Join our community of smart investors

Rio Tinto to boost iron ore output

TIP UPDATE: Recovery in Rio Tinto's finances enables big increase in capital expenditure
November 29, 2010

Mining leviathan Rio Tinto is to boost annual capital expenditure by 175 per cent next year. The lion's share of the increase will be utilised to expand iron ore production by 50 per cent at the company's interests in the Pilbara region of Western Australia, where recent estimates have pushed up the mineral resource base by 2bn tonnes.

IC TIP: Buy at 4119p

The increase in capacity is to be achieved over a five-year period, and the company confirmed that next year's annual capital expenditure of around $11bn (£7.01bn) will be maintained "at a comparable level over the medium term".

What we said: Buy

When: 5/11/10

Price: 4,164p

Tip performance to date: -1.1%