Check out this news release from Rio Tinto:
Management of Year 2000 Issue
LONDON--(BUSINESS WIRE)--July 2, 1998--Rio Tinto plc (NYSE:RTP - news) today announced that since 1996, the Rio Tinto Group has been pursuing a strategy to ensure that all significant computer systems and computer controlled plant and equipment across all Group sites will be Year 2000 compliant. The key objective is to ensure ''business as usual'' before, during and after December 31, 1999. The Group's strategy is focused on those systems and operating plant and equipment that are critical to the continuity of its business.
In June 1997, the Rio Tinto Group set out a programme to be used by Group companies in addressing their Year 2000 compliance. Coordination and monitoring of action continues to be maintained at Group level, but accountability for compliance lies with line management.
Key elements of the programme are to identify the extent of the Year 2000 issue, assess the exposures to each Group company and implement corrective action with a view to achieving the British Standards Institution's Year 2000 compliance standard for critical applications.
The Year 2000 programme comprises the following essential steps:
preparation of an inventory of computer systems, microprocessor controlled plant and equipment and PLC (programmable logic control) dependent operating equipment;
identifying from the inventory of systems and operating equipment, those that are essential to the safety and well- being of employees, protection of the environment and continuity of Group businesses;
testing Year 2000 compliance of critical systems and equipment, including simulated tests and written assurances from customers and suppliers;
taking corrective action, where necessary, to ensure Year 2000 compliance;
- testing the corrective action; and
- developing appropriate contingency plans, where necessary.
Group company compliance programmes include liaison with third party suppliers, customers and business partners to pursue Year 2000 compliance through the business chain. This includes companies in which the Group has a significant interest but which it does not control. Rio Tinto cannot take responsibility for the actions of third party suppliers, customers or business partners, however, it continues to encourage and monitor the development and implementation of their Year 2000 strategies. Where appropriate, Group companies will have contingency plans against any non-compliance outside the Rio Tinto Group.
The major Year 2000 exposures internal to Group sites and identified to date are process control systems and embedded PLCs which are found in operating plant and equipment and which may have the potential to impact on employee safety, the environment and production.
The Group is using audits conducted by major accounting firms to obtain independent monitoring of its Year 2000 programme.
The Group Chief Executive is kept informed of the compliance programmes of Group companies by regular information on progress and cost of Year 2000 compliance.
Rio Tinto believes that it is acting responsibly and taking appropriate timely steps to identify and correct any non-compliant systems or equipment well before December 31, 1999. To date, the Group has not identified any systems or equipment under its control that cannot be rectified before the Year 2000. However, because of the nature of the Year 2000 issue the Group cannot provide categorical assurances as to its Year 2000 compliance.
Until all of the Group's critical business systems and operating equipment have been identified and assessed for Year 2000 compliance, it is difficult to cost system changes accurately. However, based on Rio Tinto's experience to date, it is estimated that the Group's costs, which are being brought to account as and when costs are incurred, will not be financially material in any year.
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However, this date was 2 July. Now they have contracted with TAVA for I&A and we all know that embedded systems are bear to uncover.
Apparently, Rio Tinto doesn't believe TAVA is a scam. Now who do I believe, Fortune 50-500 customers or a couple of $h*thouse quasi analysts who are short the stock?
This market will be looking for earnings and the only sectors that seem to still be increasing them are the Y2K and internet sectors. And since the Y2K sector has been so thoroughly trashed, I believe this is where the value lies.
Regards,
Ron
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