Name of the Project
Silvergrass iron-ore mine.
Location
Silvergrass is a satellite deposit located adjacent to Rio Tinto’s Nammuldi mine and is part of the Greater Nammuldi precinct, about 70 km north-west of Tom Price, in Pilbara, Western Australia.
Client
Rio Tinto.
Project Description
The Silvergrass mine is a key element in maintaining Rio Tinto’s premium Pilbara iron-ore blend, and also delivers incremental tonnage and lower unit costs.
Potential Job Creation
More than 500 jobs and opportunities for indigenous contracting were created during the construction of the mine.
Net Present Value/Internal Rate of Return
The brownfield expansion of the high-grade Silvergrass mine offers attractive returns, with an expected internal rate of return for this investment of more than 100% and a payback of less than three years.
Value
$338-million.
Duration
Rio Tinto approved the Silvergrass project in August 2016 and officially opened the Silvergrass mine at the end of August this year.
Latest Developments
Rio Tinto officially opened the Silvergrass mine on August 30, with full commissioning expected before the end of the year.
Ore from the operation is high-quality, low-phosphorous Marra Mamba ore that is treated at the Greater Nammuldi processing plant and blended into Rio Tinto’s premium Pilbara blend product.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Rio Tinto, email media.enquiries@riotinto.com.