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NEWS RELEASES

For Immediate Release
August 20, 2002 |
Susan Keefe
661-287-5484
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BORAX TO BUILD NEW BORIC ACID PLANT IN ARGENTINA
$US2.6 million investment reinforces leading boric acid supplier's ability to meet rising demand
VALENCIA, CA - Rio Tinto Borax, the world's leading supplier of refined borates, announced plans to invest $US2.6 million to construct a new boric acid plant adjacent to its current refinery operations in Campo Quijano, Argentina. Construction is scheduled to begin this month and the plant is projected to begin producing boric acid in 2003.
The company recently announced a 12 percent productivity increase and a seven percent reduction in fresh water usage at its primary boric acid plant in Boron, California, a plant that is reaching capacity. Borax is building its new boric acid plant to meet rising global demand fueled by regional economic recovery, growth in the textile fiberglass and borosilicate glass industries, and success in converting customers from raw mineral feed to refined boric acid, according to David Peever, Borax's Chief Commercial Officer.
"While we will continue to invest in improving efficiency and lowering our environmental impact at our current plant in California, we are also investing in additional boric acid capacity in Argentina - an investment that should pay off for our global customers, as well as local employees and communities. Customers rely on the unparalleled quality and supply reliability of Borax's boric acid because it translates into more efficient processes and a higher quality end product," said Peever.
Borax Argentina, the company's primary South American business, operates Argentina's largest open pit mine in Tincalayu, Salta, as well as mines in Sijes, and Porvenir, and refinery facilities in Campo Quijano. The new boric acid plant will be constructed adjacent to existing refineries and use tailings from ulexite concentration operations as feedstock.
Borax Argentina's boric acid plant is part of an overall strategy to improve productivity and better serve South American markets, according to Managing Director Alberto Trunzo. The company has invested more than $US2.4 million in recent years to upgrade equipment, including installing new furnaces, centrifuges and a magnetic concentration plant to both improve efficiency and lower environmental impact.
"Our workforce of nearly 180 men and women has excelled at increasing productivity, while improving safety and lowering emissions. The company's decision to construct a new boric acid plant is a tribute to their ability to maintain Borax Argentina's competitive position in South America. We are confident that our existing workforce will be able to operate the new boric acid plant while maintaining their standard for continuous improvement in the rest of our operations," said Trunzo.
About Borax Argentina
Borax Argentina mines tincal, ulexite, colemanite, hydroboracite and kernite, and refines products primarily for the South American agriculture and ceramics industries. The first local mining operation to achieve ISO 14001 certification of its environmental management system, Borax Argentina has implemented programs to control dust emissions, improve waste disposal, recycle oil and pallets, and reduce water consumption. The company has also achieved ISO 9002 certification of its Quality Management Systems at its Sijes and Campo Quijano refineries
Borax Argentina holds monthly meetings to foster communication and coordination among institutions that address education, health, nutrition and other issues of importance to the community. As a result of this collaborative approach, Borax Argentina actively promotes education through scholarships, book contributions, and work training; and promotes community health through support for child care, nutrition, and drug and alcohol treatment programs. The company was instrumental in constructing a primary school and donating materials for a community assembly room in Campo Quijano. Borax Argentina also donates food, shoes, medicine, sports equipment and agricultural equipment for community orchards and vegetable gardens to help alleviate the difficult economic situation facing the community and country.
About Borax's Boric Acid
Borax is the world's leading boric acid supplier. Key markets include:
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textile fiberglass (35%). The expceptional purity and high boron content of Borax products contributes to greater efficiency in the manufacturing process.
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frits and ceramics (15%). Borax has pioneered the use of boric acid in tile body manufacture to lower energy use and reduce raw material consumption.
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borosilicate glass (8%). Borates are an essential ingredient in heat-resistant glass, and lower energy consumption in both their production and use.
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cellulose insulation (5%). Borates are used to impart flame retardancy.
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distributors (16%). Borates are sold into a wide range of applications including container board, corrosion inhibitors and lubricants.
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Other uses (21%) including wood treatments that provide builders and homeowners a safe, durable, affordable way to protect homes from wood-destroying organisms.
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