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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
Cautionary statement ,[object Object],[object Object],[object Object],[object Object],[object Object]
Presentation outline ,[object Object],[object Object],[object Object]
Richards Bay Minerals ,[object Object],[object Object],[object Object],[object Object],[object Object]
Rio Tinto Fer et Titane (RTF&T) ,[object Object],[object Object],[object Object]
QMM is now a reality ,[object Object],[object Object],[object Object]
Commitment to sustainable development makes us a partner of choice around the world Last 10 years 1998-2007 14.2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Environmental stewardship Social  well-being ,[object Object],[object Object],[object Object],[object Object],[object Object],Strong governance Economic prosperity ,[object Object],[object Object],[object Object]
QMM’s experience: Environmental stewardship
QMM’s experience:  Social well-being
QMM’s experience: Economic prosperity
QMM’s experience: Strong governance
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
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
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
…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)
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
… so what is wrong with the TiO2 feedstock industry? Source: TZMI, Rio Tinto  Data is indexed, 2002 = 100. ! Cost Price
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
How will the TiO 2  feedstock industry remain viable ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Concluding remarks ,[object Object],[object Object],[object Object],[object Object]

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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
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  • 9. QMM’s experience: Social well-being
  • 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
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