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Health, Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities Sustainable Development Workshop Sydney 2015 6 July 2015 Mandena Conservation Zone – QMM Madagascar

Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

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Page 1: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

Health, Safety, Environment and CommunitiesJoanne Farrell - Global Head of Health, Safety, Environment and Communities

Sustainable Development Workshop Sydney 20156 July 2015

Mandena Conservation Zone – QMM Madagascar

Page 2: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Cautionary statement

This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. In this presentation all figures are US dollars unless stated otherwise.

Forward-looking statements

This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of 1934. The words “intend”, “aim”, “project”, “anticipate”, “estimate”, “plan”, “believes”, “expects”, “may”, “should”, “will”, “target”, “set to” or similar expressions, commonly identify such forward-looking statements.

Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation.

For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty.

In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation. Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward-looking statements will not differ materially from actual results.

Disclaimer

Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto. By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies.

This presentation contains a number of non-IFRS financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto’s annual results press release and/or Annual report.

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Page 3: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Injury frequency ratesPer 200,000 hours worked

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Safety is fundamental to our business

• Whilst we have achieved our lowest ever injury rates -we are yet to achieve a fatality free year

• We are focused on reducing injury rates and eliminating fatalities

• 2 fatalities at managed operations in 2014

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

All injury frequency rate

Lost time injury frequency rate

Page 4: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Leadership

and culture

Critical risks

and controlsSystems

and technology

Learning and

communication

Safety – our strategy

Page 5: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

• Focus on fatality risk controls

• Vehicles and driving risk

reduction

• Learning lessons from fatal

and potential fatal incidents

• Supply chain safety

• Process safety

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Safety – current priorities

Kestrel mine rescue team training

Page 6: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

6

Process Safety

• Process Safety Management

implementation is progressing

well

Three key initiatives:

1. Raise leader awareness

2. Understand our risks in

depth

3. Implement a new process

safety standard

• Collaboration with industry

leaders including Shell and

DuPont

Rio Tinto Minerals – Boron Operations

Page 7: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Sustainability: a critical business priority

We aspire to be a company that is admired and respected for

delivering superior value and for being the industry’s trusted

partner.

Page 8: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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The way we work

The way we work symbolises

what we stand for as a

business.

It makes clear how we behave

according to our values of

respect, integrity, teamwork

and accountability.

Page 9: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Goals and targets for Rio Tinto

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Targets Performance FY 2014

Year on year reduction of injuries and zero fatalities

2 fatalities at managed operations in 2014

9% reduction in our AIFR compared with 2013

Year on year improvement in rate of new cases of occupational illness

6% reduction compared with 2013

All managed operations complete review of health risks through the implementation of critical control management plans by the end of 2015

41% of managed operations reviewed and implemented CCMPs as at the end of 2014

10% reduction in total greenhouse gas emissions intensity between 2008 and 2015

18% total reduction in greenhouse gas emissions intensity compared with 2008 -currently beating our 2015 target

Managed operations with material water risk will have achieved their approved local water performance targets by 2018

66% of managed operations were on track to meet their recently approved local water performance targets

Page 10: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Assurance

Three layers

of assurance

Avoided event

Standards, Guidance, operating practices

First party audits:

Operations

Second party audits:

Business conformance audits

Third party audits:

Internal / external audit

Risk / Hazard

Page 11: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

• Emergency response

• Ebola response

• Vector borne diseases

• Occupational health

• Mental health

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Health – current priorities

Pilbara wellness programme,

Australia

Ebola Virus

Page 12: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

• Agreements

• Capacity building

• Resettlement

• Heritage

Richards Bay Minerals, South Africa

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Communities – current priorities

Page 13: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Community engagement – Zulti South project

Health Clinics

Subsistence to Small Scale Farming Relocation and compensation

Business development centre

Page 14: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Accreditation, membership and reporting

• Rio Tinto is assessed and included in a number of sustainability leadership indices:

− Dow Jones Sustainability Index

− FTSE4Good Index

− ACSI – Comprehensive

• We are a member of leading sustainability associations, including:

− ICMM

− International Emissions Trading Association

• We have helped shape and participate in voluntary supply chain and transparency initiatives:

− Responsible Jewellery Council

− Aluminium Stewardship initiative

− Extractive Industries Transparency Initiative

• We participate in or are accredited under a number of voluntary schemes, including:

− ISO – 14001 and OHSAS 18001

− Global Reporting Initiative

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Rio Tinto supports and is a member of the following organisations

Page 15: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

Health, Safety, Environment and CommunitiesKelly Payne, Principal Advisor, Environment

Sustainable Development Workshop Sydney 20153 July 2015

Page 16: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

• Managing natural

resources – water, air,

land

• Climate change

• Closure

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Environment – current priorities

Lac Saint-Jean Shoreline Protection – Saugenay, Canada

Page 17: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Managing natural resources – water, air, land

Air quality control, Cape Lambert, Australia

• Managing natural

resources we share with

other users

• Increasing expectations on

conservation and use of

resources

• Shared resources require

collaborative responses

with other users

Rehabilitated coastal rainforest at Richards Bay, South Africa

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Page 18: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Water management – shaped by technical and stakeholder considerations

• Access to water

• Water risks :

− Water constrained

settings

− Water surplus

settings

− Sensitive ecological

settings

• Water targets Water clarification and recycling at Hail Creek

Coal, Australia

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Page 19: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Climate change and energy management

• Management of climate risks

and opportunities to business

value

• Reduction in emissions

intensity and absolute

emissions since 2008

• Energy use is the largest

source of our emissions

Weipa solar project, Australia

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Page 20: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

Waste management

• Mining generates mineral

and non-mineral waste

• Programmes that improve

our waste management and

its environmental impact

benefit the long term

management of water quality

and land rehabilitationWaste management - Guinea

Waste management – Boron Operation, USA

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Page 21: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Rehabilitating the land we use

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Page 22: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

• Rio Tinto Coal Australia’s Hunter

Valley environment team received a

highly commended accolade at the

2014 NSW Minerals Council

Environment and Community

Excellence Awards

• An innovative seeder / aerator has

been developed that:

− Allows soil preparation, compost

incorporation and cover crop

seeding to be done in a single

pass; and

− Helps reduce water runoff and

erosion.

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Rehabilitation – award winning work

Stephen Galilee, CEO NSW Minerals Council

presenting the award to Rio Tinto representatives

The award winning aerator

Page 23: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Closure – new life into old sites

Anglesey Aluminium

• Commenced production in 1970

• Smelting ceased on 30 September

2009

• Re-melt facility dedicated to the

production of billet operated from November 2009 until April 2013

Lynemouth Smelting

• Commenced production in 1974

• Smelting operations ceased March

2012

• Remelt operations ceased in

November 2012

Page 24: Health, Safety, Environment and Communities Safety, Environment and Communities Joanne Farrell - Global Head of Health, Safety, Environment and Communities 6 July 2015 Sustainable

©2015, Rio Tinto, All Rights Reserved

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Foundations of sustainable value creation

Accountability

Respect

Integrity

Teamwork

• Relentless pursuit of shareholder value

• Disciplined decision-making

• For the environment and communities

• For health, safety and wellbeing

• Transparency in all that we do

• Fairness, honesty and openness

• Long-term partnerships

• Continuous improvement

Safety tasks, Dampier Salt