Rio Tinto to invest further US$3.4bn in Pilbara iron ore

Finance

Publishing Date: 08 Feb 2012 12:27pm GMT
Author: Mining Journal

Rio Tinto said it will invest a further US$3.4 billion to expand its Pilbara iron ore operations in Western Australia, adding that it now has full approval for its plans to increase production capacity to 283Mt/y.

About US$2.2 billion will be spent on extending the life of the Nammuldi iron ore mine and US$1.2 billion, of which Rio Tinto’s share is US$700 million, has been allocated for Cape Lambert port and rail early works.

The company expects to increase its operating capacity in the Pilbara to 283Mt/y in the second half of 2013 from the current 225Mt/y. It is looking at raising capacity to 353Mt/y by the end of H1 2015 and expects to make a final investment decision later this year.

"We are announcing another significant milestone in our drive towards a more than 50% increase in the size of iron ore operations in Western Australia," said Rio Tinto Iron Ore and Australia chief executive Sam Walsh.

"The programme remains on track and we are bringing new iron ore production on stream at a time when demand from Asian markets is forecast to grow strongly, while industry supply growth remains constrained."