Expanded ports will keep pace with output
New investment in expansion of the Cape Lambert iron ore port in Western Australia means Rio Tinto Iron Ore will have matched its mine, rail and port capacity to ensure capability to export a massive 220 million tonnes per annum.
Combined, the capacity of the Dampier and Cape Lambert ports ensure shipments can continue to keep pace with rapidly expanding mining operations.
Annual capacity at Cape Lambert will be increased to 80 million tonnes from 55 million tonnes with an investment of US$860 million (Rio Tinto share US$456 million). Completion of the expansion is scheduled for the end of 2008 with progressive ramp up in the first half of 2009.
The rapidly expanding character of seaborne iron ore freight highlights the timeliness of the expansions of port operations at Dampier and at Cape Lambert (53 per cent owned through Robe River Iron Associates).
Improved infrastructure Cape Lambert's expansion will allow concurrent berthing of four very large bulk carriers, replacement of the original shiploader, an additional reclaimer in the stockyard and improved yard and rail infrastructure. The wharf will be extended 256 metres to accommodate the new configuration.
One of the berths will have the capability to load the new breed of oversized carriers exemplified by the visit of the Berge Stahl to Dampier in November.
The expansion follows the completion of the cyclone proof tug harbour at Cape Lambert in 2006 - the significance of which was underlined by the succession of tropical cyclones that have battered the coast.
The expansion of Cape Lambert is the final infrastructure work required to achieve a sustainable 220 million tonnes annual port capacity, allowing Rio Tinto to consolidate its position in the iron ore market. They help the Group satisfy the massive hunger for iron ore from the growing China market, as well as traditional consumers such as Korea and Japan.
Since 2003, Rio Tinto has completed the first stage of an upgrade to its Parker Point port in Dampier which increased annual capacity from 74 to 116 million tonnes. Work is continuing on the second stage at Parker Point, which by late 2007 will increase capacity at Dampier to 140 million tonnes a year.
A further US$130 million will be invested in sustaining and environmental capital works at the Cape Lambert port to support the increased levels of production.
The Cape Lambert upgrade brings Rio Tinto's expenditure in the Pilbara on infrastructure and facilities development close to US$5 billion since 2003. These projects continue to be completed on time and within budget.