Rio Tinto Expanding Sixfold at Corumbá


Rio Tinto is investing $2.15 billion to increase capacity at its Corumbá iron ore operations in Mato Grosso do Sul state, Brazil, from 2 million mt/y to 12.8 million mt/y. Two new ports will be constructed to handle the increased tonnage, together with improved infrastructure networks to link a 2,500-km-long, multi-national supply line. The expansion is planned to come into production in the fourth quarter of 2010. Rio Tinto will invest a further $42 million in a feasibility study of a possible Phase II expansion that would lift capacity at Corumbá to 23.2 million mt/y.

Corumbá is located in western Brazil near the three-way meeting of the borders of Brazil, Paraguay and Bolivia. The mine produces high-quality blastfurnace lump and direct reduction iron ore products for customers in South America, Europe and the Middle East. Mining is relatively simple. No blasting is required, and the overburden is extremely shallow.

The expanded Corumbá operation will continue to be multi-jurisdictional. A new northern river port will be established at Albuquerque, Brazil, from which point barging operations will operate through the international zone of the River Paraguay. A new southern river port will be constructed at Agraciada, Uruguay. Tran-shipping operations to load Panamax and Capesize vessels will take place in the international waters of the Rio de La Plata, 350 km downstream from Agraciada.

Sandwell Canada Inc., a company with substantial ports and water logistics expertise and experience in delivering projects in South America, and Brazilian contractor SNC Minerconsult will participate in the project. During construction, the project will employ close to 2,500 people in Corumbá and La Agraciada, Uruguay. Upon completion, the permanent workforce across mine, ports and river operations will at least double to more than 1,600.

As featured in Womp 08 Vol 7 - www.womp-int.com