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Bechtel Signs $200M Agreement for Kitimat

SAN FRANCISCO, California - July 11, 2008 Bechtel today announced it signed a $200 million engineering, procurement, and construction management agreement with Rio Tinto Alcan for the Kitimat Smelter modernization project in Kitimat, British Columbia.

"Bechtel is honored to be selected for this project," said Andy Greig, president of Bechtel Mining & Metals. "This is an exciting opportunity for us and we look forward to being a part of Rio Tinto plans for the future."  
 “Rio Tinto Alcan is pleased to announce the signing of this contract, one more critical step towards the realization of the Kitimat project. Bechtel brings together a unique combination of expertise, world-wide presence, and project experience,” said Jacynthe Côté, president and chief executive officer, Primary Metal, Rio Tinto Alcan.

The proposed $2.5 billion Kitimat Modernization Project would increase production capacity at the smelter by 40 percent, taking it up to 400,000 tons per year and increase Rio Tinto annual global primary aluminum production capacity by more than 3 percent. This will make Kitimat not only one of Rio Tinto largest wholly owned smelters, but also one of the three largest in North America. Kitimat's aluminum production capacity will increase by 125,000 tons using clean and renewable hydroelectric power from the Kemano power station and also reduce greenhouse gas emissions by more than 40 percent per year. First metal from the modernized smelter is expected in 2011.

For more information about the project, read the Rio Tinto Alcan press release.

ABOUT RIO TINTO
Rio Tinto is a leading international mining group headquartered in the United Kingdom, combining Rio Tinto plc, a London 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 aluminum, 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. For more information about Rio Tinto visit www.riotinto.com.
 

About Bechtel

Bechtel is one of the most respected global engineering, construction, and project management companies. Together with our customers, we deliver landmark projects that foster long-term progress and economic growth. Since 1898, we’ve completed more than 25,000 extraordinary projects across 160 countries on all seven continents. We operate through four global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals. Our company and our culture are built on more than a century of leadership and a relentless adherence to our values, the core of which are safety, quality, ethics, and integrity. These values are what we believe, what we expect, what we deliver, and what we live.  www.bechtel.com