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Press Release

Rio Tinto to enter nickel market with US$300 million Eagle Mine commitment

17 December 2007

Rio Tinto is to invest US$300 million in the development of Eagle, a high-grade nickel and copper mine in Michigan, USA. Eagle will be the only primary nickel mine in the US and first production is expected to begin in late 2009. Eagle is projected to deliver 16,000 tonnes of nickel per year over seven years until 2016. It will also produce valuable co-products of copper, platinum, palladium and cobalt.

Rio Tinto is also in final contract negotiation to develop a nickel mine at Sulawesi in Indonesia, with an initial operation of 46,000 tonnes per year with first production commencing by 2015. There is additional potential at Sulawesi of a similar size.

Rio Tinto Copper Group Chief Executive, Bret Clayton said, "Eagle gives Rio Tinto a valuable opportunity to enter the market for nickel, a key input into stainless steel, demand for which is rising strongly led by the development of new infrastructure in developing economies, as well as rising demand for consumer products and the development of associated processing plant and equipment.

"Eagle is just one of many projects that will add to Rio Tinto’s growth and value. It is a 4.1 million tonne (1) high-grade nickel resource (3.6% nickel, 2.9% copper) in a highly prospective region for additional nickel discoveries. Our exploration team discovered Eagle in 2002 and we are now reviewing over 450,000 acres of mineral title we have in the area. Our focus is on six further adjacent prospects that may have the potential to extend significantly the mine life at current planned production rates."

A two-year project construction phase will get underway in 2008, upon receipt of additional approvals expected in 2008. Three required permits were granted on 14 December 2007. Eagle’s mine permit is the first issued by the State of Michigan under the state’s 2004 nonferrous metallic mining law, considered among the most stringent in the US. The project is located in northwest Marquette County near the City of Marquette.



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