Rio Tinto invests $310m to boost production in Pilbara

9th Sep 2011 07:43

Multi-metal mining colossus Rio Tinto is to invest $310m to assure a sustainable water supply for its iron ore operations in Pilbara, Western Australia.The coastal water supply project is said to ensure a sufficient resource to help the expansion of annual production capacity up to the planned 333m tonnes (Mt/a).Rio is to build a new borefield and pipeline system by mid-2013, at which time the firm should see the first ore from the planned ramp-up of production to 283 Mt/a.Sam Walsh, Rio Tinto's chief executive of Iron Ore and Australia, said "The decision is a major boost to our operational capability and an important investment to support our Pilbara expansion. We will ensure the future reliability of our water supply without any interruption to current operations.""This decision will provide significant benefits for the communities of the Pilbara region and represents a huge vote of confidence in the coastal communities of Dampier, Karratha, Wickham, Roebourne and Port Samson - towns for which Rio Tinto has supplied critical infrastructure since the Pilbara was developed. By freeing up water supply for our growing communities this project will support the Government's 'Pilbara Cities' initiative," Walsh said.BC