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| − | '''Rio Tinto Group''' is a British-Australian multinational metals and mining corporation with headquarters in London, in the United Kingdom, and a management office in Melbourne, Australia. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain, from the Spanish government. Since then, the company has grown through a long series of mergers and acquisitions to place itself among the world leaders in the production of many commodities, including aluminium, iron ore, copper, uranium, coal, and diamonds.<ref name="PR-2008">{{cite web|url=http://www.riotinto.com/documents/Media/PR712g_Rio_Tinto_announces_underlying_earnings_of__10.3_billion.pdf | + | {{group |
| − | |title=Rio Tinto Preliminary Results 2008}}</ref> Although primarily focused on extraction of minerals, Rio Tinto also has significant operations in refining, particularly for refining bauxite and iron ore.<ref name="RT-Prod"/> The company has operations on six continents but is mainly concentrated in Australia and Canada, and owns gross assets valued at $81 billion through a complex web of wholly and partly owned subsidiaries.<ref name="Chartbook"/> Its head office in the United Kingdom is in the City of Westminster, London, while its Australian head office is in the city of Melbourne.<ref>"[http://www.riotinto.com/contactus.asp Contact Us]." Rio Tinto Group. Retrieved 9 April 2010.</ref><ref name="MelbourneCityMAP">"[http://www.melbourne.vic.gov.au/AboutMelbourne/CityMaps/Documents/City_of_Melbourne_suburb_and_postcode_boundary_map.pdf Suburbs & Postcodes]." City of Melbourne. Retrieved 5 April 2010.</ref>
| + | |image=Rio_Tinto.jpg |
| | + | |image_width=240px |
| | + | |type=commercial |
| | + | |start=1873 |
| | + | |wikipedia=https://en.wikipedia.org/wiki/Rio_Tinto_Group |
| | + | |twitter=https://twitter.com/RioTinto |
| | + | |headquarters=London, Melbourne |
| | + | |website=http://www.riotinto.com/ |
| | + | |interests=Rothschild family |
| | + | |subgroups=Rio Tinto Alcan |
| | + | |description= British-Australian multinational metals and mining corporation with headquarters in London |
| | + | |slogan= |
| | + | |num_staff=66331 |
| | + | |powerbase=http://www.powerbase.info/index.php/Rio_Tinto_Group |
| | + | |sourcewatch=http://www.sourcewatch.org/index.php/Rio_Tinto_Group |
| | + | }} |
| | + | {{Very long|date=December 2014}} |
| | + | '''Rio Tinto Group''' is a British-Australian multinational metals and mining corporation with headquarters in London, in the United Kingdom, and a management office in Melbourne, Australia. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain, from the Spanish government. Since then, the company has grown through a long series of mergers and acquisitions to place itself among the world leaders in the production of many commodities, including aluminium, iron ore, copper, uranium, coal, and diamonds.<ref name="PR-2008">http://www.riotinto.com/documents/Media/PR712g_Rio_Tinto_announces_underlying_earnings_of__10.3_billion.pdf</ref> |
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| − | Rio Tinto Group is a dual-listed company traded on both the London Stock Exchange where it is a component of the FTSE 100 Index<ref name="LSE"/> and the Australian Securities Exchange where it is a component of the S&P/ASX 200 index.<ref name="ASX200"/> As of March 2009, Rio Tinto is the fourth-largest publicly listed mining company in the world with a market capitalisation of approximately $134 billion,<ref name="Chartbook"/> and was listed in Fortune magazine's 2012 Global 500 ranking of largest worldwide companies by revenue at number 153.<ref name="Glob500">{{Cite news|url=http://money.cnn.com/magazines/fortune/global500/2012/full_list/101_200.html|title=Global 500: 153. Rio Tinto Group|date=23 July 2012|work=Fortune|accessdate=19 June 2013}}</ref> In 2007, the company was valued at $147 billion.<ref name="Freed-Chalco">{{Cite news|url=http://business.smh.com.au/chinese-raid-on-rio-could-thwart-bhp/20080201-1pkr.html|title=Chinese raid on Rio Tinto could thwart BHP|last=Freed|first=Jamie|date=1 February 2008|work=Sydney Morning Herald|publisher=Fairfax Digital|accessdate=10 April 2009}}</ref><ref name='bbctakeover'>{{Cite news | title=BHP makes £120bn Rio bid approach | date=8 November 2007 | url =http://news.bbc.co.uk/1/hi/business/7084946.stm |publisher=BBC News | accessdate =8 November 2007 }}</ref>
| + | The company has operations on six continents but is mainly concentrated in Australia and Canada, and owns gross assets valued at $81 billion through a complex web of wholly and partly owned subsidiaries.<ref name="Chartbook">http://www.riotinto.com/documents/investors_databook/March_09_Chartbook.pdf</ref> Its head office in the United Kingdom is in the City of Westminster, London, while its Australian head office is in the city of Melbourne.<ref>"[http://www.riotinto.com/contactus.asp Contact Us]." Rio Tinto Group. Retrieved 9 April 2010.</ref><ref name="MelbourneCityMAP">"[http://www.melbourne.vic.gov.au/AboutMelbourne/CityMaps/Documents/City_of_Melbourne_suburb_and_postcode_boundary_map.pdf Suburbs & Postcodes]." City of Melbourne. Retrieved 5 April 2010.</ref> |
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| − | ==Formation==
| + | Deep politician [[Lord Alfred Milner]] was an early chairman of Rio Tinto.<ref>https://www.cascade.app/studies/riotinto-strategy-study</ref> |
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| − | [[Image:Rio tinto river CarolStoker NASA Ames Research Center.jpg|thumb|left|The company's name comes from the [[Rio Tinto (river)|Rio Tinto]] river in southwestern Spain, which has flowed red since mining began there about 5000 years ago, due to [[acid mine drainage]]]]
| + | The halting of a company plan to mine [[lithium]] in [[Serbia]] gave the Australian government a pretext to be uncooperative with [[Novak Djokovic]]. |
| − | [[Image:RTCL 026.jpg|thumb|right|upright|Hugh Matheson led the purchase of the Rio Tinto mines from Spain, and was the company's first president.]] | |
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| − | Since antiquity, a site along the Rio Tinto, in the [[Andalusia]]n [[Huelva (province)|Province of Huelva]] in Spain has been mined for copper, silver, gold, and other minerals.<ref name="Carleton">
| + | ==Formation== |
| − | {{cite web
| + | The company was founded with the purchase of a mine run by the Spanish government in 1873, at a price later determined to be well below actual value.<ref name="Huelva">http://www.andalucia.com/province/huelva/riotinto/home.htm</ref> |
| − | | last = Bordenstein
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| − | | first = Sarah
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| − | | title = Rio Tinto, Spain
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| − | | work=Science Education Resource Center
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| − | | publisher=Carleton College
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| − | | url = http://serc.carleton.edu/microbelife/topics/riotinto/
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| − | | accessdate =3 March 2009}}
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| − | </ref> Approximately 3000 BC, [[Iberians]] and [[Tartessos|Tartessians]] began mining the site, followed by the [[Phoenicia]]ns, [[Ancient Greece|Greeks]], [[Roman Empire|Romans]], [[Visigoths]], and [[Moors]]. After a period of abandonment, the mines were rediscovered in 1556 and the Spanish government began operating them once again in 1724.<ref name="Carleton"/> | |
| | | | |
| − | However, Spain's mining operations there were inefficient, and the government itself was otherwise distracted by political and financial crises,<ref name="Harvey">{{Cite book
| + | The purchasers of the mine were led by [[Hugh Matheson (industrialist)|Hugh Matheson]]'s Matheson and Company, which ultimately formed a syndicate consisting of [[Deutsche Bank]] (56% ownership), Matheson (24%), and railway firm Clark, Punchard and Company (20%). At an auction held by the Spanish government for sale of the mine on 14 February 1873, the group won with a bid [[Pound sterling|GB£]]3,680,000 ([[Spanish peseta|ESP]] 92,800,000). The bid also specified that Spain permanently relinquish any right to claim [[royalties]] on the mine's production. Following purchase of the mine, the syndicate launched the Rio Tinto Company, registering it on 29 March 1873.<ref name="Harvey"/> At the end of the 1880s, control of the firm was passed to the [[Rothschild family]], who greatly increased the scale of its mining operations.<ref>''The Rio Tinto Company: an economic history of a leading international mining concern'', Charles E. Harvey (1981), page 188</ref> |
| − | | last = Harvey
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| − | | first = Charles E.
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| − | | title = The Rio Tinto Company: An Economic History of a leading international mining concern, 1873–1954
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| − | | publisher=Alison Hodge Publishers
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| − | | year = 1981
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| − | | pages = 10–11, 23, 52, 89, 202, 207–215, 314–324
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| − | | url = http://books.google.com/?id=FgW09Y59CrkC
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| − | | isbn = 0-906720-03-6, 9780906720035}}</ref> leading the government to sell the mines in 1873 at a price later determined to be well below actual value.<ref name="Huelva">{{cite web
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| − | | title = Huelva Province – Rio Tinto
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| − | | work=Andalucia.com
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| − | | publisher=Andalucia.com
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| − | | url = http://www.andalucia.com/province/huelva/riotinto/home.htm
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| − | | accessdate =3 March 2009}}
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| − | </ref> The purchasers of the mine were led by [[Hugh Matheson (industrialist)|Hugh Matheson]]'s Matheson and Company, which ultimately formed a syndicate consisting of [[Deutsche Bank]] (56% ownership), Matheson (24%), and railway firm Clark, Punchard and Company (20%). At an auction held by the Spanish government for sale of the mine on 14 February 1873, the group won with a bid [[Pound sterling|GB£]]3,680,000 ([[Spanish peseta|ESP]] 92,800,000). The bid also specified that Spain permanently relinquish any right to claim [[royalties]] on the mine's production. Following purchase of the mine, the syndicate launched the Rio Tinto Company, registering it on 29 March 1873.<ref name="Harvey"/> At the end of the 1880s, control of the firm was passed to the [[Rothschild family]], who greatly increased the scale of its mining operations.<ref>''The Rio Tinto Company: an economic history of a leading international mining concern'', Charles E. Harvey (1981), page 188</ref>
| |
| | | | |
| − | ==Operating history==
| + | From 1877 to 1891, the Rio Tinto Mine was the world's leading producer of copper.<ref name="HJStevens">Stevens, Horace Jared (1908). The Copper Handbook. 8. Horace J. Stevens. p. 1547</ref> |
| − | | |
| − | Following their purchase of the Rio Tinto Mine, the new ownership constructed a number of new processing facilities, innovated new mining techniques, and expanded mining activities.<ref name="Harvey"/>
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| − | | |
| − | From 1877 to 1891, the Rio Tinto Mine was the world's leading producer of copper.<ref name="HJStevens">{{Cite book|last=Stevens|first=Horace Jared|title=The Copper Handbook|publisher=Horace J. Stevens|year=1908|volume=8|page=1547}}</ref> | |
| − | | |
| − | [[Image:Panoramica Corta Atalaya2.jpg|thumb|The open-pit [[Corta Atalaya]] mine was part of Rio Tinto's original operations in Spain.]]
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| | | | |
| | From 1870 through 1925, the company was inwardly focused on fully exploiting the Rio Tinto Mine, with little attention paid to expansion or exploration activities outside of Spain. The company enjoyed strong financial success until 1914, [[cartel|cooperating with other pyrite producers]] to control market prices. However, World War I and its aftermath effectively eliminated the United States as a viable market for European pyrites, leading to a decline in the firm's prominence.<ref name="Harvey"/> | | From 1870 through 1925, the company was inwardly focused on fully exploiting the Rio Tinto Mine, with little attention paid to expansion or exploration activities outside of Spain. The company enjoyed strong financial success until 1914, [[cartel|cooperating with other pyrite producers]] to control market prices. However, World War I and its aftermath effectively eliminated the United States as a viable market for European pyrites, leading to a decline in the firm's prominence.<ref name="Harvey"/> |
| − |
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| − | [[Image:Pyrite foolsgold.jpg|thumb|right|[[Pyrite]] was a major product of Rio Tinto's first mines.]]
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| | | | |
| | The company's failure to diversify during this period led to the slow decline of the company among the ranks of international mining firms. However, this changed in 1925, when Sir [[Auckland Geddes, 1st Baron Geddes|Auckland Geddes]] succeeded Lord [[Alfred Milner, 1st Viscount Milner|Alfred Milner]] as chairman. Geddes and the new management team he installed focused on [[diversification (marketing strategy)|diversification]] of the company's investments and operations and reformation of marketing strategy. Geddes led the company into a series of joint ventures with customers in the development of new technologies, as well as exploration and development of new mines outside of Spain.<ref name="Harvey"/> | | The company's failure to diversify during this period led to the slow decline of the company among the ranks of international mining firms. However, this changed in 1925, when Sir [[Auckland Geddes, 1st Baron Geddes|Auckland Geddes]] succeeded Lord [[Alfred Milner, 1st Viscount Milner|Alfred Milner]] as chairman. Geddes and the new management team he installed focused on [[diversification (marketing strategy)|diversification]] of the company's investments and operations and reformation of marketing strategy. Geddes led the company into a series of joint ventures with customers in the development of new technologies, as well as exploration and development of new mines outside of Spain.<ref name="Harvey"/> |
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| − | Perhaps most significant was the company's investment in copper mines in [[Rhodesia]], which it eventually consolidated into the [[Rhokana Corporation]].<ref name="Harvey"/> These and later efforts at diversification eventually allowed the company to divest from the Rio Tinto mine in Spain. By the 1950s, [[Francisco Franco|Franco]]'s nationalistic government had made it increasingly difficult to exploit Spanish resources for the profit of foreigners.<ref name="Harvey"/> Rio Tinto Company, supported by its international investments, was able to divest two-thirds of its Spanish operations in 1954 and the remainder over the following years.<ref name="RTWeb">{{cite web | + | Perhaps most significant was the company's investment in copper mines in [[Rhodesia]], which it eventually consolidated into the [[Rhokana Corporation]].<ref name="Harvey"/> These and later efforts at diversification eventually allowed the company to divest from the Rio Tinto mine in Spain. By the 1950s, [[Francisco Franco|Franco]]'s nationalistic government had made it increasingly difficult to exploit Spanish resources for the profit of foreigners.<ref name="Harvey"/> Rio Tinto Company, supported by its international investments, was able to divest two-thirds of its Spanish operations in 1954 and the remainder over the following years.<ref name="RTWeb">http://www.riotinto.com/whoweare/timeline.asp</ref> |
| − | | title = Who We Are: Timeline
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| − | | work=Rio Tinto web site
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| − | | publisher=Rio Tinto Group
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| − | | year = 2009
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| − | | url = http://www.riotinto.com/whoweare/timeline.asp
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| − | | accessdate =4 March 2009}}</ref>
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| | | | |
| | ==Major mergers and acquisitions== | | ==Major mergers and acquisitions== |
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| − | Like many major mining companies, the Rio Tinto Group has historically grown through a series of mergers and acquisitions.
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| − |
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| | ===Early acquisitions=== | | ===Early acquisitions=== |
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| − | [[Image:LocationRhodesia.png|thumb|right|[[Rhodesia]] was the location of Rio Tinto's first major international expansion of mining activities.]]
| + | The company's first major acquisition occurred in 1929, when the company issued stock for the purpose of raising 2.5 million pounds to invest in Rhodesian copper mining companies, which was fully invested by the end of 1930. The Rio Tinto company consolidated its holdings of these various firms under the Rhokana Corporation by forcing the various companies to merge.<ref name="Harvey">https://archive.org/details/riotintocompanye0000harv</ref> |
| − | | |
| − | The company's first major acquisition occurred in 1929, when the company issued stock for the purpose of raising 2.5 million pounds to invest in Rhodesian copper mining companies, which was fully invested by the end of 1930. The Rio Tinto company consolidated its holdings of these various firms under the Rhokana Corporation by forcing the various companies to merge.<ref name="Harvey"/> | |
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| − | Rio Tinto's investment in Rhodesian copper mines did much to support the company through troubled times at its Spanish Rio Tinto operations spanning the [[Spanish Civil War]], World War II, and Franco's nationalistic policies. In 1950s the political situation made it increasingly difficult for mostly British and French owners to extract profits from Spanish operations, and the company decided to dispose of the mines from which it took its name.<ref name="Harvey"/> Thus, in 1954 Rio Tinto Company sold two thirds of its stake in the Rio Tinto mines, disposing of the rest over the following years.<ref name="RTWeb"/> The sale of the mines financed extensive exploration activities over the following decade.<ref name="RT-DLC">
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| − | {{cite web
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| − | | title = RTZ CRA United for Growth
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| − | | work=Rio Tinto Review
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| − | | publisher=Rio Tinto Group
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| − | | year = 2006
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| − | | url = http://www.riotinto.com/documents/Investors/dlcsep06.pdf
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| − | | format = PDF
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| − | | accessdate =4 March 2009}}</ref>
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| − | | |
| − | ===Merger with Consolidated Zinc===
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| − | The company's exploration activities presented the company with an abundance of opportunities; however it lacked sufficient capital and operating revenue to exploit those opportunities. This situation precipitated the next, and perhaps most significant, merger in the company's history. In 1962 Rio Tinto Company merged with the Australian firm [[Consolidated Zinc]] to form the Rio Tinto – Zinc Corporation (RTZ) and its main subsidiary, Conzinc Riotinto of Australia (CRA). The merger provided Rio Tinto the ability to exploit its new-found opportunities, and gave Consolidated Zinc a much larger asset base.<ref name="RT-DLC"/>
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| − | | |
| − | RTZ and CRA were separately managed and operated, with CRA focusing on opportunities within [[Australasia]] and RTZ taking the rest of the world. However, the companies continued to trade separately, and RTZ's ownership of CRA dipped below 50% by 1986.<ref name="RT-DLC"/> Strategic needs of the two companies eventually led to conflicts of interest regarding new mining opportunities, and shareholders of both companies determined a merger was in their mutual best interest. In 1995, the companies merged into a [[dual listed company]], in which management was consolidated into a single entity and share holder interests were aligned and equivalent, although maintained as shares in separately named entities. The merger also precipitated a name change; after two years as '''RTZ-CRA''', RTZ became '''Rio Tinto plc''' and CRA became '''Rio Tinto Limited''', referred to collectively as '''Rio Tinto Group''' or simply '''Rio Tinto'''.<ref name="RT-DLC"/>
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| − | | |
| − | ===Recent Mergers, acquisitions and events===
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| − | Major acquisitions following the Consolidated Zinc merger included [[U.S. Borax]], a major producer of [[borax]], bought in 1968,<ref name="RTWeb"/> [[Kennecott Utah Copper]] and BP Australia's coal assets which were bought from [[British Petroleum]] in 1989 and a 70.7% interest in the [[New South Wales]] operations of [[Coal & Allied Industries]] also in 1989.<ref name="RTWeb"/> In 1993, the Company acquired [[Nerco]] and also the United States coal mining businesses of [[Cordero Mining Company]].<ref name="RTWeb"/>
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| − | [[Image:Rio Tinto Alcan.svg|right|thumb|The wordmark of Alcan after its purchase by Rio Tinto in 2007. The acquisition made Rio Tinto the largest aluminium producer in the world.]]
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| − | In 2000, Rio Tinto acquired [[North Limited]], an Australian company with iron ore and [[uranium]] mines, for $2.8 billion.<ref>
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| − | {{cite web
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| − | |url=http://www.abc.net.au/pm/stories/s143218.htm
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| − | |title=Rio Tinto sets its sights on North Ltd
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| − | |work=Radio National
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| − | |date=23 June 2000
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| − | |author=Narelle Hooper
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| − | |publisher=Australian Broadcasting Corporation
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| − | |accessdate=10 November 2008}}
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| − | </ref> The takeover was partially motivated as a response to North Limited's 1999 bid to have Rio Tinto's Pilbara railway network declared [[open access (infrastructure)|open access]].<ref name=smh2004>{{Cite news
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| − | |url=http://www.smh.com.au/articles/2004/06/15/1087244921972.html?from=moreStories
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| − | |title=Fortescue tries to prise open access to Pilbara railway line
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| − | |work=The Sydney Morning Herald
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| − | |author=Mark Drummond
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| − | |date=16 June 2004
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| − | |accessdate=10 November 2008
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| − | }}</ref> The [[Australian Competition and Consumer Commission]] regulatory body approved the acquisition in August 2000,<ref>{{cite web
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| − | |url=http://www.abc.net.au/pm/stories/s159664.htm
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| − | |title=Rio Tinto's bid given the nod by ACCC
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| − | |work=Radio National
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| − | |date=4 August 2000
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| − | |author=Tanya Nolan
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| − | |publisher=Australian Broadcasting Corporation
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| − | |accessdate=10 November 2008
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| − | }}</ref> and the purchase was completed in October of the same year.<ref>{{Cite news
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| − | |url=http://findarticles.com/p/articles/mi_m0EIN/is_2000_Oct_10/ai_65901698
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| − | |title=Rio Tinto Completes Acquisition of North Limited
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| − | |work=Business Wire
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| − | |date=10 October 2000
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| − | |publisher=findarticles.com
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| − | |accessdate=10 November 2008
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| − | }}</ref> That year Rio Tinto also bought ''North Ltd'' and ''Ashton Mining'' for 4 billion USD, adding additional resources in aluminium, iron ore, diamonds, and coal.<ref name="RTWeb"/> In 2001 it bought (under Coal and Allied Industries) the Australian coal businesses of the [[Peabody Energy Corporation]].<ref name="RTWeb"/>
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| − | On 14 November 2007, Rio Tinto completed its largest acquisition to date,<ref name="Chartbook"/> purchasing Canadian aluminium company [[Alcan Inc.|Alcan]] for $38.1 billion.<ref name="Alcan-Aq">{{cite web | url=http://www.riotinto.com/media/5157_6881.asp | title= Rio Tinto Completes Acquisition of 100% of Alcan | publisher=Rio Tinto|year=2007| accessdate=30 January 2008}}</ref> Alcan's chief executive, Jacynthe Cote, leads the new division, which has been renamed [[Rio Tinto Alcan]] and its headquarters situated in [[Montreal]].<ref name="CTV-Alcan-Aq">{{cite web | url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070712/alcan_deal_070712/20070712?hub=TopStories | title= Rio Tinto, Alcan reach US$38.1-billion merger deal | publisher=CTV.ca|year=2007| accessdate=8 August 2007 }}</ref>
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| − | | |
| − | M&A activity in 2008 and 2009 has been focused on divestments of assets to raise cash and refocus on core business opportunities. The company sold three major assets in 2008, raising approximately $3 billion in cash. In the first quarter of 2009 Rio Tinto has reached agreements to sell its interests in the [[Corumba mine|Corumba]] iron ore mine and the [[Jacobs Ranch mine|Jacobs Ranch]] coal mine, and completed sales of an aluminium smelter in China and the company's [[potash]] operations, for an additional estimated $2.5 billion.<ref name="Chartbook"/>
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| − | {{main|Rio Tinto espionage case}}
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| − | On 5 July 2009, four Rio Tinto employees were arrested in Shanghai for corruption and espionage.<ref>[http://business.smh.com.au/business/rio-tinto-iron-ore-sales-team-arrested-in-china-20090708-dbyi.html Rio Tinto iron ore sales team arrested in China] Sydney Morning Herald – Business Day</ref><ref>[http://www.agi.it/business/news/200907100920-eco-ren0007-rio_tinto_4_arrested_in_china_on_corruption_charges Rio Tinto: 4 arrested in China on corruption charges – AGI]{{dead link|date=April 2012}}</ref> One of the arrested, Australian citizen [[Stern Hu]], was "...suspected of stealing Chinese state secrets for foreign countries and was detained on criminal charges," according to a spokesman for the Chinese foreign ministry.<ref>[http://www.telegraph.co.uk/finance/newsbysector/industry/mining/5793537/Australia-tries-to-limit-damage-over-detention-of-Rio-Tinto-staff-in-China.html Australia tries to limit damage over detention of Rio Tinto staff in China] – Telegraph UK</ref> Stern Hu has also been accused of bribery by Chinese steel mill executives for sensitive information during the iron ore contract negotiations.<ref>[http://au.news.yahoo.com/a/-/latest/5715439/hu-accused-of-bribery-during-negotiation/ Hu accused of bribery during negotiation – Yahoo!7 News]{{dead link|date=April 2012}}</ref><ref>{{Cite news
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| − | | last = Kwok
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| − | | first = Vivian Wai-yin
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| − | | title = The Iron Ore War:China claims Rio Tinto espionage cost it $100 billion
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| − | | url= http://www.forbes.com/2009/08/10/china-rio-tinto-markets-equity-trade-battle.html
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| − | | accessdate =12 September 2009
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| − | | work=Forbes
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| − | | date=10 August 2009}}
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| − | </ref>
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| − | In April 2011, Rio Tinto gained a majority stake in [[Riversdale Mining]].<ref>{{cite web|url=http://www.mining-journal.com/finance/rio-tinto-claims-control-of-riversdale|accessdate=11 April 2011|title=Rio Tinto claims control of Riversdale|date=11 April 2011}}</ref>
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| − | On 13 December 2011 an independent arbitrator cleared the way for Rio Tinto, which had owned 49 per cent of [[Ivanhoe Mines]] Ltd, to take it over: he said the $16-billion Canadian group's "[[poison pill]]" defence was not valid. Ivanhoe had developed [[Oyu Tolgoi]] in Mongolia, one of the world's largest-known copper deposits.<ref>{{cite web |url=http://www.miningweekly.com/article/rio-tinto-wins-fight-against-ivanhoe-poison-pill-2011-12-13 |title=Rio Tinto wins fight against Ivanhoe poison pill |date=13 December 2011}}</ref> On 28 January 2012 Rio Tinto gained control of Ivanhoe Mines and removed the management.<ref>{{cite web|url=http://www.smh.com.au/business/rio-tinto-to-purge-ivanhoe-mines-top-tier-20120127-1qloo.html|title=Rio Tinto to purge Ivanhoe Mines top tier|work=Sydney Morning Herald|date=28 January 2012|accessdate=25 March 2012}}</ref>
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| − | In October 2013, Rio Tinto agreed to sell its majority stake in [[Australia]]’s third-largest coal mine to [[Glencore Xstrata]] and [[Sumitomo]] for a little over $1 billion, as part of the firm’s plans to focus on larger operations.<ref>{{Citation
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| − | | url = http://www.reuters.com/article/2013/10/25/us-riotinto-glencore-clermont-idUSBRE99O0DQ20131025
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| − | | title= Glencore, Sumitomo buy Rio coal mine stake for $1 billion
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| − | | year = 2013
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| − | | publisher = Reuters
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| − | | publication-place = International
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| − | }}</ref>
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| − | | |
| − | ==Corporate Status==
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| − | | |
| − | ===Organisation===
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| − | Rio Tinto is primarily organised into five operational businesses, divided by product type:<ref name="RTMgmt">{{cite web
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| − | | title = Management Overview
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| − | | work=Rio Tinto web site
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| − | | publisher=Rio Tinto
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| − | | url = http://www.riotinto.com/whoweare/management_overview.asp
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| − | | accessdate =5 March 2009}}</ref>
| |
| − | | |
| − | *Rio Tinto Copper – copper and byproducts such as gold, silver, [[molybdenum]], and [[sulphuric acid]]; future home of nickel operations if developed
| |
| − | *[[Rio Tinto Alcan]] – aluminium, bauxite and alumina
| |
| − | *Rio Tinto Energy – coal and uranium
| |
| − | *Rio Tinto Diamonds & Minerals – diamonds, industrial minerals such as [[borax]], [[talc]], salt and [[gypsum]] and [[titanium dioxide]]
| |
| − | *Rio Tinto Iron Ore – iron ore and iron
| |
| − | | |
| − | These operating groups are supported by separate divisions providing exploration and function support.<ref name="RTMgmt"/>
| |
| − | | |
| − | ====Subsidiaries====
| |
| − | Rio Tinto Group has a complex structure of partly and wholly owned subsidiaries, each held within one of the five operational groups described above. Major subsidiaries include:<ref name="RTCompanies">{{cite web
| |
| − | | title = Our Companies
| |
| − | | work=Rio Tinto web site
| |
| − | | publisher=Rio Tinto
| |
| − | | url = http://www.riotinto.com/whatweproduce/218_our_companies.asp
| |
| − | | accessdate =5 March 2009}}</ref>
| |
| | | | |
| − | {| class="wikitable sortable"
| + | Rio Tinto's investment in Rhodesian copper mines did much to support the company through troubled times at its Spanish Rio Tinto operations spanning the [[Spanish Civil War]], World War II, and Franco's nationalistic policies. In [[1950s]] the political situation made it increasingly difficult for mostly British and French owners to extract profits from Spanish operations, and the company decided to dispose of the mines from which it took its name.<ref name="Harvey"/> Thus, in 1954 Rio Tinto Company sold two thirds of its stake in the Rio Tinto mines, disposing of the rest over the following years.<ref name="RTWeb"/> The sale of the mines financed extensive exploration activities over the following decade.<ref name="RT-DLC">http://www.riotinto.com/documents/Investors/dlcsep06.pdf</ref> |
| − | |+Major Rio Tinto Subsidiaries<ref name="RTCompanies"/>
| |
| − | |-
| |
| − | ! Subsidiary !! Ownership Stake !! Main Product !! Location
| |
| − | |-
| |
| − | |[[Anglesey Aluminium]] || 51% || Aluminium [[smelting]] || United Kingdom (Wales)
| |
| − | |-
| |
| − | |[[Argyle diamond mine|Argyle Diamonds]] || 100% || Diamonds || Australia (Western Australia)
| |
| − | |-
| |
| − | |[[Bell Bay Smelter]] || 100% || Aluminium smelting || Australia (Tasmania)
| |
| − | |-
| |
| − | |[[Bougainville Copper]]<ref name="BCAR">{{cite web
| |
| − | | title = Bougainville Copper Limited Annual Report 2007
| |
| − | | publisher=Bougainville Copper Limited
| |
| − | | year = 2008
| |
| − | | url = http://www.bcl.com.pg/annual2007.pdf
| |
| − | | format = PDF
| |
| − | | accessdate =5 March 2009}}</ref> || 53.6% || Copper || Papua New Guinea
| |
| − | |-
| |
| − | |[[U.S. Borax|Rio Tinto Borax]] || 100% || [[Borates]] || United States (California; Colorado)
| |
| − | |-
| |
| − | |[[Coal and Allied Industries]] || 75% || Coal || Australia (New South Wales)
| |
| − | |-
| |
| − | |[[Corumbá (mine)]] || 100% || Iron ore || Brazil
| |
| − | |-
| |
| − | |[[Dampier Salt]] || 65% || Salt || Australia (Western Australia)
| |
| − | |-
| |
| − | |[[Diavik Diamond Mine]]s || 60% || Diamonds || Canada
| |
| − | |-
| |
| − | |[[Energy Resources of Australia]] || 68% || Uranium || Australia (Northern Territory)
| |
| − | |-
| |
| − | |[[Escondida|Minera Escondida]] || 30% || Copper || Chile
| |
| − | |-
| |
| − | |[[Grasberg mine|Grasberg]] Joint Venture || 40% || Copper || Indonesia (Papua)
| |
| − | |-
| |
| − | |[[Hamersley Iron]] ([[Pilbara Iron]]) || 100% || Iron ore || Australia (Western Australia)
| |
| − | |-
| |
| − | |[[HISmelt]] || 60% || Iron smelting || Australia (Western Australia)
| |
| − | |-
| |
| − | |[[Iron Ore Company of Canada]] || 59% || Iron ore || Canada
| |
| − | |-
| |
| − | |[[Kennecott Land]] || 100% || Land and water rights || United States (Utah)
| |
| − | |-
| |
| − | |[[Kennecott Utah Copper]] || 100% || Copper || United States (Utah)
| |
| − | |-
| |
| − | |[[Luzenac Group]] || 100% || Talc || France (Toulouse)
| |
| − | |-
| |
| − | |[[Murowa diamond mine|Murowa]] || 78% || Diamonds || Zimbabwe
| |
| − | |-
| |
| − | |[[Northparkes]] || 80% || Copper || Australia (New South Wales)
| |
| − | |-
| |
| − | |[[Palabora]] || 58% || Copper || South Africa
| |
| − | |-
| |
| − | |[[QIT-Fer et Titane]] Sorel || 100% || Titanium Dioxide || Canada (Quebec)
| |
| − | |-
| |
| − | |[[QIT Madagascar Minerals]] || 80% || Titanium Dioxide || Madagascar
| |
| − | |-
| |
| − | |[[Resolution Copper]]<ref name="RCMedia">{{cite web
| |
| − | | title = Media Kit
| |
| − | | work=Resolution Copper web site
| |
| − | | publisher=Resolution Copper
| |
| − | | url = http://www.resolutioncopper.com/res/mediacenter/21.html
| |
| − | | format = PDF
| |
| − | | accessdate =5 March 2009}}{{dead link|date=July 2012}}</ref> || 55% || Copper || United States (Arizona)
| |
| − | |-
| |
| − | |[[Richards Bay Minerals]] || 50% || Titanium Dioxide || South Africa
| |
| − | |-
| |
| − | |[[Rio Tinto Alcan]] || 100% || Aluminium || Canada
| |
| − | |-
| |
| − | |[[Rio Tinto Coal Australia]] || 100% || Coal || Australia
| |
| − | |-
| |
| − | |[[Rio Tinto Energy America]] || 100% || Coal || United States (Wyoming)
| |
| − | |-
| |
| − | |Robe River ([[Pilbara Iron]]) || 53% || Iron Ore || Australia (Western Australia)
| |
| − | |-
| |
| − | |[[Rössing Uranium Mine]] || 69% || Uranium || Namibia
| |
| − | |-
| |
| − | |[[Simandou]] || 50.35% || Iron Ore || Guinea (West Africa)
| |
| − | |-
| |
| − | |[[Three Springs Mine]] || 100% || Talc || Australia (Western Australia)
| |
| − | |-
| |
| − | |[[Hathor Exploration Ltd.]] || 100% || Uranium || Canada (Athabasca Basin, Saskatchewan)
| |
| − | |}
| |
| | | | |
| | ===Stock structure and ownership=== | | ===Stock structure and ownership=== |
| − | Rio Tinto Group is structured as a [[dual-listed company]], with listings on both the [[London Stock Exchange]] (symbol: RIO) in London under the name '''Rio Tinto Plc'''.<ref name="LSE">{{cite web | + | Rio Tinto Group is structured as a [[dual-listed company]], with listings on both the [[London Stock Exchange]]<ref name="LSE">http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB0007188757GBGBXSET10718875RIO</ref> and the [[Australian Securities Exchange]<ref name="ASE">http://www.asx.com.au/asx/research</ref> The dual-listed company structure grants shareholders of the two companies the same proportional economic interests and ownership rights in the consolidated Rio Tinto Group, in such a way as to be equivalent to all shareholders of the two companies actually being shareholders in a single, unified entity. This structure was implemented in order to avoid adverse tax consequences and regulatory burdens. In order to eliminate [[Foreign exchange market|currency exchange]] issues, the company's accounts are kept, and [[dividend]]s paid, in United States dollars.<ref name="RT-DLC"/> |
| − | | title = Rio Tinto Plc Ord 10P
| |
| − | | work=London Stock Exchange – Detailed Prices
| |
| − | | publisher=London Stock Exchange
| |
| − | | url = http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB0007188757GBGBXSET10718875RIO
| |
| − | | accessdate =11 March 2009}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> and the [[Australian Securities Exchange]] (symbol: RIO) in Sydney under the name '''Rio Tinto Limited'''<ref name="ASE">{{cite web
| |
| − | | title = Rio Tinto Limited (RIO)
| |
| − | | work=ASX Company Information
| |
| − | | publisher=Australian Securities Exchange
| |
| − | | url = http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=RIO
| |
| − | | accessdate =11 March 2009}}</ref> The dual-listed company structure grants shareholders of the two companies the same proportional economic interests and ownership rights in the consolidated Rio Tinto Group, in such a way as to be equivalent to all shareholders of the two companies actually being shareholders in a single, unified entity. This structure was implemented in order to avoid adverse tax consequences and regulatory burdens. In order to eliminate [[Foreign exchange market|currency exchange]] issues, the company's accounts are kept, and [[dividend]]s paid, in United States dollars.<ref name="RT-DLC"/>
| |
| | | | |
| − | Rio Tinto is one of the largest companies listed on either exchange. As such, it is included in the widely quoted indices for each market: the [[FTSE 100 Index]] of the London Stock Exchange,<ref name="LSE"/> and the [[S&P/ASX 200]] index of the Australian Securities Exchange.<ref name="ASX200">{{cite web
| + | As of mid-February 2009, shareholders were geographically distributed 42% in the United Kingdom, 18% in North America, 16% in Australia, 14% in Asia, and 10% in continental Europe.<ref name="Chartbook"/> |
| − | | title = S&P/ASX 200 Fact Sheet
| |
| − | | publisher=[[Standard & Poor's]]
| |
| − | | url = http://www2.standardandpoors.com/spf/pdf/index/SP_ASX_200_Factsheet_A4.pdf
| |
| − | | format = PDF
| |
| − | | accessdate =11 March 2009}}{{dead link|date=July 2012}}</ref> LSE-listed shares in Rio Tinto plc can also be traded indirectly on the [[New York Stock Exchange]] via an [[American Depositary Receipt]].<ref name="NYSE">{{cite web
| |
| − | | title = Rio Tinto plc
| |
| − | | work=Listings Directory
| |
| − | | publisher=NYSE Euronext
| |
| − | | url = http://www.nyse.com/about/listed/lcddata.html?ticker=RTP
| |
| − | | accessdate =11 March 2009}}</ref> As of 4 March 2009, Rio Tinto was the fourth-largest publicly listed mining company in the world, with a [[market capitalisation]] of approximately $134 billion.<ref name="Chartbook">{{cite web|url=http://www.riotinto.com/documents/investors_databook/March_09_Chartbook.pdf|title=Rio Tinto Chartbook|date=March 2009|publisher=Rio Tinto Group|accessdate=8 April 2009}}</ref> As of mid-February 2009, shareholders were geographically distributed 42% in the United Kingdom, 18% in North America, 16% in Australia, 14% in Asia, and 10% in continental Europe.<ref name="Chartbook"/>
| |
| | | | |
| − | ====BHP Billiton bid====
| + | ==Environment== |
| − | On 8 November 2007, rival mining company [[BHP Billiton]] announced it was seeking to purchase Rio Tinto Group in an all share deal. This offer was rejected by the board of Rio Tinto as "significantly undervalu[ing]" the company. Another attempt by BHP Billiton for a [[hostile takeover]], valuing Rio Tinto at $147 billion, was rejected on the same grounds. Meanwhile, the Chinese Government-owned resources group [[Aluminum Corporation of China Limited|Chinalco]] and the US aluminium producer Alcoa purchased 12% of Rio Tinto's London-listed shares in a move that would block or severely complicate BHP Billiton's plans to buy the company.<ref name="Freed-Chalco"/><ref name="bbctakeover"/> BHP Billiton's bid was withdrawn on 25 November 2008, with the BHP citing market instability from the [[global financial crisis of 2008–2009]].<ref name="Keenan-BHP">{{cite web|url=http://www.bloomberg.com/apps/news?pid=20601087&sid=acb0npgKQrEw&refer=home|title=BHP Withdraws $66 Billion Stock Offer for Rio Tinto|last=Keenan|first=Rebecca|date=25 November 2008|publisher=Bloomberg |accessdate=10 April 2009}}</ref>
| |
| − | | |
| − | ====Chinalco investment====
| |
| − | On 1 February 2009, Rio Tinto management announced that they were in talks to receive a substantial equity infusion from [[Chinalco]], a major Chinese state-controlled<ref name="Forbes"/> mining enterprise, in exchange for ownership interest in certain assets and bonds. Chinalco is already a major shareholder, having bought up 9% of the company's ownership in a surprise move in early 2008.<ref name="Guardian">{{Cite news
| |
| − | | last = Treanor
| |
| − | | first = Jill
| |
| − | | title = Rio Tinto confirms talks over Chinese cash injection
| |
| − | | work=guardion.co.uk
| |
| − | | publisher=Guardian News and Media Limited
| |
| − | | date = 1 February 2009
| |
| − | | url = http://www.guardian.co.uk/business/2009/feb/01/rio-tinto-nears-chinalco-deal
| |
| − | | accessdate =7 April 2009
| |
| − | | location=London}}</ref> The proposed investment structure reportedly involves $12.3 billion for the purchase of ownership interests of Rio Tinto assets in its iron ore, copper, and aluminium operations, plus $7.2 billion for [[convertible bonds]]. The transaction would bring Chinalco's ownership of the company to approximately 18.5%.<ref name="Forbes">{{Cite news|url=http://www.forbes.com/2009/04/06/rio-tinto-cash-markets-equity-miners.html|title=Rio Tinto on the Hunt for Cash|last=Espinoza|first=Javier|date=6 April 2009|work=Forbes |accessdate=7 April 2009}}</ref> The deal is still pending approval from regulators in the United States and China, and has not yet been approved by shareholders, although regulatory approval has been received from Germany and the [[Australian Competition and Consumer Commission]].<ref name="xinhua">{{cite web|url=http://news.xinhuanet.com/english/2009-04/03/content_11124288.htm|title=Chinalco's roadblocks of investment in Rio Tinto Group decreasing |last=Shasha|first=Deng|date=3 April 2009|work=chinaview.cn|publisher=Xinhua News Agency|accessdate=7 April 2009}}</ref> The largest barrier to completing the investment may come from Rio Tinto's shareholders: support for the deal by shareholders was never overwhelming and has reportedly declined recently<ref name="WSJ">{{Cite news|url=http://online.wsj.com/article/SB123911954518297263.html|title=No Escape from China for Rio Tinto|last=Denning|first=Liam|date=7 April 2009|work=Wall Street Journal |accessdate=7 April 2009}}</ref> as other financing options (such as a more traditional bond issuance) are beginning to appear more realistic as a viable alternative funding source.<ref name="Forbes"/><ref name="WSJ"/> A shareholder vote on the proposed deal is expected in the third quarter of 2009.<ref name="WSJ"/>
| |
| − | | |
| − | Rio Tinto is believed to have pursued this combined asset and convertible bond sale to raise cash to satisfy its debt obligations, which require payments of $9.0 billion in October 2009 and $10.5 billion by the end of 2010.<ref name="Forbes"/> The company has also noted China's increasing appetite for commodities, and the potential for increased opportunities to exploit these market trends, as a key factor in recommending the transaction to its shareholders.<ref name="Chartbook"/>
| |
| − | | |
| − | In March 2010, it was announced that Chinalco will invest $1.3 billion for a 44.65% stake in Rio Tinto's iron ore project in [[Simandou]], Guinea. Rio Tinto retains 50.35% ownership at Simandou.<ref>{{cite web
| |
| − | |title=Rio Tinto Simandou
| |
| − | |url=http://www.riotintosimandou.com/ENG/index.asp
| |
| − | |accessdate=20 March 2010
| |
| − | }}</ref>
| |
| − | | |
| − | In November 2011, Rio joined with Chinalco to explore for copper resources in China's complex landscape, by setting up a new company, CRTX, which is 51% owned by Chinalco, and 49% by Rio Tinto.<ref>{{cite web
| |
| − | |title=Rio Tinto joins up with Chinalco to explore for copper
| |
| − | |url=http://www.telegraph.co.uk/finance/newsbysector/industry/mining/8915027/Rio-Tinto-joins-up-with-Chinaclo-to-explore-for-copper.html
| |
| − | |accessdate=9 February 2012
| |
| − | }}</ref>
| |
| − | | |
| − | ===Management===
| |
| − | [[Image:120CollinsSt.jpg|thumb|right|upright|Rio Tinto's Australian headquarters are located in the [[120 Collins Street]] building in Melbourne, Australia.]]
| |
| − | Under the company's dual-listed company structure, management powers of the Rio Tinto Group are consolidated in a single senior management group led by a board of directors and executive committee. The board of directors has both executive and non-executive members, while the executive committee is composed of the heads of major operational groups.<ref name="RTMgmt" />
| |
| − | | |
| − | *'''Board of Directors'''
| |
| − | **''Executive Directors''
| |
| − | ***[[Jan du Plessis]], [[chairman]]
| |
| − | ***[[Sam Walsh (businessman)|Sam Walsh]], [[chief executive officer]]
| |
| − | ***Guy Elliott, [[chief financial officer]] (is to retire in 2013)<ref name="Guy Elliot’s Different Path to CFO">{{cite web|url=http://www.cfo-insight.com/human-capital-career/executive-change/guy-elliots-different-path-to-cfo/|date=8 October 2012|title= Guy Elliot’s Different Path to CFO |publisher=CFO Insight|accessdate=10 October 2012}}</ref>
| |
| − | **''Non-Executive Directors''
| |
| − | ***Sir [[David Clementi]]
| |
| − | ***[[Vivienne Cox]]
| |
| − | ***Sir [[Rod Eddington]]
| |
| − | ***[[Michael Fitzpatrick (footballer)|Michael Fitzpatrick]]
| |
| − | ***[[Yves Fortier (lawyer)|Yves Fortier]]
| |
| − | ***[[Richard Goodmanson]]
| |
| − | ***[[Andrew Gould]]
| |
| − | ***[[John Kerr, Baron Kerr of Kinlochard|The Lord Kerr of Kinlochard]]
| |
| − | ***[[David Mayhew]]
| |
| − | ***[[Paul Tellier]]
| |
| − | | |
| − | ==Operations==
| |
| − | Rio Tinto's main business is the production of raw materials including copper, iron ore, coal, bauxite, diamonds, uranium, and industrial minerals including titanium dioxide, talc, salt, gypsum, and borates. Rio Tinto also performs processing on some of these materials, with plants dedicated to processing bauxite into alumina and aluminium, and smelting iron ore into iron. The company also produces other metals and minerals as [[byproduct]]s from the processing of its main resources, including gold, silver, [[molybdenum]], [[sulphuric acid]], nickel, [[potash]], lead, and [[zinc]].<ref name="RT-Prod">{{cite web
| |
| − | | title = Our Products
| |
| − | | work=Rio Tinto web site
| |
| − | | publisher=Rio Tinto Group
| |
| − | | url = http://www.riotinto.com/whatweproduce/218_our_products.asp
| |
| − | | accessdate =11 March 2009}}</ref> Rio Tinto controls gross assets of $81 billion in value across the globe, with main concentrations in Australia (35%), Canada (34%), Europe (13%), and the United States (11%), and smaller holdings in Africa (3%), South America (3%), and Indonesia (1%).<ref name="Chartbook"/>
| |
| − | | |
| − | Rio Tinto is a signatory participant of the [[Voluntary principles on security and human rights|Voluntary Principles on Security and Human Rights]].
| |
| − | | |
| − | {| class="wikitable sortable"
| |
| − | |+Summary of 2008 Production<ref name="PR-2008"/>
| |
| − | |-
| |
| − | ! Product !! Amount !! World Ranking
| |
| − | |-
| |
| − | | Iron ore || 153,400 thousand [[tonne]]s || 2nd<ref name="FS-Iron">{{cite web
| |
| − | | title = Iron Ore Fact Sheet
| |
| − | | publisher=Rio Tinto Group
| |
| − | | url = http://www.riotinto.com/documents/ReportsPublications/corpPub_Iron_Ore.pdf
| |
| − | | format = PDF
| |
| − | | accessdate =11 March 2009}}</ref>
| |
| − | |-
| |
| − | | Bauxite || {{0|0}}34,987 thousand tonnes || 1st<ref name="RT-Prod"/>
| |
| − | |-
| |
| − | | Alumina || {{0|00}}9,009 thousand tonnes || 2nd<ref name="RT-Prod"/>
| |
| − | |-
| |
| − | | Aluminium || {{0|00}}4,062 thousand tonnes || 2nd<ref name="RT-Prod"/>
| |
| − | |-
| |
| − | | Copper (mined) || {{0|000,}}698.5 thousand tonnes || 4th<ref name="FS-Copper">{{cite web
| |
| − | | title = Copper Fact Sheet
| |
| − | | publisher=Rio Tinto Group
| |
| − | | url = http://www.riotinto.com/documents/ReportsPublications/corpPub_Copper.pdf
| |
| − | | format = PDF
| |
| − | | accessdate =11 March 2009}}</ref>
| |
| − | |-
| |
| − | | Copper (refined) || {{0|000,}}321.6 thousand tonnes || N/A
| |
| − | |-
| |
| − | | Molybdenum || {{0|000,0}}10.6 thousand tonnes || 3rd<ref name="Roskill">{{cite web
| |
| − | | title = Molybdenum
| |
| − | | work=Roskill Metals and Minerals Reports
| |
| − | | publisher=Roskill Information Services
| |
| − | | year = 2007
| |
| − | | url = http://www.roskill.com/reports/molybdenum
| |
| − | | accessdate =11 March 2009}}</ref>
| |
| − | |-
| |
| − | | Gold || {{0|000,00}}0.013 thousand tonnes (460,000 ounces) || 7th<ref name="FS-Copper"/>
| |
| − | |-
| |
| − | | Diamonds || {{0|000,00}}0.004 thousand tonnes (20,816,000 [[Carat (unit)|carats]]) || 3rd<ref name="Diamonds">{{cite web
| |
| − | | last = Krawitz
| |
| − | | first = Avi
| |
| − | | title = Rio Tinto 4Q08 Diamond Production −12%
| |
| − | | work=Diamonds.net News
| |
| − | | publisher=Diamonds.net
| |
| − | | date = 15 January 2009
| |
| − | | url = http://www.diamonds.net/news/NewsItem.aspx?ArticleID=24916
| |
| − | | accessdate =11 March 2009}}</ref>
| |
| − | |-
| |
| − | | Coal || 160,300 thousand tonnes || N/A
| |
| − | |-
| |
| − | | Uranium || {{0|000,00}}6.441 thousand tonnes (14,200,000 [[pound (mass)|pounds]]) || 3rd<ref name="RT-Prod"/>
| |
| − | |-
| |
| − | | Titanium Dioxide || {{0|00}}1,524 thousand tonnes || N/A, but at least 3rd
| |
| − | |-
| |
| − | | Borates || {{0|000,}}610 thousand tonnes || 1st<ref name="RT-Prod"/>
| |
| − | |}
| |
| − | | |
| − | ===Copper and byproducts: Rio Tinto Copper===
| |
| − | | |
| − | [[Image:Bingham Canyon April 2005.jpg|thumb|right|The [[Bingham Canyon Mine]] of Rio Tinto's subsidiary, Kennecott Utah Copper.]]
| |
| − | [[Image:Oyu Tolgoi 23.JPG|The [[Oyu Tolgoi mine]] is currently under development in Mongolia|thumb|right]]
| |
| − | Copper was one of Rio Tinto Group's main products from its earliest days operating at the Rio Tinto complex of mines in Spain. Since that time, the company has divested itself from its original Spanish mines, and grown its copper mining capacity through acquisitions of major copper resources around the world. The copper group's main active mining interests are [[Escondida|Minera Escondida]] in Chile, the [[Grasberg mine|Grasberg Mine]] on Indonesia, [[Kennecott Utah Copper]] in the United States, [[Northparkes]] in Australia, and [[Palabora]] in South Africa. Most of these mines are joint ventures with other major mining companies, with Rio Tinto's ownership ranging from 30% to 80%; only Kennecott is wholly owned. Operations typically include the mining of ore through to production of 99.99% purified copper, including extraction of economically valuable byproducts.<ref name="RT-copper">{{cite web
| |
| − | | title = Copper
| |
| − | | work=Rio Tinto web site
| |
| − | | publisher=Rio Tinto Group
| |
| − | | url = http://www.riotinto.com/whatweproduce/copper_578.asp
| |
| − | | accessdate =12 March 2009}}</ref> Together, Rio Tinto's share of copper production at its mines totalled nearly 700,000 [[tonne]]s, making the company the fourth-largest copper producer in the world.<ref name="FS-Copper"/>
| |
| − | | |
| − | Rio Tinto Copper continues to seek new opportunities for expansion, with major exploration activities at the [[Resolution Copper]] project in the United States, [[La Granja mine|La Granja Mine]] in Peru, and [[Oyu Tolgoi mine|Oyu Tolgoi]] in Mongolia. In addition, the company is seeking to become a major producer of nickel, with exploration projects currently underway in the United States and Indonesia.<ref name="RT-copper"/>
| |
| − | | |
| − | Although not the primary focus of Rio Tinto Copper's operations, several economically valuable [[byproduct]]s are produced during the refining of copper ore into purified copper. Gold, silver, molybdenum, and sulphuric acid are all removed from copper ore during processing. Due to the scale of Rio Tinto's copper mining and processing facilities, the company is also a leading producer of these materials, which drive substantial revenues to the company.<ref name="RT-copper"/>
| |
| − | | |
| − | Sales of copper generated 8% of the company's 2008 revenues, and copper and byproduct operations accounted for 16% of underlying earnings.<ref name="Chartbook"/>
| |
| − | Rio Tinto will exclusively provide the metal to produce the 4,700 gold, silver and bronze medals at the London 2012 Olympic and Paralympic Games.This is the second time Rio Tinto will be supplying the metal for Olympic medals, having previously done so for the Salt Lake City 2002 Winter Olympics.<ref name="RT-olympics">{{cite web
| |
| − | | title = We're helping to produce the London 2012 medals
| |
| − | | work=Rio Tinto web site
| |
| − | | publisher=Rio Tinto Group
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| − | | url = http://www.riotinto.com/london2012/index_london2012.asp
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| − | | accessdate =21 March 2012}}
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| − | </ref> Together, Rio Tinto's share of copper production at its mines totalled nearly 700,000 [[tonne]]s, making the company the fourth-largest copper producer in the world.<ref name="FS-Copper"/>
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| − | Rio Tinto also owns the naming rights to [[Rio Tinto Stadium]] located in nearby [[Sandy, Utah]], and the home of the [[Major League Soccer]] team, [[Real Salt Lake]].
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| − | ===Aluminium and related products: Rio Tinto Alcan===
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| − | [[Image:Alcan lynemouth.JPG|thumb|right|The [[Alcan Lynemouth Aluminium Smelter]] in Northumberland, England]]
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| − | | |
| − | {{main|Rio Tinto Alcan}}
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| − | | |
| − | The Rio Tinto Group has consolidated its aluminium-related businesses in its Rio Tinto Alcan division. Rio Tinto Alcan was formed in late 2007, when Rio Tinto purchased the Canadian company Alcan for $38.1 billion. Combined with Rio Tinto's existing aluminium-related assets, the new Rio Tinto Alcan vaulted to the world number one producer of bauxite, alumina, and aluminium.<ref name="RT-Alum">{{cite web
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| − | | title = Alumina, Aluminium and Bauxite
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| − | | work=Rio Tinto web site
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| − | | publisher=Rio Tinto Group
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| − | | url = http://www.riotinto.com/whatweproduce/452_aluminium_577.asp
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| − | | accessdate =12 March 2009}}</ref> Rio Tinto Alcan kept key leadership from Alcan, and the company's headquarters remain in Montreal.<ref name="CTV-Alcan-Aq"/>
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| − | | |
| − | [[Image:BauxiteUSGOV.jpg|thumb|left|Rio Tinto Alcan is the world's leading producer of bauxite (shown here with a [[Us cent|US Cent]] for scale).]]
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| − | Rio Tinto Alcan divides its operations into three main business units. The Bauxite and Alumina unit mines raw bauxite from locations in Australia, Brazil, and west Africa. The unit then refines the bauxite into alumina at refineries located in Australia, Brazil, Canada, and France. The Primary Metal business unit's operations consist of [[aluminium smelting|smelting aluminium]] from alumina, with smelters located in 11 countries around the world. The Primary Metal group also operates several power plants in order to support the energy-intensive smelting process. Finally, the Engineered Products unit processes aluminium into derivative products for speciality uses ranging from [[soda can|beverage containers]] to [[aerospace]] applications.<ref name="RT-Alum"/>
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| − | Rio Tinto Alcan has interests in seven bauxite mines and deposits, six alumina refineries and six speciality alumina plants, 26 aluminium smelters, 13 [[power plant]]s, and 120 facilities for the manufacture of speciality products.<ref name="RT-Alum"/> The acquisition of Alcan operations in 2007 substantially increased Rio Tinto's asset base, revenues and profits: in 2008, 41% of company revenues and 10% of underlying earnings were attributable to Rio Tinto Alcan.<ref name="Chartbook"/>
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| − | ===Coal and uranium: Rio Tinto Energy===
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| − | [[Image:Ranger Uranium Mine in Kakadu National Park.jpg|thumb|right|The [[Ranger Uranium Mine]] of Energy Resources of Australia, a Rio Tinto subsidiary.]]
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| − | | |
| − | [[Image:Yellowcake.jpg|right|thumb|Rio Tinto is the third-leading producer of uranium in the world (here as [[yellowcake]] ore concentrate).]]
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| − | | |
| − | Rio Tinto Energy is a business group of Rio Tinto dedicated to the mining and sale of coal and [[uranium]].<ref name="RT-coal">{{cite web
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| − | | title = Coal
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| − | | work=Rio Tinto web site
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| − | | publisher=Rio Tinto Group
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| − | | url = http://www.riotinto.com/whatweproduce/coal.asp
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| − | | accessdate =12 March 2009}}</ref>
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| − | | |
| − | The company focuses on both fuel coal for electricity generation in [[fossil-fuel power plant|coal power plants]], and [[coking coal]] for use in iron and [[steel mill]]s. The company's coal operations are located in Australia and the United States, mainly operating under its subsidiaries such as [[Rio Tinto Coal Australia]] and [[Rio Tinto Energy America]].<ref name="RT-coal"/> In 2009, Rio Tinto was engaged in an ongoing attempt to sell off assets of Rio Tinto Energy America. In March 2009, the company agreed to sell a major asset, the [[Jacobs Ranch]] coal mine in Wyoming, to [[Arch Coal]] for $761 million, and is continuing to seek buyers for remaining assets in an effort to reduce corporate debt.<ref name="Bloomberg-coal">{{cite web
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| − | | last = Foley
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| − | | first = Brett
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| − | | last2 = Herlihy
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| − | | first2 = Mark
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| − | | title = Arch Coal to Buy U.S. Mine From Rio for $761 Million (Update 2)
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| − | |publisher=Bloomberg
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| − | | date = 9 March 2009
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| − | | url = http://www.bloomberg.com/apps/news?pid=20601085&sid=aQRIkg28LZxA&refer=europe
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| − | | accessdate =12 March 2009}}</ref>
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| − | Rio Tinto's uranium operations are located at two mines: the [[Ranger Uranium Mine]] of [[Energy Resources of Australia]] and the [[Rössing Uranium Mine]] in Namibia. The company is the third-largest producer of uranium in the world. According to Rio Tinto's website, the company institutes strict controls and contractual limitations on uranium exports, limiting uses to peaceful, non-explosive uses only. Such controls are intended to limit use of the company's uranium production to use as fuel for [[nuclear power plant]]s only, and not for use in the production of [[nuclear weapon]]s.<ref name="RT-uranium">{{cite web
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| − | | title = Uranium
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| − | | work=Rio Tinto web site
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| − | | publisher=Rio Tinto Group
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| − | | url = http://www.riotinto.com/whatweproduce/452_uranium.asp
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| − | | accessdate =12 March 2009}}</ref> Rio Tinto Energy was responsible for 12% of revenues and 18% of underlying earnings in 2008.<ref name="Chartbook"/>
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| − | | |
| − | ===Diamonds: Rio Tinto Diamonds===
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| − | [[Image:Diavik Diamond Mine.jpg|thumb|right|The Diavik diamond mine in the Northwest Territories of Canada]]
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| − | Rio Tinto Diamonds operates three diamond mines: the [[Argyle diamond mine|Argyle Diamond Mine]] in Western Australia (100% ownership), the [[Diavik diamond mine|Diavik Diamond Mine]] in the Northwest Territories of Canada (60% ownership), and the [[Murowa diamond mine|Murowa Diamond Mine]] located in Zimbabwe (78% ownership). Together, these three mines produce 20% of the world's annual production of rough diamonds,<ref name="RTDiamond">{{cite web|url=http://www.riotintodiamonds.com/ENG/ourmines/index_ourmines.asp|title=Rio Tinto's Diamond Mines in Australia, Canada and Africa|work=Rio Tinto Diamonds web site|publisher=Rio Tinto Group|accessdate=13 March 2009}}</ref> making Rio Tinto the world's third-largest producer of mined diamonds.<ref name="Diamonds"/>
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| − | The diamond business unit's most advanced exploration project is the [[Bunder Project]] in District [[Chhatarpur]], Madhya Pradesh, India, where Rio Tinto became the first foreign group to be granted a prospecting license there.<ref name="RTD-Exp">{{cite web|url=http://www.riotintodiamonds.com/ENG/exploration/index_exploration.asp|title=A global diamond exploration portfolio|work=Rio Tinto Diamonds web site|publisher=Rio Tinto Group|accessdate=13 March 2009}}</ref> Rio Tinto Diamonds generated 1% of revenues and earnings for Rio Tinto Group in 2008.<ref name="Chartbook"/>
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| − | | |
| − | ===Industrial minerals: Rio Tinto Minerals===
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| − | [[Image:Dampier Salt.jpg|thumb|right|Map of Dampier Salt's saltworks in [[Dampier, Western Australia]].]]
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| − | Rio Tinto Minerals is a diverse business group with mining and processing interest in [[borate]]s, [[talc]], salt, and [[gypsum]]. [[Rio Tinto Borax]], with main operations in California and another mine in Argentina, supplies nearly half of the world's annual demand for refined borates, while the company's [[Luzenac Group]] subsidiary supplies 25% of global talc consumption. The Luzenac Group is also the only arm of the company with continuing active mining operations on the European continent: in addition to mines in North America and Australia, the company also operates a talc mine in southern France.<ref name="RT-Europe">{{cite web|url=http://www.riotinto.com/whatweproduce/europe.asp|title=What We Produce: Europe|work=Rio Tinto web site|publisher=Rio Tinto Group|accessdate=13 March 2009}}</ref> The Minerals group is also majority owner of [[Dampier Salt]], which produces over 9 million tonnes of salt and 1.5 million tonnes of gypsum annually from its three facilities in northwest Australia.<ref name="DS">{{cite web
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| − | | title = Dampier Salt web site
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| − | | url = http://www.dampiersalt.com.au/tnpn002785/prod/dsl/dslhome.nsf
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| − | | accessdate =12 March 2009}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> Rio Tinto Minerals accounted for 6% of company revenues, and contributed 3% to earnings in 2008.<ref name="Chartbook"/>
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| − | On 31 January 2010, the management of U.S. Borax locked out its hourly workforce, replacing the workers with nonunion workers and managers from other Rio Tinto operations. The 560 [[International Longshore and Warehouse Union]] Local 30 members immediately began a fireside vigil that garnered national and international labour attention.<ref name="boraxminers">{{cite web|title=Borax Miners|url=http://www.boraxminers.com/}}</ref> ILWU filed several unfair labour practices against the company, including an illegal lock-out claim.<ref name="boraxminers" />
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| − | | |
| − | ===Iron products and titanium: Rio Tinto Iron and Titanium===
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| − | Rio Tinto Iron and Titanium (RTIT) oversees the company's iron and titanium production. RTIT generated a large portion of the company's revenues and earnings in 2008, accounting for 27% and 52%, respectively, of company-wide operating results.<ref name="Chartbook"/>
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| − | | |
| − | Rio Tinto is the world's second-largest supplier of iron ore,<ref name="FS-Iron"/> producing over 153 million tonnes in calendar year 2008.<ref name="PR-2008"/> The company's major iron ore mines and development projects are located in Australia, South America, Canada, India, and Guinea. Major subsidiaries held within RTIT include [[Hamersley Iron]], majority interest in the [[Pilbara Iron]] mines, and the [[Iron Ore Company of Canada]].<ref name="RT-Ironore">{{cite web|url=http://www.riotinto.com/whatweproduce/572_iron_ore.asp|title=Our Products: Iron Ore|work=Rio Tinto Group web site|publisher=Rio Tinto Group|accessdate=13 March 2009}}</ref> The company also runs smelting facilities for the production of iron and steel—limited in size in comparison to the massive amount of iron ore produced—at [[QIT-Fer et Titane]] in Canada<ref name="QIT-Fer">{{cite web
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| − | | title = QIT-Fer et Titane
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| − | | work=QIT-Fer et Titane web site
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| − | | publisher=QIT-Fer et Titane
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| − | | url = http://www.qit.com/eng/index.asp
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| − | | accessdate =11 March 2009}}{{dead link|date=July 2012}}</ref> and [[HISmelt]] in Australia.<ref name="RT-Ironore"/>
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| − | | |
| − | Titanium dioxide is mined at three locations in Canada, South Africa, and Madagascar, and refined at QIT-Fer et Titane's Canadian facilities.<ref name="QIT-Fer"/> Major subsidiaries include [[Richards Bay Minerals]] of South Africa and [[QIT Madagascar Minerals]].<ref name="RT-Titanium">{{cite web|url=http://www.riotinto.com/whatweproduce/452_titanium_dioxide.asp|title=Our Products: Titanium Dioxide|work=Rio Tinto Group web site|publisher=Rio Tinto Group|accessdate=13 March 2009}}</ref> In 2008 Rio Tinto produced 1.524 million tonnes of titanium dioxide,<ref name="PR-2008"/> or approximately 27% of the estimated global production of 5.6 million tonnes.<ref>{{cite web|url=http://digital50.com/news/72931|title=Global Titanium Dioxide Capacity May Rich 7,5 mln tons/year by 2015|date=10 February 2009|publisher=Business Wire|accessdate=13 March 2009}}</ref>
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| − | A media report in October 2013 revealed that the corporation plans to establish a fully automated railroad system for the transportation of iron ore across the Australian [[outback]] by 2015, thereby replacing the Group's train drivers. The United Kingdom (UK)-based transport historian Christian Wolmar stated at the same time that the train drivers are most likely the highest-paid members of the occupation in the world at that time. As part of an overall strategy to increase profit margins, the Group is spending US$518 million on the project.<ref>{{cite news|title=Rio Replacing Train Drivers Paid Like U.S. Surgeons|url=http://www.bloomberg.com/news/2013-10-02/rio-replacing-train-drivers-paid-like-u-s-surgeons.html|accessdate=3 October 2013|newspaper=Bloomberg|date=3 October 2013|author=Elisabeth Behrmann}}</ref>
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| − | | |
| − | [[Image:Hamersley Iron 2000 locomotive, Dampier.jpg|thumb|right|Pilbara Iron maintains the Pilbara Rail Company to serve its Western Australia iron ore mines.<ref name="PilbaraRail">{{cite web|url=http://www.allbusiness.com/construction/heavy-civil-construction-railroad/6093776-1.html|title=Robe and Hamersley to Share Pilbara Rail Infrastructure, Says Rio Tinto|last=Business Editors|date=2 July 2001|work=Business Wire|publisher=Business Wire|accessdate=13 March 2009}}{{dead link|date=July 2012}}</ref>]]
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| − | | |
| − | ==Financial results==
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| − | Rio Tinto Group's revenues and earnings have grown substantially in the 2003–2010 time period, with one of the largest increase attributable to the company's acquisition of Alcan in 2007. Although operating margin is significantly impacted by the market prices of the various commodities it produces, Rio Tinto has remained profitable over its recent history and consistently generated positive cash flows from operations.<ref name="PR-2008"/><ref name=prelims09>{{cite web|url=http://www.riotinto.com/documents/PR788g_Rio_Tinto_announces_underlying_earnings_of_6.3_billion.pdf |title=Preliminary Results 2009 |publisher=Riotinto.com |date=19 April 2012 |accessdate=24 April 2012}}</ref>
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| − | | |
| − | {| class = "wikitable"
| |
| − | |+Earnings data (in US$ millions)<ref name=prelims09/>
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| − | |-
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| − | ! !!2003 !!2004 !!2005 !!2006 !!2007 !!2008 !!2009 !!2010 !!2011 !! 2012
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| − | |-
| |
| − | | Gross Sales Revenue||{{0|0}}9,228 ||{{0|0}}14,530 ||{{0|0}}20,742 ||{{0|0}}25,440 ||{{0|0}}33,518 ||{{0|0}}58,065 ||{{0|0}}44,036 ||{{0|0}}60,323 ||{{0|0}}60,537 ||{{0|0}}50,967
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| − | |-
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| − | | Underlying Profit Before Tax||{{0|0}}1,968 ||{{0|0}}3,017 ||{{0|0}}7,094 ||{{0|0}}9,719 ||{{0|0}}9,947 ||{{0|0}}15,977 ||{{0|0}}7,860 ||{{0|0}}20,577 ||{{0|0}}13,214 ||{{0|0}}9,303
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| − | |-
| |
| − | | Underlying Net Earnings||{{0|0}}1,382 ||{{0|0}}2,272 ||{{0|0}}4,955 ||{{0|0}}7,338 ||{{0|0}}7,443 ||{{0|0}}10,303 ||{{0|0}}6,298 ||{{0|0}}13,987 ||{{0|0}}5,826 ||{{0|0}}(2,990)
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| − | |-
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| − | | Cash Flow From Operations||{{0|0}}3,486 ||{{0|0}}4,452 ||{{0|0}}8,257 ||{{0|0}}10,923 ||{{0|0}}12,569 ||{{0|0}}20,668 ||{{0|0}}13,834 ||{{0|0}}23,530 ||{{0|0}}27,388 ||{{0|0}}16,450
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| − | |-
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| − | | Operating Margin||{{0|00}}19%||{{0|00}}24%||{{0|00}}37%||{{0|00}}42%||{{0|00}}34%||{{0|00}}32% ||{{0|00}}17% ||{{0|00}}36% ||{{0|00}}23% ||{{0|00}}18%
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| − | |}
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| − | | |
| − | ==Public impact==
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| − | | |
| − | ===Involvement with Axis powers in World War II===
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| − | Rio Tinto's status as a mainly British-owned company, located in Spain and producing pyrites – an important material for military applications – created a complicated set of circumstances for the company's operation in the 1930s and 1940s. During the [[Spanish Civil War]], the region in which Rio Tinto's mines were located came under the control of [[Francisco Franco|Franco]]'s nationalists in 1936. However, Franco increasingly intervened in the company's operations, at times requisitioning pyrite supplies for use by Spain and its [[Axis powers|Axis]] allies Germany and Italy, forcing price controls on the company's production, restricting exports, and threatening nationalisation of the mines. Although company management (and indirectly, the British government) managed to counteract some of these efforts by Franco, much of the mine's pyrite production was channelled to Axis powers before and during World War II. Nonetheless, Franco's meddling caused the mine's production and profitability to fall precipitously during and after the war, leading the company to ultimately exit from its Spanish operations in 1954.<ref name="Kutney">{{Cite book|last=Kutney|first=Dr. Gerald|title=Sulfur: History, Technology, Applications & Industry|publisher=ChemTec Publishing|year=2007|page=260|isbn=1-895198-37-2, 9781895198379|url=http://books.google.com/?id=O4rzzkUQyzIC|accessdate=9 April 2009}}</ref>
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| − | | |
| − | ===Criticisms===
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| − | | |
| − | ====Environment====
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| | Rio Tinto Group has been widely criticised by environmentalist groups for its mining activities. Opposition to the company focuses on its mining methods due to environmental degradation, the company's coal operations for their contribution to [[global warming]], and uranium operations for environmental and nuclear technology concerns. | | Rio Tinto Group has been widely criticised by environmentalist groups for its mining activities. Opposition to the company focuses on its mining methods due to environmental degradation, the company's coal operations for their contribution to [[global warming]], and uranium operations for environmental and nuclear technology concerns. |
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| − | [[Image:Grasberg mine.jpg|thumb|right|Rio Tinto's Grasberg mine in Indonesia has been the focus of environmental concerns. (Photo by Alfindra Primaldhi)]]
| + | Perhaps the most significant environmental criticism to date has come from the [[Government of Norway]], which divested itself from Rio Tinto shares and banned further investment due to environmental concerns. Claims of severe environmental damages related to Rio Tinto's engagement in the [[Grasberg mine]] in Indonesia led [[the Government Pension Fund of Norway]] to exclude Rio Tinto from its investment portfolio. The fund, which is said to be the world's second-largest pension fund, sold shares in the company valued at {{NOK|4.85 billion}} (US$ 855 million) to avoid contributing to environmental damages caused by the company.<ref>http://www.regjeringen.no/en/dep/fin/Press-Center/Press-releases/2008/the-government-pension-fund-divests-its-.html?id=526030&epslanguage=EN-GB</ref> |
| − | | |
| − | Perhaps the most significant environmental criticism to date has come from the [[Government of Norway]], which divested itself from Rio Tinto shares and banned further investment due to environmental concerns. Claims of severe environmental damages related to Rio Tinto's engagement in the [[Grasberg mine]] in Indonesia led [[the Government Pension Fund of Norway]] to exclude Rio Tinto from its investment portfolio. The fund, which is said to be the world's second-largest pension fund, sold shares in the company valued at {{NOK|4.85 billion}} (US$ 855 million) to avoid contributing to environmental damages caused by the company.<ref>{{cite web |url=http://www.regjeringen.no/en/dep/fin/Press-Center/Press-releases/2008/the-government-pension-fund-divests-its-.html?id=526030&epslanguage=EN-GB| title=The Government Pension Fund divests its holdings in mining company |author=[[Norwegian Ministry of Finance]] |date=9 September 2008 }}</ref> | |
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| − | {{quote|Exclusion of a company from the Fund reflects our unwillingness to run an unacceptable risk of contributing to grossly unethical conduct. The Council on Ethics has concluded that Rio Tinto is directly involved, through its participation in the Grasberg mine in Indonesia, in the severe environmental damage caused by that mining operation.<ref name='R000009'>{{Cite news | first= Terry| last= MacAlister| title=Ethical business: Norway ejects mining giant Rio from its pension portfolio | date=9 September 2008 | url =http://www.guardian.co.uk/business/2008/sep/09/riotinto.ethicalbusiness |work=The Guardian |location=UK | accessdate = 10 September 2008 }}</ref>|[[Kristin Halvorsen]], [[Minister of Finance (Norway)|Norwegian Minister of Finance]]}} | + | {{quote|Exclusion of a company from the Fund reflects our unwillingness to run an unacceptable risk of contributing to grossly unethical conduct. The Council on Ethics has concluded that Rio Tinto is directly involved, through its participation in the Grasberg mine in Indonesia, in the severe environmental damage caused by that mining operation.<ref name='R000009'>http://www.guardian.co.uk/business/2008/sep/09/riotinto.ethicalbusiness </ref>|[[Kristin Halvorsen]], [[Minister of Finance (Norway)|Norwegian Minister of Finance]]}} |
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| − | Rio Tinto disputes the claims of environmental damage at the Grasberg mine, and states that the company has long maintained an excellent record on environmental issues.<ref name="BBC-env">{{Cite news|url=http://news.bbc.co.uk/2/hi/business/7608097.stm|title=Norway blacklists miner Rio Tinto|date=10 September 2008|publisher=BBC News |accessdate=9 April 2009}}</ref> | + | Rio Tinto disputes the claims of environmental damage at the Grasberg mine, and states that the company has long maintained an excellent record on environmental issues.<ref name="BBC-env">http://news.bbc.co.uk/2/hi/business/7608097.stm</ref> |
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| − | ====Labour and human rights====
| + | ==Labour and human rights== |
| | Safety and labour rights concerns have been raised against Rio Tinto by unions and political action groups, in particular the [[Construction, Forestry, Mining and Energy Union]] (CFMEU). The CFMEU ran a campaign against the company after it tried to de-unionise its workforce after the introduction of the [[John Howard|Howard Government]]'s [[Workchoices|Workplace Relations Act 1996]]. | | Safety and labour rights concerns have been raised against Rio Tinto by unions and political action groups, in particular the [[Construction, Forestry, Mining and Energy Union]] (CFMEU). The CFMEU ran a campaign against the company after it tried to de-unionise its workforce after the introduction of the [[John Howard|Howard Government]]'s [[Workchoices|Workplace Relations Act 1996]]. |
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| − | Activist groups have also expressed concern regarding Rio Tinto's operations in Papua New Guinea, which they allege were one catalyst of the [[History of Bougainville#Shutting the Panguna mine|Bougainville separatist crisis]].<ref>{{Cite journal|doi=10.1111/1467-8608.00143|last=See Lea|first=David|year=1999|title=Corporate and Public Responsibility, Stakeholder Theory and the Developing World|journal=Business Ethics: A European Review|volume=8|issue=3|pages=151–162}}</ref> The British anti-poverty charity [[War on Want]] has also criticised Rio Tinto for its complicity in the serious human rights violations which have been occurred near the mines it operates in Indonesia and Papua New Guinea.<ref name="War on Want">{{cite web|url=http://www.waronwant.org/attachments/Fanning%20the%20Flames.pdf|title=Fanning the Flames|last=Curtis|first=mark|date=November 2007|work=Fanning the Flames|publisher=War on Want|accessdate=10 April 2009}}</ref> The 2001 British documentary [[The Coconut Revolution]] tells the story of the eventual success of the local [[indigenous peoples]] in overcoming the plans of the company and the New Papuan army. | + | Activist groups have also expressed concern regarding Rio Tinto's operations in Papua New Guinea, which they allege were one catalyst of the [[History of Bougainville#Shutting the Panguna mine|Bougainville separatist crisis]]. The British anti-poverty charity [[War on Want]] has also criticised Rio Tinto for its complicity in the serious human rights violations which have been occurred near the mines it operates in Indonesia and Papua New Guinea.<ref name="War on Want">{http://www.waronwant.org/attachments/Fanning%20the%20Flames.pdf</ref> The 2001 British documentary [[The Coconut Revolution]] tells the story of the eventual success of the local [[indigenous peoples]] in overcoming the plans of the company and the New Papuan army. |
| − | | |
| − | On 31 January 2010, Rio Tinto locked out nearly 600 workers from a mine in Boron, California, USA.<ref name="Reuters-Boron">{{Cite news|url=http://www.reuters.com/article/idUSTRE61O0CV20100225 |title=Locked-out Rio Tinto borax miners in U.S. get support |agency=Reuters |accessdate=24 February 2010 | date=25 February 2010}}</ref> The workers, represented by the local [[International Longshore and Warehouse Union]], had rejected a contract proposal, claiming it would scrap their seniority system and allow the company to hire more nonunion employees.
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| | | | |
| − | Rio Tinto was also accused of planning and funding the murder of RTI activist Shehla Masood in Bhopal, India. Apparently she was protesting illegal diamond mining done by Rio Tinto in connivance with government officers. The case was however solved and no connection to Rio Tinto was established, though popular opinion still perceives them as the possible culprit.<ref>{{cite web|title=Shehla Masood Case solved|url=http://daily.bhaskar.com/article/MP-BHO-shehla-masood-case-solved-twitterati-slams-congress-2922727.html}}</ref><ref>{{cite web|title=Letters by Shehla Masood on Illegal mining|url=http://ibnlive.in.com/news/mystery-behind-shehla-masoods-murder-deepens/177484-3.html}}</ref><ref>{{cite web|title=Shehla Masood's last interview|url=http://www.outlookindia.com/article.aspx?278128}}</ref><ref>{{cite web|title=RTI activist shot dead|url=http://articles.timesofindia.indiatimes.com/2011-08-16/india/29891770_1_rti-activist-anna-hazare-gun-shot}}</ref> | + | On 31 January 2010, Rio Tinto locked out nearly 600 workers from a mine in Boron, California, USA.<ref name="Reuters-Boron">http://www.reuters.com/article/idUSTRE61O0CV20100225 </ref> The workers, represented by the local [[International Longshore and Warehouse Union]], had rejected a contract proposal, claiming it would scrap their seniority system and allow the company to hire more nonunion employees. |
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| − | Rio Tinto is not, however, universally condemned for its ethical behaviour. The company has won an award for ethical behaviour, the Worldaware Award for Sustainable Development in 1993.<ref name="Worldaware-Tate">{{cite web|url=http://www.worldaware.org.uk/awards/awards1993/riotinto.html|title=Tate and Lyle Award for Sustainable Development|year=1993|publisher=Worldaware|accessdate=10 April 2009}}</ref> The award, although given by an independent committee, is sponsored by another multinational corporation (in this case, the sponsor was [[Tate and Lyle]]). Rio Tinto has, in turn, sponsored its own WorldAware award, the Rio Tinto Award for Long-term Commitment.<ref name="RT-Worldaware">{{cite web|url=http://www.worldaware.org.uk/awards/awards1999/shell.html|title=The Rio Tinto Award for Long-Term Commitment|year=1999|publisher=Worldaware|accessdate=10 April 2009}}</ref> The British charity Worldaware ceased to exist in March 2005.<ref>{{cite web|url=http://www.worldaware.org.uk/about/index.html |title=About Worldaware |publisher=Worldaware.org.uk |accessdate=24 April 2012}}</ref> These awards, awarded to extractive industries who make some environmental commitments in order to deflect the more general criticisms of their operations, are referred to by corporate watchdog groups as "[[Greenwashing]]".<ref>{{cite web|last=Client Earth|title=Rio Tinto’s greenwash challenged in first big test of UK’s company reporting regulator|url=http://www.clientearth.org/media-briefing-rio-tintos-greenwash-challenged-in-first-big-test-of-uks-company-reporting-regulator|accessdate=8 April 2011}}</ref><ref>{{Cite news|last=Campbell|first=Logan|title=Rio Tinto greenwashing bad record|url=http://www.dailyutahchronicle.com/opinion/rio-tinto-greenwashing-bad-record-1.847509|accessdate=9 April 2011|newspaper=The Daily Utah Chronicle|date=28 October 2008}}{{dead link|date=July 2012}}</ref><ref>{{cite web|last=Bruno|first=Kenny|title=The UN's Global Compact, Corporate Accountability and the Johannesburg Earth Summit|url=http://www.corpwatch.org/article.php?id=1348#37|publisher=CorpWatch|accessdate=1 April 2011}}</ref> | + | Rio Tinto was also accused of planning and funding the murder of RTI activist Shehla Masood in Bhopal, India. Apparently she was protesting illegal diamond mining done by Rio Tinto in connivance with government officers. The case was however solved and no connection to Rio Tinto was established, though popular opinion still perceives them as the possible culprit.<ref>http://daily.bhaskar.com/article/MP-BHO-shehla-masood-case-solved-twitterati-slams-congress-2922727.html</ref><ref>http://ibnlive.in.com/news/mystery-behind-shehla-masoods-murder-deepens/177484-3.html</ref><ref>http://www.outlookindia.com/article.aspx?278128</ref><ref>http://articles.timesofindia.indiatimes.com/2011-08-16/india/29891770_1_rti-activist-anna-hazare-gun-shot</ref> |
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| − | ==See also== | + | ==Greenwashing== |
| − | {{Portal|London|Australia|Companies}}
| + | Rio Tinto is not, however, universally condemned for its ethical behaviour. The company has won an award for ethical behaviour, the Worldaware Award for Sustainable Development in 1993.<ref name="Worldaware-Tate">http://www.worldaware.org.uk/awards/awards1993/riotinto.htm</ref> The award, although given by an "[[independent]]" committee, is sponsored by another multinational corporation (in this case, the sponsor was [[Tate and Lyle]]). Rio Tinto has, in turn, sponsored its own WorldAware award, the Rio Tinto Award for Long-term Commitment.<ref name="RT-Worldaware">http://www.worldaware.org.uk/awards/awards1999/shell.html</ref> The British charity Worldaware ceased to exist in March 2005.<ref>http://www.worldaware.org.uk/about/index.html </ref> These awards, awarded to extractive industries who make some environmental commitments in order to deflect the more general criticisms of their operations, are referred to by corporate watchdog groups as "[[Greenwashing]]".<ref>http://www.clientearth.org/media-briefing-rio-tintos-greenwash-challenged-in-first-big-test-of-uks-company-reporting-regulator</ref><ref>http://www.dailyutahchronicle.com/opinion/rio-tinto-greenwashing-bad-record-1.847509</ref><ref>http://www.corpwatch.org/article.php?id=1348#37</ref> |
| − | * [[Diamonds as an investment]]
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| − | * [[Shehla Masood]]
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| | ==References== | | ==References== |
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This page imported content from Wikipedia on 5 November 2013.
Rio Tinto Group 
