26th Nov 2007 07:01
Rio Tinto PLC26 November 2007 Date: 26 November 2007Ref: PR581g Rio Tinto approves Diavik underground mining Rio Tinto has approved investment in the underground mining phase of the DiavikDiamond Mine. The approval is for additional funding of US$563 million bringingthe total investment to date in the underground mine to US$787 million. Theinvestment will be funded by the two Diavik joint venture partners, Rio Tinto at60 per cent and Harry Winston Diamond Corporation (formerly Aber DiamondCorporation) at 40 per cent. Under the current life of mine plan, diamond production from underground wouldbegin in 2009 and continue beyond 2020. Open pit mining is expected to cease in2012, at which time Diavik would become an all underground mine. Diavik's totalmine life remains within the 16 to 22 years projected in the originalfeasibility study of 1999. To support underground mining, Diavik must construct new surface works includinga crusher and paste backfill plant, expand its water treatment and powergenerating plants, and construct ancillary facilities including fuel and cementstorage, and additional accommodation facilities. Approximately 20 kilometres ofunderground development works will also be established to bring undergroundmining into production. The capital investment of US$563 million will be spentover the next two years, adding to the US$224 million invested in 2006-07 forthe underground feasibility studies and related capital projects. This significant new investment in underground mining will provide training,employment, and business opportunities in addition to those significant benefitsthat Diavik already provides. Diavik remains firmly committed to continuing itswork with local communities and governments to meet its socio-economic and itsenvironmental commitments. The Diavik Diamond Mine, located 300 km. northeast of Yellowknife, NorthwestTerritories, is an unincorporated joint venture between DDMI (60 per cent) andAber Diamond Mines Ltd. (40 per cent). Both companies are headquartered inYellowknife, Canada. DDMI is a wholly owned subsidiary of Rio Tinto plc ofLondon, England, and Aber Diamond Mines Ltd. is wholly owned by Harry WinstonDiamond Corporation of Toronto, Canada. DDMI is the operator of the project. 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, AustraliaNigel 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 David Ovington Investor Relations, North America Office: +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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