Rio Tinto Continues Iron Ore Port Expansions


The Robe River Iron Associate partners approved an $860-million
expansion of the Cape Lambert iron ore export port in Western
Australia's Pilbara region. The expansion will boost port capacity
to 80 million mt/y from 55 million. Rio Tinto said its share of the
expansion costs will be $456 million.
Rio Tinto announced a further expansion of its iron ore export capacity in the Pilbara region of Western Australia. Nameplate annual capacity at the Cape Lambert port will be increased from 55 to 80 million mt for an investment of $860 million (Rio Tinto share $456 million). Upon completion of the expansion, scheduled for the fourth quarter of 2008, Rio Tinto said its mine, rail and port capacity in Pilbara will be matched, and capable of exporting 220 million mt/y. The port at Cape Lambert is owned by Robe River Iron Associates and is operated by Pilbara Iron, a subsidiary of Rio Tinto. Robe River Iron Associates is jointly owned by Rio Tinto (53%), Mitsui Iron Ore Development (33%), Nippon Steel Australia (10.5%) and Sumitomo Metal Australia (3.5%). Rio Tinto has completed the first stage of an upgrade, which began in 2003, to its Parker Point port in Dampier which increased annual capacity from 74 to 116 million mt. Work is continuing on the second stage at Parker Point, which by late 2007 will increase capacity at Dampier to 140 million mt/y. A further $130 million will be invested in sustaining and environmental capital works at the Cape Lambert port to support the increased levels of production. The Cape Lambert upgrade brings Rio Tinto’s expenditure in Pilbara on infrastructure projects and facilities development to roughly S$5 billion since 2003.