Iron Ore Company of Canada

Rio Tinto invests USD 277 million at Iron Ore Company of Canada

08.02.2011 | Editor: Marcel Dröttboom

Rio Tinto will invest USD 277 million in expansion of concentrate production capacity at Iron Ore Company of Canada. (Picture: Rio Tinto)

London, United Kingdom – Rio Tinto will invest USD 277 million in the expansion of concentrate production capacity at Iron Ore Company of Canada. Its the second phase of a three stage expansion that will increase raise concentrate production capacity from 18 to 22 million tonnes per year.

Rio Tinto has given the go-ahead to the further USD 277 million investment (Rio Tinto share USD 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 per cent to 26 million tonnes per year. This is the second phase of a three stage expansion that was announced in May 2010 with a USD 400 million investment (Rio Tinto share USD 235 million) to raise production capacity from 18 to 22 million tonnes per year.

Phase two of the project will increase Iron Ore Company of Canada’s spiral and magnetite concentrate production capacity by an average of 1.3 to 23.3 million tonnes per year from 2013.

Recent studies have highlighted an opportunity to improve time to market through bringing forward some capital items from the third stage, resulting in 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.

The project’s construction is set to start immediately to capitalise on the brief Labrador summer construction season and will be fully commissioned by the end of 2012.

Comments by Company Officials

Comments by Company Officials

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.”

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