Rio Tinto’s iron ore mine expansion gets environmental nod

World’s second largest miner Rio Tinto (ASX, LON, NYSE:RIO) is a step closer to begin expanding its West Angelas iron ore mine in the Pilbara, Western Australia, as it has received the state’s environmental watchdog’s approval.

The Environmental Protection Authority (EPA) said Monday it would recommend open-cut mining at the site to be expanded by 4100 hectares to 26,700ha, taking it to within 2km of Karijini National Park.

The expansion will use daily up to about 38,000 tonnes of groundwater and discharge up to about 32,000 tonnes into the nearby Turee Creek East.

The EPA has required Rio to ensure the groundwater level below Karijini is not affected and there is no irreversible damage to vegetation along the creek. It has also asked the company to take measures to protect the area’s endangered ghost bats.

The West Angelas expansion is part of Rio Tinto’s Robe River joint venture with Mitsui and Nippon Steel & Sumitomo Metal, which recently committed to spend $1.55 billion to maintain output from the Robe River operations at 65 million tonnes a year.

Work at West Angelas and Robe Valley will begin later this year, with first ore due in 2021.

The EPA report is open for public appeal for two weeks. After that, Environment Minister Stephen Dawson will decide the final fate of the expansion.

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