HIsmelt Sustainable Development Report 2007 - Rio Tinto

HIsmelt Sustainable
Development Report
2007

The HIsmelt process is the most
important advance in iron making
technology since the Chinese
invented the blast furnace 2,000
years ago.
The first HIsmelt facility in the
world based in Kwinana, Western
Australia is setting the highest
environmental standards.
Front cover;
The HIsmelt facility is located on
Cockburn Sound, an inlet of the
Indian Ocean used regularly to
train horses.
Contents
02 MD’s Message
04 Sustainable Development
06 People
14 Planet
19 Prosperity

MD’s Message
We have found a better way
We have found a
better way.
It’s a challenge the whole world is talking
about. How do we continue to advance
societies through economic development
while taking special care to protect the
environment?
For HIsmelt, this rests with a technology
we have developed over 25 years to bring
to market a better environmental solution
to iron and steel production.
In 2006, our world first HIsmelt® plant
located in Kwinana, Western Australia
began producing, on a commercial scale,
a premium grade iron product called pig
iron. Pig iron is a primary ingredient in
steel making.
We have proven to the world that there
is a better way to produce iron and steel
with a significantly lower environmental
footprint.
Environmental advantage is just one way we contribute
to sustainable development. We also recognise the
importance of our social contribution. The health and
safety of our employees and communities comes before
everything else. We also work with the community to
support projects and initiatives that bring about positive
experiences for local people. While all our partnerships are
important to us we place particular emphasis on building
future workforce capability for young people in the area.
This report summarises our 2007 performance across
social, environmental and economic dimensions – we refer
to these as People, Planet and Prosperity.
I would like to thank all HIsmelt employees and
contractors for their efforts during 2007. It’s a big ask
to transform a research and development project into a
fully operational facility. While we are not without our
challenges, we have a focused and committed team that is
working hard to achieve our operational and sustainable
development goals.
We welcome your feedback on this report by emailing us at
mail@hismelt.riotinto.com.au.
Stephan Weber
Managing Director, HIsmelt
02 03
MD’s Message
We have found a better way

Sustainable Development
What does it mean to HIsmelt?
Global demand for iron and steel
continues to grow, just as expectations
by society to produce these products in a
socially and environmentally responsible
way are at an all time high.
HIsmelt is delivering better environmental
solutions to the ironmaking industry, and
in doing so hopes to assist developed and
developing countries to meet their own
sustainable development (SD) goals.
HIsmelt’s commitment to SD is reflected in the way we
work and what we do everyday. It is not only the right
thing to do but makes good business sense.
We ensure that our contributions to sustainable
development are both tangible and meaningful through
activities in the following six areas:
• Environment
• Communities
• Materials stewardship
• Employees
• Operations
• Business partners.
We publicly report our social, environmental and
economic contribution each year in this, our Sustainable
Development Report. We do this under three key themes
- People, Planet and Prosperity.
To be successful, sustainable development (SD) should be
integrated into all aspects of what we do. To achieve this
we have developed a SD framework that articulates our key
focus areas, key stakeholders and key initiatives each year.
The framework allows us to focus our efforts and track
progress on each key area. In 2008 formal performance
indicators will be established against the six areas of SD.
EnvironmEnt
opErations stEwardship
partnErs Community
EmployEEs
HIsmelt Community Advisory Committee on Sustainable
Development
The local community plays a key role in HIsmelt’s
sustainable development program. A 10-member
Community Advisory Group operates as a direct link
between the company and our community, helping to
assess local issues and investigating new ways to promote
sustainable development with internal and external
stakeholders.
The voluntary advisors, along with members of HIsmelt’s
management team and operations staff, develop a detailed
understanding of our business and work to:
• Identify local programs of benefit to HIsmelt and the
community.
• Participate in community surveys to determine local
needs.
• Contribute and investigate new ideas to promote SD
initiatives.
• Inform the community about sustainable development
activities at HIsmelt.
Sustainable Development 2007 Performance Summary
Focus Area Measure Result Comment
People • Total lost time injuries
• Medical treatment cases
• Intake of graduates,
trainees and apprentices
intake
• Community partnerships
Planet • Greenhouse gas emissions
intensity
• Treated waste water
(KWRP)
• Scheme water
• Environmental incidents
Prosperity • Tonnes of pig iron produced
• Material stewardship
– life cycle assessment
of HIsmelt operation
commenced
04 05
2
3
Employed a total of 6 trainees,
graduates and apprentices
4 major partnerships and
a range of sponsorships in
addition to wider Rio Tinto
Group spend locally
-e 4.5tCO2 1267 ML
571 ML
No high or critical
121,530 tonnes
Assessment 80% complete
Same number of injuries as
2006
Improved number of medical
treatment cases from 2006
Increased number from 2006
Shift in focus from
sponsorships to sustainable
partnerships
Significant improvement from
2006
Analysis of site water balance
to reduce scheme water usage
and maximise KWRP water
usage
6 minor incidents
An increase in production from
94,183 tonnes in 2006
See Prosperity section of this
report for further information
Sustainable Development
What does it mean to HIsmelt?

People
Working with the community 06
We seek to understand the social,
economic and environmental impacts and
opportunities arising from our activities,
for the local and wider community.
Stakeholders are local communities,
including Indigenous communities, in the
Cockburn, Kwinana and Rockingham area;
HIsmelt employees and contractors; non
government interest groups; Federal, State
and local governments including relevant
agencies and departments; joint venture
partners and suppliers.
We adopt a philosophy of respect for all stakeholders and
honour the needs of the local community by ensuring
we listen, act and do what we say we will do. Noise is an
example of an issue raised by community where we have
taken direct action. In 2007 we began monitoring noise
levels on a daily basis and reporting results publicly on the
HIsmelt internet site. This level of reporting is continuing.
We continue to be a full member of the Kwinana Industries
Council. This local business association with around 40
full and associate industry members aims to promote and
contribute to the sustainable co-existence of Kwinana
industry, the community and the environment.
Community consultation happens through various means.
We attend the bi-monthly Community Industries Forum
run by the Kwinana Industries Council. We regularly
attend meetings in the local area at the request of
community, government or industries. Feedback received
at these forums that relate to HIsmelt are formally reported
through to the HIsmelt senior management team. The
team then considers any course of action to expand on an
idea or opportunity or to mitigate or resolve an issue.
The HIsmelt Community Advisory Committee on
Sustainable Development helps to guide and inform
us on future community partnerships and sustainable
development initiatives. Please refer to the Sustainable
Development at HIsmelt section of this report.
In 2007, Rio Tinto conducted two surveys – Opinion
Leader Research and a General Public Reputation Study
which included the HIsmelt Operations in Kwinana.
Rio Tinto’s economic contributions to and investments in
the region were recognised as high. Issues for the future
revolved mainly around environmental concerns, including:
• Protection of flora and fauna impacted by operations.
• Responsible water and energy use.
• Being involved in environmental programs.
Comments on what Rio Tinto is doing well included:
“Recognising the rights of Indigenous Western Australians
and working to ensure those rights are factored into the
company’s business policies and procedures.”
“An effective and efficient mining company that provides
leadership on a number of issues both economic and social.”
“They’re providing
employment and jobs,
which is good for the
Australian economy.”
Comments on what Rio Tinto could do better:
“Working more closely with government agencies to
provide infrastructure and services to the company’s
communities, particularly during the boom years.”
“Measuring social impacts, not just applying
environmental assessment processes.”
“Trying to run things better so as not to damage the
environment – regulate greenhouse emissions and the
fuels they use.”
HIsmelt is proud to
support community
and education programs.

“Open Days are a great way
to meet our neighbours.”
HIsmelt Community Open Day
We opened our doors to the public in 2007 at the HIsmelt
Community Open Day. Over 400 local community
members visited our operations, went on a site tour and
learnt about how the HIsmelt technology is forging a
new era in iron and steelmaking technology. Community
partners manned displays at the event, profiling
their achievements, projects and activities and a fun
questionnaire tested people’s knowledge of HIsmelt and
what we do. HIsmelt employees from all facets of the
business gave up their own time to be at the event and
answer questions.
Community Partnerships
At HIsmelt we invest in community development projects
via long term partnerships designed to enhance quality of
life through education, technology and the environment.
Major community partnership and activities HIsmelt was
involved in for 2007 include:
Learning for Life
Kwinana families are unlocking the reading potential
of their children through an important local education
partnership between Rio Tinto (including HIsmelt) and
The Smith Family.
First formed in July 2003, the partnership facilitates The
Smith Family’s Learning for Life program in the Kwinana
region. In the next three years Rio Tinto, through HIsmelt
and its community investment arm the Rio Tinto WA
Future Fund, will contribute $780,000 to The Smith Family
in support of this initiative.
Learning for Life is a scholarship program that helps
hundreds of Western Australian children gain access to
education by providing financial support to assist with
education costs such as books, uniforms, stationery,
excursions and camps.
In 2007, a new innovative program as part of Learning for
Life called Keys to Literacy was launched. The program
unites a number of Kwinana community groups with
literacy programs under one banner to provide a suite of
resources for parents and children of all ages.
Keys to Literacy includes the following programs:
Better Beginnings is a universal early intervention family
literacy program that focuses on working in partnership
with families to provide positive language and literacy
influences for children in their first three years of life.
The program has been developed by the State Library of
Western Australia in response to the early years research
that shows that learning to read is the single most
important factor in school success.
Let’s Read is an early childhood literacy initiative of the
Centre for Community Child Health (a key research
centre of the Murdoch Children’s Research Institute) in
partnership with The Smith Family, aiming to give families
the information and tools they need to introduce their
preschool-aged children (0-5 years) to books in a bid to
improve Australia’s literacy levels.
Kwinana Industries Education Partnership (KIEP)
KIEP is a formal agreement between members of the
Kwinana Industries Council and the 10 local senior high
schools. The partnership aims to bring education closer to
industry with the ultimate goal of switching youth on to
seeking careers in the local region.
Raising students’ awareness early on about the sorts of jobs
that are on offer along the Kwinana strip gives companies
in the region the best possible chance of securing a local
future workforce.
Working with the community 09
People

Community Partnerships continued
Baldja Lunch Program
At a local primary school in Kwinana two dollars provides
a healthy sandwich and drink for children who may
otherwise go without lunch.
A program run by the local Aboriginal enterprise, Baldja,
and supported by HIsmelt in 2007, provides around 300
lunches each week, delivering many more benefits than
just satisfying hungry stomachs.
The program has found that by providing a nutritional
meal for children who have come to school without their
lunch, they are more able to concentrate on school work. It
has also helped with behavioural issues.
Baldja workers, trained in food handling and first aid,
prepare and serve the lunches and act as a positive role
model for both Aboriginal and non Aboriginal students.
Baldja also provides catering for school excursions. Baldja
staff have taken students into the bush, built a camp
fire and cooked damper and kangaroo stew. They’ve also
shared cultural stories from their Indigenous heritage.
In 2008 HIsmelt will continue to work with The Smith
Family, local schools and Naragebup to encourage school
community gardens and breakfast programs.
HIsmelt artist@work
Many HIsmelt employees tried their hand at sketching
during 2007 as part of Artopia’s artists@work program. In
two hands-on workshops run over two weeks staff were
given the opportunity to explore their creative side with
landscape artist Angela Rossen.
Artopia is a biennial festival that welcomes people into the
working world of artists. The artist@work program brings
artists directly to the community where they can share
their skills and expertise.
HIsmelt community partners also benefited from the artist@
work program. The Smith Family Grandparents regular art
group met with Angela and discussed the commercial aspects
of selling their art. The Cockburn Wetlands Education Centre
ran an educational tour where children collected plants and
Angela taught them to draw and use watercolours to produce
wonderful paintings. The local Indigenous Naragebup centre
was also involved with a group of home schooling students
learning to draw long neck turtles.
A selection of art produced from the activities were on
display at the HIsmelt Community Open Day.
The Way We Work
The Rio Tinto Group, of which HIsmelt
is a part, expresses its company values
through a set of business principles,
policies and standards. These are set out
in a statement of business practice called
The Way We Work.
The Way We Work underpins the way we manage the
economic, social and environmental effects of our
operations. It guides our approach to business through
policies in the following areas:
• Communities
• Employment
• Environment
• Human rights
• Land access
• Occupational health
• Political involvement
• Safety
• Sustainable development.
The Way We Work also articulates expectations in
relation to openness and accountability, including
corporate governance and internal controls and reporting
procedures.
HIsmelt expects business partners such as contractors and
suppliers and others with whom we have a substantial
involvement, to maintain high standards themselves. We
inform them of Rio Tinto’s principles and policies and
work with them where appropriate to support the adoption
of policies consistent with our own. We are prepared to
withdraw from business relationships if any partners do
not live up to our values.
HIsmelt People
At HIsmelt we promote equal employment opportunities,
diversity and inclusion and do not discriminate against
our employees. We strive to provide fair working
conditions and to maintain a safe and healthy working
environment.
In 2007 HIsmelt employed 145 employees and an average
of 470 contractors per month.
We respect our employees and believe that the success
of our business is led by each individual’s creativity and
good teamwork. Through our commitment to training
and development we aim to stimulate personal and
professional growth for our people.
Leadership development continues to be a major focus.
Through a customised and comprehensive leadership
development program we are empowering our leaders to
continually build employee capability in support of our
business objectives.
Attracting new talent is essential to future business
success. In a joint program with Apprenticeships Australia
and the Chamber of Commerce and Industry we have
recruited two new apprentices, one mechanical and one
electrical, and an administration trainee. A partnership
approach through the Kwinana Industries Council and
its Kwinana Industries Education Partnership is helping
to attract young people to jobs in the short and long term
along the Kwinana industrial strip.
Staff retention and attraction remains a priority in the
tight Western Australian labour market. A higher then
usual changeover of employees at HIsmelt was expected
during 2007 as the facility continued to transition from a
research and development facility to a fully operational
ironmaking plant. Retention strategies and recruitment
activities have been put in place to ensure we have a
sustained and talented workforce across all disciplines.
Learning on the job
Two Year 12 students are getting valuable hands on
experience at the HIsmelt plant learning the trade of a
Process Plant Operator.
In addition to their regular schooling, the students attend
competency training at the Australia Centre for Energy
and Process Training. This pilot program is run by SMYL
Community Services.
SMYL places the young people into ‘host businesses’ so
they can experience first hand how the skills they learn
apply to the real world.
The students spend one day a week at the learning
centre and one day a week at an operation for 32 weeks.
They come out of the program with a WA Certificate of
Education for successfully completing Year 12 as well as a
Certificate II in Process Plant Operations.
With the work experienced gained and two certificates
under their belt, students have a very real chance at
gaining an apprenticeship.
10 11
People
HIsmelt doing it right

People
Safety comes first
12
Safety is at the heart of everything we
do. Keeping employees, contractors,
visitors and communities safe is our first
priority. We believe that all injuries are
preventable and our goal is zero injuries.
The achievement of a safe working environment at
HIsmelt is based around:
• Demonstrating genuine care for the wellbeing of each
other at every level of the company.
• Providing strong safety systems based on internal and
external standards.
• Providing training in working safely in potentially
hazardous circumstances e.g. working at height, isolation
procedures and confined spaces.
• Developing and maintaining a culture that supports safe
work practices through regular and open communication.
• A team based approach to the identification of hazards
and ‘at risk’ behaviour.
HIsmelt’s reportable incidents including health, safety,
environment and process related incidents were 252 in
2007 – an improvement from 2006 levels (321 in 2006).
Fifty five per cent of these incidents related to safety.
2007 Injury / Illness Graph
Reported, FAC, MTCI, RWDI and LDI
Injury / Illness Count
20
15
10
5
0
Injury / Illness
Foreign Body
Contusion
Burns
Superficial Injury
Open Wound
Sprains / Strains
Laceration
Two lost time injuries (LTIs) and three medical treatment
cases (MTCs) were reported in 2007. The LTIs remained at
the same number as 2006. The first of the two injuries was
a contractor who twisted his ankle on uneven ground.
The second was a contractor who crushed the end of his
thumb whilst handling a large piece of wood. The number of
medical treatment cases (MTCs) decreased in 2007 to three.
The all injury frequency rate decreased from last year’s
result of 2.53 to 1.45 in 2007.
The most common type of injuries were:
• hand injuries
• foot and ankle injuries
• eye injuries.
Safety Interactions
A safety interaction involves peer observation of a work
practice to identify and encourage safe behaviours. An
interaction can reveal an ‘at risk’ behaviour and help to find
solutions to remove the risk of a potential safety incident.
In 2007, the approach to safety interactions changed
from a quota based system, where a set number of
interactions were expected from each person to a quality
based approach. A monthly incentive payment is paid to
all employees if there is 100 per cent participation in the
program.
Muscular
Eye Disorders
Not Assigned
Reported
FAC
MTCI
RWDI
LDI
External Causes
Unspecified
Skin Illness
Poisons and Toxins
The data from each safety interaction is used proactively
to prevent future safety incidents. Both the total number
and quality of safety interactions improved in 2007. The
three most common ‘at risk’ safety behaviours related to
non compliance with procedures, not wearing appropriate
personal protective equipment (PPE) and body positioning
(standing within the ‘line of fire’).
An internal and external safety audit were conducted in
2007. A Health, Safety and Environment Audit by Rio Tinto
is completed every four years. Findings from the audit
were positive with two recommendations for improvement
that have been actioned. The Department of Industry and
Resources conducted a further audit based on the Mines
Act and related regulations. Results from the audit were
pleasing.
Emergency Response
In the unlikely event of an emergency or disaster at our
site, a highly skilled Emergency Response Team is always
on hand.
Four emergency response exercises were carried out in
December 2007. Assessment of those scenarios showed
HIsmelt had a high level of emergency response capability.
On December 31, the Emergency Response Team was able
to put its skills and training to the test. A minor break out of
hot metal from the Smelt Reduction Vessel on site required
quick and decisive action. The Emergency Response Team
was on hand in record time and no injuries resulted.
Health
An important element of our sustainable development
approach is the health and wellbeing of our employees,
contractors and the people in the communities in which
we operate.
The nature of occupational illnesses is changing. Illnesses
such as stress, fatigue, muscular-skeletal and the normal
results of ageing such as heart disease and reduced
physical capacity present different challenges to the
traditional mining health issues.
We are committed to reaching our goal of no new cases
of occupational illness and therefore believe that we will
only achieve this through promoting the good health of
all our employees and contractors. Supporting healthy
lifestyles reduces health related risks such as fatigue and
obesity, improves productivity and will help us address
an anticipated workforce skills shortage by delaying
retirement of skilled workers.
In 2007, around 65 per cent of our employees were
involved in the company’s health and wellness program.
Muscular-skeletal illnesses remain the most common
cause of new occupational illnesses. Muscular-skeletal
illnesses are most commonly due to heavy lifting. Noise
exposure also represents a risk to people operating large
equipment. A great deal of work has been done to reduce
noise exposures at the Hismelt plant.
People
Safety comes first
13

Planet
Action not words
14
HIsmelt sets a positive example for the
ironmaking industry. We are developing
and continue to effectively market to
the world a technology that will result
in cleaner, more efficient iron and steel
production.
Our environmental commitment extends well beyond
the technology we have developed. Our Kwinana facility
is located near to Cockburn Sound – a stretch of ocean
that is home to a diverse range of marine life and is used
for recreational fishing, boating and swimming by local
communities. We are aware of our responsibilities in caring
for the environment and work hard to minimise and manage
any impacts of our operations.
Industry Leadership in Environmental Management
The HIsmelt technology offers iron and steelmakers
around the world significant environmental benefits
compared to traditional methods including:
• The elimination of coke ovens and sinter plants result
in no emissions of dioxins, furans or polycyclic-aromatic
hydrocarbons from a HIsmelt facility.
• Improved energy efficiency.
• The ability to use more iron ore that was previously not
suited to iron making processes.
• The ability to treat steel plant waste streams such as
millscales, slags and reverts.
Greenhouse Gas Emissions
We accept the urgent need for climate change action. Since
2003, Rio Tinto’s climate change program, of which HIsmelt
has been an active participant, has had three core themes:
• Reducing emissions from its operations
• Understanding and developing low emission product
pathways by working with others on supply chain
emissions and on breakthrough technologies
• Engaging with governments and stakeholders to advocate
sound and efficient domestic and international policies.
Internal studies indicate a HIsmelt facility, at its current
level of development, is comparable to the most efficient
blast furnaces in the world in terms of energy utilisation
and greenhouse gas (GHG) emissions.
Planned future developments, when teamed with carbon
sequestration, have the potential to offer major GHG
reductions.
Our key measure for greenhouse gas emissions is
greenhouse emissions intensity - measured in tonnes
of carbon dioxide equivalent per tonne of hot metal
produced. We also monitor the total amount of greenhouse
-e gas emissions as actual tonnes of CO . 2
Total tonnes of greenhouse emissions was 550,533 tonnes in
2007, a reduction of 36,654 tonnes or 6.2 per cent on 2006
levels. Total production of pig iron increased to 121, 530
tonnes in 2007, a 22.5 per cent increase on 2006 production.
The above figures combined provide a greenhouse
intensity measure as displayed on the graph. Greenhouse
-e intensity rate improved significantly to 4.5 tCO per 2
-e tonne this year from 6.2 tCO in 2006. This reduction is
2
largely attributed to improvements in coal use efficiency
and increased production in the reporting year.
Production and Emissions 2005 - 2007
Hot Metal produced and Greenhouse Gas Intensity
Hot Metal produced (tonnes)
125,000
100,000
75,000
50,000
25,000
0
2005 2006 2007
Year of Production
Hot Metal Greenhouse
produced Gas Intensity
Air Emissions
Air emissions of sulphur dioxide (SO 2 ) and nitrogen oxide
(NO x ) are measured by continuous emissions monitors
installed on our primary stacks. This system provides
live assessment of waste gas outputs and is routinely
monitored and compared to operational licence limits set
by industry regulators.
In 2007, HIsmelt emitted 5.36 tonnes of SO 2 , compared
with 17 tonnes in 2006. This reduction in SO 2 is largely
due to the reduced operational period during the
reporting year, but also serves to highlight the vast
improvement in production rates and energy efficiency
of the plant, essentially “making more with less”. The
flue gas desulphurisation unit which was installed
during construction of the HIsmelt plant, has proven to
be a highly effective measure in removing at least 96
per cent of SO 2 out of the flue gas emitted. Monthly SO 2
emissions are reported on the HIsmelt website and to the
Department of Environment and Conservation.
In 2007, NO x emissions were 108 tonnes, a slight reduction
from 109.9 tonnes in 2006.
50
40
30
20
10
0
Greenhouse Gas Intensity
Pig Iron is shipped to customers
in Thailand, Malaysia and Taiwan.

Planet
Action not words
Water Use
Around 70% of HIsmelt’s water needs in 2007 were met
by utilising recycled waste water from the Kwinana Water
Reclamation Plant (KWRP).
Site total annual water use V production
Water type 2005 2006 2007
KWRP (kL) 566,000 1,619,000 1,267,000
Scheme (kL) 418,000 439,000 571,000
Production (t) 5,140 94,183 121,530
Site normalised water use (kL per thm)
2005-2007
Year
2007
2006
2005
0 20 40 60 80 100 120
kL/Total Production
KWRP (kL) Scheme (kL)
Total water use reduced in 2007 which is directly related
to the reduced operational on-time for the HIsmelt
facility in 2007 as detailed above. Several water initiatives
and environmental improvement initiatives relating to
increasing KWRP use were progressed throughout the year
to further reduce our reliance on a very valuable and finite
natural resource, including:
• Investigating an increase in our maximum allotment
from KWRP above the supplied 8 ML/day.
• Detailed analysis of our site water balance to see where
we can maximise KWRP usage feed.
• Supporting the proposed KWRP expansion project to
potentially make more recycled water available to the
Kwinana Industrial strip.
• Along with a road sealing project, use KWRP water for
road dust suppression to control fugitive dust.
Groundwater Monitoring
Groundwater monitoring is particularly important due to
HIsmelt’s close proximity to Cockburn Sound. Fourteen
ground water monitoring bores are analysed and an annual
report on groundwater results is sent to the Department
of Environment and Conservation as per our operational
licence conditions. Since HIsmelt’s operations began, there
has been no measurable change on the groundwater.
Noise Monitoring
Cumulative noise from the Kwinana Industrial area
continues to be a concern to the local community. To
understand noise levels from our facility we undertake
daily noise monitoring that is publicly available on the
HIsmelt website at www.hismelt.com.au .
Twenty four hour data recordings, along with an
explanation about recorded noise peaks that exceed the
Investigation Trigger Level, are posted on the website
on the first working day after downloading from the
monitoring station.
Reducing Waste
HIsmelt facilities are able to recycle steel plant waste
efficiently and in an environmentally friendly manner.
Millscales, coke breeze, slags, dusts and reverts (see
HIsmelt website for a glossary of these terms) can be
directly treated by injecting them into a molten bath in a
vertical Smelt Reduction Vessel. Importantly, this prevents
the formation of any dioxins and furans. The Kwinana
facility has proven that the HIsmelt process readily
captures iron, carbon and flux units from these wastes
which offers significant operating cost advantages as well
as environmental benefits.
We recycle many other waste types that are reducing waste
volumes being disposed of at landfill. These include oil,
drums, oil/fuel filters, air filters, wooden pallets, scrap
metal, printer toner cartridges, paper and cardboard.
Hazardous waste types are sent offsite for treatment and
specialised disposal. These facilities are regularly audited
to ensure wastes are properly disposed.
In 2007, 30,000 tonnes of process waste (sludge) went to
landfill. A further 4900 tonnes of non mineral waste also
went to landfill with 59 tonnes of waste recycled.
Energy Efficiency
Energy efficiency was a key design principal in the
development of the HIsmelt technology. By-products are
used to ensure that process efficiency is optimised at each
point of the operation.
The offgas from the smelting process is re-used in three
major combustion activities at HIsmelt. Traditionally this
offgas may have been discharged. In order to reduce our
impact on natural resources such as natural gas the offgas
is used in the Stoves, the Waste Heat Recovery Unit and the
Iron-Ore Pre-Heater. For further explanation of each offgas
use, please refer to the HIsmelt website at www.hismelt.com.au .
Environmental Incidents
In 2007 there were no environmental incidents reported
with high or critical impact. There were six minor
incidents reported to the Department of Environment and
Conservation (DEC). Two were community complaints
regarding dust from the site. A dust sealant has since been
applied to the roads on site. The remaining incidents related
to exceeding SO X and NO X targets, but during the year there
were no exceedances of environmental licence limits.
Building Partnerships to Protect and Preserve the
Environment
Cockburn Wetlands Education Centre
Just 10 kilometres from HIsmelt’s Kwinana facility are the
Cockburn Wetlands. These wetlands and their surrounding
bushland are a vital part of healthy ecosystems in the area,
providing a natural habitat for a range of wildlife.
The Cockburn Wetlands Education Centre attracts over
2,500 visitors each year, raising the awareness of the
importance of wetlands and the need for their protection
and ongoing management.
HIsmelt’s partnership with the centre has resulted in the
appointment of a wonderfully enthusiastic education
officer who is going to great lengths to make the centre’s
community activities both educational and fun.
Oil Mallee Tree Planting
The city children from Calista Primary School and country
children from Wickepin Primary School come together
once a year on a farming property just outside Wickepin to
plant Oil Mallee trees in the Lake Toolibin catchment area,
one of the last freshwater lakes in the wheatbelt region of
Western Australia.
The program began around five years ago when HIsmelt
offered local Calista Primary children the chance to plant
trees in the country.
What began as a partnership between HIsmelt and Calista
Primary, with HIsmelt sponsoring the travel down to
Lake Toolibin, has come to involve Wickepin Primary, the
local shire, which provides the accommodation, and local
farmers who provide the land and the trees.
The Oil Mallees tackle wheatbelt salinity problems by
drawing in surplus water without negatively impacting on
other farming enterprises. Over the past five years the total
number of trees planted has exceeded 35,000.
The children plant saplings for up to two kilometres at a
stretch, planting about 100 plants each.
Naragebup Environment Centre
HIsmelt supports the work of the Naragebup Environment
Centre by contributing towards its education program.
The local Indigenous Naragebup community runs hands-on
education programs for adults and children to promote the
benefits of actively managing the environment and in doing
so making a contribution to sustainable development.
The centre is open to the public six days a week and has a
Sustainability Shop that supports local craftspeople who use
recycled, environmentally friendly natural resources. The
shop helps to strengthen community capacity, build local
prosperity and cut down on personal and product travel.
Primary school children have
planted over 35,000 Oil Mallee
trees since the program began
five years ago.
16 17
Planet
Action not words

From ships to bridges - to pots and
paperclips - iron is the mainstay of
our fast developing modern world.
HIsmelt Technology
The HIsmelt® process is a direct smelting
technology that smelts iron ore fines and
non coking coal to produce a premium
grade iron product.
The technology provides significant environmental
benefits over traditional ironmaking as it removes the
need for coke ovens and sinter plants – both of which
produce the majority of non-CO 2 emissions in ironmaking
(including dioxins, furans and other carcinogens). HIsmelt
also represents a lower cost, more efficient and flexible
alternative to the conventional ironmaking technology.
The HIsmelt process has been developed over 25 years by
Rio Tinto and has been one of Australia’s largest private
research and development projects. More than A$2,000
million has been invested to bring the technology to fruition.
The world’s first commercial HIsmelt facility is located in
Kwinana, Western Australia and is owned by a joint venture
comprising Rio Tinto (60%), US steelmaker Nucor Corporation
(25%), Japanese trading house Mitsubishi Corporation (10%)
and Chinese steelmaker Shougang Corporation (5%). Initial
commissioning was completed in 2005 and the plant has
now been operational for over two years.
Production Performance
2007 was the second year of production for HIsmelt. The
technology is now operating at a commercial scale. The
flue gas desulphurisation system was modified during the
year enabling increased production.
The HIsmelt plant continues in a ramp up phase, and
will produce 800,000 tonnes of pig iron per year in full
production.
IRON ORE
COMPANY
OF CANADA
RIO TINTO GROUP
Marketing the Technology
The HIsmelt process produces a premium quality iron
metallic called pig iron. Pig iron produced at Kwinana
is branded as HIironTM and is delivered to the market
through the HIsmelt Sales Agency.
The plant produced 121,530 tonnes of pig iron in 2007
with shipments of approximately 92,750 tonnes exported
to customers in Thailand, Malaysia and Taiwan.
While the sale of the final iron product is an important
demonstration of the HIsmelt technology’s capability – it
is the technology marketed by HIsmelt Corporation that
continues to capture the interest of steel companies from
around the world.
On 4 September 2007, HIsmelt was delighted to welcome
the President of the People’s Republic of China, Hu Jintao,
to the Kwinana facility. President Hu is the third, and most
senior, leader from the People’s Republic of China to visit
HIsmelt in as many years, following the visit of Premier
Wen Jiabao in 2006 and Chairman Wu Bangguo in 2005.
Such visits demonstrate the high level of interest in the
HIsmelt technology.
A Member of the Rio Tinto Group
HIsmelt Operations Pty Ltd was formed to manage
and operate the plant on behalf of the joint venture
participants. It is a wholly owned subsidiary of Rio Tinto,
and is part of the Rio Tinto Iron Ore group.
The HIsmelt Kwinana Joint Venture facilities financial
performance is measured and reported through Rio Tinto
Headquarters in London, with 60 per cent thereof taken
into account. To view Rio Tinto’s annual financial results
go to the Rio Tinto website at www.riotinto.com .
COPPER ALUMINIUM EXPLORATION IRON ORE TECHNOLOGY ENERGY INDUSTRIAL
MINERALS
EXPANSION
PROJECTS
Rio Tinto Corporate Structure
Iron Ore
Company
of Canada
HAMERSLEY
IRON
HISMELT
ROBE RIVER
IRON
ASSOCIATES
Rio Tinto Group
PILBARA IRON
Copper Aluminium Exploration Iron Ore Technology Energy Industrial
Minerals
Expansion
Projects
Hamersley
Iron
HIsmelt
Robe River
Iron
Associates
Pilbara Iron
DIAMONDS
SIMANDOU ORISSA CORUMBA
Diamonds
Simandou Orissa Corumba
Prosperity
Leading the way
19

Prosperity
Leading the way
20
Product Stewardship
Responsibility for a product should not stop as it leaves a
factory’s premises. A shared responsibility for by-products
and products to downstream customers can greatly
contribute to sustainable development.
In 2007, Rio Tinto Iron Ore commenced a comprehensive
life cycle assessment across its value chain, gathering data
on environmental impacts from mine to customer gate
(Japan) and including the HIsmelt operation.
Further, research with universities and work with
downstream customers continues to find beneficial
uses for by-products from the HIsmelt process. Slag is
a by-product from our operations. Research continues
with CSIRO and Murdoch University to find uses for this
product in artificial wetlands and soil remediation.
Another by-product, baghouse dust - a fine powder of iron
ore - has the potential for use as a pigment in glassmaking
or in concrete manufacture. The long term solution to
recycling baghouse dust will be implemented in 2009.
Research and projects are in
place to utilise byproducts from
the production of Pig Iron.
01
The health and safety of
our employees, contractors
and visitors comes before
anything else.
05
The plant is designed
to provide all its own
electricity and supply
electricity to the grid where
there is a surplus.
09
A world leader in finding,
mining and processing the
earth’s mineral resources.
02
The HIsmelt process is the
most important advance
in iron making technology
since the Chinese invented
the blast furnace 2,000
years ago.
06
The HIsmelt process meets
the highest environmental
standards in ironmaking.
Future developments will
allow for major reductions
in greenhouse gases.
10
We support heaps of
wonderful projects in the
Kwinana community.
03
Iron is the most useful
metal in the world. In the
form of steel, it is used 20
times more than all other
metals put together.
07
Each year more than 500
children receive help with
their education through
funding from HIsmelt and
the Rio Tinto WA Future
Fund.
04
70% of water used at
HIsmelt is treated waste
water from the Kwinana
Water Reclamation Plant.
08
The three most senior
leaders of China have been
to visit HIsmelt in the last
three years - President
Hu Jintao, Chairman Wu
Bangguo, Premier Wen
Jiabao.
10amazing facts about what we do

HIsmelt
Leath Road
Kwinana, WA 6167
PO Box 455
Kwinana, WA 6966
Australia
www.hismelt.com.au
T +61 (0)8 9437 0600
This document is printed on 100% recycled paper that is manufactured to ISO
14001 environmental standards. The inks used in the printing of this report are
vegetable based.
© Rio Tinto plc and Rio Tinto Limited
Rio Tinto Limited
120 Collins Street
Melbourne
Victoria 3000
Australia
www.riotinto.com
T +61 (0)3 9283 3333