6th Mar 2015 09:06
LONDON (Alliance News) - Rio Tinto PLC Friday said it has increased its reserves in the Diavik diamond project, the Pilbara iron project and the Hail Creek Coal project.
The Anglo-Australian miner said the mineral resource at the Pilbara project in Western Australia has increased mainly due to the addition of the Yandicoogina braid deposit, which has contributed 488 million tonnes at 61.7% iron, 238 million tonnes at 57.7% iron and 62 million tonnes at 56.9% iron.
That led to Hamersley Iron Brockman, one of the company's subsidiaries, having a mineral reserve increase to 2.99 billion tonnes from 681 million tonnes, and Brockman process ore increasing to 1.13 billion tonnes from 324 million tonnes.
Rio Tinto said the Diavik diamond operation in Canada, in which it holds a 60% stake, is now likely to be producing until 2023 after receiving an updated ore reserve, and said there is further potential upside as the remaining mineral resource is being evaluated which could be added to the mine plan in due course.
The Diavik total ore reserve increased to 18.1 million tonnes of ore, of 2.9 carats per tonne for 53.3 million carats, compared to the previous estimate of 16.4 million tonnes of ore at 2.9 carats a tonne for 46.8 million carats at the end of 2013.
Of the updated ore reserve, the proven reserve stands at 13.1 million tonnes of ore at 3.0 carats per tonne for 39.6 million carats, with probable reserves totalling 5 million tonnes of ore at 2.8 carats a tonne for 13.7 million carats.
However, Diavik's inferred mineral resource has fallen since the end of 2013, to 3.5 million tonnes of ore at 2.6 carats a tonne for 9.3 million carats, compared to 7.3 million tonnes of ore at 2.7 carats a tonne for 19.8 million carats.
At the Hail Creek mine in Australia, the marketable ore reserve has increased to 85 million tonnes from 60 million tonnes.
Rio Tinto shares were down 0.6% to 2,966.00 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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