Consolidation and Diversity Resources in the Century Tom Albanese Chief

Consolidation and Diversity - Resources in the 21st Century Tom Albanese - Chief executive Melbourne 2 October 2008 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and comprises the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Important Information In the United States, Rio Tinto will file a Solicitation/Recommendation Statement with the US Securities and Exchange Commission (the “SEC”) on Schedule 14D-9 following commencement of a tender offer within the meaning of Rule 14d-2 under the Securities Exchange Act of 1934 and holders of Ordinary Shares and American Depositary Shares are advised to read it when it becomes available as it will contain important information. Copies of the Schedule 14D-9 and other related documents filed by Rio Tinto will be available free of charge on the SEC’s website at http://www.sec.gov. In addition, documents filed with the SEC by Rio Tinto may be obtained free of charge by contacting Rio Tinto’s media or investor relations departments or on Rio Tinto’s website at www.riotinto.com. Any documents filed by BHP Billiton, including any registration statement on Form F-4 (which will include a preliminary prospectus) and related exchange offer materials as well as any Tender Offer Statement on Schedule TO, will also be available free of charge on the SEC’s website. Forward-Looking Statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Rio Tinto’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto’s products, production forecasts and reserve and resource positions), are forward-looking statements. 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Among the important factors that could cause Rio Tinto’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto's most recent Annual Report on Form 20-F filed with the SEC or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Rio Tinto expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority and the Listing Rules of the Australian Securities Exchange) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Rio Tinto’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. •Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share. •Information about BHP Billiton included in this presentation is based on public information which has not been independently verified. Certain statistical and other information about Rio Tinto included in this presentation is sourced from publicly available third party sources. As such it presents the views of those third parties, but may not necessarily correspond to the views held by Rio Tinto. Directors’ Responsibility Statement •The Directors of Rio Tinto plc and Rio Tinto Limited accept responsibility for the information contained in this presentation, except that the only responsibility accepted in respect of information relating to BHP Billiton, which has been compiled from published sources, is to ensure that such information has been correctly and fairly reproduced and presented. Subject as aforesaid, to the best of the knowledge and belief of the Directors of Rio Tinto plc and Rio Tinto Limited (who have taken all reasonable care to ensure that such is the case), the information contained in this presentation is in accordance with the facts and does not omit anything likely to affect the import of such information. •Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its officers or any person named in this presentation with their consent or any person involved in the preparation of this presentation makes any representation or warranty (wither express or implied) or gives any assurance that the implied values, anticipated results, performance or achievements expressed or implied in forward-looking statements contained in this presentation will be achieved. •Subject to any continuing obligations under applicable law, the Takeover Code, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority and the Listing Rules of the Australian Securities Exchange, Rio Tinto expressly disclaims any obligation to disseminate, after the date of this presentation, any updates or revisions to any statements in this presentation to reflect any change in expectations or events, conditions or circumstances on which such statements are based. 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 2 Presentation outline Introduction Markets and China outlook Decisions for Australia Dispelling some myths Conclusion Questions & Answers 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 3 Rio Tinto in Australia 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 4 Indigenous employees represent 8% of Rio Tinto’s total workforce 1600 120 1400 100 1200 Indigenous employees in A$ Millions 80 Salary Spend 1000 800 60 600 40 400 20 200 0 2003 2004 2005 2006 2007 2008 (Q2) 2008 (Q4) forecast 0 Indigenous employees Salary spend in Millions 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 5 Our Australian roots • • • • • • Rio Tinto pioneered the China commodities trade for Australia in the 1960s Contribution to national wealth over many years Invested about A$30 billion since 1998 Value added of A$10 billion in 2007 Substantial pipeline of greenfield and brownfield growth New opportunity generation through existing exploration capacity 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 6 Markets and China outlook Demand and supply conditions support a sixth straight year of strength in commodity markets in 2009 China’s % share of total world demand 50 40 Copper Aluminium Traded iron ore 30 20 10 0 Source: CRU, WBMS, Rio Tinto 1990 2000 Consolidation and Diversity - Resources in the 21st Century 2007 7 2 October 2008 China’s pause for breath • • Modelling suggests Chinese GDP will decelerate from nearly 12% in 2007 to around 10% this year Domestic demand remains the primary contributor to GDP Composition of Chinese GDP 2007 Chinese copper tube production 2007 Consumption 35% Government Spending 14% Net Trade 6% Domestic 82% Exported non-US 12% Exported to US 6% Investment 45% Source: Global Insight estimates, China Customs Statistics 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 8 By 2022, demand for Rio Tinto’s products will double Global seaborne iron ore Mt Growth equivalent to ~5x Rio Tinto Pilbara* Global copper Mt Growth equivalent to ~12x Escondida** Global aluminium Mt Growth equivalent to ~31x Rio Tinto Alcan Saguenay smelters*** 2x 1421 1136 844 1624 2x 33 26 38 2x 54 44 35 66 19 2007 2012 2017 2022 2007 2012 2017 2022 2007 2012 2017 2022 * Based on 2007 production on 100% basis and ~6x based on 2007 attributable production ** 2007 production, 100% basis; includes mined and refined production *** Including 2007 production from four wholly-owned smelters in the Saguenay region Source: Global Insight for GDP and population forecasts; Rio Tinto estimates for commodity expenditure profiles; Rio Tinto 2007 annual report; Rio Tinto Fourth Quarter 2007 Operations Review; Rio Tinto Alcan data Note: Expenditure profiles are based on Rio Tinto estimates of global income and consumption relationships and average real terms prices between 1990-2006. Iron ore calculated based on crude steel demand projections, assuming all met by blast furnace production at historic average export prices. 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 9 Rio Tinto is in good shape despite financial market crisis • • • • • • Long-standing strategy to invest in assets that create value for shareholders throughout the cycle Low-cost operations deliver a margin advantage throughout the cycle, particularly in a downswing Exposure to aluminium and iron ore, which are expected to be relatively robust during any moderation in growth Strong pipeline of quality growth projects Focussed on brownfield expansions and development in existing regions Growth not dependent on any one project 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 10 Pre-conditional offer by BHP Billiton • • • BHP’s pre-conditional offer significantly undervalues Rio Tinto Rio Tinto has a clear strategy, well balanced portfolio of high quality assets and exceptional growth opportunities Board and management focus remains solely on value and delivering it Rio Tinto offers a very compelling value proposition 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 11 Australians are significantly better off as a result of the improved terms of trade, driven by China Australia’s Terms of Trade Improved terms of trade 250 Impact on Australia Export Price Index Import Price Index 13% 200 150 Real Wages 100 50 100,000 jobs Employment Jun-88 Jun-93 Jun-98 Jun-03 Jun-08 0 Jun-83 Source: Access Economics; ABS cat. 1350.0 - Australian Economic Indicators, Sep 2008 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 12 The global future of mining • Resource sector is increasingly diverse, competitive and global • Four types of players in today’s resource industry: – Global Leaders – Emerging Majors – Aspiring Players – Support Specialists • Dynamic landscape of intense competition and collaboration 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 13 Australia’s policy challenges • • • Investment from both traditional and new, emerging sources Build stronger linkages with its most important growth markets through continually improving trade relationships Sustain a critical mass of resource companies that facilitates the development of a diverse, dynamic and global support industry 2 October 2008 Consolidation and Diversity - Resources in the 21st Century 14 Consolidation and Diversity - Resources in the 21st Century Tom Albanese - Chief executive Melbourne 2 October 2008