Minas-Rio Impairment Considerations and Project Delivery

BUSINESS CASE FOR MINAS-RIO REMAINS INTACT (CONT.) 160 150 140 130 120 100 80 70 ༄ ཤྩ ༄ ྨ ༅ ༔ 8 ཚ ➢ CIF cost China (US$/t) Maintains a low cost position 60 Minas-Rio(1) 50 40 30 20 20 10 10 10% Alumina silica content High quality & low contaminant product Australia - high quality 8% Australia - medium quality 6% 4% India Other Africa CIS China (1) North America Sishen Dotted bubble indicates processed ore Brazil 26 2% Bubble size indicates an average production of 50 Mtpa Minas-Rio Phase1 Minas-Rio expansion 0 0% 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 56% 58% 60% 62% 64% Fe content 66% 68% 70% Volume (mt) (1) Indicative position. $20/t freight rate assumption Source: Macquarie, Anglo American (1) Chinese production (rich ore equivalent) inferred from a small sample of mines Source: CRU, AME, Anglo American 5

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