Rio Tinto to Further Expand Concentrate Capacity at Iron Ore Company of Canada
02/09/2011 - Rio Tinto has given the go-ahead to an additional US$277 million investment in the next phase of a project that will ultimately raise the Iron Ore Company of Canada's concentrate production capacity by 40% to 26 million tonnes per year.
Rio Tinto has given the go-ahead to an additional US$277 million investment (Rio Tinto share US$163 million) in the next phase of a project that will ultimately raise the Iron Ore Company of Canada's (IOC) concentrate production capacity by 40% to 26 million tonnes per year.
This is the second phase of a three-stage expansion that was announced in May 2010 with a US$400 million investment (Rio Tinto share US$235 million) to raise production capacity from 18 to 22 million tonnes per year.
In this phase of the project, IOC's spiral and magnetite concentrate production capacity will be increased by an average of 1.3 million tonnes per year to 23.3 million tonnes per year from 2013.
Recent studies have highlighted an opportunity to improve time to market by bringing forward some capital items from the third stage of the project, which would result in a higher level of production earlier. The third stage of the planned expansion to 26 million tonnes per year is currently under study and a final investment decision is expected by 2012.
Rio Tinto Chief Executive, Iron Ore and Australia, Sam Walsh said the project was an important development in increasing IOC's production at a time when global demand is escalating.
"Global seaborne iron ore demand is projected to increase substantially over the next decade, and IOC's concentrate is well placed to complement the increasing use of lower-quality ore to meet that demand," he said. "With high iron content and very low levels of impurities, IOC's concentrate provides significant value to steel producers as ore grades from direct shipping mines continue to decline."
The project's construction is set to start immediately to capitalize on the brief Labrador summer construction season and is to be fully commissioned by the end of 2012.
Rio Tinto is a leading international mining group headquartered in the UK, 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.
