Who we are
Energy use
Rio Tinto both consumes energy in its operations and produces it. Our smelting and mineral processing operations are energy intensive and depend heavily on electricity, coal, oil, diesel and gas to keep them running. At the same time, Rio Tinto is one of the world's leading producers of coal and of uranium for the energy industry.
We believe the energy challenge can best be met by companies, governments and society working together on all fronts. Global energy demand growth will require all available energy sources: fossil fuels, nuclear and renewable energy sources. The goal in each case should be to continually improve the cost-security-cleanliness equation, by fully recognising and addressing the risks involved and benefits achievable. Technology development will be at the heart of improved energy solutions.
We strive to improve the energy efficiency of all our operations. Some of the energy saving opportunities we have identified are actionable immediately; others require significant capital expenditure and have long design and construction lead times. For example, we are currently developing a step change technology, the Drained Cathode Cell for aluminium production. This has the potential to significantly reduce the amount of process energy required to make aluminium metal.
A US$550 million pilot plant is being built at Rio Tinto Alcan's Complexe Jonquiere site in Canada to develop the proprietary Aluminium Pechiney Series 50 (AP50) smelting technology. The AP50 pilot plant is the initial step in creating up to 450,000 tonnes of new generation smelting capacity, based entirely on clean, renewable hydroelectricity. The technology offers lower carbon dioxide output and allows for emissions reductions that could be applied across the industry. The company has set an ambitious goal of developing an environmentally friendly aluminium smelting cell that is 20 per cent more energy efficient than existing technology.
Compared to 2006, Rio Tinto's energy use increased by 3.3 per cent to 266 petajoules. In 2007, Alcan used 270 petajoules on an equity share basis. This includes a significant proportion of hydroelectric power. Two thirds of our combined electricity supply will be greenhouse friendly hydro and nuclear power going forward.
*excludes electricity used by Alcan's Engineered Products and Packaging divisions
Rio Tinto's target is a five per cent reduction in energy use per tonne of product by 2008, compared with 2003. Energy use efficiency has improved by 0.7 per cent compared to 2003. Incremental improvements in energy efficiency seen at many operations were overshadowed by restrictions to production, expansion activities and reductions in ore grade, which make meeting our target challenging.
This year, industrial action at the Iron Ore Company of Canada during the cold winter months suppressed production at a time when energy use is at its peak. Our Pilbara iron ore mines saw increased fuel used for mining and increased demand for electricity supply to third parties in the region, which overshadowed other efficiency gains. Our Argyle diamond mine experienced a decrease in ore grade following its transition to underground operations combined with an increased reliance on on-site electricity generation that decreased its energy use efficiency. Coal operations on the east coast of Australia experienced rail and port restrictions while fuel and electricity continued to be used at the mines.
Step changes in energy efficiency will not be possible within the target period. However, our executive committee has sponsored additional projects over and above "business as usual" to review and prioritise opportunities for large scale energy use savings and greenhouse gas emission reductions.
