Rio Tinto Alcan and South African Government in discussions on timing of Coega smelter project
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.
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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.
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