Heat Treat Industry News

May 10, 2010

Rio to expand Canadian unit

Rio Tinto plc will resume the expansion of its Iron Ore Company of Canada (IOC) unit with an investment of more than US$400 million.

The London-based company said: “The Board of IOC has approved new investment of US$401 million to increase its annual concentrate capacity by 4Mt to 22Mt by 2012.”

The investment is the first in a three-stage expansion programme for IOC that could increase concentrate annual capacity to 26Mt, Rio Tinto said. The programme was initially approved in 2008, but was later suspended due to the global financial crisis.

IOC chairman and Rio Tinto's iron-ore chief, Sam Walsh, said the decision highlighted the degree of confidence in growing demand for the steel-making material, the attractiveness of investing in Canada, and the quality and potential of IOC’s assets.

“Some uncertainty and potential volatility remain about global economic recovery, but global iron ore and steel markets have rebounded strongly and demand growth looks set to continue. The expansion programme is a significant step towards realising the full potential of our IOC operations,” Mr Walsh said.

Rio Tinto added: “The revised total project cost for the first stage of expansion, including costs spent prior to suspension, is US$497 million, a US$22 million increase on the original estimate.”

Source: Mining Journal

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