Mining giant Rio Tinto is set to invest up to $338 million to complete the development of its iron ore operations in Western Australia.
The company has announced that the investment will complete the brownfield expansion of its Silvergrass mine in its Pilbara operations, lowering operating costs and adding an additional 10 million tonnes of capacity.
“The investment will lower mine operating costs by replacing road haulage with a more efficient conveyor system that links the Silvergrass operations to our existing processing plant at Nammuldi” said the company in a statement.
Rio Tinto chief executive J-S Jacques said “We are committed to disciplined capital allocation and the approval of the final phase of the Silvergrass development, which is one of the most value-accretive projects across the mining industry, delivers high-quality, low-cost growth that will underpin future returns to shareholders.
“The additional low-phosphorus tonnes that Silvergrass delivers will sustain the long-term viability of our Pilbara blend, ensuring continued premium pricing, whilst also lowering our operating costs through infrastructure improvements.”
This final stage of the Silvergrass development is subject to obtaining necessary approvals from the West Australian Government.
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