Introduction to The Guidelines for the Long-term Sustainability of Outer Spac...
Rio Tinto Africa
1. Rio Tinto in Africa
Global Citizen or Corporate Shame?
$SUR¿OHRI5LR7LQWR¶VDFWLYLWLHVDQGSURMHFWVLQ$IULFD
SUHSDUHGE,QGXVWUL$//*OREDO8QLRQFRYHULQJPLOOLRQ
ZRUNHUVLQFRXQWULHVDURXQGWKHZRUOG
2. 2 | RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0(
3XEOLVKHGE,QGXVWUL$//*OREDO8QLRQLQ-XQH
RYHULPDJH+DQGV‹,QWHUQDWLRQDO/DERXU2UJDQL]DWLRQUR]HW0
RSLHVRIWKLVUHSRUWDQGIXUWKHULQIRUPDWLRQDUHDYDLODEOHWRGRZQORDGIURPWKHIROORZLQJZHEVLWHDGGUHVV
www.industriall-union.org
IndustriALL Global Union
,QGXVWUL$//*OREDO8QLRQLVDQHZLQWHUQDWLRQDORUJDQL]DWLRQWKDWEULQJVWRJHWKHUXQLRQVUHSUHVHQWLQJPLOOLRQ
ZRUNHUVLQFRXQWULHVLQWKHPLQLQJHQHUJDQGPDQXIDFWXULQJVHFWRUV
,QGXVWUL$//LVDQHZIRUFHLQJOREDOVROLGDULWWDNLQJXSWKH¿JKWIRUEHWWHUZRUNLQJFRQGLWLRQVDQGWUDGHXQLRQULJKWV
DURXQGWKHZRUOG7KHRUJDQL]DWLRQFDPHWRJHWKHUDWLWVIRXQGLQJFRQJUHVVLQ-XQH
,QGXVWUL$//LVFRPPLWWHGWRQHJRWLDWLQJZLWKPXOWLQDWLRQDOFRPSDQLHVDWWKHJOREDOOHYHORYHULQJZRUNHUVLQWKH
PLQLQJVHFWRUDQGPDQXIDFWXULQJVHFWRUVPHDQVWKDW,QGXVWUL$//FRYHUVPDQRIWKHZRUOG¶VODUJHVWDQGPRVW
SUR¿WDEOHFRPSDQLHV
$VFRPSDQLHVKDYHEHFRPHPRUHLQWHUQDWLRQDODQGJOREDOWKHKDYHLQYHVWHGPRUHDQGPRUHLQULVNPDQDJHPHQW
WKURXJKµFRUSRUDWHVRFLDOUHVSRQVLELOLW¶DVDµEUDQG¶WRKHOSPDQDJHWKHLUVKDUHKROGHUV
%XWGRHVWKH65SURPLVHPDWFKWKHUHDOLWRIWKHZRUNLQJOLYHVRISHRSOHDFURVVWKHJOREH
)RUWRRORQJLQWHUQDWLRQDOFRPSDQLHVKDYHJRWDZDZLWKJRRGFRUSRUDWHFLWL]HQULQRQHFRXQWUZKLOHFRQWLQXLQJ
SRRUSUDFWLFHVLQDQRWKHU
,QGXVWUL$//ZLOOEHZRUNLQJDFURVVWKHPHPEHUVKLSLQFRXQWULHVWREXLOGVWURQJHUXQLRQV¿JKWIRUZRUNHUV¶
ULJKWVFDPSDLJQDJDLQVWSUHFDULRXVIRUPVRIZRUNDQGWRSURPRWHVRFLDOMXVWLFHKHDOWKDQGVDIHWDWZRUNDQG
HTXDOLWIRUZRPHQLQWKHZRUNSODFH
3. RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0( | 3
Mining Companies and Global Social Responsibility
,QWKHPLGVWRIWKHZRUVWJOREDOUHFHVVLRQHYHUWRKLWWKHZRUOGLQWKHPLQLQJLQGXVWUH[SHULHQFHGD
FRPPRGLWERRP7KLVERRPODUJHOIXHOOHGEWKHJURZWKRIKLQDDQG,QGLDFUHDWHGXQSUHFHQGHQWHGGHPDQG
IRUFRDOPLQHUDOUHVRXUFHVDQGSUHFLRXVVWRQHV$JDLQVWWKHEDFNJURXQGRIWKH¿QDQFLDOFULVHVPLQLQJFRPSDQLHV
FRQWLQXHGWRRXWSHUIRUPWKHRYHUDOOPDUNHWDVFRQVXPHUVHFWRUVGHSHQGHQWRQGHPDQGIURPGHYHORSLQJ
HFRQRPLHVVWUXJJOHGWRUHFRYHU0RVWPLQLQJFRPSDQLHVFDPHWKURXJKWKHFULVHVZLWKUREXVWEDODQFHVKHHWV
$VWKHJOREDOHFRQRPIDFHVDQRWKHUWKUHDWRIDOLNHOUHFHVVLRQLQGXFHGEWKH(XUR]RQHFULVHVWKHPLQLQJ
LQGXVWULVSRLVHGWRSURYLGHDKDYHQDOWKRXJKQRWTXLWHDWWKHOHYHORIWKHODVW¿QDQFLDOFULVLV$FFRULQJWR5LR
7LQWR¶V7RP$OEDQHVH´WKHORQJHUWHUPGHPDQGSLFWXUHUHPDLQVSRVLWLYH´
3DUDGR[LFDOOPLQHZRUNHUVDQGPDQORFDOPLQLQJFRPPXQLWLHVIDLOWREHQH¿WIURPWKHRQJRLQJVWUHQJWKDQG
VXFFHVVRIWKHJOREDOPLQLQJLQGXVWU$FFRUGLQJWKHWKH6RFLDO:DWFK5HSRUWWKHHFRQRPLFJURZWKGULYHQ
EPLQLQJDVLWVPDLQPRWRUDQGOHGEHVFDODWLQJFRPPRGLWSULFHV³LVQRWEHQH¿WWLQJWKHPDMRULWLHV´RIWKH
SRSXODWLRQVRIGHYHORSLQJFRXQWULHV,QVWHDGWKHJOREDOPLQLQJJLDQWVJHWELJJHUDQGPRUHSUR¿WDEOHZKLOHPDQ
QDWLRQVVWUXJJOHWRSURYLGHEDVLFVHUYLFHVWRWKHFRPPXQLWLHV
Rio Tinto – from global giant to corporate citizen
,QGXVWUL$//LVFRPPLWWHGWRFDPSDLJQLQJDFURVVRXUPHPEHUVKLSLQFRXQWULHVWRUDLVHWKHSUR¿OHRI5LR7LQWR
DQGLWVSUDFWLFHVDFURVVWKHZRUOG
7KLVPLQLQJJLDQWKDVDKXJHLQWHUQDWLRQDOIRRWSULQWJHQHUDWLQJHQRUPRXVSUR¿WVIURPWKHQDWXUDOUHVRXUFHVDQG
PLQHUDOVWKDWVKRXOGULJKWOEHQH¿WQDWLRQVDQGWKHLUFRPPXQLWLHV
5LR7LQWRKDVDOUHDGEHHQQDPHGDVWKHWKPRVWFRQWURYHUVLDOFRPSDQLQWKHZRUOGE5HS5LVND¿UP
VSHFLDOL]LQJLQDVVHVVLQJWKHSRVVLEOHHQYLURQPHQWDOVRFLDOJRYHUQDQFHDQGUHSXWDWLRQDOULVNVRIPXOWLQDWLRQDO
FRPSDQLHV
,QSURWHVWDFWLRQVDFFRPSDQLHG5LR7LQWR¶V$*07KHVHSURWHVWVLQYROYHGUHJLRQVDURXQGWKHJOREHZKHUH
5LR7LQWRKDVRSHUDWLRQVVXFKDV,QGRQHVLD0RQJROLDDQGWKH867KHLVVXHVWKDWEURXJKWWRJHWKHUDFWLYLVWVIURP
PXOWLSOHVLJKWVRIVWUXJJOHVDURXQGWKHZRUOGKDYHQRWEHHQUHVROYHGDVLVHYLGHQFHGEVLPLODUDFWLRQVLQ
WKDWDFFRPSDQLHG5LR7LQWR¶V$*0VXFKDVWKH8QLWHG6WHHOZRUNHUVGLVSXWHZLWK5LR7LQWRRYHUWKHORFNRXWRI
ZRUNHUVLQ$OPD4XpEHFRQWURYHUVLHVVXUURXQGLQJ5LR7LQWRLQFOXGHNHLVVXHVVXFKDVWKHKLJKOSXEOLFL]HG
XUDQLXPPLQLQJHQYLURQPHQWDODQGKHDOWKKD]DUGVIRUZRUNHUVDOOHJHGJHQRFLGHDQGZDUFULPHVLQ3DSXD1HZ
*XLQHDWKHXVHRISULYDWHPHUFHQDUDQGVHFXULWFRPSDQLHVWKHULVNRIVRFLDODQGHQYLURQPHQWDOGDPDJHDW
PDQRSHUDWLQJPLQHVDQGPLQLQJSURMHFWVSURSRVHGE5LR7LQWRDQGLWVVXEVLGLDULHV
5LR7LQWRDOVRVWDQGVDFFXVHGRIZKROHVDOHYLRODWLRQRIWKH:RUOG%DQN¶V,QWHUQDWLRQDO)LQDQFLDORUSRUDWLRQV
VWDQGDUGJXLGHOLQHVDWWDFKHGWRWKHORDQFRQGLWLRQVIRUOHQGLQJVXFKDVLQDPHURRQDQG*XLQHD
IndustriALL is committed to a campaign that:
Shines a light on the activities of Rio Tinto in communities across the world
Measures up Rio’s claims to being a good corporate citizen with the realities.
Communicates with shareholders and the business community to inform them of Rio’s behaviours.
Builds a global campaign audience through members, activist groups and the global environment
movement.
4. | RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0(
Rio Tinto in summary:
RIO TINTO plc.
73( Public Company
75$'( ASE: RIO
LSE: RIO
NYSE: RIO
,1'8675 Metals and Mining
)281'(' 1873
+($'48$7(56 London, United Kingdom
.(3(23/( Jan Du Plessis: Chairman
Tom Albanes: CEO
352'876 Iron ore, Bauxite, Alumina, Aluminium, Copper, Molydbenum, Gold,
Diamonds, Coal, Uranium, Titanium Dioxide, Borates, Salt, Talc
5(9(18( US$ 26.2 billion (2010)
US$ 27.4 billion (2011)
(03/2((6 77 000 people (2010)
51 000 people (2011)
Source: http://en.wikipedia.org/wiki/Rio_Tinto_Group
5LR7LQWRLVDOHDGLQJLQWHUQDWLRQDOPLQLQJJURXSKHDGTXDUWHUHGLQWKH8.FRPELQLQJ5LR7LQWRSOFD/RQGRQDQG1HZ
RUN6WRFN([FKDQJHOLVWHGFRPSDQDQG5LR7LQWR/LPLWHGZKLFKLVOLVWHGRQWKH$XVWUDOLDQ6HFXULWLHV([FKDQJH
Rio Tinto’sEXVLQHVVLV¿QGLQJPLQLQJDQGSURFHVVLQJPLQHUDOUHVRXUFHV0DMRUSURGXFWVDUHDOXPLQLXPFRSSHU
GLDPRQGVWKHUPDODQGPHWDOOXUJLFDOFRDOXUDQLXPJROGLQGXVWULDOPLQHUDOVERUD[WLWDQLXPGLR[LGHDQGVDOW
5. DQG
LURQRUH$FWLYLWLHVVSDQWKHZRUOGDQGDUHVWURQJOUHSUHVHQWHGLQ$XVWUDOLDDQG1RUWK$PHULFDZLWKVLJQL¿FDQW
EXVLQHVVHVLQ$VLD(XURSH$IULFDDQG6RXWK$PHULFD
5LR7LQWRUHSRUWHGDQLQFUHDVHLQLWVXQGHUOLQJHDUQLQJVWRDUHFRUG86ELOOLRQLQDVKÀRZIURP
WKHJURXS¶VRSHUDWLRQVZHUHKLJKHUDW86ELOOLRQDQGFDSLWDOH[SHQGLWXUHMXPSHGWR86ELOOLRQ
DJDLQVW86ELOOLRQLQ7RWDOFDSLWDOH[SHQGLWXUHLQRQDSSURYHGSURMHFWVDQGVXVWDLQLQJFDSLWDOLV
H[SHFWHGWREH86ELOOLRQ
The Swiss metal union
UNIA, the International
Metalworkers’ Federation
(IMF) and the International
Federation of Chemical,
Energy, Mine and General
Workers’ Unions (ICEM)
protested against the use
of Rio Tinto metals in
Olympic medals with an
action at the International
Olympic Committee (IOC) in
Lausanne on 14 May 2012.
6. RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0( |
CONTRIBUTION OF RIO TINTO’S FIVE PRODUCT LINE TO GROUP EARNINGS
IRON ORE:
5LR7LQWRLVWKHVHFRQGODUJHVWSURGXFHUVXSSOLQJWKHJOREDOVHDERUQHLURQRUHWUDGH,URQRUHWKDWLVH[SRUWHGE
RFHDQWUDGHURXWHVWRFRDVWDORUQHDUFRDVWVWHHOPDNLQJSODQWV
,URQ2UHFRQWULEXWHVRIWKHJURXS¶VWRWDOHDUQLQJV
)RUWKHWKLUGTXDUWHURIVDV$OEDQHVH³:HKDYHVHWQHZTXDUWHUOUHFRUGVIRULURQRUHVDOHVDQGKDUG
FRNLQJFRDOSURGXFWLRQDVRXURSHUDWLRQVUHFRYHUHGIURPWKHVHYHUHZHDWKHUH[SHULHQFHGHDUOLHULQWKHHDU
:KLOVWZHDUHPLQGIXORIFXUUHQWPDUNHWYRODWLOLWWKHIXQGDPHQWDOVDUHKROGLQJXSZHOOSDUWLFXODUOIRUEXONWUDGHG
FRPPRGLWLHV:HDUHRSHUDWLQJDWIXOOFDSDFLWVHOOLQJDOOZHSURGXFHDQGRXUJURZWKSURJUDPPHLVRQWUDFN
VXSSRUWHGEWKHVWUHQJWKRIRXUEDODQFHVKHHW´
5LR7LQWRSURGXFHGDUHFRUGPLOOLRQWRQQHVRILURQRUHLQWKHIRXUWKTXDUWHURIDQGPLOOLRQWRQQHVIRU
WKHHDU
ALUMINIUM:
5LR7LQWR¶VLQWHJUDWHGIDFLOLWLHVLQFOXGHKLJKTXDOLWEDX[LWHPLQHVDQGDOXPLQDUH¿QHULHVDVZHOODVVRPHRIWKH
ZRUOG¶VlowestFRVWSULPDUDOXPLQLXPVPHOWHUV
Products
%DX[LWHDOXPLQDDOXPLQLXP
$OXPLQLXPFRQWULEXWHVRIWKHJURXS¶VWRWDOHDUQLQJV
,WLVWKXVQRWVXUSULVLQJWKDWLQOctober 20115LR7LQWRDQQRXQFHGLWKDGGHFLGHGWRmove away from its aluminum
business and would put up close to $8 billion worth of assets for sale2QOIRXUHDUVHDUOLHU5LR7LQWRKDG
SXUFKDVHGDQDGLDQDOXPLQXPJLDQW$OFDQIRUELOOLRQDQDFTXLVLWLRQWKDWOHIWLWZLWKDKXJHGHEWEXUGHQ
7KHPRYHZDVDQLQGLFDWLRQWKDW5LR7LQWRZLOOGLYHUWPRUHRILWVUHVRXUFHVLQWRLWVLURQRUHEXVLQHVVZKLFK
DOUHDGFRQWULEXWHVDERXWRIWKHFRPSDQ¶VHDUQLQJVRio Tinto said it would sell 13 assets which include
VPHOWHUVDQGUH¿QHULHVDFURVV$XVWUDOLD1HZ=HDODQG*HUPDQ)UDQFHDQGWKH8QLWHG6WDWHV7KH
estimated worth of these assets come to $8 billion.
COPPER:
,Q5LR7LQWRSURGXFHGWKRXVDQGWRQQHVRIFRSSHUPDNLQJLWWKHZRUOG¶V¿IWKODUJHVWVXSSOLHU5LR7LQWR
DOVRSURGXFHGWKRXVDQGRXQFHVRIJROGDQGWKRXVDQGWRQQHVRIPROEGHQXPDVESURGXFWVRILWVFRSSHU
RSHUDWLRQV
Products
RSSHUJROGPROEGHQXPVLOYHUQLFNHO
RSSHUFRQWULEXWHVWRWKHJURXS¶VWRWDOHDUQLQJV
DIAMONDS AND MINERALS GROUP:
5LR7LQWR¶V'LDPRQGV 0LQHUDOVJURXSFRPSULVHVPLQLQJUH¿QLQJDQGPDUNHWLQJRSHUDWLRQVDFURVVthree
sectors. Rio Tinto DiamondsLVRQHRIWKHZRUOG¶VOHDGLQJGLDPRQGSURGXFHUVDFWLYHLQPLQLQJDQGVDOHVDQG
PDUNHWLQJ
Products
'LDPRQGVERUDWHVWLWDQLXPGLR[LGHIHHGVWRFNVWDOFKLJKSXULWLURQPHWDOSRZGHUV]LUFRQUXWLOH
'LDPRQGVDQG0LQHUDOVFRQWULEXWHRIWKHJURXS¶VWRWDOHDUQLQJV
5LR7LQWRLVFRQVLGHULQJVHOOLQJRIILWVGLDPRQGDVVHWV
ENERGY:
5LR7LQWRLVDOHDGLQJVXSSOLHURIWKHUPDODQGFRNLQJFRDOWRWKH$VLDQVHDERUQHPDUNHWDQGLVRQHRIWKHZRUOG¶V
ODUJHVWXUDQLXPSURGXFHUVVHUYLQJHOHFWULFSRZHUXWLOLWLHVZRUOGZLGH
,WV(QHUJSRUWIROLRLQFOXGH5LR7LQWRRDO$XVWUDOLDDFRDOPLQHDWRORZRLQRORUDGR86(QHUJ5HVRXUFHVRI
$XVWUDOLDZKLFKSURGXFHVXUDQLXPR[LGHIURPLWV5DQJHURSHUDWLRQDQG5|VVLQJD1DPLELDQXUDQLXPR[LGHSURGXFHU
5LR7LQWR¶VHQHUJSRUWIROLRFRQWULEXWHVWRWKHJURXS¶VHDUQLQJV
7. | RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0(
Rio Tinto's operational footprint in Africa
COUNTRY LOCATION PRODUCT % OWNERSHIP
GUINEA SANGREDI ALUMINIUM (BAUXITE) 23
GUINEA KAMSAR ALUMINIUM (BAUXITE) 23
GUINEA SIMANDOU IRON ORE 50.35
SOUTH AFRICA RICHARDS BAY TITANIUM DIOXIDE 74
SOUTH AFRICA PALABORWA COPPER 57.7
02=$0%,48( %(1*$ =$0%(=, COAL 99,74
NAMIBIA RÖSSING URANIUM 69
=,0%$%:( MUROWA DIAMOND 78
MADAGASCAR 4,70$'$*$6$5 ILLMENITE 80
CAMEROON EDIA ALUMINIUM 47
Projects
$*UHHQ¿HOGDOXPLQDUH¿QHULQ*XLQHD
Orientale iron ore project in the Democratic Republic of Congo.
the construction and operation of a new, 1,000-megawatt hydroelectric generating station at
Songmbengué in Cameroon
Decoding Rio Tinto's DNA
5LR7LQWRLVWKHIRXUWKODUJHVWPLQLQJFRUSRUDWLRQLQWKHZRUOG,WLVEDVHGLQWKH8QLWHG.LQJGRPDQG$XVWUDOLD,W
RSHUDWHVRYHUPLQHVDQGSURFHVVLQJSODQWVLQFRXQWULHV7KHFRPSDQHPSORVSHRSOHGLUHFWODQG
PDQPRUHDVVXEFRQWUDFWRUV
RIO TINTO’S GLOBAL STRATEGY
$FFRUGLQJWR$XVWUDOLDQVWRFNPDUNHWDQDOVWV0DUJLQRI6DIHW(TXLW5HVHDUFK³5LR7LQWR¶VIRFXVRQODUJH
SURMHFWVPHDQVWKDWLIDSURSHUWIDLOVWRUHDFKWKHµ7LHU¶VWDWXVLWLVGLVSRVHGRI´:LWKLWVVL]HDQGH[SHUWLVH
WKHFRPSDQFDQDIIRUGEHLQJVHOHFWLYHDERXWLWVRSSRUWXQLWLHVUHSRUWLQJWKDWVLQFHLWµKDVFRPSOHWHGPRUH
WKDQGLYHVWPHQWVZLWKWRWDOJURVVSURFHHGVLQH[FHVVRIELOOLRQ¶$WWKHVDPHWLPHWKHFRPSDQPDLQWDLQV
DVWHDGÀRZRIDFTXLVLWLRQVDQGLQYHVWPHQWVWRUHSODFHWKHVHSURMHFWVZLWKQHZRSSRUWXQLWLHV$WWKHHQGRI
5LR7LQWRZDVDFWLYHOH[SORULQJIRUYDULRXVFRPPRGLWLHVLQFRXQWULHVDQGDVVHVVLQJRSSRUWXQLWLHVLQDQRWKHU
VHYHQFRXQWULHV7KHFRPSDQGLVFRYHUHGHLJKW7LHUSURMHFWVEHWZHHQDQG
,Q6RXWK$IULFD5LR7LQWRKDVGLVSRVHGRIWZRRSHUDWLRQVDFRSSHUPLQHDQGDFRDOPLQHUHVSHFWLYHOLQ
DFFRUGDQFHZLWKLWVVWUDWHJRIIRFXVLQJRQODUJH³7LHU´VWDWXV7KH*URXSVROGLWVKDSXGLFRDOSURMHFWLQ
/LPSRSRSURYLQFHDWDURFNERWWRPSULFHRIPWRRDORI$IULFDZKRVH(2VXEVHTXHQWOGHVFULEHGWKH
DFTXLVLWLRQDVD³EDUJDLQ´IRUDVVHWVRQZKLFKWKUHHWRIRXUPLQHVFRXOGEHGHYHORSHG
,QVWHDG5LR7LQWRPRYHGDFURVVWKHERUGHULQ0R]DPELTXHELGGLQJDEQIRUFRQWURORIMXQLRUFRDOFRPSDQ
5LYHUVGDOH0LQLQJDQGWKHSURMHFWVLWFRQWUROOHGRQWKHGHYHORSLQJ0RDWL]HFRDO¿HOGQHDU7HWH
,QJune 20115LR7LQWRERXJKW7DWD6WHHO¶VVWDNHLQ$XVWUDOLD¶V5LYHUVGDOH0LQLQJWDNLQJLWVKROGLQJLQWKH
FRPSDQWR5LRSDLG$86SHUVKDUHYDOXLQJWKHGHDODW$86EQEQ…P
9. RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0( |
$OWKRXJK5LR7LQWRKDVFRQ¿UPHGWRWKHPDUNHWLWVLQWHQWLRQWRGLVSRVHRIWKH3DODERUDFRSSHUPLQLQJRSHUDWLRQ
LQ6RXWK$IULFDLWFRQWLQXHVWRUXQWKHRSHUDWLRQVDWDVLJQL¿FDQWSUR¿WDFFRUGLQJWRWKHRSHUDWLRQV¶¿QDQFLDOUHVXOWV
UHOHDVHGLQ)HEUXDU,Q6HSWHPEHU5LR7LQWRDQG$QJOR$PHULFDQVDLGWKHLQWHQGHGWRVHOOWKHLUHQWLUH
ORQJKHOGVWDNHVLQWKHFRPSDQ
5LR7LQWRRZQVRI3DODERUD$QJOR$PHULFDQ7KHFRPSDQLVUHSRUWHGOZRUWKDERXWP
…P
10. %RWKFRPSDQLHVVDLGWKH6RXWK$IULFDQPLQHZDVQRWELJHQRXJKWRMXVWLIWKHLUFRQWLQXHGRZQHUVKLS
AFRICA A KEY ELEMENT OF RIO TINTO’S STRATEGY
$FFRUGLQJWR'RXJODV5LWFKLHKLHI([HFXWLYH(QHUJ$IULFDLVDNHHOHPHQWRIUHVRXUFHVJURXS5LR7LQWR¶V
JURZWKVWUDWHJ5LR7LQWRVLJQHGD86ELOOLRQLQ0DUFKZLWKKLQDOFRWRDFTXLUHDVWDNHLQWKH
6LPDQGRX,URQRUHPLQHLQ*XLQHD
5LR7LQWR¶V6LPDQGRXLURQRUHSURMHFWLQWKHVRXWKHDVWRI*XLQHDZLOOEHWKHODUJHVWLQWHJUDWHGPLQLQJSURMHFWLQ
$IULFD0RUHWKDQ86ELOOLRQKDYHEHHQFRPPLWWHGWRGDWHZLWKPRUHWKDQELOOLRQDOORFDWHGWRPLQHUHODWHG
H[SHQGLWXUHLQFOXGLQJVLJQL¿FDQWUDLOZRUNWHQGHUVWKDWKDYHEHHQUHOHDVHGIRUWKHNLORPHWUHWUDQV*XLQHDQ
UDLOZD
7KH,QWHUQDWLRQDO)LQDQFHRUSRUDWLRQ,)
11. WKHSULYDWHVHFWRUDUPRIWKH:RUOG%DQNRZQVDVWDNHRIWKH
6LPDQGRXSURMHFWThe IFC makes investments in projects that contribute to sustainable development, that
are economically viable and comply with its social and environmental standardsUHIHUUHGWRDV6WDQGDUG
3HUIRUPDQFHJXLGHOLQHV
$WWKH%HQJD3URMHFWDW7HWHLQ0R]DPELTXH5LR7LQWRH[SHFWVWRVHHLWV¿UVWFRDOVKLSPHQWVDURXQGWKHHQGRI
0DUFK6LPLODUWRWKH6LPDQGRXLURQRUHSURMHFW5LR7LQWRRDO0R]DPELTXHZLOOUHTXLUHVLJQL¿FDQWQHZ
LQYHVWPHQWLQFOXGLQJSRUWDQGUDLOLQIUDVWUXFWXUH
7KHJURXSGRXEOHGLWVVWDNHLQ5LFKDUGV%D0LQHUDOVDQLPSRUWDQWSDUWRILWVWLWDQLXPGLR[LGHSRUWIROLRWR
DIWHU%+3%LOOLWRQH[HUFLVHGDQRSWLRQWRVHOOLWVKROGLQJ
7KHJURXSKDVDQH[WHQVLYHH[SORUDWLRQSURJUDPPHLQWKHUHJLRQ
,QODWHJanuary 2012%ORRPEHUJUHSRUWHGWKDW5LR7LQWRKDVDFFHSWHGKLQD*XDQJGRQJ1XFOHDU3RZHURUS¶V
ELGIRULWVVKDUHVLQ.DODKDUL0LQHUDOVWKHPDMRUVKDUHKROGHULQRQHRIWKHZRUOG¶VODUJHVWXUDQLXPSURMHFWV
/DVWHDU5LR7LQWRVSHQWELOOLRQWRUHSXUFKDVHPLOOLRQRILWVRZQVKDUHV$ELOOLRQVKDUHEXEDFN
SURJUDPPHRQWUDFNIRUFRPSOHWLRQEHQGRI47RGDWHELOOLRQKDVEHHQFRPSOHWHGUHSUHVHQWLQJ
PLOOLRQ5LR7LQWRSOFVKDUHVHTXLYDOHQWWRRIWKH*URXS¶VLVVXHGVKDUHFDSLWDORPSDQLHVEXEDFNVKDUHV
HLWKHUWRLQFUHDVHWKHYDOXHRIVKDUHVVWLOODYDLODEOHUHGXFLQJVXSSO
13. | RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0(
Rio Tinto Global Citizen - the scorecard
FICTION 1 | ON SUSTAINABLE DEVELOPMENT AND THE SOCIAL LICENCE TO OPERATE
“Rio Tinto is committed to contributing to the social, economic, and institutional development of the
communities in which we operate. It is important to our shareholders, employees and many other
stakeholders that we contribute to societal stability through local employability and employment
opportunities, local procurement, civic governance and the transparent payment of tax and dividend
SDPHQWV2XUDVSLUDWLRQLVWREULQJVXVWDLQDEOHDQGQHWHFRQRPLFEHQH¿WWRWKHUHJLRQVDQGFRXQWULHV
in which we have a presence. This approach helps us build a reputation as an organization that facilitates
economic growth in the places where we work. In turn, this helps us earn our social licence to operate.”
FICTION 2 | ON LABOUR RELATIONS
5LR7LQWRPDLQWDLQVWKDW “respect is central to a harmonious workplace, where the rights of employees are
XSKHOGDQGZKHUHWKHLUGLJQLWLVDI¿UPHGIUHHRILQWLPLGDWLRQGLVFULPLQDWLRQRUFRHUFLRQRIDQNLQG´
“Over the last sixteen years, the company has resolved all its contract negotiations throughout the world
ZLWKRXWFRQÀLFW´7RP$OEDQHVHLQDOHWWHUVHQWWRD%ULWLVK03RQDOOHJDWLRQVDERXW5LR7LQWR¶VODERXUUHODWLRQV
FRQGXFW
FICTION 3 | ON HUMAN RIGHTS.
5LR7LQWRSURIHVVHVWR “...set out to build enduring relationships with our neighbours that demonstrate
mutual respect, active partnership, and long term commitment.”
FICTION 4 | ON ENVIRONMENT STEWARDSHIP
5LR7LQWRPDLQWDLQVWKDW “excellence in environmental performance and product stewardship is essential
to our business success... Wherever possible we prevent, or else minimise, reduce and remedy the
disturbance of the environment.”
THE FACTS SPEAK DIFFERENTLY
FACT 1 | ON SUSTAINABLE DEVELOPMENT AND THE SOCIAL LICENCE TO OPERATE
5LR7LQWRKDVEHHQGHVFULEHGEWKH London Mining NetworkDVIROORZV“From Papua New Guinea to
Namibia, from the Upper Peninsula of Michigan in the U.S. to Madagascar, and from Cameroon to
Indonesia, Rio Tinto has a long and shameful record [across all human development indicators – labour,
social, economic, and environmental]”
FACT 2 | ON LABOUR RELATIONS
Former Australian Prime Minister Bob HawkeRQFHVWDWHG“What runs through as a common thread is
[Rio Tinto’s] philosophy that they want to see the trade unions out of their operations” (Corporate Watch)
$FFRUGLQJO5LR7LQWRKDVFRQVLVWHQWOPDLQWDLQHGDVWUDWHJWKDWLQYROYHVH[SORLWDWLYHODERXUSUDFWLFHVH[SRVLQJ
WKH¿FWLWLRXVOLHDERXWLWVODERXUUHODWLRQV,QUHVSRQVHWRWKHVHOLHVDQGPRWLYDWHGEWKHOLYHGH[SHULHQFHRILWV
PHPEHUVDFURVVWKHZRUOGWKH,QWHUQDWLRQDO)HGHUDWLRQRIKHPLFDO(QHUJ0LQHDQG*HQHUDO:RUNHUV8QLRQ
,(0
14. QRZ,QGXVWUL$//*OREDO8QLRQPRYHGWRIRUPWKH5LR7LQWR*OREDO1HWZRUNWRFRQIURQWWKH5LR7LQWR¶V
ODERXUSUDFWLFHV
7KH*OREDO1HWZRUNZDVIRUPHGLQRUGHUWRFKDOOHQJHWKHFRPSDQ¶VODERXUULJKWVYLRODWLRQVDQGXQLRQEXVWLQJ
DFWLYLWLHVDQGKXPDQULJKWVDEXVHVDWPLQHVLQYDULRXVSDUWVRIWKHZRUOG$PRQJWKHFKDUJHVZHUHDFFXVDWLRQVRI
GLVFULPLQDWLRQDJDLQVW+,9SRVLWLYHZRUNHUVLQ=LPEDEZHZKRZHUH¿UHGEHFDXVHRIWKHLUVWDWXV
5LR7LQWRLQJHQHUDODQGLQSUDFWLFHSUHIHUVWRDYRLGQHJRWLDWLRQVZLWKPLQHZRUNHUV¶XQLRQVDQGSUHIHUVWR¿QG
VROXWLRQVZLWKWKHZRUNHUVWKHPVHOYHVLQVWHDGRIKDYLQJDWKLUGSDUWLQYROYHG
5LR7LQWR¶VFRQGXFWDWWKH5|VVLQJ8UDQLXP0LQHKDVEHHQGHSORUDEOH7KH/RQGRQ0LQLQJ1HWZRUNFLWHVWKH
8QLWHG1DWLRQVRXQFLOIRU1DPLELDDVGHVFULELQJLQWKHVWKHFRQGLWLRQVXQGHUZKLFKXUDQLXPZDVEHLQJ
PLQHGDVEHLQJ“...virtual slave labour under brutal conditions. Some of these conditions, continued to as
recently as 2000 where black workers were still paid lower wages than their white counterparts”.
15. RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0( |
FACT 3 | ON HUMAN RIGHTS
+XPDQULJKWVYLRODWLRQVDUHOHJHQGDUZLWKLQ5LR7LQWR
7KRXVDQGVRIORFDOSHRSOHLQGLIIHUHQWFRXQWULHV
LQ$IULFDKDYHEHHQGLVSODFHGEWKH5LR7LQWR¶V
PLQHGHYHORSPHQWDQGPDQKDYHQHLWKHUUHFHLYHG
DGHTXDWHFRPSHQVDWLRQRUFRPSHQVDWLRQDWDOOIRU
WKHLUFXVWRPDUODQGULJKWVRPPXQLWLHVKDYHORVW
DFFHVVWRWKHIRRG¿UHZRRGDQGLQGLJHQRXVPHGLFLQHV
WKDWWKHUHOLHGRQIURPZKLFKKDVDIIHFWHGERWKWKHLU
OLYHOLKRRGVDQGWKHLUORFDOFXOWXUHDQGFXVWRPV*UDYH
VLWHVKDYHEHHQGHVWURHGLQWKHFRQVWUXFWLRQRI
PLQH¶V
2FFXSDWLRQDO6DIHWDQG+HDOWKLVDKXPDQULJKWV
LVVXH:RUNHUVKDYHGLHGRQ5LR7LQWRRSHUDWLRQV
VL[WHHQEWKHODVWFRXQWLQWKHODVW¿QDQFLDOHDUE
5LR7LQWR¶VRZQDGPLVVLRQ$OUHDG5|VVLQJ0LQHKDV
UHSRUWHGWKUHHIDWDOLWLHVLQ4RI
The Company is also
accused of maintaining a
well-armed ³private army´
to handle labour or civil
unrest at the mine and that
civilians were killed by the
military, assisted by the
mine's security forces.
FACT 4 | ON ENVIRONMENT STEWARDSHIP
5LR7LQWRKDVQHJDWLYHODIIHFWHGWKHHQYLURQPHQWDGMDFHQWWRPRVWRILWVRSHUDWLRQVLQ$IULFDPDLQOEHFDXVHPRVW
$IULFDQVWDWHVKDYHXQGHUGHYHORSHGDQGZHDNJRYHUQDQFHDQGLQVWLWXWLRQV
7KH/RQGRQ0LQLQJ1HWZRUNKDVUHSRUWHGRQDUHFHQWLQYHVWLJDWLRQEWZR'XWFKRUJDQL]DWLRQVRQWKHQDWXUH
DQGLPSDFWVRIWKHXUDQLXPLQGXVWULQ6RXWK$IULFD1DPLELDDQGWKHHQWUDO$IULFDQ5HSXEOLFGHVFULELQJKRZ
PXOWLQDWLRQDOXUDQLXPPLQLQJFRPSDQLHVDUHJHQHUDOOQRWKHOGDFFRXQWDEOHIRUWKHLUVRFLDODQGHQYLURQPHQWDO
SHUIRUPDQFHDW$IULFDQRSHUDWLRQVDQGKRZJRYHUQPHQWVDQGSRSXODWLRQVDUHVWUXJJOLQJZLWKDODFNRINQRZOHGJH
DQGPHDQVWRH[HUWLQÀXHQFHRYHUFRPSDQLHVDQGWRDGGUHVVLUUHVSRQVLEOHFRUSRUDWHEHKDYLRXU
7KHLQYHVWLJDWLRQE6202DQG:,6(UHSRUWVRQKRZ1DPLELDQ1*2VPRVWIDPLOLDUZLWK5LR7LQWR¶V5|VVLQJ
0LQLQJRSHUDWLRQKDYHKHDUGDERXWSROOXWLRQFRPSODLQWVIURPFRPPXQLWLHV
6RXWK$IULFD¶V5LR7LQWR3DODERUDRSHUDWLRQKDVFRQWDPLQDWHGWKHELRGLYHUVLWRIWKH.UXJHU1DWLRQDO3DUNZKHUH
IDXQDDQGÀRZHUKDVEHHQDIIHFWHGDQGKRZVRPHRIWKHSDUNVJDPHV¶VSHUPDQGUHSURGXFWLRQKDYHEHHQDIIHFWHG
Workers in Mozambique.
16. | RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0(
Rio Tinto's (un) sustainable footprint in Africa
,Q$IULFDDOLWDQRIODERXUFRPPXQLWVRFLDOHQYLURQPHQWDODQGJRYHUQDQFHSUREOHPVSHUYDGH5LR2SHUDWLRQV
(YHQZKHUH5LR7LQWRRSHUDWHVZLWKVRPHVHPEODQFHRIGHFHQFDVLQ6RXWK$IULFDWKHDIRUHPHQWLRQHGSUREOHPV
QRWZLWKVWDQGLQJLWLVODUJHOEHFDXVH5LR7LQWRFDQQRWJHWDZDZLWKZKROHVDOHSOXQGHUEHFDXVHRIWKHOHJLVODWLYH
DQGUHJXODWRUVDIHJXDUGVDQGWKHSRZHUDQGLQÀXHQFHRIWKHWUDGHXQLRQVDQGFLYLOVRFLHWEURDGO
EXAMPLES OF COUNTRY EXPERIENCES
SOUTH AFRICA:
5LR7LQWRKDVDGHSORUDEOHKLVWRUDQGFRQVFLRXVOWRRNDGYDQWDJHRIWKHSROLWLFDOFOLPDWHGXULQJ$SDUWKHLGDVLWGLG
LQ1DPLELDDQGHOVHZKHUHDFURVVWKHZRUOGZKHUHUHSUHVVLYHUHJLPHVUHLJQHGRQVLVWHQWZLWKWKHSUR¿WPRWLYHDW
DOOFRVWV5LR7LQWRFRQWLQXHGWRXQGHUSDLWVEODFNZRUNHUVFRPSDUHGWRWKHLUZKLWHFRXQWHUSDUWV
NAMIBIA:
6LPLODUOLQ1DPLELD5LR7LQWRWRRNDGYDQWDJHRIWKHSROLWLFDOFOLPDWHWRYLVLWXSRQLWVEODFNZRUNHUVGLVFULPLQDWRU
ORZZDJHVDQGDSSDOOLQJZRUNLQJDQGOLYLQJFRQGLWLRQV³DNLQWRVODYHU´
4000,1()257'$83+,10$'$*$6$5
5LR7LQWRRSHUDWHVDQLOPHQLWHPLQHRQWKHHDVWFRDVWRIWKHLVODQG7KHHQWLWRQWKHJURXQG4,70DGDJDVFDU
0LQHUDOV6$LVDMRLQWYHQWXUHEHWZHHQ5LR7LQWR¶VZKROORZQHGDQDGLDQVXEVLGLDU4,7)HUHW7LWDQH
19. 7KHPLQHUHSRUWHGOFRQWDLQVDWOHDVWPLOOLRQWRQVRI
LOPHQLWHGHSRVLWVIRXQGLQPLQHUDOVDQGVLWFRXOGEHRSHUDWLRQDOIRUXSWRHDUV
7KRXVDQGVRIORFDOSHRSOHUHSRUWHGOZHUHGLVSODFHGEWKHPLQHGHYHORSPHQWDQGPDQUHFHLYHGHLWKHU
LQDGHTXDWHFRPSHQVDWLRQRUQRFRPSHQVDWLRQDWDOOIRUWKHLUFXVWRPDUODQGULJKWV/RFDOSHRSOHUHSRUWWKDW5LR
7LQWRKDVQRWKLUHGDVPDQZRUNHUVIURPDPRQJWKHORFDOSRSXODWLRQDVLWSURPLVHGGHSULYLQJWKHPRIMREVDQG
LQFRPHWKHGHVSHUDWHOQHHG,QDGGLWLRQWKHLQÀX[RIZRUNHUVIURPHOVHZKHUHKDVLQFUHDVHGGHPDQGIRUIRRG
DQGKRXVLQJGULYLQJSULFHVXSEHRQGZKDWORFDOUHVLGHQWVFDQDIIRUG
5,27,1729$/(5,9(56'$/(2$/02=$0%,48(
5LR7LQWRVDVLWV5LYHUVGDOHFRDOGHYHORSPHQWLQFHQWUDO0R]DPELTXHZLOOHQKDQFHWKHHFRQRPRIWKH(DVW
$IULFDQFRXQWUIRUWKHQH[WHDUV³,Q0R]DPELTXHWKH5LYHUVGDOHDFTXLVLWLRQUHQDPHG5LR7LQWRRDO
0R]DPELTXHSURYLGHVDQRSSRUWXQLWIRUPRUHWKDQHDUVRIVXVWDLQDEOHJURZWKZLWK%HQJD6WDJH2QHRQ
WUDFNWREHFRPPLVVLRQHGEHDUHQG´5LR7LQWRVDLGLQDVWDWHPHQWLQ6HSWHPEHU,WKDLOHG5LR7LQWRRDO
0R]DPELTXHDVDZRUOGFODVVTXDOLWSURMHFW5LR7LQWRKDGDFTXLUHGWKHSURMHFWLQ$XJXVWIRUDERXWELOOLRQ
+RZHYHULQ)HEUXDUWKHLQGHSHQGHQW1*26RXWKHUQ$IULFD5HVRXUFH:DWFKVDV5LR7LQWRDQGLWVSDUWQHU
9DOHDUHPRYLQJYLOODJHUVWRSRRUODQGIDUIURPMREVWRPDNHZDIRUFRDOSURMHFWVLQFHQWUDO0R]DPELTXH/RFDO
HQWUHSUHQHXUVDUHDOVREHLQJVLGHOLQHGVDVWKHRUJDQL]DWLRQZKLFKPRQLWRUVWKHLPSDFWRIPLQLQJDFURVVWKHUHJLRQ
'UODXGH.DEHPEDDQGDPLOR1KDQFDOHIRXQGVRPHNHIDLOLQJVRIWKHFRPSDQLHV¶GHHSOSUREOHPDWLF
UHVHWWOHPHQWSURJUDPPHLQFOXGLQJ
Dividing the original communities by resettling workers close to the mine and dumping all the other
people over 40km away and far from the main road. “The impression this model gives,” says the report,
“is that uneducated and unemployed members of a community can be dumped anywhere...”
Moving families to the new sites even though construction work had not been completed and basic
services such as water and electricity were not in place. In Mualadzi, people were resettled before the
promised schools or clinic had been built;;
Constructing houses that are already cracking just a few months later;;
Not providing the promised paved roads;;
3URYLGLQJLQVXI¿FLHQWODQGIRUVXEVLVWHQFHIDUPLQJLQDQDUHDZKHUHWKHVRLOVDUHQRWSDUWLFXODUOIHUWLOH
or productive and where the same land is also sometimes claimed by other communities;; and
Not consulting widely enough with the affected people, who claim to have had very little knowledge
about the resettlement program.
7KHUHVHDUFKHUVVWXGLHGUHVHWWOHPHQWHIIRUWVE5LR7LQWRDQG9DOHVLQFHWKHEHJDQPLQLQJLQ0R]DPELTXH¶V
7HWHSURYLQFH
20. RIO TINTO IN AFRICA */2%$/,7,=(12525325$7(6+$0( |
7KHVDPHZHHNWKHUHSRUWZDVUHOHDVHGKXQGUHGVRISURWHVWHUVHQUDJHGDWWKHZDWKHKDYHEHHQUHVHWWOHG
EORFNHGWKHUDLOZDOLQHWKDWWUDQVSRUWVFRDOIURPWKHPDVVLYHQHZPLQHVLQ7HWH3URYLQFHWRWKHFRDVW7KH
GHPDQGHGWKDWWKHFRPSDQLHVIXO¿OOWKHLUREOLJDWLRQVWRWKHWKRXVDQGVRISHRSOHZKRKDGEHHQPRYHGIURPWKHLU
ODQGVWRPDNHZDIRUWKHPLQHV
LOM-PANGER DAM, CAMEROON:
,QWKH:HVW$IULFDQQDWLRQRIDPHURRQ5LR7LQWR$OFDQLVZRUNLQJZLWKWKHJRYHUQPHQWWRDFFHOHUDWHWKH
FRQVWUXFWLRQRIWKHKXJH/RP3DQJDU'DPDSURMHFWWKDWUHSRUWHGOZLOOGLVSODFHDQHVWLPDWHGSHRSOH7KH
JRYHUQPHQWDSSDUHQWOLVEDFNLQJWKHGDPEHFDXVHWKHFRXQWULVLQGHVSHUDWHQHHGRIQHZHQHUJVXSSOLHVDQG
KHDYLOGHSHQGHQWRQKGURHOHFWULFSRZHU5LR7LQWR$OFDQWKHFRPSDQ¶VDOXPLQXPJURXSZDQWVWKHSRZHUIRUD
QHZVPHOWHUSURMHFW5LR7LQWR$OFDQDOUHDGSDUWQHUVZLWKWKHJRYHUQPHQWLQ$OXFDPDQDOXPLQXPIDFLOLW
7KH%DQN,QIRUPDWLRQHQWHUDQ1*2ZKLFKSDUWQHUVZLWKFLYLOVRFLHWLQGHYHORSLQJDQGWUDQVLWLRQFRXQWULHV
WRLQÀXHQFHWKH:RUOG%DQNDQGRWKHULQWHUQDWLRQDO¿QDQFLDOLQVWLWXWLRQVVDVWKHGDPZRXOGKDYH³VLJQL¿FDQW
HQYLURQPHQWDODQGVRFLDOLPSDFWV´LQFOXGLQJ³ÀRRGLQJRYHUKHFWDUHVRIWURSLFDOKDUGZRRGIRUHVWWKUHDWHQLQJ
WKH'HQJ'HQJUHVHUYHDQGLWVELRGLYHUVLWDQGVXEPHUJLQJDSRUWLRQRIWKHKDGDPHURRQRLOSLSHOLQH´
,QDGGLWLRQWKH%,QRWHGWKDWWKHGDPSURMHFW³DSSHDUVWRUHVSRQGWRWKHHQHUJGHPDQGVRIWKHH[SDQGLQJ
DOXPLQXPVHFWRUUDWKHUWKDQWKHHQHUJQHHGVRIWKHPDMRULWRIWKHFRXQWU¶VSRSXODWLRQODFNLQJDFFHVVWR
HOHFWULFLW´5HSRUWHGOWKH$OXFDPVPHOWHUDOUHDGFRQVXPHVDERXWKDOIRIDPHURRQ¶VHOHFWULFLWDQGZDQWVWR
PRUHWKDQGRXEOHSURGXFWLRQZKLOHUHFHLYLQJIDYRXUDEOHHOHFWULFLWUDWHVIDUEHORZZKDWUHVLGHQWLDOXVHUVSD
$FFRUGLQJWRWKH:RUOG%DQNWKHGUDIW(QYLURQPHQWDO$VVHVVPHQWIRUWKHGDP³VWDWHVWKDWWKHSURMHFWZLOOKDYH
VLJQL¿FDQWHQYLURQPHQWDOLPSDFWSDUWLFXODUORQQDWXUDOKDELWDWVDQGSKVLFDOFXOWXUDOKHULWDJHDVZHOODVKHDOWK
LPSDFWVVSUHDGRIPDODULDDQGRWKHUGLVHDVHV