Performance
Energy use
Rio Tinto both consumes energy in its operations and produces it. Our smelting and mineral processing operations are energy intensive and depend on hydroelectricity, 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.
During 2008 several operations announced investments in lower emissions and energy efficient technologies. Rio Tinto Alcan continues to invest in clean hydropower, Rio Tinto Iron Ore announced an upgrade of its Pilbara power station using more efficient technology, and Kennecott Utah Copper is constructing and Richards Bay Minerals is developing co-generation plants.
For our large new projects Rio Tinto has been collaborating with the Rocky Mountain Institute to explore various alternative energy sources. We are also currently developing step change technologies for several of our products, including the drained cathode cell for aluminium production. This has the potential to significantly reduce the amount of energy required to make aluminium metal.
Our energy use has more than doubled over the last year mostly related to the inclusion of the former Alcan operations. Importantly, this acquisition has greatly contributed to Rio Tinto's use of greenhouse friendly hydro and nuclear power which has increased from 48 per cent to 67 per cent of our electricity use. A number of new projects and technology upgrades that are either underway or planned in Canada will ensure that we use electricity available from these hydro sources with greater efficiency.
The combined Group's energy efficiency performance decreased by 1.7 per cent from 2007. Performance decreased during 2008 at both Rio Tinto and former Alcan operations.
We did not meet our 2003 to 2008 energy use target, with a 2.2 per cent increase in energy use per tonne of product (excluding former Alcan operations), compared to a five per cent reduction target.
During the target period, production increases at many operations to meet market requirements resulted in energy efficiency improvements as plant and equipment utilisation improved. However, more effort was required to access and transport ore at some open cut coal and iron ore mines. Lower grade ore was processed at some operations and mine expansions and development activities further increased our energy use per tonne of product.
