Transcript Slide 1

Strengthening partnership
for improved outcomes
Dr Nik Senapati – MD - Rio Tinto India
Who we are
• We find, mine and process diverse metal and mineral resources
in a safe, environmentally responsible and community aware
manner
• Wherever we operate, Health, Safety, Environment, Communities
and sound Corporate Governance are our core values Sustainable Development is at the heart of our business
• A “dual listed company” with separate shareholder registers in the
UK (Rio Tinto plc) and Australia (Rio Tinto Limited) with a single
board and management structure
• We employ approximately 102,000 people*
• Committed to working with governments, communities and key
stakeholders to ensure a fair share of benefits and opportunities
* 2009 Annual report
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Unrelenting focus on safety
• Safety is a core value
• We are committed to an incident and injury free workplace
• Our goal is zero harm
• We believe all injuries are preventable
• Our aim is for everyone to go home safe and healthy at the end
of each shift, each day
• Our environment is one where all employees and contractors
have the knowledge, skills and desire to work safely
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Continuing improvement in safety performance
Our goal is Zero Harm
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Rio Tinto’s strategy aims to maximise long
term return to shareholders
• Invest in large, long life, low
cost assets
• Driven not by choice of
commodity but by the quality
of each opportunity
• Long term sustainable
development at the heart of
everything the Group does
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Our diverse products
Bauxite, alumina
and aluminium
Gold and silver
Talc
Iron ore
Gypsum
Coal
Borates
Titanium dioxide
Copper
Molybdenum
Uranium
Diamonds
Salt
Other products,
including
nickel
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Rio Tinto
a broad geographical spread
Key
Mines and mining projects
Smelters, refineries, power
facilities and processing plants
remote from mine
Aluminium
Copper
Diamonds
Energy
Iron ore
Minerals
Europe
North
America
Asia
Africa
South
America
Australasia
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Rio Tinto is the third largest listed mining
company by market capitalisation
Source – Rio Tinto 2010 Chart Book
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Strength in diversity
Source – Rio Tinto 2010 Chart Book
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Rio Tinto has enjoyed strong earnings
growth in the past 5 years
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Rio Tinto India Footprint Today
Rio Tinto India Corporate*
Delhi
Kolkata
Bunder Diamonds Project
Rio Tinto Diamonds
Alcan Intl Network
*Rio Tinto India Corporate
Comprises –
Rio Tinto Coal Australia
Rio Tinto Procurement
Business Development
Finance & Admin support
Mumbai
Orissa JV – Iron Ore
ECL**
Bangalore
Rio Tinto Exploration
Chennai
**ECL – Technology sales to
Aluminium smelting industry
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The Way We Work
The way we work is our statement of business
practice and reaffirms our commitment to corporate
responsibility
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Sustainable development leader
•
Central to our business strategy
•
Careful management of social and environmental
issues
•
Sustainable development remains important in
economic downturn
•
Publicly report our performance through a number of
channels
•
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Rio Tinto is a member of the FTSE4Good
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Founding member of the Dow Jones sustainability world index,
the World Business Council for sustainable development, the
International Council on Metals and Mining (ICMM) and the
Sustainable Mining Initiative in India.
Sponsor of global Rio Tinto Prize for Sustainability
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Forest Stewardship Council
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Aga Khan Foundation
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Barefoot College
–
Utthan
–
Trees Water & People
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Elements of a business case
Maintaining Access to Land and Resources is a key
drive in the Biodiversity Strategy Business case
• Access to land, sea and related natural resources (directly,
or through supply chains)
• Legal and social (functional) license to operate
• Access to capital and insurance
• Access to markets for products (old and new)
• Access to human capital
• A seat at Policy development table
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Our goal of net positive impact (NPI)
Rio Tinto’s goal is to have a net positive impact on biodiversity.
This means minimising
the impacts of our
business and
contributing to
biodiversity
conservation to ensure
that a region ultimately
benefits as a result of
our presence.
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Role of collaboration in achieving NPI
 Capacity to deliver
• Rio lacked technical and strategic
capacity in Biodiversity policy issues
• partner organisation provided this
 Setting Expectations
• NGOs provide a benchmark of
societal expectations
 Mutual Vision
• NGOs shared a common vision with
RT to advance biodiversity
performance at operations
 Business relevance
• Engagement provides positive
influence on our core business
activities
 Access to Broader Networks
• Enables the Rio Tinto to tap into
networks
Our Biodiversity Partners
IUCN
BirdLife International
Conservation International
Fauna & Flora International
Royal Botanic Gardens Kew
Earthwatch
Various National
Relationships
Birds Australia
Australian Museum
Audubon US
Global Initiatives
BBOP
WBCSD EVI
BSR ES WG
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The Mitigation Hierarchy
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Tools for the Job
A number of tools have been developed to help our operations identify,
plan for and manage biodiversity programmes based on the needs of
business and the biodiversity values of the regions in which they operate.
The tools include:
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A Group wide Biodiversity Values Assessment profile
•
A Biodiversity Action Planning (BAP) tool
•
Quality Hectares biodiversity metric
•
An offset design tool
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Biodiversity Values Assessment
Programme
•
A group wide survey to assess the biodiversity profile of the Rio Tinto
group.
•
Assessment is independent of management intervention.
•
Operations are ranked into ‘very high’, ‘high’, ‘moderate’ and ‘low’
biodiversity value groupings.
•
Key biodiversity broad issues that are examined as part of this
assessment are:
• Interaction with protected areas
• Interaction with sensitive habitats
• Species of conservation value
• Site specific context
• Conservation maturity
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Biodiversity Action Planning
To achieve our NPI goal, an operation
must be able to:
• Identify the important biological
values on and off site at the species,
habitat and ecosystem service level.
• Understand what impacts mining
activities and infrastructure have on
these features.
• Develop a plan to mitigate the impact
(considering avoidance, minimisation,
rehabilitation, offsets and additional
conservation actions).
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Biodiversity Offsets: A critical tool in NPI
“Conservation actions intended to compensate for the residual,
unavoidable harm to biodiversity caused by development projects, so
as to ensure no net loss of biodiversity”
•
pursued once all possible efforts to avoid and minimise harm to
biodiversity have been under taken.
•
not acceptable when unique, ‘un-tradable’ values are at stake
•
size and complexity will vary & must be comensurate with biodiversity
loss
•
where possible ‘like for like’ but not limited to ‘like for like’
•
stakeholder engagement critical in identification, development and
implementation
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Path Forward
•
Internal Biodiversity Target
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Continued refinement of biodiversity metrics
– quality hectares
– Biodiversity values
•
Investigation of value of Biodiversity
– IUCN Madagascar study
– TEEB
•
Biodiversity offset methodologies
– Aggregated offsets
– Offset packaging (carbon and other ecosystem services)
– Biobanking
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Bunder Project in Bundelkhand
Bundelkhand
Rio Tinto in the area since 2002
Discovery of pipes in 2004
Bunder camp established in 2004
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Bunder Project Location
Bunder community 15 villages. 15K population.
Indirect >100K population.
>90% of PL in Forest.
Bukswaha Town. 12K population
Low Literacy levels (64 %)
Bg0131
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Communities Policy
We set out to build enduring relationships with our
neighbours that are characterised by mutual respect,
active participation and long term commitment.
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Our key Objectives
Contribute to local economy (direct and indirect)
Raise Community Awareness
Promoting Primary Education (MDG #2)
Improvement in mother and child health and nutrition (MDG #4 & 5)
HIV/AIDS Awareness (MDG #6)
Water Resource Management (MDG # 7)
Enabling local livelihood creation
Promoting agriculture and livestock development programmes
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Our Core Strategies
Forming strategic partnerships with government, multilaterals, local
bodies and communities
Building and strengthening local Institutions, creating sustainable
networks and convergence
To align all our interventions and activities to the achievement of MDGs
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Studies
Core characteristics studies since 2002
Base line community studies on 5 core villages
Artisanal mining studies
Security baseline studies
Baseline preliminary regional ground water assessment
Heritage map
Baseline forest studies – flora & fauna
Bunder local skills profile
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Baseline Study: High Significance issues
Water scarcity – scanty rainfall
Poor infrastructure and job opportunities
Rain fed agriculture (sub-optimal and at a
subsistence level)
Livestock – 2nd major source of livelihood
Landownership and use - adverse impact
Forest based livelihoods (no value addition)
Caste & Gender issues
Poverty & indebtedness
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Our Partnership with UNICEF
Primarily focus in Child Education and Mother and Child Nutrition
(MDG # 4 and 5)
Benchmark survey done
Resources identified
Programmes designed
Implementation
Indices measured
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Mining in India
• India produces 86 minerals
– 4 Fuel
– 10 Metallic
– 46 Non Metallic
– 3 Atomic
– 23 Minor minerals
• Annual tonnage mined – 900 million tonnes
• Assuming a strip ratio of 6:1 it means 5400 million tonnes are
moved annually
• Inevitably there will be an environmental and social impact
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Indian mining companies have joined hands to
form the Sustainable Mining Initiative
•
NMDC
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ACC
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Essel Mining
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Sesa Goa
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Hindustan Zinc Ltd
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Tata Steel
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MSPL
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Rungta Mining
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Nalco
•
Rio Tinto
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Sustainable Mining Initiative – India
The Sustainable Mining Principles
Ethical Practices & Corporate governance
1.
Integrate sustainable development considerations within the
corporate decision-making process.
2.
Conduct businesses with ethical practices and sound systems
of corporate governance.
Environment, Health and Safety
3.
Implement risk management strategies based on valid data and
sound science.
4.
Seek continual improvement in health and safety performance.
5.
Seek continual improvement of our environmental performance
based on a precautionary approach.
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Sustainable Mining Initiative – India
The Sustainable Mining Principles
Protecting Human Rights
6.
Uphold fundamental human rights and respect cultures,
customs and values in dealings with employees and others who
are affected by our activities.
Biodiversity Management
7.
Contribute to conservation of biodiversity and integrated
approaches to land use planning and management.
Responsible Use of Mined Out Resources
8.
Facilitate and encourage responsible, use, reuse and recovery
of mined materials including associated natural resources.
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Sustainable Mining Initiative – India
The Sustainable Mining Principles
Community Involvement & Development
9.
Contribute to the social, economic and institutional
development of the communities in which we operate.
10.
Implement effective and transparent engagement,
communication and verifiable reporting arrangements with our
stakeholders.
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Thank you
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