PERTH (miningweekly.com) – Diversified giant Rio Tinto on Monday announced that it had started production at its $901-million Mesa A/Warramboo iron-ore mine, in the Pilbara region of Western Australia.

The opencut iron-ore mine would initially produce 20-million tons a year, increasing to 25-million tons by 2011.

“This is a great day for Rio Tinto and for the Pilbara,” said Rio CEO for iron-ore and Australia, Sam Walsh.

“Mining in the Robe Valley has been an integral part of the north-west economy for decades, and this new mine will ensure it continues to contribute to the benefit of the wider community.”

The Robe River joint venture (JV), in which Rio held a 53% share, started construction of the mine and rail extension in November 2007.

The mine would employ about 220 people, drawn progressively from the existing work force at Robe River’s main deposit, Mesa J near Pannawonica, and new employees.

The total high-grade reserves across the Mesa A/Warramboo deposits are estimated at around 249-million tons, with a total mine life of 11 years.

It would sustain production of the Robe Valley pisolite ore at 32-million tons a year, as production from the Mesa J deposit decreased.

Rio noted that the first full-length train left the mine late on Friday, following the 49-km rail extension to connect to the Deepdale railway running from Pannawonica to the Cape Lambert port.

In 2007, when the investment into the Mesa A/ Warramboo project was announced, Walsh noted that the new mine was “integral” to the Pilbara production platform underpinning Rio Tinto’s rapid expansion of its global network of assets.

Walsh noted that the mine demonstrated Rio’s strategy for substantial investment in high-quality, long-life, and low-cost assets.

The balance of the Robe River JV belongs to investment firm Mitsui, which holds 33%, Nippon Steel, which holds 10,5%, and Sumitomo Metal Industries, which holds the remaining 3,5%.

According to Rio Tinto’s website, Robe River is the world’s fourth-largest seaborne trader in iron-ore and sells primarily into Japan, Europe and Asia.

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