Anglo-Australian mining giant Rio Tinto has committed itself to a US$3.1 billion expansion of its iron ore infrastructure in the Pilbara region of Western Australia.The decision comes just days after Rio and its bigger rival, BHP Billiton, scrapped plans
Anglo-Australian mining giant Rio Tinto has committed itself to a US$3.1 billion expansion of its iron ore infrastructure in the Pilbara region of Western Australia.
The decision comes just days after Rio and its bigger rival, BHP Billiton, scrapped plans for an iron ore joint venture in WA, due to the regulatory hurdles the deal would have faced.
The synergistic benefits of the venture were estimated to be worth $US10 billion.
Rio said the investment will increase annual infrastructure capacity to 283 million tonnes(Mt/a) during 2013.
Further investments will be required to achieve production of 283 Mt/a, such as mine and housing expansions, and approval of these is anticipated within the next 12 months, the company said.
Rio’s activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
The stock last traded at $A82.21, down $1.39 from Tuesday’s closing level.
Meanwhile BHP said it had kicked off the 2010/11 year on a strong note.
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