12th Feb 2008 12:47
Rio Tinto PLC12 February 2008 Rio Tinto reaches agreement to sell interest in Greens Creek mine for US$750million 12 February 2008 Rio Tinto has reached agreement on the first sale under its planned programme todivest at least US$15 billion of assets. The Group has signed an agreement tosell Kennecott Greens Creek Mining Company and Kennecott Juneau Mining Company,the subsidiaries holding its interests in the Greens Creek Mine in Alaska, to anaffiliate of Hecla Mining Company. Greens Creek is a silver, gold, zinc and lead underground mine and concentratorfacility on Admiralty Island near Juneau. It is currently a joint venturebetween a Rio Tinto Kennecott subsidiary (70.3 per cent) and a Hecla subsidiary(29.7 per cent). The sale price is US$750 million. The price comprises a cash component of US$700million and the balance in Hecla common stock. Closing is subject to customaryconditions, including expiration of the waiting period under theHart-Scott-Rodino Act. "The sale of our interests in the Greens Creek Mine is a very positive firststep towards our target of realising asset sales of US$10 billion in 2008," saidGuy Elliott, chief financial officer of Rio Tinto. Bret Clayton, Rio Tinto's Copper product group chief executive said, "HeclaMining has for a long time been our joint venture partner and already has asolid understanding of the mine, the employees, the community and the State.Hecla is well placed to assume operation of the mine." In November 2007, Rio Tinto announced the results of its overall strategicreview of the company's asset portfolio following its acquisition of Alcan.Options are also being explored to divest Rio Tinto Energy America (coal), RioTinto Minerals' talc business, Rio Tinto Alcan Packaging, Rio Tinto AlcanEngineered Products, Rio Tinto's interest in the Cortez gold mine in Nevada, RioTinto's Northparkes copper mine in Australia and Rio Tinto's Sweetwater (USA)and Kintyre (Australia) uranium assets. About Rio Tinto Rio Tinto is a leading international mining group headquartered in the UK,combining Rio Tinto plc, a London and NYSE listed company, and Rio TintoLimited, which is 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. About Hecla Mining Company Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processesand explores for silver and gold in the United States, Venezuela, and Mexico. A117-year-old company, Hecla has long been well-known in the mining and worldfinancial markets as a quality producer of silver and gold. Hecla's common andpreferred shares are traded on the New York Stock Exchange under the symbols HL,HL-PrB, and HL-PrC. 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 SEC or Form6-Ks furnished to the SEC. Forward-looking statements should, therefore, beconstrued in light of such risk factors and undue reliance should not be placedon forward-looking statements. These forward-looking statements speak only as ofthe date of this announcement. Rio Tinto expressly disclaims any obligation orundertaking (except as required by applicable law, the City Code on Takeoversand Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure andTransparency Rules of the Financial Services Authority and the Listing Rules ofthe Australian Securities Exchange) to release publicly any updates or revisionsto any forward-looking statement contained herein to reflect any change in RioTinto's expectations 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 IvesMobile: +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 978Investor Relations, North America Jason CombesOffice: +1 (0) 801 685 4535Mobile: +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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