base metals in indo

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EXECUTIVE SUMMARY

Indonesia - Base Metals 0103 - 2431 - 2010

Datamonitor. This profile is a licensed product and is not to be photocopied Page 2

EXECUTIVE SUMMARY

Market value

The Indonesian base metals market grew by 27.2% in 2010 to reach a value of $9,160.2 million.

Market value forecast

In 2015, the Indonesian base metals market is forecast to have a value of $12,619.7 million, an increase

of 37.8% since 2010.

Market volume

The Indonesian base metals market shrank by 13.6% in 2010 to reach a volume of 977 thousand metric

ton.

Market volume forecast

In 2015, the Indonesian base metals market is forecast to have a volume of 857.7 thousand metric ton, adecrease of 12.2% since 2010.

Market segmentation I

Copper is the largest segment of the base metals market in Indonesia, accounting for 68.5% of the

market's total value.

Market segmentation II

Indonesia accounts for 18.9% of the Asia-Pacific base metals market value.

Market rivalry

The market is composed of a fairly small number of large companies, but they tend to operate in severalregions and have some diversification in their product portfolio; thereby minimizing competition.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7

Research highlights 8

Market analysis 9

MARKET VALUE 10

MARKET VOLUME 11

MARKET SEGMENTATION I 12

MARKET SEGMENTATION II 13

FIVE FORCES ANALYSIS 14

Summary 14

Buyer power 16

Supplier power 17

New entrants 18

Substitutes 19

Rivalry 20

LEADING COMPANIES 21

Newmont Mining Corporation 21

Rio Tinto 27

MARKET FORECASTS 31

Market value forecast 31

Market volume forecast 32

MACROECONOMIC INDICATORS 33

APPENDIX 35

Methodology 35

Related Datamonitor research 36

Disclaimer 37

ABOUT DATAMONITOR 38


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CONTENTS



Premium Reports 38

Summary Reports 38

Datamonitor consulting 38


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CONTENTS



LIST OF TABLES

Table 1: Indonesia base metals market value: $ million, 200610 10

Table 2: Indonesia base metals market volume: thousand metric ton, 200610 11

Table 3: Indonesia base metals market segmentation I:% share, by value, 2010 12

Table 4: Indonesia base metals market segmentation II: % share, by value, 2010 13

Table 5: Newmont Mining Corporation: key facts 21

Table 6: Newmont Mining Corporation: key financials ($) 24

Table 7: Newmont Mining Corporation: key financial ratios 25

Table 8: Rio Tinto: key facts 27

Table 9: Rio Tinto: key financials ($) 29

Table 10:

Rio Tinto: key financial ratios 29

Table 11: Indonesia base metals market value forecast: $ million, 201015 31

Table 12: Indonesia base metals market volume forecast: thousand metric ton, 201015 32

Table 13: Indonesia size of population (million), 200610 33

Table 14: Indonesia GDP (constant 2000 prices, $ billion), 200610 33

Table 15: Indonesia GDP (current prices, $ billion), 200610 33

Table 16: Indonesia inflation, 200610 34

Table 17: Indonesia consumer price index (absolute), 200610 34

Table 18: Indonesia exchange rate, 200610 34


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CONTENTS



LIST OF FIGURES

Figure 1: Indonesia base metals market value: $ million, 200610 10

Figure 2: Indonesia base metals market volume: thousand metric ton, 200610 11

Figure 3: Indonesia base metals market segmentation I:% share, by value, 2010 12

Figure 4: Indonesia base metals market segmentation II: % share, by value, 2010 13

Figure 5: Forces driving competition in the base metals market in Indonesia, 2010 14

Figure 6: Drivers of buyer power in the base metals market in Indonesia, 2010 16

Figure 7: Drivers of supplier power in the base metals market in Indonesia, 2010 17

Figure 8: Factors influencing the likelihood of new entrants in the base metals market in

Indonesia, 2010 18

Figure 9: Factors influencing the threat of substitutes in the base metals market in Indonesia,

2010 19

Figure 10: Drivers of degree of rivalry in the base metals market in Indonesia, 2010 20

Figure 11: Newmont Mining Corporation: revenues & profitability 25

Figure 12: Newmont Mining Corporation: assets & liabilities 26

Figure 13: Rio Tinto: revenues & profitability 30

Figure 14: Rio Tinto: assets & liabilities 30

Figure 15: Indonesia base metals market value forecast: $ million, 201015 31

Figure 16: Indonesia base metals market volume forecast: thousand metric ton, 201015 32


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MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The base metals market consists of lead, zinc, copper, nickel, and tin. Volumes are annual mineproduction of each metal. Volumes are converted to values using annual average LME prices for each

metal. All currency conversions in this profile were calculated using constant 2010 average exchange

rate.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New

Zealand, Singapore, South Korea, Taiwan, and Thailand.


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MARKET OVERVIEW



Research highlights

The Indonesian base metals industry had total revenues of $9.2 billion in 2010, representing a compound

annual rate of change (CARC) of -2.2% for the period spanning 2006-2010.

Industry production volumes decreased with a CARC of -1.9% between 2006 and 2010, to reach a total of

977 thousand metric tons in 2010.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 6.6% for the five-

year period 2010-2015, which is expected to drive the industry to a value of $12.6 billion by the end of

2015.


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MARKET OVERVIEW



Market analysis

The Indonesian base metals industry is forecasted to accelerate in revenue growth and a continuing

decline in production volumes for 2010-2015.

Indonesia ranks among the worlds five largest producers of copper and nickel.

The Indonesian base metals industry had total revenues of $9.2 billion in 2010, representing a compound

annual rate of change (CARC) of -2.2% for the period spanning 2006-2010. In comparison, the Chinese

and Indian industry increased with a CAGR of 5% and 2.6%, over the same period, to reach respective

values of $23.5 billion and $2.1 billion in 2010.

Industry production volumes decreased with a CARC of -1.9% between 2006 and 2010, to reach a total of

977 thousand metric tons in 2010. The industry's volume is expected to decline to 857.7 thousand metric

tons by the end of 2015, representing a CARC of -2.6% for the 2010-2015 period.

Copper sales proved the most lucrative for the Indonesian base metals industry in 2010, with total

revenues of $6.3 billion, equivalent to 68.5% of the industry's overall value. In comparison, sales of nickelgenerated revenues of $1.7 billion in 2010, equating to 18.1% of the industry's aggregate revenues.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 6.6% for the five-

year period 2010-2015, which is expected to drive the industry to a value of $12.6 billion by the end of

2015. Comparatively, the Chinese and Indian industries will grow with CAGRs of 14% and 18.8%

respectively, over the same period, to reach respective values of $45.2 billion and $5 billion in 2015.


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MARKET VALUE



MARKET VALUE

The Indonesian base metals market grew by 27.2% in 2010 to reach a value of $9,160.2 million.

The compound annual rate of change of the market in the period 200610 was -2.2%.

Table 1: Indonesia base metals market value: $ million, 200610

Year $ million IDR million million % Growth

2006 10,015.0 91,367,757.4 7,541.9

2007 15,202.6 138,695,365.5 11,448.6 51.8%

2008 10,231.3 93,341,808.7 7,704.9 (32.7%)

2009 7,203.2 65,715,478.5 5,424.5 (29.6%)

2010 9,160.2 83,569,730.2 6,898.2 27.2%

CAGR: 200610 (2.2%)

Source: Datamonitor D A T A M O N I T O R

Figure 1: Indonesia base metals market value: $ million, 200610



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MARKET VOLUME



MARKET VOLUME

The Indonesian base metals market shrank by 13.6% in 2010 to reach a volume of 977 thousand metric

ton.

The compound annual rate of change of the market in the period 200610 was -1.9%.

Table 2: Indonesia base metals market volume: thousand metric ton, 200610

Year thousand metric ton % Growth

2006 1,055.9

2007 1,092.0 3.4%

2008 921.2 (15.6%)

2009 1,130.4 22.7%

2010 977.0 (13.6%)

CAGR: 200610 (1.9%)


Figure 2: Indonesia base metals market volume: thousand metric ton, 200610



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MARKET SEGMENTATION I



MARKET SEGMENTATION I

Copper is the largest segment of the base metals market in Indonesia, accounting for 68.5% of the

market's total value.

The nickel segment accounts for a further 18.1% of the market.

Table 3: Indonesia base metals market segmentation I:% share, by value, 2010

Category % Share

Copper 68.5%

Nickel 18.1%

Tin 13.3%

Total 100%


Figure 3: Indonesia base metals market segmentation I:% share, by value, 2010



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MARKET SEGMENTATION II



MARKET SEGMENTATION II

Indonesia accounts for 18.9% of the Asia-Pacific base metals market value.

China accounts for a further 48.3% of the Asia-Pacific market.

Table 4: Indonesia base metals market segmentation II: % share, by value, 2010

Category % Share

China 48.3%

Australia 28.3%

Indonesia 18.9%

India 4.4%

Rest of Asia-Pacific 0.1%

Total 100%


Figure 4: Indonesia base metals market segmentation II: % share, by value, 2010



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FIVE FORCES ANALYSIS




The base metals market will be analyzed taking metal mining and refining companies as players. The key

buyers will be taken as manufacturers of products such as copper cables and galvanized (zinc-coated)

steel, and energy suppliers and landowners will be taken as the key suppliers.

Summary

Figure 5: Forces driving competition in the base metals market in Indonesia, 2010


The market is composed of a fairly small number of large companies, but they tend to operate in several

regions and have some diversification in their product portfolio; thereby minimizing competition. Buyer

power is limited by the large number and variety of buyers. Supplier power is strengthened by their own

diverse range of buyers which makes them less reliant on the revenues from this markets players.

However, backward vertical integration by some players into energy supply weakens supplier power (Rio

Tinto, for example, have their own hydropower generating facilities). Base metals are commodities and

their lack of differentiation strengthens buyer power. Successful players like Rio Tinto have differentiated

themselves by offering additional goods and services. Whilst little product differentiation might attract newentrants, high capital outlays and fixed costs could deter them, in addition to Indonesian mining laws.

There are high exit costs too, which increases rivalry amongst incumbents. However, diversification, in

terms of products and geographical markets, helps ameliorate competition in any given market.


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Global metal prices are volatile and successful new entrants must have a robust business to survive slow

increases and downturns in prices. Improving global economic conditions have benefited commodity

prices; thereby improving the market and attracting new entrants and easing competition amongst

incumbents.


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Buyer power

Figure 6: Drivers of buyer power in the base metals market in Indonesia, 2010


Base metals have diverse applications. Just under half of global zinc consumption is for galvanized steel,

but it is also used in brass and other alloys; copper is used primarily for electrical applications such as

cables, but also has applications in pipes, and other products. Aluminum is used in aerospace,automotive, construction, and packaging applications. This diversity means that there are many potential

buyers, which weakens buyer power. There are, however, some large customers which exercise greater

financial power. All these metals are commodities, and the lack of differentiation strengthens buyer power.

However, leading players may differentiate themselves by offering additional goods and services, such as

fabricated products, or chemicals made from their metals (e.g. copper sulfate). This is true of Rio Tinto

which offers chemicals such as borate as by-products of its operations. Companies buying base metals

generally do so because these commodities are very important to their own operations; further weakening

buyer power. Buyer power can also be weakened by the use of long-term supply contracts, which

imposes switching costs on buyers. Overall, buyer power is moderate. However, it should be noted that

the relationship between a players revenue and global metal prices, which is largely outside its control,means that buyer power in practice may be rather stronger than this analysis indicates.


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Supplier power

Figure 7: Drivers of supplier power in the base metals market in Indonesia, 2010


Base metal companies view their ore reserves as key assets, and gaining access to land where they can

establish mining operations is vital. This may involve negotiating with private landowners or government

agencies. It is common for mining companies to pay royalties on their production: this is analogous to thecost of sales, as it is usually calculated as a percentage of the companys metal revenues or production.

Raw material differentiation is significant in this context. Higher quality reserves (e.g. ores with higher

content of the metal of interest) should offer a better return on the costs of mining and refining; lower

quality ore, or a mine location that is difficult to develop, would give a smaller return. Deciding on whether

it is economical to acquire and exploit a new reserve may depend on current and future metal prices,

which means that supplier power can also vary. Mining and smelting is energy-intensive, and market

players may have long-term supply contracts with suppliers of electrical power or fuels. Typically, these

suppliers will be large companies, and a market player may not always be able to choose its utility

supplier. However, it may be possible to reduce dependence on these powerful suppliers through auto-

generation of electricity, i.e. backwards vertical integration. Overall, supplier power is strong.


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New entrants

Figure 8: Factors influencing the likelihood of new entrants in the base metals market in

Indonesia, 2010


There are relatively high barriers to entry to the base metals market. A new company needs enough

capital to acquire mining rights, establish mines, smelters, transportation links, and so on. Alternatively, acompany operating in a different business area might enter the market through acquisition of a base

metals player, but this is also likely to be costly. Indonesian market growth was strong up till decline in

2008 which continued into 2009. This trend was reversed, however, in 2010 and the compound annual

growth rate (CAGR) for 2010-2015 is forecast to be 6.6 per cent. This could encourage new players. In

addition, commodity prices have been steadily rising since March 2009 with the improvement in the global

economy. However, global metal prices can be volatile. They reflect multiple factors, such as reserves,

supply, demand from several end-user sectors, and commodity investment activities (including

speculation). Successful new entrants must have a business robust enough to survive slower increases

and downturns in prices. Government regulation also inhibits market entry. New mining laws recently

passed in Indonesia favor small and medium sized companies as local governments have greater controlover the nations abundant resources, these conditions will discourage foreign investors already wary

about legal uncertainties and could discourage new (foreign) entrants. Overall, the likelihood of new

entrants is moderate.


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Substitutes

Figure 9: Factors influencing the threat of substitutes in the base metals market in Indonesia,

2010


Substitutes vary from one metal to another. In some cases, one base metal can substitute for another.

For example, copper and aluminum both find application in electrical cable manufacturing. Buyers ofeither metal for data communication cable applications might respond to excessive price rises by shifting

production towards the other metal, or towards fiber optic cables made from plastics. However, in general,

buyers are seeking the particular chemical and physical properties that only these metals have. For

example, brass is defined as an alloy of copper and zinc, and so a brass mill cannot avoid using these

metals in its operations. Overall, the threat of substitutes is weak.


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Rivalry

Figure 10: Drivers of degree of rivalry in the base metals market in Indonesia, 2010


The Indonesian market is quite fragmented, although concentration within certain segments is higher.

Recent mergers and acquisitions in this market, such as Rio Tintos acquisition of Alcan and Freeport-

McMoRans acquisition of Phelps Dodge (both in 2007) have consolidated the market, reducing thenumber of players but increasing their size. Rivalry was increased when the market fell into decline in

2008 and 2009. However, this trend was reversed in 2010 with very strong market growth rates and is set

to grow with a CAGR of 6.6% between 2010 and 2015, which, coupled with improving commodity prices,

should ease competition. Exit costs are high as a company leaving the market will need to dispose of

mines, smelters, and similarly costly and highly industry-specific assets. This compels players to remain

in competition, even when fighting for a share of a decelerating or diminishing global market, and will

boost rivalry. Leading companies such as Rio Tinto have diversified into several commodity metals, and

integrated vertically forwards to provide chemicals like borate. These strategies should provide some

protection against the fluctuations of the base metal market itself. Overall, rivalry is strong.


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LEADING COMPANIES



LEADING COMPANIES

Newmont Mining Corporation

Table 5: Newmont Mining Corporation: key facts

Head office: 6363 South Fiddler's Green Circle, Greenwood Village, Denver,Colorado 80111, USA

Telephone: 1 303 863 7414

Fax: 1 303 837 5837

Local office: Newmont Nusa Tenggara, PT, 258 Jl. Sriwijaya, Mataram, WestNusa Tenggara 83126, IDN

Telephone: 62 3 72 635 318

Fax: 62 3 72 635 318

Website: www.newmont.com

Financial year-end: DecemberTicker: NEM

Stock exchange: New York

Source: company website D A T A M O N I T O R

Newmont Mining Corporation (Newmont) is a producer of gold and copper. The company has assets and

operations in the US, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of

December 2009, the latest date for which information is available, Newmont had proven and probable

gold reserves of 91.8 million equity ounces and an aggregate land position of approximately 33,400square miles (86,500 square kilometers). Its proven and probable copper reserves were 9,100 million

equity pounds.

The company primarily operates in a single industry, namely exploration for and production of gold.

Newmont is also engaged in the production of copper, principally through its Batu Hijau operation in

Indonesia and Boddington operation in Australia.

Newmont operates through four segments, namely, North America, South America, Asia-Pacific, and

Africa.

The company's North America segment consists primarily of Nevada, La Herradura in Mexico, and HopeBay in Canada.

The Nevada operations of the company produce gold from a variety of ore types requiring different

processing techniques depending on economic and metallurgical characteristics.


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LEADING COMPANIES



The company's operations in Nevada include the following: Carlin, located west of the city of Elko on the

geologic feature known as the Carlin Trend; the Phoenix mine, located 10 miles south of Battle Mountain;

the Twin Creeks mine, located approximately 15 miles north of Golconda; and the Midas mine near the

town of the same name. The company also has 25% interest in the Turquoise Ridge joint venture with a

subsidiary of Barrick Gold Corporation (Barrick), which utilizes mill capacity at Twin Creeks.

Newmont's Nevada operations has sales and refining agreements with Gerald Metals, Penoles, Johnson

Matthey, Just Refiners, and Glencore to process intermediate gold-bearing product.

Gold sales from Nevada totaled approximately 2.0 million ounces for FY2009 with ore mined from eight

open pit and six underground mines. At December 31, 2009, the company reported 28.5 million equity

ounces of gold reserves in Nevada, with 84% of those ounces in open pit mines and 16% in underground

mines.

In Mexico, Newmont has a 44% interest in La Herradura, which is located in Mexico's Sonora desert. LaHerradura is operated by Fresnillo (which owns the remaining 56% interest) and comprises open pit

operations with run-of-mine heap leach processing. La Herradura sold 112,500 ounces of gold

attributable to Newmont in FY2009 and at December 31, 2009 Newmont reported 1.8 million equity

ounces of gold reserves at La Herradura. La Herradura is currently developing two new deposits, Soledad

and Dipolos.

In Canada, Newmont owns 100% of the Hope Bay project, a large undeveloped gold project in the

Nunavut Territory of Canada. Since acquiring this property in 2008, Newmont has made significant

infrastructure improvements and identified an additional 45 new drilling targets. The company is currently

evaluating an underground operation to advance production.

The company's South America segment consists primarily of Minera Yanacocha (Yanacocha) and Conga

in Peru.

The Yanacocha operation has mining rights with respect to a large land position consisting of

concessions granted by the Peruvian government to Yanacocha and a related entity. It currently has three

active open pit mines: Cerro Yanacocha, La Quinua, and Chaquicocha. The properties of Yanacocha are

located approximately 375 miles north of Lima and 30 miles north of the city of Cajamarca, in Peru. The

company holds a 51.35% interest in Yanacocha with the remaining interests held by Compania de Minas

Buenaventura (43.65%) and the International Finance Corporation (5%). In addition, reclamation and/or

backfilling activities at Carachugo, San Jose, and Maqui are currently underway. Further, Yanacocha hasfour leach pads, three processing facilities, and one mill. The Yanacocha operations contain the Conga

deposit.

Yanacocha's gold sales for FY2009 totaled 2.1 million ounces (1.1 million equity ounces) and at

December 31, 2009, Newmont reported 5.4 million equity ounces of gold reserves at Yanacocha.


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LEADING COMPANIES



The Conga project (51.35% owned by Newmont) is located within close proximity of existing operations at

Yanacocha. Feasibility studies on Newmont's preferred development option were completed in FY2009

and a construction decision is expected in the fourth quarter of FY2010 assuming government approval.

The project is progressing into the development stage with production expected in 2014-15. At December

31, 2009, Newmont reported 6.1 million equity ounces of gold reserves and 1,660 million equity pounds of

copper reserves at Conga.

The company's Asia-Pacific segment consists primarily of Batu Hijau in Indonesia, Boddington in

Australia, and other smaller operations in Australia/New Zealand.

Batu Hijau is a large porphyry copper/gold deposit which Newmont discovered in 1990. It is located on the

island of Sumbawa, east of Jakarta. The company owns 35.44% of the Batu Hijau mine through the Nusa

Tenggara Partnership (NTP) with an affiliate of Sumitomo Corporation of Japan. In FY2009, copper sales

were 497.7 million pounds (217.0 million equity pounds), while gold sales were 550,500 ounces (239,700

equity ounces). At December 31, 2009, Newmont reported 4,520 million equity pounds of copper reservesand 4.5 million equity ounces of gold reserves at Batu Hijau.

In Australia, Newmont wholly owns Boddington, which is located 81 miles southeast of Perth in Western

Australia. Boddington commenced commercial production in November 2009. Boddington sold 103,300

ounces of gold, including 8,200 incremental start-up ounces, and 9.0 million pounds of copper in FY2009.

At December 31, 2009, Newmont reported 21.0 million equity gold ounces and 2,040 million equity

copper pounds of reserves at Boddington.

Besides Boddington, in Australia/New Zealand, Newmont has its operations at Jundee, Tanami, Kalgoorli,

and Waihi.

Newmont wholly owns Jundee, which is situated approximately 435 miles northeast of Perth in Western

Australia. In FY2009, Jundee sold 412,300 ounces of gold and at December 31, 2009, Newmont reported

1.2 million equity ounces of gold reserves at Jundee.

Newmont wholly owns Tanami that includes the Granites treatment plant and associated mining

operations, which are located in the Northern Territory approximately 342 miles northwest of Alice

Springs, and the Dead Bullock Soak mining operations, approximately 25 miles west of the Granites.

During FY2009, the Tanami operations sold 290,900 ounces of gold and at December 31, 2009 Newmont

reported 1.6 million equity ounces of gold reserves at Tanami.

Newmont has 50% ownership in Kalgoorlie, which comprises the Fimiston open pit (commonly referred to

as the Super Pit) and Mt. Charlotte underground mine at Kalgoorlie-Boulder, 373 miles east of Perth in

Western Australia. The mines are managed by Kalgoorlie Consolidated Gold Mines for the joint venture

owners, Newmont and Barrick. The Super Pit is one of Australia's largest gold mines in terms of gold

production and annual mining volume.


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LEADING COMPANIES



During FY2009, the Kalgoorlie operations sold 335,800 equity ounces of gold and at December 31, 2009

Newmont reported 4.2 million equity ounces of gold reserves at Kalgoorlie.

Newmont wholly owns Waihi, which is located within the town of Waihi, approximately 68 miles southeast

of Auckland, New Zealand. It consists of the Favona underground deposit and the Martha open pit. The

Waihi operation sold 118,200 ounces of gold in FY2009 and at December 31, 2009 Newmont reported

0.4 million equity ounces of gold reserves at Waihi.

The company's Africa segment consists primarily of its operations in Ahafo and Akyem in Ghana.

Newmont wholly owns its Ahafo operation, which is located in the Brong-Ahafo Region of Ghana,

approximately 180 miles northwest of Accra. Newmont operates three open pits at Ahafo with reserves

contained in 17 pits. Development of a fourth pit is underway and production is expected to begin in

FY2010. The process plant consists of a conventional mill and carbon-in-leach circuit. Ahafo sold 546,400

ounces of gold in FY2009 and at December 31, 2009, Newmont reported 9.1 million equity ounces of goldreserves at Ahafo.

Newmont wholly owns Akyem, which is located approximately 80 miles northwest of Accra. Newmont has

received the environmental permit and the mining lease for Akyem and it is advancing the project towards

a development decision, which could result in production in 2013-14. At December 31 2009, the company

reported 7.7 million equity ounces of gold reserves at Akyem.

Key Metrics

The company recorded revenues of $7,705 million in the fiscal year ending December 2009, an increase

of 24.3% compared to fiscal 2008. Its net income was $1,297 million in fiscal 2009, compared to a netincome of $853 million in the preceding year.

Table 6: Newmont Mining Corporation: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 4,352.0 4,987.0 5,526.0 6,199.0 7,705.0

Net income (loss) 322.0 791.0 (1,886.0) 853.0 1,297.0

Total assets 13,992.0 15,601.0 15,598.0 15,839.0 22,299.0

Total liabilities 4,685.0 5,166.0 8,050.0 8,737.0 11,596.0

Source: company filings D A T A M O N I T O R


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LEADING COMPANIES



Table 7: Newmont Mining Corporation: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 7.4% 15.9% (34.1%) 13.8% 16.8%Revenue growth 0.6% 14.6% 10.8% 12.2% 24.3%

Asset growth 9.6% 11.5% 0.0% 1.5% 40.8%

Liabilities growth 15.5% 10.3% 55.8% 8.5% 32.7%

Debt/asset ratio 33.5% 33.1% 51.6% 55.2% 52.0%

Return on assets 2.4% 5.3% (12.1%) 5.4% 6.8%


Figure 11: Newmont Mining Corporation: revenues & profitability



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LEADING COMPANIES



Figure 12: Newmont Mining Corporation: assets & liabilities



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LEADING COMPANIES



Rio Tinto

Table 8: Rio Tinto: key facts

Head office: 2 Eastbourne Terrace, London, W2 6LG, GBR

Telephone: 44 20 7781 2000

Fax: 44 20 7781 1800

Local office: Rio Tinto Indonesia, PT, Menara Anugrah 15th Floor, Jl. MegaKuningan Lot. 8.6-8.7, Kantor Taman E.3.3, Kuningan Timur, SetiaBudi, Jakarta, Jakarta 12950, IDN

Telephone: 62 2 1576 4551

Fax: 62 2 1579 41884

Website: www.riotinto.com

Financial year-end: December

Ticker: RTP, RIO, RIO

Stock exchange: New York, London, Sydney

Source: company website D A T A M O N I T O R

Rio Tinto plc and Rio Tinto Limited (collectively known as Rio Tinto), operate as a single business

organization that is engaged in international mining. This encompasses exploring for, mining, and

processing the earth's mineral resources. The group offers products which include aluminum, copper,

diamonds, energy products (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, and

talc), and iron ore. The group has global operations with significant businesses in Australia, North

America, South America, Asia, Europe, and South Africa.

Rio Tinto operates through six business groups: aluminum; copper; diamonds and minerals; energy; iron

ore; and other operations.

Rio Tinto's aluminum group operates through the wholly-owned, integrated aluminum subsidiary, Rio

Tinto Alcan. Rio Tinto Alcan is one of the world's largest producers of bauxite, alumina, and aluminum.

Rio Tinto Alcan provides bauxite, alumina, specialty aluminas, and aluminum products.

Rio Tinto's copper group is one of the largest producers of copper, and valuable byproducts. It has a

diverse mix of operations and projects located in North and South America, Africa, Asia, and Australia.

The group offers copper, gold, molybdenum, silver, and nickel.

The diamonds and minerals group comprises Rio Tinto Diamonds (RTD), Rio Tinto Minerals (RTM), and

Rio Tinto Iron & Titanium (RTIT). RTD accounts for about 6% of the world's production of rough diamonds

by value.


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LEADING COMPANIES



RTM is a global leader in borates and talc supply and RTIT is a market leader in titanium dioxide

feedstock, used in the manufacture of pigments for paints and plastics. The segment provides diamonds,

borates, titanium dioxide feedstocks, talc, high purity iron, metal powders, zircon, and rutile products.

The energy business group is one of the biggest suppliers of thermal and coking coal to the Asian

seaborne market and is the largest uranium producer supplying uranium oxide to electric power utilities

worldwide. Rio Tinto Coal Australia manages eight coal mines in Queensland and New South Wales. In

the US, the group operates the Colowyo coal mine and has a 48 % interest in Cloud Peak Energy.

Rio Tinto's iron ore group wholly owns Hamersley Iron mines, and Corumba mine in Brazil. Hamersley

Iron operates nine mines including one mine in joint venture. It also includes the Dampier Salt operations

at three sites in Western Australia. Rio Tinto has 53% interest in Robe River mines in Australia and 59%

interest in Iron Ore Company of Canada. The company has 95% interest in the Simandou iron ore project

in Guinea and 51% interest in a joint venture with the state owned Orissa Mining Corporation to develop

its iron ore leases in Orissa (India). The group also has 60% interest in the HIsmelt direct iron makingplant in Australia.

The other operations business group of Rio Tinto comprises its exploration, and technology and

innovation business groups.

The exploration group is organized into five geographically based teams in North America, South

America, Australia, Asia, and Africa/Europe; and a sixth project generation team that searches the world

for new opportunities and provides geological, geophysical, and commercial expertise to the regional

teams.

The technology and innovation group has bases in Australia, Canada, the UK, and the US. Its role is to

identify and promote best operational technology practice across the group and to pursue step change

innovation of strategic importance to ore bodies of the future.

Key Metrics

The company recorded revenues of $41,825 million in the fiscal year ending December 2009, a decrease

of 22.9% compared to fiscal 2008. Its net income was $5,335 million in fiscal 2009, compared to a net

income of $4,609 million in the preceding year.


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LEADING COMPANIES



Table 9: Rio Tinto: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 19,033.0 22,465.0 29,700.0 54,264.0 41,825.0Net income (loss) 5,215.0 7,867.0 7,746.0 4,609.0 5,335.0

Total assets 29,803.0 34,494.0 101,091.0 89,616.0 97,236.0

Total liabilities 14,064.0 15,109.0 75,067.0 67,155.0 51,311.0

Employees 32,000 35,000 51,677 54,264 56,894


Table 10: Rio Tinto: key financial ratios

Ratio 2005 2006 2007 2008 2009Profit margin 27.4% 35.0% 26.1% 8.5% 12.8%

Revenue growth 67.8% 18.0% 32.2% 82.7% (22.9%)

Asset growth 13.3% 15.7% 193.1% (11.4%) 8.5%

Liabilities growth 2.5% 7.4% 396.8% (10.5%) (23.6%)

Debt/asset ratio 47.2% 43.8% 74.3% 74.9% 52.8%

Return on assets 18.6% 24.5% 11.4% 4.8% 5.7%

Revenue per employee $594,781 $641,857 $574,724 $1,000,000 $735,139

Profit per employee $162,969 $224,771 $149,893 $84,937 $93,771



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LEADING COMPANIES



Figure 13: Rio Tinto: revenues & profitability


Figure 14: Rio Tinto: assets & liabilities



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MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2015, the Indonesian base metals market is forecast to have a value of $12,619.7 million, an increaseof 37.8% since 2010.

The compound annual growth rate of the market in the period 201015 is predicted to be 6.6%.

Table 11: Indonesia base metals market value forecast: $ million, 201015

Year $ million IDR million million % Growth

2010 9,160.2 83,569,730.2 6,898.2 27.2%

2011 8,982.2 81,945,851.0 6,764.2 (1.9%)

2012 9,028.7 82,369,891.6 6,799.2 0.5%

2013 10,444.3 95,284,571.2 7,865.2 15.7%

2014 11,326.1 103,329,178.9 8,529.3 8.4%

2015 12,619.7 115,130,979.6 9,503.5 11.4%

CAGR: 201015 6.6%


Figure 15: Indonesia base metals market value forecast: $ million, 201015



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MARKET FORECASTS



Market volume forecast

In 2015, the Indonesian base metals market is forecast to have a volume of 857.7 thousand metric ton, a

decrease of 12.2% since 2010.

The compound annual rate of change of the market in the period 201015 is predicted to be -2.6%.

Table 12: Indonesia base metals market volume forecast: thousand metric ton, 201015

Year thousand metric ton % Growth

2010 977.0 (13.6%)

2011 785.0 (19.7%)

2012 829.8 5.7%

2013 831.9 0.3%

2014 837.3 0.6%

2015 857.72.4%

CAGR: 201015 (2.6%)


Figure 16: Indonesia base metals market volume forecast: thousand metric ton, 201015



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MACROECONOMIC INDICATORS




Table 13: Indonesia size of population (million), 200610

Year Population (million) % Growth

2006 231.8 1.3%

2007 234.7 1.2%

2008 237.5 1.2%

2009 240.3 1.2%

2010 243.0 1.1%


Table 14: Indonesia GDP (constant 2000 prices, $ billion), 200610

Year Constant 2000 Prices, $ billion % Growth

2006 220.4 5.5%

2007 234.3 6.3%

2008 248.4 6.0%

2009 259.5 4.5%

2010 275.0 6.0%


Table 15: Indonesia GDP (current prices, $ billion), 200610

Year Current Prices, $ billion % Growth

2006 356.4 26.4%

2007 404.2 13.4%

2008 445.1 10.1%

2009 452.6 1.7%

2010 504.0 11.4%



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Table 16: Indonesia inflation, 200610

Year Inflation Rate (%)

2006 13.1%2007 6.4%

2008 10.0%

2009 4.6%

2010 5.1%


Table 17: Indonesia consumer price index (absolute), 200610

Year Consumer Price Index (2000 =100)

% Growth

2006 176.5 13.1%

2007 187.8 6.4%

2008 206.6 10.0%

2009 216.1 4.6%

2010 227.1 5.1%


Table 18: Indonesia exchange rate, 200610

Year Exchange rate ($/IDR) Exchange rate (/IDR)

2006 9,183.7726 11,522.4929

2007 9,138.5019 12,504.4497

2008 9,684.8890 14,171.4184

2009 10,428.8831 14,501.4783

2010 9,123.1312 12,114.6419



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APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases Created using 250,000+ industry interviews and consumer surveys

and supported by analysis from industry experts using highly complex modeling & forecasting tools,

Datamonitors in-house databases provide the foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news, analyst

commentary, company profiles and macroeconomic & demographic information, which enable our

researchers to build an accurate market overview

Definitions Market definitions are standardized to allow comparison from country to country. The

parameters of each definition are carefully reviewed at the start of the research process to ensure they

match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest

industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative

and qualitative data to be combined with related macroeconomic and demographic drivers to create

market models and forecasts, which can then be refined according to specific competitive, regulatory

and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and

up-to-date


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APPENDIX



Related Datamonitor research

Industry Profile

Base Metals in Europe

Base Metals in Asia-Pacific

Base Metals in Canada

Base Metals in the US

Base Metals in China


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APPENDIX



Disclaimer

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permission of the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.

Please note that the findings, conclusions and recommendations that Datamonitor delivers will be

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