05 January 2008
Download pdf PR607g released
at 07.00 am
Rio Tinto announces a coal resource of over 1
billion tonnes at Chapudi
Rio Tinto has further
strengthened its presence in South Africa with the discovery of a
open-pittable coal resource of 1.04 billion tonnes in the Limpopo
Province. The coal is bituminous, and is suitable for generating
electricity.
Where is the deposit
The discovery at Chapudi came through Rio Tinto’s
coal exploration programme in the Limpopo (Soutpansberg) coal basin
of South Africa. The exploration work has been conducted in
conjunction with Rio Tinto’s BEE partner, Kwezi Mining. Exploration
rights over the resource are held by two JV companies; Chapudi Coal
PTY Ltd (Rio Tinto 70%) and Kwezi Mining Exploration PTY Ltd (Rio
Tinto 49%).
Deposit Location
Rio Tinto and Kwezi are continuing with exploration
activities for thermal and coking coal east of the Chapudi project.
The chief executive of Rio Tinto Energy &
Minerals, Preston Chiaro, said: " This is a significant find in an
area that has previously been viewed as having little geological
potential. The project’s potential to produce thermal coal for
electricity generation comes at a time when South Africa needs to
rapidly increase its generating capacity. In addition, the basin
offers the opportunity to produce a range of products, from thermal
to hard coking coal for the export markets. We are currently planning the next phase of the project by beginning our
pre-feasibility studies."
Chapudi Geology
The newly discovered Chapudi Resource lies within
the Limpopo coal basin, in the northern part of South Africa. The
coal is hosted in sediments of the Karoo Group, similar to other
coalfields in Southern Africa. The coal seams at Chapudi occur in
mudstones that can be correlated to the Upper Ecca formations of the
Main Karoo basin.
Rio Tinto and Kwezi Mining began exploring for coal
in the area in 2003, when the 1st borehole was drilled on the farm
Chapudi. This borehole intersected significant thicknesses of coal.
Since then, the Rio Tinto-Kwezi JV has drilled about 90 boreholes in
the project area, and conducted geophysical surveys to aid the
geological interpretation. A total of 12,400 metres have been
drilled to date.
The central part of the project now has sufficient
drilling coverage to define a measured and indicated resource. The
rest of the project area has been drilled to inferred resource
status.
In-situ Resource
(SAMREC/JORC)
The resource at Chapudi has been generated to comply
with both SAMREC and JORC code guidelines. The tabulated figures
below include the Seam 6 in-situ resource, as confined by Rio
Tinto’s granted tenure.
Note: Blank cells mean no resource in this category in the
relevant zone as the entire resource in the zone is in different
category(ies).
Preliminary studies indicate that up to 40 per cent
of the coal may be recoverable for utilisation in a power station.
Significant potential for further resources exists
in the area. Some of the potential occurs on ground that already
belongs to the JV (and can be incorporated into the Chapudi resource
by further drilling), whilst other potential is on ground currently
under lease application.
Future Direction
The coal has been demonstrated through test work to
be suitable for combustion to generate electricity.
Rio Tinto and Kwezi Mining are currently
investigating the feasibility and economics of establishing a mining
operation to feed coal into a power station. They are currently
engaging with Eskom, and a number of Independent power providers to
this effect.
CP statement
The information in this report that relates to
Mineral Resources is based on information compiled by Steen
Kristensen, who is a member of the Australian Institute of Mining
and Metallurgy. Steen is a full-time employee of Rio Tinto Energy
and has experience which is relevant to the style of mineralisation
and type of deposits under consideration and to the activity which
they have undertaken to qualify as a Competent Persons as defined in
the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Minerals Resources and Ore Reserves’. Steen
Kristensen consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
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.
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 actual production during any period, 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
Christina Mills
Office: +44 (0) 20 7781 1154
Mobile: +44 (0) 7825 275 605
Nick Cobban
Office: +44 (0) 20 7781 1138
Mobile: +44 (0) 7920 041 003
Media Relations, US
Nancy Ives
Mobile: +1 619 540 3751
Media Relations,
Australia
Ian Head
Office: +61 (0) 3 9283 3620
Mobile: +61 (0) 408 360 101
Amanda Buckley
Office: +61 (0) 3 9283 3627
Mobile: +61 (0) 419 801 349
Investor Relations,
London
Nigel Jones
Office: +44 (0) 20 7781 2049
Mobile: +44 (0) 7917 227 365
David Ovington
Office: +44 (0) 20 7781 2051
Mobile: +44 (0) 7920 010 978
Investor Relations, North
America
Jason Combes
Office: +1 (0) 801 685 4535
Mobile: +1 (0) 801 558 2645
Investor Relations,
Australia
Dave Skinner
Office: +61 (0) 3 9283 3628
Mobile: +61 (0) 408 335 309
Simon Ellinor
Office:+ 61 (0) 7 3867 1068
Email: questions@riotinto.com
Website: www.riotinto.com
High resolution photographs available at: www.newscast.co.uk
A full copy of the press release is also
available on the Rio Tinto website: www.riotinto.com/media
High resolution photographs available at Newscast www.newscast.co.uk
Kimberley
Sceresini Digital media
coordinator Communications and External Relations
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