Expansion Projects

Rio Tinto Iron Ore Expansion Projects manages the portfolio of major expansion projects and studies in the Pilbara region of Western Australia. Expansion Projects' role is to take a project from conceptual level, through pre-feasibility and feasibility phases and, upon approval, take the project into construction and commissioning.

The Expansion Projects team operates closely with Rio Tinto Iron Ore's Pilbara operations, but is managed independently in order to minimise the impact on operations during project study and implementation phases of expansion.

Since 2003, Rio Tinto Iron Ore's growth strategy in the Pilbara has seen approximately US$7 billion committed to port, rail, power and mine assets to increase capacity and capitalise on strong international demand.

Current activities managed by Expansion Projects include:

* All figures have been reported in US dollars to align with Rio Tinto group-wide reporting practice.

A feasibility study into expanding Pilbara capacity to 320 million tonnes annually by 2012 is well advanced and a decision will be made in early 2009. Cape Lambert has been identified as the preferred site for further port expansion. In late November 2007 Rio Tinto outlined an aggressive expansion programme designed to capitalise on the Iron Ore group's global spread of assets and markets. This included a conceptual framework towards establishing a Pilbara production capacity of 420 million tonnes annually and an expansion at Simandou in Guinea of at least 170 million tonnes annually.

Expansion Projects has an ongoing alliance with a number of engineering, procurement, construction and management consultants (EPCMs). These EPCMs, along with other large contracting organisations, design, build and deliver the complex projects required by RTIO's Pilbara operations.