Since antiquity, a site along the Rio Tinto, in the Andalusian province of Huelva in Spain has been mined for copper, silver, gold, and other minerals. After a period of abandonment, the mines were rediscovered in and the Spanish government began operating them once again in Following purchase of the mine, the syndicate launched the Rio Tinto Company, registering it on 29 March
Appendix 1 Risk factors Rio Tinto's business units and functions assess the potential economic and non-economic consequences of their respective risks using the framework defined by the Group's Risk policy and standard. Principal risks and uncertainties are identified when the Risk Management Committee, business unit or function determines that the potential consequences are material at a Group level or where the risk is connected and may trigger a succession of events that, in aggregate, become material to the Group.
Once identified, each principal risk or uncertainty is reviewed by the relevant internal experts and by the Risk Management Committee. The following describes all currently-known principal risks and uncertainties that could materially 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.
The risk factors outlined do not include the management detail on how each is managed and mitigated, which is discussed in more detail on page 66 of the Group's Annual report.
Risks may materialise individually, simultaneously or in combination and could significantly affect the Group's: The principal risks and uncertainties should be considered in connection with any forward-looking statements in this document and the cautionary statement on the inside front cover.
External risks Nature Commodity prices and global demand for the Group's products are expected to remain uncertain Commodity prices and demand are volatile and strongly influenced by world economic conditions.
The Group's normal policy is to sell its products at prices that reflect the value of our products in the market and not to enter into price hedging arrangements. Recent volatility in commodity prices and demand may continue, which could adversely affect the Group's earnings, cash flow and mineral reserves.
The basis on which the Group prices iron ore in Asia is evolving and to the extent this results in prices or pricing mechanisms that are less favourable to the Group, its earnings and cash flow could be adversely affected.
Furthermore, iron ore prices are typically determined on a landed in China basis, and increases in the freight market would adversely impact Group earnings. Past strong demand for the Group's products in China could be affected by future developments in that country The Group is heavily reliant on the Chinese market.
A micro-economic slowdown, sudden economic disruption whether caused by sharp curtailment of bank credit or otherwise or the significant shift from infrastructure-led to consumer spending-focused growth could substantially decrease China's demands for the Group's commodities, adversely affecting the Group's profitability and cash position.
Rio Tinto is exposed to fluctuations in exchange rates The great majority of the Group's sales are denominated in US dollars, which is also the currency used for holding surplus cash, financing operations, and presenting external and internal results.
Although many costs are incurred in US dollars, a significant portion are incurred in or influenced by the local currencies of the countries where the Group operates, principally the Australian dollar and Canadian dollar. The Group's normal policy is to avoid hedging of foreign exchange rates and so the Group may be adversely affected by appreciation in the value of other currencies against the US dollar, or to prolonged periods of exchange rate volatility.
Currency fluctuations may negatively impact the Group's profitability and dividend payments as well as rating agency metrics and asset carrying values. Political, legal and commercial changes in the places where the Group operates The Group has operations in jurisdictions where governments and communities are seeking a greater share of mineral wealth.
Some operations are conducted under specific agreements with respective governments and associated acts of relevant legislative bodies. In several countries, land title and rights to land and resources including Indigenous title may be unclear.
Political and administrative change, policy reform, and changes in law or government regulation can result in expropriation or nationalisation of the Group's rights or assets.
In some jurisdictions, commercial instability can arise from a culture of bribery and corruption. In its operations and development projects, Rio Tinto is exposed to: Political instability and uncertainty or government changes to terms applicable to the Group's operations may result in increased costs for the Group, may curtail or negatively impact existing operations and prevent the Group from making future investments.
Community disputes in the countries and territories in which the Group operates Some of the Group's current and potential operations are located in or near communities that may regard these operations as being detrimental to them. Community expectations are typically complex with the potential for multiple inconsistent stakeholder views that may be difficult to resolve.
Stakeholder opinion and community acceptance can be subject to many influences, for example, related industries, operations of other groups, or local, regional or national events in other places where we operate.
These disputes can disrupt our operations and may increase our costs, thereby potentially impacting our revenue and profitability. In the extreme, our operations may be a focus for civil unrest or criminal activity, which can impact our operational and financial performance, as well as our reputation.
Increased regulation of greenhouse gas emissions could adversely affect the Group's cost of operations Rio Tinto's operations are energy-intensive and depend on fossil fuels. Worldwide, there is increasing regulation of greenhouse gas emissions, tighter emission reduction targets and progressive introduction of carbon pricing mechanisms.
These are likely to raise significantly worldwide energy, production and transport costs over the medium to long term, which will increase the Group's cost base and potentially negatively impact the Group's profitability. Regulations, standards and stakeholder expectations regarding health, safety, environment and community evolve over time and unforeseen changes could have an adverse effect on the Group's business and reputation The resources sector is subject to extensive health, safety and environmental laws, regulations and standards alongside community and stakeholder expectations.
Evolving regulation, standards and stakeholder expectations could result in increased costs, regulatory action, litigation or, in extreme cases, threaten the viability of an operation. Strategic risks Nature The Group's exploration and development of new projects might be unsuccessful Rio Tinto identifies new orebodies and mining properties through its exploration programme, and develops or expands other operations as a means of generating shareholder value.
Exploration is not always successful and there is a high degree of competition to develop world-class orebodies. The Group may also not be able to source or maintain adequate project financing, or may be unable to find willing and suitable joint venture partners to share the cost of developing large projects.Rio Tinto Group is an Anglo-Australian multinational and one of the world's largest metals and mining corporations.
The company was founded in , when a multinational consortium of investors purchased a mine complex on the Rio Tinto, in Huelva, Spain, from the Spanish timberdesignmag.com then, the company has grown through a long .
This statistic represents the group financial results of Rio Tinto in and , by product group. The Rio Tinto Group is a multinational exploration, development, production, and processing.
Essay about Rin Tinto Group: Annual Report Rio Tinto is a global and diversified miner and is divided into five product groups (Rio Tinto, ).
And according to Rio Tinto (), they are the aluminium product group, the copper product group, the diamonds & minerals product group, the energy product group as well as the iron ore . According to Rio Tinto’s annual report (), “Rio Tinto’s shareholders’ equity, earnings and cash flows are influenced by a wide variety of currencies due to the geographic diversity of the Group’s sales, expenditure and the countries.”.
Rio Tinto plc has submitted the Annual report, Strategic report and Rio Tinto plc Notice of annual general meeting to the UK Listing Authority and they will be available shortly for.
Rio Tinto Plc Common Stock (RIO) Quote & Summary Data sheet date" on page of the Annual Report is incorporated herein by reference.
In and , the Group did not receive any.