Clermont Coal Mine to proceed

Rio Tinto PLC
09 January 2007



Clermont Coal Mine to proceed


Rio Tinto and its joint venture partners have approved the development of the
US$750 million (A$950 million) Clermont Mine, in Central Queensland, located 15
kilometres south east of Rio Tinto's Blair Athol Mine.



Rio Tinto chief executive Energy, Preston Chiaro said the Clermont Mine will be
brought into production to replace the highly successful Blair Athol Mine,
taking advantage of its existing infrastructure and market position.



'Even during this current time of pressure on capital projects, the Clermont
Mine is a very attractive investment and will operate in the lowest cost
quartile of Australian thermal coal producers,' Mr Chiaro said.



'When completed, the Clermont Mine will produce 12.2 million tonnes of high
quality thermal coal each year, supplying Japanese power utilities and other
customers.  The mine is expected to have a life of about 17 years at this
production rate.  First coal shipments are expected in the second quarter of
2010, with full capacity being reached in 2013,' he said.



Rio Tinto Coal Australia's managing director Douglas Ritchie said the Clermont
mine will employ 400 people in the construction phase and approximately 380
during operations.



'As production at the Blair Athol Mine ramps down, Clermont will begin replacing
this capacity, ensuring a seamless transition for our customers,' Mr Ritchie
said.



Rio Tinto's current joint venture partners in the Clermont open cut mine
development are Mitsubishi Development Pty Ltd (34.9 per cent), and J-Power
Australia Pty Ltd (15 per cent).  JCD Australia Pty Ltd will take a 3.5 per cent
interest in the joint venture later this month, resulting in Mitsubishi
Development Pty Ltd's interest reducing to 31.4 per cent. The investment is
subject to obtaining all necessary governmental approvals.





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