5th Feb 2008 07:01
Rio Tinto PLC05 February 2008 Rio Tinto announces a coal resource of over 1 billion tonnes at Chapudi 5 February 2008 Rio Tinto has further strengthened its presence in South Africa with thediscovery of a open-pittable coal resource of 1.04 billion tonnes in the LimpopoProvince. The coal is bituminous, and is suitable for generating electricity. Where is the deposit The discovery at Chapudi came through Rio Tinto's coal exploration programme inthe Limpopo (Soutpansberg) coal basin of South Africa. The exploration work hasbeen conducted in conjunction with Rio Tinto's BEE partner, Kwezi Mining.Exploration rights over the resource are held by two JV companies; Chapudi CoalPTY Ltd (Rio Tinto 70%) and Kwezi Mining Exploration PTY Ltd (Rio Tinto 49%). Deposit Location Rio Tinto and Kwezi are continuing with exploration activities for thermal andcoking coal east of the Chapudi project. The chief executive of Rio Tinto Energy & Minerals, Preston Chiaro, said: " Thisis a significant find in an area that has previously been viewed as havinglittle geological potential. The project's potential to produce thermal coal forelectricity generation comes at a time when South Africa needs to rapidlyincrease its generating capacity. In addition, the basin offers the opportunityto produce a range of products, from thermal to hard coking coal for the exportmarkets. We are currently planning the next phase of the project by beginningour pre-feasibility studies." Chapudi Geology The newly discovered Chapudi Resource lies within the Limpopo coal basin, in thenorthern part of South Africa. The coal is hosted in sediments of the KarooGroup, similar to other coalfields in Southern Africa. The coal seams at Chapudioccur in mudstones that can be correlated to the Upper Ecca formations of theMain Karoo basin. Rio Tinto and Kwezi Mining began exploring for coal in the area in 2003, whenthe 1st borehole was drilled on the farm Chapudi. This borehole intersectedsignificant thicknesses of coal. Since then, the Rio Tinto-Kwezi JV has drilledabout 90 boreholes in the project area, and conducted geophysical surveys to aidthe geological interpretation. A total of 12,400 metres have been drilled todate. The central part of the project now has sufficient drilling coverage to define ameasured and indicated resource. The rest of the project area has been drilledto inferred resource status. In-situ Resource (SAMREC/JORC) The resource at Chapudi has been generated to comply with both SAMREC and JORCcode guidelines. The tabulated figures below include the Seam 6 in-situresource, as confined by Rio Tinto's granted tenure. Resource Category Western Central Eastern Total Chapudi Zone (Mt) Zone (Mt) Zone (Mt) (Mt) Measured 90 90Indicated 220 220Inferred 410 320 730All Categories 410 310 320 1,040 Note: Blank cells mean no resource in this category in the relevant zone as theentire resource in the zone is in different category(ies). Preliminary studies indicate that up to 40 per cent of the coal may berecoverable for utilisation in a power station. Significant potential for further resources exists in the area. Some of thepotential occurs on ground that already belongs to the JV (and can beincorporated into the Chapudi resource by further drilling), whilst otherpotential is on ground currently under lease application. Future Direction The coal has been demonstrated through test work to be suitable for combustionto generate electricity. Rio Tinto and Kwezi Mining are currently investigating the feasibility andeconomics of establishing a mining operation to feed coal into a power station.They are currently engaging with Eskom, and a number of Independent powerproviders to this effect. CP statement The information in this report that relates to Mineral Resources is based oninformation compiled by Steen Kristensen, who is a member of the AustralianInstitute of Mining and Metallurgy. Steen is a full-time employee of Rio TintoEnergy and has experience which is relevant to the style of mineralisation andtype of deposits under consideration and to the activity which they haveundertaken to qualify as a Competent Persons as defined in the 2004 Edition ofthe 'Australasian Code for Reporting of Exploration Results, Minerals Resourcesand Ore Reserves'. Steen Kristensen consents to the inclusion in the report ofthe matters based on his information in the form and context in which itappears. About Rio Tinto Rio Tinto is a leading international mining group headquartered in the UK,combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, whichis listed on the Australian Securities Exchange. Rio Tinto's business is finding, mining, and processing mineral resources. Majorproducts are aluminium, copper, diamonds, energy (coal and uranium), gold,industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.Activities span the world but are strongly represented in Australia and NorthAmerica with significant businesses in South America, Asia, Europe and southernAfrica. 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 ofactual production during any period, levels of demand and market prices, theability to produce and transport products profitably, the impact of foreigncurrency exchange rates on market prices and operating costs, operationalproblems, political uncertainty and economic conditions in relevant areas of theworld, the actions of competitors, activities by governmental authorities suchas changes in taxation or regulation and such other risk factors identified inRio Tinto's most recent Annual Report on Form 20-F filed with the United StatesSecurities and Exchange Commission (the "SEC") or Form 6-Ks furnished to theSEC. Forward-looking statements should, therefore, be construed in light of suchrisk factors and undue reliance should not be placed on forward-lookingstatements. These forward-looking statements speak only as of the date of thisannouncement. Rio Tinto expressly disclaims any obligation or undertaking(except as required by applicable law, the City Code on Takeovers and Mergers(the "Takeover Code"), the UK Listing Rules, the Disclosure and TransparencyRules of the Financial Services Authority and the Listing Rules of theAustralian Securities Exchange) to release publicly any updates or revisions toany forward-looking statement contained herein to reflect any change in Rio Tinto'sexpectations with regard thereto or any change in events, conditions orcircumstances 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. Subject to the requirements of the Takeover Code, none of Rio Tinto, any of itsofficers or any person named in this announcement with their consent or anyperson involved in the preparation of this announcement makes any representationor warranty (either express or implied) or gives any assurance that the impliedvalues, anticipated results, performance or achievements expressed or implied inforward-looking statements contained in this announcement will be achieved. For further information, please contact: Media Relations, London Media Relations, AustraliaChristina Mills Ian HeadOffice: +44 (0) 20 7781 1154 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 408 360 101 Nick Cobban Amanda BuckleyOffice: +44 (0) 20 7781 1138 Office: +61 (0) 3 9283 3627Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 419 801 349 Media Relations, USNancy Ives Mobile: +1 619 540 3751 Investor Relations, London Investor Relations, AustraliaNigel Jones Dave SkinnerOffice: +44 (0) 20 7781 2049 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 David Ovington Simon EllinorOffice: +44 (0) 20 7781 2051 Office:+ 61 (0) 7 3867 1068Mobile: +44 (0) 7920 010 978 Investor Relations, North AmericaJason CombesOffice: +1 (0) 801 685 4535Mobile: +1 (0) 801 558 2645 Email: [email protected] Website: www.riotinto.comHigh resolution photographs available at: www.newscast.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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