Rio Tinto (RTP)

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See all Bulls Reasons Bulls: Reasons To Buy Rio just increased the iron ore price by 97% 100% agree Rio just increased the iron ore price by 97% Rio and Baosteel Group Corp., China’s largest steelmaker, announced they had reached an agreement to raise iron-ore contract prices by 80% to 97%. That bested Brazil’s Vale (ADR: RIO) which earlier secured a 70% increase for the price of its ore. It was the first time... read more View or Edit Reason 1 votes 100% agree Bears: Reasons To Sell Feeling Bearish? Be the first to explain why this would make a poor investment Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

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Rio Tinto, Limited and Rio Tinto, PLC, collectively known as Rio Tinto, operate as a single business organization engaged in exploring, mining, and processing the earth's mineral resources. Rio Tinto, PLC is headquartered in London, United Kingdom but reports its financials in U.S. dollars. Rio Tinto Limited is incorporated in Australia. The company produces a broad range of metals and minerals sold in a variety of markets, including alumina, aluminium, bauxite, borates, coal, copper, diamonds, gold, iron ore, lead, molybdenum, nickel, salt, silver, talc, tin, titanium dioxide, uranium, and zinc. Rio Tinto's business activities are spread across the world but the company's presence is strongly based in Australia and North America and it has significant businesses in South America, Asia, Europe, and southern Africa. The group's business includes open pit and underground mines, mills, refineries, and smelters as well as a number of research and service facilities.

Rio Tinto's main businesses are broken down into six different groups:

The Copper group is composed of Kennecott Utah Copper in the U.S. and has interests in the copper mines of Escondida in Chile (30%), Grasberg in Indonesia (40%), Northparkes in Australia (80%), Palabora in South Africa (58%), and the Resolution Copper project in the U.S. (55%). The group also has management responsibility for Kennecott Minerals Company in the U.S., which manages the Greens Creek mine in Alaska, U.S. (Rio Tinto's share is 70%) that produces silver, zinc, lead and gold, and the Cortez/Pipeline gold joint-venture in Nevada, U.S. (Rio Tinto's share is 40%). This group also produces gold and molybdenum as significant coproducts, and contributed 28% of total gross revenue in 2006.

The Iron Ore group wholly owns Hamersley Iron in Western Australia. Hamersley wholly owns six mines and also operates the 60%-owned Channar and 54%-owned Eastern Range mines. It also owns an effective 53% interest in Robe River Iron Associates' two mines in Western Australia, and a 59% interest in the Iron Ore Company of Canada. This segment contributed 27% of total gross revenue in 2006.

The Energy group's coal interests are in Australia, Indonesia, and the U.S. It supplies the internationally traded and domestic U.S. and Australian markets. It also includes Rossing in Namibia (Africa) and Energy Resources of Australia. Both companies supply uranium oxide for use in electricity generation. This segment contributed 17% of total gross revenue in 2006.

The Aluminuim group is made up of its wholly-owned, integrated aluminium subsidiary, Yarwum (previously known as Comalco Alumina Refinery). Yarwum is a major Australia-based supplier of bauxite, alumina, and primary aluminium to world markets. This segment contributed 14% of total gross revenue in 2006.

The Industrial Minerals group produces borates, industrial salt, talc, and titanium dioxide feedstock. Rio Tinto Borax, Rio Tinto Iron & Titanium, Luzenac's talc operations and Dampier Salt, its principal businesses, are leading suppliers of their respective products. This segment contributed approximately 10% of total gross revenue in 2006.

The Diamonds, Gold, and Other group includes diamond interests in Australia, Canada, and Zimbabwe, diamond sales offices in Belgium and India, and gold mines in Brazil, Indonesia, Papua New Guinea, the U.S., and Zimbabwe. The Diamonds group include 100%-owned Argyle (Australia-based), 60%-owned Diavik (Canada-based) and 78%-owned Murowa (Zimbabwe based) mines. This segment contributed 4% of total gross revenue in 2006.

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