Rio Tinto Ltd
(ASX:RIO) will invest $338 million to complete the development of the Silvergrass iron ore mine in the Pilbara region of Western Australia (WA).
The mining company expects an internal rate of return of over 100% for this expansion, and a payback of less than 3 years.
Rio Tinto says the Silvergrass investment will add 10 million tonnes of capacity.
However, the final stage of the Silvergrass development is subject to the company receiving the necessary approvals from the WA government.
Rio Tinto reported a net loss of $2.35 billion at 31 December 2015.
