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September 6, 2016

Western Australia approves Rio Tinto’s Silvergrass mine expansion

Western Australia's state government has approved the expansion of Rio Tinto’s Silvergrass iron ore mine near Tom Price in the Pilbara region.

Western Australia's state government has approved the expansion of Rio Tinto ’s Silvergrass iron ore mine near Tom Price in the Pilbara region.

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The approval will allow construction to begin at the mine with immediate effect, with an expected capital expenditure of A$441m ($336m).

Western Australia State Development Minister Bill Marmion said: "This project will create about 500 jobs during construction and an additional 25 operational positions once the expanded mine is fully operational.

"Expanding production from Silvergrass will allow Rio Tinto to sustain the quality of their Pilbara blend product and maintain current production levels.

"The expansion provides a significant boost to the Western Australian resources sector."

"The expansion provides a significant boost to the Western Australian resources sector and shows our state continues to be an attractive place for large-scale investment."

The proposal to expand Silvergrass mine was approved under the existing agreement between Rio Tinto and the state government. 

Expansion of the mine is expected to add ten million tonnes of capacity.

The investment will be used to replace road haulage with a better conveyor system that links the Silvergrass operations to Rio Tinto ’s existing processing plant at Nammuldi and would lower mine operating costs.

Silvergrass is a satellite deposit adjacent to Rio Tinto ’s Nammuldi mine. It is part of the Greater Nammuldi precinct, located 70km north-west of Tom Price.

The low-phosphorus Marra Mamba ore from the mine is treated at the Greater Nammuldi processing plant.

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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