Rio Tinto gives Simandou update

Rio Tinto yesterday welcomed the recent opportunity for its chairman, Paul Skinner, and Sam Walsh, chief executive Iron Ore, to discuss the development of the important Simandou iron ore deposit in Guinea with his Excellency President General Lansana Conté, Prime Minister Dr Ahmed Tidiane Souaré, and senior Ministers and members of the Guinean National Assembly and Social and Economic Council. Paul Skinner commented: “There was positive engagement with all parties sharing an understanding of the benefits Simandou will bring to Guinea, the need for those benefits to flow rapidly to the country and recognition of the good progress Rio Tinto has made with its mine development and investment.” Sam Walsh reported that the meetings were a good opportunity to discuss expediting the project to 70 million tonnes per annum, the work currently taking place on the project and regional development. During the meetings, a framework was agreed for further discussions with a special Inter-Ministerial Committee, which has been established to address issues of concern to both parties and to establish an aligned basis to move the project forward. This remains the firm intent of the Government of Guinea and Rio Tinto. • Rio Tinto has already spent US$300 million on work to develop a long-life mine at Simandou, and expects to have spent over US$400 million by the end of 2008. At present, Rio Tinto is spending US$20 million per month on drilling and support. • As one of the world’s leading mining companies, Rio Tinto brings technical expertise as well as a commitment to sustainable development that is integrated into all aspects of its business. • The Simandou project employs more than 1,800 people in Guinea (including full-time employees and contractors). More than 90 percent of the workforce is Guinean. • Rio Tinto’s exploration and development efforts are focused on the totality of its 738 square kilometre Simandou mining concession area, which represents only 18 per cent of mining holdings in the Simandou range. 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.