Anglo-Australian mining group Rio Tinto has approved a $667 million investment with its Pilbara partners in infrastructure and studies for its Western Australian mine expansions. Rio Tinto's own share in this investment is $492 million.
Accordingly, a total of $518 million (with Rio Tinto contributing $343 million) will be spent on the early commencement of infrastructure works and the acquisition of long-lead items such as heavy mobile equipment for Rio Tinto's Pilbara mines.
The remaining $149 million will be invested in a new mine on the Western Turner Syncline for feasibility study, long-lead items and the early development of a construction camp and associated infrastructure. Thus, the mine's production is scheduled to commence in Q4 2010 and is to reach an annual production capacity of 29 million mt.
The overall investment is in line with the first stage of Rio Tinto's strategy to increase the annual capacity of its Pilbara operations to 320 million mt by 2012. In the longer-term future the company plans to raise the production capacity of its Pilbara operations to 420 million mt per year and its global production to beyond 600 million mt per year.
Rio Tinto CEO Tom Albanese saşd that "It is vital that we progress plans to deliver more iron ore to the market faster than before".