Australian mining giant Rio Tinto has announced that it will invest $4.2 billion to develop its iron ore business, including $3.7 billion for expansion of its Pilbara iron ore operations in Western Australia and $501 million for further infrastructure development at the Simandou iron ore project in Guinea.
Rio Tinto still sees positive prospects for medium- to long-term iron ore demand driven by ongoing growth in Chinese consumption, said Rio Tinto Iron Ore chief executive Sam Walsh, adding that annual Chinese steel production is expected to grow from its current level of around 700 million mt to around one billion mt towards 2030.
Regarding the Simandou project, Rio Tinto stated that further investment will be made as the government of Guinea progresses its financing strategy and grants approvals for the next steps in developing rail and port infrastructure.