Rio Tinto Energy
Transcript of Rio Tinto Energy
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Fact sheet
Energy
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Rio Tinto produces coal (pictured) inAustralia and the US, and uraniumin Namibia and Australia.
Our energy business
As part of its portfolio Rio Tinto
produces coal and uranium; two
important sources of energy from
mining. We produce coal in Australia
and the US and uranium in Namibia
and Australia, which we sell to
worldwide markets.
Rio Tinto is one of the worlds major
producers of export thermal coal,
used for electricity generation inpower stations. Electrication is
a key aspect of development, and
developing countries in particular
rely on the affordable electricity that
coal provides. We also produce coking
coal for steel making.
Rio Tinto is one of the worlds largest
producers of uranium. This uranium
is used exclusively for the generation
of nuclear electricity. We follow strict
security measures to ensure our
uranium products are used only
for peaceful purposes.
Rio Tinto is a leading internationalbusiness involved in each stageof metal and mineral production.The Group combines Rio Tinto plc,
which is listed on the LondonStock Exchange, and Rio TintoLimited, which is listed on the
Australian Securities Exchange.
We want to ensure the sustainable
future use of coal and uranium
as energy sources, and so we are
investing in various technologies
and areas of research that are
furthering this cause.
Burning coal is a major contributor
to man made greenhouse gases.
Rio Tinto has accepted the challenge,
with other producers and governments,to implement low emission technologies
to reduce emissions of greenhouse
gases to the atmosphere from the
combustion of coal.
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Coal is mined either from openpit mines at the Earths surface,or in underground mines.
Coal
Producing coal
Coal is formed from plants that grew on Earth millions ofyears ago. As the plants died, and became buried beneath
the Earths surface, they were exposed to heat, pressure
and chemical reactions that turned them into coal. The
worlds currently identied coal reserves can meet present
levels of demand for about 200 years.
Coal is mined either from open pit mines at the Earths
surface, or in underground mines. Once extracted, it is
sized and blended according to our customers needs,
then loaded into trains to be delivered or exported.
Using coal
Rio Tinto Energy produces two types of coal thermalcoal and coking coal:
Thermal coal: this is also known as steam coal. It is
primarily used to generate electricity in power stations.
The energy released when the coal is burned is used
to turn water into steam, which drives turbines that
generate electricity. We produce low sulphur coal,
which helps our customers meet their requirements
for low sulphur dioxide emissions.
Coking coal: this is also known as metallurgical coal
and is mainly used in making steel. It is a higher value
product than thermal coal. Coking coal supplies bothheat and carbon to the process that converts iron ore
into steel.
To ensure that coal remains a valuable long term energy
source for the world, coal producers and users need to
minimise the effects of burning coal, and reduce the
amount of carbon dioxide emissions from power plants.
Rio Tintos Energy group is involved in various initiatives
to help secure coals future as an energy source. These
include support for numerous research and demonstration
projects including the COAL21 programme in Australia.
To ensure that coal remains a valuable long termenergy source for the world, coal producers andusers need to minimise the effects of burningcoal, and reduce the amount of carbon dioxideemissions from power plants.
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We have a number of browneld and greeneldopportunities that will help meet rising demandfor coal and energy.
Top
Colowyo coal mine supplies electricitygenerators in the south west US.Right
Kestrel mine in Australia, where anexpansion project will help meetAsian coal demand.
Our coal operations
Rio Tintos coal operations are in
eastern Australia and the western US.
Australian operations
Rio Tinto Coal Australia (RTCA)
is a wholly owned subsidiary of
Rio Tinto. RTCA manages Rio Tinto
Energys coal mines in Queensland:
Blair Athol (Rio Tinto: 71 per cent),
Clermont (50.1 per cent), with coal
production commencing early 2010,
Kestrel (80 per cent), and Hail Creek(82 per cent).
Upon reaching full capacity,
scheduled for 2013, Clermont
will become Australias largest coal
producer. Production from Clermont
will replace that from Blair Athol.
RTCA also provides management
services to, and owns 75.7 per cent
of, Coal & Allied, which mines
coal in New South Wales. Coal &
Allied wholly owns the HunterValley Operations mines and has
partial ownership of other mines
in the region: Bengalla (Rio Tinto:
30.3 per cent), Mount Thorley
(60.6 per cent) and Warkworth
(42.1 per cent). Rio Tinto Coal
Australias deposits contain a
mixture of thermal and coking coal.
US operations
In 2007, Rio Tinto announced its
decision to explore divestment of
Rio Tinto Energy America (RTEA). At
that time, RTEA owned and operated
four coal mines in the USs Powder
River Basin of Montana and Wyoming
(Jacobs Ranch, Antelope, Spring
Creek and Cordero Rojo), and held
a 50 per cent interest in the Decker
coal mine. RTEA also owned the
Colowyo mine in Colorado.
Colowyo Coal, a Rio Tinto managedoperation, was separated from RTEA
in 2008 because it was not part of
the asset divestment programme.
In 2009, Rio Tinto sold Jacobs Ranch.
In the same year, Rio Tinto formed
Cloud Peak Energy Inc. and launched
an initial public offering (IPO) as a
way of divesting Antelope, Spring
Creek and Cordero Rojo, as well as the
stake in the Decker mine. Rio Tinto
has retained an interest of 48 per cent
in Cloud Peak.
Our coal projects
We have a number of browneld
and greeneld opportunities that
will help meet rising demand for
coal and energy.
Rio Tinto Coal Australia
Kestrel: a mine extension plan,
forecast to be in production
in late 2012/early 2013, will
help meet Asian demand for
metallurgical coal.
Coal & Allied
Mount Pleasant: the company
is currently reviewing the
2008 engineering feasibility
study to update the economic
assumptions and technical design
considerations for this coal mine
project next to the Bengalla mine.
Coal & Allied is in the process
of identifying modications
that may be required to the
existing regulatory consents
and approvals, and proceedingto apply for those remaining
regulatory consents and
approvals needed to progress
the proposed development of
Mount Pleasant.
Project work is continuing to
examine opportunities to expand
production at the Bengalla Mine
and to extend the mining life of
Mount Thorley and Warkworth.
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Producing uranium
Uranium, a metallic element, is one
of the most powerful natural sources
of energy. Its chemical properties can
be harnessed to produce electricity
without the generation ofcarbon dioxide.
At Rio Tintos uranium mines,
ore is blasted and transported to
a processing facility where it is
crushed to the size of ne sand.
Uranium is dissolved from the rock
using sulphuric acid, manganese and
iron oxide. It is then recovered from
the solution in a number of stages.
The uranium is extracted using an
organic liquor; the organic liquor
is then stripped using ammoniumsulphate to concentrate the uranium
for precipitation. Gaseous ammonia
is added to form a solid called yellow
cake, which is centrifuged and roasted
to produce uranium oxide powder.
This powder is the product that
Rio Tinto supplies to its customers.
Uranium
Left
Uranium, produced at Rssingand ERA (pictured) is used for thegeneration of nuclear energy.
Using uranium
Uranium oxide is transformed into
nuclear fuel through processes called
conversion and enrichment. The
resultant nuclear fuel rods are then
inserted into a nuclear reactor toproduce energy.
Nuclear energy is generated by the
splitting of uranium atoms, a process
that releases a large amount of heat.
This heat is then used to convert
water into high temperature steam,
which in turn drives the turbines
in a generator to produce electricity.
Nuclear energy is an important form
of low carbon emitting electricity
generation. The lifecycle carbonemissions arising from nuclear power
are comparable with solar and wind
power. The world is currently seeing
signicant growth in nuclear power
as governments grapple with the
challenge of reducing greenhouse
gas emissions.
Uraniums chemical properties
can be harnessed to produceelectricity without the generationof carbon dioxide.
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Coal Projects
Mount Pleasant (75.7%)
Uranium Operations
ERA (68%)
Rssing (69%)
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Energy group operations and projects
Coal Operations
Hail Creek (82%)
Clermont (50.1% operationalfrom 2010)/Kestrel (80%)
and Blair Athol (71%)
Bengalla (30%)
Hunter Valley Operations (76%)/
Mount Thorley Warkworth (61%)
Colowyo
Antelope (48.3%)/
Cordero Rojo (48.3%)
Spring Creek (48.3%)/
Decker (24.1%)
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Locations on the map are indicative
Operations and projects are whollyowned unless otherwise shown.
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Rio Tinto plc
2 Eastbourne Terrace
London W2 6LG
United Kingdom
T +44 (0)20 7781 2000
Rio Tinto Limited
120 Collins Street
Melbourne, Victoria 3000
Australia
T +61 (0)3 9283 3333