Nicola Mining Inc. Corporate Presentation May 2024
Rio Tinto Iron and Titanium At TZMI Congress
1. TiO 2 feedstocks: A view into the future Presentation to TZMI Congress, Singapore, 22 October 2009 Harry Kenyon-Slaney Managing Director Rio Tinto Iron & Titanium
12. Demand for TiO 2 is still set to increase strongly as the developing world moves from infrastructure to urbanisation GDP per capita 2000 US$ PPP Percentage of saturation level* Diamonds*** Aluminium Crude Steel Copper Salt Titanium Dioxide Zinc Nickel * Saturation level – point at which consumption per capita does not increase with income levels ** Population income distribution is in market exchange rate terms *** Diamonds is classed as a luxury good and hence saturation levels are not reached within the specified time period Source: Rio Tinto
13. The long term story remains intact: Urbanisation in developing economies will not be derailed by the current downturn Source: Global Insight, CIA Factbook Urbanisation rates across Asia, the United States and European Union in 2008 Urbanisation rates, income and population Note: Size of bubble reflects total population United States Japan India EU15 China China by Province
14. Lessons from other commodities: Costs and prices have risen in iron ore… Iron ore mining cost curves and prices Source: CRU, Rio Tinto. Cost curves shown up to the marginal tonne. * Annual benchmark for iron ore fines
15. …and alumina… Alumina cost curves and prices Source: CRU, Rio Tinto. Cost curves shown up to the marginal tonne. * Average FOB spot price Australia, (2008 price 1H)
16. And in copper the price increased in excess of the costs …. Source: Data is indexed, 2002 = 100 Brook Hunt, * Annual average LME cash price Cost Price
17. … so what is wrong with the TiO2 feedstock industry? Source: TZMI, Rio Tinto Data is indexed, 2002 = 100. ! Cost Price
18. The end producer has realised price rises but this has not flowed down the value chain Source: US Bureau of Labour Statistics, Rio Tinto Index - Real $2009