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November 28, 2019

Rio Tinto to invest $749m in WTS2 mine to improve iron ore operations

Global mining group Rio Tinto is set to invest A$1bn ($749m) in the Western Turner Syncline Phase 2 (WTS2) mine, which is part of the company's Greater Tom Price operations.

Global mining group Rio Tinto is set to invest A$1bn ($749m) in the Western Turner Syncline Phase 2 (WTS2) mine, which is part of the company’s Greater Tom Price operations.

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The move is aimed at maintaining production at the company’s iron ore business in the Pilbara region of Western Australia.

The Greater Tom Price hub includes the Tom Price, Western Turner Syncline Phase 1 and WTS2 satellite hubs.

With the latest investment in the WTS2 mine, the company will be able to mine existing and new deposits.

As part of this, the company will also construct a new crusher as well as a 13km conveyor.

With the new conveyor system in place, greenhouse gas (GHG) emissions from the mine can be reduced by 3.5% when compared to road haulage.

Additionally, the haul truck fleet at the WTS2 mine will be equipped with Autonomous Haulage System (AHS) technology for autonomous haulage beginning 2021.

By the end of the year, the company plans to operate about half of its haul truck fleet autonomously. Plans are under consideration to expand this initiative, going forward.

Upon receiving approvals from the government, Rio Tinto will begin construction in the first quarter of next year. First ore from the crusher is expected in 2021.

The company noted that the project is expected to deliver an internal rate of return (IRR) with a capital intensity of approximately $25/t of production capacity.

Rio Tinto Iron Ore chief executive Chris Salisbury said: “Our iron ore business continues to deliver industry-leading margins as we drive performance from our mines.

“This significant investment in the Greater Tom Price hub is one of a pipeline of high-quality, low-cost options that will underpin production of our flagship Pilbara Blend product well into the future.”

The investment in the WTS2 mine will help sustain the existing employees at the Greater Tom Price production hub.

At the peak of the construction period, the workforce is expected to increase to more than 1,000 people.

The WTS2 mine is located approximately 35km north-west of the Tom Price mine.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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