Rio Tinto Plans $3.1B Aussie Iron Ore Expansion

Rio Tinto RTP, the world's third-largest mining company, is planning to spend $3.1 billion on expanding iron ore production facilities in Australia as demand for iron ore from emerging markets continues to climb. News of Rio's expansion plans comes just two days after a $116 billion iron ore joint venture between Rio and BHP Billiton BHP in the Australian Outback was scrapped due to regulatory concerns. Rio said it will boost capacity in Western Australia's Pilbara region to 283 million metric tons in 2013. BHP is also looking at expansion plans after the collapse of the joint venture. The companies are seeking to meet demand from steel mills in China, where usage of the alloy is forecast by Rio to double by 2020 from 2008 levels, according to Bloomberg News.