Sarawak Aluminium Company
Sarawak Aluminium Company
Sarawak Aluminium Company
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<strong>Sarawak</strong> <strong>Aluminium</strong><br />
<strong>Company</strong><br />
Matt Liddy<br />
Director Business Development Asia<br />
Rio Tinto Alcan
Cautionary statement<br />
Forward-Looking Statements<br />
This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of<br />
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements<br />
other than statements of historical facts included in this presentation, including, without limitation, those<br />
regarding Rio Tinto’s financial position, business strategy, plans and objectives of management for future<br />
operations (including development plans and objectives relating to Rio Tinto’s products, production forecasts<br />
and reserve and resource positions), are forward-looking statements. Such forward-looking statements<br />
involve known and unknown risks, uncertainties and other factors which may cause the actual results,<br />
performance or achievements of Rio Tinto, or industry results, to be materially different from any future<br />
results, performance or achievements expressed or implied by such forward-looking statements.<br />
Such forward-looking statements are based on numerous assumptions regarding Rio Tinto’s present and future<br />
business strategies and the environment in which Rio Tinto will operate in the future. Among the important<br />
factors that could cause Rio Tinto’s actual results, performance or achievements to differ materially from<br />
those in the forward-looking statements include, among others, levels of actual production during any period,<br />
levels of demand and market prices, the ability to produce and transport products profitably, the impact of<br />
foreign currency exchange rates on market prices and operating costs, operational problems, political<br />
uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by<br />
governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio<br />
Tinto's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange<br />
Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore,<br />
be construed in light of such risk factors and undue reliance should not be placed on forward-looking<br />
statements. These forward-looking statements speak only as of the date of this presentation. Rio Tinto<br />
expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on<br />
Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules<br />
of the Financial Services Authority and the Listing Rules of the Australian Securities Exchange) to release<br />
publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in<br />
Rio Tinto’s expectations with regard thereto or any change in events, conditions or circumstances on which<br />
any such statement is based<br />
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Rio Tinto - A world class company<br />
Product Operations<br />
<strong>Aluminium</strong><br />
Copper/Gold<br />
Diamonds/Industrial Minerals<br />
Zinc/Lead/Silver/Nickel<br />
Iron Ore<br />
Uranium<br />
Coal<br />
• Rio Tinto finds, mines and processes aluminium,<br />
copper, diamonds, energy products, gold, industrial<br />
minerals and iron ore<br />
• Global operations<br />
• Revenues of US$33.5 billion in 2007<br />
• More than 65,000 employees<br />
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Rio Tinto Alcan is the aluminium product<br />
group of Rio Tinto • Headquartered in Montreal, Canada<br />
• Number of employees: 26,600 (1)<br />
• 2007 earnings of US$2.64 billion<br />
<strong>Aluminium</strong><br />
Bauxite & Alumina<br />
Power<br />
Other<br />
= Feasibility & Development<br />
= Operations<br />
Note: Does not include RTA’s<br />
Engineered Products and Packaging<br />
businesses<br />
Bauxite<br />
• 6 bauxite mines and deposits in 4 countries<br />
• 31,960 million tonnes production (2007)<br />
Alumina<br />
• 10 alumina refineries in 5 countries<br />
• 8,515 million tonnes production (2007)<br />
<strong>Aluminium</strong><br />
• 24 smelters in 11 countries<br />
• 4,179 million tonnes production (2007)<br />
Power<br />
• 13 power plants<br />
• 34TWh consolidated power generation (2007) 4
<strong>Aluminium</strong><br />
• Lightweight<br />
• Strong<br />
• Non corrosive<br />
• Recyclable<br />
• Used in aircraft, automobiles,<br />
commercial transportation, beverage<br />
cans, buildings, structures, sports &<br />
recreation, aluminium foil &<br />
packaging, alloy wheel rims, electrical<br />
cables.<br />
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SALCO smelter location<br />
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Facts and figures<br />
• Initial production capacity 720,000 tonnes per year<br />
• Two potlines, powered by 1300 MW<br />
• Potential expansion to 1.5 million tonnes per year<br />
• Investment around $US3 billion<br />
• Energy efficient <strong>Aluminium</strong> Pechiney smelting technology<br />
• Alumina from Rio Tinto Alcan’s alumina refineries and<br />
hydro power initially from the Bakun Dam<br />
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Economic impacts<br />
• Malaysia currently imports around 182,000 tonnes of primary<br />
aluminium per year.<br />
• Much of this can be displaced with establishment of a domestic<br />
industry.<br />
• Annual GDP contribution ~ RM 2.4 billion<br />
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Sustainable development<br />
• Evaluating the environmental, social and economic aspects of a project<br />
and associated infrastructure<br />
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Training and employment<br />
• SALCO smelter will create approximately 1,500 direct jobs<br />
• Opportunities for graduate, skilled and semi skilled Malaysians<br />
• Approximately 5,700 jobs in associated industries<br />
• SALCO developing pre work training programmes<br />
• MoU with PPKS<br />
• Exploring linkages with other Malaysian institutes of learning<br />
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Tomago smelter – Hunter Valley, NSW<br />
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Community consultation<br />
• Public Detailed Environmental<br />
Impact Assessment<br />
• Terms of Reference available on<br />
www.salco.com.my<br />
• Stakeholder forums<br />
• Public displays<br />
• Community meetings<br />
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Guardians of the environment in which we<br />
operate<br />
• Alumina refining and aluminium<br />
smelting technology has changed<br />
significantly over the last 50 years<br />
• Rio Tinto Alcan has been at the<br />
forefront of development and<br />
implementation of world class technology<br />
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