8th Dec 2005 07:02
Rio Tinto PLC08 December 2005 Rio Tinto approves Argyle Diamonds underground mine development Rio Tinto has today announced the decision to develop a US$760 million blockcave underground project at its wholly owned Argyle diamond mine in theKimberley region of Western Australia. An additional US$150 million will be spent on a related open pit cutback toenable continuity of production between the cessation of open pit mining in 2008and the ramp up of the underground mine. Development work associated with thepresent exploratory decline will continue, with construction of the undergroundmine to begin once government approvals have been finalised. The average annual production over the life of the underground mine from 2007 to2018 is expected be around 60 per cent of Argyle's historical annual average of34 million carats and of similar quality. Rio Tinto chief executive Leigh Clifford said, "This investment springs from RioTinto's proven capacity to develop large scale underground mines and to competesuccessfully in the global diamond business. "It will allow the Argyle mine - the world's largest diamond mine- to operatebeyond 2008. Furthermore, it will ensure that the mine's high levels ofIndigenous employment will continue to deliver economic and social benefits tothe Kimberley region." Argyle is the largest single contributor to the Kimberley economy with 25 percent of its present full time workforce Indigenous and 50 per cent livinglocally. "The Western Australian Government's agreement to provide royalty relief andwaive some secondary processing obligations has been fundamental to theeconomics of the expansion and will ensure that Argyle continues to play animportant regional role," Mr Clifford said. Keith Johnson, chief executive of Rio Tinto Diamonds said, "The Argyle brand andits signature stone, the pink diamond, will continue to play an important rolein the world diamond market. "This is a particularly good decision for the East Kimberley area, the Indiancutting and polishing industry and the affordable fashion jewellery industry,each with a degree of dependence on the Argyle business," he said. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsMaria Darby Walker Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7725 036 544 Mobile: +61 (0) 408 360 101 Investor Relations Investor Relations Nigel Jones Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 David Ovington Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7920 010 978 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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