JOHANNESBURG (miningweekly.com) – Diversified mining major Rio Tinto is moving ahead with its final-phase plans to develop the Silvergrass mine, in Western Australia, with an incremental $338-million approved to complete the proposed project.
The project, under the umbrella of Rio Tinto’s Pilbara iron-ore operation, remains a critical component of the company’s iron-ore portfolio, lowering overall unit costs and adding ten-million tonnes of capacity.
“The brownfield expansion of the high-grade Silvergrass mine offers attractive returns, with an expected internal rate of return for this investment well in excess of 100% and a payback [period] of less than three years,” Rio Tinto CEO Jean-Sébastien Jacques said in a statement on Tuesday.
The investment, which is much lower than the initially anticipated $1-billion, will see the replacement of road haulage with a primary crusher and more efficient 9 km conveyor system linking Silvergrass to the existing processing plant at the adjacent Nammuldi mine.
“The additional low-phosphorus tonnes that Silvergrass delivers will sustain the long-term viability of our Pilbara blend, ensuring continued premium pricing, while also lowering our operating costs through infrastructure improvements,” Jacques added.
This final stage of the Silvergrass development remains subject to the necessary approvals from the West Australian government.
Edited by: Creamer Media Reporter
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