Company History
Strategy
Management Style
Our Group Companies
WorldwideOperations
European Operations

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CompanyHistory

For all practical purposes, Rio Tinto is a single businessentity with a single board of directors, a unified management, anda combined portfolio of mineral resources which is well balanced byboth geography and commodity.

Rio Tinto was created in December 1995 by the unification of TheRTZ Corporation PLC and CRA Limited through a dual listed companies(DLC) structure. In June 1997, The RTZ Corporation PLC became RioTinto plc and CRA Limited became Rio Tinto Limited. Rio Tinto plc(then The Rio Tinto-Zinc Corporation) was formed in 1962 by themerger of two British companies, The Rio Tinto Company and TheConsolidated Zinc Corporation.

Rio Tinto Limited (then Conzinc Riotinto of Australia) was formedat the same time by the merger of the Australian interests of TheConsolidated Zinc Corporation and The Rio Tinto Company.

The Rio Tinto Company was formed in 1873 to reopen the ancientcopper workings at Rio Tinto in Spain. Two thirds of the Rio TintoCompany's Spanish business were sold in 1954 and the remaininginterest was also subsequently divested. The Consolidated ZincCorporation was incorporated in 1905, initially to treat zincbearing tailings at Broken Hill in New South Wales, Australia whichsoon expanded into mining.

Following the 1962 merger, RTZ developed a number of major projectsincluding Palabora (copper) in South Africa, Rössing (uranium) inNamibia, and Neves Corvo (copper and tin) in Portugal. It also grewthrough acquisitions, including the Borax group in 1968.

Between 1968 and 1985 significant interests in cement, chemicals,oil and gas and manufactured products for the construction andautomotive industries were also developed. However, a major reviewof corporate strategy between 1987 and 1988 led to a series ofdisposals and acquisitions which refocused the company on miningand related activities.

As a result, between 1988 and 1994 non mining businesses were soldas going concerns, and interests in mining acquired. These includedthe 1989 acquisition of the major part of British Petroleum'sinternational minerals businesses, and the 1993 acquisition of theNerco and Cordero coal mining businesses in the US.

In mid 1995 an approximately 12 per cent shareholding inFreeport-McMoRan Copper & Gold was also acquired together witha 40 per cent direct interest in the expansion potential of itsGrasberg copper mine in Indonesia. Since 1962, CRA also grewthrough the development of several important mineral discoveries,including Hamersley (iron ore) in Australia, Bougainville (copper)in Papua New Guinea, Comalco (bauxite, alumina refining andaluminium smelting) in Australia and New Zealand, Argyle (diamonds)and Blair Athol and Tarong (coal) in Australia, and Kelian (gold)and Kaltim Prima (coal) in Indonesia.

Growth also came from acquisitions, including the Australian coalassets of BP minerals in 1989 and a 70.7 per cent interest in Coal& Allied Industries' New South Wales operations.

Following the DLC merger in 1995, exploration, research andtechnology have been refocused on a global basis and the managementstructure reorganised to capture the potential of the merger forthe future.

Rio Tinto has also acquired additional coal interests in SouthAmerica in 1996 and in the US in 1997. Capital expenditure has beenat record levels on Rio Tinto's wide range of projects.

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Strategy

Rio Tinto takes a long term and responsible approach to mining,our proven area of expertise where we have competitiveadvantage.

Our strategy is to focus on large scale, long life and costcompetitive mining operations and to invest throughout their livesso that they maintain their competitive positions.

We always pay attention to the quality of projects not toparticular geographical areas or commodities.

Our operating practices are geared to long term economic value andwe constantly seek efficiency improvements.

Rio Tinto's existing long life operations ensure that presentproduction levels of essential minerals and metals should besustained for 20 or more years.

In addition, we have a portfolio of quality projects, currentlyunder development or appraisal and a clear and focused explorationprogramme to seek out and secure quality new opportunities forfurther profitable expansion.

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Management Style

Rio Tinto aims to be the best mining company in the world:global in outlook, while sensitive and responsive to national andlocal issues; efficient and able to capture the benefits of scale;organised in a way that streamlines decision making; the 'preferreddeveloper' in countries and communities where we wish tooperate.

Our devolved management philosophy and the ability to share bestpractice around the Group are critical to our success.

We encourage local corporate identities for our companies, ourlocal managements have a wide degree of operating autonomy matchedby proper accountability, and we employ local people as much aspossible at all levels in our operations.

Training, development and cross fertilisation around the Grouppromotes the transfer and best use of skills, technology andideas.

Rio Tinto's management structure is based primarily on sixprincipal global products businesses supported by worldwideexploration and technology groups. The six product groups areAluminium, Diamonds, Copper, Energy (coal and uranium), IndustrialMinerals, and Iron Ore.

Rio Tinto's product based organisation is designed to bring asharper focus on the Group's customers and opportunities and toenhance the benefits of the DLC merger.

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Our Group Companies

Rio Tinto's Aluminium group interests are at present almostentirely embraced by Comalco operations in Australia and NewZealand, Euroallumina in Italy and Anglesey Aluminium's smelter inthe UK.

Our Copper group interests include Kennecott Utah Copper (US),Northparkes in Australia and Palabora in South Africa.

Diamonds group embraces Rio Tinto's interests in Argyle Diamonds(Australia), Diavik Diamond Mines (Canada) and Murowa Diamonds(Zimbabwe).

The Energy group is represented in coal by Rio Tinto CoalAustralia, Coal & Allied Industries in Australia and KennecottEnergy's operations in the US. It also encompasses uraniuminterests in Energy Resources of Australia and the Rössing Uraniummine in Namibia.

Rio Tinto's Industrial Minerals businesses include the Borax andLuzenac operations in the US, South America and Europe, RioTinto Iron & Titanium interests in Canada and South Africa, andDampier Salt in Australia.

The Iron Ore group interests are represented by HamersleyIron and Robe River operations in Australia and by the IronOre Company of Canada.

Rio Tinto comprises wholly owned subsidiaries (such as Borax,Comalco, Hamersley Iron, Rio Tinto Coal Australia, Kennecottand Rio Tinto Iron & Titanium), partly owned subsidiaries (Coal& Allied and Palabora) and non-managed, associate companies(Escondida and Freeport) in which public shareholders, othercompanies or governments are partners.

Group headquarters are in London. The Melbourne office is theAustralian representative office of the Rio Tinto Group andprovides support for Australian-based operations, services investorrelations and other external relations requirements and fulfilsAustralian statutory obligations.

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