Rio Tinto Begin Construction for Major Power Stations in Australia's Remote Western State

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Researched by Industrial Info Resources Australia (Perth, Australia)--The mining industry in Australia is a major energy user, and mining companies need to focus on both energy-efficiency measures and cost-effective ways of generating power in a highly competitive market, in often very isolated areas.

The growing mining industry involves a diverse range of energy intensive processes, such as excavation, mine operation, material transfer, mineral preparation and separation. Multinational metals and minerals corporation Rio Tinto Group (NYSE:RTP) (London, England) has many large-scale mining operations in remote areas of Australia, and the company continues to secure its own energy demand through the construction of on-site power stations.

Australia's Rio Tinto Limited (NYSE:RIO) (Melbourne, Australia) is working with Forge Power (which was previously known as CTEC Pty Limited, and is now a wholly owned subsidiary of Forge Group Limited (ASX:FGE) (Perth, Australia)) to secure energy for Rio Tinto iron ore operations in Western Australia. Rio Tinto Iron Ore Australia and Forge Power are developing a 120-megawatt (MW) Cape Lambert project and are currently conducting preliminary engineering for the grassroot power station, which will provide electricity to the port expansion at Rio Tinto's iron ore mine facility near Wickham, Western Australia.

The project will utilize 40-MW combustion turbine generators and a 30-MW steam turbine generator in a combined-cycle configuration. Forge Power continues to release bid documents for equipment, consumables and subcontractors throughout 2013. Civil and site works are under way and the project, which is estimated to cost $525 million, is scheduled for completion in early 2015.

Rio Tinto Iron Ore Australia and Forge Power continue to develop the West Angelas 80-MW dual fuel (natural gas and diesel) simple-cycle power station. The project involves the installation of 40-MW GE LM6000 PF Sprint combustion turbine generator sets that are fitted with dry lower emission (DLE) burners. The West Angela's power station is estimated to cost $220 million and will be built at Rio Tinto's existing Hamersley iron ore mine to generate power to supply to the mine expansion project. The power station is scheduled to be brought online at the same time as the completion of the mine expansion in the third quarter of 2013.

Industrial Info is currently tracking 32 projects being developed in Australia by Rio Tinto. Almost half of the projects are in the Western Australia; eight projects are being developed in Queensland; and the remaining projects are across the Northern Territory and New South Wales. The projects are in varying stages of development and represent more than $17 billion in investment value.

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