Rio Tinto (RIO -1.8%) can make a strong case for spending a further $4.2B on the expansion of...

|About: Rio Tinto plc (RIO)|By:, SA News Editor

Rio Tinto (RIO -1.8%) can make a strong case for spending a further $4.2B on the expansion of its mining capacity in Western Australia's Pilbara region, which accounts for ~70% of its earnings. Credit Suisse calculates RIO can achieve a 17% IRR at an iron ore price of $90/ton and can reach its target of producing 353M tons from Pilbara by 2015 even with prices as low as $65/ton.