Rio Tinto to expand farming operation

Rio Tinto plans to use surplus water from its Pilbara iron ore mines to cultivate crops on its pastoral leases in the Pilbara, to use as stock feed for its little-known cattle farming activities.

The mining giant manages six pastoral stations in the region, running about 26,000 head of cattle, with a view to using the land in future for mining or infrastructure such as rail.

In the meantime, it must run the stations as operational pastoral properties under the state's Land Administration Act, so it sells 80 per cent of the cattle on the domestic market and exports the remainder.

Rio Tinto said its plan to use surplus water from its soon-to-be-expanded Marandoo mine to irrigate crops had been endorsed by the state Environmental Protection Authority.

The scheme is expected to produce enough hay to feed Rio Tinto's stock all year round, with substantial excess potentially sold to other pastoralists in the Pilbara.

A small portion of the irrigated area will be used for cultivating native seeds to supply the company's mine rehabilitation program across the region.

General manager of climate change, water and environment Allan Jackson said the anticipated start date for the project was mid-2012.

Mr Jackson said the scheme would reduce the discharge of surplus mine water into surrounding ecosystems.

"And by establishing irrigated agriculture in the Pilbara region, we can potentially increase localised stocking rates, reducing total area grazed and effectively rest large areas that may be under pressure from grazing," he said in a statement.