Closure
The new Rio Tinto Closure Standard is mandatory for all Rio Tinto managed activities as of 1st July 2005. The intent of the Standard is to ensure that Rio Tinto managed activities are left in a condition which minimises adverse impacts on the human and natural environment, and that a legacy remains which makes a positive contribution to sustainable development. All operations were previously required to have closure strategies which are reviewed at least every five years. The closure strategy’s assumptions and inputs must be assessed annually under the new Standard.
Rio Tinto’s closure management plan review programme in 2005 found that good progress has been made since the last versions of closure plans were reviewed at the Group level. However, considerable work remains in most businesses to develop closure management plans at a level of detail and rigour that can be considered to conform to Rio Tinto’s requirements.
Rio Tinto's total provision for closure, restoration and other environmental costs was US$2.7 billion at the end of 2005. The increase from last year is largely due to a number of businesses updating their closure plans and the effect of changes to exchange rates and inflation.
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