- Annual Review 2006
- Overview
- Chairman's message
- Interview with the chief executive
- Selected financial data
- Features
- Review of operations
- Financial information by business unit
- Summary financial statements
- Australian Corporations Act - summary of ASIC relief
- Independent auditors' statement
- Management overview
- Directors' report
- Remuneration report
- Corporate governance
- Audit committee charter
- Shareholder information
- Useful addresses
- Investor calendar
- Publications
Review of operations
Aluminium group
Rio Tinto Aluminium is a wholly owned, integrated aluminium subsidiary with operations in Australia, New Zealand and the United Kingdom. The Comalco name was replaced by Rio Tinto Aluminium in November 2006 to take advantage of Rio Tinto's global name and reputation.
Copper group
Rio Tinto's Copper group comprises Kennecott Utah Copper (KUC) in the US and interests in the copper mines of Escondida in Chile, Grasberg in Indonesia, Northparkes in Australia, Palabora in South Africa, and the Resolution Copper project in the US. It has management responsibility for Kennecott Minerals Company in the US. The group also produces gold and molybdenum as significant coproducts.
Diamonds group
The Diamonds group comprises the Diavik Diamonds (Rio Tinto: 60 per cent) mine in Canada, the wholly owned Argyle mine in Australia, the Murowa (Rio Tinto: 78 per cent) mine in Zimbabwe, which started production in 2004, and diamond sales and representative offices in Belgium and India.
Energy group
The Rio Tinto Energy group's portfolio comprises thermal coal and coking coal operations, and uranium.
Industrial Minerals group
Rio Tinto's Industrial Minerals group produces borates, talc, industrial salt and titanium dioxide feedstock. It is a global leader in the supply and science of these products. Beginning in 2006, Rio Tinto Borax, Luzenac Talc and Dampier Salt combined their management and systems to form a new organisation, Rio Tinto Minerals. Together with Rio Tinto Iron and Titanium, the two now form the Industrial Minerals product group.
Iron Ore group
The Rio Tinto Iron Ore (RTIO) group's contribution to 2006 underlying earnings was US$2,279 million, US$557million higher than in 2005. Demand for iron ore remained extremely strong, with China's imports up by 18 per cent on the previous year.
Sustainable development
Rio Tinto is a long term, capital intensive business with mining assets lasting typically 30 years or more, often in remote locations. This means we need economic and social stability so that we can deliver economic returns to our host governments, local communities and our shareholders. We therefore have committed ourselves to the principles of sustainable development.
Exploration
Expenditure on exploration in 2006 was US$345 million, an increase of US$81 million over 2005, reflecting an increase in contractor costs, the high quality of projects in the Exploration pipeline and the acceleration of evaluation on significant projects.
Operational and Technical Excellence
The Operational and Technical Excellence (OTX) group, which includes Health, Safety and Environment, provides a central platform to support Rio Tinto's operations, future growth and profitability. It provides a world class technology based service to the product groups and their businesses and advises executive management.