Rio cost pressures increase after $813m Pilbara boost

Rio said $US520m would be spent on upgradingmarble stone milling plant manufacturer the company's power and gas network and $US313m on fuel storage capacity near its Dampier port and two inland fuel distribution hubs.

"These projects provide certainty in meeting our power and fuel supply requirements, both now and into the future," Rio iron ore chief Sam Walsh said. The spend on the infrastructure appears to be more than was flagged by Rio in November last year and will probably be the forerunner to Australian dollar-led increases to Rio's $US16.2bn cost estimate to expand its Pilbara ports, railways and mines to a capacity of 333 million tonnes of iron ore a year. In November, Rio estimated it would spend $US800m on power, town and other...