Market position

We expect markets will continue to strengthen in 2010, with thermal coal and coking coal demand remaining buoyant.

The overall demand for thermal coal in the Asian region improved during 2009 following a generally weak economic first half of the year in the more traditional markets for Australian coal. China's demand for imported coal was particularly strong and this supported improved prices by year end. The prices however are lower than the records achieved in 2008. Global steel demand was also weak in the first half of 2009 for most markets other than China, but has improved in the second half of the year and has led to strong demand for hard coking and semi soft coking coal.

An historic long term port access agreement was reached for the Port of Newcastle, that we believe will help resolve capacity constraints of the past. The long term framework struck in 2009 for capacity access at the Port of Newcastle is a major breakthrough, as it provides certainty to underpin port expansion; and certainty for coal producers to plan ahead.

We work with customers to help them meet their business needs and environmental obligations. During 2009 we worked closely with one of our customers to reduce stack particulate emissions in their power plant. This work will continue in 2010.

During 2009 work began to ensure compliance with new global regulatory initiatives for the classification and labelling of products - the United Nations Globally Harmonised System of Classification and Labelling of Chemicals (GHS) and the European Union Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH).

In accordance with the REACH process, Rio Tinto has evaluated its products marketed into EU countries, identified where compliance is required and pre-registered those products. Minerals, ores and concentrates are exempt from registration, including coal.

Work to comply with requirements under the GHS process involves reviewing our existing Material Safety Data Sheets which provide information on the health, safety and environmental effects of an incoming and outgoing material, precautions and safe handling practices and other relevant disclosures.

Read about our product stewardship strategy by selecting from the right hand navigation menu.