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Rio invests heavily at Tom Price

27th November 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Mining titan Rio Tinto on Wednesday approved a $749-million investment in its existing Greater Tom Price operations, in the Pilbara, to help sustain the production capacity of its iron-ore business.

The investment in the Western Turner Syncline Phase 2 (WTS2) mine will facilitate mining of existing and new deposits and includes construction of a new crusher as well as a 13-km conveyor.

The new conveyor system will help lower greenhouse gas emissions from the mine by 3.5% compared to road haulage and the business is continuing to assess additional options to reduce emissions including renewable energy solutions.

Pending final government approvals, construction will start in the first quarter of 2020 with first ore from the crusher expected in 2021. Production of high-quality Brockman ore will support the company’s flagship Pilbara Blend, which continues to be the preferred baseload product for China’s steel mills.

The project is expected to deliver an attractive internal rate of return with a capital intensity of about $25/t of production capacity. The investment is included in Rio Tinto’s existing guidance for Pilbara replacement capital for 2020 to 2022.

“Our iron-ore business continues to deliver industry-leading margins as we drive performance from our mines. This significant investment in the Greater Tom Price hub is one of a pipeline of high-quality, low-cost options that will underpin production of our flagship Pilbara Blend product well into the future,” said Rio Tinto CEO Chris Salisbury.

As part of the investment, the haul truck fleet at the mine will be fitted with Autonomous Haulage System technology to enable autonomous haulage at WTS2 from 2021.

The ongoing deployment of autonomous haulage at the company’s Pilbara operations is delivering significant safety benefits as well as enhancing productivity and reducing costs, Salisbury said on Wednesday.

Approximately 50% of the company’s haul truck fleet will be capable of operating autonomously by the end of the year with plans being assessed to expand this in the years ahead. Consistent with its proven track record, the company is continuing to reskill, redeploy and retrain as automation technology is implemented.

The Western Australian Chamber of Minerals and Energy (CME) has welcomed Rio’s investment decision, which is expected to generate more than 1 000 jobs during the peak construction period.

CME CEO Paul Everingham said the investment decision was great news for the North West region, which would benefit from the construction activity starting early next year.

“This is great news for Pilbara businesses and the community at large, and a positive sign of confidence in the WA resources sector,” he said.

“It means that Rio Tinto can sustain its current workforce, as well as employ an extra 1 000 Western Australians to work on construction at the production hub.”

Edited by Creamer Media Reporter

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