27th Nov 2019 07:55
(Alliance News) - Mining giant Rio Tinto PLC is to spend USD749 million expanding the Greater Tom Price iron ore operations in Western Australia's Pilbara, it said Wednesday.
The investment at the West Turner syncline phase two mine will allow the mining of both existing deposits and new areas, and will also include the construction of a new crusher and a 13-kilometre conveyor belt.
Rio Tinto, which said the new conveyor belt will cut greenhouse gas emissions by 3.5%, is also looking at other renewable energy options at the mine. It will be fitting the haul truck fleet with autonomous technology, reducing costs, with some 50% of the fleet operating autonomously from 2021.
Anglo-Australian Rio Tinto hopes to begin construction early in 2020, with first ore from the crusher expected in 2021. It sees an "attractive" internal rate of return, with a capital intensity of USD25 per tonne.
"Our iron ore business continues to deliver industry-leading margins as we drive performance from our mines. This significant investment in the Greater Tom Price hub is one of a pipeline of high-quality, low-cost options that will underpin production of our flagship Pilbara blend product well into the future," said Rio Tinto Iron Ore Chief Executive Chris Salisbury.
According to the company's website, it has 16 iron ore mines and four ports in the Pilbara, where it says it is expanding operations to "epic proportions".
By George Collard; [email protected]
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