12th Mar 2008 07:00
Rio Tinto PLC11 March 2008 Rio Tinto announces US$475 million first phase expansion to increase IOCcapacity by 50 per cent 11 March 2008 Rio Tinto has announced the approval of a US$475 million project to increase theIron Ore Company of Canada's (IOC) annual production of iron ore concentrate to22 million tonnes. The investment is the first phase of an IOC expansionprogram that may see production capability increase 50 per cent by 2011. Work will commence immediately to expand IOC's mining and processing facilitiesin Labrador West and increase transportation capacity on its 418 kilometrerailway to its port facilities in Sept-Iles, Quebec. The investment includesthe purchase of new mining equipment as well as installation of a new crusherstation in the mine and autogenous grinding mill in the concentrator and a sixkilometre overland conveyor to link them together. New locomotives and railcars will be purchased to increase railway capacity. The remainder of the expansion program is currently in feasibility studies and adecision will be made later this year on plans to increase annual concentrateproduction further to more than 25 million tonnes, including an increase inpellet production to 14.5 million tonnes. IOC chairman and Rio Tinto Iron Ore chief executive Mr Sam Walsh said thedecision highlighted not only the value of Rio Tinto's global platform of ironore production, but also the level of confidence in market conditions over thelonger term. "The iron ore market is as tight as it has ever been and our sustained andsubstantial reinvestment in our operations in Canada and worldwide demonstratesthe confidence we have in that market. The IOC expansion program emphasises theGroup's ability to increase supply from an existing strong base on severalcontinents," Mr Walsh said. Mr. Terence F. Bowles, president and CEO of IOC, said the expansion will providesubstantial employment and community growth in the Labrador West region. IOC's1,900-strong workforce, one of the largest in the Newfoundland and Labradorindustrial sector, will grow by 200 with this expansion. Construction jobs areexpected to peak at 250 over the next three years. In addition to economicbenefits from growth in tax revenues and local commerce, Labrador West willbenefit from improvements in infrastructure, transportation, recreation andsocial services. "This investment secures the long-term future of our operations and improves thelivelihoods of those around us," said Mr. Bowles, speaking at a news conferencebroadcast on-line from St. John's, the capital city of Newfoundland andLabrador. "IOC has been the main driver of the Labrador West economy for morethan 50 years, and this expansion programme ensures that a new generation offamilies in the region can be confident that there will be rewarding careers foryears to come," he added. "This major expansion reflects the current strong market conditions as well asthe confidence of our shareholders in our ability to deliver," added Mr. Bowles. The investment is one of many being made in Canada by IOC's major shareholderand operator, Rio Tinto, which has activities in more than 40 countriesworldwide. This includes mining developments and acquisitions in BritishColumbia, Northwest Territories and Quebec. IOC's commitment to sustainable development is fully reflected in its expansionprogram. The company is working very closely with local community stakeholdersin Labrador City and Sept-Iles to optimize economic and social impacts and toprotect the natural environment. Community consultations are well underway toensure that this expansion proceeds in the best interests of the communities andIOC. About Iron Ore Company of Canada IOC is Canada's largest iron ore producer, with iron ore being one of Canada'smost important mineral products in terms of both tonnage and value. IOC isknown globally for the high quality of its products, which are often used inblends by steelmakers to improve quality and meet specifications to improvequality and productivity and reduce greenhouse gas emissions. Its broad productrange is sold globally to all segments of steel industry including the highgrowth direct-reduction sector. IOC had approximately 416 million tonnes of ironore reserves and 1.37 billion tonnes of iron ore resources as at 2006* and itcontinues to have significant resources and exploration potential. Rio Tinto is the major shareholder and operator of IOC (58.72 per cent), alongwith Mitsubishi Corporation (26.18 per cent), and Labrador Iron Ore RoyaltyIncome Fund (15.10 per cent). Rio Tinto is a leading international mining groupheadquartered in the UK, whose focus is finding, mining, and processing mineralresources. Rio Tinto Iron Ore is headquartered in Perth, Western Australia. (* Source: Rio Tinto Annual Report 2006) Media Kit: www.ironore.ca. Play or Download the recorded Webcast from theannouncement, a Project Overview video clip, PowerPoint presentation andBackgrounder. 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. Cont.../ 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, LondonAmanda Buckley Christina MillsOffice: +61 (0) 3 9283 3627 Office: +44 (0) 20 8080 1306Mobile: +61 (0) 419 801 349 Mobile: +44 (0) 7825 275 605Ian 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 Media Relations, AmericasNancy Ives Media Relations, CanadaMobile: +1 619 540 3751 Michel Filion Office:+1 514 285 8441 Investor Relations, Australia Investor Relations, LondonDave Skinner Nigel JonesOffice: +61 (0) 3 9283 3628 Office: +44 (0) 20 7781 2049Mobile: +61 (0) 408 335 309 Mobile: +44 (0) 7917 227365Simon Ellinor David OvingtonOffice: +61 (0) 7 3867 1607 Office: +44 (0) 20 7781 2051Mobile: +61 (0) 439 102 811 Mobile: +44 (0) 7920 010 978 Investor Relations, North AmericaJason 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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