No fears of China tightening and slowing demand from Rio Tinto, the giant iron ore miner:
The world’s third-largest miner and second-biggest iron ore exporter said Friday that new drilling and a reevaluation of deposits in Western Australia state’s remote Pilbara region had revealed an additional two billion tons of iron ore reserves.
The company is expanding its iron ore division as China shows a growing demand for raw materials to make steel.
The new plans come just a month after Rio Tinto and rival BHP Billiton scrapped plans to form the world’s biggest iron ore joint venture after running into regulatory and political opposition to the deal.
Capex will be expanded by $11 billion.