Rio Tinto Alcan to Accelerate Pre-Feasibility Study for Second Phase of AP50 Pilot Plant in Saguenay, Quebec

MONTREAL, Canada, May 29/PRNewswire/ -- Rio Tinto Alcan announced that it is going forward with an accelerated
pre-feasibility study for two additional phases to the AP50 pilot plant for
which preparatory work has begun in Saguenay, Quebec. The study will evaluate
the addition of another 140,000 tonnes of capacity to the pilot plant.
Representing a potential investment of between US$2 billion to US$2.5
billion, the expanded plant would become the platform for future
technological developments. The study will also consider a possible
subsequent expansion of up to a total of 400,000 tonnes.

"The AP50 pilot plant along with the proposed US$1 billion Alma, Quebec
expansion and the US$2.5 billion modernisation project in Kitimat, British
Columbia, represent significant investments in Quebec and Canada. They
underline Rio Tinto Alcan's position as a leader in aluminium production and
as the partner of choice in aluminium smelting technologies," said Dick
Evans, chief executive of Rio Tinto Alcan. "In addition to consolidating
Quebec's position as a major global aluminium hub, the overall investment
program of up to US$6 billion in Canada will further strengthen Rio Tinto
Alcan's suite of modern, low-cost aluminium smelters during a period of
continuing strong global demand."

The first phase of the AP50 pilot plant will have 44 pots and an initial
production of 60,000 tonnes of aluminium using the new generation of AP
technology and powered exclusively by clean, renewable hydroelectricity.

The potential expansion of the Alma smelter announced in April 2008 would
add 150,000 to 190,000 tonnes to its current production of slightly more than
400,000 tonnes. The Alma expansion is estimated at approximately US$1 billion
and is expected to be completed in 2011.

"The construction of the AP50 pilot plant and its potential subsequent
expansion, along with the expansion of Alma, would represent a substantial
increase in our Quebec investment program announced in December 2006," said
Jacynthe C=F4t=E9, president and chief executive officer of the Rio Tinto Alcan
Primary Metal business unit. "These projects demonstrate Rio Tinto Alcan's
commitment to build sustainable competitive advantages for our shareholders
and for Quebec and British Columbia."

The US$2.5 billion Kitimat modernisation would upgrade the existing
54-year old smelter using state-of-the-art AP technology and increase its
aluminium production capacity by 125,000 tonnes using hydroelectric power
from Rio Tinto Alcan's Kemano power station. It would also reduce greenhouse
gas emissions by more than 40 per cent per year. First metal from the
modernized smelter is expected in 2011.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the
UK, combining Rio Tinto plc, a London and NYSE 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.

Forward-Looking Statements

This announcement includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements other
than statements of historical facts included in this announcement, including,
without limitation, those regarding Rio Tinto's financial position, business
strategy, plans and objectives of management for future operations (including
development plans and objectives relating to Rio Tinto's products, production
forecasts and reserve and resource positions), are forward-looking
statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Rio Tinto, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions
regarding Rio Tinto's present and future business strategies and the
environment in which Rio Tinto will operate in the future. Among the
important factors that could cause Rio Tinto's actual results, performance or
achievements to differ materially from those in the forward-looking
statements include, among others, levels of actual production during any
period, levels of demand and market prices, the ability to produce and
transport products profitably, the impact of foreign currency exchange rates
on market prices and operating costs, operational problems, political
uncertainty and economic conditions in relevant areas of the world, the
actions of competitors, activities by governmental authorities such as
changes in taxation or regulation and such other risk factors identified in
Rio Tinto's most recent Annual Report on Form 20-F filed with the United
States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished
to the SEC. Forward-looking statements should, therefore, be construed in
light of such risk factors and undue reliance should not be placed on
forward-looking statements. These forward-looking statements speak only as of
the date of this announcement. Rio Tinto expressly disclaims any obligation
or undertaking (except as required by applicable law, the City Code on
Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the
Disclosure and Transparency Rules of the Financial Services Authority and the
Listing Rules of the Australian Securities Exchange) to release publicly any
updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tinto's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.

Nothing in this announcement should be interpreted to mean that future
earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily
match or exceed its historical published earnings per share.

Subject to the requirements of the Takeover Code, none of Rio Tinto, any
of its officers or any person named in this announcement with their consent
or any person involved in the preparation of this announcement makes any
representation or warranty (either express or implied) or gives any assurance
that the implied values, anticipated results, performance or achievements
expressed or implied in forward-looking statements contained in this
announcement will be achieved.

For further information: Media Relations, London: Christina Mills,
Office: +44(0)20-7781-1154, Mobile: +44(0)7825-275-605; Nick Cobban,
Office: +44(0)20-7781-1138, Mobile: +44(0)7920-041-003; Rio Tinto Alcan Media
Relations, Canada: Stefano Bertolli, +1-514-848-8151; Media Relations, US:
Nancy Ives, Mobile: +1-619-540-3751; Media Relations, Australia: Ian Head,
Office: +61(0)3-9283-3620, Mobile: +61(0)408-360-101; Amanda Buckley, Office:
+61(0)3-9283-3627, Mobile: +61(0)419-801-349; Rio Tinto Alcan Media
Relations, Saguenay: Claudine Gagnon, +1-418-699-4005; Investor Relations,
London: Nigel Jones, Office: +44(0)20-7753-2401, Mobile: +44(0)7917-227-365;
David Ovington, Office: +44(0)20-7753-2326, Mobile: +44(0)7920-010-978;
Investor Relations, North America: Jason Combes, Office: +1(0)801-685-4535,
Mobile: +1(0)801-558-2645; Investor Relations, Australia: Dave Skinner,
Office: +61(0)3-9283-3628, Mobile: +61(0)408-335-309; Simon Ellinor, Office:
+61(0)7-3867-1068, Mobile: +61(0)439-102-811; questions@riotinto.com;
http://www.riotinto.com;

Source: Rio Tinto Alcan

For further information: Media Relations, London: Christina Mills, Office: +44(0)20-7781-1154, Mobile: +44(0)7825-275-605; Nick Cobban, Office: +44(0)20-7781-1138, Mobile: +44(0)7920-041-003; Rio Tinto Alcan Media Relations, Canada: Stefano Bertolli, +1-514-848-8151; Media Relations, US: Nancy Ives, Mobile: +1-619-540-3751; Media Relations, Australia: Ian Head, Office: +61(0)3-9283-3620, Mobile: +61(0)408-360-101; Amanda Buckley, Office: +61(0)3-9283-3627, Mobile: +61(0)419-801-349; Rio Tinto Alcan Media Relations, Saguenay: Claudine Gagnon, +1-418-699-4005; Investor Relations, London: Nigel Jones, Office: +44(0)20-7753-2401, Mobile: +44(0)7917-227-365; David Ovington, Office: +44(0)20-7753-2326, Mobile: +44(0)7920-010-978; Investor Relations, North America: Jason Combes, Office: +1(0)801-685-4535, Mobile: +1(0)801-558-2645; Investor Relations, Australia: Dave Skinner, Office: +61(0)3-9283-3628, Mobile: +61(0)408-335-309; Simon Ellinor, Office: +61(0)7-3867-1068, Mobile: +61(0)439-102-811; questions@riotinto.com; http://www.riotinto.com;

2008-05-29 17:55:31 0373398 PRNEWSWIRE