3rd Aug 2005 07:02
Rio Tinto PLC03 August 2005 Madagascar titanium dioxide project approved Rio Tinto has announced the approval of a US$775 million titanium dioxideproject. The project comprises a US$585 million mineral sands operation andport in Madagascar and a US$190 million upgrade of Rio Tinto's ilmenitefacilities in Canada. First production from the Madagascar operation in the Fort-Dauphin region isexpected in late 2008 and the initial capacity will be 750,000 tonnes per yearof ilmenite. The ilmenite will be smelted at Rio Tinto's facilities at Sorel in Quebec. Thiswill require an upgrade of storage and handling facilities as well as theirassociated ancillary services at the Sorel site. Leigh Clifford, chief executive of Rio Tinto, said: "This project willconsolidate Rio Tinto Iron & Titanium's position as a leading supplier in thetitanium dioxide feedstock industry. "We have already demonstrated that we are committed to developing the project ina manner consistent with the principles of sustainable development. Indeed, itwill be a model of the contribution mining can make through the successfulintegration of financial, environmental and community objectives." The development is the largest project in Madagascar's history and will be thecatalyst for broader economic development of the country. It is being developedby QIT Madagascar Minerals (QMM), a Malagasy subsidiary of Rio Tinto (80 percent) and the Government of Madagascar (20 per cent). Andrew Mackenzie, chief executive of Rio Tinto's Industrial Minerals productgroup, said: "The Madagascar project and Sorel upgrade will be excellentadditions to our titanium minerals business. "With a grade of 60 per cent titanium dioxide, the Madagascar ore-body is thelargest known undeveloped high-grade ilmenite deposit. It has an expected minelife of 40 years and will supply a new, high quality chloride slag with 91 percent titanium dioxide content, to meet the long-term demand for titanium dioxideby the pigment industry." A deep sea multi-use public port at Ehoala, near the town of Fort-Dauphin, willbe an important component of the project. Rio Tinto's new ilmenite mine will bea key initial customer of this facility, providing a base load business to helpestablish the port. Over time, the port will make an important contribution toeconomic development of the whole region. The Government of Madagascar has agreed to contribute US$35 million to theestablishment of the port, as part of its Growth Poles Project funded by theWorld Bank. QIT Madagascar Minerals will manage the port operations. At the end of the lifeof the mine, the port will fall under the responsibility and control of thegovernment of Madagascar. For further information, please contact: LONDON AUSTRALIAMedia 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 227 365 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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