<<
- Cash offer price of US$101 per common share values Alcan at
US$38.1 billion.
- Excellent fit with Rio Tinto's overall asset portfolio, strategy and
value focus.
- Creation of a new global leader in the aluminium industry to be called
Rio Tinto Alcan.
- Alcan's board of directors unanimously recommends acceptance of the
offer and states that Rio Tinto's proposal fully meets the requirements
of the Continuity Agreement.
- Global headquarters of Rio Tinto Alcan to be in Montréal, led by
current Alcan chief executive Dick Evans.
- Rio Tinto and Alcan agree to divest Alcan Packaging business.
>>
MONTREAL, MELBOURNE and LONDON, July 12 /CNW Telbec/ - Rio Tinto and
Alcan today announced they have reached an agreement for Rio Tinto to make an
offer to acquire all of Alcan's outstanding common shares for US$101 per
common share in a recommended, all cash transaction. The offer represents a
total equity consideration for Alcan of approximately US$38.1 billion.
The offer represents a premium of 65.5 per cent to Alcan's all time high
closing share price of US$61.03 on 4 May 2007 prior to the Alcoa offer. It
also represents a premium of 32.8 per cent to the value of Alcoa's current
offer of US$76.03, based on Alcoa's closing share price on 11 July 2007.
The combined aluminium product group, to be named Rio Tinto Alcan, will
be a new global leader in the aluminium industry with large, long life, low
cost assets worldwide. The combined Group's access to significant bauxite
reserves, competitive alumina refining, low cost hydro power, leading smelter
technology, and a deep and diverse talent pool provides an excellent position
to capitalise on the favourable demand fundamentals of the aluminium industry.
Rio Tinto Alcan will also have a strong portfolio of growth projects.
Commenting on the offer, Rio Tinto Chairman Paul Skinner said: "This
transaction combines two leading and complementary aluminium businesses, and
is a further step in Rio Tinto's strategy of creating shareholder value
through investing in high quality, large scale, low cost and long life assets
in attractive sectors.
We believe that Alcan, with its proven operating expertise and unique set
of competitively positioned aluminium assets and power sources, will be an
excellent complement to our existing diversified portfolio. It also adds to
our significant presence in Québec and Canada, where we have long standing
operations in QIT-Fer et Titane, Iron Ore Company of Canada and Diavik Diamond
Mines. We are very pleased that the enlarged aluminium product group, Rio
Tinto Alcan, will be headquartered in Montréal and led by the current Alcan
chief executive officer, Dick Evans."
Commenting on the attractiveness of the offer to Alcan shareholders,
Québec and Canada, Alcan Chairman Yves Fortier said: "The agreed transaction
with Rio Tinto is the outcome of a rigorous and thorough process conducted by
the Alcan board. It achieves all of our stated goals, providing clearly
superior value to Alcan shareholders while remaining true to our core values
and obligations as responsible corporate citizens. In addition to a very
attractive all cash premium, this transaction offers Alcan shareholders the
certainty of a clear path to completion given our relatively limited
operational overlap and a commitment by both parties to an expeditious close.
Importantly, Rio Tinto has agreed to meet Alcan's existing business and social
commitments to Québec and Canada and the Alcan board has therefore determined
that the offer meets the terms of our Continuity Agreement with the Government
of Québec."
Tom Albanese, Rio Tinto chief executive, stated: "This transaction will
enable Rio Tinto's shareholders to benefit from the quality of Alcan's
organisation and asset portfolio, the favourable demand fundamentals of the
aluminium sector and the synergies and enhanced development opportunities
which the combination of our businesses will deliver. The acquisition will be
value enhancing to shareholders, and we expect it to be earnings and cash flow
per share accretive to Rio Tinto in the first full year. Rio Tinto intends to
retain its focus on mining and metals activities by the divestment of Alcan's
Packaging division, as jointly agreed with Alcan. The Engineered Products
division will be retained with a focus on managing the portfolio for optimum
value."
Dick Evans, Alcan's president and chief executive officer, commented,
"With an attractive cost position bolstered by a strong technology portfolio,
complementary refining and smelting assets, and a strong growth pipeline, the
combination of Rio Tinto and Alcan will create a new global leader in the
aluminium industry. We are pleased to have achieved this outstanding result
for Alcan's shareholders while being able to offer compelling opportunities
for our employees as part of an extremely strong, diversified global
organisation with an expanded presence in Montréal. Alcan Packaging will have
better opportunities for development and success following its divestiture and
we will ensure a smooth transition for all involved. As we move ahead
together, we will remain true to our shared values, including commitments to
the environment, health, safety and sustainability, and our focus on creating
value. I am personally delighted and excited by the opportunity of leading the
new larger aluminium group, Rio Tinto Alcan."
Excellent fit with Rio Tinto's portfolio, strategy and value focus
Alcan has a high quality upstream asset portfolio with a sustainable low
cost position through its excellent access to long life hydro power. In
addition, the Alcan technology and hydro assets complement Rio Tinto's
existing energy and climate change strategy, which is to position the Group
for a future in which carbon emissions will be constrained.
The transaction is expected to create a new global aluminium industry
leader in bauxite, alumina, power, aluminium and technology - with a strong
pipeline of attractive growth projects for the future. Rio Tinto Alcan would
be the largest global producer of aluminium and bauxite, based on current
production, with a defined pathway through the commissioning of Gove and the
committed expansion of Yarwun to becoming the largest producer of alumina.
The acquisition of Alcan will position Rio Tinto to capitalise on the
strong demand fundamentals of the aluminium sector. The attractive physical
properties of aluminium have ensured its use in a wide range of applications
at all stages of economic development, including construction and
infrastructure development, transportation, and consumer goods and packaging.
The offer is value enhancing to Rio Tinto shareholders based on Rio
Tinto's rigorous project evaluation criteria. Rio Tinto expects the
acquisition to be earnings and cash flow per share accretive to Rio Tinto in
the first full year of consolidation.
Overall anticipated post tax synergies from the transaction are expected
to be around $600 million per year. The combination of the two companies'
existing assets offers attractive opportunities to consolidate ownership and
achieve capital and operational efficiencies.
The geographical profile of the combined businesses will provide an
enhanced platform to exploit future global growth opportunities.
The increased overall size of Rio Tinto following the transaction will
provide the opportunity for a strategic review of all Rio Tinto assets
focusing on those which lack the long term competitive position to belong in
the larger Group.
Operations in Québec/ Canada
Rio Tinto has been an investor in Québec and Canada for decades and
currently has significant business activities in the Province of Québec
(including QIT-Fer et Titane and Iron Ore Company of Canada), and the
Northwest Territories (Diavik Diamond Mines). In 2006, these assets generated
revenues of US$2.3 billion (representing nine per cent of Rio Tinto's gross
revenues) and paid taxes of US$409 million (representing 11 per cent of total
taxes paid by Rio Tinto). In 2006, Rio Tinto employed approximately 4,300
people in Canada, with a significant number located in Québec.
Rio Tinto is committed to growing the combined Rio Tinto and Alcan
presence in Canada, particularly in the Provinces of Québec and British
Columbia. In addition to headquartering the combined aluminium product group
in Montréal, Rio Tinto will maintain the product group's aluminium smelting
technology research and development headquarters in Québec. This will involve
the relocation of Rio Tinto Aluminium's existing smelting technology unit to
Québec.
In addition, Rio Tinto intends to locate one of its regional shared
service hubs in Montréal to support its enlarged asset base and operations in
Canada.
Operations in Australia
Rio Tinto recognises Australia's strengths in bauxite extraction and
alumina refinery operations and project development. It is committed to
leveraging those strengths by locating the combined global Bauxite and Alumina
business and associated research and development activities in Queensland. As
Rio Tinto and Alcan's assets in Australia are largely complementary, it is
expected that the merger and integration will provide opportunities for cost
synergies and revenue enhancement as a result of expansion of Australian
output.
Rio Tinto has a significant programme of capacity growth in place
following the recent announcement of the expansion at Rio Tinto's Yarwun
alumina refinery, and the ongoing bauxite capacity expansion at Weipa.
Operations in France
Rio Tinto has had operations in France since the 1960s, and maintains a
research and development facility for its Diamonds and Minerals product group
in Toulouse. Rio Tinto recognises Alcan's extensive presence in France as well
as France's long history of expertise in research and development in aluminium
technology. Rio Tinto is committed to building upon Alcan's research and
development capabilities in France, including advanced smelter technology
programmes, currently under development by Rio Tinto Aluminium.
Common cultures
Rio Tinto and Alcan share demonstrated common values, including a strong
commitment to the principles of sustainable development, including health and
safety of employees, excellence in environmental stewardship and positive
engagement with local communities. Accordingly, Rio Tinto is committed to
creating the Rio Tinto Alcan foundation in Canada, which will have an
endowment of C$200 million built-up over a five year period. It will replace
Alcan's existing practice of donating one per cent of pre-tax profits to
community, educational, cultural and charitable commitments.
Governance, management and employees
Rio Tinto holds Alcan's organisation in high regard and the current Alcan
executive team will play a role in both the combined aluminium business and
the enlarged Rio Tinto Group. The current Alcan chief executive officer, Dick
Evans, will become chief executive of the combined aluminium product group,
Rio Tinto Alcan, based in Montréal and will report directly to Rio Tinto's
chief executive, Tom Albanese. Alcan employees will benefit from opportunities
within the enlarged Rio Tinto Group, including a stronger and more
strategically positioned upstream aluminium business. Key positions in Rio
Tinto Alcan will be filled by people from both organisations. The combination
of the two organisations will afford Alcan and Rio Tinto employees
unparalleled opportunities to develop their careers.
Rio Tinto will add three new members to its board: two non-executive
members of the Alcan board and Dick Evans as chief executive of the aluminium
product group. The size of the board will therefore increase on closing from
13 to 16.
Rio Tinto intends to pursue the basis for a secondary listing of Rio
Tinto plc shares on the Toronto Stock Exchange.
Rio Tinto plans to establish a Canada Forum comprising the chairman,
chief executive, Canadian non-executive directors, other Canadian advisers and
senior executives based in Canada, including the chief executive of Rio Tinto
Alcan, to advise its board on Canadian economic, political and social issues.
This will be modelled on Rio Tinto's comparable Australia Forum.
Given the increased importance of France in Rio Tinto's portfolio which
will result from this transaction, Rio Tinto intends to appoint a suitably
qualified adviser from Alcan's existing group of non-executive directors to
assist in relation to business developments in France.
Board of Alcan recommendation
The board of Alcan, after consulting with its financial and legal
advisors and the Strategic Committee of directors, has unanimously recommended
that Alcan shareholders should accept the offer. Morgan Stanley, acting as
lead financial advisor to the board of Alcan, has provided a written opinion
to the board of Alcan that the offer is fair, from a financial point of view,
to Alcan shareholders.
Support agreement
The support agreement between Rio Tinto and Alcan provides for a break
fee of US$1,049 million payable by Alcan to Rio Tinto in certain
circumstances, and of a break fee payable by Rio Tinto to Alcan in certain
circumstances equal to the lesser of US$1,049 million and one per cent of the
market capitalisation of Rio Tinto on the date such payment becomes due.
Separately, Rio Tinto or Alcan may become liable to pay expense reimbursement
of US$200 million to the other party in certain circumstances. In addition,
the agreement contains, among other things, customary terms and conditions for
an agreement of this nature, including a non-solicitation provision, the right
of notification should Alcan receive a third party proposal and the right to
match any proposal which the board of Alcan deems superior.
Continuity agreement
A special feature of the proposed transaction is Alcan's obligations
under the Continuity Agreement with the Québec Government.
The Continuity Agreement was signed in 2006 when Alcan, the Government of
Québec and Hydro Québec agreed upon investments, loans, and further water and
power rights. Alcan then made an undertaking that it would maintain its head
office and principal place of business in Québec and that it would ensure
that, in the event of a change of control, the acquirer would maintain the
same level and quality of commitments in Québec to socio-economic programmes
and to regional development as then existed at Alcan.
In such eventuality, a potential acquirer needs to demonstrate that, as a
result of the proposed transaction, there is no reasonable basis to believe
that there will be either a diminishment of Alcan's commitment to the economy
and society of Québec or a direct or indirect negative impact on the economy
and society of Québec.
Rio Tinto has given assurances, evidence and commitments to the board of
Alcan and the Government of Québec that Rio Tinto Alcan will maintain its head
office and principal place of business in Québec together with the same level
and quality of commitments as now exist at Alcan.
Rio Tinto has demonstrated to the satisfaction of the board of Alcan that
the requirements of the Continuity Agreement have been met and is notifying
the Government of Québec accordingly.
About the offer
Rio Tinto expects to file the offer and takeover bid circular containing
the full terms, conditions and other details of the offer with the Canadian
Securities regulatory authorities and the Securities and Exchange Commission
of the United States on or about 23 July 2007.
The offer is subject to a number of conditions including valid
acceptances of not less than 66 2/3 per cent of Alcan shares on a fully
diluted basis and the approval of Rio Tinto shareholders. The board of Rio
Tinto has approved the transaction and has undertaken to recommend the
transaction to its shareholders, at the time of mailing the shareholders
circular. The offer will also be subject to certain customary conditions
including receipt of necessary regulatory and antitrust approvals, including
in the United States, Canada, the European Union and Australia, and the
absence of material adverse changes or effects. The offer is expected to close
in the fourth quarter of 2007.
The offer will be made to holders in France of shares admitted to trading
on Euronext-Paris.
An announcement including the main information relating to Rio Tinto's
offer documents will be prepared and released pursuant to article 231-24 of
the AMF General Regulation and will contain information relating to how and
the time period within which Alcan shareholders residing in France can accept
this offer.
The offer will be made to holders in Belgium of Alcan shares and/or
certificates admitted to trading on Euronext-Brussels (the "IDRs"). A Belgian
supplement, addressing issues specific to holders of shares and/or IDRs in
Belgium (the "Belgian Supplement") is expected to be approved by the Belgian
Banking, Finance and Insurance Commission. Once such approval has been
obtained, the offer and takeover bid circular can be made available in Belgium
to holders of shares and/or IDRs together with the Belgian Supplement.
Financing
The acquisition of Alcan will be financed by Rio Tinto through newly
committed bank facilities underwritten by The Royal Bank of Scotland, Deutsche
Bank, Credit Suisse, and Société Générale. The offer will not be conditional
on financing. Rio Tinto's goal is to maintain a single A rating. The
commitment to a progressive dividend policy will be maintained. The existing
Rio Tinto buyback programme will be discontinued.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the
UK, combining Rio Tinto plc, a London 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.
The Group's objective is to maximise the overall long term return to
shareholders through a strategy of investing in large, cost competitive mines,
driven by the quality of each opportunity, not the choice of commodity.
Wherever Rio Tinto operates, the health and safety of its employees is
the first priority. The Group seeks to contribute to sustainable development.
It works as closely as possible with host countries and communities,
respecting their laws and customs and ensuring a fair share of benefits and
opportunities.
About Alcan
Alcan Inc. is a leading global materials company, delivering high quality
products, engineered solutions and services worldwide. With operations in
bauxite mining, alumina processing, primary metal smelting, power generation,
aluminium fabrication, engineered solutions as well as flexible and specialty
packaging, and with world class technology, Alcan is well positioned to meet
and exceed its customers' needs. Alcan is represented by 68,000 employees,
including its joint ventures, in 61 countries and regions.
For the year ended 31 December 2006, Alcan had audited consolidated
revenues of US$23,641 million (2005: US$20,320 million), and profit before
taxation of US$2,373 million (2005: US$323 million). Alcan had audited gross
assets as at 31 December 2006 of US$28,939 million. The Alcan financial
information presented above has been extracted without material amendment from
published financial reports prepared under US GAAP.
Advisers and counsel
Deutsche Bank along with CIBC World Markets have acted as principal
advisers to Rio Tinto on the transaction. Rio Tinto has also taken some advice
from Credit Suisse and Rothschild. Rio Tinto's legal advisers are Linklaters
LLP and McCarthy Tétrault LLP.
Alcan is being advised by Morgan Stanley, JP Morgan, UBS and RBC Capital
Markets, and legal counsel are Ogilvy Renault LLP and Sullivan & Cromwell LLP.
Webcast details
There will be a presentation for analysts and investors in
UK/Europe/Australia at 10.00 BST which will be webcast live on Rio Tinto's
website at www.riotinto.com.
There will also be a presentation for analysts and investors in North
America at 15.30 BST / 10.30 EST which will be webcast live on Rio Tinto's
website at www.riotinto.com
Additional information
IMPORTANT INFORMATION:
Deutsche Bank AG is authorised under German Banking Law (competent
authority: BaFin - Federal Financial Supervising Authority) and with respect
to UK commodity derivatives business by the Financial Services Authority;
regulated by the Financial Services Authority for the conduct of UK business.
Deutsche Bank AG is acting exclusively for Rio Tinto plc and no one else in
connection with the Alcan acquisition and will not be responsible to anyone
other than Rio Tinto plc for providing the protections afforded to clients of
Deutsche Bank or for providing advice in relation to the Alcan acquisition
and/or any other matter referred to in this announcement.
CIBC World Markets Inc. is acting exclusively for Rio Tinto in connection
with the Alcan acquisition and will not be responsible to anyone other than
Rio Tinto for providing advice in relation to the Alcan acquisition and/ or
any other matter referred to in this announcement. CIBC World markets plc, an
affiliate of CIBC World Markets Inc., is authorised and regulated by the
Financial Services Authority of the United Kingdom.
The offer to purchase all of the issued and outstanding common shares of
Alcan (the "Offer") is being made by Rio Tinto Canada Holding Inc. (the
"Offeror"), a wholly-owned indirect subsidiary of Rio Tinto.
This announcement is for information purposes only and does not
constitute or form part of any offer or invitation to purchase, otherwise
acquire, subscribe for, sell, otherwise dispose of or issue, or any
solicitation of any offer to sell, otherwise dispose of, issue, purchase,
otherwise acquire or subscribe for, any security. The Offer (as the same may
be varied or extended in accordance with applicable law) will be made
exclusively by means of, and subject to the terms and conditions set out in,
the offer and takeover bid circular to be delivered to Alcan and filed with
Canadian provincial securities regulators and the United States Securities and
Exchange Commission (the "SEC") and mailed to Alcan shareholders.
The release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law and therefore persons in such
jurisdictions into which this announcement is released, published or
distributed should inform themselves about and observe such restrictions.
In connection with the Offer, Rio Tinto will be filing with the Canadian
securities regulatory authorities and the SEC an offer and takeover bid
circular as well as ancillary documents such as a letter of transmittal and a
notice of guaranteed delivery and Alcan is expected to file a directors'
circular with respect to the Offer. Rio Tinto will also file with the SEC a
Tender Offer statement on Schedule TO (the "Schedule TO") and Alcan is
expected to file with the SEC a Solicitation/Recommendation Statement on
Schedule 14D-9 (the "Schedule 14D-9"). SHAREHOLDERS OF ALCAN ARE URGED TO READ
THE OFFER AND TAKEOVER BID CIRCULAR (INCLUDING THE LETTER OF TRANSMITTAL AND
NOTICE OF GUARANTEED DELIVERY), THE SCHEDULE TO (INCLUDING THE OFFER AND
TAKEOVER BID CIRCULAR, LETTER OF TRANSMITTAL AND RELATED TENDER OFFER
DOCUMENTS) AND THE SCHEDULE 14D-9 AS THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE OFFER.
The offer and takeover bid circular as well as other materials filed with
the Canadian securities regulatory authorities will be available
electronically without charge at www.sedar.com. The Schedule TO and the
Schedule 14D-9 will be available electronically without charge at the SEC's
website, www.sec.gov, after they have been
filed. Materials filed with the SEC
or the Canadian securities regulatory authorities may also be obtained without
charge at Rio Tinto's website, www.riotinto.com
While the Offer is being made to all holders of Alcan common shares, this
announcement does not constitute an offer or a solicitation in any
jurisdiction in which such offer or solicitation is unlawful. The Offer is not
being made in, nor will deposits be accepted in, any jurisdiction in which the
making or acceptance thereof would not be in compliance with the laws of such
jurisdiction. However, Rio Tinto may, in its sole discretion, take such action
as they may deem necessary to extend the Offer in any such jurisdiction.
Forward looking statements
This announcement contains statements which constitute "forward-looking
statements" about Rio Tinto and Alcan. Such statements include, but are not
limited to, statements with regard to the outcome of the proposed Offer, any
statements about cost synergies, revenue benefits or integration costs,
capacity, future production and grades, projections for sales growth,
estimated revenues and reserves, targets for cost savings, the construction
cost of new projects, projected capital expenditures, the timing of new
projects, future cash flow and debt levels, the outlook for minerals and
metals prices, the outlook for economic recovery and trends in the trading
environment and may be (but are not necessarily) identified by the use of
phrases such as "will", "intend", "estimate", "expect", "anticipate",
"believe" and "envisage". By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future and may be outside the control of Rio Tinto or
Alcan. Actual results and developments may differ materially from those
expressed or implied in such statements because of a number of factors,
including the outcome of the proposed Offer, revenue benefits and cost
synergies being lower than expected, integration costs being higher than
expected, 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 SEC or Form 6-Ks
furnished to the SEC or Alcan's most recent periodic and current reports on
Form 10-K, 10-Q or 8-K filed with the SEC (as the case may be).
Forward-looking statements should, therefore, be construed in light of such
risk factors and undue reliance should not be placed on forward-looking
statements.
Nothing in this announcement should be interpreted to mean that the
future earnings per share of Rio Tinto will necessarily match or exceed its
historical published earnings per share.
Other than in accordance with their legal and regulatory obligations
(including, in the case of Rio Tinto, under the UK Listing Rules and the
Disclosure and Transparency Rules of the Financial Services Authority),
neither Rio Tinto nor Alcan is under any obligation and each of Rio Tinto and
Alcan expressly disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
<<
RIO TINTO AND CANADA
Rio Tinto has been present in Canada for over 50 years, from the time when
Rio Tinto took part in Canada's tremendous post-war mineral development and
infrastructure boom.
Today Rio Tinto employs approximately 4,300 people in Canada. Our Canadian
operations generated US$2.3 billion of revenues in 2006, and our total capital
expenditures in Canada were US$370 million. We paid US$409 million in taxes to
various levels of governments in the country.
Fourteen per cent of our US$21 billion operating assets are located in
Canada. Our planned capital expenditures in Canada for 2007 and 2008
(excluding any acquisition) total US$1.1 billion for 2007 and 2008.
Our Canadian operations include:
QIT-Fer et Titane Inc. (QIT)
- QIT is the world leader in titanium dioxide feedstocks.
- QIT operates the largest solid ilmenite deposit in the world, at Lake
Tio, 43 kilometres from Havre-Saint-Pierre.
- QIT operates a metallurgical complex at Sorel-Tracy, near Montréal,
where it converts ore into titanium dioxide concentrate.
- QIT employs approximately 1,900 people, all in Québec.
Iron Ore Company of Canada (IOC)
- Rio Tinto owns 59 per cent of IOC, Canada's largest iron ore producer.
Rio Tinto operates IOC.
- It has operations in Labrador City, Newfoundland and Labrador and in
Sept-Iles, Québec.
- IOC sells its product in the form of pellets (12.7 million tonnes in
2006) and in the form of concentrate production (3.4 million tonnes in
2006).
- IOC employs approximately 1,900 people, approximately 500 of whom are
in Sept-Iles with the remainder in Labrador City and Montréal, where
the head office is located.
Diavik Diamond Mines Inc. (Diavik)
- Rio Tinto owns 60 per cent of Diavik. It operates this business.
- Diavik Diamond Mines is based in Yellowknife, NWT. Its mine is located
on an island in a large sub-Arctic lake north east of Yellowknife. It
began production in January 2003.
- Diavik's mine plan includes open pit and underground mining of three
kimberlite ore bodies located under shallow waters of Lac de Gras.
- Diavik's reserves are 24.5 million metric tonnes of ore at 3.3 carats
per tonne (December 2006) with total mine life estimated at 16 to
22 years.
- Diavik employs 430 people.
Exploration and project development
- Wholly owned Rio Tinto Exploration conducts extensive exploration
programmes in Canada out of Vancouver, employing strong relationships
with Canada's junior exploration sector.
>>
For further information: Rio Tinto: Media Relations: London: Nick
Cobban, Office: +44 (0) 20 8080 1305, Mobile: +44 (0) 7920 041 003; Christina
Mills, Office: +44 (0) 20 8080 1306; France: Tara Hopkins, + 33 1 41 05 44 57;
Australia: Ian Head, Office: +61 (0) 3 9283 3620, Mobile: +61 (0) 408 360 101;
Canada/ USA: Louie Cononelos, Office: +1 514 239 4207, Mobile: +1 801 573
6737; Investor Relations: London: Nigel Jones, Office: +44 (0) 20 7753 2401,
Mobile: +44 (0) 7917 227 365; David Ovington, Office: +44 (0) 20 7753 2326,
Mobile: +44 (0) 7920 010978; Australia: Dave Skinner, Office: +61 (0) 3 9283
3628, Mobile: +61 (0) 408 335 309; Susie Creswell: Office: +61 (0) 3 9283
3639, Mobile: +61 (0) 418 933 792; questions@riotinto.com, www.riotinto.com;
High resolution photographs available at: www.newscast.co.uk; Alcan: Media
contact: Anik Michaud, Office: +1 514 848 8151, Media.relations@alcan.com;
Investor contact: Ulf Quellmann, Office : +1 514 848 8368,
Investor.relations@alcan.com
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