1 The HIsmelt® Process: Agenda - ABM

Lower Capital Cost for Greenfield Expansions7.06.05.0Coke ovensPower plantIron ore pretreatmentCore plantRelative Cost4.03.02.01.0-China India USA China India USAHISMELTBLAST FURNACESource: Rio Tinto Analysis 2007© HIsmelt Corporation 2008Lower Operating Costs: Lower input costs• Non-coking coals– No coking coal, coke or purchased cokeReductants Raw Material Prices - ReductantsPurch. CokeCoke• Iron ore fines– High phosphorus content possible– No sinter, lump & pellets– Slimes, steel-plant wastes & recycledmaterialCoking CoalPCI CoalHigh Vol0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6Relative priceIron UnitsRaw Material Prices - Iron UnitsPellets• Single source feeds okaySinterLump• No need for blending yardsFines0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4Relative price• Graphs are indexed values only on a per tonne basis• Source: CRU averages (updated Jan 2008)© HIsmelt Corporation 20087