Rio Tinto invests US$1.6bn in Aussie iron ore

[miningmx.com] — RESOURCES giant Rio Tinto approved a US$1.6bn investment to develop the Hope Downs 4 iron ore project in Western Australia and link with Rio Tinto’s existing rail, power and port infrastructure in the Pilbara, the company said on Monday.

Hope Downs Iron Ore and Rio Tinto, participating in a joint venture, would
proceed with the development of the mine at an estimated capital cost of US$1.2bn to be shared equally by the joint venture partners -the firm added.

That means Rio Tinto’s share of the project would be US$607m.
Rio Tinto would also commit an additional US$425m to fully cover the capital cost of the rail, rolling stock and power infrastructure owned by Rio Tinto required for this development.

Sam Walsh, Rio Tinto Iron Ore chief executive, said: “This demonstrates the extensive high-grade resources Rio Tinto can bring on line
to sustain our current output at 225 million tonnes a year – an equally important
consideration as we seek to expand our Pilbara production rate to 330 million tonnes a year by 2015.”

Construction is anticipated to commence in early 2011, subject to obtaining
necessary regulatory and other approvals.