Name of the project and location
Madagascar titanium dioxide project, Madagascar.

Project description
Rio Tinto has approved a multimillion-dollar greenfields titanium dioxide project in Madagascar. The project comprises a mineral sands operation, and a deep-water multi-use public port at Ehoala, near the town of Fort-Dauphin.

The ilmenite will be smelted at Rio Tinto’s facilities at Sorel, in Quebec. This will require an upgrade of storage and handling facilities as well as their associated ancillary services at the Sorel site.

The initial capacity of the operation will be 750 000 t/y of ilmenite. It will have an expected mine life of 40 years and will supply a new, high-quality chloride slag with 91% titanium oxide, to meet the long-term demand for titanium oxide by the pigment industry.

Value
$775-million. The mineral sands operation and the port will cost $585-million and the upgrade of Rio Tinto’s ilmenite facilities in Canada $190-million.

The Government of Madagascar has agreed to contribute $35-million to the establishment of the port, as part of its Growth Poles Project funded by the World Bank.

Duration
First production from the operation is expected in late 2008.

Breakdown of main contracts
Not stated.

Client
The project is being developed by QIT Madagascar Minerals, a Malagasy subsidiary of Rio Tinto (80%) and the Government of Madagascar (20%).

Latest developments
None stated.

Participants
None stated.

Construction materials
Not stated.

On budget and on time?
Too early to state.

Contact details for project information
Rio Tinto investor relations, Nigel Jones +44 (0) 20 7753 2401 or e-mail: nigel.jones@riotinto.com