate a Contract of Work.

In 2000, laterite nickel deposit discovered straddling the border of the Central and

South East Sulawesi Provinces of Indonesia.

Currently ranks as one of the largest known undeveloped laterite nickel deposits in

the world.

Progress on the negotiation stalled by discussion over the draft mining law. Interim
Mechanism decree issued by the Minister of Energy and Mineral Resources in 2004.

Negotiations with the Government to persist with the CoW stance since early 2005.
Discussions with the regional governments on relevant clauses of the CoW have
commenced.

When this process is complete the CoW will be submitted to the Indonesian

parliament for review.

The Central Government committed to complete negotiation of the CoW before the

new mining law is introduced.

Source: Rio Tinto

13

Overview
Overview

Key statistics (attributable basis)

Large scale, low cost, high grade laterite

Rio Tinto share (%)

First production expected

opportunity
One of the worlds largest undeveloped
nickel opportunities, with potential further
regional deposits of a similar size

#
100
2015

Base case annual production (ktpa)

46

Expansion case annual production (ktpa)

39

Sulawesi Nickel Inferred Resource1

Total Resource: 162Mt @ 1.62% Ni and 0.08% Co

Potential Production profile
Tonnes, Thousands

100
80
60
40
20
0

Expansion
Base case

Source: Rio Tinto, 1: Rio Tinto Sulawesi Nickel Resource press release, 28 May 2008. To date the Sulawesi project does not have any defined Ore
Reserves, accordingly, the projected levels of production shown in the Base Case and Expansion profiles are conceptual in nature and
subject to identification of sufficient Ore Reserves to support these production levels.

14

Worlds Undeveloped
Nickel Resources

Competitors3
RT Projects

Eagle1

Ni Equiv. Grade (%)

Sulawesi
Nickel2

Note: bubble size reflects total potential annual capacity

0
-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Contained Ni Equiv. (ktonnes)

Nickel equivalent calculated using long term analyst consensus metal prices 14 May 2008 US$6.32/lb Ni, US$1.55/lb Cu, US$9.4/lb Co,
Source: 1. Rio Tinto Annual Report 2007, 2. Rio Tinto Sulawesi Nickel Resource press release, 28 May 2008, There are currently no Reserves and /
or Measured / Indicated Resources for Sulawesi 3. Competitor projects Brook Hunt.

15

#
&

&
!

Overview
Rio Tinto is a world leader in sustainable development.
Initial feasibility study work will focus on

exploration, environmental and community base

line studies.

Rio Tinto is already active in the provinces.

$500,000 has been committed to community

development work, the first phase of which was
$250,000 for emergency relief and the relocation
of a village that was destroyed in floods that
ravaged the Central Sulawesi Province in 2007.

Source: Rio Tinto

16

&

Kelian

Kaltim Prima
Coal
Grasberg

Sulawesi

Source: Rio Tinto

17

(
Since Reformasi, the fall of Soeharto, in 1998, Indonesia has gone through

much change.

It has held two free elections, in 1999 and 2004, both with >90% turnout.
The unitary state of Indonesia is increasingly cohesive. It has a good record

in controlling international terrorism, and calls for regional separatism are

fading.

This period has not been without its turmoil, with 4 Presidents between

1998 and 2004.

Susilo Bambang Yudhoyono unchallenged in the Presidency since 2004

and remains the most popular candidate ahead of the 2009 election.

Socially, Indonesia is now a moderate Moslem society with largely tolerant

and pluralistic attitudes,

18

Overview
Asian recovery is clearly evident
GDP profile is still building and displays upward momentum
Growth is led by strong export growth and fixed capital investment
Investors have regained confidence as can be seen in trend of growth in FDI

% change over year ago

10
7.2

7.3

7.5

8.2

10

7.8
5.4

4.7

3.6

4.5

4.8

5.0

5.7

5.5

6.3

6.1

0.8

1992 1993 1994

1995 1996 1997 1998

1999 2000 2001

-5

4
2002 2003 2004 2005

2006 2007 2008

2
(2)

-10

(4)
-15

-13.1

Source: Global Insight, note: historical data edge is 2006 for GDP and FDI data

Foreign Direct Investment: inflow

Billions current US$

Real GDP Growth 1992 2008

(6)

19

&

1
*
*

&
Prospectivity

Attractive

100
Australia

90
80
Canada

70
USA

60

Brazil

Macroeconomic growth
indicators suggest Indonesia
is doing well
Mining industry is lagging
Regional autonomy has
devolved power and authority
to the regions

Mexico

50
40
Unattractive

Policy Potential Index (Investment Conditions)

Policy Potential / Prospectivity

South
Africa

30

Peru

20

Indonesia

10
60

70

80

Note: Size of bubble represents spending (US$ 20M)

Low

90

100

US$
20M

High

Mineral Potential Index (Prospectivity)

Source: Fraser Institute, MEG.

20

&

&

Overview
Development of the law and regulation a long period of
uncertainty ahead

Existing Contracts of Work how will they be treated under the new

law?

Disjunctive title does the new law provide security of tenure?

Regional autonomy does the new law clearly define the

delineation of authority between central and regional governments?

Uncertainty as to whether the new mining law will unlock the

potential of the mining industry in Indonesia.

21

 Rio Tinto - a world class miner with world class results

Rio Tinto continuing to add value across future projects
Rio Tinto has the capability and expertise to deliver
The nickel market fundamentals are strong
Rio Tinto is developing a strong portfolio of nickel assets
Sulawesi is a great asset
Rio Tinto is well positioned to deliver the Sulawesi project

22

'

% !

23