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can avoid taxes Rio continue to expand
GLOBAL mining giant Rio Tinto has been partly reassured by changes to the government’s controversial mining tax. It would now push ahead with investments in the country, chief executive Tom Albanese said yesterday.
“It’s not perfect, but I would say it’s something that allows Rio Tinto
to make the investments that we want to make in Australia,” he told the
Sky Business Channel.
“That’s all we can expect, and that’s all we’re concerned with.
“We want to have the ability to continue to invest in Australia.”
Rio Tinto said last week it would invest a further $US790 million
($860m) to expand iron ore capacity at its Pilbara operations in Western
Australia.
The Anglo-Australian miner has approved a total of $US1 billion in
recent weeks to fund the last phase of a multi-tier expansion project
which centres on boosting Rio Tinto’s Cape Lambert port handling
capacity from 80 million tonnes to 180 million tonnes by 2016.
Rio Tinto posted a first-half net profit of $US5.85bn for the six months
to June 30, putting it on track for a record annual result.
Releasing the result, the company outlined plans for up to $US13bn in capital spending over 18 months.
“A large portion of that’s going to be driven by what we see as a
strong, long-term positive trend for Asian demand, Chinese demand of
products that we produce,” Mr Albanese said.
He said the group expected growth across its businesses over coming years, beyond iron ore.
“If we look at the ability to ramp up the Pilbara, if we look at our
other iron ore operations, whether they’re in Canada, our future
operations we’d expect to see in Simandou, possibly in India, I think we
have a very strong profile of growth, not just the next five years, but
well beyond that in iron ore,” he said.
Source: The Australian
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