Rio Tinto to invest US$469 million in development of Kennecott Eagle nickel and copper mine

Rio Tinto to invest US$469 million in development of Kennecott Eagle nickel and copper mine

Rio Tinto to invest US$469 million in development of Kennecott Eagle nickel and copper mine

Rio Tinto is to invest US$469 million in constructing the Kennecott Eagle nickel and copper mine in Michigan’s Upper Peninsula (USA) following receipt of final environmental approvals. Construction of the mine and mill will begin this year and first production is expected in late 2013.

Andrew Harding, chief executive Copper, said, “Moving to the construction phase of Eagle is part of our strategy to increase investment in attractive growth projects in 2010. The long-term demand outlook remains strong for both nickel and copper and bringing Eagle on stream will give us greater benefit from that growth.”

Eagle will be the only primary nickel mine in the US, and is the first new mining operation to be built in Michigan in decades, under some of the most stringent environmental permitting rules in the US. “This reflects an environmentally responsible and community focused operation,” said Mr. Harding.

Eagle will produce separate nickel and copper concentrates containing an average of 17,300 and 13,200 tonnes per year of nickel and copper metal respectively over six years. Funding will enable construction of a new underground mine, associated surface facilities for servicing the mine, rehabilitation of an existing mill and development of a multi-use access road. The Upper Peninsula of Michigan is a highly prospective region for nickel and copper exploration and Rio Tinto is actively exploring for additional resources in the immediate area.

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.

Contacts:

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

Faeth Birch
Conor McClafferty
Clare Hunt
Office: +44 (0) 20 7781 1138
Mobile: +44 (0) 7920 041 003

Media Relations, US
Tony Shaffer
Office: +61 (0) 3 9283 3612
Mobile: +1 202 256 3667

Media Relations, Australia
David Luff
Office: +61 (0) 3 9283 3620
Mobile: +61 (0) 419 850 205

Media Relations, Canada
Stefano Bertolli
Office +1 (0) 514 848 8151
Mobile +1 (0) 514 945 1800

Investor Relations, London
Mark Shannon
Office: +44 (0) 20 7781 1178
Mobile: +44 (0) 7917 576 597

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 3361 4365
Mobile +61 (0) 439 102 811

Further information:

Follow us on Twitter

Website: www.riotinto.com