The Pilbara Blend - Rio Tinto

1 The Pilbara Blend Bold Baatar, managing director, Iron Ore Sales & Marketing and Marine Singapore Iron Ore Week 19 May 2016 First Iron ore shipment from Dampier August 1966 2 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited ( Rio Tinto ). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of 1934. The words intend , aim , project , anticipate , estimate , plan , believes , expects , may , should , will , target , set to or similar expressions, commonly identify such forward-looking statements. Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors.

2 Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation. For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty. In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation. Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.

3 The Group cannot guarantee that its forward-looking statements will not differ materially from actual results. In this presentation all figures are US dollars unless stated otherwise. Disclaimer Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto . By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies. This presentation contains a number of non-IFRS financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto s annual results press release and/or Annual report. The market 3 Developed market weakness impacted ex-China Million tonnes annualised China s imported ore remained steady Million tonnes annualised 02004006008001,0002014H1-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-152014 World ex-China crude steel production China s net steel exports stable at ~100Mt/a Million tonnes annualised * Total Iron ore requirements imported ore consumption 02004006008001,0002014H1-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 China steel consumptionChina steel net exportsSource: Company reports, GTA, WSA, Mysteel and Rio Tinto analysis.

4 25% 21% 21% 20% 21% 20% 19% 19% 04008001,2001,6002014H1-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Domestic ore consumption*Imported ore consumptionDomestic share (3 MMA, RH axis)19% 15% 17% 10% 16% 23% ~ billion tonnes Majors accounted for ~51% of 2015 supply Percentage of contestable iron ore market = 51% Rio Tinto BHP Billiton Vale = 49% China Rest of market FMG Weakness in China and developed markets impacted ore demand in 2015 The Pilbara Blend Our Pilbara business 110 -95 -35 -20 1,6001,6501,7001,7501,8001,8501,9002014 NewSupplyMarginalSeaborneChinasupply2015 Demandvs 2014 High-cost iron ore supply continues to exit the market CY2014 Production (Mt) CY2015 Production (Mt) There was ~110Mt of additional low cost ore supply added to the market in 2015, displacing higher cost ores We expect new supply entering the market in 2016 to be offset by continued exits of marginal production Seasonally low steel stocks at traders and mills - limiting downside to steel demand 4 - 5 10 15 20 25 30 35 40W1W11W21W31W41W512012-20152016 Iron ore market balance Million tonnes China s iron ore production Million tonnes China steel stocks at traders and mills Million tonnes Source.

5 Mysteel, CISA, Rio Tinto Analysis The market The Pilbara Blend Our Pilbara business 0 China s steel mill profit margins have improved considerably this year, stimulating production Chinese Government stimulus since mid-2015 in the form of lending , monetary easing, and support to property and infrastructure sectors, has boosted Chinese steel demand and prices China s steel demand and production increased in March and April -300-200-1000100200300400500600700800 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Private Billet MarginPrivate Rebar MarginSOE HRC Margin5 744 704 645 658 742 760 98 115 112 97 110 104 5506006507007508008509001H152H15 Jan-16 Feb-16 Mar-16 Apr-16 China steel consumptionChina steel net export842 819 852 756 755 864 China s crude steel production breakdown Million tonnes annualised China steel mill profit margins RMB/tonne Source: Mysteel, RTIO Analysis The market The Pilbara Blend Our Pilbara business The Pilbara - a fully integrated 6 Leading edge technology ~30TB analysed by the OC per month Ship Load & Haul Process Drill & Blast Rail > 300 million tonnes ore shipped annually > 15,000 kilometres rail travel per day ~1 billion tonnes rock moved per year > 12,000 kilometres drilled each year 1 2 3 4 5 Equivalent to the diameter of the earth Almost a return trip on the Trans-Siberian railway RUSSIA Cargo shipped through the Panama Canal Enough to fill the MCG every two days > 400 kilometres of conveyors across the Pilbara 8 times the length of the Channel Tunnel Note.

6 Approximate comparative estimates based on publically available information The market The Pilbara Blend Our Pilbara business 7 Blending consistently reduces variability Stockpile stacking and reclaiming Mines Port Terminals Products The market The Pilbara Blend Our Pilbara business World class analysis and sampling 8 Ship (post Blend ) Mine/Rail (pre Blend ) Alumina Silica Phosphorus Fully automated iron ore port laboratory at Cape Lambert B ensures world class analysis and sampling 2015 product quality variability from mean Percentage The market The Pilbara Blend Our Pilbara business We ensure our customers get the products we have promised Cape Lambert B has the world s largest fully automated iron ore port laboratory Each shipment is sampled every two minutes and over eight tonnes of material is collected and handled by robots that analyse chemistry, size and moisture, ensuring accurate invoicing Reported spot transactions 9 Pilbara Blend Fines is the industry reference iron ore Spot liquidity is fundamental to support price formation The 62% Fe segment is the most liquid segment in the spot market PBF is the most traded product in the 62% Fe market Anecdotally.

7 Some of our customers refer to the Pilbara Blend as the USD equivalent in the iron ore industry PBF spot price outcomes consistently outperform the market on a fixed price and floating price basis Reported spot transactions of 62% Fe products 355 360 233 189 72 48 20152016 YTD annualisedPBFO ther Aust. 62% Fe finesBrazilian finesSource: S&P Platts, Metal Bulletin, Argus, Rio Tinto analysis The market The Pilbara Blend Our Pilbara business -10-50510 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Delta to Platts 62% ($/dmt) Platts 65% FePlatts 62% FeMBIO 58%+P65% Transactions62% Transactions58% Transactions10 Lump is an important value driver Premium lump products remain in scarce supply The YTD Platts lump premium has averaged ~$8/dmt above the 62% Fe index Lump demand in China should outperform iron ore growth due to: Exit of domestic concentrate Evolving burden practises Increased environmental regulation Rio Tinto is the largest supplier of lump with 89 Mt of Pilbara Blend lump and Robe Valley lump shipped in 2015 020406080100 Ave: $51 Ave: $59 Jan-Apr 2016 iron ore price range US$/dmt CFR 020406080100 PBL RVL Major iron ore lump products in 2015 Million tonnes Rio Tinto Peer 1 Peer 2 Source (top): S&P Platts Source (bottom).

8 Company reports, Rio Tinto analysis 62% index Lump The market The Pilbara Blend Our Pilbara business 11 62% Fe segment is most liquid reference point with Pilbara Blend Fines as the market s leading brand Credibility Integrated planning and blending sustains class leading quality control for our products Allows us to optimise volume, mine development, and production planning over the long-term Consistency Predictability Summary of the value of Pilbara Blend Pilbara Blend is the industry reference iron ore Currency The market The Pilbara Blend Our Pilbara business