VALENCIA, CA – Rio Tinto Borax – the world’s leading supplier of refined borates and largest boric acid supplier – today announced plans to increase its boric acid production capacity by 90,000 to 100,000 metric tons by 2005. This increase will bring the company’s total global boric acid production to more than 360,000 metric tons per year.

Borax’s primary boric acid plant in Boron, California, currently produces more than 260,000 metric tons per year; a record rate resulting from successful continuous improvement exercises and incremental capital improvements. Additional engineering and equipment upgrades will increase capacity by 20,000 metric tons by the end of this year, and another 70,000 – 80,000 metric tons by 2005.

This capacity expansion is designed to meet growing global demand for boric acid. Demand increases are driven by modest regional economic recovery, growth in existing markets, and promising development of new applications for boric acid. In established markets such as reinforcement fiberglass and ceramic frits, manufacturers are increasingly converting from mineral feedstock to refined boric acid – or increasing boric acid concentrations – to lower energy use and improve product performance.

Borax maintains its competitive advantage through consistent product quality and supply reliability, as well as the company’s unparalleled knowledge of borate science and technology. Borax leverages this expertise to support customers’ efficiency and environmental goals.

Last year, Borax invested $2.6 million in constructing a new boric acid plant adjacent to its current refinery operations in Campo Quijano, Argentina. The plant is now in production, and will supply 8,000 metric tons of boric acid per year primarily to the South American agriculture and ceramics industries. Borax also achieved a 12 percent productivity increase as well as a seven percent reduction in fresh water usage at its Boron boric acid plant last year.

Borax supplies nearly half the global demand for borates – essential micronutrients for plants, part of a healthy human diet, and key ingredients in fiberglass, ceramics, detergents, fertilizers and wood preservatives. For more, visit www.borax.com.