Performance
Strategy
Copper
The Copper group's strategy is to be a leading base metal provider by value creation, with a focus on copper, molybdenum and nickel.
The strategy is based on a long term view of increasing demand from China and other developing countries, coupled with anticipated supply side constraints.
While the current economic environment is limiting demand in the near term, the group expects the economic expansion of China and other developing economies to resume. The Copper group believes that its portfolio of mines and projects gives it the flexibility to adapt to changing economic conditions. Investment plans are rigorously evaluated in light of demand and supply scenarios.
While certain investments have been delayed in response to recent macroeconomic conditions, Rio Tinto believes it has the capability and experience to develop and expand its portfolio of assets when economic conditions improve. Rio Tinto is investing in the application of innovative technologies including block caving, automation, flash converter smelting and sulphide leaching. As copper mining shifts from open pit to underground, Rio Tinto believes its block caving expertise will enable mine life extensions through access to new high grade deposits at greater depths. Rio Tinto has developed its block caving expertise at its existing operations at Northparkes, Palabora and Grasberg. Future developments are expected to rely on large scale block caving include Oyu Tolgoi, Resolution and Bingham Canyon.
Rio Tinto carefully observes the principles of The way we work, with a focus on responsible environmental performance and a commitment to strong community relations. The Copper group is not constrained by geographic considerations and can work where development opportunities exist.Diamonds
Rio Tinto Diamonds' strategy is to be the preferred global supplier of natural rough diamonds and to operate, manage and develop world class diamond resources safely and efficiently. Rio Tinto Diamonds aims to maintain its focus on operational and marketing excellence and continue its strong sustainable development and environmental performance across its operations.
Rio Tinto Diamonds intends to retain its position as a leading diamond supplier, by focusing on rough diamond sales, except where there are exceptional opportunities for adding value through cutting and polishing, such as with Argyle pink diamonds. Rio Tinto Diamonds intends to continue its focus on retaining custody through the supply chain of the diamonds it produces by marketing all products according to the mine of origin.
The current economic situation presents challenges for Rio Tinto Diamonds in terms of weakening demand and prices. However the group believes that robust action has been taken to address this by slowing development and reducing production in the short term at both Argyle and Diavik.
