Rio Tinto has announced plans to extend its Marandoo iron ore mine, with the international miner committing $US933 million to stretch its life by 16 years.
Rio said in a statement today it would extend the Marandoo mine life until 2030 at its current rate of 15 million tonnes a year by developing adjacent iron ore reserves below the water table.
Rio Tinto Iron Ore chief executive Sam Walsh said the extension of Marandoo would play an important role in sustaining Rio's Pilbara operations' annual capacity.
"With a high iron and low phosphorus content, Marandoo's Marra Mamba ore assists in maintaining the Pilbara Blend grade requirements and maximising the value of our integrated Pilbara operations," Mr Walsh said.
"It also underlines our ability to develop projects to sustain tonnage at the same time as
expanding our overall production capability."
The project still requires a number of government and regulatory approvals, all of which have been received, or are progressing well, Rio said.
Meanwhile, Rio has also given the go-ahead to invest $US163 million to increase production capacity at its joint venture with Iron Ore Company of Canada.
The investment is the second stage of a three stage expansion announced in May 2010.
