2010 Annual report

	Rio Tinto interest %	Gross sales revenue(a)			EBITDA(b)			Net earnings(c)
US$ millions		2010	2009	2008	2010	2009	2008	2010	2009	2008
Iron Ore
Hamersley(d)	100.0	16,757	8,874	11,006	11,819	5,190	7,038	7,911	3,283	4,642
Robe River(e)	53.0	4,322	2,186	2,728	3,328	1,422	1,983	1,771	718	1,062
Iron Ore Company of Canada	58.7	2,447	1,006	2,065	1,379	344	1,251	491	112	443
Rio Tinto Brasil	(f)	–	30	176	–	(15)	73	–	(19)	44
Dampier Salt	68.4	442	453	377	79	203	95	29	88	40
Product group operations		23,968	12,549	16,352	16,605	7,144	10,440	10,202	4,182	6,231
Evaluation projects/other		56	49	175	–	(32)	(228)	(13)	(56)	(214)
		24,024	12,598	16,527	16,605	7,112	10,212	10,189	4,126	6,017
Aluminium
Bauxite & Alumina		4,959	3,854	6,660	269	(89)	805	1	(332)	220
Primary Metal		11,828	9,188	14,627	1,976	591	3,010	665	(291)	1,041
Other product group items		517	556	512	120	77	185	42	52	75
Upstream intersegment		(2,290)	(1,606)	(3,546)	(8)	3	23	(6)	2	16
Product group operations		15,014	11,992	18,253	2,357	582	4,023	702	(569)	1,352
Evaluation projects/other		192	46	44	61	12	(87)	71	9	(71)
		15,206	12,038	18,297	2,418	594	3,936	773	(560)	1,281
Copper
Kennecott Utah Copper	100.0	3,327	2,368	2,609	2,178	1,449	1,587	1,342	818	998
Escondida	30.0	2,699	2,039	2,402	1,806	1,327	1,464	1,013	760	854
Grasberg joint venture	(g)	611	991	53	403	706	38	206	385	4
Palabora	57.7	837	635	560	205	123	167	52	17	49
Northparkes	80.0	308	173	124	193	98	(1)	112	53	(12)
Product group operations		7,782	6,206	5,748	4,785	3,703	3,255	2,725	2,033	1,893
Evaluation projects/other		–	–	–	(282)	(229)	(395)	(191)	(155)	(278)
		7,782	6,206	5,748	4,503	3,474	2,860	2,534	1,878	1,615
Energy
Rio Tinto Coal Australia	(h)	4,603	3,870	5,142	1,731	1,799	2,900	940	1,017	1,719
Rössing	68.6	493	376	383	23	83	260	(3)	24	101
Energy Resources of Australia	68.4	533	620	418	118	358	352	22	138	141
Product group operations		5,629	4,866	5,943	1,872	2,240	3,512	959	1,179	1,961
Evaluation projects/other		23	3	41	427	(15)	461	228	(12)	471
		5,652	4,869	5,984	2,299	2,225	3,973	1,187	1,167	2,432
Diamonds & Minerals
Diamonds	(i)	682	450	840	158	(7)	395	70	(68)	137
Rio Tinto Iron and Titanium	(j)	1,331	1,284	1,919	255	209	755	74	(9)	295
Rio Tinto Minerals	(k)	1,015	882	1,061	209	187	183	199	78	86
Product group operations		3,028	2,616	3,820	622	389	1,333	343	1	518
Evaluation projects/other		7	2	–	(16)	820	(41)	(15)	799	(44)
		3,035	2,618	3,820	606	1,209	1,292	328	800	474

Other Operations	(l)	5,734	6,563	9,405	211	467	524	71	71	13
Inter-segment transactions		(1,110)	(856)	(1,716)	(22)	(28)	58	(15)	(28)	25
Other items					(594)	(719)	(378)	(554)	(577)	(391)
Central exploration and evaluation					(48)	(22)	(160)	(52)	5	(133)
Net interest								(474)	(584)	(1,030)
Underlying earnings					25,978	14,312	22,317	13,987	6,298	10,303
Items excluded from Underlying earnings					661	159	1,553	337	(1,426)	(6,627)
Total		60,323	44,036	58,065	26,639	14,471	23,870	14,324	4,872	3,676
Depreciation and amortisation in subsidiaries					(3,437)	(3,427)	(3,475)
Impairment charges					(982)	(1,573)	(8,030)
Depreciation and amortisation in equity accounted units					(522)	(440)	(414)
Taxation and finance items in equity accounted units					(903)	(739)	(718)
Profit before finance items and taxation					20,795	8,292	11,233

1. Refer to notes a) to l) below.

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	Rio Tinto interest %	Capital expenditure(m)			Depreciation & amortisation			Operating assets(n)		Employees
		2010 US$m	2009 US$m	2008  US$m	2010 US$m	2009 US$m	2008  US$m	2010 US$m	2009  US$m	2010 Number	2009 Number	2008 Number
Iron Ore
Hamersley(d)	100.0	1,227	1,337	1,860	630	506	466	8,010	7,530	7,525	6,556	6,321
Robe River(e)	53.0	222	599	683	222	140	111	2,612	2,751	1,489	1,114	1,011
Iron Ore Company of Canada	58.7	253	180	256	108	86	83	847	808	2,179	2,027	2,094
Rio Tinto Brasil	(f)	–	11	146	–	3	14	–	5	–	666	841
Dampier Salt	68.4	14	21	27	23	18	21	196	179	439	405	394
Other		–	–	24	10	10	10	(37)	(10)	767	607	448
		1,716	2,148	2,996	993	763	705	11,628	11,263	12,399	11,375	11,109
Aluminium
Bauxite & Alumina		484	840	1,183	411	379	381	11,318	10,401	4,975	5,533	5,630
Primary Metal		848	866	1,218	1,108	1,133	1,104	25,380	25,483	15,011	15,389	16,405
Other product group items		(4)	(16)	16	44	39	58	1,628	456	1,998	1,997	2,599
		1,328	1,690	2,417	1,563	1,551	1,543	38,326	36,340	21,984	22,919	24,634
Copper
Kennecott Utah Copper	100.0	227	176	316	293	296	246	1,476	1,533	1,977	1,878	1,915
Escondida	30.0	206	213	120	119	104	98	1,468	1,625	1,033	997	960
Grasberg joint venture	(g)	102	79	32	49	47	25	540	378	2,258	2,162	2,185
Palabora	57.7	33	16	40	69	67	57	–	(11)	2,158	2,030	2,116
Northparkes	80.0	53	17	105	32	25	15	403	301	226	186	210
Other	(o)	337	52	191	3	2	1	2,776	1,361	879	359	169
		958	553	804	565	541	442	6,663	5,187	8,531	7,612	7,555
Energy
Rio Tinto Coal Australia	(h)	609	456	449	266	205	194	3,145	2,222	3,186	3,289	3,206
Rössing	68.6	35	24	73	31	27	20	201	324	1,592	1,415	1,307
Energy Resources of Australia	68.4	41	30	144	70	64	51	348	263	523	521	448
		685	510	666	367	296	265	3,694	2,809	5,301	5,225	4,961
Diamonds & Minerals
Diamonds	(i)	186	250	652	70	104	175	1,185	1,293	1,064	1,040	1,401
Rio Tinto Iron & Titanium	(j)	91	247	563	145	129	118	2,708	2,626	3,528	4,121	4,105
Rio Tinto Minerals	(k)	23	22	63	53	57	68	682	693	2,340	2,214	2,580
Other		–	–	5	–	–	–	5	–	30	–	103
		300	519	1,283	268	290	361	4,580	4,612	6,962	7,375	8,189
Other Operations	(l)	237	404	662	89	315	482	264	1,925	11,898	16,369	17,315
Net (liabilities)/assets held for sale	(p)	–	–	–	–	–	–	(101)	3,462	6,180	27,732	28,386
Other items		75	54	151	114	111	91	(2,437)	(2,906)	3,639	3,387	3,636
Less: equity accounted units		(746)	(522)	(491)	(522)	(440)	(414)
Total		4,553	5,356	8,488	3,437	3,427	3,475	62,617	62,692	76,894	101,994	105,785
Less: Net debt								(4,284)	(18,861)
Total Rio Tinto shareholders’ equity								58,333	43,831

1. Refer to notes d) to p) below.

Business units have been classified according to the Group’s management structure. Generally, business units are allocated to product groups based on their primary product. The Energy group includes both coal and uranium businesses. The Diamonds & Minerals product group includes businesses with products such as borates, talc and titanium dioxide feedstock together with diamonds operations. The Copper group includes certain gold operations in addition to copper. The Aluminium group excludes Alcan Engineered Products which is included in “Other Operations” and Alcan Packaging which is included in “Net assets held for sale”.

Aluminium is now presented based on commercial activities splitting it between Bauxite & Alumina, Primary Metal and Other product group items. 2009 comparative information has been restated accordingly.

1. (a) Gross sales revenue includes 100 per cent of subsidiaries’ sales revenue and the Group’s share of the sales revenue of equity accounted units (after adjusting for sales to subsidiaries).
2. (b) EBITDA of subsidiaries and the Group’s share of EBITDA relating to equity accounted units represent profit before: tax, net finance items, depreciation and amortisation. Underlying EBITDA excludes the same items that are excluded from Underlying earnings.
3. (c)Net earnings represent profit after tax for the year attributable to the owners of the Rio Tinto Group. Earnings of subsidiaries and equity accounted units are stated before finance items but after the amortisation of discount related to provisions. Earnings attributed to business units do not include amounts that are excluded in arriving at Underlying earnings.
4. (d) Includes Rio Tinto’s interests in Hamersley (100 per cent) and HIsmelt^® (60 per cent).
5. (e) The Group holds 65 per cent of Robe River Iron Associates, of which 30 per cent is held through a 60 per cent owned subsidiary. The Group’s net interest is, therefore, 53 per cent, net of amounts attributable to outside equity shareholders.
6. (f) Rio Tinto completed the sale of its 100 per cent interest in the Corumbá mine, effective 18 September 2009.
7. (g) Under the terms of a joint venture agreement, Rio Tinto is entitled to 40 per cent of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998.
8. (h) Includes Rio Tinto’s 75.7 per cent interest in Coal and Allied, which is managed by Rio Tinto Coal Australia, a 100 per cent subsidiary of Rio Tinto. Coal and Allied owns a 40 per cent interest in Bengalla and an 80 per cent interest in Mount Thorley, giving the Group a beneficial interest in those companies of 30.3 per cent and 60.6 per cent, respectively.
9. (i) Diamonds includes Rio Tinto’s interests in Argyle (100 per cent), Diavik (60 per cent) and Murowa (77.8 per cent).
10. (j) Includes Rio Tinto’s interests in Rio Tinto Fer et Titane (RTFT) (100 per cent), QMM (80 per cent) and RBM (attributable interest of 37 per cent).
11. (k) Includes Rio Tinto’s interests in Rio Tinto Borax (100 per cent) and Luzenac Talc (100 per cent).
12. (l) Includes Rio Tinto’s interests in its US coal operations formerly reported under Rio Tinto Energy America.
13. (m) Capital expenditure comprises the net cash outflow on purchases less disposals of property, plant and equipment, capitalised evaluation costs and purchases less disposals of other intangible assets. The details provided include 100 per cent of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of equity accounted units. Amounts relating to equity accounted units not specifically funded by Rio Tinto are deducted before arriving at total capital expenditure for the Group.
14. (n) Operating assets of subsidiaries comprise net assets excluding post retirement assets and liabilities, net of tax, and are before deducting net debt. Operating assets are less non-controlling interests, which are calculated by reference to the net assets of the relevant companies (ie net of such companies’ debt).
15. (o) Includes Rio Tinto’s interests in Oyu Tolgoi LLC which are held indirectly through its investment in Ivanhoe and were recognised at a provisional fair value on 15 December 2010. The Group’s remaining interest in the assets of Ivanhoe Mines that does not relate to Oyu Tolgoi LLC continues to be recognised at historic cost.
16. (p) Net (liabilities)/assets held for sale at 31 December 2010 relate to Alcan Engineered Products (AEP) excluding the Cable Division; at 31 December 2009 these comprised Alcan Packaging and other assets held for sale. In 2009 and 2008, AEP was included within Other Operations.

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