Eagle Mine commitment
Rio Tinto PLC
17 December 2007
Rio Tinto to enter nickel market with US$300 million Eagle Mine commitment
17 December 2007
Rio Tinto is to invest US$300 million in the development of Eagle, a high-grade
nickel and copper mine in Michigan, USA. Eagle will be the only primary nickel
mine in the US and first production is expected to begin in late 2009. Eagle is
projected to deliver 16,000 tonnes of nickel per year over seven years until
2016. It will also produce valuable co-products of copper, platinum, palladium
and cobalt.
Rio Tinto is also in final contract negotiation to develop a nickel mine at
Sulawesi in Indonesia, with an initial operation of 46,000 tonnes per year with
first production commencing by 2015. There is additional potential at Sulawesi
of a similar size.
Rio Tinto Copper Group Chief Executive, Bret Clayton said, 'Eagle gives Rio
Tinto a valuable opportunity to enter the market for nickel, a key input into
stainless steel, demand for which is rising strongly led by the development of
new infrastructure in developing economies, as well as rising demand for
consumer products and the development of associated processing plant and
equipment.
'Eagle is just one of many projects that will add to Rio Tinto's growth and
value. It is a 4.1 million tonne1 high-grade nickel resource (3.6% nickel, 2.9%
copper) in a highly prospective region for additional nickel discoveries. Our
exploration team discovered Eagle in 2002 and we are now reviewing over 450,000
acres of mineral title we have in the area. Our focus is on six further adjacent
prospects that may have the potential to extend significantly the mine life at
current planned production rates.'
A two-year project construction phase will get underway in 2008, upon receipt of
additional approvals expected in 2008. Three required permits were granted on
14 December 2007. Eagle's mine permit is the first issued by the State of
Michigan under the state's 2004 nonferrous metallic mining law, considered among
the most stringent in the US. The project is located in northwest Marquette
County near the City of Marquette.
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, which
is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major
products 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 North
America with significant businesses in South America, Asia, Europe and southern
Africa.
1 Please refer to previously announced resources in the Rio Tinto 2006 Annual
report and financial statements
Forward-Looking Statements
This announcement includes 'forward-looking statements' within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this announcement, including, without
limitation, those regarding Rio Tinto's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to Rio Tinto's products, production forecasts and
reserve and resource positions), are forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Rio Tinto, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Rio
Tinto's present and future business strategies and the environment in which Rio
Tinto will operate in the future. Among the important factors that could cause
Rio Tinto's actual results, performance or achievements to differ materially
from those in the forward-looking statements include, among others, levels of
demand and market prices, the ability to produce and transport products
profitably, the impact of foreign currency exchange rates on market prices and
operating costs, operational problems, political uncertainty and economic
conditions in relevant areas of the world, the actions of competitors,
activities by governmental authorities such as changes in taxation or regulation
and such other risk factors identified in Rio Tinto's most recent Annual Report
on Form 20-F filed with the United States Securities and Exchange Commission
(the 'SEC') or Form 6-Ks furnished to the SEC. Forward-looking statements
should, therefore, be construed in light of such risk factors and undue reliance
should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this announcement. Rio Tinto expressly
disclaims any obligation or undertaking (except as required by applicable law,
the City Code on Takeovers and Mergers (the 'Takeover Code'), the UK Listing
Rules, the Disclosure and Transparency Rules of the Financial Services Authority
and the Listing Rules of the Australian Securities Exchange) to release publicly
any updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tinto's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is based.
Nothing in this announcement should be interpreted to mean that future earnings
per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed
its historical published earnings per share.
Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its
officers or any person named in this announcement with their consent or any
person involved in the preparation of this announcement makes any representation
or warranty (either express or implied) or gives any assurance that the implied
values, anticipated results, performance or achievements expressed or implied in
forward-looking statements contained in this announcement will be achieved.
For further information, please contact:
Media Relations, London Media Relations, Australia
Christina Mills Amanda Buckley
Office: +44 (0) 20 7781 1154 Office: +61 (0) 3 9283 3627
Mobile: +44 (0) 7825 275 605
Mobile: +61 (0) 419 801 349
Nick Cobban Alison Smith
Office: +44 (0) 20 7781 1138 Office: +61 (0) 7 3361 4223
Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 438 787 038
Media Relations, US
Nancy Ives
Mobile: +1 619 540 3751
Investor Relations, London Investor Relations, Australia
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
Investor Relations, North America
David Ovington Jason Combes
Office: +44 (0) 20 7753 2326 Office: +1 (0) 801 685 4535
Mobile: +44 (0) 7920 010 978 Mobile: +1 (0) 801 558 2645
Email: questions@riotinto.com
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 Exchange