QIT Madagascar Minerals S.A.

In the late 1980s and early 1990s, Rio Tinto Exploration identified a major mineral sands resource in the Fort-Dauphin region of Madagascar. It is made up of three adjacent deposits known as Mandena, Petriky and Sainte-Luce. At the same time, it began conducting preliminary social and environmental studies.

In the mid-1990s, QMM (QIT Madagascar Minerals) set up a full time social and environmental programme. A legal and fiscal framework agreement between QMM and the Government of Madagascar was concluded in 1998 after several years of negotiations. This was ratified by the Malagasy National Assembly and promulgated into law by the president of Madagascar.

First ilmenite production from the Madagascar this operation is expected in late 2008 and the initial capacity will be 750,000 tonnes per year.

QMM's relationship with QIT, Rio Tinto and Rio Tinto Minerals

Rio Tinto owns 80 per cent of QMM (QIT Madagascar Minerals). The Madagascar Government owns the other 20 per cent.

QMM is part of Rio Tinto Minerals, Rio Tinto's marketing division specialising in industrial minerals borates, titanium dioxide, talc and salt.

QIT (QIT-Fer et Titane) is a wholly owned subsidiary of Rio Tinto, based in Quebec, Canada. QIT's metallurgical complex in Sorel-Tracy, Quebec is being upgraded as part of the Madagascar mineral sands project. QMM's ore will be shipped to Quebec, and processed into high quality titanium dioxide.