Rio Tinto PLC has stated that it has plans in place to triple its capital costs up to $11 billion in the coming year. Rio Tinto has planned to increase its iron ore manufacturing up to fifty percent in a 5 years period.
It should be noted that Rio Tinto is the third largest mining company and the 2nd largest iron ore exporter of the world.
Rio Tinto stated that the latest drilling and a reassessment of dumps in Pilbara region of Australia exposed a supplementary of 2 billion tons of iron ore reserves.
Rio Tinto is growing its iron ore division in the middle of rising demand from China for raw materials for steel production.
The fresh devices come just one month following Rio Tinto and BHP Billiton’s fragmented policy to shape the biggest iron ore joint venture of the world after going into regulatory and political resistance to the contract.
"Due to some re-phasing, the current year's spend is now anticipated to be close to $US4 billion （$A4.08 billion）, with an increase to around $US11 billion （$A11.21 billion） in 2011", a statement released by Rio Tinto said.
According to Tom Albanese, chief executive of Rio Tinto, a doubling of iron ore, copper and aluminum demand in the coming fifteen to twenty years, as determined by industrialization and urbanization in emerging economies, would need a major delivery response.
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