17th Dec 2007 11:25
Rio Tinto PLC17 December 2007 Rio Tinto to enter nickel market with US$300 million Eagle Mine commitment 17 December 2007 Rio Tinto is to invest US$300 million in the development of Eagle, a high-gradenickel and copper mine in Michigan, USA. Eagle will be the only primary nickelmine in the US and first production is expected to begin in late 2009. Eagle isprojected to deliver 16,000 tonnes of nickel per year over seven years until2016. It will also produce valuable co-products of copper, platinum, palladiumand cobalt. Rio Tinto is also in final contract negotiation to develop a nickel mine atSulawesi in Indonesia, with an initial operation of 46,000 tonnes per year withfirst production commencing by 2015. There is additional potential at Sulawesiof a similar size. Rio Tinto Copper Group Chief Executive, Bret Clayton said, "Eagle gives RioTinto a valuable opportunity to enter the market for nickel, a key input intostainless steel, demand for which is rising strongly led by the development ofnew infrastructure in developing economies, as well as rising demand forconsumer products and the development of associated processing plant andequipment. "Eagle is just one of many projects that will add to Rio Tinto's growth andvalue. It is a 4.1 million tonne1 high-grade nickel resource (3.6% nickel, 2.9%copper) in a highly prospective region for additional nickel discoveries. Ourexploration team discovered Eagle in 2002 and we are now reviewing over 450,000acres of mineral title we have in the area. Our focus is on six further adjacentprospects that may have the potential to extend significantly the mine life atcurrent planned production rates." A two-year project construction phase will get underway in 2008, upon receipt ofadditional approvals expected in 2008. Three required permits were granted on14 December 2007. Eagle's mine permit is the first issued by the State ofMichigan under the state's 2004 nonferrous metallic mining law, considered amongthe most stringent in the US. The project is located in northwest MarquetteCounty near the City of Marquette. 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. 1 Please refer to previously announced resources in the Rio Tinto 2006 Annualreport and financial statements 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. 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, Australia Christina Mills Amanda Buckley Office: +44 (0) 20 7781 1154 Office: +61 (0) 3 9283 3627Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 419 801 349 Nick Cobban Alison Smith Office: +44 (0) 20 7781 1138 Office: +61 (0) 7 3361 4223 Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 438 787 038 Media Relations, US Nancy Ives Mobile: +1 619 540 3751Investor Relations, London Investor Relations, Australia Nigel Jones Dave Skinner Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628 Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 Investor Relations, North America David Ovington Jason Combes Office: +44 (0) 20 7753 2326 Office: +1 (0) 801 685 4535 Mobile: +44 (0) 7920 010 978 Mobile: +1 (0) 801 558 2645 Email: [email protected] Website: www.riotinto.com High 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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