Rio Tinto Plans $2.5bn Brazil Mine Expansion

UK based mining company Rio Tinto is planning to invest $2.5bn in a major expansion of its Corumba iron ore mine in Brazil. The work will boost mine capacity to 12.8m tons from 2m tons, Rio Tinto says, with new production expected to start in Q4 2010. The Corumba investment brings to nearly $11bn the total capex Rio Tinto has committed since 2003 to develop its iron ore business, the company states. Rio Tinto will also undertake a feasibility study, to be completed by mid 2009, for a phase II expansion that would take capacity to 23.2m tons per year, the company adds. The expansion of Corumba is designed to capitalize on increased demand for iron ore in South America and the Middle East.