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Expansion of Hope Downs

2nd Aug 2007 07:02

Rio Tinto PLC02 August 2007 Green light for US$350 million Hope Downs mine expansion Rio Tinto and its joint venture partner Hancock Prospecting Pty Limited willspend US$350 million on a fast-tracked expansion of the new Hope Downs iron oreproject in the Pilbara region of Western Australia. At the completion of theexpansion, expected by early 2009, the mine will have a capacity of 30 milliontonnes per annum. Work on the initial 22 million tonnes per annum project commenced in April 2006at a cost of US$1 billion with first production expected by early 2008. Rio Tinto Iron Ore chief executive Sam Walsh said: "The rapid expansion of HopeDowns is an integral part of our plans to lift annual iron ore production in thePilbara to 220 million tonnes by early 2009. "Thanks to continued strong market conditions we have been able to bring thishighly value accretive expansion forward by one year. We are currentlyinvestigating other opportunities to increase our Australian iron ore businessto about 320 million tonnes in the future." Hancock Prospecting chairman Mrs Gina Rinehart said, "We are delighted tojointly announce and be part of the bringing forward of stage 2 of the HopeDowns development at Hope South. We are working hard to bring other highpotential iron ore projects to the market." Hope Downs is a high-grade Marra Mamba iron ore deposit. It will contribute tothe Pilbara Blend, the new product that was first shipped in July and comprisesBrockman and Marra Mamba ore extracted from nine of Rio Tinto Iron Ore's 11mines in the Pilbara. Note to Editors • In July 2005, Rio Tinto reached agreement with Hancock Prospecting Pty Limited to purchase a 50 per cent interest in the iron ore assets of Hope Downs Iron Ore Pty Limited. • The Hope Downs project, a 50:50 unincorporated joint venture between Rio Tinto and Hancock Prospecting, was ratified in April 2006 to develop the Hope Downs iron ore assets. • The Hope Downs joint venture assets include the Hope Downs 1, 2 and 3 and Hope Downs 4, 5 and 6 (formerly East Angelas 1, 2 and 3) deposits. • Rio Tinto will manage the development and operation of the project assets subject to a joint Rio Tinto Iron Ore and Hancock Prospecting Pty Ltd Management Committee. • The project will use Pilbara Iron managed port, rail and power infrastructure. • The expansion will include the installation of primary and secondary crushing facilities adjacent to the Hope Downs 1 south orebody and an additional railway siding. It will also include new overland conveyors, train load-out, mining fleet and rolling stock. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsChristina 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 Gervase GreeneOffice: +44 (0) 20 8080 1305 Office: +61 (0) 8 9327 2975Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 408 098 572 Investor Relations Investor Relations 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 David Ovington Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792 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 Exchange

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