He reported that prefeasibility studies were well advanced, and major infrastructure components including port and rail were ahead of estimates.

Expansion at the iron-ore operation would be from 220-million tons a year to 320-million tons a year, and the major infrastructure commitments were expected to be approved in the first half of 2009.

Over 20 individual components were being studied, reflecting more than $150-million in upfront investment. Early works planning and production slots for long-lead time items were scheduled, with significant investment expected for pre project approval.

Production of iron-ore at Pilbara has increased by 8,5% year-on-year since 2001, while iron-ore reserves have increased 7% year-on-year, and resources have increased by 12% year-on-year.

"Our exploration targets build on a huge body of knowledge and vast experience gained over Rio Tinto's 40 years of exploration and mining in the Pilbara region. The business plan is to progressively work through these targets to support expansion and longevity," said Walsh.

Walsh further indicated that Rio Tinto's global iron-ore resources were lifted by 40% since December 2006 - mostly from Pilbara, but also from Simandou, and others.

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