An important part of the land management process involves the planning and financial provision for closure. Businesses will develop closure strategies which are reviewed every five years and a detailed decommissioning plan within two to five years of ceasing production.

When operations are closed, the outstanding land that has been disturbed by the mining operation is rehabilitated and decommissioned, in consultation with our neighbours and in accordance with best environmental practice, relevant laws and regulations.

In 2003, we worked to develop a closure standard to ensure that Rio Tinto operations undertake effective ongoing planning and implementation for closure to minimise adverse impacts on the socio economic, cultural and natural environment and make a positive contribution to community life in surrounding areas.

Costs to remediate environmental disturbance from the development and operation of a mine, as well as employee, community and other costs incurred as a consequence of closure are referred to as mine closure, restoration and other environmental costs. These costs were US$48 million in 2003. The increase from 2002 is largely due to costs associated with the closure of Kelian Equatorial Mining and the treatment of contaminated groundwater in the vicinity of KUC's Bingham Canyon mine.

Rio Tinto's total provision for closure, restoration and other environmental costs was US$2.1 billion at the end of 2003. The increase from last year is largely due to a number of large businesses updating their closure plans and the effect of changes to exchange rates and inflation.

The Kelian food security programme is a case study on the mitigation of adverse impacts of mine closure on the adjacent community. A baseline study identified potential food shortages impacting 28 surrounding local villages. In response, KEM (through the then Rio Tinto Foundation) embarked on a programme of working with the community to put into cultivation 420 hectares of land. The programme provides lime, fertilizer, tractor hours and technical support that increases yield by up to 800%. This not only improves the agricultural output but also negates the need for slash and burn agriculture, thus providing both social and environmental benefits.