Rio Tinto said on Tuesday it plans to expand bauxite production at its Weipa mine in northeast Australia to 35 million tonnes a year from 18.2 million tonnes produced last year, subject to the completion of a $30 million feasibility study.
The world's third largest miner, currently under a $170 billion plus all-scrip offer from the world's top miner BHP Billiton, said the expansion is likely to cost about $1 billion, including the development of a new port and stockpile facilities plus other infrastructure.
Rio Tinto has rejected BHP's 3.4-for-1 offer as failing to recognize the group's long-term growth potential, with production output expected to increase across the group's suite of products by 8.6 percent a year for the next seven years to 2015.
The company said the Weipa expansion will give the group increased capacity to supply bauxite to customers globally and to Rio Tinto Alcan-owned refineries.
"The proposed mine development to the south of the current operations will allow Rio Tinto Alcan to maximize further value from its world class Weipa bauxite deposits," said Steve Hodgson, president and chief executive of Rio Tinto Alcan Bauxite and Alumina.
He said the expansion supports a decision in 2007 to invest $1.8 billion to expand the Yarwun alumina refinery in Gladstone in the northeast Australian state of Queensland and will underpin Rio Tinto Alcan's plans to be a major participant in the global third party bauxite sales market.
0 comments:
Post a Comment