Rio Tinto increases capital management programme to US$7 billion

Friday, 27 October 2006

Rio Tinto has announced today that it will increase its capital management programme to US$7 billion. This is US$3 billion more than the previously announced capital management programme for 2006 and 2007 of US$4 billion. The additional cash return will be made through the buyback of shares between now and the end of 2007.

Rio Tinto’s finance director Guy Elliott said, “In today’s favourable markets, the Group’s high quality assets are generating record cash flows. This allows us to make substantial investments in the growth of the business and to return cash to shareholders. Our balance sheet remains strong, and we are pleased to make this increase in our capital management programme. Of course the programme remains subject to market conditions.”

Under the current US$4 billion capital management programme, US$1.5 billion was returned to shareholders on 6 April 2006 in the form of a special dividend. Of the remaining US$2.5 billion of that programme, US$1.9 billion has been returned to shareholders through the buyback of Rio Tinto plc shares in the London market, leaving an outstanding balance of US$600 million to be completed.