Rio Tinto Ltd has awarded a AUD 160 million plus construction contract to the NRW Holdings Ltd/Eastern Guruma joint venture for iron ore mine expansions in Western Australia.

The one year contract is for the mining giant's expansion of its Brockman 4 mine from current annual capacity of 22 million tonnes to 40 million tonnes and its Western Turner Syncline mine from 6 million tonnes to 15 million tonnes.

Rio Tinto said the expansions were a key component in its drive to boost its iron ore production capacity in the Pilbara region by more than 50% to 333 million tonnes per annum in 2015.

This is the second significant contract awarded to the joint venture between NRW and Eastern Guruma, the traditional owners of the region, following a $200 million contract awarded in 2009 to construct and operate the Western Turner Syncline mine.

Rio Tinto chief executive of iron ore and Australia Sam Walsh said that indigenous involvement in the company's projects was a high priority.

(Sourced from AAP)