Rio Tinto reopens Pilbara expansion study after mining tax deal

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Rio Tinto said today it has recommenced studies on its multibillion dollar Pilbara iron ore expansion after the recent mining tax deal. "We're in the process of re-opening studies in relation to our Pilbara expansions," Rio iron ore chief executive Sam Walsh told reporters on the sidelines of a function.

"With the certainty that we've now got with the Minerals Resource Rent Tax, we are now reconfiguring those numbers and the impact back into our projects." In May, Rio Tinto put its Australian projects on hold due to uncertainty relating to the proposed Resource Super Profits Tax. The company wants to increase iron ore production to about 330 million tonnes a year from about 230 million tonnes a year by the middle of the decade. Despite the greater certainty generated by last week's tax compromise, Mr Walsh declined to put a timeframe on when Rio Tinto will approve the expansion, which may cost more than $US10 billion ($12bn).