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.

The investment will lower mine operating costs by replacing road haulage used in the Nammuldi incremental tonnes projects, with a primary crusher and a more efficient 9 km conveyor to connect the Silvergrass mining area to the existing processing facilities at Rio Tinto’s nearby Nammuldi operations.

The project will add ten-million tonnes of capacity.

Jobs to be Created
Not stated.

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
Rio Tinto will invest an incremental $338-million to complete the development of the Silvergrass mine.

Duration
The project is expected to be commis-sioned in the fourth quarter of 2017.

Latest Developments
Rio Tinto approved the Silvergrass project in August.

The company has since awarded diversified engineering and infrastructure company RCR Tomlinson a $120-million contract to deliver a primary crusher and overland conveyor system for the mine.

RCR’s scope of work includes the engineering, procurement and construction of the new primary crusher, 9 km of overland conveyor and an associated 33 kV power line.

Construction will start on site in the fourth quarter of the year, when Rio Tinto is expected to have gained the necessary government approvals.

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.