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Press Release

Rio Tinto Alcan confirmed as third major pillar of Rio Tinto Group

12 March 2008

  • Pro forma 2007 underlying EBITDA of $4,813 million for Primary Metal and Bauxite & Alumina, making Rio Tinto Alcan the third major pillar of Group EBITDA along with iron ore and copper.
  • Pro forma 2007 underlying earnings for Primary Metal and Bauxite & Alumina of $2,092 million, representing 23 per cent of Rio Tinto’s pro forma underlying earnings before corporate items and interest.
  • Pro forma capital expenditure for Primary Metal and Bauxite & Alumina of $2,296 million in 2007, reflecting continuing investment in value adding growth projects.
  • Pro forma share of production of 4.2 million tonnes of aluminium, 8.5 million tonnes of alumina and 32.0 million tonnes of bauxite in 2007.
  • Significant earnings momentum anticipated in 2008 with each 10 c/lb movement in the average annual aluminium price from the 2007 level of 120c/lb expected to change Rio Tinto Alcan’s underlying earnings by $620 million. 2008 underlying earnings are also expected to be affected by exchange rate movements with a 10 US cent movement in the Canadian dollar rate expected to impact full year underlying earnings by $150 million. Rising energy, pitch, coke, oil and freight costs are also expected to partly offset any gain from higher LME prices
  • Bauxite reserves totalling 1,387 million tonnes of recoverable mineral (Rio Tinto share) at the end of 2007 compared with 1,193 million tonnes at the end of 2006. The 2007 numbers incorporate the Rio Tinto assets and Alcan assets combined under the Rio Tinto Alcan name for the first time. Detailed bauxite reserves and resources data have been included within this release on pages 5 and 6.


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