To meet the ever-increasing demand in the Chinese market, Rio Tinto, the world's second-largest iron ore exporter, has allocated more than $4.2 billion to expand its operations in Australia and Guinea. The company revealed in a document today that it will spend $3.7 billion to expand its mining operations in Western Australia, build new port berths, and extend the rail line that carries ore. To achieve the company's plan to increase iron ore production to 353 million tons by 2015. At the same time, Rio Tinto will spend approximately $501 million to build rail and port facilities for its subsidiary, the Simandou development in Guinea. Rio Tinto said that due to the ongoing urbanization process, the company predicts that China's steel production will increase by 43% to 1 billion tons by 2030. As a result, the company is slowing its spending on other product sectors and is working hard to increase its iron ore production capacity. “We are investing directly in projects that generate maximum returns for our shareholders and will be able to adapt to any possible macroeconomic situation,†said CEO Tom Albanese in the paper.
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