30th Jan 2008 07:58
Rio Tinto PLC30 January 2008 Rio Tinto clears major hurdle for US$2 billion Kitimat smelter modernisation inBritish Columbia 30 January 2008 Rio Tinto's US$2 billion project to modernise its Kitimat smelter in BritishColumbia, Canada, will be submitted for Board approval following the decision bythe British Columbia Utilities Commission (BCUC) to accept the 2007 EnergyPurchase Agreement (2007 EPA) between Rio Tinto Alcan and BC Hydro. This is the last of three conditions necessary to be met for the project to goahead. The other two key conditions were the resolution of a long-term labouragreement to ensure stability during the planning, the construction and thestart-up of the Modernisation Project (achieved May 2007), and assurances onenvironmental permitting issues (achieved late December 2007) Jacynthe Cote, Rio Tinto Alcan Primary Metal President, said: "We are verypleased with today's BCUC decision to accept the new power agreement between RioTinto Alcan and BC Hydro. Final approval of the project will allow us to stay ontarget to deliver first metal by 2012 and reduce greenhouse gas emissions byhalf a million tonnes per year." The new power agreement provides that the Kitimat smelter's electricity needshave priority over any other power sales. This will allow Rio Tinto Alcan toadjust its power sales to BC Hydro depending on the final configuration andpower requirements of the modernised smelter. Once approved, the modernisation of Rio Tinto Alcan's Kitimat smelter wouldincrease Rio Tinto's annual global primary aluminium production capacity by morethan three per cent. This will make Kitimat not only one of Rio Tinto's largestwholly-owned smelters, but also one of the three largest in North America.Kitimat's aluminium production capacity would increase by 125,000 tonnes usingclean and renewable hydroelectric power from the Rio Tinto Alcan-owned Kemanopower station. 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, London Amanda Buckley Christina Mills Office: +61 (0) 3 9283 3627 Office: +44 (0) 20 8080 1306 Mobile: +61 (0) 419 801 349 Mobile: +44 (0) 7825 275 605 Ian Head Nick Cobban Office: +61 (0) 3 9283 3620 Office: +44 (0) 20 8080 1305 Mobile: +61 (0) 408 360 101 Mobile: +44 (0) 7920 041 003 Media Relations, Americas Nancy Ives Mobile: +1 619 540 3751 Investor Relations, Australia Investor Relations, London Dave Skinner Nigel Jones Office: +61 (0) 3 9283 3628 Office: +44 (0) 20 7781 2049 Mobile: +61 (0) 408 335 309 Mobile: +44 (0) 7917 227365 Simon Ellinor David Ovington Office: +61 (0) 7 3867 1607 Office: +44 (0) 20 7781 2051 Mobile: +61 (0) 439 102 811 Mobile: +44 (0) 7920 010 978 Investor Relations, North America Jason Combes Office: +1 (0) 801 685 4535 Mobile: +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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