Rio Tinto to double thermal coal by 2015
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25/07/2008
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Age (Australia)
Rio Tinto says it plans to double Australian thermal coal output by 2015 as it ramps up production at its Hunter Valley operations and removes infrastructure constraints.
The mining giant, which is fending off a takeover proposal by BHP Billiton, also plans to aggressively increase production at its Rossing uranium mine in Namibia.
Rio Tinto wants to increase coal production to meet global demand, particularly from China, which is shifting to become a large net importer rather than exporter of thermal coal.
"We think we can double production from our Australian thermal coal operations by 2015," Rio Tinto Energy and Minerals chief executive Preston Chiaro told reporters in Sydney.
The Anglo-Australian miner also forecast hard coking coal production to double by 2015.
It wants uranium production at Rossing to reach 12 million pounds per annum by 2012 from just under nine million pounds at the end of 2008.
Mr Chiaro said the company would pursue uranium firm acquisition opportunities, particularly in Kazakhstan.
He said Rio Tinto hadn't identified any substantial acquisition opportunities around uranium in Australia to add to its 68.4 per cent interest in Energy Resources of Australia Ltd (ERA).
However, Mr Chiaro said the group could pursue a "a few small opportunities that would be incremental additions to ERA".
Turning to potash, which is a potassium carbonate used in fertilising, Mr Chiaro said Rio Tinto said it planned to have its Potasio Rio Colorado resource in South America in production by 2012.
Further potash growth potential existed at the Regina operation in Canada where test drilling is underway.
Rio Tinto also flagged a 60 per cent increase in titanium iron ore production by 2015.