Reuters reported that Rio Tinto CEO Mr Tom Albanese said that an aggressive stance by unions, high labor costs and a potential downturn in world prices threaten plans for vast expansion of its key Australian iron ore operations.

Speaking to the Australian Broadcasting Corporation in an interview broadcast on Sunday, Mr Albanese said he would like to see Rio Tinto's giant operations in the Pilbara region of Western Australia reach 450 million tonnes of ore annually, double current production of 225 million tonnes.

The Rio Tinto chief said that militant type relationships with unions could reduce performance, with productivity already compounded by the ongoing need to attract people to more remote areas.

Mr Albanese said there are plans to expand production in the Pilbara and he would like to see it expand even beyond 450 million tonnes, but all the other pieces have to be in place.

(Sourced from Reuters)