August 2008

From the Managing Director - August 2008

EMISSIONS TRADING

The Rudd Government has committed to introducing emissions trading for Australia from 2010. To inform the debate around policy making, two major reports were released in July - the Government Green paper and the Garnaut draft report.
 
The Government Green paper is a key step in the development of emissions trading legislation and provides the first direction on a future scheme but is missing key details, such as the proposed cost of carbon.  The Garnaut draft report has recommended an emissions trading scheme which would ulitimately change the behaviour of greenhouse gas emittors.
 
For more information about how emissions trading will affect Rio Tinto and updates on Government policy, visit the climate change page on the Rio Tinto Coal Australia portal.
 
GROWTH

Our CEO Tom Albanese recently reinforced the key priorities for our business for the short and medium term. In the next six months, we will heighten our focus on safety, delivering on our promises and growth.
 
The demand for our product is higher than ever and the demand is set to continue. We have made commitments to our customers and our shareholders, and we must deliver on these without compromising safety.
 
In my last Mine Matters update, I highlighted our plans to more-or-less double production by 2015. To do this, all of us need to focus on prioritising our work to deliver value quickly, to stop or delay non-critical work and to re-evaluate existing projects to ensure they deliver an impact in the short term.
 
Our existing operations will be the key to our expansion; we have already started the initial boxcut at Clermont Mine and we are progressing government approvals for the Kestrel Mine extension.
 
I am conscious that many communities are eager to learn whether new or expanded operations will be developed in their local area and in many cases our employees are members of these communities. Rest assured we will consult widely with our local communities and our employees as our plans progress; we will provide regular updates to our local communities and work with them to understand how our operations can work in partnership with them.
 
SAFETY

After a disappointing April for safety on our sites, the number of injuries on site was lower in May and there were no Lost Time Injuries for the month. Unfortunately in June this performance was not repeated and already this year we have had 11 Lost Time Injuries.
 
Rio Tinto Coal Australia has recently introduced a new safety leadership development programme called The Goal is Zero. You will soon start to see posters and billboards promoting the new campaign. The Goal is Zero reminds us of the many reasons to remain safe, both inside and outside the workplace. When you consider the importance of safety, the importance of evaluating each task for its inherent risks, I encourage you also to consider the importance of these images of your colleagues, your friends and your families. That is why the goal is zero.