Rio Tinto has reached agreement on the first
sale under its planned programme to divest at least US$15
billion of assets. The Group has signed an agreement to sell
Kennecott Greens Creek Mining Company and Kennecott Juneau
Mining Company, the subsidiaries holding its interests in the
Greens Creek Mine in Alaska, to an affiliate of Hecla Mining
Company.
Greens Creek is a silver, gold, zinc and lead
underground mine and concentrator facility on Admiralty Island
near Juneau. It is currently a joint venture between a Rio
Tinto Kennecott subsidiary (70.3 per cent) and a Hecla subsidiary
(29.7 per cent).
The sale price is US$750 million. The price
comprises a cash component of US$700 million and the balance
in Hecla common stock. Closing is subject to customary
conditions, including expiration of the waiting period under
the Hart-Scott-Rodino Act.
“The sale of our interests in the Greens Creek
Mine is a very positive first step towards our target of
realising asset sales of US$10 billion in 2008,” said Guy
Elliott, chief financial officer of Rio Tinto.
Bret Clayton, Rio Tinto’s Copper product group chief executive said, “Hecla Mining
has for a long time been our joint venture partner and already
has a solid understanding of the mine, the employees, the
community and the State. Hecla is well placed to assume
operation of the mine.”
In November 2007, Rio Tinto announced the
results of its overall strategic review of the company’s asset
portfolio following its acquisition of Alcan. Options are also
being explored to divest Rio Tinto Energy America (coal), Rio
Tinto Minerals’ talc business, Rio Tinto Alcan Packaging, Rio
Tinto Alcan Engineered Products, Rio Tinto’s interest in the
Cortez gold mine in Nevada, Rio Tinto’s Northparkes copper
mine in Australia and Rio Tinto’s Sweetwater (USA) and Kintyre
(Australia) uranium assets.
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.
About Hecla Mining Company
Hecla Mining Company, headquartered in Coeur
d’Alene, Idaho, mines, processes and explores for silver and
gold in the United States, Venezuela, and Mexico. A
117-year-old company, Hecla has long been well-known in the
mining and world financial markets as a quality producer of
silver and gold. Hecla’s common and preferred shares are
traded on the New York Stock Exchange under the symbols HL,
HL-PrB, and HL-PrC.
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
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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