Rio Tinto invests in Pilbara water project
- Publishing Date
- 09 Sep 2011 4:03pm GMT
- Author
- Mining, People and the Environment
Rio Tinto has reached an agreement with the Western Australian government to relinquish its priority entitlements to local water supplies.
Instead the company will invest US$310 million in a coastal water supply project to secure water resources for the expansion of annual production at its iron-ore operations.
The project will involve the construction of a new borefield and pipeline system with an annual capacity of 10 gigalitres.
In return for the company giving up its water entitlement the government has agreed to amendments to secondary processing obligations.
Crucially the project will free up water supplies for towns in the Pilbara, which have been suffering from a regional supply shortfall.
Last year the government pledged to build a desalination plant on Burrup Peninsula that would produce six billion litres of water a year.
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