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NEWS-LEADING DEVELOPMENTS modities. He has a degree in mining engineering and is the current president of the Chamber of Mines of South Africa. On January 17, Rio Tinto announced that Tom Albanese had stepped down as its chief executive by mutual agreement with the Rio Tinto board of directors and that the company's Iron Ore chief executive, Sam Walsh, had been appointed as his successor, effective immediately. Also, Doug Ritchie, who as Rio Tinto's Energy chief executive led the acquisition and integration of its Mozambique coal assets, stepped down by mutual agreement with the Rio Tinto board of directors. The Rio Tinto announcement of top executive changes accompanied an announcement that the company expects to recognize non-cash impairment charges of approximately $14 billion (post tax) in its 2012 full-year results. These charges include $10 billion to $11 billion in the carrying values of Rio Tinto's aluminum assets (mostly Rio Tinto Alcan but also Pacific Aluminium) and approximately $3 billion relating to Rio Tinto Coal Mozambique. Rio Tinto also expects to report a number of smaller asset write-downs of about $500 million in its full-year 2012 results. Rio Tinto acquired Alcan for $38 billion in 2007, not long after Albanese became the company's chief executive in 2006. Along with the current write-down, Rio Tinto has written-down $28 billion of Alcan's value. The Rio Tinto announcement commented that, "The further deterioration in aluminum market conditions in 2012, together with strong currencies in certain regions and high energy and raw material costs, has had a negative impact on the current market values in the aluminum industry." Regarding Rio Tinto's Mozambique coal investment, the announcement said, "In Mozambique, the development of infrastructure to support the coal assets is more challenging than Rio Tinto originally anticipated. Rio Tinto sought to transport coal by barge along the Zambezi river, but this option did not receive formal approvals. "These infrastructure constraints, combined with a downward revision to estimates of recoverable coking coal volumes on the Rio Tinto Coal Mozambique tenements, have led to a reassessment of the overall scale and ramp up schedule of Rio Tinto Coal Mozambique, and consequently to the impairment announced today. "Rio Tinto continues to engage with the government of Mozambique on all transport infrastructure options." 6 E&MJ; • FEBRUARY 2013 Goldcorp Forecasts 70% Production Increase by 2017 In its year-end 2012 production update and forecast, Goldcorp reported that it expects to increase its gold production by about 70% over the next five years from about 2.39 million oz in 2012 to between 4 million and 4.2 million oz in 2017. New projects will make significant contributions to this growth, with first gold production forecast for Cerro Negro, Argentina in late 2013; Éléonore, Quebec, in late 2014; Cochenour, Ontario, in the first half of 2015; and Camino Rojo, Mexico, in 2016. Goldcorp Year-by-year Production Forecast Year 2013 2014 2015 2016 2017 Gold Production 2.55 to 2.8 million oz 3.20 to 3.5 million oz 3.50 to 3.8 million oz 3.80 to 4.0 million oz 4.00 to 4.2 million oz The Cerro Negro project in Santa Cruz province Argentina remains on track for first gold production in late 2013. Gold production is expected to average 525,000 oz/y during the mine's first five full years of production, and cash costs are expected to average less than $350/oz. At year-end 2012, underground ramp development of the Eureka vein at Cerro Negro had advanced to more than 2,100 m of the total 3,900 m planned. The Eureka stockpile contained an estimated 40,300 mt at an estimated grade of 11.1 g/mt gold and 204 g/mt silver. Along with the Eureka vein, the Mariana Central and Mariana Norte veins will provide the initial production at Cerro Negro, where work on the production ramps continues to progress on schedule. Overall engineering, procurement and construction management at Cerro Negro was 55% complete at year-end. Significant cost inflation in Argentina, country factors, and overall cost escalation have increased the initial estimated capital expenditure at Cerro Negro to $1.35 billion in current dollars. At Éléonore, first gold production remains on track for late 2014. At full production, the mine will produce approximately 600,000 oz/y of gold. Sinking of the Éléonore production shaft began in December 2012. Underground exploration drilling from the recently-completed Gaumond exploration shaft will accelerate in 2013, enabling further definition drilling of the deep portion of the Roberto deposit to proceed. The Éléonore exploration ramp continues to advance and has reached more than 2,500 m in length. Currently, four diamond drills are conducting definition drilling from strategic working platforms in the ramp. Work to date indicates an increase in initial capital for Éléonore development to $1.75 billion in current dollars due to additional permitting required related to water treatment, as well as overall project cost escalation. Ongoing work with regard to mine planning and initial development capital is expected to be completed during the first quarter of 2013 and may result in a further increase to initial capital. At Cochenour, construction of the 5-km haulage drift to connect the Cochenour shaft to the Red Lake mine on the 5100 level advanced to 68% complete at the end of 2012, with expected completion by the end of the first quarter of 2014. Upon completion, the drift will enable ore from the Cochenour/Bruce Channel deposit to be hauled directly to the Red Lake mine for processing at the existing mill facilities. A study of the overall Cochenour project has concluded that the center of the Bruce Channel orebody is lower than previously expected, necessitating the deepening of the Cochenour shaft by 245 m. This has resulted in a scope change expected to increase the initial capital spend to $540 million in current dollars and to move first gold production into the first half of 2015. Following ramp-up to full production, forecast life-of-mine gold production from Cochenour is expected to be in the range of 225,000 to 250,000 oz/y. Goldcorp completed a study of its Camino Rojo gold-silver project 50 km southeast of its Peñasquito mine in Zacatecas state, Mexico, during 2012. The study contemplates a heap leach facility to process near-surface oxide and transition mineralization. The study demonstrated strong financial returns but does not consider recent positive exploration results in the sulphide portions of the deposit. Until Goldcorp more thoroughly understands the sulphide opportunity, it is deferring development and construction of the heap leach facility. Work will continue in 2013 on exploration, permitting and metallurgical testing. The Camino Rojo project area includes the Represa deposit, which contains measured and indicated resources of 2.8 million oz of gold and 52.6 million oz of silver. www.e-mj.com