Rio Tinto, partners approve $599m brownfield iron-ore expansion
PERTH (miningweekly.com) – Diversified major Rio Tinto and its joint venture (JV) partners in the West Angelas iron-ore mine have approved a $599-million brownfield expansion as part of a plan to increase production in the Pilbara to 360-million tonnes by 2015.
The expansion would increase production at West Angelas by six-million tonnes through the development of the Deposit B orebody, taking it from the current 29-million tonnes a year to 35-million tonnes a year.
Project house Calibre Group has been awarded a A$22-million contract to provide engineering, procurement and construction management services for the implementation phase of the expansion at West Angelas.
Major elements of the contract would include additional heavy mining equipment, the extension to the process plant, including a new ore stacker, and the extension to existing non-process infrastructure, as well as enhancing the site utilities and services.
Work on the contract would start immediately and was likely to be completed in the first half of 2015.
In November, Rio Tinto set out its pathway to optimise the growth of mine capacity towards 360-million tonnes a year at a capital intensity in the $120/t to $130/t range. A series of brownfield expansions will bring the additional tonnes.
On Thursday, Rio Tinto reported iron-ore production of 266-million tonnes (on a 100% basis). Its production is set to increase to 295-million tonnes in 2014.
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