Rio Tinto Accelerates Iron Ore Expansion

Rio Tinto announced on Thursday the firm expands the Hope Downs iron ore mine in Western Australia to annual 30 million tonnes of output by early 2009 for US$ 350 million, which is 8 million tonnes higher than original plan. The firm already started the expansion plan to increase the Western Australian shipping capacity to annual 220 million tonnes by early 2009 and study to expand the capacity to 320 million tonnes in as early as 5 years. The firm tries to expand the iron ore business including Guinean major project with potential 70 million tonnes of output per year. The firm starts new Hope Downs operation with 22 million tonnes of annual output by early 2008 for around US$ 1 billion, for which the firm started the construction works in Apirl-2006. The firm decided the expansion even before the starting operation a year ahead from original vision. The firm tries to expand the mining capacity to meet the higher infrastructure capacity under the plan to expand the shipping capacity by 48 million tonnes to annual 220 million tonnes. The firm has 50% interest in Hope Downs through 50/50 joint venture with Hancock Prospecting, which is Australia based shareholding company. Rio Tinto will ship the high grade Marra Mamba ore as Pilbara Blend by blending with Brockman and other existing iron ores. Rio Tinto tries to expand the iron ore business to meet rapid growing demand from China and other steel making countries. The firm started the study to expand the Western Australian operations to annual 320 million tonnes by 2012-14. The firm also conducts pre-feasibility study to develop high grade iron ore at Simandou in Guinea at potential 70 million tonnes of annual output capacity.