Operations & financial report
Bauxite & aluminia projects
Weipa (Rio Tinto: 100 per cent)
A 3.5 million tonne per annum expansion of the group's Weipa bauxite mine is currently under way. The expansion is scheduled to be completed by late 2009 and is expected to cost around US$30 million. The expansion is expected to further leverage the world class Weipa bauxite deposit.
Gove (Rio Tinto: 100 per cent)
As of the date of Rio Tinto's acquisition of Alcan, a 1.8 million tonnes per annum expansion of the Gove alumina refinery in Australia was nearing completion, with certain components of the expansion already commissioned and being brought into production. The expansion cost is US$2.3 billion, and is expected to bring the Gove refinery to a total capacity of 3.8 million tonnes per annum, making it one of the largest refineries in the world. Nameplate capacity is expected to be reached by the end of 2008. Following completion of the expansion, the Gove refinery is expected to operate in the second quartile of the industry cash cost curve.
Yarwun (Rio Tinto: 100 per cent)
On 3 July 2007, Rio Tinto approved an expansion of the Yarwun alumina refinery
in Gladstone, Queensland in order to more than double annual production, increasing
output by two million tonnes. First shipments are expected in the second half
of 2010. The expansion is expected to cost around US$1.8 billion. Work commenced
on the expansion in the third quarter and is expected to take about three years
to complete. First shipments are expected in the second half of 2010. All government
approvals have been granted. Once completed, the refinery is expected to be
positioned in the second quartile of the industry cost curve.
Sao Luis (Alumar) (Rio Tinto: ten per cent)
A 2.1 million tonnes per annum expansion of the Alumar refinery in Brazil (Rio
Tinto share 210,000 tonnes) is under way and progress on construction is approximately
35 per cent advanced as at 31 December 2007. The project will cost an estimated
US$200 million (Rio Tinto's share). Alumar is expected to be positioned in
the first quartile of the industry operating cost curve once construction is
completed.
Guinea (Rio Tinto: 50 per cent)
A 1.6 million tonnes per annum greenfield alumina refinery project in Guinea is being evaluated in partnership with Alcoa Inc. The project is currently at the pre feasibility stage and it is expected that the sponsors will make a decision in the first half of 2008 with regard to undertaking detailed feasibility studies. It is expected that the refinery would be positioned in the first quartile of the industry cost curve.
Ghana (Rio Tinto: 51 per cent)
A 1.5 million tonnes per annum greenfield alumina refinery project is under consideration in partnership with the Government of Ghana. The project is currently at the conceptual study stage and it is expected that the sponsors will make a decision in the first half of 2008 with regard to undertaking a pre feasibility study. It is expected that the refinery would be positioned in the first quartile of the industry cost curve.
Madagascar (Rio Tinto: 51 per cent)
A 1.6 million tonnes per annum greenfield alumina refinery and associated bauxite mine is being considered in partnership with a Malagasy company. The project is currently at the conceptual study stage and it is expected that the sponsors will make a decision in the first half of 2008 with regard to undertaking a pre feasibility study. It is expected that the refinery would be positioned in the first quartile of the industry cost curve.
