SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 20-F

(Mark One)

o		Registration statement pursuant to Section 12 (b) or 12(g) of the Securities Exchange Act of 1934

or

x		Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

or

o		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from:                      to                     

or

o		Shell company report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of event requiring this shell company report                     

Commission file number: 1-10533		Commission file number: 0-20122
Rio Tinto plc		Rio Tinto Limited
		ABN 96 004 458 404
(Exact name of Registrant as specified in its charter)		(Exact name of Registrant as specified in its charter)
England and Wales		Victoria, Australia
(Jurisdiction of incorporation or organisation)		(Jurisdiction of incorporation or organisation)
2 Eastbourne Terrace		Level 33, 120 Collins Street
London, W2 6LG, United Kingdom		Melbourne, Victoria 3000, Australia
(Address of principal executive offices)		(Address of principal executive offices)

Julie Parent, T: 514-848-8519, E: julie.parent@riotinto.com
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class		Name of each exchange		Name of each exchange		Title of each class
		on which registered		on which registered
American Depositary Shares*		New York Stock Exchange
Ordinary Shares of 10p each**		New York Stock Exchange
7.125% Notes due 2013		New York Stock Exchange		New York Stock Exchange		7.125% Notes due 2013
5.875% Notes due 2013		New York Stock Exchange		New York Stock Exchange		5.875% Notes due 2013
6.500% Notes due 2018		New York Stock Exchange		New York Stock Exchange		6.500% Notes due 2018
7.125% Notes due 2028		New York Stock Exchange		New York Stock Exchange		7.125% Notes due 2028
8.900% Notes due 2014		New York Stock Exchange		New York Stock Exchange		8.900% Notes due 2014
9.250% Notes due 2019		New York Stock Exchange		New York Stock Exchange		9.250% Notes due 2019

*		Evidenced by American Depositary Receipts. Each American Depositary Share Represents one Rio Tinto plc Ordinary Shares of 10p each.
**		Not for trading, but only in connection with the listing of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission

Title of each class		Title of each class
None		Shares

None		None

Indicate the number of outstanding shares of each of the Issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

Title of each class

Number

Number

Title of each class

Ordinary Shares of 10p each

1,529,003,871

606,831,240

Shares

DLC Dividend Share of 10p

1

1

DLC Dividend Share

Special Voting Share of 10p

1

1

Special Voting Share

          Indicate by check mark if the registrants are well-known seasoned issuers, as defined in rule 405 of the Securities Act.

Yes x     No o

          If this report is an annual or transition report, indicate by check mark if the registrants are not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes o     No x

          Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

          Indicate by check mark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days:

Yes x     No o

          Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).* Yes x No o

          * This requirement does not apply to the registrant until its fiscal year ending December 31, 2011.

          Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, or non-accelerated filers. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x		Accelerated filer o		Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting companyo

          Indicate by check mark which basis of accounting the registrants have used to prepare the financial statements included in this filing:

          US GAAP o     International Financial Reporting Standards as issued by the International Accounting Standards Board x     Other o

          If ‘Other’ has been checked in response to the previous question, indicate by check mark which financial statement item the registrants have elected to follow:

Item 17 o     Item 18 o

          If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o     No x

 

 

EXPLANATORY NOTE

The Rio Tinto Group is a leading international mining group, combining Rio Tinto plc and Rio Tinto Limited in a dual listed companies (‘DLC’) merger which was designed to place the shareholders of both Companies in substantially the same position as if they held shares in a single enterprise owning all of the assets of both Companies. This annual report on Form 20-F, including the financial statements, is presented on a combined basis for the Rio Tinto Group.

TABLE OF CONTENTS

				Page
PART I
Item 1.		Identity of Directors, Senior Management and Advisers			4
Item 2.		Offer Statistics and Expected Timetable			4
Item 3.		Key Information			4
Item 4.		Information on the Company			11
Item 4A.		Unresolved Staff Comments			46
Item 5.		Operating and Financial Review and Prospects			46
Item 6.		Directors, Senior Management and Employees			94
Item 7.		Major Shareholders and Related Party Transactions			143
Item 8.		Financial Information			144
Item 9.		The Offer and Listing			145
Item 10.		Additional Information			146
Item 11.		Quantitative and Qualitative Disclosures about Market Risk			156
Item 12.		Description of Securities other than Equity Securities			156
PART II
Item 13.		Defaults, Dividend Arrearages and Delinquencies			157
Item 14.		Material Modifications to the Rights of Security Holders and Use of Proceeds			157
Item 15.		Controls and Procedures			158
Item 16A.		Audit Committee Financial Expert			158
Item 16B.		Code of Ethics			158
Item 16C.		Principal Accountant Fees and Services			158
Item 16D.		Exemptions from the Listing Standards for Audit Committees			159
Item 16E.		Purchases of Equity Securities by the Issuer and Affiliated Purchasers			159
Item 16F		Change in Registrant’s Certifying Accountant			160
Item 16G		Corporate Governance			160
PART III
Item 17.		Financial Statements			160
Item 18.		Financial Statements			160
Item 19.		Exhibits			160
Exhibit 1.1
Exhibit 1.2
Exhibit 3.2
Exhibit 3.3
Exhibit 3.4
Exhibit 4.15
Exhibit 8.1
Exhibit 12.1
Exhibit 13.1
Exhibit 15.1
Exhibit 15.2

PART I

Item 1.		Identity of Directors, Senior Management and Advisers

Not applicable.

Item 2.		Offer Statistics and Expected Timetable

Not applicable.

Item 3.		Key Information

The selected consolidated financial data below has been derived from the historical audited consolidated financial statements of the Rio Tinto Group. The selected consolidated financial data should be read in conjunction with, and qualified in their entirety by reference to, the 2009 Financial statements and notes thereto. The financial statements as included on pages A-1 to A-82 have been prepared in accordance with International Financial Reporting Standards both as adopted by the EU (‘EU IFRS’) and as issued by the International Accounting Standards Board (‘IFRS’).

RIO TINTO GROUP

Income Statement Data
For the years ending 31 December		2009				2008				2007				2006				2005
Amounts in accordance with IFRS		US$m				US$m				US$m				US$m				US$m
Consolidated revenue			41,825				54,264				29,700				22,465				19,033
Group operating profit (a)			7,506				10,194				8,571				8,974				6,922
Profit for the year from continuing operations			5,784				5,436				7,746				7,867				5,498
Loss after tax from discontinued operations			(449	)			(827	)			—				—				—
Profit for the year			5,335				4,609				7,746				7,867				5,498
Basic earnings per share (b)
Profit from continuing operations (US cents)			301.7				286.8				464.9				456.2				312.6
Loss after tax from discontinued operations (US cents)			(25.5	)			(52.7	)			—				—				—
Profit for the year per share (US cents)			276.2				234.1				464.9				456.2				312.6
Diluted earnings per share (b)
Profit from continuing operations (US cents)			300.7				285.5				462.9				454.3				311.6
Loss after tax from discontinued operations (US cents)			(25.4	)			(52.4	)			—				—				—
Profit for the year per share (US cents)			275.3				233.1				462.9				454.3				311.6

Dividends per share		2009				2008				2007				2006				2005
Dividends declared during the year (b)
US cents
– interim			—				55.6				42.5				32.7				31.5
– final and special			45.0				55.6				68.7				52.3				124.0
UK pence
– interim			—				29.6				20.9				17.5				17.8
– final and special			28.8				37.9				35.3				26.7				69.8
Australian cents
– interim			—				63.3				49.6				42.9				41.4
– final and special			51.6				83.0				76.1				67.8				163.9
Dividends paid during the year (US cents) (b)
– ordinary and special			55.6				124.3				94.8				156.7				68.3
Weighted average number of shares — basic (millions) (b)			1,763.6				1,570.1				1,572.9				1,630.5				1,668.2
Weighted average number of shares — diluted (millions) (b)			1,769.6				1,577.3				1,579.6				1,637.1				1,673.9
Statement of Financial Position Data										Restated (c)
at 31 December		2009				2008				2007				2006				2005
Amounts in accordance with IFRS		US$m				US$m				US$m				US$m				US$m
Total assets			97,236				89,616				101,091				34,494				29,803
Share capital / premium			9,344				5,826				3,323				3,190				3,079
Total equity / Net assets			45,925				22,461				26,293				19,385				15,739
Equity attributable to Rio Tinto shareholders			43,831				20,638				24,772				18,232				14,948

Notes
(a)		Group operating profit under IFRS includes the effects of charges and reversals resulting from impairments and profit and loss on disposals of interests in businesses. Group operating profit amounts shown above exclude equity accounted operations, finance items, tax and discontinued operations.
(b)		The rights issues were at a discount to the then market price. Accordingly, earnings per share and dividends per share for all periods up to the date on which the shares were issued have been adjusted for the bonus element of the issue. The bonus factor for Rio Tinto plc was 1.2105 and for Rio Tinto Limited was 1.2679.
(c)		The 31 December 2007 balance sheet has been restated for the revisions to Alcan’s fair value accounting which were finalised in 2008.

The following describes some of the material risks that could affect Rio Tinto. There may be additional risks unknown to Rio Tinto and other risks, currently believed to be immaterial, which could turn out to be material. These risks, whether they materialise individually or simultaneously, could significantly affect the Group’s business and financial results. It also outlines the exposure to risk without explaining the detail of how each is managed and mitigated, or how some risks could result in either a positive (upside) or negative (downside) impact. They should also be considered in connection with any forward looking statements in this document and the cautionary statement on page 10.

Commodity prices and demand for the Group’s products are cyclical and strongly influenced by world economic growth. This is particularly so for our key customers, especially in the US and Asia (notably China). There is potential volatility in short to medium term commodity prices as various national stimulus packages are reduced. Muted consumer spending may result from concerns over unemployment. The Group’s normal policy is to sell its products at prevailing market prices and not to enter into price hedging arrangements. The recent improvement in commodity prices and demand for the Group’s products may not remain as strong, which would have an impact on Group revenues, earnings, cash flows, asset values and growth.

The Group’s iron ore is sold to Chinese customers predominantly at fixed prices rather than at spot rates. The 2009 benchmark prices were never officially agreed. Failure to agree on prices remains a source of tension between China and all the major iron ore suppliers.

     The slowdown of China’s economy in 2009 contributed to a contraction in demand for aluminium and lower aluminium prices. If Chinese customers’ demand for the Group’s products fails to continue to recover or Chinese customers source such products from elsewhere, the Group’s business, financial condition and prospects could be affected.

The Group uses US dollars to denominate most of its sales, hold surplus cash, finance its operations, and present its external and internal results. Although many costs are incurred in US dollars, significant costs are influenced by the local currencies of the countries where the Group operates, principally the Australian dollar, Canadian dollar and Euro. The Group’s normal policy is to avoid hedging arrangements relating to changes in foreign exchange rates. Appreciation in the value of these currencies against the US dollar or prolonged periods of exchange rate volatility may adversely affect the Group’s business results.

The Group has operations in jurisdictions with varying degrees of political, legal and commercial stability. Commercial instability can be influenced by bribery and corruption in their various guises. Administrative change, policy reform, and changes in law or governmental regulations can result in civil unrest, increased regulation and potentially expropriation, or nationalisation. Renegotiation or nullification of existing agreements, leases and permits, changes in fiscal policies (including increased tax or royalty rates) or currency restrictions as well as significantly increased costs or impediments to operation are all possible consequences. Such instability could have an adverse effect on the profitability, the ability to finance or, in extreme cases, the viability of an operation.

     Some of the Group’s current and potential operations are located in or near communities that may regard the operation as being detrimental to their environmental, economic or social circumstances. Community reaction could have an adverse impact on the cost, profitability, ability to finance or even the viability of an operation. Such events could lead to disputes with national or local governments or with local communities and give rise to reputational damage. If the Group’s operations are delayed or shut down as a result of political and community instability, its revenue growth may be constrained and the long term value of its business could be adversely impacted.

The Group operates in several countries where title to land and rights in respect of land and resources (including indigenous title) may be unclear and may lead to disputes over resource development. Such disputes could disrupt or delay relevant mining projects, impede the Group’s ability to develop new mining properties, and may have an adverse effect on the Group’s results of operations or its prospects.

The Group’s operations are resource intensive and, as a result, its costs and net earnings may be adversely affected by the availability or cost of energy, water, fuel or other key inputs. If the prices of key inputs rise significantly more than expected, or if the Group experiences interruptions in, or constraints on, its supply of key inputs, the Group’s costs could increase and its results could be adversely affected.

Business combinations entail a number of risks including the effective integration of acquisitions (including the realisation of synergies), significant one time write-offs or restructuring charges, and unanticipated costs and liabilities. All of these may be exacerbated by the diversion of management’s attention away from other ongoing business concerns. The Group may also be liable for the past acts, omissions or liabilities of companies or businesses or properties it has acquired, which may be unforeseen or greater than anticipated.

The Group requires substantial capital to invest in greenfield and brownfield projects, and to extend the life and capacity of its existing operations. Reductions in capital expenditure (including sustaining capital) have resulted in the cancellation, slowing or deferral of projects until market conditions and commodity prices recover, and sufficient cash is available for investment. If significant variations in commodity prices or demand for our products occurs, the Group may reduce its capital expenditure further, which may negatively impact the timing of its growth and future prospects.

     With the volatility of the commodity markets, the Group’s ability to take advantage of improvements may be constrained by earlier capital expenditure restrictions and the long term value of its business could be adversely impacted.

The Group develops new mining properties and expands its existing operations as a means of generating shareholder value. The Group seeks to identify new orebodies and mining properties through its exploration programme and has also undertaken the development or expansion of other major operations. There is a high degree of competition for opportunities to develop such orebodies. Certain competitors, such as state run interests, have access to significant resources and may be motivated by political or other non economic factors. The Group may be unable to find willing and suitable joint venture partners to share the cost of developing large projects. There is no assurance, therefore, that the Group’s investment in exploration and project development will be recouped, or that depleted ore reserves will be replaced.

Rio Tinto and BHP Billiton have proposed a production joint venture covering the entirety of both companies’ Western Australian iron ore assets. The binding agreements on the proposed joint venture were signed on 5 December 2009, and cover all aspects of how the joint venture would operate and be governed. The estimated US$10 billion net present value of the synergies may not be realised or may take longer to realise than expected. The proposed production joint venture requires regulatory approvals in a number of jurisdictions which may not be secured. Regulators may require the Group to relinquish ownership or control over certain assets prior to approving the production joint venture. Any or all of these could reduce the value anticipated from forming the production joint venture or result in a failure to implement the venture as currently envisaged.

An asset impairment charge may result from the occurrence of unexpected adverse events that impact the Group’s expected performances. In accordance with IFRS, the Group does not amortise goodwill but rather tests it annually for impairment: such impairments cannot be reversed.

     The Group will continue to test goodwill and may, in the future, record additional impairment charges. This could result in the recognition of impairment provisions (which are non cash items) that could be significant and could have an adverse effect on the Group’s reported results.

Certain of the Group’s businesses sponsor defined benefit pension plans. The pension expense reported for these plans is sensitive to the assumptions used to value the pension obligations, and also to the underlying economic conditions that influence the assumptions. The sensitivity of earnings to key assumptions is described in more detail in the Financial review on pages 87 to 93. Changing economic conditions, particularly poor pension investment returns, may require the Group to make substantial cash contributions to its pension plans.

     Actual investment returns achieved compared to the amounts assumed within the Group’s reported pension expense are reported in the table below (amounts for prior years have been adjusted to exclude defined contribution assets as explained in note 50 to the 2009 Financial statements).

     As at 31 December 2009, the Group had estimated pension liabilities (on an IAS19 accounting basis) of US$16.2 billion and assets of US$12.4 billion. After excluding those pension arrangements deliberately operated as unfunded arrangements, representing liabilities of US$1.1 billion, the global funding level for pension liabilities (on an IAS19 basis) was approximately 82 per cent. If the funding level materially deteriorates further, cash contributions from the Group may be needed, subject to local requirements.

Pension plan investment returns

US$ millions		2009				2008				2007				2006				2005
Expected return on plan assets			581				857				438				261				249
Actual return on plan assets			1,472				(2,451	)			309				517				365
Difference between the expected and actual return on plan assets (loss)/gain (US$ million)			891				(3,308	)			(129	)			256				116
Difference as a percentage of plan assets			7	%			(36	%)			(1	%)			5	%			3	%

     Note 50 to the 2009 Financial statements provides detailed information on the financial impact of these plans, including the expected return on assets as used for financial reporting purposes; how actual returns have compared to the expected rate historically; and the level of contributions expected during the year after the statement of financial position date.

     The total provision for post-retirement costs is set out in note 27 to the 2009 Financial statements.

There are numerous uncertainties inherent in estimating ore reserves including subjective judgements and determinations based on available geological, technical, contract and economic information. Assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may result in the reserves ceasing to be economically viable. Ultimately this may result in the reserves needing to be restated. Such changes in reserves could also affect depreciation and amortisation rates, asset carrying values, deferred stripping calculations and provisions for close down, restoration and environmental clean up costs.

Some of the Group’s employees, including employees in non managed operations, are represented by labour unions under various collective labour agreements. The Group may not be able satisfactorily to renegotiate agreements when they expire and may face tougher negotiations or higher wage demands. In addition, existing labour agreements may not prevent a strike or work stoppage, which could have an adverse effect on the Group’s earnings and financial condition.

The Group has invested in and implemented information systems and operational initiatives including new technologies. Some aspects of these technologies are unproven and the eventual operational outcome or viability cannot be assessed with certainty. The costs, productivity, value in securing business opportunities and other benefits from these initiatives, and the consequent effects on the Group’s future earnings and financial results may vary from expectations. If the Group’s technology systems fail to realise the anticipated benefits, there is no assurance that this will not result in increased costs, interruptions to supply continuity, failure of the Group to realise its production or growth plans or some other adverse effect on operational performance.

Mining operations are vulnerable to natural events, including earthquakes, drought, floods, fire, storms and the possible effects of climate change. Operating difficulties such as unexpected geological variations that could result in significant failure, could affect the costs and viability of operations for indeterminate periods, including smelting and refining.

     The Group requires reliable roads, rail networks, ports, power sources and power transmission facilities, water supplies and IT systems to access and conduct its operations. The availability and cost of infrastructure affects capital and operating costs, and the maintenance of planned levels of production and sales. In particular, the Group transports a large proportion of its products by sea. Limitations, or interruptions in, rail or shipping capacity at any port, including as a result of third parties gaining access to the Group’s integrated infrastructure, could impede the Group’s ability to deliver its products on time. This could have an adverse effect on the Group’s business and results of operations.

     The Group uses an extensive information technology system and infrastructure. A significant failure of major parts of the system or malicious actions could result in significant interruption that could affect the Group’s reputation and operating results.

     The Group’s insurance does not cover every potential risk associated with its operations. Adequate coverage at reasonable rates is not always obtainable. In addition, the Group’s insurance may not fully cover its liability or the consequences of any business interruptions such as equipment failure or labour dispute. The occurrence of a significant event not fully covered by insurance could have an adverse effect on the Group’s business, results of operations, financial condition and prospects.

The Group participates in several joint venture arrangements and it may enter into further joint ventures. Although the Group has sought to protect its interests, existing and future joint ventures necessarily involve special risks. Whether or not the Group holds majority interests or maintains operational control in its joint ventures, its partners may:

•		have economic or business interests or goals that are inconsistent with, or opposed to, those of the Group
•		exercise veto rights to block actions that the Group believes are in its or the joint venture’s best interests;
•		take action contrary to the Group’s policies or objectives with respect to its investments; or

•

be unable or unwilling to fulfil their obligations under the joint venture or other agreements, such as contributing capital to expansion or maintenance projects.

     Where projects and operations are controlled and managed by the Group’s partners, the Group may provide expertise and advice but it has limited control with respect to compliance with its standards and objectives. Improper management or ineffective policies, procedures or controls could adversely affect the value of related non managed projects and operations and, by association, damage the Group’s reputation thereby harming the Group’s other operations and access to new assets.

Rio Tinto operates within a complex supply chain depending on suppliers of raw materials, services, equipment and infrastructure to ensure its mines and process plants can operate, and on providers of logistics to ensure products are delivered. Failure of significant components of this supply chain due to strategic factors such as business failure or serious operational factors, could have an adverse effect on the Group’s business and results of operations.

Sustainable development

Rio Tinto’s operations are energy intensive and depend heavily on fossil fuels. There is increasing regulation of greenhouse gas emissions, progressive introduction of carbon emissions trading mechanisms and tighter emission reduction targets, in numerous jurisdictions in which the Group operates. These are likely to raise energy and production costs to a material degree over the next decade. Regulation of greenhouse gas emissions in the jurisdictions of the Group’s major customers and suppliers as well as in relation to international shipping could also have an adverse effect on the demand for the Group’s products.

The Group’s ability to maintain its competitive position and to implement its business strategy is dependent on the services of key engineering, managerial, financial, commercial, marketing and processing people. Loss or diminution in the services of key employees, particularly as a result of an inability to attract and retain staff, or the Group not maintaining a competitive remuneration structure, could have an adverse effect on the Group’s business, financial condition, results of operations and prospects.

     Competition for experienced people with international engineering, mining, metallurgy and geological expertise is high, due to a small pool of individuals against medium to high demand. This may affect the Group’s ability to retain its existing senior management, marketing and technical personnel and to attract qualified personnel on appropriate terms. Similar competition may be felt by the Group’s key contractors and equipment suppliers that, in turn, could affect the Group’s expansion plans.

Close down and restoration costs include the dismantling and demolition of infrastructure and the remediation of land disturbed during the life of mining and operations. Estimated costs are provided for over the life of each operation and updated annually but the provisions might prove to be inadequate due to changes in legislation, standards and the emergence of new restoration techniques. Furthermore the expected timing of expenditure could change significantly due to changes in commodity prices that might curtail the life of an operation. Total provisions at 31 December 2009 amounted to US$6,916 million (2008 restated: US$6,011 million) as set out in note 27 to the 2009 Financial statements. These provisions could prove insufficient compared to the actual cost of restoration, or the cost of remediating or compensating for damage beyond the site boundary. Any underestimated or unidentified close down, restoration and environmental rehabilitation costs could have an adverse effect on the Group’s reputation as well as its asset values, earnings and cash flows.

Rio Tinto operates in an industry that is subject to numerous health, safety and environmental laws, regulations and standards as well as community and stakeholder expectations. The Group is subject to extensive governmental regulations in all jurisdictions in which it operates. Operations are subject to general and specific regulations governing mining and processing, land tenure and use, environmental requirements (including site specific environmental licences, permits and statutory authorisations), workplace health and safety, social impacts, trade and export, corporations, competition, access to infrastructure, foreign investment and taxation. Some operations are conducted under specific agreements with respective governments and associated acts of parliament but unilateral variations could diminish or even remove such rights. Evolving regulatory standards and expectations can result in increased litigation and/or increased costs, all of which can have an adverse effect on earnings and cash flows.

This document contains certain forward looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. The words “intend”, “aim”, “project”, “anticipate”, “estimate”, “plan”, “believes”, “expects”, “may”, “should”, “will”, or similar expressions, commonly identify such forward looking statements.

     Examples of forward looking statements in this Annual report include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this document that are beyond the Group’s control. For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty.

     In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward looking statements which speak only as to the date of this report. Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward looking statements will not differ materially from actual results.

Item 4.		Information on the Company

Rio Tinto is a leading international business involved in each stage of metal and mineral production. The worldwide Group produces aluminium, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide, salt, talc and zircon). With production mainly from Australia and North America, we operate in more than 50 countries. We employ about 102,000 people whose health and safety is a key priority and integral part of placing sustainable development at the heart of every activity. We operate as a global organisation with one set of standards and values, sharing best practices across the Group.

     The Rio Tinto Group combines Rio Tinto plc, which is listed on the London Stock Exchange and headquartered in London, and Rio Tinto Limited, which is listed on the Australian Securities Exchange and has executive offices in Melbourne.

     Businesses include open pit and underground mines, mills, refineries and smelters as well as a number of research and service facilities. The Group consists of wholly and partly owned subsidiaries, jointly controlled assets, jointly controlled entities and associated companies, the principal entities being listed in notes 37 to 40 of the 2009 Financial Statements.

The Group consists of a number of wholly and partly owned subsidiaries, joint ventures and associated companies. Rio Tinto’s management structure is designed to facilitate a clear focus on business performance and is structured into five product groups and two global support groups:

•		Aluminium
•		Copper
•		Diamonds & Minerals
•		Energy
•		Iron Ore
•		Exploration
•		Technology & Innovation

The chief executive of each product group and the global head of each business support group report to the chief executive of Rio Tinto.

Rio Tinto plc and Rio Tinto Limited operate as one business organisation, referred to in this report as Rio Tinto, the Rio Tinto Group or, more simply, the Group. These collective expressions are used for convenience only, since both Companies, and the individual companies in which they directly or indirectly own investments, are separate and distinct legal entities.

     “Limited”, “plc”, “Pty”, “Inc”, “Limitada”, “L.L.C.”, “A.S.” or “SA” have generally been omitted from Group company names,except to distinguish between Rio Tinto plc and Rio Tinto Limited. Financial data in United States dollars (US$) is derived from, and should be read in conjunction with, the 2009 Financial statements. In general, financial data in pounds sterling (£) and Australian dollars (A$) have been translated from the consolidated financial statements and have been provided solely for convenience; exceptions arise where data can be extracted directly from source records. Certain key information has been provided in all three currencies in the 2009 Financial statements.

     Rio Tinto Group sales revenue, profit before finance items and tax, net earnings and operating assets for 2008 and 2009 attributable to the product groups and geographical areas are shown in notes 31 and 32 to the 2009 Financial statements. In the Performance section, operating assets and sales revenue for 2008 and 2009 are consistent with the financial information by business unit in the 2009 Financial statements.

     The tables on pages 25 to 28 show production for 2007, 2008 and 2009 and include estimates of proven and probable ore reserves. Words and phrases, often technical, have been used which have particular meanings; definitions of these terms are in the Glossary on pages 164 to 165. The weights and measures used are mainly metric units; conversions into other units are shown on page 165.

Rio Tinto’s predecessor companies were formed in 1873 and 1905. The Rio Tinto Company was formed by investors in 1873 to mine ancient copper workings at Rio Tinto, near Seville in southern Spain. The Consolidated Zinc Corporation was incorporated in 1905 to treat zinc bearing mine waste at Broken Hill, New South Wales, Australia.

     The RTZ Corporation (formerly The Rio Tinto-Zinc Corporation) was formed in 1962 by the merger of The Rio Tinto Company and The Consolidated Zinc Corporation.

     CRA Limited (formerly Conzinc Riotinto of Australia Limited) was formed at the same time by a merger of the Australian interests of The Consolidated Zinc Corporation and The Rio Tinto Company.

     Between 1962 and 1995, both RTZ and CRA discovered important mineral deposits, developed major mining projects and also grew through acquisition.

     RTZ and CRA were unified in 1995 through a dual listed companies structure. This means the Group, with its common board of directors, is designed to place the shareholders of both Companies in substantially the same position as if they held shares in a single enterprise owning all of the assets of both Companies.

     In 1997, the RTZ Corporation became Rio Tinto plc and CRA Limited became Rio Tinto Limited, together known as the Rio Tinto Group. Over the past decade, the Group has continued to invest in developments and acquisitions in keeping with its strategy.

     In 2007, Rio Tinto completed an agreed takeover of the Canadian aluminium producer Alcan Inc. in a US$38 billion transaction that transformed the Group’s aluminium product group into a global leader in aluminium. With copper and iron ore, this gave the Group a major role in the production of the three key metals associated with the growth and urbanisation of China and other developing countries.

     In 2009, the Group completed rights issues that were fully underwritten. The net proceeds from the rights issues of US$14.8 billion were used to pay down Group borrowings.

Rio Tinto plc is registered in England and Wales under company number 719885 with its registered office at 2 Eastbourne Terrace, London, W2 6LG (telephone: +44 20 7781 2000). Rio Tinto Limited is registered in Victoria, Australia under ABN 96 004 458 404 with its registered office at Level 33, 120 Collins Street, Melbourne, Victoria 3000 (telephone: +61 3 9283 3333). Rio Tinto’s agent for service in the US is Shannon Crompton, secretary of Rio Tinto’s US holding companies, who may be contacted at Rio Tinto Services Inc., 80 State Street, Albany, New York, 12207-2543.

Rio Tinto’s vision is to be the global mining leader.

     Our vision shapes our core objective, which is to maximise total shareholder return by sustainably finding, developing, mining and processing natural resources.

     To deliver this objective, the Group follows a strategy of investing in and operating large, long term, cost competitive mines and businesses, driven not by choice of commodity but rather by the quality of each opportunity.

We have five business priorities for 2010 to enable us to deliver our strategy and improve our long term financial performance:

•		Focus on operational delivery
•		Pursue our growth path
•		Complete the iron ore production joint venture
•		Prudent balance sheet management
•		Strengthen our relationship with China

Given our geographical reach, strong assets and reputation we believe we are well positioned for success.

Our vision of being the global mining leader means maintaining or achieving sector leadership, including operational excellence, sustainable development, exploration and innovation.

     We are well placed to achieve this vision through our ownership of some of the world’s best assets. We focus on the development of Tier 1 orebodies – those that will give us large scale, long term and cost competitive operations. This will safeguard our future cash flow and ensure we can operate profitably at every stage of the commodity cycle.

     The global reach of our operations and projects gives us the ability to respond to rising demand for metals and minerals from developed and emerging economies. We will use the advantages that our assets bring to deliver options for future growth.

     Our diverse portfolio, high quality assets, and expertise in technology and marketing give us the capability to supply a wide spectrum of customers and markets. We can supply the raw materials needed for basic infrastructure and the high performance mineral grades needed for high tech applications. This gives us exposure to markets worldwide at various stages of the development cycle. By understanding what our customers value, we develop offerings which meet their needs and generate superior returns for Rio Tinto.

     Effective supply chain integration with our operations and Rio Tinto Marine ensures that we meet customer needs and create value for ourselves by supplying the right products and services at the right time to the right place.

     Rio Tinto has a strong reputation for operational excellence and sustainable development. This reputation gives us our licence to operate, and it is essential that we uphold it and build upon it.

     Long term sustainable development is at the heart of everything we do. We must build upon recent improvements in our safety performance, and we must also continue, and extend, our leadership in areas such as community and government engagement; biodiversity; and land, carbon, water and energy management.

     Our assets and reputation give us the capabilities to operate and grow our business on a global scale. And as we do so, we also have the scope and expertise to bring long term benefits to our local communities and host countries.

The Group is focusing on five business priorities, which are the pathway to delivering our strategy and achieving our vision.

We will pursue cost reductions and productivity improvements in order to strengthen our focus on operational delivery.

     A key activity will be the continued transformation of the Aluminium business. Rio Tinto Alcan is now sharing common safety, internal compliance and human resource systems. As we complete the financial integration of Alcan, we expect to exceed US$1.1 billion per year in synergies.

     Our capacity for innovation is an important driver of operational delivery improvements. We will continue to capitalise on our leading technologies and develop our capabilities in areas such as automation.

     The delivery of capacity improvements along the supply chain is also a key part of this priority. This includes the mining, processing and shipping of our commodities.

Our second priority is to grow our business through disciplined capital expenditure. The improved strength of our balance sheet in 2009 positions us well for growth. We have confidence in the projected increase in long term demand for our products, particularly from emerging markets, which will be the driver of this growth.

     The growth opportunities that we focus on are aligned with our strategy, and so we will make investment decisions based on the quality of each opportunity rather than the choice of commodity. This may mean considering new commodities, as well as capitalising on the expansion potential that is held within our existing assets.

A key achievement this year would be the completion of the proposed Western Australian Iron Ore production joint venture with BHP Billiton. After signing the binding agreements in December 2009, covering all aspects of how the joint venture will operate and be governed, we are now addressing the approvals required and integration planning. This transaction would enable us to deliver substantial synergies and unlock the true value of our significant assets in the Pilbara.

We will focus on prudent management of our balance sheet, building on the successful measures we undertook to alleviate our debt position in 2009. We will continue with our operating and capital cost reduction initiatives as well as our asset divestment programme in order to optimise our financial position. Our objective in this area is towards achieving a single “A” credit rating. This priority links closely to the pursuit of growth through disciplined capital expenditure.

Strengthen our relationship with China

We will seek to strengthen our relationship with China: our largest trading partner, the home of our largest shareholder, and a market that will be one of the major drivers of future demand. China is strategically important to Rio Tinto and it is essential that we build durable and ongoing relationships there.

Key performance indicators

Rio Tinto’s core objective and strategy dictate key performance indicators (KPIs) that the Group monitors, targets and measures. These KPIs fulfil three roles:

•		To give senior management a means to evaluate the Group’s overall performance from an operational, growth and sustainable development perspective.
•		To provide managers and their teams with clarity and focus on the areas that are critical for the successful achievement of the Group’s goals.
•		To give guidance to the Remuneration committee in framing the Group’s remuneration policy.

Notes
(a)		The accounting information in these charts is drawn up in accordance with IFRS.
(b)		Underlying earnings is the key financial performance indicator which management uses internally to assess performance. It is presented here as an additional measure of earnings to provide greater understanding of the underlying business performance of the Group’s operations. Items excluded from net earnings to arrive at underlying earnings are explained in note 2 to the 2009 Financial statements. Both net earnings and underlying earnings deal with amounts attributable to equity shareholders of Rio Tinto. However, IFRS requires that the profit for the year reported in the income statement should also include earnings attributable to outside shareholders in subsidiaries.

Rio Tinto’s continuous focus on safety in the workplace means that the AIFR is one of the Group’s most important non financial KPIs.

     It is calculated based on the number of injuries per 200,000 hours worked. This includes medical treatment cases, restricted work day and lost day injuries for employees and contractors.

All injury frequency rate		Per 200,000 hours worked
2005			1.35
2006			1.10
2007			1.21(1)
2008			0.98
2009			0.82

(1)		Rio Tinto including former Alcan

At the end of 2009 our AIFR was 0.82, an improvement of 16 per cent from 2008.

Underlying earnings is the key financial performance indicator used across the Group. It is a measure of earnings that provides insight into the underlying business performance of the Group’s operations. Items excluded from net earnings to arrive at underlying earnings are explained in note 2 of the 2009 Financial statements.

Underlying earnings (a) (b)		US$ m
2005			4,955
2006			7,338
2007			7,443
2008			10,303
2009			6,298

Underlying earnings in 2009 of US$6,298 million were US$4,005 million below the comparable measure for 2008. This was largely due to a US$6,879 million decrease due to price movements on all major commodities, partially offset by a US$484 million increase due to favourable movements in foreign exchange rates; a US$652 million increase from greater iron ore, copper and gold volumes; a US$742 million increase due to a reduction in cash costs; and an US$890 million increase from the reduction of exploration and evaluation expenditure.

TSR measures the Group’s performance in terms of shareholder wealth generation through dividends and the share price. Rio Tinto’s TSR is calculated by an independent third party. The Group’s TSR performance compared to the FTSE 100 Index, the ASX All Ordinaries Index and the HSBC Global Mining Index, as well as the relationship between TSR and executive remuneration, is shown on pages 111.

Total shareholder return (TSR)		%
2005			78.5
2006			7.5
2007			92.7
2008			(71.5	)
2009			172.5

Due to the rights issues in 2009, the adjusted share prices of Rio Tinto plc and Rio Tinto Ltd have changed, so the TSR values in the 2009 Annual report do not match up to the TSR values in the 2008 Annual report. At the end of 2009, the Group’s TSR was an increase of 172.5%, compared with a decrease of 71.5% for 2008.

In December 2008, Rio Tinto announced its commitment to reduce net debt by US$10 billion in 2009.

     Net debt is calculated as: the net total of borrowings, cash and cash equivalents, other liquid resources and derivatives related to net debt.

Net debt (a)		US$ m
2005			1,313
2006			2,437
2007			45,191
2008			38,672
2009			18,861

During 2009, net debt decreased from US$38.7 billion to US$18.9 billion following the proceeds from the divestment programme, strong operating cash flows and net proceeds of US$14.8 billion from the rights issues. Net debt to total capital was significantly reduced to 29.1 per cent at 31 December 2009, compared with 63.3 per cent at 31 December 2008.

Capital expenditure tracks new and continuing investment in value adding sustaining and growth projects.

     The Group’s capital projects are listed on page 22 in the Capital projects section.

Capital expenditure (a)		US$ m
2005			2,554
2006			3,988
2007			4,968
2008			8,488
2009			5,356

Capital expenditure was US$5,356 million in 2009, a decrease of US$3,132 million over 2008. Capital expenditure included the Brockman 4 and Mesa A iron ore mine developments in Western Australia, the expansion of the Yarwun alumina refinery, the construction of the Clermont thermal coal mine, the expansion of the Kestrel coking coal mine, the development of the underground diamond mines at Diavik and Argyle and the completion of the Madagascar ilmenite mine.

Operating cash flows were introduced as a key element of the short term incentive plan in 2009. This measure is the same as that in the consolidated cash flow statement.

Operating cash flows (a)		US$ m
2005			8,031
2006			10,923
2007			12,569
2008			20,668
2009			13,834

Operating cash flows, including dividends from equity accounted units, was US$13,834 million, 33 per cent lower than 2008, primarily as a consequence of lower commodity prices.

Rio Tinto accepts the urgent need for climate change action. Improvement in intensity is a reduction in total greenhouse gas emissions per unit of commodity production over time. Broadly consistent with the WBCSD/ WRI Greenhouse Gas Protocol, we calculate total greenhouse gas emissions as direct emissions (Scope 1) plus emissions from imports of electricity (Scope 2) minus electricity and steam exports and net carbon credits voluntarily purchased from, or sold to, recognised sources. We index our performance relative to 2008 as the base year.

Greenhouse gas emissions intensity
Indexed relative to 2008		Group intensity
2005			109.4
2006			110.8
2007			110.2
2008			113.1(1)
			100.0(2)
2009			92.5(2)

(1)		Excluding former Alcan
(2)		Including former Alcan

During 2009 we achieved a 7.5 per cent reduction in total greenhouse gas emissions intensity. This was largely as a result of divesting the Ningxia aluminium smelter in China, which is powered by coal based electricity, and reduced production at a number of operations with a higher than average emissions intensity.

We have major operations in Australia and North America which account for approximately 85 per cent of the value of our assets, as well as significant businesses in South America, Europe, southern Africa and Asia.

•		All injury frequency rate reduced to 0.82 from 0.98
•		Set iron ore production and sales records
•		Progressed transformation of our aluminium business
•		Exceeded targeted controllable operating cost savings

Notes
(1)		This is the average Rio Tinto share of employees for managed businesses, excluding contractors and employees in businesses classified as assets held for sale during 2009.

Rio Tinto Alcan is a global leader in the aluminium industry. It mines high quality bauxite, refines alumina for both primary aluminium production and specialty alumina markets, and produces primary aluminium at some of the lowest cost, most technologically advanced smelters in the industry. The group is renowned for its technology leadership as well as its advantaged renewable energy assets.

Number of employees: 22,919 ⁽¹⁾

Bauxite, Alumina, Specialty aluminas, Aluminium

•		Integration synergies expected to exceed US$1.1 billion in 2010
•		Achieved rapid cost reductions and production curtailments
•		Business being transformed in readiness for the economic recovery
•		During the course of the year, aluminium prices plummeted by as much as 70 per cent from 2008

Contribution to gross sales revenue: 27%

The Copper group is one of the world’s largest producers of copper, with valuable by-products of gold and molybdenum. A diverse mix of operations and projects are located in North and South America, Africa, Asia and Australia. In addition to interests in some of the world’s largest copper mines, it is taking the lead in the development of three of the world’s largest new copper projects.

Number of employees: 7,612 ⁽¹⁾

Copper, Gold, Molybdenum, Silver, Nickel

•		Strong operating performance in 2009 supported by recovering market
•		Kennecott Utah Copper production up 37 per cent from 2008
•		Copper industry faces future supply challenges
•		Breakthrough agreement for development of major Mongolian copper-gold mine

Contribution to gross sales revenue: 14%

The group comprises Rio Tinto Diamonds (RTD), Rio Tinto Minerals (RTM) and Rio Tinto Iron & Titanium (RTIT). RTD accounts for about six per cent of the world’s production of rough diamonds by value. RTM is a global leader in borates and talc supply and of the science behind their use, and RTIT is a market leader in titanium dioxide feedstock, used in the manufacture of pigments for paints and plastics.

Number of employees: 7,375 ⁽¹⁾

Diamonds, Borates, Titanium dioxide feedstocks, Talc, High purity iron, Metal powders, Zircon, Rutile

•		Businesses oriented to OECD demand hence difficult conditions
•		Businesses showing signs of recovery, particularly in Asian markets
•		Diavik Diamonds underground mine starts production in 2010
•		Commencement of ramp up of Madagascar mineral sands mine

Contribution to gross sales revenue: 6%

Rio Tinto is a leading supplier of thermal and coking coal to the Asian seaborne market as well as being one of the world’s largest uranium producers supplying uranium oxide to electric power utilities worldwide. Rio Tinto Coal Australia manages eight coal mines in Queensland and New South Wales. In the US, the group operates the Colowyo coal mine and has a 48 per cent interest in Cloud Peak Energy.

Number of employees: 7,613 ⁽¹⁾

Thermal coal, Coking coal, Uranium

•		More robust seaborne coal markets emerging
•		De-bottlenecking of Australian coal export ports under way
•		New Clermont mine and Kestrel mine expansion on track
•		Nuclear power comeback spells promise for uranium

Contribution to gross sales revenue: 15%

Rio Tinto Iron Ore is the second largest supplier to the world’s seaborne iron ore trade and produces direct saleable lump and fines ore, pellets and concentrates. It has a global supply capacity to serve both the Pacific and Atlantic markets, operating an integrated platform of mines, rail and port infrastructure including development projects designed to respond rapidly to changes in demand. It operates Dampier Salt located near its iron ore mines in Australia as well as Rio Tinto Marine.

Number of employees: 11,375 ⁽¹⁾

Iron ore and Salt

•		Operated at full run rate of 220 million tonnes capacity in second half of 2009
•		Developing plans to produce 330 million tonnes per year
•		Uses automated mining technologies including driverless haul trucks

Contribution to gross sales revenue: 29%

The role of the Exploration group is to add value to Rio Tinto by discovering or acquiring resources that can increase future cash flows. It is organised into regional multi-commodity teams, with head offices in the UK, the US and Australia, supported by commodity and commercial specialists. Programmes are prioritised on a global basis, with investment decisions driven not by location or choice of commodity but rather by the quality of each opportunity.

Technology & Innovation has offices in Australia, Canada, the UK and the US. Its role is to identify, develop and promote best operational technology practice across the Group and to pursue step change innovation of strategic importance to ore bodies of the future.

No one can spend a day without using a metal or mineral. In the production and supply of metals and minerals, Rio Tinto is one of the world’s most diversified companies. Major products are aluminium, iron ore, copper, molybdenum, coal, uranium, diamonds, gold, borates, titanium dioxide, salt and talc.

Segmental analyses of sales revenue by product and by destination have been included in Note 32 to the 2009 Financial statements.

In a closely integrated value chain, the mineral bauxite is refined into alumina which is smelted into aluminium metal. Aluminium is one of the most widely used metals from tennis racquets to aircraft. Rio Tinto is a leading global supplier of bauxite, alumina and primary aluminium.

Silver is a good conductor of electricity and does not corrode. It is used in many electrical and electronic applications and is the principal ingredient of photographic and x-ray film. Silver is also a metal of beauty, used to make lasting products for the home and person. Rio Tinto produces silver as a by-product of its copper production.

Molybdenum is a metallic element frequently used in alloys with stainless steel and other metals. It enhances the metal’s toughness, high temperature strength and corrosion resistance. We produce molybdenum as a by-product from the Kennecott Utah Copper operations.

Gold has enjoyed a mystique and value unrivalled by other metals. Most gold that is not stored as bullion for investment purposes goes into jewellery. Gold’s conductivity and non corrosive properties make it a vital fabrication material in technology, electronics, space exploration and dentistry. We produce gold as a by-product from our copper mines.

Coal is plentiful, relatively inexpensive, and safe and easy to transport. We are one of the world’s largest producers of thermal coal, used for electricity generation in power stations. We also produce higher value coking, or metallurgical, coal which, when treated into coke, is used in furnaces with iron ore to produce steel.

Uranium is one of the most powerful natural energy sources known, used in the production of clean, stable, base load electricity. After uranium ore is mined, it is milled into uranium oxide, the mine product that is sent away for further processing into fuel rods for nuclear power stations.

Iron is the key ingredient in the production of steel, one of the most fundamental and durable products for modern day living, from railways to paperclips. Our mines are located in Australia and Canada.

About two thirds of copper production is used in electrical applications due to its high conductivity. It helps power our lives, in homes and factories, cars, computers, phones and equipment. Further major uses are in air conditioning and refrigeration, plumbing and roofing.

Mineral borates are used in hundreds of products and processes. They are a vital ingredient of many home and automotive applications, and are essential nutrients for crops. They are commonly used in vitreous applications such as fibreglass products, ceramics, LCD television screens, pharmaceutical and heat resistant glass.

Gem diamonds share the role with gold as a luxury commodity in jewellery. Rio Tinto offers diamond products across a wide range, from the pink, champagne and cognac stones from Argyle in Australia, to the spectacular whites of Diavik in Canada and Murowa in Zimbabwe.

Salt is one of the basic raw materials for the chemicals industry and is indispensable to a wide array of automotive, construction and electronic products, as well as for water treatment, food and healthcare.

Talc is hydrated magnesium silicate and is the softest rock in the world. It is an important ingredient in the manufacture of paper, paints, moulded plastics for cars and other familiar products. Rio Tinto produces various grades of talc for niche markets.

Gypsum is a key ingredient in wallboard, plaster, cement and is used in agriculture markets. Rio Tinto’s Dampier Salt operations at Lake MacLeod, Australia, provide high quality natural gypsum to the markets in Africa, Asia and Australia.

The minerals ilmenite and rutile, together with titanium slag, can be transformed into a white titanium dioxide pigment or titanium metal. The white pigment is a key component in paints, plastics, paper, inks, textiles, food, sunscreen and cosmetics. Titanium metal’s key properties of lightweight, chemical inertness and high strength make it ideal for use in medical applications and in the aerospace industry.

Rio Tinto is a major producer in all of the metals and minerals markets in which it operates. It is generally among the top five global producers by volume in each such market. It has market shares for different commodities ranging from five per cent to 40 per cent. Rio Tinto’s activities are spread across the globe. Most of Rio Tinto’s competitors are private sector companies which are publicly quoted. Several are, like Rio Tinto, diversified in terms of commodity exposure, but others are focused on particular commodities.

     High quality, long life mineral resources, the basis of attractive financial returns, are relatively scarce. Nevertheless, Rio Tinto holds interests in some of the world’s largest deposits. Rio Tinto expects world production volumes to grow in line with global economic growth. In addition, higher demand from China and potentially India, as a result of high rates of economic growth and urbanisation trends in those countries, could contribute further to increases in world production volumes in the long term.

Following more than four years of rapid expansion the global economy started to deteriorate rapidly during the third quarter of 2008 as financial markets became increasingly unstable. The bankruptcy of Lehman Brothers became the defining moment of this period sparking significant increases in risk premiums and a sharp contraction in availability of finance. Governments around the world took action to restore confidence in financial markets but a decline in global economic growth became unavoidable with most major developed economies moving into recession by the end of 2008.

     The deterioration in global economic activity continued into 2009, leading to the greatest contraction in industrial production for over 30 years. Global trade ground to a halt, consumer confidence collapsed with rising fears about unemployment, and businesses responded to the credit crunch by cutting spending and reducing output in order to pare back high inventory levels. However, the introduction of large fiscal and monetary stimuli by governments around the world started to take effect towards the middle of the year, averting a second Great Depression.

     Global trade started to recover during the second half of 2009, led by activity in Asia. Major developed economies gradually stabilised with most experiencing renewed GDP growth by the third quarter of 2009.

     Most OECD economies are now in the early stages of recovery initially driven by inventory rebuilding, government spending and in some cases net trade. The normal pattern of recovery is that the process of inventory rebuilding and economic stimulus would generate job growth, increase business confidence, and create the basis for increased consumption. However at this stage there remain risks that the pace of recovery may not be sustained. This is mainly because consumer confidence has been so heavily weighed upon by high unemployment rates, the loss in wealth and the prospect of increased taxes to fund the current stimulus.

The collapse in global trade affected many developing economies including China. The lagged impact of policy tightening by the Chinese government in early 2008 and a correction in a slightly overheating property market contributed to the slowdown in the pace of economic growth in China during the second half of 2008. By the first quarter of 2009 the annualised pace of GDP growth had fallen to nearly six per cent, a sharp contrast to the double digit growth that the Chinese economy had become accustomed to over the previous four years.

     The Chinese Government reacted strongly and rapidly to the economic slowdown, announcing a Rmb 4 trillion stimulus package, equivalent to about 12 per cent of GDP, to be spent over two years. The Government also introduced a set of measures aimed at supporting demand in key sectors and boosting consumption in rural areas. The stimulus was accompanied by a massive surge in bank lending during the first half of 2009 with significant investment going into the development of infrastructure projects. All these measures were successful in boosting economic growth as early as the second quarter of 2009.

     The growth momentum continued to build up during the second half of the year with activity in the property sector also starting to bounce back strongly. All of these developments bode well for the strength of China’s economy in 2010.

The sharp fall in global economic activity has had a significant impact on the demand for metals and minerals. Contractions in end-use consumption have been amplified by heavy destocking at all stages of the supply chains. Metals such as aluminium, which tend to be more exposed to the construction and transport sectors of developed economies, have been affected most strongly leading to very rapid increases in excess stocks. Prices, which in many cases were trading well in excess of the marginal costs of production prior to the economic downturn, reacted quickly to falling demand and rising inventories. The price falls were especially steep for exchange traded commodities as the turbulence in the financial sector forced investors out of these markets.

     Aluminium and copper experienced a peak- to-trough variation of about 60 per cent and 70 per cent respectively within just a couple of quarters. Meanwhile the iron ore contract price settled with Japanese customers in the second quarter of 2009 was about one third lower than the previous benchmark. The hard coking coal contract price also fell substantially by close to 60 per cent, whilst spot thermal coal prices fell 65 per cent between July 2008 and the end of the first quarter of 2009. Such price declines put significant pressure on mining companies, with, for some commodities, significant portions of the industry showing negative margins. This led to a shift in focus from maximising output to capital management, production curtailment and cost saving. These recent developments reinforced Rio Tinto’s strategy of investing in Tier 1 assets, which are generally able to generate positive margins over the whole of the economic cycle. The sharp price falls and credit restrictions also led to the cancellation or postponement of many mining projects.

     The start of a stabilisation in the global economy from the second quarter of 2009 and more importantly the rapid turnaround of the Chinese economy triggered a sharp bounce back in commodity prices. Chinese imports of metals and minerals soared to new highs as a result of recovering underlying demand, restocking, closure of high cost domestic capacity and some speculative activity facilitated by rising liquidity. Falls in scrap supplies as a result of slower industrial activity and lower prices also created a need for Chinese consumers to use and import a higher proportion of primary metals. This was especially acute in the case of copper throughout the first half of 2009. These high levels of Chinese imports absorbed some of the surpluses building up outside China, keeping some markets relatively tight.

     Copper experienced one of the strongest rebounds with prices rising 140 per cent between the start and the end of the year, moving to within less than 20 per cent of the pre-crisis 2008 peak. Meanwhile, spot iron ore prices almost doubled over the second half of 2009 and aluminium recovered from a low of near US$1,300 per tonne during the first quarter of 2009 to just over US$2,200 per tonne by year end despite historically high visible stock levels. Movements in coal prices were more subdued during 2009 but started to trend up again towards the very end of the year.

Forecasters have become progressively more optimistic about economic growth in 2010. The IMF is predicting global growth of nearly four per cent and Chinese GDP is expected to grow at between nine and ten per cent. Economy wide inventory rebuilding in the OECD should provide a short term boost to activity. Such growth acceleration would have positive implications for metals and minerals markets. Although it is still unclear whether a sustainable recovery in private sector confidence and economic activity will emerge as the fiscal and monetary stimulus wanes or is removed over time.

     Some risks to the outlook include the possibility of an aggressive tightening of monetary policies in Asian economies in response to concerns about consumer and/or asset price inflation. Also it is possible that consumer spending in the OECD will remain constrained due to concerns about employment prospects, housing wealth and increased tax burdens. Economic data releases and news flow will affect investors’ perceptions about the likelihood of such risks compared with the strength of the more positive forces on the markets. This will lead to negative and positive swings in sentiment affecting commodity prices through speculation.

All sales and marketing activity is conducted by Rio Tinto’s Product Groups who utilise a range of sales and marketing channels to interact with customers. These channels include direct sales, sales via distributors and sales via agents. No customer facing sales and marketing activity is handled outside of the Product Groups.

Rio Tinto is subject to extensive governmental regulations affecting all aspects of its operations and consistently seeks to apply best practice in all of its activities. Due to Rio Tinto’s product and geographical spread, there is unlikely to be any single governmental regulation that could have a material effect on the Group’s business.

     Rio Tinto’s operations in Australia and New Zealand are subject to state and federal regulations of general application governing mining and processing, land tenure and use, environmental requirements, including site specific environmental

licences, permits and statutory authorisations, workplace health and safety, trade and export, corporations, competition, access to infrastructure, foreign investment and taxation. Some operations are conducted under specific agreements with the respective governments and associated acts of parliament.

     In addition, Rio Tinto’s uranium operations in the Northern Territory, Australia and Namibia are subject to specific regulation in relation to mining and the export of uranium.

     US and Canada based operations are subject to local, state, provincial and national regulations governing land tenure and use, environmental aspects of operations, product and workplace health and safety, trade and export administration, corporations, competition, securities and taxation. In relation to hydro electric power generation in Canada, water rentals and royalties, as well as surplus power sales, are regulated by the Quebec and British Columbia provincial governments.

     Rio Tinto’s South African based operations are subject to black economic empowerment legislation which includes the requirement to transfer (for fair value) 26 per cent of the Group’s South African mining assets to historically disadvantaged South Africans by 2014.

Environmental regulation

Rio Tinto measures its performance against environmental regulation by rating incidents on a low, moderate, high, or critical scale of likelihood and consequence of impacting the environment. High and critical ratings are reported to the executive management team and the Committee on social and environmental accountability, including progress with remedial actions. Prosecutions and other breaches are also used to gauge Rio Tinto’s performance.

     In 2009, there were 12 high or critical environment incidents at Rio Tinto managed operations compared with 17 in 2008.

     These incidents were of a nature to impact the environment or may have concerned local communities. Of these, eight resulted from water discharge and four were spills. Examples of these include:

•		Spillage of caustic soda on to soil and into the adjacent river following overflow from a truck at port facilities in Saguenay, Canada.
•		Release of untreated water from the treatment plant to a lake at Diavik, Canada.
•		Discharge of water from a dam into a local creek in excess of licence conditions at Hail Creek, Australia.
•		Hydrocarbon leakage to soil and groundwater at Havre St Pierre, Canada.
•		Overflow of a storm water tank releasing leachate and surface run off into the surrounding environment at Alucam, Cameroon.
•		Processing liquor releases to a sea water channel at Gove, Australia.
•		Loss of lubrication oil into the local river following a valve failure on a generator at Kemano, Canada.
•		Overflow of process water containing red mud from a holding pond into a local stream at Gardanne, France.

Trend information

Demand for the Group’s products is closely aligned with levels of, and changes in, global GDP. Changes in the GDP of developing countries will generally have a greater impact on demand for commodities such as iron ore and coking coal, which are significant inputs in the development and improvement of infrastructure. Conversely, changes in the GDP of developed countries will have a greater impact on industrial minerals, which have many applications in consumer products. Aluminium and copper are used in a wide range of applications from infrastructure to consumer products and demand for these metals has tended to grow in line with or slightly faster than global GDP. Trends in production of the Group’s minerals and metals, gross sales revenue and underlying earnings are set out in the Performance reviews starting on page 51.

Rio Tinto 2009 Form 20-F     21

Capital projects

Capital expenditure for 2010 is expected to be at least US$5 billion with potential for a further US$1 billion for new investments. The focus for 2010 will be on the following capital projects:

Capital project Rio Tinto share 100% unless stated		Approved				Estimated				Status/milestones
		project funding				capital spend in
US$ billion		US$bn				2010 US$bn
Iron ore – sustaining and expansion of Pilbara iron ore mines and infrastructure capacity beyond 220mtpa			3.6				1.1			Expansion of Hope Downs from 22mtpa to 30mtpa (US$350 million on 100% basis — Rio Tinto share is 50%) was completed during the first half of 2009. Work progressed on or ahead of schedule on the Mesa A and Brockman 4 mines. Mesa A came onstream in early February 2010 and Brockman 4 is expected to commence production in the second quarter of 2010.
Alumina – expansion of Yarwun alumina refinery from 1.4 to 3.4mtpa			1.8				0.3			Work has been slowed in response to market demand. The change to the construction schedule will result in a completion date in the fourth quarter of 2012.
Aluminium – construction of a new 225MW turbine at the Shipshaw power station in Saguenay, Quebec, Canada			0.2				0.1			Approved in October 2008, the project remains on budget and on schedule to be completed in December 2012.
Aluminium – modernisation of the Kitimat smelter in British Columbia, Canada			0.5				0.1			The project timing has been slowed. Intensive value improvement exercise exploring all options for reducing cost, and optimising project capital expenditures and returns.
Aluminium – AP50 pilot plant in Saguenay, Quebec, Canada			0.4				0.1			The project has been slowed. Construction of the electrical substation to be completed along with site preparation for potrooms and foundation of the busbars room.
Coking coal – Kestrel (Rio Tinto share 80%) extension and expansion			1.0				0.4			The project continues to target scheduled production of coal in 2012.
Thermal coal – Clermont (Rio Tinto 50.1%) replacement of Blair Athol			1.3				0.2			The project remains on track with first coal expected in the first half of 2010, ramping up to full capacity of 12.2mtpa by 2013.
Diamonds – Argyle underground development, extending life to 2018			1.5				0.1			The project has been slowed to critical development activities. The project continues through 2010 and is being reviewed to determine the appropriate ramp-up timing.
Diamonds – Diavik (Rio Tinto 60%) underground development			0.8				–			The project has been largely completed with first production expected in the first half of 2010

Sustaining capital expenditure for 2010 is estimated to be US$2.1 billion (Rio Tinto funded). In addition to these capital projects, the Group will continue to fund a number of major evaluation projects in 2010. Studies will continue into the step change expansion of iron ore production capacity in the Pilbara to 330 million tonnes per annum by 2015. Detailed design and engineering work of the Cape Lambert port expansion are scheduled to be completed by the end of 2010. Other major evaluation projects include the Simandou iron ore project and the La Granja and Resolution copper projects.

Rio Tinto 2009 Form 20-F     22

Capital projects

Completed in 2009		Capital
		Expenditure
		US$ million
		(100% basis)
Diamonds – Diavik underground development (Rio Tinto 60%)			787			Capital investment of $563 million was approved in November 2007 in addition to $224 million invested in 2006-2007 for the feasibility studies and related capital projects. The underground mine produced its first ore in the first quarter of 2010.
Iron ore – expansion of Hope Downs mine from 22 million tonnes per annum to 30 million tonnes per annum (Rio Tinto 50%).			350			Approved in August 2007, the expansion work was completed during the first half of 2009.
Iron ore – construction of the Mesa A mine in the Pilbara region of Western Australia (Rio Tinto 53%). The mine is expected to have an initial production of 20 million tonnes per annum, increasing to 25 million tonnes by 2011.			901			Approved in November 2007, first production took place in the first quarter of 2010.
Completed in 2008
Aluminium – Development of the 360,000 tonne per annum greenfield Sohar smelter in Oman (Rio Tinto 20%).			1,700			Approved in February 2005, first hot metal was produced in June 2008.
Aluminium – Aluminium Spent potlining recycling plant in Quebec (Rio Tinto 100%)			225			Approved in September 2006, the plant commenced operations in June 2008.
Titanium dioxide – Construction by QMM (Rio Tinto 80%) of a greenfield ilmenite operation in Madagascar and associated upgrade of processing facilities at QIT in Canada.			1,000			Construction is substantially complete. First production of ilmenite took place at the end of 2008.
Iron ore – Cape Lambert port expansion (Rio Tinto 53%) from 55 to 80 million tones per annum and additional rolling stock and infrastructure.			952			Approved in January 2007, the project was completed at the end of 2008, ahead of time and within budget.
Completed in 2007
Iron ore – Expansion of Hamersley’s (Rio Tinto share 100%) Mount Tom Price mine to 28 million tonnes per annum capacity.			226			Project completed in March 2007.
Iron ore – Brownfields mine expansion of Hamersley’s (Rio Tinto 100%) Yandicoogina mine from 36 million tonnes per annum to 52 million tonnes per annum.			530			First ore was produced in May 2007, with the project completed at the end of the third quarter of 2007 on time and on budget.
Iron ore – Expansion of Hamersley’s (Rio Tinto 100%) Dampier port (Phase B) from 116 million tonnes per annum to 140 million tonnes per annum capacity and additional rolling stock and infrastructure.			803			This project was completed at the end of 2007 on schedule and on budget.
Iron ore – Hope Downs development (Rio Tinto share: 50% of mine and 100% of infrastructure). Construction of 22 million tonnes per annum mine and related infrastructure.			980			First production occurred in November 2007, three months ahead of schedule. The first train load took place in December 2007.

Rio Tinto 2009 Form 20-F     23

Acquisitions and divestments

During 2009 Rio Tinto acquired an additional interest in Ivanhoe Mines, owner of the Oyu Tolgoi copper-gold project in Mongolia. The Group announced asset sales totalling US$7.2 billion of which US$3.7 billion completed in 2009. Since February 2008, Rio Tinto has announced agreed asset sales of US$10.3 billion.

Acquisitions

Asset		Cost				Status
		US$m
Acquired in 2009
Copper – Ivanhoe Mines			388			The purchase of an additional 9.8% interest increasing the Group’s total holding to 19.7%
Acquired in 2008
None			–
Acquired in 2007
Aluminium – Alcan Inc.			38,652			Acquisition of Alcan Inc announced in July 2007 and completed in October 2007
Energy – Hydrogen Energy (Rio Tinto: 50%)			35			Joint venture with BP
Iron Ore – Dampier Salt (Rio Tinto: 3%)			19			The purchase of a 3% interest in Dampier Salt from a minority shareholder that increased the Group’s total interest to 68.4%

Divestments

Asset		Proceeds				Status
		US$m
Divested in 2009
Energy – Jacobs Ranch			764			Sold to Arch Coal, Inc
Iron Ore – Corumbá mine			814			Sold to Vale
Diamonds & Minerals – Exploration projects in Argentina and Canada			850			Sold to Vale
Aluminium – Ningxia smelter (Rio Tinto: 50%)			125			Sold to Qingtongxia Aluminium Group
Exploration – sundry assets			68			Sold to multiple parties
Energy – Cloud Peak			741			IPO and connected debt offering
Alcan Engineered Products – composites			349			Sold to Schweiter Technologies
Divested in 2008
Energy – Kintyre project			495			Sold to a joint venture
Copper – Greens Creek mine (Rio Tinto: 70%)			750			Sale completed to Hecla Mining, the Group’s minority partner
Copper – Cortez Joint Venture (Rio Tinto: 40%)			1,695			Sold to Barrick Gold, the Group’s majority partner, for cash plus a deferred bonus payment and contingent royalty interest
Exploration – sundry assets			134			Sold to multiple parties
Divested in 2007
Diamonds & Minerals – Lassing and Ennsdorf			6			Rio Tinto Minerals disposed of its operations at Lassing and Ennsdorf in Austria

     During the first quarter of 2010, Rio Tinto completed a further $3.5 billion of divestments comprising the sale of the majority of the Alcan Packaging businesses to Amcor for $1.95 billion, the sale of Alcan Packaging Food Americas to Bemis Company, Inc for $1.2 billion and the sale of two undeveloped coal properties in Australia for $0.3 billion.

     In March 2010 Rio Tinto acquired an additional 15 million shares in Ivanhoe Mines Ltd, increasing its ownership in Ivanhoe Mines by 2.7 per cent to 22.4 per cent. The total consideration for this acquisition was US$241 million.

Rio Tinto 2009 Form 20-F     24

Metals and minerals production

		2009 Production												2008 Production								2007 Production
		Rio Tinto				Total				Rio Tinto				Total				Rio Tinto				Total				Rio Tinto
		% share (a)								share								share								share
ALUMINA (‘000 tonnes)
Gardanne (France) (b) (c)			100.0				—				—				38				38				21				21
Gove (Australia) (b)			100.0				2,519				2,519				2,325				2,325				405				405
Jonquière (Vaudreuil) (Canada) (b)			100.0				1,125				1,125				1,370				1,370				252				252
Queensland Alumina (Australia) (b) (d)			80.0				3,959				3,167				3,842				3,074				3,816				1,766
São Luis (Alumar) (Brazil) (b)			10.0				1,657				166				1,504				150				288				29
Yarwun (Australia)			100.0				1,347				1,347				1,293				1,293				1,260				1,260
Specialty Plants (Canada/France/Germany) (b) (c)			100.0				492				492				758				758				144				144
Rio Tinto total											8,815								9,008								3,877
ALUMINIUM (‘000 tonnes)
Alma (Canada) (b)			100.0				435				435				424				424				80				80
Alouette (Sept-Îles) (Canada) (b)			40.0				573				229				572				229				109				44
Alucam (Edéa) (Cameroon) (b)			46.7				73				34				91				43				19				9
Anglesey (UK) (e)			51.0				106				54				118				60				147				75
Arvida (Canada) (b)			100.0				171				171				172				172				32				32
Beauharnois (Canada) (b) (f)			100.0				11				11				50				50				10				10
Bécancour (Canada) (b)			25.1				420				105				415				104				80				20
Bell Bay (Australia)			100.0				177				177				178				178				177				177
Boyne Island (Australia)			59.4				556				331				556				330				548				325
Dunkerque (France) (b)			100.0				244				244				254				254				49				49
Grande-Baie (Canada) (b)			100.0				215				215				212				212				40				40
ISAL (Reykjavik) (Iceland) (b)			100.0				190				190				187				187				35				35
Kitimat (Canada) (b)			100.0				224				224				247				247				47				47
Lannemezan (France) (b) (g)			100.0				—				—				5				5				5				5
Laterrière (Canada) (b)			100.0				235				235				234				234				44				44
Lochaber (UK) (b)			100.0				38				38				43				43				8				8
Lynemouth (UK) (b)			100.0				109				109				165				165				33				33
Ningxia (Qingtongxia) (China) (b) (h)			—				10				5				163				81				31				15
Sebree (US) (b)			100.0				193				193				197				197				37				37
Shawinigan (Canada) (b)			100.0				99				99				100				100				18				18
Sohar (Oman) (i)			20.0				351				70				49				10				—				—
SORAL (Husnes) (Norway) (b)			50.0				98				49				171				86				32				16
Saint-Jean-de-Maurienne (France) (b)			100.0				101				101				130				130				25				25
Tiwai Point (New Zealand)			79.4				271				215				316				250				351				279
Tomago (Australia) (b)			51.6				528				272				523				270				97				50
Rio Tinto total											3,808								4,062								1,473
BAUXITE (‘000 tonnes)
Awaso (Ghana) (b) (j)			80.0				440				352				796				637				216				173
Gove (Australia) (b)			100.0				7,185				7,185				6,245				6,245				985				985
Porto Trombetas (MRN) (Brazil) (b)			12.0				15,645				1,877				18,063				2,168				3,392				407
Sangaredi (Guinea) (b)			(k	)			11,216				5,047				13,181				5,931				2,502				1,126
Weipa (Australia)			100.0				16,235				16,235				20,006				20,006				18,209				18,209
Rio Tinto total											30,696								34,987								20,900
BORATES (‘000 tonnes) (l)
Rio Tinto Minerals — Boron (US)			100.0				411				411				591				591				541				541
Rio Tinto Minerals — Tincalayu (Argentina)			100.0				13				13				19				19				19				19
Rio Tinto total											424								610								560
COAL — HARD COKING (‘000 tonnes)
Rio Tinto Coal Australia
Hail Creek Coal (Australia)			82.0				6,308				5,173				6,049				4,960				5,012				4,110
Kestrel Coal (Australia)			80.0				2,868				2,294				3,089				2,471				2,586				2,069
Rio Tinto total hard coking coal											7,467								7,431								6,179

Rio Tinto 2009 Form 20-F     25

Metals and minerals production (continued)

		2009 Production												2008 Production								2007 Production
		Rio Tinto				Total				Rio Tinto				Total				Rio Tinto				Total				Rio Tinto
		% share (a)								share								share								share
COAL — OTHER* (‘000 tonnes)
Rio Tinto Coal Australia
Bengalla (Australia)			30.3				5,466				1,655				5,357				1,622				5,155				1,561
Blair Athol (Australia)			71.2				11,325				8,068				10,194				7,262				7,924				5,645
Hunter Valley Operations (Australia)			75.7				11,232				8,504				10,751				8,139				10,094				7,642
Kestrel Coal (Australia)			80.0				849				679				929				744				1,035				828
Mount Thorley Operations (Australia)			60.6				3,342				2,024				2,949				1,786				2,924				1,771
Tarong Coal (Australia) (m)			—				—				—				262				262				4,510				4,510
Warkworth (Australia)			42.1				5,162				2,172				6,039				2,540				5,775				2,430
Total Australian other coal											23,103								22,356								24,388
US Coal
Antelope (US) (n)			48.3				30,865				29,031				32,474				32,474				31,267				31,267
Colowyo (US) (o)			100.0				3,214				3,214				4,446				4,446				5,077				5,077
Cordero Rojo (US) (n)			48.3				35,687				33,361				36,318				36,318				36,712				36,712
Decker (US) (n)			24.1				4,161				2,017				5,939				2,970				6,340				3,170
Jacobs Ranch (US) (p)			—				26,537				26,537				38,206				38,206				34,565				34,565
Spring Creek (US) (n)			48.3				16,035				15,360				16,341				16,341				14,291				14,291
Total US coal											109,520								130,755								125,083
Rio Tinto total other coal											132,623								153,111								149,471
COPPER (mined) (‘000 tonnes)
Bingham Canyon (US)			100.0				303.5				303.5				238.0				238.0				212.2				212.2
Escondida (Chile)			30.0				1,061.2				318.3				1,281.7				384.5				1,405.5				421.6
Grasberg — Joint Venture (Indonesia) (q)			40.0				269.3				107.7				17.8				7.1				70.9				28.4
Northparkes (Australia)			80.0				34.3				27.4				24.8				19.8				43.1				34.5
Palabora (South Africa)			57.7				82.6				47.6				85.1				49.1				71.4				41.2
Rio Tinto total											804.7								698.5								737.9
COPPER (refined) (‘000 tonnes)
Escondida (Chile)			30.0				327.2				98.2				257.5				77.3				238.4				71.5
Kennecott Utah Copper (US)			100.0				274.2				274.2				200.6				200.6				265.6				265.6
Palabora (South Africa)			57.7				69.4				40.0				75.9				43.8				91.7				52.9
Rio Tinto total											412.4								321.6								390.0
DIAMONDS (‘000 carats)
Argyle (Australia)			100.0				10,591				10,591				15,076				15,076				18,744				18,744
Diavik (Canada)			60.0				5,565				3,339				9,225				5,535				11,943				7,166
Murowa (Zimbabwe)			77.8				124				97				264				205				145				113
Rio Tinto total											14,026								20,816								26,023
GOLD (mined) (‘000 ounces)
Barneys Canyon (US)			100.0				2				2				5				5				11				11
Bingham Canyon (US)			100.0				582				582				368				368				397				397
Cortez/ Pipeline (US) (r)			—				—				—				72				29				538				215
Escondida (Chile)			30.0				144				43				144				43				187				56
Grasberg — Joint Venture (Indonesia) (q)			40.0				1,072				429				—				—				1,058				423
Greens Creek (US) (s)			—				—				—				18				12				68				48
Northparkes (Australia)			80.0				34				27				32				26				79				63
Rawhide (US) (t)			100.0				19				19				18				9				19				10
Others							13				8				14				8				19				11
Rio Tinto total											1,111								501								1,233
GOLD (refined) (‘000 ounces)
Kennecott Utah Copper (US)			100.0				479				479				303				303				523				523