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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 />

2


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 />

3


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 />

5


SALCO smelter location<br />

6


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 />

7


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 />

8


Sustainable development<br />

• Evaluating the environmental, social and economic aspects of a project<br />

and associated infrastructure<br />

9


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 />

10


Tomago smelter – Hunter Valley, NSW<br />

12


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 />

13


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 />

14

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