Dec 17, 2008
17 December 2008: Rio Tinto Alcan is revising its participation from an equity partner in the integrated aluminum “mine-to-metal” project in Saudi Arabia to the role of working with Saudi Arabian Mining Company (Ma'aden) towards project development through a smelter technology transfer agreement and a cooperation agreement.
“Going forward, our partnership will be one of cooperation rather than one of equity ownership,” said Dick Evans, Chief executive, Rio Tinto Alcan. “The recent global financial and economic crisis has changed Rio Tinto’s outlook for project development throughout the world and, under these circumstances, Rio Tinto Alcan has elected to not participate as an equity partner in this project.”
Rio Tinto Alcan is in discussions with Ma'aden to potentially provide technology support for the smelter project as well as general advice and support. A cooperation agreement will cover secondment of personnel, interim supply of alumina to the smelter, metal offtake, and other support activities.
Although Rio Tinto Alcan will not be an equity partner at this stage of the project, the parties have agreed to consider the possibility of future participation at a later date, as well as ongoing technical and commercial support.
Ma'aden is reviewing its position regarding project development options and expects to realise savings through scope changes and re-estimation of project costs.
About Ma’aden
Ma'aden was established as a Saudi Arabian joint stock company in March 1997 to facilitate the development of Saudi Arabia’s non-petroleum mineral resources and to diversify the Kingdom’s economy away from the petroleum and petrochemical sectors. Ma’aden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. In July 2008 Ma’aden offered 50% of the company’s shares for subscription in a successful SR 9.25 billion IPO. Ma’aden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health and safety, environmental and social issues.
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.
Maaden
Aqeel Alonazi
Ma'aden Corporate Communications Department
T: +966 55 3063813
E: alonaziam@maaden.com.sa
Rio Tinto Alcan Media Relations
Stefano Bertolli
Media Relations
T: +1 514 848 8151
M: +966 50 5271055
E: stefano.bertolli@riotinto.com