Rio Tinto 2010 Annual report This report is available online Visit www.riotinto.com/annualreport2010 2010 Annual Report Basic Materials United Kingdom/Australia globalsector leadership Striving for Group strategy continued Overview Technology and innovation Innovative technologies will lead to dramatic improvements in our operating business and the way we develop new mines. These technologies can also put us ahead of the competition. An example of this is Rio Tinto’s Mine of the Future™ programme, which we believe will deliver heightened ef ciencies in terms of both production and costs, as well as a safer working environment with reduced impact on the environment. Mine of the Future™ involves collaborative partnerships with leading universities and equipment producers to expand the potential of automation and remote operations. Such advances have enabled the opening of the Perth Operations Centre from which Rio Tinto people can control iron ore mining and infrastructure at our Pilbara operations, more than 1,000km away. Another key focus of Group innovation is underground tunnelling and shaft sinking. At our Northparkes copper and gold mine in Australia we will test a system designed to allow us to excavate at more than double the rate of conventional methods. Success there will enable us to apply the technology for the next generation of block cave mines. This will increasingly be a strategic differentiator, as future ore deposits, especially copper, are often located at deeper depths. The Group takes the threat of climate change seriously. Technological advances are enabling us to improve the ef ciency of our aluminium smelting facilities while lowering their carbon output. We are also looking into the potential bene ts of widespread carbon capture and sequestration. In the long term our commitment to technology and innovation should have a positive impact in attracting new employees to the Group and should help us supply a wider range of customers and markets more sustainably than ever. These KPIs are a measure of how well we are achieving our strategy, and they link clearly to our strategic drivers. Our KPIs give senior management a means to evaluate the Group’s overall performance in operations, growth and sustainable development. They provide managers and their teams with clarity and focus on areas critical to our success. The KPIs also give guidance to the Remuneration committee in framing our remuneration policy. Some of the KPIs are directly linked to executive remuneration. See p.22 for more information on our KPIs. Performance Key performance indicators Rio Tinto uses a number of key performance indicators (KPIs) to monitor our nancial and non nancial performance. Delivering our strategy – adding value across the cycle We create and preserve value through investing in and operating large scale, long term, cost competitive mines and businesses. The nature of our business means that the lifecycle of an orebody may last for many decades. Throughout the life of a business, from initial exploration to nal closure and restoration, we commit to the highest standards of sustainable development. Investing Explore and evaluate Rio Tinto has an experienced in-house exploration team with a proven track record for the discovery of Tier 1 orebodies. In addition to exploration, we create value through expansions and extensions of existing assets. Rio Tinto’s orebody knowledge process allows us to evaluate value enhancing approaches to developing, operating and growing our resources. More information on page 62 Operating Operate Rio Tinto creates value through operating its large, long term, cost competitive assets safely and ef ciently. As a capable, global organisation, we employ standard operating and maintenance practices across the Group, and invest in our world class assets throughout their lifecycles. An ef cient process reduces the use of consumables, increases equipment operating time and optimises the extraction of ore – all of which results in higher production levels, reduced costs and optimisation of value. More information on page 42 Close down and restore Production, reserves and operations When a resource reaches the end of its life, we are committed to high standards of close down and restoration. Integrating closure planning in the early stages of project development and through an asset’s lifecycle helps us to leave a positive legacy of sustainable development, minimise nancial impacts and ensure stakeholder expectations are met. Our closure standard covers the design, development, operation and closure of all our operations. More information on page 40 Mine Rio Tinto moves millions of tonnes of material every day. We have world class technologies and processes to plan, operate and maintain our mining equipment and activities. Governance World class assets Iron ore loading facility, Western Australia. Process Bunder, India Analysing drill core samples at the diamond project in Madhya Pradesh. Develop Rio Tinto develops orebodies with long term value delivery in mind. Following the discovery of a resource, it must be thoroughly studied to identify the optimal con guration for development of the orebody and delivery of the product to the market. As studies are undertaken, economic modelling con rms value. Once we have obtained internal and external approvals, the project moves to implementation and construction. Leading technologies Operations centre in Perth, Western Australia. Our leading proprietary technologies, such as that for aluminium smelting, ensure that recoveries are maximised and our processes are as ef cient as possible. We produce material that is of the right quality for our customers. Barneys Canyon, US Rehabilitating waste rock dumps into a wildlife habitat. Financial statements Market We sell our products directly to our customers, the end users. We seek out long term partnerships to maximise product value and constantly create new products that add further value. Global presence Serving customers worldwide. Additional information Deliver In many cases, Rio Tinto is responsible for delivering nished product to our customers. We do this in a variety of ways, ef ciently, reliably and cost effectively. Oyu Tolgoi, Mongolia Mine shaft construction at the copper-gold mine. Infrastructure network Transporting products from mine to market. 20 Rio Tinto 2010 Annual report www.riotinto.com 21 pp 20-21 Rio Tinto present their strategy and strategic objectives before this spread which discusses in detail how they deliver their strategy. The Company’s responsible attitude towards sustainable development comes across throughout the overview of the investing and operating areas of the business. www.blacksunplc.com © Black Sun Plc 2011 33
