Giant Australian iron ore producer Rio Tinto has announced a US$3.1 billion (Rio Tinto share $2.1 billion) investment in expanding its iron ore infrastructure in the Pilbara region of Western Australia. This investment will increase annual infrastructure capacity to 283 million mt per year during 2013.
According to a company statement, further investments will be required to achieve production of 283 million mt, such as mine and housing expansions, and approval of these is anticipated within the next 12 months. Rio Tinto has also approved a final feasibility study into the colossal project. The US$3.1 billion investment will support port and rail infrastructure works around Cape Lambert, including a two-berth wharf, a new stockyard, car dumper, two stackers and reclaimers, rail marshalling yards and six new heavy-haul train units.
Since July 2010, Rio Tinto has announced US$6 billion (Rio Tinto share US$3.9 billion) of new investment in its world class Pilbara operations with the majority being spent on expansion projects.
Rio Tinto chief executive, iron ore and Australia, Sam Walsh, said, "The single best creator of value for Rio Tinto shareholders is to move more Rio Tinto tonnes through an expanded Cape Lambert. Today we have committed further funds to doing just that."