18 July 2008

Rio Tinto and Ngarluma agreement to clear the way for economic development in the Pilbara

Rio Tinto and the Ngarluma people have reached an initial agreement over the proposed expansion of mining operations in the Pilbara, clearing the way for a comprehensive new Indigenous Land Use Agreement (ILUA) for the area.

The binding letter of agreement between Rio Tinto and the Ngarluma Aboriginal Corporation, representing the Ngarluma people on whose country much of the expansion will be based, will provide economic development opportunities for the native title holders alongside the expansion of iron ore mining infrastructure.

The agreement is the necessary first step towards a registered ILUA, providing for specific native title holder support for rail duplication in the Cape Lambert to Dampier area, the expansion of the Cape Lambert port and a new power station near Karratha, including transmission lines and substations.

These works are a critical part of Rio Tinto's drive to expand its annual Pilbara capacity to 320 million tonnes by 2012, and will not involve a significant increase in the footprint of operations on Ngarluma country.

Rio Tinto Iron Ore vice-president of organisational resources, Joanne Farrell said: "This is a wonderful outcome for both Rio Tinto and the Ngarluma people, on whose country we have been operating for more than 40 years. This places our relationship on a sound and mature basis and we look forward to working together on the bright future we share."

Jill Churnside, chairwoman of the Ngarluma Aboriginal Corporation, said: "Our relationship is part of the new language that mining and industry must speak. We applaud Rio Tinto for forging ahead of others to be an industry leader in native title negotiations. We want to acknowledge the elders who have passed away, because it is their strength and dignity which allows us to be here today."

Under the agreement, Ngarluma will provide support for the Rio Tinto's existing operations, its future expansions beyond 320 million tonnes per annum and necessary infrastructure and government approvals. It requires Rio Tinto to work closely with Ngarluma people on all cultural heritage matters.

The agreement provides substantial funding for the community which will be managed solely by the Ngarluma Aboriginal Corporation. This will provide benefits for all Ngarluma members and enable the community to develop programmes to redress disadvantages experienced by Aboriginal people. The final agreement will provide for education, training and employment opportunities for Ngarluma people and the opportunity for commercial ventures such as business contracting.
 
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.



Rio Tinto and Ngarluma agreement to clear the way for economic development in the Pilbara [PDF: 72 KB]