1st Jul 2005 07:01
Rio Tinto PLC01 July 2005 Hope Downs joint venture strengthens Rio Tinto's position in global iron oremarket Rio Tinto has reached agreement with Hancock Prospecting Pty Ltd to purchase a50 per cent interest in the Hope Downs iron ore assets. Rio Tinto and Hancock Prospecting will enter into a 50:50 unincorporated jointventure to develop the Hope Downs iron ore assets, with the development andongoing operation of the assets to be managed by Rio Tinto. The project willuse Pilbara Iron managed port, rail and power infrastructure. Mr Leigh Clifford, chief executive of Rio Tinto, said, "The acquisition of thisexcellent resource and the development of this project strengthens Rio Tinto'sposition as the prime supplier of iron ore from the Pilbara and will increaseWestern Australia's participation in the global iron ore market. "The interest in the Hope Downs deposits increases Rio Tinto's already strongresource position and provides certainty for the development of Hope Downs." A development proposal has been lodged by Hope Downs Iron Ore Pty Ltd with theWestern Australian government and a review of the existing feasibility study tofinalise the specific steps required for development has commenced. A new mineand enhancement of port and rail facilities represents further significantinvestment in Western Australia. Mr Sam Walsh, chief executive of Rio Tinto Iron Ore, said, "Rio Tinto is wellpositioned to bring the Hope Downs deposits to market promptly given ourestablished market presence. The joint venture will facilitate the developmentof these high quality assets, making maximum use of existing infrastructure, tobring the project to fruition in the shortest time frame possible. "The world's major steel makers highly value Rio Tinto Iron Ore's expertise,quality and reliability, and this transaction will further enhance our abilityto meet customer demands through a diverse range of mines and products." The joint venture will include the Hope Downs 1, 2 and 3 iron ore deposits, andthe East Angelas 1, 2 and 3 deposits. These deposits, which comprise MarraMamba and Brockman type iron ore, include 450 million tonnes of reserves andapproximately 850 million tonnes of resources. The Hope Downs resources aresimilar in quality to West Angelas ore. Rio Tinto's share of these reserves andresources is on a 50 per cent basis. "We are delighted to be developing these deposits with the Hancock Group, whichhas such a long history in the Pilbara and a strong relationship with Rio Tinto.In recognition of this, we have agreed that the deposits and project willretain the original Hope Downs name in perpetuity," said Mr Walsh. The Hope Downs name honours the memory of Mrs Hope Margaret Hancock and therailway spurs and subsequent rail links will be called the Lang Hancock Railway. The cash consideration is below the disclosure threshold of the London StockExchange of five per cent of Rio Tinto's net assets. The purchase is subject tovarious approvals, including Rio Tinto securing relevant government andregulatory approvals. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsLisa Cullimore Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7730 418 385 Mobile: +61 (0) 408 360 101 Investor Relations Investor RelationsNigel Jones Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227365 Mobile: +61 (0) 408 335 309Richard Brimelow Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7753 783 825 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:
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