Rio Tinto
chief executive Tom Albanese has announced the appointment of
Dr David Smith, currently Pilbara Iron managing director, as
head of the world class Simandou project in Guinea,
West Africa, setting it on
track to become one of the world’s great mining
provinces.
Dr Smith will take up his
post as managing director and president Simandou in March and
will be based in the Guinean capital Conakry. Dr Smith, currently
responsible for all mine operations in the Pilbara, has a wide
career spanning nearly 30 years with Rio Tinto.
“The strategic importance
of Simandou for Rio Tinto cannot be overstated, given the size
and quality of the deposit and the market opportunity, but its
importance to the people of Guinea is even more
profound. Dr Smith’s appointment, with his long association
with industry and community groups and his strong support for
training and employment programs, will ensure Simandou is
developed in a sustainable, beneficial manner for both the
Guinean community and the Rio Tinto shareholders,” Mr Albanese
said.
Rio Tinto’s
pre-feasibility study into the development of a 70 million
tonne per annum mine at Simandou is well advanced. Its development would
make it one of the largest iron ore mines and there are future
plans to make it even larger, to 170 million tonne per annum.
“Simandou is a major new
iron ore province, and promises to have the same exciting
potential as the Pilbara of the 1960s,” said Sam Walsh, chief
executive of Rio Tinto Iron Ore.
“Dr Smith has considerable
experience and a range of attributes to ensure the Simandou
project is accelerated.
He has been a senior executive with a number of our
operational and technology businesses, has had considerable
community and non-mining involvement and has previously lived
and worked in Africa.”
About
Simandou
Simandou is a greenfield exploration
project that began in the late 1990s. It is considered one
of the best undeveloped major iron ore deposits in the world,
with targeted mineralisation of between eight and 11 billion
tonnes1 with substantial opportunities to explore
along the ore body. The deposit is a large, high quality
haematite deposit with a targeted grade of more than 65% iron
content. Rio Tinto has committed US$145 million to date on the
Simandou pre- feasibility study and a further US$44 million on
airport, road and information technology infrastructure. The 70 million tonne
per annum project is expected to cost in the order of US$6
billion.
1
The
target quantity and grade of mineralisation is based on an
assessment of tenure areas in the region using surface mapping, drilling results and other information. The potential
quantity and grade is conceptual in nature – there has been
insufficient exploration to define a Mineral Resource, and it
is uncertain if further exploration will result in the determination of a Mineral Resource.
About
Rio Tinto
Rio
Tinto is a leading international mining group headquartered in
the UK,
combining Rio Tinto plc, a London and NYSE 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.
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