30th Jan 2008 12:34
Rio Tinto PLC30 January 2008 £45 million investment secures future of Scottish Highlands aluminium industry 30 January 2008 Rio Tinto Alcan has announced a £45 (US$90) million investment in themodernisation of its Lochaber plant, in Scotland. The modernisation project willsee new hydroelectric turbo-generators installed to power the smelter, ensuringthe increased use of clean renewable energy for aluminium production at theplant. The modernisation project is set to begin in 2009 and should be completedby 2012. "The £45 million investment to power our Lochaber plant not only secures itsfuture but shows our commitment to improving energy efficiency, increasing ourusage of fully renewable energy and in turn, our levels of production," saidJacynthe Cote, Rio Tinto Alcan Primary Metal President. "36% of our smelterenergy needs are met by clean, self-generated hydroelectricity, a tremendouscompetitive advantage." The existing hydro generators at the Lochaber aluminium plant have been in usesince their installation in 1929. The new modern hydroelectric generators willhave an enhanced capacity to generate the electricity the plant needs, as wellas the potential to generate additional power. As a result of the increasedpower generation, it is expected that aluminium production at Lochaber willincrease from 43,000 tonnes per year to 50,000 tonnes per year. "Making aluminium with hydroelectricity has been a vital part of the Highlandseconomy for over 100 years, with generations of families having worked in theindustry, so we're delighted to confirm a long-term and sustainable future forthe plant today," said Wyn Jones, Alcan Aluminium UK Managing Director. "Today'sannouncement underlines the company's commitment to remain an integral part ofthe Lochaber community and to continue to produce high quality competitiveproducts in Scotland." The Rio Tinto Alcan plant in Lochaber contributes over £8 million a year to theHighlands economy and employs 180 people, making it one of the Highlands'largest private sector employers. It also helps underpin an additional 400 jobsthrough indirect employment and supply chain opportunities. This repoweringproject will offer much needed long-term job security in the region. John Hutton, Secretary of State, Business, Enterprise & Regulatory Reformcommented: "I welcome the announcement of this investment in Rio Tinto Alcan'sLochaber aluminium smelter. I am aware of the importance of the smelter to theregion and the investment will also make a valuable contribution to helping usmeet our renewable energy targets." Rio Tinto Alcan, created in November 2007, is the global leader in aluminium. Itholds the number one position in bauxite and aluminium production and is a majorproducer of alumina, with a clear pathway to the top through its options forexpansion. 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 and production forecasts),are forward-looking statements. Such forward-looking statements involve knownand unknown risks, uncertainties and other factors which may cause the actualresults, performance or achievements of Rio Tinto, or industry results, to bematerially different from any future results, performance or achievementsexpressed or implied by such forward-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 United StatesSecurities and Exchange Commission (the "SEC") or Form 6-Ks furnished to theSEC. Forward-looking statements should, therefore, be construed in light of suchrisk factors and undue reliance should not be placed on forward-lookingstatements. These forward-looking statements speak only as of the date of thisannouncement. Rio Tinto expressly disclaims any obligation or undertaking(except as required by applicable law, the City Code on Takeovers and Mergers(the "Takeover Code"), the UK Listing Rules, the Disclosure and TransparencyRules of the Financial Services Authority and the Listing Rules of theAustralian Securities Exchange) to release publicly any updates or revisions toany 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, Australia Christina Mills Ian Head Office: +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 Rio Tinto Alcan, Lochaber John McCabe Office: +44 (0)1670 393 534 Mobile: +44 (0)7736 103 158 Rio Tinto Alcan Media Relations,Montreal Stefano Bertolli Tel.: +1-514-848-8151 [email protected] Media Relations, US Nancy Ives Mobile: +1 619 540 3751 Investor Relations, London Investor Relations, Australia Nigel Jones Dave Skinner Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628 Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 David Ovington Simon Ellinor Office: +44 (0) 20 7753 2326 Office:+ 61 (0) 7 3867 1068 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] Websites: www.riotinto.com www.riotinto.com/riotintoalcan 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:
Rio Tinto