Rio Tinto extends Cu exploration JV in Chile with Codelco

Rio Tinto has signed two more joint-venture agreements with the world`s largest copper producer Codelco for copper exploration in Chile.

The agreements with Codelco`s subsidiary CCM Los Andes include the exploration of the Estel and Paloma prospects in northern Chile and follow the first joint agreement signed between the two companies in January (MB Jan 24).

Rio Tinto has the option to acquire a 55% interest in each prospect through stand-alone exploration investments of $20 million. The agreements include provisions to increase Rio Tinto`s ownership to 60%.

"We are very pleased to enter into these additional agreements which strengthen Rio Tinto`s relationship with Codelco and provide access to some of the most prospective copper tenement in the world," Rio Tinto Copper ceo, Bret Clayton, said in a statement on Tuesday.

The Esteli property adjoins the Exploradora mine, which was subject to the first joint venture agreement between Rio Tinto and Codelco, while the Paloma property is located close to the copper mines at Spence and El Tesoro.

An exploration drilling programme is currently underway at Exploradora and will be followed by drilling at Paloma this year.

Rio Tinto has several additional copper exploration properties under title which are scheduled for drill-testing later this year.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: September 2, 2008