CDF Voice｜Jakob Stausholm, CEO of Rio Tinto Group: Working together to make development dividends shared by all

The “CDF Voice” column aims to bring together business leaders and convey the voices of the forum delegates.

Since its launch in 2000, CDF have upheld its mandate of “Engaging with the world for common prosperity”.

At present, the economic recovery is still fragile, and the impact of the COVID-19 and geopolitical crisis is continuing. Although China’s economic recovery is improving, lackluster demand, slow recovery in labor market and global supply chain adjustments and other pressures are still present.

The world is experiencing unprecedented change, how do foreign enterprises in China view China's development? How can foreign enterprises grasp the opportunities and challenges in the Chinese market? What insights do they have about China's future economic recovery and social development?

As the 2023 annual meeting of the China Development Forum is about to be held, the "CDF Voice" column invites representatives of global enterprises to discuss the above topics.

The guest of CDF Voice today is Jakob Stausholm, CEO of Rio Tinto Group.

Hello and Ni Hao! I would like to extend my very warm greetings to everyone attending the 2023 China Development Forum.

When we talk about China's modernisation, a key word for me is SHARING. China has shared its development opportunities with the world in the past decades, and we believe it will continue to do so in its journey to modernisation.

Ever since China’s reform and opening up, it has achieved one of the greatest modernisations in history, in the process lifting hundreds of millions of people out of poverty. Multinational companies, like ours, have shared in China’s rapid development, both benefitting greatly and contributing to it.

Our shared history runs back 50 years, when Rio Tinto was the first foreign company to export iron ore to China. We have supplied more than 3.5 billion tonnes of iron ore and other essential materials – enough for the steel needed for more than 20,000 Bird’s Nest stadiums - supporting China’s modernisation. In doing so, China has become Rio Tinto’s largest market, contributing over half our annual global sales revenue.

Whenever I visit China and see the skyscrapers, the high-speed rail, and the modern infrastructure that has helped improve the lives of 1.4 billion people, it makes me proud to think much of this contains steel and couple of other essential materials supplied by Rio Tinto.

We have shared successes through joint venture partnerships for nearly forty years. From the Channar joint venture in Western Australia in 1987, when we became the partner for China’s first, and largest ever at the time, foreign investment in a mining project. And our landmark Bao-HI Ranges iron ore joint venture with Baowu, has been successfully operating for over 20 years. To our new joint venture with China Baowu, to invest $2 billion to develop the Western Range iron ore project in Western Australia. And our partnership with leading Chinese companies, including China Baowu and Chinalco to develop the Simandou iron ore mine in Guinea. This has the potential to be the world’s next great iron ore province, exporting product of the highest quality for green steelmaking.

As we look ahead, I am excited about China’s new journey to modernisation and the shared opportunities this presents.

Rio Tinto is committed to continuing our mutually beneficial cooperation well into the future, providing the materials that China needs for its green transition and working with partners in China to decarbonise the whole value chain. We have a shared commitment to addressing climate change. Rio Tinto has put decarbonisation at the heart of our strategy, targeting a 50 per cent reduction to our Scope 1 and 2 emissions by 2030.

We know that we can’t achieve this alone, and must also work closely with our customers, partners and others, including the likes of Baowu, Shougang Group, as well as Tsinghua University, to drive innovation and help reduce emissions throughout the value chain. Our China Innovation and Technology centre, established in Beijing in March last year, brings us closer to China’s world leaders in green technology and renewable power.

Finally, China’s aim of achieving common prosperity through modernisation is an ambition we support and share.

Rio Tinto strives to leave a lasting, positive legacy wherever we work and for those we work with. We are working with the China Development Research Foundation to support the revitalisation of rural areas in the Bijie Region. Rio Tinto is working closely with the Foundation to improve the education standards of children in rural areas, while exploring new models for protecting and restoring local ecology, cultural heritage and social prosperity.

As an ancient Chinese saying goes, "With one heart and one mind, we can accomplish everything we aspire for.” I believe, by working together and sharing our respective strengths, we can make even greater progress and build a better future in which the benefits of development can be shared by all.

That is why events like the China Development Forum are so important and I’m delighted to be here. I hope this year’s China Development Forum can bring the government, business community, and academia together to share ideas and best practices, address the challenges we all face in the post-pandemic world, and strengthen our sense of shared purpose.