Rio to expand in Australia
The world’s second largest mining company Rio Tinto said it will spend $1.35bn (£768m) to expand its iron ore production at two of its key operations in Western Australia.
The company said it would invest $530m expanding its Yandicogina mine to boost its output from 36m tons to 52m tons.
It will also expand its Dampier port, which will increase its annual shipping capacity from 116m tons a year to 140m tons a year.
The company said the Yandicogina mine work will begin in December, while construction on the Dampier port starts in the first quarter of next year. Both projects are initially due to start in 2007 and carry on into 2008.
Leigh Clifford, Rio Tinto’s chief executive, said: “This new investment represents a strong vote of confidence in the competitiveness of Western Australia’s iron ore industry. On completion, the expansion will take the capacity of Rio Tinto’s ports in the Pilbara region to close to 200m tons.”
Also, Rio Tinto said its third-quarter iron ore production figures leapt to a record 18 per cent on demand from Chinese and other Asian steel markers.
The company said it produced 32.2m tons of ore over the last three months.
The business also increased production in its copper, uranium and alumina mining. Though there were falls among its coal, lead and zinc production. Iron ore is one of the key driver’s of Rio Tinto’s profits, especially after prices set in annual talks with Japanese buyers rose 71.5 per cent in April this year.
Rio Tinto said: “The strong operational performance of the first half of the year continued through the third quarter with most operations producing at, or near, capacity.”
