Joining forces for positive impact

Delivering broad benefits

There are, of course, major practical and commercial advantages to joint ventures.

Developing a new mine is a massive undertaking. A joint venture is sometimes the most effective way to make it happen.

Well-established miners may bring infrastructure, experience and access to finance, while junior miners may have the rights to a tenure that they are unable to develop on their own. In other cases, one company may have strong experience in extraction, but needs a partner for processing or access to markets. There are a range of similar reasons.

Ultimately, the whole adds up to something greater than the sum of its parts, and that’s what I really like about joint ventures.

By working together, we deliver broad benefits. For example, through our longstanding joint ventures with China Baowu Steel Group Corporation, we’re working to co-create the future of low carbon steel.

Collaborating for climate and community

Joint ventures enable our industry to tackle some of our planet’s greatest challenges.

We know that the only way to achieve net zero emissions as a company and as an industry is by partnering with diverse experts and organisations.

Joint ventures in mining aren’t restricted to development and production relationships.

The sector can extend its commercial arrangements to target a wide range of environmental, social and governance goals.

The ELYSIS joint venture is an excellent example. Since 2018, Rio Tinto has worked alongside Alcoa – supported by Apple and the governments of Canada and Québec – to develop aluminium smelting technology that produces no direct greenhouse gas emissions.

This year, we announced that we will install carbon free aluminium smelting cells at one of our Canadian smelters, using the first technology licence issued by the joint venture.

We’re also thinking deeply about the impacts of mine closures around the world, including social and community impacts. We recently collaborated with academia and industry to launch a new Leadership in Sustainable Mine Closure tertiary education program, and this will be a growing priority for many of our joint venture companies.

A personal experience

At Rhodes Ridge, our joint venture partner, Wright Prospecting, shares our strong commitment to leave a positive legacy from our operations.

One of my most rewarding experiences on the project so far has been visiting Rhodes Ridge with them.

They are very passionate about achieving positive outcomes for Traditional Owners; local people; and the greater Pilbara, Western Australian, and Australian communities.

Wright Prospecting also brings decades of experience and understanding of the site. They have very strong environmental and community engagement capabilities within their organisation, and it’s a pleasure to be working alongside their teams and exchanging knowledge in these areas.

Above all, joint ventures are about relationships, and a lot of hard work goes in behind the scenes to build partnerships that last. Many continue for 20 to 30 years, or more, so you have an extended opportunity to experience other ways of working and other corporate cultures.

Joint ventures have been an unexpectedly important part of my career so far. And given the mutual benefits they offer for all companies and surrounding communities involved, I have no doubt that they will continue to be integral to the future of the mining sector.