By Gavin Lower
MELBOURNE--Rio Tinto Ltd. (RIO.AU) has pulled out of an
accommodation expansion project for its workers in Australia's
remote iron ore-rich Pilbara region, the project's developer said
Friday.
Diploma Group Ltd. (DGX.AU) said in a statement to the
Australian Securities Exchange Rio Tinto had told it the Rocklea
Palms Pilbara Accommodation Expansion Project had been deemed
"non-essential" in its current expansion program and had been put
on hold indefinitely.
A spokesman for Rio Tinto told Dow Jones Newswires the decision
to not go ahead with the Rocklea expansion had no effect on its
mining operations or expansion plans.
Rio Tinto is continuing to push ahead with its plans to expand
its iron ore operations in the Pilbara, in Western Australia state,
but, like other mining companies, has sought to reduce costs in the
wake of falling commodity prices.
Diploma said in its statement Rio Tinto had confirmed that the
Wickham Accommodation Expansion Project, which it is working on, is
still "on foot and is an essential part of Rio Tinto's expansion
plans."
Write to Gavin Lower at gavin.lower@wsj.com
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