Rio digs a hole for small China suppliers

Rio Tinto’s Pilbara expansion comes as others are scaling back capex in fear of oversupply. But the move has potential to push lower quality ore out of the market.

With the first ore shipped from its latest $US12 billion expansion of its Pilbara iron ore production base to 290 million tonnes a year Rio Tinto appears increasingly optimistic about the prospects for lifting output to 360 million tonnes a year.

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