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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: Flea who wrote (1767)	1/20/2000 6:00:00 PM
From: Diamond Daze	Read Replies (1) \| Respond to of 2402

(Applies to: RTP RTOLY) Diavik Diamonds Project LONDON, Jan 20, 2000 (BUSINESS WIRE) -- Rio Tinto plc (NYSE: RTP) the following press release was issued today in Canada by Diavik Diamond Mines Inc. Diavik Diamond Mines Inc. (DDMI) announced today that in light of the decision by the Federal Government's Department of Indian Affairs and Northern Development (DIAND) not to issue an interim land use permit for activities in preparation for the Diavik Diamonds Project, DDMI has suspended all work activities at the project site. Effective immediately, DDMI is placing all equipment and facilities on care and maintenance, and will begin to repatriate all non-essential employees from the site. The impact of these developments on the project is presently indeterminate, but given the very short winter road window available to transport materials to the Diavik site, the project is at substantial risk of being delayed by at least one year. Following the Federal Government's approval of the project's environmental review on November 3, 1999, DDMI approached DIAND for the purposes of amending its existing land use permit to allow preparation of lay-down areas for receipt of fuel, materials and equipment to be transported to site on the 2000 winter road. Staging of these materials would allow the company to be in a position to commence construction activities in the second quarter 2000 following the expected completion of the regulatory phase which will permit the project to proceed following approval by the investors. DDMI continues to be of the opinion that the interim activities planned for this current period could be conducted within its existing land use permit framework. The activities in question include, among other things, placement of approximately 40,000 cubic metres of rock and gravel fill for the extension of the Diavik's existing temporary camp and fuel storage facilities. By way of comparison, under existing land use permits, DDMI has placed more than 70,000 cubic metres of rock and gravel fill over the past five years in erecting its existing facilities and 1300-foot airstrip at the Diavik site. DDMI will continue to negotiate in good faith with DIAND to conclude the agreements and regulatory approvals required for the project to proceed. DDMI is encouraged that Natural Resources Canada has recently issued the blasting permit required for the project activities in this interim period. DDMI remains hopeful that a solution can be found through continuing discussions with DIAND that will permit the company to re-establish its workforce at the project site to allow it to fully utilize the 2000 winter road as planned. Note to Editors: The Diavik Diamonds Project is an unincorporated joint venture between DDMI holding 60% and Aber Diamond Mines Ltd. holding 40%. DDMI is a wholly owned subsidiary of Rio Tinto. The Diavik Diamonds Project is a Can.$1.3 billion plan to mine diamonds over a 20-year mine life from four pipes. The recent Federal Government approval of the mining project concluded that the operation would generate no significant adverse environmental effects. Copyright (C) 2000 Business Wire. All rights reserved. Distributed via COMTEX. -0- CONTACT: Rio Tinto Media Relations John Hughes +44 207 753 2331 or Gavin Anderson & Company Investor Relations Krista Ruhe 212/515-1900