Western Australia\u2019s environmental authority has approved Rio Tinto\u2019s plan to build a massive new iron ore mine in the Pilbara.<\/p>\n
The Koodaideri mine would be located 110 km north-west of Newman and is expected to have a 30 year life span.<\/p>\n
According to documents filed by Rio subsidiary Mount Bruce Mining, the mine is expected to produce 35 million tonnes of ore a year, before a ramp up by 2030 which will see that figure increase to 70 million tonnes a year.<\/p>\n
The mine would require a new 167 km railway to be built in order to connect the mine to Rio\u2019s Dampier-Tom Price line.<\/p>\n
New roads, power sources, water infrastructure and FIFO village facilities would also be need to be constructed.<\/p>\n
Up to 2,000 people would be needed to build the mine while 700 workers would be required for the mine’s operation.<\/p>\n
The estimated price tag for the mine and rail development is $US3.2 billion ($3.5 billion).<\/p>\n
The Environment Protection Authority said the mine could go ahead subject to 14 conditions including measures to protect local bat and quoll colonies.<\/p>\n
It also wants to ensure that the mine does not increase the spread of asbestos in the environment.<\/p>\n
The proposal is open to a two-week public appeals period before being sent to WA\u2019s Minister for Environment Albert Jacob for final approval.<\/p>\n
The EPA\u2019s approval comes one the same day as the price for iron ore hit its lowest point in five years.<\/p>\n
Dropping 4 per cent overnight, the commodity is trading at $US72.10 a tonne.<\/p>\n
However, with a production cost of just over $US20 a tonne, Rio is shielded from price drops, and plans to expand its exports out of the Pilbara from the current 270 million tonnes a year to 360 million tonnes a year.<\/p>\n
A final investment decision for Koodaideri is not expected until at least 2016, as the company focuses on upping production through less expensive brownfield expansions.<\/p>\n","protected":false},"excerpt":{"rendered":"