State govt green lights Rio's Western Turner expansion

The state government has given its tick of approval for Rio Tinto to develop more iron ore deposits at the mining giant’s Western Turner Syncline operation near Tom Price.

State Development Minister Bill Marmion said Rio planned to spend $18 million on the project, with the scope of work covering development of the deposits and construction of haul roads, site access roads, storage areas and water treatment facilities.

“The Western Turner Syncline production capacity is currently 25 million to 30 million tonnes per year,” Mr Marmion said.

“The approval will ensure Rio can maintain this level of production by bringing new sources of ore online.

“The development proposal was approved under a state agreement and clearly shows these agreements ensure WA remains an attractive place for investment and continued development.”

It follows news in August that Rio had committed to spending $338 million developing its Silvergrass iron ore mine in the Pilbara, which received state government approval earlier this month.

Rio shares were 0.8 per cent lower to $51.41 each at 1pm.