Sustainability Summit: Asia 2006
Sustainability Summit: Asia 2006 New Delhi 19/12/06 Sustainable Mining – The Rio Tinto Approach
Nik Senapati - Regional Vice President – Rio Tinto India
Introduction I want to thank the Confederation of Indian Industry and Development Alternatives for organising this Summit. It is a pleasure to address such a distinguished gathering; especially as the subject of this Summit – sustainable mining – is a core value for the Rio Tinto Group. In the next 15 minutes, I will cover these four points.
Page 1 of 10
2
Rio Tinto To start, let me briefly describe the Rio Tinto Group. Rio Tinto is a diversified global mining business that traces its origins back to an ancient Spanish copper mine purchased by a group of London investors in 1873, and a company formed in 1905 to treat zinc bearing tailings at Broken Hill in Australia. These two related companies merged in 1995 to form the Rio Tinto Group, listed in the UK, Australia and with ADRs in New York.
Today the Group is made up of 30 businesses that control about 80 operations in around 40 countries. Those businesses include open pit and underground mines, mills, refineries and smelters. There are also global exploration and research arms.
Rio Tinto has a market capitalisation of around US$75 billion. Its diverse commodity portfolio includes: coal, iron ore, aluminium, copper, diamonds, gold, uranium and mineral sands. The Group specialises in large, long-life and cost-competitive operations.
3
Rio Tinto in India Rio Tinto has been in India since the mid 1980s and currently has three main offices here. Rio Tinto India has its representative office in Delhi. In this office Rio Tinto Iron Ore (RTIO) manages iron ore opportunities in India including the joint venture to develop an iron ore project with the Orissa Mining Corporation. Also based in the Delhi office is Rio Tinto Coal Australia who are selling coal to the steel makers. The second location is in Bangalooru where Rio Tinto Exploration (RTE) concentrate their exploration efforts on diamonds. And our longest established liaison office of Rio Tinto Diamonds (RTD) is in Mumbai, centrally positioned for its customers who have established cutting and polishing operations. Also in Mumbai is our Borax representative office where we supply the agricultural industry. Finally, the Group is outsourcing project implementation and software development for its business information systems to India. Mining’s contribution to sustainable development Now I want to tell you why Rio Tinto believes miners should – and can – contribute to a sustainable world; that is a world where our use of resources is consistent with future as well as present needs. The debate over sustainable development grew rapidly in the 1980s prompted by a report from the World Commission on Environment and Development called ‘Our Common Future’. Major global minerals companies, including Rio Tinto, did not respond rapidly to the report. Why should we? After all we had a vital role to play in providing the essential raw materials needed to fuel economic growth, and thus the fight against global poverty. Ten years later, mounting international hostility to mining forced a rethink. Everywhere, it seemed, miners and would-be miners faced opposition. It became increasingly difficult to get access to land to explore for minerals. Promising projects were aborted, delayed, and made more expensive by increasingly unsympathetic regulators. In the late nineties, the chief executives of nine of the world’s largest mining and metals companies met to discuss a situation that was too great for any one company to combat. Rio Tinto was an instigator of that meeting, the outcome of which was a three year multi-stakeholder review process known as the Global Mining Initiative (GMI). The then Chairman of Rio Tinto, Sir Robert Wilson, chaired the GMI. The basis, or foundation, of the GMI was the Mining and Minerals Sustainable Development project (MMSD) – a two year global analysis of the problems facing the industry. Importantly, it was conducted by an outside agency, the respected Institute for Environment and Development, and involved consulting with a wide range of stakeholders – some of them outspoken critics of the industry and its practices.
4
The MMSD’s report changed the way the industry saw itself. Its most fundamental outcome was to get miners to see that they must be part of an historic transition to a sustainable global society. Contributing at an industry level To further this GMI goal, Rio Tinto and the other companies involved in the GMI sponsored the formation of the International Council on Mining and Metals (ICMM). The Council’s purpose is to represent the industry at the highest level and to coordinate the adoption of sustainable practices, in the knowledge that poor performance on the part of one company can blight the reputation of the whole industry. ICMM’s vision is to have the minerals and metals industry recognised as a key contributor to sustainable development. In pursuit of this vision, ICMM’s corporate members have committed to a sustainable development framework because, they realised that the problems that assailed the mining industry towards the end of the last century were caused by losing touch with public values. We saw our purpose as primarily to create wealth. Responsible companies have always taken an informed interest in issues such as the environment and health and safety – but largely in relation to their own operations. Matters such as human rights, biodiversity, the wider cultural and social impacts of resource development were seen as peripheral issues best left to the appropriate authorities. We now know that the creation of wealth cannot occur in isolation – mining companies must recognise and deal with the diverse repercussions of development. The ICMM helps them to do this through its involvement in voluntary initiatives aimed at tackling particular issues. For example, the ICMM followed Rio Tinto in becoming part of the Extractive Industries Transparency Initiative (EITI). This commits companies to publishing all payments made to governments which implement the initiative. As such, it helps to reduce corruption and expresses the first of the ten sustainable development principles, that underpin the ICMM’s sustainable development framework.
5
Many ICMM members have signed up to the Voluntary Principles on Security and Human Rights and, the Kimberley Process Certification Scheme – both of them important human rights initiatives. Similarly, ICMM members abide by IFC and World Bank Standards on social and environmental issues. In addition, Rio Tinto and some other ICMM members have endorsed the UN Global Compact. The Global Compact is an accord between the United Nations and business for cooperation and promotion in upholding a set of core values in the areas of human rights, labour standards and environmental practice. Global Compact members seek, among other things, to protect international human rights insofar as it is within their power to do so, and to avoid complicity in human rights abuses. Rio Tinto was an early endorser and is a member of the Global Compact UK Forum. In joining these bodies, mining companies do not just take on certain obligations, they also earn the right to be part of a debate about sustainable development that will, ultimately, decide the future of their industry. Before I leave the subject of the ICMM, may I say how pleased I was to read in the Economic Times of India that the Government of India is considering an Indian version of the ICMM’s Sustainable Development Framework and the Government has started to work with the ICMM in formulating this work Managing for operational sustainability As I said, Rio Tinto has been a prime mover in marshalling the global minerals industry to support sustainable mining. But, how does the company itself put ‘sustainable mining’ into practice? Do we practice what we preach? The short answer is, yes we do – and we are getting better at it. The impetus to improve our sustainability credentials comes from the top. That’s because our board and senior management firmly believe that a ‘sustainable’ approach improves financial performance and creates additional shareholder value. Our Chairman Mr Paul Skinner who was in India three weeks ago re-emphasised his commitment to sustainable development at a number of meetings he attended. Respecting the environment and building constructive relationships with communities is fundamental to assuring the long-term future of mines and processing operations. Given the diversity of our operations and their geographical spread, this may seem a complex task. In fact, it is – and experience has taught us the importance of local solutions to local problems.
6
A sustainable approach to mining means integrating our approach to economic, local and environmental management, as well as effective corporate governance. This does not mean that we can be all things to all men. Nor are we expected to be. Before we commence a project, we carefully research the key expectations that the public have of us.
Around the world, those tend to be the issues that concern people – and those are the issues on which we concentrate. We don’t always have the internal skills to address these issues. One way we overcome this, is to work in partnership with respected community, environmental and NGO organisations. Rio Tinto currently has about 20 global partnerships. The Rio Tinto contribution to sustainable development takes place within our corporate governance framework whose salient points are to be found in the company’s statement of business practice The way we work. (A copy of which is available at the stall outside.) The board Committee on social and environmental accountability reviews the policies and procedures in The way we work, especially those to do with health, safety, environment and social issues. There are nine core corporate policies in The way we work, and these are supplemented by detailed guidelines The document is published in 21 languages and its contents are communicated to every employee, contractor supplier and customer. In such a brief presentation, I can only skim the surface of what has become a pervasive driver of management behaviour throughout the Rio Tinto Group. So perhaps the best way to conclude is with some examples that illustrate aspects of Rio Tinto’s approach to ‘sustainable mining’.
7
Argyle Diamonds
Some of you will be familiar with Rio Tinto’s Argyle Diamonds operation. It’s a wholly owned business that operates the world’s biggest diamond mine in Australia’s remote north western Kimberley region. Since it started production in the early 1980s, the mine has produced more than 600 million carats – and, today, most Argyle diamonds are cut and polished in India. The indirect employment in India to cut and polish Rio Tinto diamonds is in the order of 250,000 people The Argyle open pit was scheduled to close in 2008. After a lot of analysis which included all aspects, economic, environmental and social, an underground extension of the mine was approved and should extend the life of the mine until 2018. This decision was critical for the 250,000 people in India and extremely important to the local indigenous people who are traditional owners of the land covered by the mining lease. The mine is the linchpin of the local and Indian diamond industry economy; its closure could have grave social and cultural, as well as economic, consequences for thousands in Western India as well as to some of Australia’s poorest people. One of Rio Tinto’s sustainability goals is to avoid creating dependent communities. We don’t want the closure of an operation to cause economic collapse and social distress. What we do want, is to leave a legacy of people with skills and institutions that will help them to adapt to a post-mining economy. To that end, Argyle is working to strengthen the capacities of their Aboriginal neighbours. In 2004, the company and the traditional owners signed the Argyle Diamond Mine Participation Agreement (APA), which formally sets out a shared vision for regional development. The APA includes such things as employment and enterprise objectives, as well as recognising the ceremonial responsibilities of those traditionally responsible for the mine lease. The agreement covers economic, social and environmental matters and was framed with intergenerational interests. As well as allocating benefits to the current community, it sets up a sustainability fund that creates long-term benefits for future generations.
8
In addition to the work in Australia, the liaison office in Mumbai is working closely with customers to implement standards in manufacturing practice. We call this the Business Excellence Model (BEM) and we see it as essential to assuring the companies long-term future in India. Morro do Ouro
Sometimes switching to a sustainable approach is the only way to defuse potentially violent community reactions that threaten a project. Such was the case at a Rio Tinto gold mining operation in Brazil called Morro do Ouro, where clashes between mine security personnel and artisanal miners were escalating. Public opposition to a proposed extension was mounting in the local town and the Group’s human rights record was being questioned. Immediate responses included reorganising camp security and giving security personnel training in non-lethal methods. Importantly, an analysis of the company’s health, education, training and other initiatives showed that they did not address the needs of the poorest in the community. It was these unemployed people who were forced to resort to the dirty, dangerous and illegal practice of artisanal mining. Armed with this understanding, the company redirected its community relations efforts. It found ways to increase the direct and the indirect local economic benefits from its operations. While the mine was a high profile business, unlike Argyle it was not the most important economic entity in the neighbourhood. Management therefore worked hard to pioneer partnerships with other businesses and institutions in order to create more jobs and reduce the incidence of extreme poverty. Rio Tinto eventually divested Morro do Ouro – but only after constant confrontations with artisanal miners were a thing of the past. The greatly increased mine related community investment leveraged through collaboration and partnerships brought sustainable improvements to that Brazilian community.
9
Madagascar
My final example involves consciously designing a new mining operation in the light of our sustainable development principles. Last year the Rio Tinto Board approved the development of a heavy minerals deposit in south east Madagascar. The QIT Madagascar Minerals (QMM) operation – 80 per cent Rio Tinto/20 per cent Madagascar Government – has had a long gestation period. QMM’s investigation of Madagascar’s mineral potential began more than 15 years ago. It was soon apparent to Rio Tinto that understanding and successfully managing the social and environmental impacts of mining was just as vital, if the US$585 million project was to proceed. Madagascar is a fascinating country in terms of its biodiversity. Its people, however, are not wealthy. In an effort to find food, fuel and building materials, they are changing their island’s unique ecological heritage. They have made inroads on the complex coastal forest ecosystem of the kind that overlies QMM’s proposed operation. Realising the growing value of such remnant forest, QMM joined with partners such as the Royal Botanic Gardens, Kew, Earthwatch; the Smithsonian Institute; the Missouri Botanical Gardens, various universities; the national and regional governments in Madagascar and local residents. With their help, QMM established an Ecological Research Centre in 1998 and conducted comprehensive research into how people traditionally interacted with their environment – on land and at sea. Based on those findings conservation zones have been established and investigations carried out into restoring degraded land. The tree nursery can supply 170 000 trees a year and sustainable plantations will provide fuel and charcoal for local communities. Rehabilitation trials are being held and the company is building schools, clinics and wells in the region around the mine site. When mining commences in 2008, QMM will provide direct and indirect employment to many Malagasy citizens. But not all the benefits will accrue to Madagascar and its citizens. The Group will benefit globally from what has been learned about the interconnections between mining, environmental conditions, and the social and economic context. These lessons will be put to good use in other operations.
10
Conclusion None of these examples do justice to the extraordinary amount of effort Rio Tinto has put into devising ways to fulfil its public commitment to operate in a sustainable fashion. Those of you who would like more detail, please visit our website and that of the ICMM. My colleagues and I do not profess to have attained our sustainability destination, not by a long way – but I am certain that we are on the right road and I look forward to the journey. _________________ o0o _________________
Nik Senapati - Regional Vice President – Rio Tinto India
Introduction I want to thank the Confederation of Indian Industry and Development Alternatives for organising this Summit. It is a pleasure to address such a distinguished gathering; especially as the subject of this Summit – sustainable mining – is a core value for the Rio Tinto Group. In the next 15 minutes, I will cover these four points.
Page 1 of 10
2
Rio Tinto To start, let me briefly describe the Rio Tinto Group. Rio Tinto is a diversified global mining business that traces its origins back to an ancient Spanish copper mine purchased by a group of London investors in 1873, and a company formed in 1905 to treat zinc bearing tailings at Broken Hill in Australia. These two related companies merged in 1995 to form the Rio Tinto Group, listed in the UK, Australia and with ADRs in New York.
Today the Group is made up of 30 businesses that control about 80 operations in around 40 countries. Those businesses include open pit and underground mines, mills, refineries and smelters. There are also global exploration and research arms.
Rio Tinto has a market capitalisation of around US$75 billion. Its diverse commodity portfolio includes: coal, iron ore, aluminium, copper, diamonds, gold, uranium and mineral sands. The Group specialises in large, long-life and cost-competitive operations.
3
Rio Tinto in India Rio Tinto has been in India since the mid 1980s and currently has three main offices here. Rio Tinto India has its representative office in Delhi. In this office Rio Tinto Iron Ore (RTIO) manages iron ore opportunities in India including the joint venture to develop an iron ore project with the Orissa Mining Corporation. Also based in the Delhi office is Rio Tinto Coal Australia who are selling coal to the steel makers. The second location is in Bangalooru where Rio Tinto Exploration (RTE) concentrate their exploration efforts on diamonds. And our longest established liaison office of Rio Tinto Diamonds (RTD) is in Mumbai, centrally positioned for its customers who have established cutting and polishing operations. Also in Mumbai is our Borax representative office where we supply the agricultural industry. Finally, the Group is outsourcing project implementation and software development for its business information systems to India. Mining’s contribution to sustainable development Now I want to tell you why Rio Tinto believes miners should – and can – contribute to a sustainable world; that is a world where our use of resources is consistent with future as well as present needs. The debate over sustainable development grew rapidly in the 1980s prompted by a report from the World Commission on Environment and Development called ‘Our Common Future’. Major global minerals companies, including Rio Tinto, did not respond rapidly to the report. Why should we? After all we had a vital role to play in providing the essential raw materials needed to fuel economic growth, and thus the fight against global poverty. Ten years later, mounting international hostility to mining forced a rethink. Everywhere, it seemed, miners and would-be miners faced opposition. It became increasingly difficult to get access to land to explore for minerals. Promising projects were aborted, delayed, and made more expensive by increasingly unsympathetic regulators. In the late nineties, the chief executives of nine of the world’s largest mining and metals companies met to discuss a situation that was too great for any one company to combat. Rio Tinto was an instigator of that meeting, the outcome of which was a three year multi-stakeholder review process known as the Global Mining Initiative (GMI). The then Chairman of Rio Tinto, Sir Robert Wilson, chaired the GMI. The basis, or foundation, of the GMI was the Mining and Minerals Sustainable Development project (MMSD) – a two year global analysis of the problems facing the industry. Importantly, it was conducted by an outside agency, the respected Institute for Environment and Development, and involved consulting with a wide range of stakeholders – some of them outspoken critics of the industry and its practices.
4
The MMSD’s report changed the way the industry saw itself. Its most fundamental outcome was to get miners to see that they must be part of an historic transition to a sustainable global society. Contributing at an industry level To further this GMI goal, Rio Tinto and the other companies involved in the GMI sponsored the formation of the International Council on Mining and Metals (ICMM). The Council’s purpose is to represent the industry at the highest level and to coordinate the adoption of sustainable practices, in the knowledge that poor performance on the part of one company can blight the reputation of the whole industry. ICMM’s vision is to have the minerals and metals industry recognised as a key contributor to sustainable development. In pursuit of this vision, ICMM’s corporate members have committed to a sustainable development framework because, they realised that the problems that assailed the mining industry towards the end of the last century were caused by losing touch with public values. We saw our purpose as primarily to create wealth. Responsible companies have always taken an informed interest in issues such as the environment and health and safety – but largely in relation to their own operations. Matters such as human rights, biodiversity, the wider cultural and social impacts of resource development were seen as peripheral issues best left to the appropriate authorities. We now know that the creation of wealth cannot occur in isolation – mining companies must recognise and deal with the diverse repercussions of development. The ICMM helps them to do this through its involvement in voluntary initiatives aimed at tackling particular issues. For example, the ICMM followed Rio Tinto in becoming part of the Extractive Industries Transparency Initiative (EITI). This commits companies to publishing all payments made to governments which implement the initiative. As such, it helps to reduce corruption and expresses the first of the ten sustainable development principles, that underpin the ICMM’s sustainable development framework.
5
Many ICMM members have signed up to the Voluntary Principles on Security and Human Rights and, the Kimberley Process Certification Scheme – both of them important human rights initiatives. Similarly, ICMM members abide by IFC and World Bank Standards on social and environmental issues. In addition, Rio Tinto and some other ICMM members have endorsed the UN Global Compact. The Global Compact is an accord between the United Nations and business for cooperation and promotion in upholding a set of core values in the areas of human rights, labour standards and environmental practice. Global Compact members seek, among other things, to protect international human rights insofar as it is within their power to do so, and to avoid complicity in human rights abuses. Rio Tinto was an early endorser and is a member of the Global Compact UK Forum. In joining these bodies, mining companies do not just take on certain obligations, they also earn the right to be part of a debate about sustainable development that will, ultimately, decide the future of their industry. Before I leave the subject of the ICMM, may I say how pleased I was to read in the Economic Times of India that the Government of India is considering an Indian version of the ICMM’s Sustainable Development Framework and the Government has started to work with the ICMM in formulating this work Managing for operational sustainability As I said, Rio Tinto has been a prime mover in marshalling the global minerals industry to support sustainable mining. But, how does the company itself put ‘sustainable mining’ into practice? Do we practice what we preach? The short answer is, yes we do – and we are getting better at it. The impetus to improve our sustainability credentials comes from the top. That’s because our board and senior management firmly believe that a ‘sustainable’ approach improves financial performance and creates additional shareholder value. Our Chairman Mr Paul Skinner who was in India three weeks ago re-emphasised his commitment to sustainable development at a number of meetings he attended. Respecting the environment and building constructive relationships with communities is fundamental to assuring the long-term future of mines and processing operations. Given the diversity of our operations and their geographical spread, this may seem a complex task. In fact, it is – and experience has taught us the importance of local solutions to local problems.
6
A sustainable approach to mining means integrating our approach to economic, local and environmental management, as well as effective corporate governance. This does not mean that we can be all things to all men. Nor are we expected to be. Before we commence a project, we carefully research the key expectations that the public have of us.
Around the world, those tend to be the issues that concern people – and those are the issues on which we concentrate. We don’t always have the internal skills to address these issues. One way we overcome this, is to work in partnership with respected community, environmental and NGO organisations. Rio Tinto currently has about 20 global partnerships. The Rio Tinto contribution to sustainable development takes place within our corporate governance framework whose salient points are to be found in the company’s statement of business practice The way we work. (A copy of which is available at the stall outside.) The board Committee on social and environmental accountability reviews the policies and procedures in The way we work, especially those to do with health, safety, environment and social issues. There are nine core corporate policies in The way we work, and these are supplemented by detailed guidelines The document is published in 21 languages and its contents are communicated to every employee, contractor supplier and customer. In such a brief presentation, I can only skim the surface of what has become a pervasive driver of management behaviour throughout the Rio Tinto Group. So perhaps the best way to conclude is with some examples that illustrate aspects of Rio Tinto’s approach to ‘sustainable mining’.
7
Argyle Diamonds
Some of you will be familiar with Rio Tinto’s Argyle Diamonds operation. It’s a wholly owned business that operates the world’s biggest diamond mine in Australia’s remote north western Kimberley region. Since it started production in the early 1980s, the mine has produced more than 600 million carats – and, today, most Argyle diamonds are cut and polished in India. The indirect employment in India to cut and polish Rio Tinto diamonds is in the order of 250,000 people The Argyle open pit was scheduled to close in 2008. After a lot of analysis which included all aspects, economic, environmental and social, an underground extension of the mine was approved and should extend the life of the mine until 2018. This decision was critical for the 250,000 people in India and extremely important to the local indigenous people who are traditional owners of the land covered by the mining lease. The mine is the linchpin of the local and Indian diamond industry economy; its closure could have grave social and cultural, as well as economic, consequences for thousands in Western India as well as to some of Australia’s poorest people. One of Rio Tinto’s sustainability goals is to avoid creating dependent communities. We don’t want the closure of an operation to cause economic collapse and social distress. What we do want, is to leave a legacy of people with skills and institutions that will help them to adapt to a post-mining economy. To that end, Argyle is working to strengthen the capacities of their Aboriginal neighbours. In 2004, the company and the traditional owners signed the Argyle Diamond Mine Participation Agreement (APA), which formally sets out a shared vision for regional development. The APA includes such things as employment and enterprise objectives, as well as recognising the ceremonial responsibilities of those traditionally responsible for the mine lease. The agreement covers economic, social and environmental matters and was framed with intergenerational interests. As well as allocating benefits to the current community, it sets up a sustainability fund that creates long-term benefits for future generations.
8
In addition to the work in Australia, the liaison office in Mumbai is working closely with customers to implement standards in manufacturing practice. We call this the Business Excellence Model (BEM) and we see it as essential to assuring the companies long-term future in India. Morro do Ouro
Sometimes switching to a sustainable approach is the only way to defuse potentially violent community reactions that threaten a project. Such was the case at a Rio Tinto gold mining operation in Brazil called Morro do Ouro, where clashes between mine security personnel and artisanal miners were escalating. Public opposition to a proposed extension was mounting in the local town and the Group’s human rights record was being questioned. Immediate responses included reorganising camp security and giving security personnel training in non-lethal methods. Importantly, an analysis of the company’s health, education, training and other initiatives showed that they did not address the needs of the poorest in the community. It was these unemployed people who were forced to resort to the dirty, dangerous and illegal practice of artisanal mining. Armed with this understanding, the company redirected its community relations efforts. It found ways to increase the direct and the indirect local economic benefits from its operations. While the mine was a high profile business, unlike Argyle it was not the most important economic entity in the neighbourhood. Management therefore worked hard to pioneer partnerships with other businesses and institutions in order to create more jobs and reduce the incidence of extreme poverty. Rio Tinto eventually divested Morro do Ouro – but only after constant confrontations with artisanal miners were a thing of the past. The greatly increased mine related community investment leveraged through collaboration and partnerships brought sustainable improvements to that Brazilian community.
9
Madagascar
My final example involves consciously designing a new mining operation in the light of our sustainable development principles. Last year the Rio Tinto Board approved the development of a heavy minerals deposit in south east Madagascar. The QIT Madagascar Minerals (QMM) operation – 80 per cent Rio Tinto/20 per cent Madagascar Government – has had a long gestation period. QMM’s investigation of Madagascar’s mineral potential began more than 15 years ago. It was soon apparent to Rio Tinto that understanding and successfully managing the social and environmental impacts of mining was just as vital, if the US$585 million project was to proceed. Madagascar is a fascinating country in terms of its biodiversity. Its people, however, are not wealthy. In an effort to find food, fuel and building materials, they are changing their island’s unique ecological heritage. They have made inroads on the complex coastal forest ecosystem of the kind that overlies QMM’s proposed operation. Realising the growing value of such remnant forest, QMM joined with partners such as the Royal Botanic Gardens, Kew, Earthwatch; the Smithsonian Institute; the Missouri Botanical Gardens, various universities; the national and regional governments in Madagascar and local residents. With their help, QMM established an Ecological Research Centre in 1998 and conducted comprehensive research into how people traditionally interacted with their environment – on land and at sea. Based on those findings conservation zones have been established and investigations carried out into restoring degraded land. The tree nursery can supply 170 000 trees a year and sustainable plantations will provide fuel and charcoal for local communities. Rehabilitation trials are being held and the company is building schools, clinics and wells in the region around the mine site. When mining commences in 2008, QMM will provide direct and indirect employment to many Malagasy citizens. But not all the benefits will accrue to Madagascar and its citizens. The Group will benefit globally from what has been learned about the interconnections between mining, environmental conditions, and the social and economic context. These lessons will be put to good use in other operations.
10
Conclusion None of these examples do justice to the extraordinary amount of effort Rio Tinto has put into devising ways to fulfil its public commitment to operate in a sustainable fashion. Those of you who would like more detail, please visit our website and that of the ICMM. My colleagues and I do not profess to have attained our sustainability destination, not by a long way – but I am certain that we are on the right road and I look forward to the journey. _________________ o0o _________________
