26th Nov 2007 07:01
Rio Tinto PLC26 November 2007 Date: 26 November 2007 Ref: PR580g Rio Tinto invests US$2.4 billion in two new iron ore mines in the Pilbara Rio Tinto has announced a further significant investment in its iron ore exportcapacity in the Pilbara region of Western Australia, with the approval of thenew Mesa A/Warramboo mine in the Robe Valley and Brockman 4 mine near Tom Price. The combined investment of US$2.42 billion (nominal terms, 100 per cent basis)in the two mines will ensure that Rio Tinto's leadership of the Pilbara matchesits unparalleled global position in the iron ore industry. The mines will beginproduction in 2010. Sam Walsh, Chief Executive Rio Tinto Iron Ore, said the new mines were integralto the Pilbara production platform underpinning Rio Tinto's rapid expansion ofits global network of assets. "Mesa A/Warramboo and Brockman 4 demonstrate our strategy of substantialinvestment in high-quality, long-life, low-cost assets. They are outstandingdeposits, close to existing infrastructure, and each promises excellentcommercial returns," he said. "Brockman 4 will bring on a new, high-volume long-life source of Brockman ore, akey component of the Pilbara Blend product successfully introduced to the marketin July this year. Likewise, our Robe Valley pisolite product has consistentlyproved to be competitively attractive for our customers." Mesa A/Warramboo The Mesa A/Warramboo mine, about 50 kilometres from Pannawonica, will have aninitial production of 20 Mtpa, increasing to 25Mtpa by 2011. The mine will sustain production of Robe Valley pisolite ore at 32Mtpa over thenext decade. Current production from the Mesa J deposit, now nearing the end ofits mine life, will reduce to 7Mtpa with Mesa A providing the balance. A49-kilometre rail extension will connect the new mine to the Rio Tinto railnetwork. The project capital cost is estimated at US$901 million (Rio Tinto share US$478million). Total high-grade reserves across the Mesa A / Warramboo deposits are estimatedat 249Mt, with a total mine life of 11 years. Brockman 4 The first phase of the Brockman 4 development, about 60 kilometres northwest ofTom Price, will have an annual output of 22 Mtpa with a potential for furtherexpansion. Brockman 4 is well positioned to serve as a hub for the futuredevelopment of nearby deposits. The project has an estimated total capital costof US$1,521 million. Design considerations allowing for an increase in output by14Mtpa, to 36Mtpa, are included in the Phase I scope, which will facilitate acost effective ramp up as additional port capacity is brought on line. Phase I will take two years to construct and commission with production ramp-upplanned to begin in early 2010, and full capacity to be reached by 2012. Themine will be connected to the Pilbara Iron Rail network by a 35 kilometre railspur to the Brockman 2/Nammuldi operations. The Brockman 4 orebody contains 573Mt of high-grade reserves (> 60 percentiron). A further 597 Mt of blending and lower-grade (50-60 percent Fe) resourcewill be stockpiled for future processing. Both expansions are subject to Government approvals. For further information, please contact: Media Relations, London Media Relations, Australia Christina Mills Ian HeadOffice: +44 (0) 20 8080 1306 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 408 360 101 Nick Cobban Amanda BuckleyOffice: +44 (0) 20 8080 1305 Office: +61 (0) 3 9283 3627Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 419 801 349 Media Relations, US Media Relations, Canada Nancy Ives Bryan TuckerMobile: +1 619 540 3751 Office: +1 514 848 8511 Investor Relations, London Investor Relations, Australia Nigel Jones Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 Investor Relations, North AmericaDavid OvingtonOffice: +44 (0) 20 7753 2326 Jason CombesMobile: +44 (0) 7920 010 978 Office: +1 (0) 801 685 4535 Mobile: +1 (0) 801 558 2645 Email: [email protected] Website: www.riotinto.com High resolution photographs available at: www.newscast.co.uk Forward looking statements This announcement includes "forward-looking statements" within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended. All statements other thanstatements of historical facts included in this announcement, including, withoutlimitation, those regarding Rio Tinto's financial position, business strategy,plans and objectives of management for future operations (including developmentplans and objectives relating to Rio Tinto's products, production forecasts andreserve and resource positions), are forward-looking statements. Suchforward-looking statements involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance or achievements ofRio Tinto, or industry results, to be materially different from any futureresults, performance or achievements expressed or implied by suchforward-looking statements. Such forward-looking statements are based on numerous assumptions regarding RioTinto's present and future business strategies and the environment in which RioTinto will operate in the future. Among the important factors that could causeRio Tinto's actual results, performance or achievements to differ materiallyfrom those in the forward-looking statements include, among others, levels ofdemand and market prices, the ability to produce and transport productsprofitably, the impact of foreign currency exchange rates on market prices andoperating costs, operational problems, political uncertainty and economicconditions in relevant areas of the world, the actions of competitors,activities by governmental authorities such as changes in taxation or regulationand such other risk factors identified in Rio Tinto's most recent Annual Reporton Form 20-F filed with the United States Securities and Exchange Commission(the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statementsshould, therefore, be construed in light of such risk factors and undue relianceshould not be placed on forward-looking statements. These forward-lookingstatements speak only as of the date of this announcement. Rio Tinto expresslydisclaims any obligation or undertaking (except as required by applicable law,the City Code on Takeovers and Mergers (the "Takeover Code"), the UK ListingRules, the Disclosure and Transparency Rules of the Financial Services Authorityand the Listing Rules of the Australian Securities Exchange) to release publiclyany updates or revisions to any forward-looking statement contained herein toreflect any change in Rio Tinto's expectations with regard thereto or any changein events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be interpreted to mean that future earningsper share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceedits historical published earnings per share. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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