Energy use per tonne of product
Changes in Rio Tinto's energy use per tonne of product result from changes in both the balance of our product mix and in the rate of energy used in our production processes. Changes are standardised across the Group, using an efficiency calculation, to allow comparison between, for example, the energy used to produce carats of diamonds with tonnes of iron ore. Efficiency targets are set to promote improvements in underlying operational results.
Energy use per tonne of product decreased by 2.7 per cent in 2005, compared to 2003 and 2.5 per cent compared to 2004. Reasons for these efficiency improvements are due to:
- Return to full production – A number of operations achieved high production output in 2005 with improved energy efficiency. This includes IOC which resumed full production following an interrupted year in 2004 due to an industrial dispute, and the commencement of energy efficient underground operations at Palabora and Northparkes mines.
- Production increases – Process efficiencies continue to be achieved at Diavik with further production ramp-up.
- Process improvement – QIT has improved its energy efficiency including utilisation of smelter gas, resulting in reduced natural gas usage.
Over the past five years there has been a 2.0 per cent decline in energy efficiency performance. This reinforces the need for quantitative and specific targets to drive improvement. Our target is a five per cent reduction in energy used per tonne of product between 2003 and 2008, based on efficiency improvements. The results in 2005 relative to our target are ahead of our trajectory, but further improvement is required and should be achievable as action plans developed by operations as a result of the targets (and the greenhouse gas standard) are implemented and achieve energy use reductions.
Energy use efficiency change compared to 2001 (%)
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