Pilbara Iron Ore

Rio Tinto to Invest USD 230 million to expand Pilbara Iron Ore Capacity

24.09.2010 | Editor: Marcel Dröttboom

Rio Tinto has announced investment of USD 230 million to expand the Pilbara Iron Ore Capacity. (Photo courtesy of Rio Tinto)

Melbourne, Australia – Rio Tinto will invest USD 230 million to implement Dampier Port expansion works that will result in an additional five million tonnes annual capacity, taking total Pilbara iron ore annual capacity to 230 million tonnes per year in the first quarter of 2012.

This USD 230 million investment for Dampier Port expansion works announced by Rio Tinto investment is in addition to USD 91 million approved in early 2010 for a first 5 million tonnes per year expansion to 225 million tonnes per year capacity which is currently in implementation.

Rio Tinto chief executive, Iron Ore and Australia, Sam Walsh said: “This investment will demonstrate our ability to bring incremental capacity on line at very low capital cost and without disrupting existing operations or schedules. Rio Tinto’s Parker Point facility at Dampier port is our single largest and busiest port operation. We will actively manage this incremental expansion to maintain production and expansion schedules, consistent with our record of orderly and timely delivery of additional iron ore supply. These additional tonnes will come from our existing west Pilbara operations at Nammuldi and Brockman 2 (Rio Tinto share 100 per cent), and without any additional investment in the mines.”

The port upgrade, wholly funded by Rio Tinto, will increase the Parker Point facility’s shiploading capacity, with associated increases in rail stock. It is the second stage of Rio Tinto’s 330 million tonnes per year growth programme, which consists of the following:

• 220 million tonnes per year – current operating capacity.
• 225 million tonnes per year by end of Q1 2011 - Dampier port systems efficiencies (in implementation).
• 230 million tonnes per year by end of Q1 2012 - Dampier port incremental (now approved to implement).
• 280 million tonnes per year by end of H2 2013 – Cape Lambert port - 1st 50 million tonnes per year increment (in feasibility study).
• 330 million tonnes per year by end of H2 2015 – Cape Lambert port - 2nd 50 million tonnes per year increment (pre-feasibility study completed).

The expansion is subject to the usual government and other approvals.

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