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.

At 31 December 2006, Industrial Minerals accounted for 13 per cent of the Group's operating assets and contributed approximately ten per cent of Rio Tinto's sales revenue in 2006. Its contribution to 2006 underlying earnings was US$243 million, 30 per cent higher than in 2005. Approximately 7,000 people were employed in 2006.

Rio Tinto Minerals' earnings were 54 per cent higher, at US$91 million. Despite upward cost pressure caused by cyclones and labour markets in Western Australia, earnings benefited from the absence in 2006 of the 2005 restructuring provision and from modest revenue increases.

Rio Tinto Iron & Titanium's earnings, at US$152 million, were 19 per cent higher than in 2005. Good price performance across all products, combined with increased volumes, strict cost control at Richards Bay Minerals and beneficial Canadian tax changes, more than offset increased costs in the Canadian operations and the effect of the strong Canadian dollar.

Related feature

Reorganising for better results