Sample IBISworld Company Report

IBISWorld Company Premium Report
Balance Date: 31 December 2008
Rio Tinto Plc - Rio Tinto Limited
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CONTENTS
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
© Copyright 2009, IBISWorld Pty Ltd 2

DETAILS
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%

DETAILS
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

DETAILS
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.

DETAILS
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

DETAILS
• 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
Personnel
Salutation Initials Full Name Title Position Type
Mr PD Paul Skinner Non-Executive Chairman* Chairman
Mr T Tom Albanese Chief Executive* Chief Executive
Mr GR Guy Elliott Finance Director* Financial Controller
Mr JP Jan du Plessis Non-Executive Director* Non-Executive Director
Mr M Michael Fitzpatrick Non-Executive Director* Non-Executive Director
Mr DL David Mayhew Non-Executive Director* Non-Executive Director
Mr AF Andrew Gould Non-Executive Director* Non-Executive Director
Sir DC 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 RR Richard Goodmanson Non-Executive Director* Non-Executive Director
Sir RI Roderick Eddington Non-Executive Director* Non-Executive Director
Mr PM Paul Tellier Non-Executive Director* Non-Executive Director
Mr LY Yves Fortier Non-Executive Director* Non-Executive Director
Mr RB Dick Evans Chief Executive Rio Tinto Alcan* Executive Director
Mr SJ 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 SE 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
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

FINANCIALS
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

FINANCIALS
Total Revenue Total Revenue Growth Rate
Net Profit After Tax Net Profit After Tax Growth Rate

INDUSTRY FINANCIAL AVERAGES
Industry Financial Averages

Industry Rio Tinto
Financial Ratios Unit
Average 31-Dec-2008
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
Industry Rio Tinto

Growth Ratios Unit
Average 31-Dec-2008
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
Segments
Balance Date: 31 December, 2008
Profit Definition: Earnings Before Interest & Tax
OPERATING DIVISIONS
Revenue Profits Assets
Segment Name
AUD000 AUD000 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

% of Total
Segment Name
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

% of Total
Segment Name
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%

SEGMENTS
Operating Divisions - Key Ratios

Profit as Profit as
Segment Name
% of Revenue % 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 Forecast
Growth Rates Growth Rates
2004/05-2008/09 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%

SEGMENTS
GEOGRAPHIC LOCATIONS
Revenue Profits Assets
Segment Name
AUD000 AUD000 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

% of Total
Segment Name
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

% of Total
Segment Name
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 Profit as
% of Revenue % 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

SEGMENTS
Company 18.7 11.4

COMPETITIVE ENVIRONMENT
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

Billion Dollars Billion Dollars Units
Years Revenue Percent Growth EBIT Percent Growth 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 Concentration Level High
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.
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
Billion Dollars Percent Growth Billion Dollars Percent Growth Units Percent Growth
Years Revenue Growth EBIT Growth Employees 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

B1312 BAUXITE MINING IN AUSTRALIA

Industry Statistics
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.
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
Million Dollars Million Dollars Units
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
Note: Employment is the total for Rio Tinto's aluminium sector.

Alcoa of Australia Limited 45.00

B1313 COPPER ORE MINING IN AUSTRALIA

Industry Statistics
Industry Turnover Growth Rate 2007/2008 -20.50
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
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
Note: Employment is total at Northparkes only, excluding contractors

Xstrata Queensland Limited 28.00
Aditya Birla Minerals Limited 10.00
Newcrest Mining Limited 10.00
B1421 DIAMOND AND GEMSTONE MINING IN AUSTRALIA

Industry Statistics
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

Revenue Percent Growth NPAT Percent Growth 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.

Kimberley Diamond Company NL 15.52
B1429 SALT AND OTHER MINERAL MINING IN AUSTRALIA

Industry Statistics
Industry Size 2007/2008 Million Dollars 593
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 Million Dollars Units
Revenue Percent Growth NPAT Percent Growth 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


Incitec Pivot Limited 24.00
Ridley Corporation Limited 15.71
B1513 MINERAL EXPLORATION IN AUSTRALIA

Industry Statistics
Industry Concentration Level Low
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 Revenue Percent Growth NPAT Percent Growth 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%
Note: Spending and employment are company total worldwide


Newmont Australia Holdings Pty Ltd 1.20
Xstrata Queensland Limited 1.02
C2721 ALUMINA PRODUCTION IN AUSTRALIA

Industry Statistics
Tinto Group. Rio Tinto's major products include iron ore, aluminum, copper, diamonds, energy products, gold and
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.
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.
volumes and prices. The large increase in revenue in 2007 reflects both higher prices and the acquisition of Alcan.
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

Revenue Percent Growth EBIT Percent Growth 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%
Note: Employment is company total in Australia and New Zealand

C2722 ALUMINIUM SMELTING IN AUSTRALIA

Industry Statistics
Tinto Group. Rio Tinto's major products include iron ore, aluminium, copper, diamonds, energy products, gold and

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.

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.
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.
output.
Financial Performance - Rio Tinto Plc - Rio Tinto Limited Alumina and Aluminium Operations
Years Revenue Percent Growth NPAT Percent Growth 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
Note: Employment is company total in Australia and New Zealand

Hydro Aluminium Australia Pty Ltd 7.70
B1315 MINERAL SAND MINING IN AUSTRALIA

Industry Statistics
Rio Tinto is not a major player in this industry.

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
Rio Tinto is not a major player in this industry.

Consolidated Minerals Limited 33.00

SHAREHOLDERS
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
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
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

SERVICE PROVIDERS
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

NEWS
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.
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.
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

NEWS
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.
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.
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.
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.
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.
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.
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.

NEWS
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.
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.
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.
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.
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

NEWS
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.
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.
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.
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.
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.
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.
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.
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.

NEWS
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.
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.
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.
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

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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.
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.
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.
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.
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.
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

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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.
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.
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.
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.
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

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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.
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.
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.
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.
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.
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.
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.
ERA to heap-leach Kakadu ore : 17-Mar-2009

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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.
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.
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.
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.
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.
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.
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).
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

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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.
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.
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.
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.
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.
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.
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

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($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.
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.
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.
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

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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.
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.
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.
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

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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.
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.
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.
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.
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%.
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.
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

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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.
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.
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.

NEWS
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.
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.
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.
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.
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.
Steel mills chase 40% price cut : 12-Jan-2009

NEWS
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.
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.
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.
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.
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.
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.
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

NEWS
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.
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.
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.
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.
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

NEWS
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.
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).
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.
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.
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.

NEWS
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.
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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Balance Date: 31 December 2008

Rio Tinto Plc - Rio Tinto Limited

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Company Contact Details

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1995 - December: RTZ and CRA were unified.

1989 - British Petroleum's international minerals businesses were acquired.

1968 - The RTZ Corporation acquired the Borax group.

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Energy - Coal & Uranium

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Operational & Technical Excellence

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PROFIT AND LOSS ACCOUNT

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Other Current Liabilities 6,070,053 6,003,414 1,405,700 2,801,000 1,393,000

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Total Revenue Total Revenue Growth Rate

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Industry Financial Averages

Industry Rio Tinto

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Operating Divisions - Revenue

Energy & Minerals 19.3%

Copper & Diamonds 7.8%

Operating Divisions - Assets

Energy & Minerals 11.0%

Copper & Diamonds 7.7%

Equity Accounted Associates 6.2%

© Copyright 2009, IBISWorld Pty Ltd 13

Operating Divisions - Key Ratios

Operating Divisions - Industries by Operating Segment

© Copyright 2009, IBISWorld Pty Ltd 14

Geographic Locations - Revenue

North America 28.5%

Europe & Other Countries 20.3%

South America 4.7%

Geographic Locations - Assets

North America 38.9%

Europe & Other Countries 11.8%

South America 1.0%

Geographic Locations - Ratios

© Copyright 2009, IBISWorld Pty Ltd 15

Company 18.7 11.4

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Financial Performance - Rio Tinto Australian Coal Mining Operations

Major Competitors Market Share

B1311 IRON ORE MINING IN AUSTRALIA

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Major Competitors Market Share

B1312 BAUXITE MINING IN AUSTRALIA

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Major Competitors Market Share

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B1313 COPPER ORE MINING IN AUSTRALIA

© Copyright 2009, IBISWorld Pty Ltd 22

2007 442 -23.8% 226 -42.9% 220 0.0%

Major Competitors Market Share