Rio Tinto gives green light to further Pilbara iron ore investment

Rio Tinto has approved a further US$1.2 billion investment in its drive to lift annual iron ore production capacity in Western Australia's Pilbara region to 283 million tonnes per annum (Mt/a). The capital will be used for significant expansions at the Brockman 4 and Western Turner Syncline mines. This latest development is part of Rio Tinto's broader plan to expand capacity by more than 50% over the next five years to 333Mt/a, which is the largest mining project in Australian history. Rio Tinto has announced new investment of US$7.2 billion (Rio Tinto share US$5.1 billion) in the Pilbara since July this year.

Rio Tinto chief executive Iron Ore and Australia, Sam Walsh said the expanded mines would provide the bulk of the additional throughput for the recently announced US$3.1 billion rail and port works around Cape Lambert.

The Brockman four mine will be expanded from an annual capacity of 22Mt/a to 40Mt/a. The mine is currently ramping to reach its first phase capacity in 1H 2011. Only opened in September, within three years it will become Rio Tinto's second largest iron ore mine. The Western Turner Syncline will be expanded from its current 6Mt/a capacity to 15Mt/a. Both mines are wholly owned by Rio Tinto, and the ore from each deposit will contribute to Rio Tinto's Pilbara Blend lump and fines products.

The two projects represent the first two of three mine developments to expand mine capacity to 283Mt/a by the fourth quarter of 2013. The third mine earmarked for expansion as part of this program, Nammuldi is currently under study, with an investment decision expected in 2011.

The Western Turner Syncline expansion incorporates the construction of a primary crusher and a 20km overland conveyor to deliver ore to the Tom Price primary stockpiles. Existing Tom Price infrastructure will be utilised, including the high grade and low grade processing plants, stockyards, train load-out and on-site facilities. The first phase will provide 15Mt/a capacity from the second half of 2013.

Both developments will require a number of government and regulatory approvals.Air Max Shox 2018