Diverse products - BankTrack · in diamonds production since 1983 when it created a new market niche for small size, “affordable” gems from the Argyle mine in Australia. Increasing

Diverse productsThe everyday products we use to liveour lives depend on the mining industry.We can’t spend a day without using a metal or mineral.

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01 Minerals and metals for the world

02 Aluminium 04 Borates 06 Coal 08 Copper10 Diamonds 12 Gold 14 Iron ore 16 Molybdenum 18 Potash 20 Salt 22 Silver

(and its close relatives zinc and lead)24 Talc 26 Titanium dioxide28 Uranium

30 “Owning” the products we sell

Samples of what’s what frommetals and minerals

Computers

coppergoldaluminiumzinc

Lighting and power

energy from coalcopper for transmission

Automobiles

steel from iron ore aluminiumpig iron (brakes)copper (radiator, electrics)borates (window glass, safety airbag)talc (dashboard and bumper plastics)

Homes and offices

steel from iron oresteel alloyed with molybdenumzinclead coppergypsum paint (titanium dioxide for opacity and talc for finish)

Leisure

golf clubs (iron ore, molybdenum)tennis racket (titanium metal)the gym (steel from iron ore, copper)personal lifestyle (gold, silver, diamonds, borates for home andgarden products, talc and boratesfor personal care)

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Minerals and metals for the world“If it can’t be grown, it has to be mined”.

The everyday products we use to live our lives depend on the mining industry. We can’t spend a day without using a metalor mineral.

And if it’s not made of metal or mineral, like food or clothing, it can’t be grown,harvested, processed or shipped withoutinfrastructure made of metals. Becausemetals and minerals are versatile, durable and recyclable they are essential to sustainable improvements in livingstandards all over the world.

In the production and supply of metals and minerals, Rio Tinto is one of the world’s most diversified companies. The Group is organised in six product groups: Iron Ore, Energy (coal anduranium), Industrial Minerals (borates, titanium dioxide, talc, salt, gypsum), Aluminium, Copper (including gold, silver, zinc, lead, molybdenum), and Diamonds.

Rio Tinto cares about its products, their use and disposal. Through “lifecycle analysis” the Group strives to improveunderstanding of the health, safety, social and environmentalimplications of the use of its products and to weigh their costs and benefits to society.

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Aluminium Aluminium is derived frombauxite, a reddish pebbly ore that occurs as a surfacedeposit at Rio Tinto’s largeWeipa mine in Australia. It takesapproximately two tonnes ofbauxite to refine one tonne of alumina, an intermediateproduct. Two tonnes of aluminais smelted into one tonne of aluminium metal. Rio Tintooperates alumina refineries in Gladstone, Queensland andaluminium smelters in Gladstone,Tasmania, New Zealand and the UK.

Aluminium is a modern metaland one of the most versatile.Almost every aluminium productcan be profitably recycledrepeatedly without loss of metalquality. Recycling aluminiumuses only five per cent of theenergy needed to produce the primary metal from bauxite. Its light weight and strengthmakes it ideal for automobileengines and bodywork, as wellas shipbuilding and aircraftmanufacture. In the home itsnon corrosive properties andductility makes it ideal for doors, window frames, roofingand insulation. Because it is a good conductor of electricity,aluminium is used in themanufacture of electrical wire and transmission cable. It makes convenient packagingmaterial as aluminium foil, drinkcans and wrap. Aluminiumevaporated in a vacuum forms a highly reflective coating forboth visible light and radiantheat. These coatings do notdeteriorate as does silver, andare used to coat telescopemirrors and to make decorativepaper, packages and toys.

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A modern invention, aluminium is light,versatile and very recyclable.

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Heat resistant glass contains boratesthat allow the glass to flex.


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Borates Boron is an element only foundcombined with oxygen, andother elements such as sodiumand calcium. Borates is thegeneric term for these boroncompounds. The oldest andmost plentiful form of theseborates is the mineral salt borax.At present, almost half of theworld’s refined borates comefrom the borate ores mined at Rio Tinto’s Boron mine inCalifornia. Rio Tinto also minesand refines borate minerals fromdesert lake bed deposits in theArgentine Andes.

Borates are used in hundreds of products and processes inways that touch the lives ofeveryone. Major uses includefibreglass and glass production,ceramic frits and glazes, andagricultural nutrients. Whenincorporated into glass products,borates make the material more tolerant of contraction and expansion, making themimportant ingredients ininsulation fibreglass, thin filmtransistors and heat resistantglass. The borates make theglass more flexible, and improveinsulation materials’ ability totrap heat.

Borates have been an essentialingredient in ceramic glazes for centuries. Borates facilitate a good fit between the glazeand the item it covers – includingtiles, tableware and householdappliances – and increase the lustre and durability of thefinished product.

Boron is one of seven essentialmicronutrients required fornormal growth and fruiting of agricultural crops. Only a small amount is required forproper plant nutrition and tomaximise yield and quality in crops ranging from cottonand soybeans to grapes and olives. Rio Tinto provides plant food products to fertilisermanufacturers and growers for bulk blending and liquidapplications.


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Coal


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Coal gives us light reliably andeconomically.

Coal is plentiful, relativelyinexpensive and safe and easyto transport. Rio Tinto is one ofthe world’s largest producers ofthermal coal, used for electricitygeneration in power stations.Electrification is a key aspect of development, and developingcountries in particular rely on the cheap electricity that coalprovides. All forecasts predictrising energy demand over the next 25 years. Globallyidentified coal reserves canmeet present levels of demandfor about 200 years. Coal is amajor contributor to greenhousegases, blamed for climatechange. Rio Tinto has acceptedthe challenge with otherproducers and with governmentsto implement over time cleancoal technologies to seriouslycurtail harmful emissions.

Rio Tinto coal mines in the US and Australia supplyinternationally traded as well as domestic US and Australianmarkets. Rio Tinto EnergyAmerica is one of the US’slargest producers and sells its ultra low sulphur thermal coal to electricity generatorspredominantly in mid westernand southern states. Rio Tinto is a leading exporter of thermalcoal from Australia. Rio TintoCoal Australia operates mineswhich supply local powerstations as well as markets in Europe and Asia.

The Group also produces highervalue coking, or metallurgical,coal which, treated into coke,goes into furnaces with iron oreto produce steel.


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Copper Rio Tinto produces six per centof world mined copper, rankingit fifth in the world. Two thirds of copper is used in electricalapplications where it is valuedfor its high conductivity andefficiency. It is used in wiring forbuildings, cars and appliances,for power transmission, and in motors of all sizes. Theseuses benefit from growingpressure to increase energyefficiency as using more copperreduces energy losses. Anothermajor use is in airconditioning and refrigeration systems where copper acts as a heatexchanger. Copper is also usedin plumbing, and a wide varietyof architectural uses includingroofing sheet.

The copper industry is a greatrecycler of metal. Scrap metalarising during processing andmanufacture of products is all re-used. In addition, almost all copper in current use iscapable of being used again. A sophisticated recyclingindustry ensures its return eitherdirectly into the fabricatingindustry for remelting or into therefining sector for reprocessing.This ensures the optimum useof raw materials and is a vitalcontribution to a cleanerenvironment.

High levels of demand fuelledby China’s metals intensivephase of industrialisation havecreated supply side shortagesthat highlight the essentialnature of the red metal. Figuresshow the world is not running outof copper but future resourcesare likely to be harder to develop and more expensive to mine.

Copper delivers water, electricity andhundreds of essential products.


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Diamonds

Modern mining and processinghave contributed to increasedownership of diamonds aroundthe world. Today an estimated500 million men and womenown at least one piece ofdiamond jewellery. While gemdiamonds are not essential to human development in autilitarian sense, they do servemany higher psychological andsocial needs. They have cometo mark many of life’s importantrites of passage. Far removedfrom this glamorous role,industrial grade diamonds, whichoccur alongside jewelstones,are used as abrasives and drillbits due to their hardness.

Rio Tinto has been involved in diamonds production since1983 when it created a newmarket niche for small size,“affordable” gems from theArgyle mine in Australia.Increasing knowledge andexpertise enabled Rio Tinto to start marketing all of its owndiamond production in 1996.Rio Tinto Diamonds (RTD)operates a sales office inBelgium and a representativeoffice in India. RTD works with customers to provide theproducts they want. Rio Tintohas positioned itself as aproducer and marketer of rough diamonds, rather thanmoving into polishing andcutting, except for the specialcase of processing Argyle’sunique pink diamonds.


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Gems, each unique, that tell of loveand beauty.Photograph: © James Bareham Photography


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Gold Gold was the second metal aftercopper taken into use by earlyhumans about 4,000 years ago.Because of its rarity, beauty and ductility, gold has enjoyed a mystique and value unrivalledby other metals and became thefirst metal of money. Investorsregard its enduring value as ahedge against inflation and as a store of value that transcendspaper money. Hence its valueincreases when, in response toworld economic uncertainties,there is a “flight to gold”.

Non toxic and biologicallybenign gold is used in modernmedicine, focusing lasers,bonding complex compoundsin medicines and helping ingenetic research. Outsidemedicine, gold is at work usuallyunseen in safety devices such as airbag sensors, gold bondedcompressor vanes in aircraft engines and in gold coatedinfrared equipment to detectdangerous levels of carbonmonoxide in the workplace.Thanks to its reflective qualities,gold plays a key role in spaceexploration, including geo-stationary satellites and theHubble telescope. Since theintroduction of computers, gold,which does not corrode, hasbeen on the forefront of digitaltechnologies, playing a vital rolein circuitry and electronics.

Most gold that is not stored as bullion for investmentpurposes goes into jewellery.Gold jewellery demand is about 3,000 tonnes per year andexceeds annual mine supply.Gold has always been recycledbecause of its inherent highvalue. Your modern jewellery or dental crown may containsome gold that was mined in prehistoric times and formedpart of a valued gold artefact or jewellery piece from pastcivilisations. Today, at least 15 per cent of annual goldconsumption is recycled.


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Gold is a store of value that transcends money.


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Iron ore Iron is the giant among metals. The modern world is built on thestrength and reliability of iron,primarily in the form of steel.The whole infrastructure ofmodern civilisation, from shipsto bridges, railways, skyscrapers,cars, trucks, trains, engines,means of production andmachines of all kinds, down tohumble pins and paperclips,depend on iron. Iron has givenshape and substance to theideas that have fuelled humanprogress. We use 20 times more iron in the form of steel, which isiron combined with carbon fromcoal, than all the other majormetals put together. Rio Tinto is among the world’s largestproducers of iron ore with minesand projects on five continents.

Iron ore occurs as “lump” oreand “fine” ore. Rio Tinto workswith its customers to achieveproduct combinations thatsatisfy the customers’ rawmaterials needs. This involvesappropriate technical supportand research to match product quality with customerrequirements for their steel mills.Major markets for Rio Tinto iron ore are in China, Japan, the rest of Asia, North Americaand Europe.

Iron ore in steel forms the basicinfrastructure of modern life.


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Molybdenum Referred to as “moly” for short,molybdenum is recoveredmostly as a by-product ofcopper mining. A silvery greymetallic element, it can beconfused with lead. But unlikelead, it is hard and has a highmelting point of 2,610 ºC.

Its most valuable use is to hardenhigh quality steel. Traces of moly were found in the blade ofa 14th century Samurai sword.Today it is used as an alloy to produce armour plate, and also in tool making, particularlyhigh speed drills and saws. It strengthens pipework in theoffshore oil and gas industry andis used in the exterior claddingof spectacular buildings such as the Petronas Towers in Kuala Lumpur, Malaysia.

One of its valuable features isthat unlike other heavy metals,its compounds are of lowtoxicity. This makes it especiallysuitable as an alloy material formanufacturing the vessels usedin the pharmaceutical, food andchemical industries. A recentapplication is in a chemicalsmoke inhibitor to prevent thespread of toxic fumes in anaircraft fire.


Molybdenum puts the hard in special steels.

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A natural mineral that makes cropsgrow more abundantly.


Potash Potash is a naturally occurringmineral which is used inagriculture to provide potassiumto plants. It is an impure form of potassium carbonate (K2CO3)mixed with other potassium salts.Potash has been used sinceantiquity in the manufacture ofglass and soap, and as a fertiliser.

Today 95 per cent of potash isused as a fertiliser in worldwideagriculture. Potassium is anessential nutrient for healthyplant growth. Potassium mustbe added to soils lacking in it orwhere crops deplete it with eachgrowing season.

Two thirds of the world’s potash is produced by three countries:Canada, Russia and Belarus. Only nine other countriesproduce the rest, includingrelatively small production inChile and Brazil. Nearly allcountries in the world consumepotash. The biggest consumersare the US, China, Brazil andIndia, none of which has majorproduction of its own. Rio Tintois developing a potash depositin Argentina.


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Salt Although salt is best known as an essential mineral in thehuman diet, it is also one of the basic raw materials for thechemicals industry. Salt is usedin the chlor-alkali process whichproduces chlorine and causticsoda. These are feedstocks in the manufacture of a broadrange of chemicals and metalssuch as alumina for aluminiumproduction, and polyvinylchloride (PVC) for buildingproducts.

Rio Tinto produces industrialsalt by solar evaporation of seawater at Dampier, Lake Macleodand Port Hedland on the northwest coast of Australia. It takesabout 65 million tonnes of seawater to produce one milliontonnes of salt from the power of the sun.

Production is a continuousprocess with sea water being moved slowly through a series of ponds becomingincreasingly concentratedthrough evaporation. When the brine reaches “salting point”(sodium chloride saturation), the salt is then collected byspecial harvesters. The salt issold principally to customers in Asia.


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From a pinch at the table to makingPVC piping.


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Silver (and its close relatives zinc and lead)

Silver, which is mined with zinc and lead by Rio Tinto, is a goodconductor of electricity and, like gold, does not corrode. It is used in many electrical and electronic applications and as the principal ingredient ofphotographic and x-ray film.Silver is also a metal of beauty,used to make lasting productsfor the home and person.

Zinc, a silver coloured metal, is mainly used for galvanising.This is a procedure in which a thin layer of zinc is bondedwith the surface of steel or iron.The steel or iron is dipped in a molten bath of zinc. Thecoating prevents corrosion from moisture and weather. Zinc is also widely used infasteners and machined partsfor automotive and other uses.

Lead is a heavy metal but softand malleable. High purity, highquality lead is used in lead-acidbatteries, for automotive andother uses. It is used in finishingapplications such as windowpanes and flashings on the roofof buildings.

Found together in nature, silver, zincand lead deliver a variety of products.


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Talc Talc is best known as a personalcare product, but this is theleast of its applications. It is afunctional mineral with naturalproperties such as waterrepellency, heat resistance andbiological inertness that makesit an important ingredient in themanufacture of paper, paints,plastics and many other familiarproducts. Because each talcorebody differs according to itsgenesis, every talc is differentand can be applied in differentfunctions according to customerneeds.

Rio Tinto’s talc subsidiary, Rio Tinto Minerals, serves morethan 1,000 customers in morethan 100 countries, ranging from paper manufacturers whobuy 10,000 tonnes per year topharmaceutical companies who take 100 tonnes per year.

In the coatings industry, talc is used to improve the flow ofpaint and in decorative coatingsit enhances coverage, allowingfor savings in the use of titaniumdioxide pigments (see page 27).In anti-corrosion systems, talcimproves water resistance andadhesion. In pulp and papermanufacturing and recycling,microscopic droplets of resinform deposits that hamperproduction. Talc absorbs thedroplets and keeps themdispersed in the pulp, helpingthe machines run smoothly andreducing pollution in the watercircuit. Talc improves paper’smechanical handling propertiesand provides a smoother finishand improved readability on the page.

Finest quality talcs give plasticthe right balance of rigidity andimpact strength, making thematerial suitable for applicationssuch as vehicle dashboards and bumpers. Talc’s contributionto the performance of ceramicsstems from its chemicalcomposition from the variety of ore combinations found indifferent deposits. Associatedwith silica, talc reinforcesovenware, while with kaolin itimproves the thermal propertiesof refractories.

Smoothness counts in a lot of placesand products outside the bathroom.


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Titanium dioxide


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Coastal sands can contain the mineral ilmenite, which is 85 per cent titanium dioxide(TiO2). TiO2 has the property ofreflecting and scattering light in the visible spectrum likethousands of tiny mirrors. When it is incorporated intopaints, plastics or paper itimparts a brilliance and opacityof colour to these materials.

Ilmenite is also the raw material of high quality pig iron for the fabrication of ductile ironcastings which combine thestrength and ductility of steelwith the moulding properties of cast iron. Products includesafety critical auto parts such as brake calipers and steeringknuckles.

Another mineral sand, rutile, is used in the manufacture oftitanium metal which, becauseof its lightness, strength,corrosion and heat resistance, is used extensively in aerospaceand aviation to build the engineturbines that jet millions ofpeople around the world eachday. Titanium also has medicaland scientific uses in artificialhip joints, dental implants andpacemakers.

Opacity for the canvas on which we lay our colours.


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Uranium

The vital fuel for nuclear poweris uranium, a widely occuringmineral. The mined product is uranium oxide concentrate, a dark olive green powder,which is sold to electricityutilities. Rio Tinto follows strictsecurity measures applied andaudited by the InternationalAtomic Energy Agency toensure nuclear material is usedonly for peaceful purposes. The mine product is inert and no more radioactive than whenit was in the ground. To make it of any use it must be “enriched”which involves rearranging the “isotopes”, the differentforms of the atomic particlesthat make up a chemicalelement. The resulting materialis fabricated into fuel rods forpower stations.

There are many other ways in which the atom is useful.Radioisotopes and radiationhave many applications inagriculture, medicine, industryand research, greatly improving the day to day quality of ourlives. Radiation science helpsincrease genetic varieties offood crops for different climates,and is used in food preservationand to control insects thatcause livestock and agriculturallosses.

In medicine, the use of radiation and radioisotopes provide x-ray and other diagnostic toolsas well as therapy for cancerand other medical conditions.One of the commonest uses ofradioisotopes is in householdsmoke detectors.

Uranium gives clean energy and vital x-rays for diagnosis and therapy.


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“Owning” the products we sellRio Tinto’s responsibility for its products does not end with theirdelivery to the customer. A comprehensive programme of “productstewardship” is in place along the value chain to ensure productsafety, protect markets, gain value and make a contribution tosustainable development.

Product stewardship includes working with customers to ensure the processing and fabrication of downstream productsfrom Rio Tinto’s metals and minerals is done in a way that isenvironmentally and socially responsible.

Engagement with customers includes working with them to improvesafety and environmental performance standards. The Northparkesgold-copper mine in Australia screens its smelter customers fortheir environmental performance. The mine works with customersto help gain improvements in their performance. Similar screeninghas been done for smelting of molybdenum in China.

Rio Tinto Minerals has pioneered a dialogue with one of their main borates customers, Owens Corning, to share best practice on factors that can contribute to sustainable development – such as product “life cycle” management. Rio Tinto Minerals hasengaged with customers in China to improve their environmentalperformance through site reviews and continued dialogue.

To make sure that their product is not processed by child labour or in sweat shops, Rio Tinto Diamonds established the BusinessExcellence Model (BEM), accrediting Indian diamond cuttingcustomers for environmental practices and good working conditions.This not only assures Rio Tinto of responsible use of its products,but enables diamond cutters to offer a “clean” product to jewelleryretailers in countries like the US.

Product stewardship is part of the strategy to integrate sustainabledevelopment considerations into Rio Tinto businesses. Thisincludes using the leverage of Rio Tinto’s responsibly producedproducts to encourage better environmental and social outcomes.


Rio Tinto works to:– Ensure the use of its products does not

harm people’s health or the environment.

– Better understand in partnership withdownstream manufacturers the recyclingpotential of its products.

– Better understand the future needs formetals and minerals.

– Promote stakeholder and communityengagement in relation to its products.

For convenience, the expression Rio Tinto is used to describe both Rio Tinto plc and Rio Tinto Limited and companies within the Group, even though these companies are generally separate and independentlymanaged. Ownership: Where Rio Tinto is not the sole owner of a company, the percentage interest is shown.

Photography by John Ross unless otherwise statedDesigned by SampsonMay Design LimitedPrinted in England by St Ives Westerham Press © Rio Tinto

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Rio Tinto plc6 St James’s SquareLondon SW1Y 4LD United KingdomTelephone +44 (0)20 7930 2399

Rio Tinto Limited120 Collins StreetMelbourne 3000 Australia Telephone +61 (0)3 9283 3333

www.riotinto.com

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Documents

Diverse products - BankTrack · in diamonds production since 1983 when it created a new market niche for small size, “affordable” gems from the Argyle mine in Australia. Increasing