AusGroup’s subsidiary AGC Industries has received a contract to build a low-grade pilot plant at Rio Tinto’s Brockman 4 iron ore mine in the Pilbara region, Western Australia.

Under the contract, AGC will provide services such as design, installation, construction and commissioning of the low-grade iron ore pilot plant.

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With the construction of the plant, Rio Tinto will be able to tap into large quantities of lower grade ores of higher impurity.

The plant will also allow Rio Tinto to conduct large-scale testing for future lower grade feed types, while enhancing the ore output from the Brockman site.

The plant is scheduled to commence production in February 2012.

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