1 Water use and discharge planning conforms to the water use requirements of other users within the catchment.

The catchment is the basic unit for water resource management. Understanding the requirements of all users is fundamental to water resource sustainability. Rio Tinto recognises the need to maintain the quantity and quality of water downstream of its operations as others may rely on these. Partnerships between government, landowners and industry are a means for achieving mutual benefits in the supply and allocation of scarce water resources.

2 Policy for water management is communicated by senior management through formalised objectives and targets.

Rio Tinto's environmental policy establishes the minimum requirement for businesses to ensure the efficient use of water and to prevent pollution. Businesses must have detailed objectives for water management that are specific to the local situation. Progress against set targets is needed to measure improvement in performance.

3 Water use, storage and discharge are defined in a site water balance that is updated to reflect changes to operational requirements.

A site water balance is the central component of a water management system. Process requirements are key to determining overall operational water needs. Changes to water quality and quantity resulting from process redesign must be reflected in the water balance. Regular review must be undertaken to reconcile inputs, uses and outputs.

4 Water management practices include the monitoring of supply and discharge.

Procedures for water management will be a component of the businesses' HSE management system. Monitoring will be undertaken to update water balance data and for meeting reporting requirements. Overall accountability for meeting procedural requirements is to be allocated to a senior officer at each operation.

5 Fresh water use is to be reduced through process improvement, recycling of wastewater and, where practicable, by the use of poorer quality water.

Fresh water is a limited resource in most parts of the world. Rio Tinto promotes the efficient use of fresh water and seeks opportunities to use alternative sources. Businesses must view resource conservation as a means of improving their financial, competitive and strategic positions.

6 Water abstraction, storage or discharge does not irreversibly reduce the health of wildlife or habitats.

The contamination of land, surface water bodies and ground water must be prevented. Environmental impact assessment for developments and modifications must be used to determine the potential for impact. Monitoring must be undertaken to quantify the environmental impact during operations. The creation of new habitat areas may need to be integrated into mine planning and closure planning strategies.

7 Water storage, treatment and discharge facilities are designed, constructed and managed based on best available practices applicable to local operating conditions.

Potential for the failure of storage, treatment and discharge facilities must be identified through risk assessment. Facilities must be constructed according to approved designs that meet regulatory requirements and identified risks. The operation of these facilities must conform to the original design criteria. Appropriately qualified engineers must inspect storage facilities for security at least every two years.