Iron ore production at the US$901 million-worth Mesa A/Warramboo mine has started in the Pilbara region of Western Australia as a part of the Robe River joint venture. Australian miner Rio Tinto's share in the mine is worth US$478 million, equal to 53 percent.
Construction of the Robe River joint venture mine and rail extension started in November 2007. The other partners in the JV are Japan's second biggest trading house Mitsui & Co., Ltd and leading Japanese steelmakers Nippon Steel Corporation and Sumitomo Metal Industries Ltd.
According to a Rio Tinto release, the open-cut Mesa A/Warramboo iron ore mine, 50 km west of Pannawonica, will have an initial production of 20 million mt per annum, increasing to 25 million mt by 2011. Total high grade reserves across the deposits are estimated at 249 million mt, with a total mine life of 11 years.
"This is a great day for Rio Tinto, and for the Pilbara. Mining in the Robe Valley has been an integral part of the north-west economy for decades, and this new mine will ensure it continues to contribute to the benefit of the wider community," said Sam Walsh, Rio Tinto chief executive Iron ore and Australia.