The government of the state of Western Australia has announced that it has approved proposals by Australia-based miner Rio Tinto to expand its iron ore operations and build a major new power station in the Pilbara region, clearing the way for a A$3 billion investment.
The investment in the Nammuldi iron ore mine infrastructure will allow mine production below water table and increase the mine's production limit from eight to 23 million mt a year. Production of ore from below the water table is expected to begin in the third quarter of 2014.
"At Cape Lambert, Rio Tinto will build a state-of-the-art, fuel efficient 130MW power station to feed into Rio Tinto's integrated power network. This additional power source will help meet the port's power needs as annual capacity grows from 85 million mt to 235 million mt by 2015," Western Australia's premier, Colin Barnett, said in a statement.
Rio Tinto's investment is expected to create almost 1,500 construction jobs and secure ongoing employment for more than 700 people.