Rio Tinto expands iron ore capacity

Rio Tinto expands iron ore capacity

According to recent market reports, Rio Tinto Ltd., the world's second largest iron ore exporter, announced that it is going to expand its Western Australian iron ore operations as a result of rising demand driven mainly by China. The company will invest $920 million for this expansion. With this expansion, the Yandicoogina mine's annual iron ore capacity will increase to 36 million tons from 20 million tons. Moreover, Dampier port's annual capacity will be reach to 116 million tons from 74 million tons. The Yandicoogina mine expansion is scheduled to complete in early 2005 while Dampier is expected to complete at the end of 2005. Meanwhile, rival iron ore exporter BHP Billiton is also going to increase its Western Australian production capacity to meet the strong demand.