Market awaits Rio Tinto’s decision on Silver Grass Mine

CANBERRA (Scrap Monster): An analyst at the German based Deutsche bank, Paul Young commented that even after the harsh accusation by the iron ore miner Glencore, and the Premier of Western Australia, there is still a chance of Rio Tinto to  approve the  construction at its brand new, Silvergrass mine, which is located at Pilbara, which if start production, would add another 330 million tonnes of iron in the global market, by the year 2015.

In the meeting held by Rio Tinto in Sidney, the company stated that, it decision regarding investing on its mine at Pilbara, will be announced on Friday morning, in a briefing for the investors in the Harbour City.

According to some of the analysts, Rio Tinto has been holding down the capital expenditure, and also as the price of iron ore has declined below 69 dollars per tonne, will compel the miner to postpone its plan to invest in the new mining project.

But even so Young ids pretty confident that the company would definitely say yes to the investment in its iron ore mine in the Pilbara.