02 Aug Rio Tinto to invest $338 million
Rio Tinto will invest an incremental $338 million to complete the development of the Silvergrass mine in its Pilbara iron ore operations in Western Australia.
The brownfield expansion of the high-grade Silvergrass mine is hoped to deliver attractive returns and also lower unit costs.
The investment will be used to lower mine operating costs by replacing road haulage with a more efficient conveyor system that links the Silvergrass operations to Rio’s existing processing plant at Nammuldi.
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.