Rio Tinto | Minerals and Metals for the world

Another important factor is that talented people, when they choose which company to work for, or stay with, will be attracted to one which has a good environmental and social record and whose values are consistent with their own. When it comes to investor choice, Rio Tinto finds itself in a rather different position nowadays. Not too long ago, mining accounted for less than one per cent of the London stock exchange and if you wanted to invest in mining, Rio Tinto was really the only game in town. Since then, Billiton and Anglo-American have both transferred their headquarters and their primary listing from South Africa to London, with the result that the world's three biggest diversified mining companies are now all based in London and mining accounts for three per cent of the market.

What does this mean for Rio Tinto? "We welcome it," Elliott responds, "because investors are now paying more attention to the mining sector and are better informed about it. We are not afraid of competition. It keeps us sharp. It keeps us on our toes.

"But truly it is wrong to focus too much on the London and Australian markets. We have been broadening our investor base in the US and mainland Europe. As a result, our percentage of UK shareholders has actually fallen (from 67 per cent in 1997 to 57 per cent today). At present, about 15 per cent of our shares are held in North America and nine per cent in Europe, with Australia holding steady on 17 per cent."

In Elliott's first few months in the job, what messages has he been picking up from investors about Rio Tinto's performance?



Another important factor is that talented people, when they choose which company to work for, or stay with, will be attracted to one which has a good environmental and social record and whose values are consistent with their own. When it comes to investor choice, Rio Tinto finds itself in a rather different position nowadays. Not too long ago, mining accounted for less than one per cent of the London stock exchange and if you wanted to invest in mining, Rio Tinto was really the only game in town. Since then, Billiton and Anglo-American have both transferred their headquarters and their primary listing from South Africa to London, with the result that the world's three biggest diversified mining companies are now all based in London and mining accounts for three per cent of the market. What does this mean for Rio Tinto? "We welcome it," Elliott responds, "because investors are now paying more attention to the mining sector and are better informed about it. We are not afraid of competition. It keeps us sharp. It keeps us on our toes. "But truly it is wrong to focus too much on the London and Australian markets. We have been broadening our investor base in the US and mainland Europe. As a result, our percentage of UK shareholders has actually fallen (from 67 per cent in 1997 to 57 per cent today). At present, about 15 per cent of our shares are held in North America and nine per cent in Europe, with Australia holding steady on 17 per cent." In Elliott's first few months in the job, what messages has he been picking up from investors about Rio Tinto's performance?
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Review is published by Rio Tinto, 6 St James' Square, London SW1Y 4LD, England Telephone +44 (0)20 7930 2399 Editor: Cherry DeGeer