On September 15, 2011, Rio Tinto plc (ADR) (NYSE:RIO) announced its decision of investing further $833 million on power & fuel projects in its iron ore operations in Western Australia’s remote Pilbara region to expand production of the steelmaking commodity, the mining giant.
The Company has a plan of investing roughly $15 billion in the iron ore-rich region to lift its output capacity there to 333 million metric tons a year and today’s announcement adds to this string of planned investments. It said that by the end of 2013 & June 2015, it aims to boost its production capacity in the Pilbara from 225 million tons to 283 million tons & 333 million tons respectively. Last week, the company announced about its plan of investing $310 million for its mining operations in the Pilbara to build a new coastal water supply system. The mining company’s share of the investment will be $706 million.
Sam Walsh, chief executive of Rio’s iron ore and Australian operations said that these investments will help in expanding the iron production by 50% in the five years to 2015.
The Company plans to expand the power and gas network to deliver an additional 120 megawatts & its fuel storage capacity with additional storage at the Parker Point port terminal at Dampier, and two new inland distribution hubs.
Shares of the company engaged in minerals exploration, development, production and processing went down by 0.56% to $56.42 in yesterday’s trading session. The stock went down by 0.74% or 42 cents to $56.42 in it’s after hour trading session. Over the past 52 week, the stock has been trading in the range of $52.36 – $76.67. Currently the market cap of the stock stands at $108.33 billion with P/E of 6.94.
The Company’s product groups include aluminium, copper, diamonds and minerals, energy, and iron ore. Its major products are aluminium, copper, diamonds, coal, iron ore, uranium, molybdenum, gold, borates, titanium dioxide, salt and talc.
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