7th Jan 2008 08:42
Rio Tinto PLC07 January 2008 Rio Tinto to buy three new iron ore carriers 7 January 2008 Rio Tinto will purchase three 250 000 deadweight tonne ore carriers to transportiron ore from its mines in the Pilbara in Western Australia (and potentiallyfrom Simandou in Guinea) to customers in China and elsewhere. The Group has alsoreserved rights on another two vessels of similar size. The vessels, to be built by Namura Shipyards in Japan and delivered from late2012, will play a critical role in consolidating Rio Tinto Iron Ore's leadershipposition in the global market. They will help Rio Tinto build upon its naturalfreight advantage in Asian exports. The cost of the three vessels will be aboutUS$315 million. China's iron ore imports have grown substantially in recent years and areforecast to continue to grow strongly with the potential to more than doublepost 2010. To maintain and increase its share of this growth, Rio Tinto Iron Oreis expanding the capacity of its Pilbara iron ore operations to 220 milliontonnes by 2009, supported by long term contracts, hybrid contracts and spotsales. During its investor seminar on 26 November 2007, Rio Tinto said its exceptionalgrowth strategy in iron ore and its strong pricing outlook would allow the Groupto build a conceptual pathway to treble production to over 600 million tonnes ofiron ore per annum from Australia and Guinea. Sam Walsh, chief executive of Rio Tinto Iron Ore said, "Competitive freight andfreight management are important levers in our growth plans. These very largeore carriers will assist us in continuing to provide our customers with betterdelivery options well into the future while locking in low, long term freightrates for the benefit of our shareholders." David Peever, managing director of Rio Tinto Marine, said, "Thesefit-for-purpose vessels are designed for maximum loading at Rio Tinto's iron oreports. The timely acquisition of these vessels, and the related options,provides us with maximum flexibility in developing our future marine strategy." Mr Peever said that the Group, through Rio Tinto Marine, manages a freightportfolio with a strong focus on long term, low cost freight positions. "During2008, we will be considering commercial options and partnerships to furtherleverage our very sizable freight business." 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 Ian Head Nick CobbanOffice: +61 (0) 3 9283 3620 Office: +44 (0) 20 8080 1305Mobile: +61 (0) 408 360 101 Mobile: +44 (0) 7920 041 003 Christina Mills Office: +44 (0) 20 8080 1306 Mobile: +44 (0) 7825 275 605Media Relations, Americas Nancy IvesMobile: +1 619 540 3751 Investor Relations, Australia Investor Relations, London Dave Skinner Nigel JonesOffice: +61 (0) 3 9283 3628 Office: +44 (0) 20 7781 2049Mobile: +61 (0) 408 335 309 Mobile: +44 (0) 7917 227365 David OvingtonSimon Ellinor Office: +44 (0) 20 7781 2051Office:+ 61 (0) 7 3867 1068 Mobile: +44 (0) 7920 010 978 Investor Relations, North America Jason CombesOffice: +1 (0) 801 685 4535Mobile: +1 (0) 801 558 2645 Email: [email protected] Website: www.riotinto.comHigh 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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