Thank you very much, Mr. Chair and honourable members.
I'm proud to be here today representing Rio Tinto. While we are considered a leading mining company, we also continue to learn from our experience and that of others.
Rio Tinto is one of the largest integrated mining companies in the world, with approximately 66,000 employees. We are a world leader, operating in 40 countries, with significant investments in Canada. In fact, Canada is Rio Tinto's second largest asset base after Australia.
In Canada we have a diverse commodity mix—aluminum, copper, diamonds, potash, uranium, and iron ore—as well as other exploration activities across the country. We also own significant infrastructure assets, including rail, ports, and hydro power generating facilities in Quebec and British Columbia. As a world leader, we own state-of-the-art technology and are continuously seeking innovations to improve productivity and environmental performance as a means to reduce operating costs and also to secure our social licence to operate.
Our strategy is to maximize total shareholder return by investing in and operating large, long-life, low-cost expendable operations that can sustain strong returns throughout the cycle. In delivering our strategy, we recognize the value of building strong relations with communities, governments, and key stakeholders and of seeking mutual benefits through our approach to sustainable development and our focus on safety.
I'm proud to work for a company like Rio Tinto, which is considered a leader in sustainable development. We recognize the value of sustainable practices, and this is integral to the way we work. A key component to being a leader in sustainable development is our commitment to the communities where we operate. We strive to benefit local communities. This may mean providing social benefits, such as health, education, and environmental management programs, or economic benefits, such as business development and employment training.
Community engagement is based on employment and economic participation, and we prefer sustainable long-term benefits. In May 2012 there was a summary report put out by Canada's Public Policy Forum, which was attended by Jacynthe Côté, the chief executive of Rio Tinto Alcan. It was noted that a central theme of the discussion concerned the need for better education and skills training among aboriginal peoples, especially amongst the youth.
A clear and well-defined challenge is facing the resources sector in the coming decade. This relates to the looming labour shortages, with estimates of the need for up to 400,000 new jobs over the next 10 years. Over the same period, approximately the same number of aboriginal Canadians are expected to enter the labour force. Considering that many of these jobs will be created on the doorsteps of aboriginal communities, there is an opportunity on both sides for significant gains in the form of jobs for skilled workers.
We can improve the employment and business opportunities of members of our host community. Contributing to local economies where we operate is a priority for Rio Tinto. As an industry whose very existence depends on retaining that crucial social licence to operate, it is clearly in our collective best interest to shoulder our share of corporate social responsibility. Support for job training and talent development is a win-win part of the equation.
Rio Tinto emphasizes diversity in the workforce and is committed to providing employment and career development opportunities to indigenous people in areas where we operate. And we have successes.
In 2012 around 7% of our Australian employees were indigenous Australians. Rio Tinto now ranks as the largest private sector employer of indigenous Australians. These mutually beneficial arrangements not only contribute to local economic growth and community well-being but also provide a stable talent pool for our operations.
In Canada we are seeking opportunities to increase our aboriginal employment across all our businesses. This will build on the success at Diavik, with approximately 25% aboriginal employment.
We also recognize that some of the greatest successes result from partnerships involving governments, communities, and the private sector in which each party bears responsibility and works together towards common objectives.
In summary, then, mining is a complex business requiring long-term investment. Mining often takes place in more remote regions, where our nearest neighbours are often first nations or Métis communities. This makes the sector a natural fit for engaging and working with first nations in partnership with these communities and government agencies. Discipline is required in managing capital, and we need to continuously seek ways to improve performance. At the same time, we must operate in an ethical and socially responsible manner that is underpinned by seeking ways to promote and demonstrate our commitment to sustainable development.
Thank you, Mr. Chair, honourable members. As another witness here said, I look forward to responding to your questions.