Rio Tinto is a leader in finding, mining and processing the earth’s mineral resources. The Group’s worldwide operations supply essential minerals and metals that help to meet global needs and contribute to improvements in living standards.

The company employs 32,000 people across the globe, principally in Australia and North America. We do operate significant business in southern Africa in Namibia, Zimbabwe and South Africa. A new mining project is under construction in Madagascar and we have a significant iron ore prospect in Guinea. All Rio Tinto's operations are committed to sustainable development and to constructive local community engagement.

Rio Tinto is a Partner of Business Action for Africa.

enterprise and employment

Mines need supplies - from paper to parts. Instead of relying on major suppliers in far off cities what about encouraging the small entrepreneurs in the local district? How about creating a nursery for business development? This is among the ideas behind the Business Linkage Centre(BLC) project of the Palabora copper mine operated by Rio Tinto in South Africa.

The business linkage activity is conducted under the auspices of the “empowerment charter” for the South African Mining Industry. The goal of the Charter is to create a mining industry that will proudly reflect the promise of a non-racial South Africa and promote black economic advancement.

The BLC aimed to provide working opportunities for local black economic empowerment companies in the greater Ba-Phalaborwa region. These companies supply goods and services to Palabora, as well as to other large local enterprises such as Foskor Limited, Sasol Nitro and Ntsika, an enterprise in the Department of Trade and Industry. The BLC was a partnership of the 3 major locally based companies with Ntsika.

First, the BLC assisted “empowerment companies” to identify and develop their ability to provide the partners with goods and services in a manner that is sustainable, independent and competitive. Second, collaboration between the three sponsoring businesses was facilitated to increase their spend with empowerment companies. Thirdly, the BLC identified potential business opportunities and assisted the empowerment companies to exploit them. Finally, these activities ensured the companies adhere to mining charter provisions applicable to procurement.

The BLC has been highly successful. Between January 2004 and October 2004, over 250 businesses registered with their database for acceptance onto the programme. One third of Palabora's total procurement expenditure during this time was with black economic empowerment companies and it continues to grow.

Approximately 60 of them benefited from the programme by supplying goods and services. Many of the other companies in the database benefited from other services provided by the BLC, such as training, developing business plans, financial support and help with expanding business opportunities.

human development

Case Study one: When Richards Bay Minerals (RBM) began operations in 1976, poverty was rife in the neighbouring rural communities.

Schools were over crowded, inaccessible and ill equipped, and many teachers received inferior training as a legacy of apartheid.

Absenteeism at schools was high because of ill health exacerbated by poor nutrition, lack of running water and clinics. Today, these schools are viewed as models of excellence and the quality of education in the area has dramatically improved, largely as a result of an ongoing community education enhancement programme started by RBM in 1977.

RBM built and equipped Tisand Technical High School with fully equipped workshops for electronics, metal work, motor mechanics, electrical training as well as a library, computer centre and fully equipped indoor sports centre.

It is recognised as a centre of excellence and a role model for other schools in the region, producing consistently superior results in technical, maritime and commercial fields, suitably qualifying pupils for further study or entry into the local workforce.

RBM has built and equipped 214 new classrooms and renovated 197 classrooms to the benefit of about 29,000 learners per annum. Additionally the company has built and equipped science laboratories, libraries, resource centres and administration blocks at local schools and supported 10 crèches, ensuring that all the schools it supports have a supply of potable water and hygienic toilets.

As a result attendance at schools has improved along with the general health and wellbeing of pupils; matriculation results continue to improve each year; pupils are better prepared to enter the world of work or progress to tertiary education; teachers are benefiting from skills transference and capacity building; and school principals are being empowered to enhance their skills and manage their resources more effectively.

RBM plans to continue education programmes by moving into new rural areas, transferring skills, building new structures and developing self sustainable communities to lead these initiatives.

Case Study two: Rio Tinto is helping in the war against HIV/AIDS, especially in southern Africa where the epidemic is greatest.

Rio Tinto businesses have comprehensive programmes including AIDS education and awareness for workers and local communities. Communications with employees emphasise that the most effective weapon against HIV/AIDS is not a drug or a lifestyle, but to know one's HIV status. Knowledge will help manage the disease and live a healthy life.

Affordable access is provided for employees and their nominated partner to treatment that includes antiretroviral therapy. Employees are strongly advised to take voluntary counselling and testing to empower them to manage their health using the wellness and treatment options available.

RBM South Africa uses theatre to reinforce safety messages and HIV/AIDS awareness at employee functions such as safety award ceremonies. In 2004, Richards Bay produced United against AIDS, a simple and informative booklet that describes the nature of sexually transmitted diseases, the importance of individuals determining their HIV status, the treatment of AIDS, and tips on how individuals can arm themselves against the disease by knowing fact from myth.

Both RBM and Palabora Mining, which offers similar programmes through its Foundation, make extensive use of peer educators. These are co-workers who have been trained to advise and assist workers on matters relating to HIV/AIDS. At Palabora "HIV ambassadors" distribute a health porridge and multi-vitamins to increase immunity among HIV sufferers, and male and female condoms to promote safe sex. Both operations offer free counselling and testing as well as condom dispensers in washrooms and change rooms throughout their sites.

A similar focus exists at other southern African operations such as Rössing Uranium in Namibia and Rio Tinto Exploration in Botswana and South Africa. Discrimination towards employees on the basis of real or perceived HIV status is not tolerated. The confidentiality of all information on the HIV status and condition of employees and community members is strictly upheld and HIV/AIDS screening is not undertaken during recruitment or as a condition of employment.