Rio Tinto requires its operations to ensure the efficient use of water and to prevent pollution. Based on this, our objectives are to:

• Conserve water resources and minimise water taken from the environment, particularly in areas where water is scarce;
• Prevent contamination of surface and groundwaters;
• Develop good water management practices across all operations, including maximising the use of poor quality, impounded and recycled water; and
• Transfer good practices within the Group to improve our overall environmental performance.

During 2003, a working group comprising business and corporate members, developed a Rio Tinto water strategy that will help focus activities in 2004. The aim is to develop a more responsible approach to managing freshwater, in order to ensure Rio Tinto's continued access to freshwater resources. The strategy focuses on filling gaps in our current water management approach and generating momentum across the Group in improving water performance. The aim is to:

• Improve water efficiency and reduce operational costs;
• Develop a more integrated approach to water management with a longer term perspective;
• Work closely with stakeholders on water issues; and
• Improve our reputation in relation to managing water resources.

The strategy will build on the substantial amount of work already undertaken in Rio Tinto, for example implementation of the new water standard, the five year water target, and Rio Tinto's water principles. There are many good examples of water management throughout the Group. The water strategy will aim to provide a framework for long term planning and to embed good water management more deeply in operational practices.

To help us understand how water is being used and managed, we measure and analyse water use according to water withdrawn from the environment, used and returned to the environment. Understanding better how we can use poorer quality water in our process instead of using freshwater provides a focus for improving our performance and reducing competition with other users.

Where water is returned to the environment, it is potentially available for other uses. Rio Tinto seeks to maintain the quality of the receiving environment by minimising the discharge of contaminants. Water discharges from our operations may include metals, such as arsenic, cadmium, copper, lead, mercury and zinc present in waste rock and tailings, as well as cyanide, which is used in the extraction of gold and can also be released in minor amounts in the processing of aluminium.