Australian mining giant Rio Tinto has announced that it will invest a further US$790 million to expand the annual capacity of its iron ore operations in the Pilbara region of Western Australia to 330 million mt. This brings total investment funds approved in recent weeks to US$1 billion, the company said.
The expansion centers on developing Rio Tinto's port at Cape Lambert from its current annual capacity of 80 million mt to 180 million mt by 2016.
Rio Tinto chief executive iron ore and Australia Sam Walsh said the new investment highlighted Rio Tinto's intention to forge ahead with the expansion.
As SteelOrbis previously reported, Rio Tinto on July 14 announced US$200 million in funding to prepare for the expansion of its iron ore operations. This funding is to allow dredging contracts to be issued as part of early works on the expansion of the Cape Lambert port.
The dredging is associated with the proposed construction of an additional 1.8 kilometer, four-berth jetty and wharf at Cape Lambert to increase its current annual capacity.