Education Information Brief March 2011

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1 Education Information Brief March 2011 About us At Rio Tinto Kennecott Utah Copper (Kennecott), sustainable development is important to our success. We accept the common definition of sustainable development which is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." While sustainable development cannot be achieved by one organization on its own, we believe that our business can make an important contribution to the ongoing, global transition to sustainable development. The copper, gold, silver, molybdenum and sulfuric acid we produce contributes to society's needs; creates wealth to support local communities and community infrastructure, health care and education programs; and delivers financial dividends for our shareholders. As part of the Rio Tinto group, our activities also provide the means and opportunity to develop new approaches to solving the world's environmental and human development challenges, such as climate change and poverty. We also recognize that, if not managed appropriately, some aspects of our activities have the ability to detract from sustainable development, such as options for the future use of water and land; impacts on local communities; and greenhouse gas and other air emissions from our operations and the use of our products. As a result, we aim to balance the complex interaction of environmental, economic and social factors that are fundamental to our business success in order to achieve our goal of contributing to sustainable development. The importance of education Kennecott provides continued education about our operations and the importance of mining in the community. We have identified attracting and retaining people as a critical business issue because we are challenged with finding skilled and trained people to fill engineering and technical roles throughout the business. Additionally, we recognize our ability to help motivate 1 Education Information Brief

2 and instill interest in mining and related technical roles in our immediate community by providing support around education-related activities. At Kennecott, the concept of Sustainable Development also emphasizes employee participation, continual learning and improvement because employee development is a strong aspect of social well-being. It is important to Kennecott to have complimentary scholarship programs and be recognized in our community as the employer of choice, and to embrace our employee s needs in the area of education. Demonstrating leadership External Kennecott Premier Scholarships The Kennecott Scholars Program was established at the University of Utah 20 years ago to recognize exceptional academic and leadership achievement. Since that time, Kennecott has supported 789 students with more than $2 million in scholarship awards. This program also exists, in some form, at four other colleges and universities (Utah State University, Brigham Young University, Westminster College, and Weber State University). The objective is to inspire future innovators and to prepare students in our surrounding communities to participate in the knowledge economy. These scholarships provide Kennecott with an effective tool to improve recruitment, encourage retention in disciplines related to our industry, and give back to the community. Kennecott scholarships must be applied for every year and may continue through a student s senior year depending on the student s ability to meet the criteria set forth in the scholarship. Students receiving scholarships have the opportunity to apply and be considered for an internship with Kennecott during one, or possibly two, summers between sophomore and junior year, and again between junior and senior year. Craftsmen Work Study Scholarship In 2006, in order to address the current and future need for skilled craftsmen, we implemented a Craftsmen Work Study Scholarship Program to assist technical and maintenance craft students at technical, vocational, and community colleges in Utah. The Craftsmen Work Study Scholarship program provides $2,000 scholarships to four technical colleges in Utah. This program was designed to encourage the employment of, and career opportunities for, students with excellent scholastic, technical, and team work skills in electrical, instrumentation, diesel/heavy equipment and lineman disciplines. Applicants are required to demonstrate a commitment to safety, be pursuing a maintenance career, and be willing to use their developing skills in a temporary work assignment at Kennecott. 2 Education Information Brief

3 Family Scholarship Program Kennecott implemented a program in 2008 that provides family scholarships to dependents of our employees. Scholarships are given annually to selected dependents to help fund their first year of post high school education at an accredited institution. Scholarship recipients may use these funds for general education requirements. Internship Program Our interns are bachelor or master degree-seeking students who temporarily work for the company usually for three months. During the internship the interns apply classroom learning to real world situations and practice their interpersonal and technical skills. Work Study Program This program is similar to the Internship program, however, work study students generally work longer than three months and they may earn college credit for work experience related to their major. University Graduate Program Kennecott and Rio Tinto business units around the globe are committed to the development of college graduates in our business. The Graduate Development Program has been created to provide graduates with a two-year development program that offers them a range of personal and professional development opportunities. Access to the program is open to anyone who has completed an undergraduate or graduate degree and has less than three years professional work experience this is usually their first full-time position since graduation. As part of the Graduate Development Program, graduates receive: Technical on-the-job training and development to ensure they have the skills needed to perform their jobs. Targeted learning and development activities that help graduates develop skills in such areas as problem solving, decision making and team leadership. Mentoring opportunities with an experienced Kennecott colleague who provides regular professional development advice, guidance and assistance with career planning, and help with resolving issues that may arise. 3 Education Information Brief

4 Networking and learning initiatives, including the Graduate Collaborative Forum, that foster knowledge sharing and helps graduates learn about business culture, structure, and strategy. Graduates work with their supervisors and mentors to ensure their development plans are mutually beneficial to both the company s strategic objectives and their individual goals. Our annual graduate recruitment efforts provide opportunities across a range of disciplines including metallurgical, mining, chemical, electrical, mechanical engineering, industrial hygiene, geology, finance, law and human resources. Education Speakers Bureau Telling the mining industry s story is part of our mission at Kennecott. We actively administer a minerals and mining education program designed to educate the public about our philosophy of balancing society s need for metals with an environmentally responsible approach to mining. Community and External Relations manages this program which takes place at local elementary, secondary, and higher-education schools. Corporate Giving In 2010, we demonstrated commitment to community involvement by donating $5.3 million to organizations focused on community and human development, public education and the environment. These contributions enhance and strengthen communities by promoting civic needs and job training, providing scholarships and literacy programs to underserved students, and enhancing awareness about biodiversity, climate change and environmental education. Examples of our community involvement include funding the Utah Museum of Nature History, Nature Conservancy Wetlands Education program, Utah Food Bank Kid s Café, Kennecott Nature Center, and Rio Tinto Stadium. Kennecott also donated $600,000 to Westminster College to help the newly built Meldrum Science Center earn LEED Platinum certification. Bingham Canyon Mine Visitor s Center As part of our effort to educate everyone on the mining industry, we invite the public to the Bingham Canyon Mine Visitor s Center. From the overlook, one can watch 240 and 320 ton capacity haulage trucks deliver copper ore to the in-pit crusher, where the material is reduced to the size of soccer balls before being loaded onto a five-mile conveyor that carries the ore to the Copperton Concentrator. Inside the enlarged Visitors Center, there are interactive displays and exhibits including 3-D microscopes to examine rock and mineral samples, and displays showing how copper is used in everyday life. There are also exhibits ranging from old mining artifacts and model trucks to modern-day operations and 4 Education Information Brief

5 environmental engineering as well as three-dimensional models that provide an educational and entertaining experience for people of all ages. All proceeds are donated to local charities and non-profit organizations. Since 1992 more than 2.8 million people have visited and more than $2.4 million has been donated to local charities and non-profit organizations. Internal Craftsman Development Program In order to support employees development throughout our operation, representatives from each Kennecott plant collaborated to develop a craftsman training program. The program established a core set of skills that employees can learn in a single training program that is used to train and advance employees in technical and skilled trades. Online training, combined with classroom labs and field experience enhance the learning process by giving the craftsman theory and hands-on opportunities. The program is flexible and can be tailored to meet the needs of participants and plants while emphasizing Rio Tinto and Kennecott health, safety and environmental standards. The program has standardized core classes that apply equally to all craftsman regardless of his or her current work assignment, giving each person the opportunity to move from one plant to another while ensuring a uniform set of core skills. Participants are also able to step outside of the core for further developmental opportunities (i.e. basic computer classes). Another advantage of the program is the inclusion of equipment training as part of the core curriculum, and more employees are able to be trained from all sites with less redundancy. Continuing Education Kennecott requires all employees to perform ongoing training that is delivered online and/or in a classroom setting. The online training is delivered in modules that provide each employee with knowledge about company policies and procedures. Additionally, there are modules that deliver content about leadership, effective communication and other management skills that prepare employees to become company leaders. While some learning modules can only be delivered in a classroom format, the online modules allow our employees the flexibility to schedule learning sessions that fit with their needs allowing for maximum productivity. 5 Education Information Brief

6 Lean Six Sigma Training In 2004, Kennecott implemented Lean Six Sigma training to complement our business improvement initiatives. Lean Six Sigma is a combination of Lean and Six Sigma. Lean training focuses on improving process flow and reducing resource consumption by eliminating wastes, while Six Sigma training emphasizes reducing variations in a process through the use of statistical analysis. Kennecott teaches several three-week Lean Six Sigma courses taught each year and the graduates of these courses receive a Green Belt upon completion of their first Lean Six Sigma project. After completing five projects, an employee earns their Black Belt. Employee projects range from how to improve the quality of our various products to improving the organizational decision making process. Kennecott has experienced profound results since implementing the program. Not only have we experienced increased operational excellence, we are also creating a culture of innovation that allows us to effectively exploit new opportunities and overcome our unique challenges. 6 Education Information Brief

7 Measuring our performance We set annual goals and track the progress of our education related scholarships and programs. Due to a continued commitment to supporting external and internal education, there was strong growth in the amount of people affected and the number of dollars contributed. Program Kennecott Premier Scholarships Work Study Scholarships Family Scholarships Internship Program University Graduate Program Lean Six Sigma Program* Amount 20 students 10 students Economic Contribution $117,000 $40,000 $20,000 Amount 20 students 10 students 11 students 26 students 6 graduates 4 graduates $170,000,000 value added Economic Contribution $234,000 $40,000 $20,000 $187,000,000 value added Each year Kennecott sets ambitious goals for the Education Speakers Bureau to ensure we are connecting and communicating effectively throughout the community th Grade Outreach 41 schools 50 schools High-Schools 1 school 7 Education Information Brief

8 Continued improvement Kennecott strives to continually improve the way we operate across all aspects of our business. This commitment to continuous improvement extends to how we approach our education related opportunities and challenges. One of our greatest challenges is finding job candidates who have the necessary skills and experience. This shortage is primarily due to a lack of students studying math, science and engineering. To build the candidate pipeline we continue to develop innovative programs, like our Education Speakers Bureau, that encourage future university students to consider science and engineering disciplines. Kennecott will continue to support community and employee education. Our support of universities enables us to learn of new technologies that improve the efficiencies of our processes, as well as the ability to acquire the most talented graduates. Our employee education programs ensure that our work force remains the best in the industry. Our website, publications and visitor s center provide the public with the most upto-date information about our business. 8 Education Information Brief

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