Rio Tinto reaches agreement to sell interest in Greens Creek mine for US$750 million

12 February 2008

Rio Tinto has reached agreement on the first sale under its planned programme to divest at least US$15 billion of assets. The Group has signed an agreement to sell Kennecott Greens Creek Mining Company and Kennecott Juneau Mining Company, the subsidiaries holding its interests in the Greens Creek Mine in Alaska, to an affiliate of Hecla Mining Company.

Greens Creek is a silver, gold, zinc and lead underground mine and concentrator facility on Admiralty Island near Juneau. It is currently a joint venture between a Rio Tinto Kennecott subsidiary (70.3 percent) and a Hecla subsidiary (29.7 percent).

The sale price is US$750 million. The price comprises a cash component of US$700 million and the balance in Hecla common stock. Closing is subject to customary conditions, including expiration of the waiting period under the Hart-Scott-Rodino Act.

“The sale of our interests in the Greens Creek Mine is a very positive first step towards our target of realising asset sales of US$10 billion in 2008,” said Guy Elliott, Chief Financial Officer of Rio Tinto.

Bret Clayton, Rio Tinto’s Copper Product Group Chief Executive said, “Hecla Mining has for a long time been our joint venture partner and already has a solid understanding of the mine, the employees, the community and the State. Hecla is well placed to assume operation of the mine.”

In November 2007, Rio Tinto announced the results of its overall strategic review of the company’s asset portfolio following its acquisition of Alcan. Options are also being explored to divest Rio Tinto Energy America (coal), Rio Tinto Minerals’ talc business, Rio Tinto Alcan Packaging, Rio Tinto Alcan Engineered Products, Rio Tinto’s interest in the Cortez gold mine in Nevada, Rio Tinto’s Northparkes copper mine in Australia and Rio Tinto’s Sweetwater (USA) and Kintyre (Australia) uranium assets.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE 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 aluminium, 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.

About Hecla Mining Company

Hecla Mining Company, headquartered in Coeur d’Alene, Idaho, mines, processes and explores for silver and gold in the United States, Venezuela, and Mexico. A 117-year-old company, Hecla has long been well-known in the mining and world financial markets as a quality producer of silver and gold. Hecla’s common and preferred shares are traded on the New York Stock Exchange under the symbols HL, HL-PrB, and HL-PrC.