27th Jan 2006 09:13
Rio Tinto PLC27 January 2006 Norilsk Nickel and Rio Tinto announce exploration and development joint venturein Russia Norilsk Nickel, Russia's largest mining and metallurgical company, and RioTinto, one of the world's largest international mining companies, todayannounced the launch of an exploration and development joint venture in Russia. The companies signed a co-operation protocol in the Ministry of NaturalResources. The agreement establishing the formal terms governing the jointventure was signed today. The agreement entails the establishment of a jointventure exploration and development company, owned 51 per cent by Norilsk Nickeland 49 per cent by Rio Tinto. Initial exploration efforts will concentrate onopportunities in the Siberian and far-eastern federal districts of Russia. Rio Tinto chief executive, Leigh Clifford, said: "Rio Tinto has increased itsexploration and development activity in Russia over the last few years, and weare now delighted to enter into this agreement with a partner of the stature ofNorilsk Nickel. The establishment of this joint venture breaks new ground forthe mining industry. Combining the skills and resources of Norilsk Nickel andRio Tinto will provide an unrivalled platform for exploration and development ofmineral deposits in Russia. "We are pleased that by expanding our long term commitment towards explorationin Russia, Rio Tinto will play a significant role in developing the country'sresource base." Norilsk Nickel chief executive, Mikhail Prokhorov, said: "Norilsk Nickelcontinues to focus on growing and diversifying its resource base and on gainingexposure to international best practices. Entering into this agreement with RioTinto will bring together the knowledge and expertise of two leading miningcompanies to promote exploration in Russia. This country's mineral wealthremains untapped in many areas across many minerals, and we will pursue thedevelopment of new discoveries and known deposits with the potential forsignificant capital investment and attractive financial returns. "The aim of the joint venture will be to create a viable economic model ofcooperation to accelerate and enhance exploration for new mineral resources inRussia, thereby promoting the mineral wealth and economic development of theregions." Background notes to editors Norilsk Nickel MMC Norilsk Nickel is the world's largest producer of nickel and palladium, anda major producer of platinum, copper and cobalt. Following a number ofacquisitions in Russia, Norilsk Nickel is also one of the largest gold producersin the world and the largest in Russia. MMC Norilsk Nickel is listed on severalRussian exchanges (MICEX, RTS, GMKN), ADRs are traded over the counter in NewYork (NILSY US), London (MNOD LI) and Berlin (NNIA GR). Rio Tinto Rio Tinto is one of the world's leading mining groups, with a marketcapitalisation of about US$70 billion. Major products include aluminium, copper,diamonds, energy products, gold, industrial minerals (borates, titanium dioxide,salt and talc) and iron ore. It is listed on both the London and Australianstock exchanges and has an ADR listing on the New York Stock Exchange. The Russian mining industry Aluminium Russia produces 12 per cent of world output and is the world's largest exporterof primary material. Gold Russia produced 182 tonnes of gold in 2004, or seven per cent of world mineoutput. Diamonds The volume of rough diamond production in Russia is 25 million carats, 16 percent of the world total of 155 million carats. Copper Russia produced 900,000 tonnes of refined copper in 2004. Nickel/ Platinum Group Metals Russian nickel production was 270,000 tonnes in 2004, more than 20 per cent ofglobal output, all from local raw materials. Platinum output was 850,000 ounces,13 per cent of global output, and palladium, half of world supply. Coal Russia is the world's sixth largest producer of coal. In 2004, Russia produced61 million tonnes of coking coal and 148 million tonnes of steam coal. Iron Ore Annual production is 97 million tonnes. Russia is a net exporter of iron ore (20million tonnes) and pellets (10 million tonnes). Uranium Russia is one of the world's major producers of uranium and has a substantialnuclear power programme. Potash In 2004, Russia was the second largest producer of potash after Canada,producing about 9.3 million tonnes of potash or 20 per cent of world production. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsMaria Darby Walker Ian HeadMobile: +44 (0) 7725 036 544 Office: +61 (0) 3 9283 3620 Mobile: +61 (0) 408 360 101 Hugh LeggattOffice: +44 (0) 20 7753 2273Mobile: +44 (0) 7764 369 977 Investor Relations Investor RelationsNigel 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.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rio TintoMNOD.L