Business NEWS

Rio Tinto has faith in Canadian operations but not in Australia says CEO Tom Albanese

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 29, 2008

Rio Tinto is to invest US$228 million in the construction of a new 225 megawatt high-efficiency turbine at Rio Tinto Alcan’s Shipshaw power station in Saguenay, Quebec, Canada. The project is expected to be completed in December 2012.

“This modernisation and upgrading of the Shipshaw power generating station underscores the importance we place on secure, competitively priced energy resources, which are key to realisation of the long term Quebec investment programme announced in December 2006,” said Tom Albanese, Chief executive officer of Rio Tinto, speaking at the Board of Trade of Metropolitan Montreal luncheon. “Rio Tinto remains committed to sustainable, value creating investments in Canada and the rest of the world.”

The Shipshaw power station is a major component of Rio Tinto Alcan’s extensive hydroelectric network, which has a total installed capacity of approximately 2,900 megawatts in Quebec.

Other projects in Quebec include the spent potlining facility completed in 2008 as well as Rio Tinto Alcan’s pilot plant using groundbreaking AP 50 smelting technology and a proposed expansion of its Alma smelter.
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.

In another news Statement issued by by Sam Walsh “Australia’s economic interests will be damaged by transfer of east coast infrastructure logjams to the Pilbara”

Rio Tinto is very disappointed by the Treasurer’s decision to allow third-party access to its infrastructure in the Pilbara.

Far from producing a clear benefit to Australia, the decision brings a significant risk of revenue loss to the national economy, resulting in a present-value cost to GDP of up to $30 billion. This is a cost the nation can ill-afford at this time of economic uncertainty.
Rio Tinto operates a fully integrated, highly complex system, increasingly using unique technology. A 1,300-kilometre rail network links 11 mines to three ports, where iron ore is blended to produce several products for sale to export markets.

Allowing third-parties access will impede this efficiency and reduce the tonnage that can be pushed through this system.
If the Pilbara railways become multi-user, future expansions will inevitably be more complex and difficult, and therefore delayed. We have already seen this occur on the east coast. This decision will reduce total tonnage exported using the system – not increase it – and therefore it is difficult to see how it can be in the national interest.

Tom Albanese
Chief executive

BS (Mineral Economics), MS (Mining Engineering). Age 50.

Appointments and election: Director of Rio Tinto plc and Rio Tinto Limited since March 2006. Tom was last elected by shareholders at the 2008 annual general meetings.

Skills and experience: Tom joined Rio Tinto in 1993 on Rio Tinto’s acquisition of Nerco and held a series of management positions before being appointed chief executive of the Industrial Minerals group in 2000, after which he became chief executive of the Copper group and head of Exploration in 2004. He took over as chief executive from Leigh Clifford with effect from May 2007.

External appointments (current and recent):
Director of Ivanhoe Mines Limited from 2006 to 2007
Director of Palabora Mining Company from 2004 to 2006
Member of the Executive Committee of the International Copper Association from 2004 to 2006

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