Landmark Labour Agreement Advances Rio Tinto Alcan Kitimat Modernization Project

    MONTREAL, Aug. 28 /CNW Telbec/ - Rio Tinto Alcan marked the signing of a
one-of-a-kind labour agreement with sixteen labour unions for the construction
of the Kitimat Modernization Project at a ceremony in Vancouver. This
agreement between the Kitimat Modernization Employer Association and the
unions facilitates access to the qualified British Columbia building trades
workforce, with joint commitments to local and First Nations hiring.
    "As these unions work together to provide the necessary skilled labour,
with an absolute commitment to safety, quality and environmental excellence,
our confidence in successful project execution is stronger than ever," said
Jean Simon, President, Primary Metal North America. "The tight construction
market has been a concern for the Kitimat Modernization Project, and this
agreement directly addresses that key issue as we go forward for final board
approval." The Kitimat Modernization Project is expected to go before the
Rio Tinto Board of Directors later this year.
    Brent Hegger, the project's Managing Director, added, "This agreement
contains all the fundamentals for sound site operations and excellent
relations with our all-important construction labour force. I couldn't be more
thrilled about this achievement that brings us one step closer to project
    Rio Tinto Alcan recently awarded Bechtel a contract to complete
engineering, procurement and construction management of the Kitimat
Modernization Project. The Kitimat Modernization Employer Association was
formed by Bechtel, contractors participating in the agreement, and a coalition
of Building Trades Unions including:

    - Construction and Specialized Workers' Union Local 1611 (Labourers)
    - International Association of Bridge, Structural, Ornamental and
      Reinforcing Ironworkers Union Local 97
    - International Association of Heat and Frost Insulators and Allied
      Workers Union Local 118
    - International Brotherhood of Boilermakers, Iron Ship Builders,
      Blacksmiths, Forgers & Helpers Local Lodge 359
    - International Brotherhood of Electrical Workers Union Local 993
    - International Brotherhood of Teamsters Union Local 213
    - International Union of Bricklayers & Allied Craft Workers Union Local 2
    - International Union of Operating Engineers Union Local 115
    - International Union of Painters and Allied Trades, District Council 38
    - Millwrights, Machine Erectors and Maintenance Union Local 2736
    - Operative Plasters' Cement Masons Union Local 919
    - Pile Drivers, Divers, Bridge, Dock and Wharf Builders Union Local 2404
    - Sheet Metal Workers International Association Union Local 280
    - Unite Here! British Columbia, Canada Union Local 40
    - United Association of Journeymen and Apprentices of the Plumbing and
      Pipefitting Industry of United States and Canada Union Local 170
    - United Brotherhood of Carpenters and Joiners of America- British
      Columbia Regional Council of Carpenters

    The Kitimat Modernisation Project will upgrade the facility using
state-of-the-art AP technology and increase its aluminium production capacity
while reducing greenhouse gas emissions. 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.

For further information:

For further information: Rio Tinto Alcan, Primary Metal BC: Colleen
Nyce, (250) 639-8760,; Rio Tinto Alcan, Montreal:
Stefano Bertolli, (514) 848-8151,;

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