Rio Tinto Coal Mozambique. Refining the sedimentological model of the Moatize Basin Sediments, Stratigraphy & Coal

Transcription

1 Rio Tinto Coal Mozambique Refining the sedimentological model of the Moatize Basin Sediments, Stratigraphy & Coal

2 Cautionary Statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited ( Rio Tinto ) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-Looking Statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding RioTinto s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Rio Tinto s present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Except as required by applicable regulations or by law, Rio Tinto does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share.

3 Tete coal bearing lithology's First coal documented in 1859 by Richard Thornton on one of Dr Livingstone s expeditions. Mr. Thornton stated that the coal, which was dug by natives from an outcropping seam on the bank of the River Muntizi, showed no tendency to cake; was free-burning; contained very little sulphur or iron although a large proportion of ash along with a small amount of gaseous matter Commercial mining in Moatize commenced early 1900 s. Historical geological thinking driven by the coals around Moatize. Formation broken into:- Matinde Formation Thin coals Moatize Formation Economic coal zone Vuzi Formation Basal coal and tillites Moatize Formation focused on the Chipanga seam.

4 RTCM in Tete area of Focus RTCM Context of coal in this presentation is geological not economic.

5 Productive & Matinde Formations Lithologies Upper Matinde Lower Matinde Moatize (Productive) Argillites, sandstones & coals Pebbly sandstones & Conglomerates Siltstones, sandstones, argillites & coal seams Key questions? What is the boundary between Matinde & Moatize Formations Coal potential in the Matinde Formation? How do we know where we are in the sequence?

6 On the ground Coal Outcrop in Matinde Formation Coal development in the tillites

7 East 946 Geology West Centre

8 Moatize and Minjova - underlying basin structure Strong evidence of syn-depositional and post-depositional faulting Complex basin structure Minas de Moatize Moatize Benga Post Karoo Intrusion Karoo Karoo -Uplifted Basement Basement

9 Building a Facies model Re-logging old core Integrating with Geophysics Looking for geological fundamentals

10 Facies & Stratigraphy Ivb -Va Facies Diagnostics Fining upwards sequences a sequence channel sandstones b sequence interchannel sediments Changes Erosional Gradational Sequence succession from the top of the B Seam to the base of the C Seam is diagnostic (between Sousa Pinto and Chipanga). No marker horizon apart from Dwyka False Markers Re-worked Dwyka Classic coal seams IVa -IVb IIb -IIIa IIa -Ib Ia -Ib IIIb -IVa Basement - Ia

11 Geology Benga View of North wall and D-Seam Erosional roof contact Fining up sequence of a migrating channel Resulting in a thinner coal seam Channel 1 Channel 2 Coal Bearing Unit

12 Coals and interburdens A graph showing ash against yield for 4 plys in a seam Ash % Yield %

13 Type log for the Moatize and Matinde formations 1.3km

14 Understanding ash chemistry relationships Ash chemistry highlights:- Intra ply variations Inter ply variations Inter seam variations Provides insights into:- Ply interpolation Dilution within coal Marker seams

15 Facies Picking from Geophysics Productive Sequence Matinde Formation

16 Basin fill directions Hiatus s with coal erosion

17 Textural Mapping

18 945 section 100m 500m

19 945 section 100m 500m

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21 945 Section Documented Fomations Formations Legend Sedimentary Zones Post Karoo Intrusive Depositional Environment Sedimentary Process Coal Styles RTCM Coals Top FM Fluvial? River channel system? Discordant lenses Matinde Upper FM 2 Upper FM 1 Marsh Marsh system with thicker coal seams interbanded with mudstone. Seams are separated by sandstone packages. Thicker upper seams Matinde Middle Zone River Channel and Marsh Transition zone between the underlying river channel system with a series of abandon channels and the overlying marsh system with thick mudstone dominated packages. Discordant lenses Moatize Lower FM 2 Zone 7-10 Zone 6 Zone 5 Zone 4 Fluvial River channel system with less correlatable coal seams. River channel system with correlatable coal seams. Discordant lenses Correlatable seams K,L,M H,I,J F,G 100m Moatize Lower FM 1 Zone 3 Zone 2 Braided Delta Braided delta system with interchannel coal formation. Correlatable seams E D Zone 1 Post Glacial Post Glacial outwash fans and channels.lake and marsh system at top of sequence containing C- seam. Correlatable seams Vuzi FM Dwyka Glacial A B,C 500m Tete Suite Basement Intrusive Basement None

22 Geology of RTCM Licenses

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24 Conclusion Up to 1.5km of Lower Karoo sedimentary rocks preserved in the Tete Moatize Basin. Moatize and Matinde formations far more prevalent and complex than previously documented. Matinde Formation may be broken up into 4 separate units. All Matinde Formation units have coal intervals these are typically associated with discrete siltstone & mudstones. Possibly >50 coal bearing units in a fully preserved Moatize - Matinde sequences.