Rio Tinto OKs $1.03 Bln Investment In Escondida Water Supply Project

(RTTNews) - Mining giant Rio Tinto plc (RIO, RIO.L, RTNTF, RTPPF) said it has approved $1.03 billion (Rio Tinto share) for the construction of a new 2,500 litre per second seawater desalination facility to assure continued water supply and sustain operations at the Escondida mine in Chile. Rio Tinto owns a 30 percent stake in Escondida.

The project would provide a sustainable supply of water for the new OGP1 copper concentrator approved in February 2012, whilst reducing Escondida's reliance on the region's aquifers. The project would comprise two pipelines, four high pressure pump stations, a reservoir at the mine site and high voltage infrastructure to support the system.

The construction would begin in July 2013, with commissioning slated in 2017. Rio Tinto's investment would be funded via the company's share of Escondida's cash flows.