QIT Madagascar Minerals

World's fourth largest island; world's largest ilmenite deposit

World's fourth largest island; world's largest ilmenite deposit

The QIT Madagascar Minerals (QMM) ilmenite project is situated in the Fort Dauphin region at the southern end of Madagascar and, with a grade of 60 per cent titanium dioxide, is the largest known undeveloped high-grade ilmenite orebody in the world. Three adjacent deposits known as Mandena, Petriky and Sainte-Luce, are expected to give the project a life expectancy of at least 40 years.

Mining at the US$ 600 million facility is expected to commence in late 2008 in conjunction with a US$200 upgrade of Rio Tinto's processing plant at Sorel, Quebec where the ilmenite will be smelted. Initial capacity will be 750,000 tonnes per annum.

The project is the largest in the history of Madagascar and is expected to act as a catalyst for further industrial and economic development. It is 80 per cent owned by Rio Tinto and 20 per cent by the Malagasy government.

Because of Madacasgar's unique biodiversity, delicate socio-economic balance and the need for sustainable conservation, QMM is strongly committed to social and environmental responsibility as well as technical and economic performance. The project involves the efforts of environmental experts, sociologists and economists from Madagascar and many other countries, as well as extensive local and regional participation.