3rd Jul 2007 07:02
Rio Tinto PLC03 July 2007 Rio Tinto to proceed with US$1.8 billion expansion of Yarwun Alumina Refinery Rio Tinto has approved a US$1.8 billion expansion of the Yarwun Alumina Refineryin Gladstone, Queensland. The expansion will more than double annual production,increasing output by two million tonnes to 3.4 million tonnes by 2011. Rio Tinto's long life resource at Weipa in northern Queensland will supplybauxite to the refinery. The Yarwun expansion will have the benefit ofsubstantial scale efficiencies gained from the construction of the first stageof the refinery. Tom Albanese, Rio Tinto chief executive, said, "The expansion of the YarwunAlumina Refinery is one of the most significant investments made by Rio Tinto inrecent years. The attractive fundamentals of the aluminium industry, combinedwith Yarwun's well located, low cost position and our excellent bauxite resourceat Weipa, reinforce the deep underlying strength of the group's organic growthpipeline." Oscar Groeneveld, Rio Tinto Aluminium chief executive, said, "This projectfirmly positions Rio Tinto in the first quartile of the alumina cost curve andcreates the future supply for the growth in the world traded alumina market.The expansion further strengthens our aluminium infrastructure in Gladstone andQueensland. We have received a high level of encouragement from Federal, Stateand local governments as well as community support. "One important feature of the project is the inclusion of a gas-firedcogeneration facility. Gas will become the refinery's primary fuel source,demonstrating our ongoing commitment to reducing greenhouse gas emissions andimproving energy efficiency." Work will commence on the expansion in the third quarter of 2007 and it isexpected to take about three years to complete. First shipments are expected inthe second half of 2010. All government approvals have been granted. For further information, please contact: LONDON AUSTRALIA Media Relations Media Relations Christina Mills Ian Head Office: +44 (0) 20 8080 1306 Office: +61 (0) 3 9283 3620 Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 408 360 101 Nick Cobban Office: +44 (0) 20 8080 1305 Mobile: +44 (0) 7920 041 003 Investor Relations Investor Relations 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 Susie Creswell Office: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639 Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792 Website: www.riotinto.com 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:
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