Mining giant Rio Tinto has announced another big spend at its Pilbara iron ore operations, as it continues its drive to increase output of the booming commodity.
With iron ore prices strong on the back of Chinese demand, Rio Tinto said it would spend $US1.2 billion to increase production from 283 million tonnes per annum.
Rio Tinto is the world's second largest iron ore producer and currently produces about 220 million tonnes per annum in the Pilbara.
The new investment will be used to significantly expand the Brockman 4 and Western Turner Syncline mines, Rio told the Australian Securities Exchange.
Since July this year, Rio has announced $US7.2 billion in new investments in the Pilbara, as part of its broader plan to boost capacity to 333 million tonnes per annum.
The company's iron ore chief, Sam Walsh, said the expanded mines would provide the bulk of the additional throughput for the expanded rail and port works around Cape Lambert.
"These decisions highlight our strategy of bringing on new capacity in line with infrastructure developments," Mr Walsh said.
"It also highlights the wealth of large, long-life, well situated and wholly owned deposits we can bring forward in conjunction with our expansions of port and rail capacity," he said.
As part of the new plans, Brockman 4 will have its capacity output expanded to 40 million tonnes per annum (mtpa), up from 22 mtpa, while Western Turner Syncline will be boosted from 6.0 mtpa to 15 mtpa.
Brockman 4 only opened in September and was still yet to reach its first phase capacity, but would become Rio's second largest mine within three years, the company said.
Rio also expects to eventually expand its Nammuldi mine, with an investment decision expected next year.