CEO Albanese says Rio Tinto can help China build overseas mining brand

Monday, 22 March 2010 14:16:30 (GMT+2)

Anglo-Australian mining giant Rio Tinto's CEO Tom Albanese said that his company's mining experience can help China's state-owned enterprises to acquire resources abroad and explore domestic resources within China.

Speaking at the China Development Forum in Beijing on March 22, he pointed out that China has become a global player in resource development, with mining accounting for about a quarter of China's outbound investments. However, the Rio Tinto CEO stressed that resource extraction involves not only capital and technology, but a focus on sustainable development, which means following leading practices on environment, safety, and community engagement.

Mr. Albanese proposed that his company could help Chinese companies to develop their overseas brand and earn the consent of the local people, or the "licence to operate" through mutual corporation. "With our experience Rio Tinto can help meet this need. We have developed projects all over the world and have learned the value - in both human and commercial terms - of understanding the social, environmental and economic impacts on local communities," he said. "Mutual cooperation could unlock hidden value," he added.

Mr. Albanese said that the recently proposed joint venture with China's premier resource company and Rio Tinto's largest shareholder Chinalco, for development of the Simandou iron ore project in Guinea, West Africa, is a good example for such corporation. The two sides signed a non-binding agreement on March 19 for the joint venture as talks for a binding agreement still continue.

The CEO has also offered Chinese companies cooperation in exploring world class mineral resources within China. "We believe we can bring (our) expertise and know-how to bear in helping China to find major ore bodies on its home soil," he said.

Commenting on the case regarding the charges against four Shanghai-based Rio Tinto employees, whose trial opens today, March 22, Mr. Albanese said that the issue is of great concern to his company. "I can only say we respectfully await the outcome of the Chinese legal process," he indicated.

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