Rio Tinto today
announced that it has lodged mining lease applications for its Bunder
diamond project in the Bundelkhand region of Madhya Pradesh, India, which
is a vital step in the development of what could be the first significant
world class diamond mine in India.
Rio Tinto also
announced the exploration target for diamond mineralisation at the Bunder
project of 40-70 million tonnes at a grade of between 0.3 and 0.7 carats
per tonne. The targeted diamond grades are at least three times greater
than the grade of the Panna mine, India's only other hard rock diamond
mine.
The original
discovery was made as part of a regional exploration reconnaissance in
2002. A Prospecting License was executed in September 2006, which allowed
exploration activities to continue, and an order of magnitude study was
commenced to evaluate the economic viability of the eight diamondiferous
lamproites. The results of this are expected by the end of Q3 2008.
Nik Senapati,
managing director of Rio Tinto in India, said, "Diamonds are a
significant part of the history of India and an important product for Rio
Tinto. We have spent more than 100 Crore rupees (US$25 million) over the
last six years on diamond exploration and evaluation in India, and remain
excited about the prospects for the Bunder project. The application for
mining leases is confirmation of our commitment to both mining in India and
the global diamond industry."
Bill Champion,
managing director of Rio Tinto's diamond business commented, "We are
delighted with the progress of the Bunder Project, which has the potential
to be a world class operation. Rio Tinto has a strong track record of
introducing new productions into the market and significantly enhancing
their value. We are committed to ensuring a stronger, healthier and
environmentally secure community at Bunder, as we have done across all of
our diamond operations."
Currently, Rio
Tinto processes the majority of its diamonds in India and independently
markets the diamond productions from its Australian, Canadian and African
mines, with a well established presence in all the major diamond centres of
the world. Rio Tinto's strategic alliance with the Indian diamond industry,
built over the past 25 years, has enabled it to gain a deep understanding
of India as the world's largest diamond cutting centre and as one of the
key emerging markets for diamond demand.
Work on the
Bunder diamond project to date includes mapping, 48 drill-holes and five
surface bulk samples. Drilling is continuing and further surface bulk
sampling to support diamond valuation is underway. Environmental approval
for a 10 tonne per hour Dense Media Separation Plant is expected soon from
the Madhya Pradesh government, which allows processing of bulk samples at
the project site.
Following the
completion of the order of magnitude study in the second half of 2008, a
pre-feasibility study would involve further social and environmental
studies including further drilling and below the surface bulk sampling. In
total Rio Tinto has spent over 75 Crore rupees (US$19 million) to date on
evaluation of the deposit. Plans are in place to spend around a further 135
Crore rupees (US$30 million) to support continued evaluation of the
deposit.
CP Statement
The Exploration
Targets (being reported under Section 18 of the JORC Code) are based on
assessments of prospects within Rio Tinto's Bunder project prospecting
licenses which are supported by drilling, geophysics, surface bulk sampling
and modelling undertaken over the last the years. However there may be
changes during evaluation of this mineralisation which can only be
established through further work.
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 discovery of a Mineral Resource.
The information
in this presentation that relates to Exploration Results is based on
information compiled by Stefanie Loader who is a member of the Australian
Institute of Geoscientists. Stefanie Loader is a full-time employee of Rio
Tinto and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which they are undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Stefanie Loader consents to
the inclusion in the presentation of the matters based on her 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 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 Rio
Tinto's Diamond Business
Rio Tinto has a
global diamond exploration portfolio encompassing six continents and
including projects in Canada, India, southern and western Africa, Brazil,
Russia and Australia.
Currently, Rio
Tinto produces about 16 per cent of the world's rough diamonds by volume
and 8 per cent by value through its 100 per cent control of the Argyle mine
in Australia, 60 per cent of the Diavik mine in Canada and a 78 per cent
interest in the Murowa mine in Africa.
These three
mines allow Rio Tinto to be present in all segments of the market. Rio
Tinto's share of the production from these three mines was approximately
US$1billion in 2007 and sold through Rio Tinto Diamonds NV in Antwerp,
Belgium. 70 per cent of Rio Tinto's diamonds are processed in India.
Rio Tinto Diamonds NV is the sales and marketing division representing the
diamond mines of the Rio Tinto Group. Rio Tinto Diamonds NV is a leading
supporter of the Kimberley Process as well as a founding member of the
Council for Responsible Jewellery Practices.
Website: www.riotintodiamonds.com
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.
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