Fact sheet

Exploration
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Rio Tinto fact sheet

Exploration
Exploration in Rio Tinto

Rio Tinto is a leading international

business involved in each stage of
metal and mineral production.

The Group combines Rio Tinto plc, We have an exceptional set of assets
which is listed on the London Stock and growth opportunities, both in
Exchange, and Rio Tinto Limited, established projects and exploration
which is listed on the Australian prospects. We aim for a multi
Securities Exchange. commodity exploration portfolio
composed of the best opportunities
Within Rio Tinto, the Exploration available to us.
group is mandated with increasing
the value of the company by We set ourselves apart from the rest of
discovering or acquiring new the mining industry by having a clear
mineral resources. focus on finding and mining only the
best resources. These resources must
Exploration involves the be profitable in all parts of the price
identification, prioritisation and cycle and deliver long term economic
testing of geological, geochemical value to Rio Tinto.
and geophysical targets. The
exploration process ends when a Rio Tinto Exploration is organised
discovery is handed over to one into three regional teams: the
of Rio Tinto’s product groups (ie Americas, Australasia and Africa-
Aluminium, Copper, Diamonds Eurasia. The Project Generation
& Minerals, Energy and Iron Ore) Group (PGG) is responsible for
for detailed evaluation. coordinating project prioritisation
and searches the world for new
Rio Tinto’s exploration strategy opportunities. PGG also provides
brings us sustained success in a specialist commercial and technical
highly competitive market. We assistance to the regional teams and
have maintained our commitment coordinates research programmes.
to exploration over the years and
the consistency of expenditure At the end of 2009, the Exploration
and activity has produced group was actively exploring in 17
extraordinary results. countries, and assessing opportunities
in a further 19 for a broad range
of commodities including bauxite,
copper, coking coal, diamonds, iron
ore, nickel and uranium.

Left
We have a multi-commodity exploration portfolio
composed of the best opportunities available to us.
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Rio Tinto fact sheet
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Rio Tinto fact sheet

Exploration
Our strategy

There are four basic elements

to our exploration strategy:

Deposit focus Regional structure • A strong corporate reputation

Our focus is on only the largest and We operate in regional groups that that makes us a preferred partner
highest value mineral deposits, can explore for multiple commodities, for host governments and local
which we refer to as Tier 1 deposits. rather than global groups that are communities.
This prevents distraction of people focused on a single commodity.
and financial resources onto lower This gives us local presence and • A reputation for excellent project
value projects, enabling us to deliver a sound understanding of our management, commercial skills
maximum value to the shareholder. operating environment. and mining expertise that has
given us entry to major projects
In house approach Competitive strengths worldwide.
We operate the majority of exploration We play to our competitive strengths,
programmes ourselves rather than rather than trying to compete across • Extensive geological knowledge
outsourcing to others. This ensures the board. These strengths include: collected through many years
that we retain management control of experience.
over our performance in the areas of • World leading expertise in bulk
safety, environment and community commodity, base metal and • A practice of using simple,
relations, as well as corporate diamond exploration. well tried and cost effective
governance. It also means we can geochemical and geophysical
keep the exploration programme • An ability to operate effectively search techniques to detect
focused on only those targets that in highly prospective emerging near surface orebodies.
are important to Rio Tinto. jurisdictions. Our scale and long
term view mean that we can be • A strong tradition of developing
We will, however, partner readily successful in complex cultural and and applying innovative
with smaller exploration companies regulatory environments where technologies to resolve specific
if that gives us access to attractive smaller companies may be unable exploration challenges.
opportunities, tenure, local to sustain their exploration efforts.
knowledge, or operational skills
that we do not possess in house.

Left
Mineral exploration involves the
identification, prioritisation and
testing of geological, geochemical
and geophysical targets.
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Rio Tinto fact sheet
Exploration

Our approach

Rio Tinto Greenfield exploration Brownfield exploration

conducts Greenfield exploration involves

discovering deposits in new
Brownfield exploration aims to
grow or sustain the value of our
exploration in geographical locations, or diversifying
from our existing product portfolio.
existing operations. It capitalises on
projects in which we have already
both greenfield All greenfield exploration is carried
made significant investment. Costs
are lower and access is simpler
and brownfield out by Rio Tinto Exploration. If
a deposit meets the criteria to be
than greenfield exploration, since
brownfield exploration usually takes
environments. assessed as a “discovery”, it is then
passed over to the appropriate
place on land that we already own.

product group (ie Aluminium, As Tier 1 resources are often found in

Copper, Diamonds & Minerals, clusters, this provides another reason
Energy and Iron Ore). The product why the brownfield environment
group will conduct detailed offers the easiest opportunity for
evaluation and feasibility studies, creating value through exploration.
before a decision is taken on whether
to develop the deposit. Exploration and subsequent
evaluation of brownfield sites is
Our greenfield successes include carried out by the appropriate
bauxite deposits in Weipa, Australia, business unit. Rio Tinto Exploration
and uranium deposits in Rössing, provides technical support
Namibia – both of which continue to to the business unit during
deliver economic benefit to Rio Tinto brownfield exploration.
after more than 40 years.
Recent brownfield successes include
iron ore discoveries in Western
Australia’s Pilbara region.

Top
Developing a project,
from initial testing to
commissioning, can
take ten to 20 years.
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Rio Tinto fact sheet

Exploration
Our exploration stages Investing in exploration

The evolution of a project from initial Target testing Global mineral exploration
testing to commissioning can take 10 – assessing the nature expenditure responds to changes in
to 20 years involving a series of study of mineralisation the commodities cycle. We examine
stages to reach investment approval The team performs the first each opportunity individually to
and implementation. The exploration sub‑surface evaluation of the better decide the level of exploration
process can be divided into five prospects through limited drilling investment we will make. The size
stages. The number of opportunities and trenching. They may start to of our exploration investment is
that progress to the next stage collect environmental and social determined by the quality of the
decreases as we move through baseline data at this stage. opportunity and project risk, as well
the process. as our assessment of the long-term
Resource delineation prospects for the commodity. The
Area selection – determining deposit size, split of our annual expenditure is
– deciding where to explore grade and metallurgy therefore not predetermined, nor
The Exploration team conducts If results from initial drilling are is it necessarily in line with the
desktop evaluations of geological, encouraging, additional drilling contribution that a commodity makes
geochemical and geophysical data to takes place to estimate the extent to Rio Tinto’s overall net earnings.
find areas that have the potential to of mineralisation. The team
contain an orebody. Issues relating to works increasingly closely with
health, safety, the environment and local stakeholders to analyse
communities, or technical or political environmental and community issues,
risks, are identified at this stage. The and starts baseline studies if these
team often makes an initial visit to have not previously begun.
the area.
Resource evaluation
Target identification – judging whether a
–d etermining whether deposit will be economical
a deposit may exist The team carries out more detailed
Mapping and surveying takes place investigation of a deposit to decide
within a selected area. The team whether it will be economic to
determines whether a target exists develop. This involves more drilling,
that represents the mineral deposit metallurgical and engineering studies
they seek. Discussions take place and economic analysis. After this
with local communities to obtain stage, called an Order of Magnitude
temporary land access, and to assess Study, a deposit is handed over to
opportunities for local sourcing a product group evaluation team if
and employment. it has significant potential value to
Rio Tinto.
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Rio Tinto fact sheet
Exploration

Our commitment

Rio Tinto Exploration is an integral part of the

sustainable development equation for Rio Tinto.

The Group’s strategy of investing in Each of the countries and regions There is no room in Rio Tinto
large, long life mines and businesses we explore in has different cultures, Exploration for anything but the
means that we operate on extended peoples, laws and expectations. most value-creating opportunities;
time horizons. Some of our projects Our exploration teams are often the most constructive, collaborative
last 40 years or more from mineral the first contact the Group has with and adaptable behaviours; and a
discovery through to closure, people who may be our neighbours personal commitment to sustainable
representing large scale, long term for generations. Respecting the development from everyone in
investments in fixed capital. diversity of local communities, we our team.
engage in a manner that is direct and
These long term commitments personal, and tailored to the specifics Successful sustainable development
provide opportunities for us to plan of each region, village, or individual outcomes help us achieve not just
and implement projects in such a stakeholder. a licence to operate, but also a
way that they deliver sustainable licence to grow.
contributions to social wellbeing, On a day to day basis our
environmental stewardship and Exploration group contributes
economic prosperity. to local communities through
employment of local people and
The Exploration group’s core introducing improvements in local
objective of finding long life, low cost health and safety practices. We
resources is the starting point for the actively encourage community
entire Group’s efforts in sustainable engagement, striving to establish
development. These discoveries trust at an early stage so that we can
can become the catalyst for local bring about mutual benefits through
economic diversification, skills the development of high quality
development in the local workforce mineral resources.
and improvements to infrastructure.

Right
Our strong corporate reputation
makes us a preferred partner for host
governments and local communities.
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Rio Tinto fact sheet

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Rio Tinto fact sheet
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Rio Tinto fact sheet

Exploration
Our successes

The mining industry norm is that To add value to a Group the size of Tier 2 deposits are smaller or lower
approximately 0.03 per cent of Rio Tinto, our exploration teams quality than Tier 1 – they are the 80
conceptual targets that are assessed must regularly discover what others per cent of deposits that contribute
lead to a discovery. This means that might call “company maker” deposits. 20 per cent of global production.
only one in 3,000 of all ideas in the Known as “Tier 1” deposits, these The following table illustrates our
exploration pipeline would proceed are the deposits that contribute exploration track record, listing the
to the detailed evaluation stage. At disproportionately to global Tier 1 and Tier 2 discoveries that we
Rio Tinto Exploration, we strive to production of a commodity due to made between 1990 and 2009.
significantly exceed this benchmark. their size and character. Our target is
to make one Tier 1 discovery each year.

Left
Rio Tinto Exploration has an enviable track
record in both greenfield and brownfield
environments, such as at Mutamba in
Mozambique (top) and in the Pilbara of
Western Australia (bottom).

Rio Tinto Exploration discoveries – 1990-2009

Year Tier 1 Tier 2

Discovery Mineral Discovery Mineral
1990 Century Zinc
1991 Wafi Gold
1993 Sepon Gold
1994 Diavik Diamonds Honeymoon Well Nickel
Fortaleza Nickel
1995 Las Cruces Copper
1998 Penasquito Gold
2000 Potasio Rio Colorado Potash Murowa Diamonds
2001 Kazan Soda ash
2002 Resolution Copper
2003 Sari Gunay Gold
2004 Simandou Iron ore Eagle Nickel
2005 La Granja Copper Welthandalthaluna Iron ore
Caliwingina Iron ore Volcano Iron ore
Texas East Iron ore
Rio Grande Borates
2007 Chapudi Coal
Kintyre Uranium
2008 Mutamba/Chilubane Titanium Bunder Diamonds
2009 Jadar Lithium borate

Mozambique image: Photography by Grant Lee Neuenberg

Fact sheets

Corporate profile
Aluminium
Copper
Diamonds
Energy
Industrial minerals
Iron ore
Technology and innovation
Exploration

Rio Tinto plc Rio Tinto Limited

2 Eastbourne Terrace 120 Collins Street
London W2 6LG Melbourne, Victoria 3000
United Kingdom Australia

T +44 (0)20 7781 2000 T +61 (0)3 9283 3333 www.riotinto.com

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