Strong Foundation for Growth, Decarbonisation and Shareholder Returns

Iron Ore Strong pricing supports EBITDA Underlying EBITDA 2021 vs 2020 $ million 10,346 252 30,000 28,794 27,592 18,837 (88) (114) (187) (863) (591) 20,000 10,000 0 2020 Price Exchange rates Energy Inflation underlying EBITDA Flexed 2020 underlying EBITDA Volumes and Mix Cash costs Other 2021 underlying EBITDA Our Pilbara iron ore shipments decreased by 3% compared with 2020. Shipments were impacted by lower mined production due to above-average rainfall in the first half of 2021, cultural heritage management and delays in growth and brownfield mine replacement tie-in projects. Underlying EBITDA of $27.6 billion was 46% higher than 2020, driven by higher prices ($10.3 billion), with a 45% rise in the monthly average Platts index for 62% iron fines adjusted to an FOB basis compared with 2020. This more than compensated for the impact from reduced shipments and rising unit costs. 2021 Pilbara unit cash costs, which were $18.6 per tonne (excluding COVID-19 costs of $0.5 per tonne), marginally exceeded guidance of $18.0 to 18.5 per tonne and compared with $14.8 per tonne in 2020 (excluding COVID-19 costs of $0.6 per tonne). Unit cost performance was driven by higher input prices including labour, explosives and energy, a 9% stronger Australian dollar, an increase in the mine work index, operational readiness costs for our growth and brownfield mine replacement tie-in projects and fixed cost inefficiencies from lower volumes. - Our Pilbara operations delivered an underlying FOB EBITDA margin of 76%, compared with 74.0% in 2020. Gross product sales for our Pilbara operations included freight revenue of $2.7 billion (2020: $1.5 billion). We price the majority of our iron ore sales (77%) by reference to the average index price for the month of shipment. In 2021, we priced approximately 11% of sales with reference to the prior quarter's average index lagged by one month with the remainder sold either on current quarter average, current month average or on the spot market. We made approximately 72% of sales including freight and 28% on an FOB basis. We continue to increase our iron ore portside sales in China, with a total of 14.0 million tonnes in 2021 (2020: 5.5 million tonnes). We experienced increased inventory levels of Pilbara product at the port at December (2021: 8.8 million tonnes, 2020: 1.7 million tonnes), due to higher volumes of SP10 and constrained availability of high grade blending stocks in the fourth quarter. Rio Tinto ©2022, Rio Tinto, All Rights Reserved 42 52

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