From MiningNews.net re Calibre's DES project Award:
Rio pursues Koodaideri development Wednesday, 24 July 2013
Kristie Batten
WESTERN Australia’s Environmental Protection Authority is seeking public comments after Rio Tinto lodged a proposal to develop the Koodaideri deposits in the Pilbara.
Rio subsidiary Hamersley Iron is proposing to build a greenfields mine and associated infrastructure at the site, 100km from Newman and 35km north of the Yandicoogina mine.
The proposal outlines an open pit mine that would produce up to 70 million tonnes per annum over a 30-year mine life.
Koodaideri will initially produce 35Mtpa.
Karijini National Park is just 25km to the west of the proposed mine and plant area but is adjacent to parts of the proposed 167km railway connecting to Rio’s main network.
The comment period is open until September 2.
Rio said it proposed to begin construction in the September quarter of next year with first production in the second half of 2016.
Up to 2000 workers will be required during the construction phase and around 700 for initial operations.
Last week Calibre Group was awarded a $A30 million contract for a definitive engineering study at Koodaideri.
Despite this, there has been speculation Rio may defer or reduce the scope of the huge development given current market conditions.
Earlier this month, JP Morgan suggested the miner would slow its expansion to 360Mtpa, reaching the milestone in 2019 – three years later than expected.
JP flagged the delay of Koodaideri, which it estimated would boost free cash flow by $US1.9 billion ($A2 billion) this financial year.
Analysts expect Rio will complete the 19Mtpa Silvergrass expansion first.
Rio shares jumped 2% in early trade to $A57.90.
CGH Price at posting:
36.0¢ Sentiment: None Disclosure: Not Held
