December 2008

From the managing director - December 2008

This is my last column for the year, and what an extraordinary year it has been. We started with floods and adversity but have gone on to achieve strong production, coupled with good safety performance.

I am very pleased to report that in October we saw our lowest rate of injury for the 12 months to date. Clearly it is within our ability to always strive for and achieve the best outcomes. So well done, and thank you to all for your efforts.

Although we have been achieving some very good results through good performance, there are external factors that we clearly cannot ignore. I am conscious that no employee could read a newspaper, or watch the television news, and not have questions about what the current global financial situation means for their personal, financial and employment situations.

There is no doubt this is a major upheaval. Rio Tinto has already announced we have seen some slowdown in Chinese growth, which will impact all resource companies with exposure to the global market.

The tough world economic situation and the uncertain external environment means it is prudent common sense to keep an even closer watch on our costs and spending. We also need to continually reassess our place and our business in the changing market scenario. This will assist us to weather this economic storm and be able to respond quickly and effectively to changing conditions when needed.

Over the coming weeks and months, Rio Tinto is likely to remain the subject of much media attention because of the issues outlined above, and because of BHP Billiton’s pre-conditional offer, which remains active. This can be unsettling so it is important that we focus on what we can control.

We know that no matter what external factors are in play, achieving the most efficient production and getting our product to market in a way that satisfies our customers will always be important. That is why I encourage all of our employees to continue their fine work in the day to day operation of our mines, and the additional effort they put in to business improvement and efficiency projects which have been successful this year.

Finally, the safety and wellbeing of our colleagues and ourselves is the most important factor we can control. Regardless of the external environment, the need to keep all of our employees and visitors safe will remain our number one concern.

As we approach the holiday season, I encourage you to remember the many reasons we aim to avoid injury and illness at site: our families at home, days-off with our colleagues and friends, and the years to come. That is why now, as always, we must aim for zero injuries.

In summary, I believe 2008 has been a good year for us. I believe this is the result of 100 per cent commitment from everybody. I am very happy to acknowledge and congratulate every individual on their efforts during the year.

I wish you all a safe and happy Christmas and new year.

Following Mine Matters going to print, managing director Hubie van Dalsen resigned his position from Rio Tinto Coal Australia. Hubie departed from Rio Tinto and from the Coal & Allied board on 25 November 2008. Hubie made a significant contribution to Rio Tinto throughout the 19 years he worked for the organisation and an announcement on a replacement for the managing director role will be made in due course. Chief financial officer Rob Light will be acting managing director.