Rio Tinto completes sale of potash assets

Rio Tinto completes sale of potash assets

Rio Tinto completes sale of potash assets

Rio Tinto has completed the sale of its undeveloped potash assets to Vale, the Brazilian mining company, for a cash consideration of US$850 million. The transaction is comprised of the Potasio Rio Colorado potash project in Argentina and the Regina exploration assets in Canada. The proceeds from this divestment will be used for the repayment of debt.

The potash divestment, which was announced on 30 January 2009, was part of a larger transaction that included the Corumbá iron ore mine in Brazil and the associated river logistics operations in Paraguay. The Corumbá transaction will complete when appropriate consents are received, and completion is expected in the second half of 2009. The total consideration for the Corumbá assets is US$750 million.

In December 2008, Rio Tinto announced a detailed package of measures in response to the rapidity and severity of the global economic downturn. One aspect of those measures included expanding the scope of the Group’s existing asset divestment programme.

During 2008, Rio Tinto realised almost US$3 billion from asset sales, comprising the Greens Creek mine in Alaska for US$750 million, its interest in the Cortez operation in Nevada for US$1.695 billion and the Kintyre uranium project in Western Australia for US$495 million. In January 2009, the Group announced the divestment of its interest in the Ningxia aluminum smelter in China for US$125 million.

About Potasio Rio Colorado
Potasio Rio Colorado – Argentina’s first potash project – is a tier 1 asset located in the Malargüe department in the province of Mendoza. The project is in the feasibility stage and if fully developed will allow Argentina to become one of the world’s major producers of potash, an essential crop nutrient. The life of the mine is projected to last more than 50 years.

About Regina Potash
Regina Potash is a large 1,200km2 property east of the Belle Plaine mine in Saskatchewan, Canada. The project is currently at early evaluation stage and is located close to existing infrastructure.

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.

For further information, please contact:

Media Relations London
Christina Mills
Office: +44 (0) 20 7781 1154
Mobile: +44 (0) 7825 275 605

Nick Cobban
Office: +44 (0) 20 7781 1138
Mobile: +44 (0) 7920 041 003

Media Relations, US and South America
Tony Shaffer
Office: +1 202 393 0266
Mobile: +1 202 256 3667

Media Relations, Australia
Ian Head
Office: +61 (0) 3 9283 3620
Mobile: +61 (0) 408 360 101

Amanda Buckley
Office: +61 (0) 3 9283 3627
Mobile: +61 (0) 419 801 349

Media Relations, Canada
Stefano Bertolli
Office: +1 (0) 514 848 8151
Mobile: +1 (0) 514 915 1800

Investor Relations, London
Nigel Jones
Office: +44 (0) 20 7781 2049
Mobile: +44 (0) 7917 227 365

David Ovington
Office: +44 (0) 20 7781 2051
Mobile: +44 (0) 7920 010 978

Investor Relations, North America
Jason Combes
Office: +1 (0) 801 204 2919
Mobile: +1 (0) 801 558 2645

Investor Relations, Australia
Dave Skinner
Office: +61 (0) 3 9283 3628
Mobile: +61 (0) 408 335 309

Simon Ellinor
Office: +61 (0) 7 3867 1607
Mobile: +61 (0) 439 102 811