Rio Tinto to Invest $2.15 Billion in Brazilian Iron Ore Mine Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Rio Tinto plc (NYSE:RTP) (London) recently approved a $2.15 billion investment in a major expansion of an iron ore mine in Corumba, Mato Grosso do Sul, in Brazil.

The first phase of the project will boost the mine's annual capacity from 2 million tons per year to 12.8 million tons per year, with production commencing in the fourth quarter of 2010. The project entails the expansion of the mine's associated logistics chain, with the construction of river ports in Albuquerque, Brazil, and La Agraciada, Uruguay, and a 29-kilometer conveyor belt to transport the ore from the mine to the port in Albuquerque. Rio Tinto has also approved the disbursement of $42 million to start a feasibility study on the Phase II expansion expected to be completed by the third quarter of 2009. If approved, Phase II will increase the mine's capacity from 12.8 million tons per year to 23.2 million tons per year of iron ore.

Sandwell Engenharia Limitada (Belo Horizonte, Brazil) was awarded an engineering, procurement and construction/management contract. Minerconsult Engenharia (Belo Horizonte) will also provide engineering services for the mine as well as plant design. Construction will start in November 2008, and project completion is expected by the fourth quarter of 2010.

According to the company, the Corumba investment brings Rio Tinto's investments up to $11 billion since 2003 to develop its iron ore business.

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