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Partners Place HIsmelt Plant on 12-Month Maintenance Plan

03/27/2009 - Rio Tinto and its joint venture partners place their HIsmelt pig iron plant on a program of 12 months' care and maintenance to April 2010, due to depressed global pig iron prices and poor market outlook.

Rio Tinto and its joint venture partners have decided to place their HIsmelt pig iron plant in Kwinana, Western Australia, on a program of 12 months' care and maintenance to April 2010, due to depressed global pig iron prices and poor market outlook.
 

The Kwinana HIsmelt plant uses a unique direct smelting technology to smelt high-phosphorous iron ore fines and non-coking coal to produce a premium-grade iron product. It has operated in Western Australia since 2006.
 
The plant is owned by Rio Tinto (60%), Nucor Corp. (25%), Mitsubishi Corp. (10%) and Shougang Corp. (5%).
A core team of full-time employees representing a range of disciplines will be retained during the care and maintenance period to maintain the plant. The team also will work on intellectual property projects associated with the HIsmelt technology.

 
Employees not retained in the core team will be given the option of being considered for employment elsewhere in the Rio Tinto group.
 
“This is a tough decision, but unfortunately one that relates directly to the current market conditions and the uncertainty of a market recovery in the near term,” said Rio Tinto Iron Ore Chief Executive Sam Walsh.
 
“We retain every confidence in the viability of the HIsmelt technology, which is proven and successful, and we remain hopeful for an upswing in the market to enable a restart in the future.”
 
Rio Tinto, a leading international mining group headquartered in the U.K., combines Rio Tinto plc and Rio Tinto Limited. Rio Tinto's business is finding, mining, and processing mineral resources, with activities that are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.