Performance
Financial performance
"Exploration" expenditures reported by Rio Tinto include exploration and evaluation spends in both the greenfield and brownfield environments. Evaluation includes all pre-feasibility and feasibility study work.
Expenditure on evaluation projects reported separately by each of the Rio Tinto product groups is included in this summary.
2008 compared with 2007
Gross cash expenditure on exploration and evaluation in 2008 was US$1,134 million, an increase of US$560 million over 2007 gross expenditure. This primarily reflects the progression of high quality advanced projects within the exploration and evaluation pipeline. Gross expenditures are offset by US$489 million cash proceeds from the sale of the Kintyre and Corani properties, Wafi and Hidden Valley royalties, and various other interests, which is net of the impairment of shares during 2008. The pre-tax charge to underlying earnings of US$645 million is net of the US$489 million of total proceeds from the divestments mentioned above.
2007 compared with 2006
Gross cash expenditure on exploration and evaluation in 2007 was US$574 million, a US$229 million increase over 2006, reflecting an increase in the number of high quality projects in the exploration and evaluation pipeline. Gross expenditures are offset by US$253 million cash proceeds from the divestment of the Peñasquito royalty, shares in Anatolia Minerals, the Southdown iron ore deposit and various other interests. The pre tax charge to underlying earnings in 2007 was US$321 million net of the US$253 million of total proceeds from divestments mentioned above.
