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.