PARIS, November 30 /PRNewswire/ -- Rio Tinto Alcan and the Government of Cameroon announced today that they have signed an amendment to the letter of intent of October 25, 2005 providing additional access to water resources for the construction and operation of a new, 1,000-megawatt hydroelectric generating station at Songmbengué. This new energy capacity will facilitate the launch of technical and pre feasibility studies for a new greenfield aluminium smelter with potential production capacity of 400,000 tonnes/year.
"What we are seeing today are the results of the long and prosperous collaboration between Rio Tinto Alcan and the Government of Cameroon. This is a promising project that will have a positive impact for all stakeholders. I would also like to take the opportunity to congratulate and thank all of the Alucam employees for their exemplary work and unwavering commitment", said Jacynthe Coté, President and CEO of Rio Tinto Alcan Primary Metal.
Rio Tinto Alcan plans to carry out all of the required technical studies to evaluate the scope of this new greenfield project and expects to make decisions on proceeding by the end of 2009.
The original letter of intent dated October 25, 2005, was for an expansion and modernization of the Edea smelter which would increase its production capacity from 90,000 tonnes/year to 300,000 tonnes/year. The letter also called for the construction and operation of a 330-megawatt hydroelectric generating station at Nachtigal. This brownfield project continues to move forward as all of the technical studies have been completed and environmental authorizations have been obtained. An energy contract with the local electrical utility AES SONEL is currently being negotiated.
Rio Tinto Alcan and the Government of Cameroon have agreed to jointly study ways to accelerate construction of the required Lom Pangar dam. In addition to meeting the power needs of the projects, the dam will help boost Cameroon's global energy supply.
The Government of Cameroon and Rio Tinto Alcan each hold a 46.7% interest in Alucam. The facility employs 750 people. After opening in 1957, the plant has continuously updated its operations in order to stay at the cutting edge in its market and support the development of local communities.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London 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.
%B NM %C 1,3,21,20 %D Agreement with Cameroon government
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For further information, please contact: Rio Tinto Alcan Media Relations, Montreal, Bryan Tucker, Tel.: +1-514-848-8151, media.relations@alcan.com; Rio Tinto Alcan Media Relations, Paris, Chrystele Ivins, Tel.: +33-1-56-28-24-18, chrystele.ivins@alcan.com, Email: questions@riotinto.com
