Release: Rio Tinto: Tom Albanese visit to Indonesia

April 27, 2007 -- Tom Albanese, Rio Tinto’s new Chief Executive (effective from 1 May), will visit Jakarta on 30 April 2007 to review progress on the negotiation of a Contract of Work between Rio Tinto and the Government of Indonesia.

Negotiations are proceeding following the decision by a special meeting of Ministers chaired by Vice President Jusuf Kalla on 22 February 2007 to extend to Rio Tinto Indonesia a Contract of Work for the development of a large nickel mining and processing project in Sulawesi.

Based on this decision, final negotiations on the Contract have commenced. However, progress has been slower than expected. Over several years of protracted negotiations before the February meeting of Ministers, Rio Tinto has always maintained a consistent negotiating position seeking a level playing field among all investors, in the context of its desire to produce nickel metal in Indonesia.

 When negotiations are complete, the Contract of Work will be presented to the Indonesian Parliament in accordance with laws and regulations. It will be a landmark agreement for Indonesia, Sulawesi and the international investment community.

The project, which will incorporate strong principles of sustainable development and corporate social responsibility, will be designed to produce 46,000 tonnes of nickel metal per annum and create up to 5000 new jobs. The estimated capital cost of the project is $2 billion. (end of release)