Rio Tinto Energy

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Fact sheet

Energy


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Rio Tinto produces coal (pictured) inAustralia and the US, and uraniumin Namibia and Australia.

Our energy business

As part of its portfolio Rio Tinto

produces coal and uranium; two

important sources of energy from

mining. We produce coal in Australia

and the US and uranium in Namibia

and Australia, which we sell to

worldwide markets.

Rio Tinto is one of the worlds major

producers of export thermal coal,

used for electricity generation inpower stations. Electrication is

a key aspect of development, and

developing countries in particular

rely on the affordable electricity that

coal provides. We also produce coking

coal for steel making.

Rio Tinto is one of the worlds largest

producers of uranium. This uranium

is used exclusively for the generation

of nuclear electricity. We follow strict

security measures to ensure our

uranium products are used only

for peaceful purposes.

Rio Tinto is a leading internationalbusiness involved in each stageof metal and mineral production.The Group combines Rio Tinto plc,

which is listed on the LondonStock Exchange, and Rio TintoLimited, which is listed on the

Australian Securities Exchange.

We want to ensure the sustainable

future use of coal and uranium

as energy sources, and so we are

investing in various technologies

and areas of research that are

furthering this cause.

Burning coal is a major contributor

to man made greenhouse gases.

Rio Tinto has accepted the challenge,

with other producers and governments,to implement low emission technologies

to reduce emissions of greenhouse

gases to the atmosphere from the

combustion of coal.

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Coal is mined either from openpit mines at the Earths surface,or in underground mines.

Coal

Producing coal

Coal is formed from plants that grew on Earth millions ofyears ago. As the plants died, and became buried beneath

the Earths surface, they were exposed to heat, pressure

and chemical reactions that turned them into coal. The

worlds currently identied coal reserves can meet present

levels of demand for about 200 years.

Coal is mined either from open pit mines at the Earths

surface, or in underground mines. Once extracted, it is

sized and blended according to our customers needs,

then loaded into trains to be delivered or exported.

Using coal

Rio Tinto Energy produces two types of coal thermalcoal and coking coal:

Thermal coal: this is also known as steam coal. It is

primarily used to generate electricity in power stations.

The energy released when the coal is burned is used

to turn water into steam, which drives turbines that

generate electricity. We produce low sulphur coal,

which helps our customers meet their requirements

for low sulphur dioxide emissions.

Coking coal: this is also known as metallurgical coal

and is mainly used in making steel. It is a higher value

product than thermal coal. Coking coal supplies bothheat and carbon to the process that converts iron ore

into steel.

To ensure that coal remains a valuable long term energy

source for the world, coal producers and users need to

minimise the effects of burning coal, and reduce the

amount of carbon dioxide emissions from power plants.

Rio Tintos Energy group is involved in various initiatives

to help secure coals future as an energy source. These

include support for numerous research and demonstration

projects including the COAL21 programme in Australia.

To ensure that coal remains a valuable long termenergy source for the world, coal producers andusers need to minimise the effects of burningcoal, and reduce the amount of carbon dioxideemissions from power plants.

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We have a number of browneld and greeneldopportunities that will help meet rising demandfor coal and energy.

Top

Colowyo coal mine supplies electricitygenerators in the south west US.Right

Kestrel mine in Australia, where anexpansion project will help meetAsian coal demand.

Our coal operations

Rio Tintos coal operations are in

eastern Australia and the western US.

Australian operations

Rio Tinto Coal Australia (RTCA)

is a wholly owned subsidiary of

Rio Tinto. RTCA manages Rio Tinto

Energys coal mines in Queensland:

Blair Athol (Rio Tinto: 71 per cent),

Clermont (50.1 per cent), with coal

production commencing early 2010,

Kestrel (80 per cent), and Hail Creek(82 per cent).

Upon reaching full capacity,

scheduled for 2013, Clermont

will become Australias largest coal

producer. Production from Clermont

will replace that from Blair Athol.

RTCA also provides management

services to, and owns 75.7 per cent

of, Coal & Allied, which mines

coal in New South Wales. Coal &

Allied wholly owns the HunterValley Operations mines and has

partial ownership of other mines

in the region: Bengalla (Rio Tinto:

30.3 per cent), Mount Thorley

(60.6 per cent) and Warkworth

(42.1 per cent). Rio Tinto Coal

Australias deposits contain a

mixture of thermal and coking coal.

US operations

In 2007, Rio Tinto announced its

decision to explore divestment of

Rio Tinto Energy America (RTEA). At

that time, RTEA owned and operated

four coal mines in the USs Powder

River Basin of Montana and Wyoming

(Jacobs Ranch, Antelope, Spring

Creek and Cordero Rojo), and held

a 50 per cent interest in the Decker

coal mine. RTEA also owned the

Colowyo mine in Colorado.

Colowyo Coal, a Rio Tinto managedoperation, was separated from RTEA

in 2008 because it was not part of

the asset divestment programme.

In 2009, Rio Tinto sold Jacobs Ranch.

In the same year, Rio Tinto formed

Cloud Peak Energy Inc. and launched

an initial public offering (IPO) as a

way of divesting Antelope, Spring

Creek and Cordero Rojo, as well as the

stake in the Decker mine. Rio Tinto

has retained an interest of 48 per cent

in Cloud Peak.

Our coal projects

We have a number of browneld

and greeneld opportunities that

will help meet rising demand for

coal and energy.

Rio Tinto Coal Australia

Kestrel: a mine extension plan,

forecast to be in production

in late 2012/early 2013, will

help meet Asian demand for

metallurgical coal.

Coal & Allied

Mount Pleasant: the company

is currently reviewing the

2008 engineering feasibility

study to update the economic

assumptions and technical design

considerations for this coal mine

project next to the Bengalla mine.

Coal & Allied is in the process

of identifying modications

that may be required to the

existing regulatory consents

and approvals, and proceedingto apply for those remaining

regulatory consents and

approvals needed to progress

the proposed development of

Mount Pleasant.

Project work is continuing to

examine opportunities to expand

production at the Bengalla Mine

and to extend the mining life of

Mount Thorley and Warkworth.

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Producing uranium

Uranium, a metallic element, is one

of the most powerful natural sources

of energy. Its chemical properties can

be harnessed to produce electricity

without the generation ofcarbon dioxide.

At Rio Tintos uranium mines,

ore is blasted and transported to

a processing facility where it is

crushed to the size of ne sand.

Uranium is dissolved from the rock

using sulphuric acid, manganese and

iron oxide. It is then recovered from

the solution in a number of stages.

The uranium is extracted using an

organic liquor; the organic liquor

is then stripped using ammoniumsulphate to concentrate the uranium

for precipitation. Gaseous ammonia

is added to form a solid called yellow

cake, which is centrifuged and roasted

to produce uranium oxide powder.

This powder is the product that

Rio Tinto supplies to its customers.

Uranium

Left

Uranium, produced at Rssingand ERA (pictured) is used for thegeneration of nuclear energy.

Using uranium

Uranium oxide is transformed into

nuclear fuel through processes called

conversion and enrichment. The

resultant nuclear fuel rods are then

inserted into a nuclear reactor toproduce energy.

Nuclear energy is generated by the

splitting of uranium atoms, a process

that releases a large amount of heat.

This heat is then used to convert

water into high temperature steam,

which in turn drives the turbines

in a generator to produce electricity.

Nuclear energy is an important form

of low carbon emitting electricity

generation. The lifecycle carbonemissions arising from nuclear power

are comparable with solar and wind

power. The world is currently seeing

signicant growth in nuclear power

as governments grapple with the

challenge of reducing greenhouse

gas emissions.

Uraniums chemical properties

can be harnessed to produceelectricity without the generationof carbon dioxide.

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Coal Projects

Mount Pleasant (75.7%)

Uranium Operations

ERA (68%)

Rssing (69%)

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Energy group operations and projects

Coal Operations

Hail Creek (82%)

Clermont (50.1% operationalfrom 2010)/Kestrel (80%)

and Blair Athol (71%)

Bengalla (30%)

Hunter Valley Operations (76%)/

Mount Thorley Warkworth (61%)

Colowyo

Antelope (48.3%)/

Cordero Rojo (48.3%)

Spring Creek (48.3%)/

Decker (24.1%)

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Locations on the map are indicative

Operations and projects are whollyowned unless otherwise shown.

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United Kingdom

T +44 (0)20 7781 2000

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Melbourne, Victoria 3000

Australia

T +61 (0)3 9283 3333

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