Rio Tinto wants to expand its Pilbara Iron Ore operation. Rio plans to spend $30.9 million to complete the project feasibility study for the Koodaideri iron ore deposit.
Rio Tinto expects Koodaideri to replace the existing production as the deposits in its other Pilbara Mines are depleted.
The Koodaideri Project has an estimated capital cost of $3 billion which includes the mine, a 40mtpa dry crushing and screening plant, a 170km rail link to the company’s main line and associated infrastructure.
Rio Tinto’s Iron Ore Chief Executive Chris Salisbury spoke about the project.
“The Koodaideri development will require an expected 1600 construction jobs and a further 600 operational staff if approved,” Salisbury said.
“We remain firmly focused on our value over volume strategy and maximising returns through enhanced productivity. We are examining the Koodaideri project as an option to help us maintain our low-cost competitive position and assist in maintaining the Pilbara Blend product quality.”
The main goal of the feasibility study is obtaining the necessary consent and permits, increasing the understanding of the ore body and technical elements, and establishing the necessary data to validate the project.
A final decision is expected to be made following the completion of the feasibility study and a subsequent review by the Rio Tinto board.