Market position

Asia is the dominant market for Rio Tinto Coal Australia's products, with approximately 45 per cent of total sales made to Japan. Demand in the Pacific has continued to grow, driven by the growth of Asia.

In 2007 RTCA continued to work with customers to assist in the optimisation of their businesses and help them meet their environmental obligations. Projects included:

• We facilitated a partnership with one of our customers and a key technology provider to help reduce stack particulate emissions in our customer's power plant.
• Testing to optimise our coke blends continued both in Australia and overseas. The construction of an on site laboratory at Hail Creek Mine also progressed, with the project 80 per cent completed. Ensuring our customers receive optimised coke blends means they can produce coke of higher quality and strength, which produces steel more efficiently.

Many of Rio Tinto Coal Australia's customers who are parties to the Kyoto Protocol have been actively positioning themselves in order to meet their emissions targets in 2008-2012. Rio Tinto Coal Australia has been working with some of these customers to better understand the role it can play in helping them meet their targets. For example, we have worked to reduce the moisture levels found in our coal from Hunter Valley Operations. This has improved product quality and, in so doing, has contributed to a reduction in carbon dioxide emissions from our customers' power plants.

Working with customers is part of our approach to product stewardship.