Performance
Exploration
The Group has had a sustained commitment to exploration since 1946 and considers exploration to be one of its core competencies. Mature Group operations, such as Weipa, the Pilbara and Rössing, were Tier 1 greenfield discoveries by Rio Tinto. The value of these discoveries is still being realised by both mine production and successful brownfield exploration after more than 40 years.
Continuing this legacy, since 2000, the Exploration group has identified two of the largest copper opportunities in the world at Resolution in Arizona, US and La Granja in Peru. Exploration has also delivered the world's largest known undeveloped high grade iron ore resource, at Simandou in Guinea, as well as the Caliwingina channel iron deposits in the Pilbara, Australia. Exploration identified the Potasio Rio Colorado potash deposit in Argentina which Rio Tinto has sold to Vale, the largest potash discovery in South America, and in 2008 handed over to the product groups for further evaluation the Sulawesi nickel deposit in Indonesia and the Mutamba and Chilubane ilmenite deposits in Mozambique.
A significant proportion of exploration expenditure is returned to Rio Tinto through the sale of Tier 2 discoveries. Over the nine year period 2000 to 2008, divestment of Exploration group projects has returned US$977 million for a net pre tax exploration spend of approximately US$226 million. Over the period this translates to an average Tier 1 discovery cost of just over US$28 million per deposit.
The following table shows the Exploration group's Tier 1 discoveries since 2000:
| Year | Discovery | Commodity | Location |
|---|---|---|---|
| 2000 | Potasio Rio Colorado | Potash | Argentina |
| 2002 | Resolution | Copper | US |
| 2004 | Simandou | Iron ore | Guinea |
| 2005 | La Granja | Copper | Peru |
| 2005 | Caliwingina | Iron ore | Australia |
| 2007 | Caliwingina North | Iron ore | Australia |
| 2008 | Sulawesi | Nickel | Indonesia |
| 2008 | Mutamba/Chilubane | Titanium | Mozambique |
The Exploration group is organised geographically into regional multicommodity teams. This provides a local presence, an in-depth understanding of the operating environment and in-country proximity to opportunities. At the same time, programmes are prioritised on a global basis so that only the most attractive opportunities are pursued.
At the end of 2008, the Exploration group was actively exploring in 26 countries, and assessing opportunities in a further 15, for a broad range of commodities including bauxite, copper, coking coal, iron ore, industrial minerals, diamonds, nickel and uranium. The number of employees and contractors was 625 and 115 respectively resulting in a full time equivalent headcount of 694.