Performance
Non managed operations
The Rio Tinto Group consists of wholly and partly owned subsidiaries and jointly controlled assets, as well as other entities and associated companies, some of which we do not manage.
Although Rio Tinto may not be directly involved in managing these operations, we remain closely engaged through membership of the boards of directors and of technical committees. We encourage them to adopt our policies and standards in community relations, human rights, environmental stewardship, health and safety.
Examples of these non managed operations include the Escondida copper mine in Chile and the Grasberg copper-gold mine in Indonesia.
Escondida, Chile
Rio Tinto has a 30 per cent interest in the Escondida copper mine in Chile, which is managed by BHP Billiton. Our seat on the mine's Owners' Council allows us regular input on strategic and policy matters.
Rio Tinto also played a part in helping to establish the Escondida Foundation. The Foundation is funded by about one per cent of the mine's pre-tax profits and is the vehicle through which Escondida fulfils its social responsibilities.
Grasberg, Indonesia
The Grasberg copper-gold mine in Indonesia is owned and operated by Freeport-McMoRan Copper & Gold. Rio Tinto has a 40 per cent joint venture interest in Grasberg's 1995 mine expansion and is represented on the joint venture's operating committee.
As well as providing substantial economic benefits to the state, Freeport Indonesia is the largest private employer in Papua and one of the largest in Indonesia.
Both Rio Tinto and Freeport-McMoRan support the Voluntary Principles on Security and Human Rights and continue to work together to ensure practice is consistent with these principles.
To meet the mine's social obligations to local communities, at least one per cent of the mine's net sales are committed to support village based programmes and cumulative funding is more than US$20 million. In addition, two trust funds were established in 2001 in recognition of the traditional land rights of the local Amungme and Komoro tribes.
The mine continues to refine its strategic management of its tailings discharge, including understanding revegetation and long term closure options.
