1st Oct 2018 08:28
LONDON (Alliance News) - Rio Tinto PLC said Monday, along with joint venture partners Mitsui & Co Ltd and Nippon Steel & Sumitomo Metal Corp, it will invest USD1.55 billion to "sustain production capacity" at the Robe River project in Western Australia.
Rio Tinto will invest a total of USD820 million in the iron ore project in the Pilbara region of Australia. The investment forms part of Rio Tinto's existing replacement capital guidance of about USD2.7 billion for 2018 to 2020.
The FTSE 100-listed mining giant, along with its two Japanese partners, will invest USD967 million to develop the Mesa B, C and H deposits at Robe Valley, of which USD513 million will be paid by Rio Tinto.
To develop the C and D deposits at the existing West Angelas operation the partners will pay USD579 million, with Rio Tinto's share expected to USD307 million.
Subject to governmental approval, construction of both projects is expected to start next year, First ore is currently expected for 2021.
Rio Tinto owns a 53% holding in the Robe River joint venture, Japanese insurance holding company Mitsui owns 33% stake and Nippon Steel & Sumitomo Metal 14%.
Rio Tinto Iron Ore Chief Executive Chris Salisbury said: "The development at West Angelas will help sustain production of the Pilbara blend, the industry’s benchmark premium iron ore product, while the additional Robe Valley deposits will enable us to continue to provide a highly valued product to our long-term customers across Asia."
"The approval of these two projects highlights the strong pipeline of development options within our portfolio as we remain focused on our value-over-volume strategy."
Shares in Rio Tinto were down 0.4% Monday morning at 3,863.50 pence each.
Related Shares:
Rio Tinto