Anglo-Australian mining conglomerate Rio Tinto approved a US$277 million investment (Rio Tinto share US$163 million) in the second phase of Rio Tinto's three-phase project that will ultimately raise its 59 percent-owned Iron Ore Company of Canada's (IOC) concentrate production capacity by 40 percent to 26 million metric tons (mt) per year.
The US$277 million investment will increase IOC's spiral and magnetite concentrate production capacity by an average of 1.3 million mt annually to 23.3 million mt annually.
Rio Tinto's chief executive Sam Walsh commented that the new investment is an important development, especially considering growing global demand. "Global seaborne iron ore demand is projected to increase substantially over the next decade, and IOC's concentrate is well placed to complement the increasing use of lower-quality ore to meet that demand," added Walsh.