Giant Australian iron ore producer Rio Tinto has announced it will invest another US $1.2 billion to raise annual iron ore production capacity in its operations in Western Australia's Pilbara region to 283 million mt per annum.
Since July this year Rio has announced US S7.2 billion in new investments in the Pilbara region, as part of its broader plan to expand capacity by more than 50 percent over the next five years to 333 million mt per year.
The new investment will be used to significantly expand the annual capacity of its Brockman 4 mine from 22 million mt to 40 million mt, and also to boost the annual capacity of its Western Turner Syncline mine from its current six million mt capacity to 15 million mt. The Brockman 4 mine only opened in September and will reach its first phase capacity in H1 2011, becoming Rio Tinto's second largest iron ore mine within three years, the company said.
The two projects represent the first two of three mine developments to expand mine capacity to 283 million mt by Q4 2013. The third mine earmarked for expansion as part of this program, Nammuldi, is currently under study, with an investment decision expected in 2011.
Rio Tinto's iron ore chief, Sam Walsh, said the expanded mines would provide the bulk of the additional throughput for the recently announced US$3.1 billion rail and port works around Cape Lambert.