Rio Tinto Alcan to Accelerate Pre-Feasibility Study for Second Phase of AP50 Pilot Plant in Saguenay, Quebec

MONTREAL, Canada, May 29 /PRNewswire/ -- Rio Tinto Alcan announced that it is going forward with an accelerated pre-feasibility study for two additional phases to the AP50 pilot plant for which preparatory work has begun in Saguenay, Quebec. The study will evaluate the addition of another 140,000 tonnes of capacity to the pilot plant. Representing a potential investment of between US$2 billion to US$2.5 billion, the expanded plant would become the platform for future technological developments. The study will also consider a possible subsequent expansion of up to a total of 400,000 tonnes.

"The AP50 pilot plant along with the proposed US$1 billion Alma, Quebec expansion and the US$2.5 billion modernisation project in Kitimat, British Columbia, represent significant investments in Quebec and Canada. They underline Rio Tinto Alcan's position as a leader in aluminium production and as the partner of choice in aluminium smelting technologies," said Dick Evans, chief executive of Rio Tinto Alcan. "In addition to consolidating Quebec's position as a major global aluminium hub, the overall investment program of up to US$6 billion in Canada will further strengthen Rio Tinto Alcan's suite of modern, low-cost aluminium smelters during a period of continuing strong global demand."

The first phase of the AP50 pilot plant will have 44 pots and an initial production of 60,000 tonnes of aluminium using the new generation of AP technology and powered exclusively by clean, renewable hydroelectricity.

The potential expansion of the Alma smelter announced in April 2008 would add 150,000 to 190,000 tonnes to its current production of slightly more than 400,000 tonnes. The Alma expansion is estimated at approximately US$1 billion and is expected to be completed in 2011.

"The construction of the AP50 pilot plant and its potential subsequent expansion, along with the expansion of Alma, would represent a substantial increase in our Quebec investment program announced in December 2006," said Jacynthe Côté, president and chief executive officer of the Rio Tinto Alcan Primary Metal business unit. "These projects demonstrate Rio Tinto Alcan's commitment to build sustainable competitive advantages for our shareholders and for Quebec and British Columbia."

The US$2.5 billion Kitimat modernisation would upgrade the existing 54-year old smelter using state-of-the-art AP technology and increase its aluminium production capacity by 125,000 tonnes using hydroelectric power from Rio Tinto Alcan's Kemano power station. It would also reduce greenhouse gas emissions by more than 40 per cent per year. First metal from the modernized smelter is expected in 2011.

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.

Forward-Looking Statements

This announcement includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Rio Tinto's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto's products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Rio Tinto's present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, 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 United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance 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.

Nothing in this announcement should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share.

Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its officers or any person named in this announcement with their consent or any person involved in the preparation of this announcement makes any representation or warranty (either express or implied) or gives any assurance that the implied values, anticipated results, performance or achievements expressed or implied in forward-looking statements contained in this announcement will be achieved.

For further information: 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; Rio Tinto Alcan Media Relations, Canada: Stefano Bertolli, +1-514-848-8151; Media Relations, US: Nancy Ives, Mobile: +1-619-540-3751; 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; Rio Tinto Alcan Media Relations, Saguenay: Claudine Gagnon, +1-418-699-4005; 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)7920-010-978; Investor Relations, North America: Jason Combes, Office: +1(0)801-685-4535, 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)7-3867-1068, Mobile: +61(0)439-102-811; questions@riotinto.com; http://www.riotinto.com; http://www.riotinto.com/riotintoalcan/