Rio Tinto has started production at its $US901 million ($A999.3 million) Mesa A/Warramboo iron ore mine in the Pilbara, three years after a rare microscopic spider threatened to halt the development.
Rio Tinto has started production at its $US901 million ($A999.3 million) Mesa A/Warramboo iron ore mine in the Pilbara, three years after a rare microscopic spider threatened to halt the development.
Rio Tinto has started production at its $US901 million ($A999.3 million) Mesa A/Warramboo iron ore mine in the Pilbara, three years after a rare microscopic spider threatened to halt the development.
Rio said in a statement today that the first train carrying iron ore left the mine on Friday.
The open-cut mine, about 50km west of Pannawonica, will have an initial production of 20 million tonnes each year, before increasing to 25mt by 2011.
"This is a great day for Rio Tinto, and for the Pilbara," Rio Tinto chief executive iron ore and Australia Sam Walsh said.
"Mining in the Robe Valley has been an integral part of the north-west economy for decades, and this new mine will ensure it continues to contribute to the benefit of the wider community.
"I am especially pleased to note that construction has been completed on time and inside budget, underlining Rio Tinto's excellent record of project management.
"This outstanding effort has been echoed by the commencement of pre-strip work at the Western Turner Syncline development (near Tom Price) the same week, making it a dual milestone for Rio Tinto in the Pilbara."
The mine will employ about 220 people, sourced largely from the existing workforce at Mesa J, and the project is expected to operate for 11 years.
In 2007, the Environmental Protection Authority recommended against the development, saying there was potential for the loss of troglobitic fauna, insects that lived inside the caves.
The fauna also included a rare microscopic blind spider that was unique to the project area.
A month later, the EPA reversed its recommendation after being provided with further information during the appeals process.
Meantime, Fitch Ratings has upgraded Rio Tinto's long-term issuer default ratings and senior unsecured ratings from BBB+ to