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Rio Tinto Alcan today announced that it is in discussions with the
South African government regarding the timing of the Coega smelter project
near Port Elizabeth, South Africa. A team, consisting of members from
government, Rio Tinto and Eskom, are reviewing the terms of the project in
order to align its timing with the availability of secure power generation
capacity from Eskom.
“We are committed to working closely with the South African
government to assist in mitigating the current energy crisis, while
maintaining the option for future long term development of the Port
Elizabeth region,” said Dick Evans, chief executive, Rio Tinto Alcan
and member of the Rio Tinto Board. “Rio Tinto has operated
successfully in South Africa for several decades, and we look forward to
continuing our mutually beneficial presence in the future,” he added.
Rio Tinto Alcan will work with the government to minimise the impact
of a potential rescheduling on regional economic development. “We
will continue working on our local community and social investment plans
and remain committed to finding solutions that will lead to the development
of this project,” said Sandeep Biswas, senior vice president,
business development, Rio Tinto Alcan. “The objective is to preserve
the feasibility of the project and its underlying benefits for both Rio
Tinto and South Africa, having the long term picture in mind,” he
added.
The project is moving into an interim phase pending the outcome of
ongoing discussions regarding the timing of the project. As the detailed
feasibility study is concluded, the project team will be adjusted for this
interim phase as appropriate.
A long-term energy agreement for the proposed smelter was signed
with Eskom in November 2006, and an agreement for infrastructure and job
training support was concluded with Coega Development Corporation in July
2007. The Industrial Development Corporation of South Africa (IDC) is a 15
per cent partner in the project. An additional ownership allocation, of no
less than 5 per cent, has been reserved for Broad Based Black Economic Empowerment
partners.
Rio Tinto has operated in South Africa
for several decades, currently employing over 4130 people, in Palabora
Mining Company; Richards Bay Minerals (50/50 joint venture with BHP
Billiton), as well as staff in Limpopo and Johannesburg offices.
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 and production
forecasts), 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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