30
January 2008
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released at 7.58am
The Rio Tinto’s US$2 billion project to modernise its
Kitimat smelter in British Columbia, Canada, will be submitted for
Board approval following the decision by the British Columbia
Utilities Commission (BCUC) to accept the 2007 Energy Purchase
Agreement (2007 EPA) between Rio Tinto Alcan and BC Hydro.
This is the last of three conditions necessary to be
met for the project to go ahead. The other two key conditions were
the resolution of a long-term labour agreement to ensure stability
during the planning, the construction and the start-up of the
Modernisation Project (achieved May 2007), and assurances on environmental permitting issues (achieved late December 2007)
Jacynthe C�t�, Rio Tinto Alcan Primary Metal
President, said: “We are very pleased with today’s BCUC decision to
accept the new power agreement between Rio Tinto Alcan and BC Hydro.
Final approval of the project will allow us to stay on target to
deliver first metal by 2012 and reduce greenhouse gas emissions by
half a million tonnes per year.”
The new power agreement provides that the Kitimat
smelter’s electricity needs have priority over any other power
sales. This will allow Rio Tinto Alcan to adjust its power sales to
BC Hydro depending on the final configuration and power requirements
of the modernised smelter.
Once approved, the modernisation of Rio Tinto Alcan’s
Kitimat smelter would increase Rio Tinto’s annual global primary
aluminium production capacity by more than three per cent. This will
make Kitimat not only one of Rio Tinto’s largest wholly-owned
smelters, but also one of the three largest in North America.
Kitimat’s aluminium production capacity would increase by 125,000
tonnes using clean and renewable hydroelectric power from the Rio
Tinto Alcan-owned Kemano power station.
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 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, Australia Amanda Buckley Office: +61 (0) 3 9283
3627 Mobile: +61 (0) 419 801 349
Ian Head Office: +61 (0) 3 9283
3620 Mobile: +61 (0) 408 360 101
Media Relations, London
Christina Mills Office: +44 (0) 20 8080
1306 Mobile: +44 (0) 7825 275 605
Nick Cobban Office: +44 (0) 20 8080
1305 Mobile: +44 (0) 7920 041 003 Media
Relations, Americas
Nancy Ives Mobile: +1 619 540
3751 Investor Relations,
Australia
Dave Skinner Office: +61 (0) 3 9283
3628 Mobile: +61 (0) 408 335 309
Simon Ellinor Office: +61 (0) 7 3867
1607 Mobile: +61 (0) 439 102 811
Investor Relations, North
America
Jason Combes Office: +1 (0) 801 685
4535 Mobile: +1 (0) 801 558 2645
Investor Relations, London
Nigel Jones Office: +44 (0) 20 7781
2049 Mobile: +44 (0) 7917 227365
David Ovington Office: +44 (0) 20 7781
2051 Mobile: +44 (0) 7920 010 978
Email: questions@riotinto.com
Website: www.riotinto.com www.riotinto.com/alcan
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
Bryan
Smith Principalm adviser, digital media Communications and
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