Rio Tinto Reveals Koodaideri Iron Ore Mine Expansion Plans

Rio Tinto PLC said its proposed Koodaideri iron ore mine may ultimately produce in the order of 70 million tonnes of iron ore a year and operate for more than three decades.

The details appear in referral documents posted on the Australian government's environmental website.

Koodaideri is expected to play a vital role in the group's next big capacity expansion project in the Pilbara region of Western Australia.

The documents form part of Rio's bid to gain government approval for the venture, and provide the first public glimpse of what will be the company's next major greenfield iron ore development.

Rio said in the documents that the project is a key component in support of Rio Tinto's publicly announced expansion program to meet forecast growth in seaborne iron-ore demand.

Subject to relevant approvals, construction of Koodaideri is scheduled to commence in the first quarter of 2014, with production starting early in 2016.

Despite recent volatility in iron-ore prices and concern over slowing Chinese growth rates, Rio Tinto is pushing ahead with multibillion dollar expansion plans.

It has approved an expansion of its overall Pilbara production capacity to 283 million metric tons a year, due to come on stream in 2014.