Rio Tinto Ltd’s
(ASX:RIO) Alcan arm will invest US$140 million into a casting facility to produce billets at its aluminum smelter in Iceland.
The funding will boost the global miner’s investment into the smelter to US$487 million, with production expected to start in 2012.
The miner says expanding production capacity and investing in a new casting facility is part of its strategy to develop its top-tier assets.
Adding, that the facility has a clean energy source of hydro power, low CO2 emissions and strong performance in health, safety and the environment.
Rio says its market position in Northern Europe will be reinforced with this latest investment and demonstrates its long-term commitment to being a stable supplier of billet.
Rio Tinto posted a profit of $7.37 billion in the first six months of 2010.
