21st Dec 2007 11:16
Rio Tinto PLC21 December 2007 Rio Tinto approves feasibility study for new Hope Downs mine 21 December 2007 The Hope Downs Joint Venture (managed by Rio Tinto) has approved a feasibilitystudy to expand the Hope Downs 4 project as part of the Rio Tinto programme toreach a Pilbara annual capacity of 320 million tonnes of iron ore by 2012. The study, which will cost an estimated US$71 million, will assess the depositas an extension of the existing Hope Downs Joint Venture (50:50 owned by RioTinto and Hope Downs Iron Ore Pty Ltd.). The study will incorporate the recentlycompleted 50,000 metre in-fill drilling programme at Hope Downs 4. Rio Tinto Iron Ore chief executive Sam Walsh said: "The Hope Downs 4 depositoffers excellent potential as part of our extension into the east Pilbararegion, especially as we ramp up towards 320 Mtpa capacity over the next fiveyears. "This potential highlights the degree of flexibility that Rio Tinto enjoys tocapitalise on existing infrastructure through the development of new world-classmines. This is an advantage that we emphasised in our annual investorpresentation on 26 November." Hope Downs Iron Ore Pty Ltd chairman Mrs Gina Rinehart said: "Following on fromour initial pre-feasibility studies, we hope the expanded study willsuccessfully support our vision for the area, which includes more mines beingdeveloped adjacent to Hope Downs 4, and the extension of the Lang HancockRailway to them." The Hope Downs 4 deposit is located 35 kilometres northwest of the town ofNewman and 45 kilometres east of the Hope Downs 1 mine. This mine beganproduction in November 2007 and is expected to reach 30 Mtpa capacity in early2009. The proximity of Hope Downs 4 to other deposits fully or part-owned by Rio Tintopromises significant potential synergies and option value for Rio Tinto IronOre. The Hope Downs 4 deposit consists of three main areas of mineralization ofapproximately equal size extending over a length of eight kilometres. Thedeposit has been re-estimated after completion of an 18,000-metre in-filldrilling programme in 2006. The contained high grade Resource ( >=60% Fe) ismade up of 98.6Mt @ 62.3% Fe of Indicated Mineral Resource and 206.1Mt @ 62.4% Fe of Inferred Mineral Resource. A range of government and environmental approvals would be required beforedevelopment of a Hope Downs 4 mine could proceed. The Resource for Hope Downs 4 has been prepared in accordance with the JORC Code(2004) by suitably qualified competent person, as detailed below: • Competent Person Resources: John Phillips a full time employee of RTIO with 20 years' experience in geology roles, of which 13 years are in Iron Ore. BSc (Geology) 1987. Member AusIMM - No. 210415 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. 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, Australia Media Relations, LondonAmanda Buckley Christina MillsOffice: +61 (0) 3 9283 3627 Office: +44 (0) 20 8080 1306Mobile: +61 (0) 419 801 349 Mobile: +44 (0) 7825 275 605 Ian Head Nick CobbanOffice: +61 (0) 3 9283 3620 Office: +44 (0) 20 8080 1305Mobile: +61 (0) 408 360 101 Mobile: +44 (0) 7920 041 003 Media Relations, AmericasNancy IvesMobile: +1 619 540 3751 Investor Relations, Australia Investor Relations, LondonDave Skinner Nigel JonesOffice: +61 (0) 3 9283 3628 Office: +44 (0) 20 7781 2049Mobile: +61 (0) 408 335 309 Mobile: +44 (0) 7917 227365 Investor Relations, North America David OvingtonJason Combes Office: +44 (0) 20 7781 2051Office: +1 (0) 801 685 4535 Mobile: +44 (0) 7920 010 978Mobile: +1 (0) 801 558 2645 Email: [email protected] 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 ExchangeRelated Shares:
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