GLOBAL SEARCH FOR GOLD — Rio Tinto’s gold output on the rise

With interests in several mines around the world, Rio Tinto (RTP-N) produced more than 1 million oz. gold during the first half of 1997, up 15% from the comparable period in 1996.

The company says its attributable gold production increased as a result of three factors: higher grade and throughput at the Kelian mine in Indonesia; startup of the Pipeline project in Nevada; and a higher level of byproduct gold from copper mines.

The company notes that development of the Lihir gold project in Papua New Guinea proceeded on schedule and that the first gold from the oxide ore was produced in May. Commissioning of the sulphide ore-processing facilities began in August.

Rio Tinto is expanding the Morro de Oura mine in Brazil, with completion expected by year-end. An engineering program at Kelian provided access to additional reserves, thereby extending the mine life.

Rio Tinto reported that its copper and gold projects contributed US$262 million in earnings to its bottom line during the first half of 1997, which represents a 38% increase over results achieved a year earlier.

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