Company History
Company History
Strategy
Management Style
Our Group Companies
Worldwide Operations
European Operations
Company History
For all practical purposes, Rio Tinto is a single business entity with a single board of directors, a unified management, and a combined portfolio of mineral resources which is well balanced by both geography and commodity.
Rio Tinto was created in December 1995 by the unification of The RTZ Corporation PLC and CRA Limited through a dual listed companies (DLC) structure. In June 1997, The RTZ Corporation PLC became Rio Tinto plc and CRA Limited became Rio Tinto Limited. Rio Tinto plc (then The Rio Tinto-Zinc Corporation) was formed in 1962 by the merger of two British companies, The Rio Tinto Company and The Consolidated Zinc Corporation.
Rio Tinto Limited (then Conzinc Riotinto of Australia) was formed at the same time by the merger of the Australian interests of The Consolidated Zinc Corporation and The Rio Tinto Company.
The Rio Tinto Company was formed in 1873 to reopen the ancient copper workings at Rio Tinto in Spain. Two thirds of the Rio Tinto Company's Spanish business were sold in 1954 and the remaining interest was also subsequently divested. The Consolidated Zinc Corporation was incorporated in 1905, initially to treat zinc bearing tailings at Broken Hill in New South Wales, Australia which soon expanded into mining.
Following the 1962 merger, RTZ developed a number of major projects including Palabora (copper) in South Africa, Rössing (uranium) in Namibia, and Neves Corvo (copper and tin) in Portugal. It also grew through 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 and automotive industries were also developed. However, a major review of corporate strategy between 1987 and 1988 led to a series of disposals and acquisitions which refocused the company on mining and related activities.
As a result, between 1988 and 1994 non mining businesses were sold as going concerns, and interests in mining acquired. These included the 1989 acquisition of the major part of British Petroleum's international minerals businesses, and the 1993 acquisition of the Nerco and Cordero coal mining businesses in the US.
In mid 1995 an approximately 12 per cent shareholding in Freeport-McMoRan Copper & Gold was also acquired together with a 40 per cent direct interest in the expansion potential of its Grasberg copper mine in Indonesia. Since 1962, CRA also grew through the development of several important mineral discoveries, including Hamersley (iron ore) in Australia, Bougainville (copper) in Papua New Guinea, Comalco (bauxite, alumina refining and aluminium 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 coal assets 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 and technology have been refocused on a global basis and the management structure reorganised to capture the potential of the merger for the future.
Rio Tinto has also acquired additional coal interests in South America in 1996 and in the US in 1997. Capital expenditure has been at 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 competitive advantage.
Our strategy is to focus on large scale, long life and cost competitive mining operations and to invest throughout their lives so that they maintain their competitive positions.
We always pay attention to the quality of projects not to particular geographical areas or commodities.
Our operating practices are geared to long term economic value and we constantly seek efficiency improvements.
Rio Tinto's existing long life operations ensure that present production levels of essential minerals and metals should be sustained for 20 or more years.
In addition, we have a portfolio of quality projects, currently under development or appraisal and a clear and focused exploration programme to seek out and secure quality new opportunities for further 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 and local issues; efficient and able to capture the benefits of scale; organised in a way that streamlines decision making; the 'preferred developer' in countries and communities where we wish to operate.
Our devolved management philosophy and the ability to share best practice around the Group are critical to our success.
We encourage local corporate identities for our companies, our local managements have a wide degree of operating autonomy matched by proper accountability, and we employ local people as much as possible at all levels in our operations.
Training, development and cross fertilisation around the Group promotes the transfer and best use of skills, technology and ideas.
Rio Tinto's management structure is based primarily on six principal global products businesses supported by worldwide exploration and technology groups. The six product groups are Aluminium, Diamonds, Copper, Energy (coal and uranium), Industrial Minerals, and Iron Ore.
Rio Tinto's product based organisation is designed to bring a sharper focus on the Group's customers and opportunities and to enhance the benefits of the DLC merger.
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Our Group Companies
Rio Tinto's Aluminium group interests are at present almost entirely embraced by Comalco operations in Australia and New Zealand, Euroallumina in Italy and Anglesey Aluminium's smelter in the 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 Coal Australia, Coal & Allied Industries in Australia and Kennecott Energy's operations in the US. It also encompasses uranium interests in Energy Resources of Australia and the Rössing Uranium mine in Namibia.
Rio Tinto's Industrial Minerals businesses include the Borax and Luzenac operations in the US, South America and Europe, Rio Tinto Iron & Titanium interests in Canada and South Africa, and Dampier Salt in Australia.
The Iron Ore group interests are represented by Hamersley Iron and Robe River operations in Australia and by the Iron Ore Company of Canada.
Rio Tinto comprises wholly owned subsidiaries (such as Borax, Comalco, Hamersley Iron, Rio Tinto Coal Australia, Kennecott and Rio Tinto Iron & Titanium), partly owned subsidiaries (Coal & Allied and Palabora) and non-managed, associate companies (Escondida and Freeport) in which public shareholders, other companies or governments are partners.
Group headquarters are in London. The Melbourne office is the Australian representative office of the Rio Tinto Group and provides support for Australian-based operations, services investor relations and other external relations requirements and fulfils Australian statutory obligations.
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