About Rio Tinto A global leader in mining, metals and minerals

Transcription

1 A global leader in mining, metals and minerals

2 Rio Tinto is a world leader in finding, mining and processing the Earth s mineral resources. We have the people, capabilities and resources to supply a world hungry for metals and minerals. Cover image The contribution of mining to modern infrastructure and urbanisation. Above In the heart of the Gobi desert, Oyu Tolgoi is set to be one of the world s top-five copper producers once fully developed. From our diverse portfolio we supply the metals and minerals that help the world to grow. Our products go into the infrastructure of our towns and cities, into cars and mobile phones, into healthcare and renewable energy solutions and a myriad of other applications that help fulfil vital consumer needs and improve living standards. We operate, and eventually close, our operations safely, responsibly and sustainably. The diversity of our people about 71,000 in more than 40 countries enriches the blend of skills, experience and personalities that makes us successful. By continually engaging with all our stakeholders including communities, governments, employees and investors we build relationships and turn opportunity into advantage, solving business and technical challenges, and contributing to society s transition to sustainable development. Rio Tinto s interests are diverse both in geography and product. Our businesses include open pit and underground mines, mills, refineries, smelters and power stations including a significant hydropower portfolio as well as a number of research and service facilities. Our major products are aluminium, copper, diamonds, thermal and metallurgical coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide and salt). We also own and operate infrastructure that takes our products to our customers, including railways, ports and ships. We work in some of the world s most difficult terrains and climates. Our activities span the world: we are strongly represented in Australia and North America and also have significant businesses in Asia, Europe, Africa and South America. 1

3 We act ethically and responsibly because it s good for business and it reflects the convictions of our employees. Our global presence, and our expertise in technology and marketing, enables us to bring our customers the right product, at the right quality, at the right time. We act ethically and responsibly because it s good for business and it reflects the convictions of our employees. Doing the right thing helps build a good reputation. Having a good name ensures better access to the mineral, financial and human resources we need to succeed. It also creates better returns for our shareholders and gives our employees more rewarding jobs. The way we work, our global code of business conduct, outlines our approach. It contains principles and standards of conduct that reaffirm our commitment to corporate responsibility and are inspired by our four core values: accountability, respect, teamwork and integrity. We work in some of the world s most difficult terrains and climates. We are strongly represented in Australia and North America and also have significant businesses in Asia, Europe, Africa and South America. 2

4 History and origins Rio Tinto s predecessor companies The Rio Tinto Company and The Consolidated Zinc Corporation were formed in 1873 and 1905 respectively. The Rio Tinto Company was formed in London to mine copper at Rio Tinto in southern Spain. This first mine was based on ancient workings that once supplied copper to the Roman Empire. The name Rio Tinto comes from the coloured river that flowed near this copper mine. The Consolidated Zinc Corporation was incorporated to treat zinc-bearing mine waste at Broken Hill, Australia. The two companies merged in 1962 to form The RTZ (Rio Tinto Zinc) Corporation. CRA (Conzinc Riotinto of Australia) Limited was formed at the same time by the merger of the companies Australian interests. RTZ and CRA were unified through a dual listed companies structure in In 1997, RTZ became Rio Tinto plc and CRA became Rio Tinto Limited, together known as the Rio Tinto Group. The Group has grown partly through the acquisition of other businesses and most notably through the acquisition of Alcan Inc. in Rio Tinto has developed a global approach to business that is drawn from the experience and commitment of our component companies and individuals. We share common values, policies, standards and principles, and have benefited increasingly from sharing best practice across the whole Group. We have been in this business for 140 years and we have a great heritage to be proud of. 3

5 Below Cape Lambert port, part of our world-class iron ore operations in the Pilbara, Western Australia. Our expansion plans will increase the port s annual capacity by more than 100 million tonnes by Strategy Rio Tinto s objective is to maximise total shareholder return by sustainably finding, developing, mining and processing natural resources. Our strategy is to invest in and operate large, long-term, expandable, low-cost mines and businesses, driven by the quality of each opportunity in the most attractive industry sectors. It is a strategy that has served us well over many years, and we have full confidence that it will continue to do so in the future. We will deliver value for shareholders by consistently executing our strategy in every market, in all of our businesses. We have a focus on reducing costs, delivering our approved growth projects, reshaping our portfolio and building a more accountable business. We will apply a disciplined and rigorous investment process to ensure that capital is invested only in assets that, after prudent assessment, offer attractive returns, well above our cost of capital. Our approach balances investment to grow the value of the business and returns to shareholders, while aiming to maintain a strong balance sheet and retain our single A credit rating. Structure and management The Rio Tinto Group combines Rio Tinto plc, which is listed on the London and New York Stock Exchange and headquartered in London, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. The Group consists of wholly and partly owned subsidiaries, jointly controlled assets, jointly controlled entities and associated companies. Rio Tinto comprises five principal product groups Aluminium, Copper, Diamonds & Minerals, Energy and Iron Ore supported by our Technology & Innovation and Exploration groups. 4

6 Our capabilities Al Cu C Fe TiO 2 5

7 Left and below From our diverse portfolio we supply the metals and minerals that help the world to grow. Aluminium Aluminium is a unique and versatile metal. Light, strong, flexible, non-corrosive and infinitely recyclable, aluminium is used in a broad range of applications for transportation, packaging, electrical materials, medicine, construction and other sectors. Rio Tinto s aluminium product group, Rio Tinto Alcan, is a global leader in the aluminium industry. Our fullyintegrated facilities include high-quality bauxite mines, large-scale alumina refineries, and some of the world s lowest-cost, most technologically-advanced primary aluminium smelters. Rio Tinto Alcan s AP TM smelting technology is the industry benchmark, and the group benefits from access to the largest and best-quality bauxite reserves in the industry. Building on more than a century of experience and expertise, the group is renowned for its leadership in research and technology as well as its unrivalled renewable energy assets through its hydropower portfolio. Rio Tinto Alcan owns 11 power stations and manages operations on five continents, primarily in Canada, Australia, France and the UK. The group s operations are divided into two operating units: Bauxite & Alumina and Primary Metal. Rio Tinto Alcan also provides technology sales and services, engineering services, smelting equipment sales and smelting consumables production for the global aluminium industry. Rio Tinto s aluminium product group, Rio Tinto Alcan, is a global leader in the aluminium industry. Our fully-integrated facilities include high-quality bauxite mines, large-scale alumina refineries, and some of the world s lowest-cost, most technologically-advanced primary aluminium smelters. 6

8 Titanium dioxide reflects and scatters light like thousands of tiny mirrors, and when used as a pigment in paint, gives brilliance and opacity. Copper Copper s malleability, strength and conductivity make it useful in a range of building and electrical applications, and it is an element found in nearly every home and vehicle. From the electricity that lights our homes, to the infrastructure that builds our cities, to the technology that connects our world, copper is essential to making modern life work. Rio Tinto s Copper group discovers, extracts and processes copper in ways that continually deliver superior long-term value to our stakeholders. Our key operating assets are world-class and our project pipeline includes a suite of longer-term opportunities that will help meet the world s increasing demand for copper. In addition to our core product, we generate additional revenue from valuable by-products: gold, silver and molybdenum. Our Copper group has always looked ahead to advance our industry. From our very beginnings to today, we invest extensively in leading-edge technologies and processes, to ensure our projects, both in operation and in development, deliver a sustainable and exciting future. Diamonds & Minerals Rio Tinto s Diamonds & Minerals portfolio consists of mines and development projects across four sectors and spanning five continents. These businesses serve a range of industries but have a shared track record of creating and defining new and profitable markets for their products. Rio Tinto is one of the world s largest diamond producers and the world s largest producer of natural coloured diamonds. Our diamond interests comprise the Diavik mine in Canada, the Argyle mine in Australia, the Murowa mine in Zimbabwe and an advanced diamond project in Madhya Pradesh, India. We have diamond sales and marketing headquarters in London and an office in the world s diamond centre of Antwerp, Belgium. A strict chain of custody process ensures that all products are segregated according to mine source. Our products go into the infrastructure of our towns and cities, into cars and mobile phones, into healthcare and renewable energy solutions and a myriad of other applications. Rio Tinto s industrial minerals businesses comprise Rio Tinto Minerals, a world leader in borates with operations in the US and Asia, and a development project in Europe; and Rio Tinto Iron & Titanium, an industry leader in high-grade titanium dioxide feedstocks which operates in Canada, South Africa and Madagascar. Dampier Salt is one of the world s largest producers of seaborne salt. Market differentiation in the industrial minerals sector depends on technical and marketing expertise and the group maintains research and development facilities in Europe and North America to develop new products and support customers. The Diamonds & Minerals group also includes the Simandou iron ore project in Guinea. Energy Rio Tinto s Energy group produces thermal coal, used to generate electricity, coking coal for making steel, and uranium, used exclusively for the generation of nuclear electricity. Rio Tinto is a leading seaborne supplier of thermal and coking coal to Asian customers. Its coal interests are located in Australia and Africa and supply the seaborne traded and Australian domestic markets. Rio Tinto Coal Australia manages the group s interests in seven coal mines in Queensland and New South Wales. Rio Tinto Coal Mozambique s first operation, the Benga Mine, began exports in Rio Tinto is also a major global uranium producer, and supplies uranium oxide from its majority owned mines in Australia and Namibia to electric power utilities globally. A number of opportunities for brownfield expansions exist at the Coal & Allied operations in the Hunter Valley and Hail Creek Mine in Queensland, and are under consideration at the Ranger and Rössing uranium mines. Energy is used to power appliances that are part of everyday life. 7

9 Below Iron ore is the key ingredient in the production of steel, one of the most fundamental and durable products for modern-day living. Iron Ore Iron is the most useful metal in the world, used in a variety of forms and a multitude of applications in everyday life. We find and extract iron ore, and ship it to our customers who extract iron metal from the ore. We are one of the world s largest iron ore producers and the only one with a truly global production and growth platform, spanning four continents. Our Iron Ore group comprises wholly-owned subsidiaries and joint venture initiatives. We own and manage mining and processing operations in Western Australia (Pilbara) and Canada (Quebec and Newfoundland and Labrador). Our integrated iron ore operations including mines, rail, ports and related infrastructure are designed to respond rapidly to changes in demand and are geographically well positioned to take advantage of demand for iron ore in both developed and developing regions. Our operations in the Pilbara region of Western Australia are expanding by 50 per cent in what is now Australia s largest mining project, and we are increasing capacity at our Iron Ore Company of Canada operations. Through global projects, expansions and innovations, we are further extending our leading role in the global iron ore sector. The Iron Ore group s development pipeline also includes the Odisha project in India. In addition, the group operates Rio Tinto Marine, the ocean freight business that services the entire Rio Tinto Group. 8

10 Technology & Innovation Technology is an increasingly important success factor in the metal and mineral industry. The Technology & Innovation (T&I) group provides world-class technology services to Rio Tinto s product groups and businesses. It also advises Rio Tinto s executive management. T&I is made up of a number of functions that identify, share and implement leading practice across Rio Tinto. The functions each have responsibility for different areas of mine technology, which include surface and underground mining, asset management, strategic production planning, processing, project development and implementation, and technical risk evaluation of investment opportunities. The various elements of T&I collaborate in capturing knowledge and spreading it across Rio Tinto. T&I identifies and promotes leading practice in operational technology. It also pursues step change innovations that will provide Rio Tinto with further competitive advantages as it develops the orebodies of the future. Right Our Mine of the Future TM programme is developing advanced ways of finding, extracting and processing minerals from deep within the Earth. This includes the development of autonomous haul trucks currently in operation at two autonomous pits, with 150 expected to be deployed by

11 Below The extensive drilling exploration platforms and road network which have been built on the slopes of Pic de Fon. Simandou, Guinea Exploration Exploration involves identifying, prioritising and testing geological targets. We are a product of our exploration expertise and see this activity as a core part of our business. The goal of our Exploration group is to create value for Rio Tinto through the discovery or acquisition of Tier 1 resources the largest, lowest-cost resources that are profitable at all parts of the commodity cycle. Rio Tinto Exploration is organised into four regional teams: Americas, Australasia, Africa-Europe and Eurasia. In addition, the Project Generation Group provides specialist commodity, data and information, technical and orebody knowledge assistance to the regional teams. 10

12 Sustainable development Our commitment to sustainable development is integrated into everything we do. Our operations give us the opportunity to bring enduring benefits to the communities, regions and countries where we work, and our metals and minerals are transformed into end products that contribute to higher living standards. Above Mafindou School, built by Rio Tinto as part of the community programme of the Simandou project Guinea, West Africa. Adopting a responsible approach to mineral development ensures we gain and maintain our licence to operate. It means we provide confidence to our stakeholders, and improve our access to the mineral resources, people and capital we need. Our approach to sustainable development therefore enables us to keep investing in line with our Group strategy as well as to plan, implement and deliver sustainable contributions to social wellbeing, environmental stewardship and economic prosperity, within our strong governance systems. Safety is fundamental to the way we do business. Our safety vision is that together we will create an injury and illness-free workplace where everyone goes home safe and healthy each day of their working life. We believe that strong safety leadership and a deep safety culture are critical if we are to achieve our goals. We are committed to working with others to explore how together we might help solve some of the global challenges we face including biodiversity loss; climate change and its impact on water and energy; poverty and corruption. By building relationships with our stakeholders, and by applying risk analysis and management effectively throughout our business, we can create opportunities out of external challenges and extend our licence to operate. 11

13 Below Employee checking foliage regeneration in Bengalla, Australia. The minerals and metals produced at our operations contribute to society s needs, creating wealth to support community infrastructure, healthcare and education programmes, and delivering financial returns for our shareholders. But we also recognise that, if not managed appropriately, some aspects of our activities have the ability to detract from sustainable development, such as options for the future use of water and land; amenity impacts on local communities; and greenhouse gas emissions from our operations and the use of our products. We have a structured framework that enables us to deliver industry-leading performance and effectively manage risks. This approach begins with The way we work our global code of business conduct supported by our corporate policies, strategies and standards that lay down the minimum acceptable requirements for behaviour or operating conditions. It is designed to ensure that we all reflect in our daily work the high standards we share. We are committed to working with others to explore how together we might help solve some of the global challenges we face including biodiversity loss; climate change and its impact on water and energy; poverty and corruption. 12

14 Operations map Our activities span the world. We are strongly represented in Australia and North America, regions which account for around 80 per cent of our assets. We also have significant businesses in Asia, Europe, Africa and South America. 13

15 Aluminium Bauxite, alumina and aluminium Mines and mining projects Smelters, refineries and processing plants remote from mine Pacific Aluminium Bauxite, alumina and aluminium Mines and mining projects Smelters, refineries and processing plants remote from mine Other Aluminium Bauxite, alumina and aluminium Mines and mining projects Smelters, refineries and processing plants remote from mine Copper Copper, gold, silver, molybdenum and nickel Mines and mining projects Smelters, refineries and processing plants remote from mine Diamonds & Minerals Diamonds, borates, salt, titanium dioxide feedstock, high-purity iron, metal powders, iron ore, zircon, rutile and lithium Mines and mining projects Smelters, refineries and processing plants remote from mine Iron Ore Iron ore Mines and mining projects Smelters, refineries and processing plants remote from mine Energy Thermal coal, coking coal and uranium Mines and mining projects Smelters, refineries and processing plants remote from mine Locations on the map are indicative. 14

16 Rio Tinto plc 2 Eastbourne Terrace London W2 6LG United Kingdom T +44 (0) Rio Tinto Limited 120 Collins Street Melbourne, Victoria 3000 Australia T +61 (0) riotinto.com Capability brochures Aluminium Copper Diamonds Energy Exploration Industrial minerals Iron Ore Technology & Innovation 0019 V1 ENG ABOUT RIO TINTO MAY 2013 PDF