-(220-x-200-px)-(130-x-130-px)-(220-x-200-px).jpg?lang=en-US&ext=.jpg)
Veolia.gif?width=200&height=200&mediaprotectionhash=4deca34a0d5a00013b5a0ccdc2dcf98fd2c17aabb57eb7bbb27200552f29c247&ext=.gif)
Rio Tinto Continues to Invest in Canadian Iron Ore Expansion
09/05/2008 - Rio Tinto approves a $US193-million capital expenditure to expand the magnetite plant at Iron Ore Co. of Canada, and a US$75 million investment for completion of a feasibility study on the third-phase expansion.
Continuing to advance its three-phased strategy to expand Iron Ore Co. of Canada's annual concentrate production, Rio Tinto has approved a $US193-million capital expenditure (Rio Tinto’s share = $US102 million) to expand the magnetite plant to an annual capacity of 22.8 million tonnes. The expansion program targets a 50% expansion of Iron Ore Co of Canada’s annual concentrate production, to 26 million tonnes by 2011.
Rio Tinto also approved US$75 million (Rio Tinto’s share = US$44 million) for completion of a feasibility study on the third-phase expansion, to extend annual capacity to 26 million tonnes and purchase of long-lead items.
Overall, taking into account earlier preparatory work, a total of US$768 million has now been committed to the expansions (Rio Tinto’s share = US$451 million).
"The iron ore market remains tight and our substantial reinvestment in our operations in Canada and worldwide demonstrates the confidence we have in that market," said Rio Tinto Chief Executive Iron Ore and IOC Chairman Sam Walsh.
"The significant improvement in IOC operational efficiency is now being reflected in a more aggressive expansion timetable. We are targeting an annual production run-rate of 26 million tonnes of concentrate in late 2011," he said.
"A number of new market opportunities are emerging for both concentrate and pellet products and it is important that IOC extracts maximum efficiency from its existing infrastructure and plant."
According to the company, the phased expansion has significant and sustainable local benefits, particularly in employment opportunities.
The IOC expansion follows on from the July announcement of a US$2.15-billion expansion of the Corumbá iron ore mine in Brazil. Rio Tinto has now spent or committed US$11 billion since the current expansion phase commenced in 2003, toward its goal to reach an annual iron ore capacity of more than 600 million tonnes.
Rio Tinto's attributable share of Iron Ore Co. of Canada's production is 58.7%, and its attributable share of global iron ore production beyond 600 million tonnes/year is approximately 85%.
Rio Tinto is a leading international mining group headquartered in the U.K., combining Rio Tinto plc and Rio Tinto Limited. Rio Tinto's business is finding, mining, and processing mineral resources. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
